Your 2013 Financial Outlook Can Have a Big Impact on Company Performance
Positioning your company motivationally and financially for the upcoming year is like walking a tight rope. You need balance, coordination and severe concentration. Positioning your company for the future takes good judgment, awareness for the state of the economy, and writing a financial outlook that forges a clean and concise path forward. PrideStaff Financial wants to arm you with the tools you need to walk your financial tight rope successfully!
SWOT Analysis. A SWOT analysis (Strengths, Weaknesses, Opportunities and Threats) is an essential part of any financial outlook plan. It can help you assess the current market outlook and overcome barriers moving forward. When writing a SWOT analysis you need to present alternatives that account for internal and external variables, as well as clearly defined objectives for evaluation. Start by determining internal strengths; anything that can positively affect your identified objectives. Next identify internal weaknesses, such as employee turnover, manufacturing capabilities, or a lack of business brand awareness. Then you determine your external industry opportunities; these will include investors, industry economics, technology, and legislation. Lastly identify external threats within the industry; include adverse conditions that may affect your objectives externally. Knowing how to write a strong SWOT analysis is not only essential for financial outlook planning; it tells your company how you will be moving forward and what part your team plays in its success.
Why a Financial Plan? Your financial outlook plan is an on-going living document. It is there to help your company understand its objectives, projects, and steps for how the business will run. It is also just as important to potential investors, banks or lenders. You need to be able to concisely communicate to them how the business will grow, exit strategies for them during which they can make a profit, and/or the length of time and strategy for repaying a loan. Most importantly, when filling in the numbers, be realistic. Break your figures into segments that provide realistic estimates for sales and revenues.
Presentation is important. Understanding a financial outlook may be scary to those who don’t understand its purpose. Many just see the numbers- the bottom line. As the leader of your company, it’s your job to present the outlook in a way that brings everyone onboard and keeps them motivated toward your objectives. Start by presenting the strengths and opportunities; always start with the positives so your employees feel motivated. Next discuss weaknesses and threats. This may be a stressful, but necessary part of your presentation. Reiterate why identifying these are important and the process by which these were prioritized. Lastly present how the financial outlook will be used to develop objectives, strategies and tactics that will increase opportunities and strengths and minimize weaknesses going forward. Most importantly, allow for input and questions from your group. Make them feel they are an important part of this process.
PrideStaff Financial knows how important it is for your company’s future to present a financial outlook that gathers support from the entire organization. Contact one of our staffing consultants and be on the fast track for positive future growth.