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// FEATURE // will let you know what your budget is every month for paying off borrowing , it will also let you measure investment against revenue growth to ensure that the investment is working for your business and change strategy if it isn ’ t .
When it comes to raising finance and securing favourable terms too , a detailed understanding of business finances and realistic expectations about growth , profit and loss and expected revenue is incredibly helpful . A lender will feel a lot more confident working with a business that can provide this detail and that can demonstrate high levels of financial planning and literacy .
Conclusion
As we can see then , financial planning is crucial to the success of any SME and is often the difference between those SMEs that flourish , and those that don ’ t .
A financial plan is the basis upon which all other business plans and activities have to be based . Without a financial plan , it ’ s impossible to have a full picture of whether an investment is sound or risky , of whether a new team member can be justified by the budget or of whether current outgoings are absolute necessities or nice-to-haves .
So , SME leaders should be working on financial plans as a matter of course and working with service providers who understand the value of financial planning and can help businesses realise their financial goals . �
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UNLIKE SETTING A BROAD BUSINESS STRATEGY AND THEN SPENDING A YEAR WORKING TOWARDS IT , FINANCIAL PLANNING IS MORE LIKE A CONSTANT PROCESS OF TUNING AND MODIFICATION .
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