[vc_row type=”in_container” full_screen_row_position=”middle” scene_position=”center” text_color=”dark” text_align=”left” overlay_strength=”0.3″][vc_column column_padding=”no-extra-padding” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ width=”1/1″ tablet_text_alignment=”default” phone_text_alignment=”default”][vc_column_text]The day that financial management became strategic financial management was transformative. The cumulative result of partnering with business owners over eighteen years, refining financial management into a teachable method for Georgetown University graduate students, and using exit planning as the strategic guiding light radically transformed financial management into a strategic driver.
Financial Management is the 4-stage process of planning, budgeting, managing monthly operations, and year end annual reporting. These activities are governed through the annual cycle where the end of this year’s cycle overlaps the beginning of next year’s cycle. The purpose of financial management is to ensure that resources are used to achieve stated business objectives effectively.
Strategic Financial Management uses exit planning as the strategic guiding light to provide business owners with a broader perspective from a buyer’s perspective (market comparables just like purchasing a house), quickly assesses then systematically improves the eight business drivers, provides peers industry benchmarks as comparables, tracks the value of the business at least annually, and uses multi-year profit, cash, asset, and liability forecast to gain visibility across several “what if” scenarios.
The Benefits of Strategic Financial Management are building a business where owners and their employees thrive by being in the top 10% of their industry. This includes your customers promoting you, becoming a great place to work, creating an environment where you enjoy working on your business, and increasing your business value by 71% on average.[/vc_column_text][/vc_column][/vc_row][vc_row type=”in_container” full_screen_row_position=”middle” scene_position=”center” text_color=”dark” text_align=”left” overlay_strength=”0.3″][vc_column column_padding=”no-extra-padding” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ width=”1/1″ tablet_text_alignment=”default” phone_text_alignment=”default”][nectar_btn size=”large” button_style=”regular” button_color_2=”Accent-Color” color_override=”#007581″ icon_family=”none” url=”mailto:team@thehabitsofprofit.com” text=”Contact The Habits of Profitability™ Team” margin_top=”20″][/vc_column][/vc_row]