Post by account_disabled on Mar 4, 2024 23:01:06 GMT -5
If you have difficulty doing financial planning for your business, know that you are not alone. More than numbers and money, having good planning guarantees good financial management and makes it possible to better deal with the resources and skills in the company. Companies often get lost when doing financial planning, as they don't know where to start. With this in mind, here we have selected the main information you need to carry out financial planning for 2022 and see your business prosper.
Believing that just with data on inputs and outputs of resources you already have enough information to control and make decisions, is among the biggest mistakes in financial management and can even lead to the company's bankruptcy. Those who think like this end up Industry Email List seeing financial management as a waste of time or just bureaucracy. In a way, this happens due to excessive complications in accounting and the Brazilian tax system. However, to see healthy business growth, you need to pay attention to planning and financial management.
First of all, to plan the company's new year, it is important to analyze the financial reports to understand how 2021 was for the company. With up-to-date financial control, it is possible to evaluate costs, revenue, expenses that can be cut in the new year, return on investments, and much more. Therefore, to carry out financial planning for 2022 and set your goals, you need to take into account the available resources to make future forecasts of costs and revenues. This way, you can define the right time for investments and recognize the best opportunities to direct the healthy growth of your business.
Still in this sense, financial planning is the thermometer that measures whether your goal is achievable and prepares the company to deal with possible risks. After all, by minimizing improvisation, you will have a map to follow and gain greater awareness to resist market traps. Even in the case of beginning ventures, it is also possible and necessary to gather information about the market in which you intend to operate. This is because this market research is essential for defining premises and adjusting your financial planning over time, as real information emerges. For example, labor costs.
A very common mistake is to confuse the profitability of the business with its profitability. Imagine a franchise advertisement that promises an incredible profitability. But in the small print, it states that the average time to return the investment made is between 18 and 24 months. To make it clearer: An investment of with a payback period of 9 months has a profitability of 10%, that is, the time for the business to deliver the invested capital. Profitability is directly related to the product or service offered and its direct costs. Realizing this difference is crucial in your financial planning so that it does not compromise the sustainable growth of the business.
As said here, your strategy needs to be realistic. If the goal is to double sales of a product or revenue from services throughout the year, understand first what investment will be necessary and the sources of resources available. In short, you should not plan based on sales, defining a growth percentage of without having the basis for this. For example, to make 100 sales this month, how many people do you have to talk to? How many meetings do you have to schedule? How many proposals do you have to submit? These questions will give you the dimension of the number of people you will have to hire for your commercial area, your time spent in meetings, whether you will have to hire more people to help you manage the company internally.
Projecting these indicators, you will have a vision of the its sales growth. This is one of the biggest exercises in financial planning, understanding how your business’s revenue model works.Here we will discuss costs and investments. The first thing you need to understand are the types of expenses, what are the fixed and variable costs . To simplify the analysis, let's define at this point: Variable Cost - The output of resources that is linked to the production or provision of services, such as raw materials, operational labor, etc. If you want to produce more tables, you will need more wood. Or, in the case of an advertising agency, purchasing media or traffic can also be considered a variable cost.
You must also analyze how this variation happens: Depending on the recipe : production team, commercial team, investment in marketing; As the team increases : telephone, travel, technology, etc. Expenses linked to income are easier to calculate, for example, taxes that have a fixed rate. The raw material is also always linked to the recipe. Generally, marketing investment will be as well, but it should fluctuate more than other expenses because it is affected by other factors. Fixed Cost - Anything that is not directly linked to production, which is why it is usually stable for a longer period. Examples: rent, administrative labor, office electricity, etc. You don't need to hire more HR employees to sell more.
Believing that just with data on inputs and outputs of resources you already have enough information to control and make decisions, is among the biggest mistakes in financial management and can even lead to the company's bankruptcy. Those who think like this end up Industry Email List seeing financial management as a waste of time or just bureaucracy. In a way, this happens due to excessive complications in accounting and the Brazilian tax system. However, to see healthy business growth, you need to pay attention to planning and financial management.
First of all, to plan the company's new year, it is important to analyze the financial reports to understand how 2021 was for the company. With up-to-date financial control, it is possible to evaluate costs, revenue, expenses that can be cut in the new year, return on investments, and much more. Therefore, to carry out financial planning for 2022 and set your goals, you need to take into account the available resources to make future forecasts of costs and revenues. This way, you can define the right time for investments and recognize the best opportunities to direct the healthy growth of your business.
Still in this sense, financial planning is the thermometer that measures whether your goal is achievable and prepares the company to deal with possible risks. After all, by minimizing improvisation, you will have a map to follow and gain greater awareness to resist market traps. Even in the case of beginning ventures, it is also possible and necessary to gather information about the market in which you intend to operate. This is because this market research is essential for defining premises and adjusting your financial planning over time, as real information emerges. For example, labor costs.
A very common mistake is to confuse the profitability of the business with its profitability. Imagine a franchise advertisement that promises an incredible profitability. But in the small print, it states that the average time to return the investment made is between 18 and 24 months. To make it clearer: An investment of with a payback period of 9 months has a profitability of 10%, that is, the time for the business to deliver the invested capital. Profitability is directly related to the product or service offered and its direct costs. Realizing this difference is crucial in your financial planning so that it does not compromise the sustainable growth of the business.
As said here, your strategy needs to be realistic. If the goal is to double sales of a product or revenue from services throughout the year, understand first what investment will be necessary and the sources of resources available. In short, you should not plan based on sales, defining a growth percentage of without having the basis for this. For example, to make 100 sales this month, how many people do you have to talk to? How many meetings do you have to schedule? How many proposals do you have to submit? These questions will give you the dimension of the number of people you will have to hire for your commercial area, your time spent in meetings, whether you will have to hire more people to help you manage the company internally.
Projecting these indicators, you will have a vision of the its sales growth. This is one of the biggest exercises in financial planning, understanding how your business’s revenue model works.Here we will discuss costs and investments. The first thing you need to understand are the types of expenses, what are the fixed and variable costs . To simplify the analysis, let's define at this point: Variable Cost - The output of resources that is linked to the production or provision of services, such as raw materials, operational labor, etc. If you want to produce more tables, you will need more wood. Or, in the case of an advertising agency, purchasing media or traffic can also be considered a variable cost.
You must also analyze how this variation happens: Depending on the recipe : production team, commercial team, investment in marketing; As the team increases : telephone, travel, technology, etc. Expenses linked to income are easier to calculate, for example, taxes that have a fixed rate. The raw material is also always linked to the recipe. Generally, marketing investment will be as well, but it should fluctuate more than other expenses because it is affected by other factors. Fixed Cost - Anything that is not directly linked to production, which is why it is usually stable for a longer period. Examples: rent, administrative labor, office electricity, etc. You don't need to hire more HR employees to sell more.