Why Your Company Needs a Strategic Business Plan

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Image courtesy of tungphoto / FreeDigitalPhotos.net

Image courtesy of tungphoto / FreeDigitalPhotos.net

No matter how long your company has been operating, it needs a strategic business plan. A strategic plan is a roadmap for your company. It lets you see not only where you want the business to go, but also the best way to get there.

Despite that, many small and mid-sized businesses go without a plan every year. If your company doesn’t currently have a plan, a virtual CFO can help you not only create one, but also put it into practice.

What is a Strategic Business Plan

A strategic business plan is somewhat different from a standard business plan. The major difference between the two is when they are needed. Most companies create a business plan when they are just starting up. A business plan describes the company and its product or service. The plan is often used to seek funding for a new company and to let investors or lenders know how viable the idea is.

Strategic business plans are commonly used by more established companies. The goal of the plan is lay out the company’s strategy, where it wants to go in the future and how it plans to get there. It describes ways to arrange the business’ priorities to make the best use of revenue. The plan should allow a business to build on its strengths and find ways to improve or eliminate weak areas.

One area a strategic business plan commonly focuses is on is its priorities. The goal of many plans is to help a company figure out what is most important and what areas to focus on to increase growth.

Why Your Company Needs It

Having a strategic business plan, or not, can be what makes or breaks your business. A well thought out plan can let you see if it is time to take your company to the next level or if you need to wait a bit before growing or expanding. The plan can also let you see if your company needs to take a step back in terms of size or product offering.

Using the plan to set priorities means that you aren’t focusing on areas that won’t help your business. For example, developing a plan can allow you to funnel your business’ resources to where they will provide the most benefit, whether that is hiring a new employee or removing a product that isn’t performing well.

A strategic business plan also allows everyone in management understand what the company is doing and where it is headed. The plan can also be useful to non-management employees. When they see the plan, they can develop a sense of the direction your company is headed and the overall health of the business.

With a strategic plan in place, you can begin to correct any issues that have plagued your company. A plan can help you see where your company is spending more than it needs to and to find ways to trim extra expenses.

Working with a Virtual CFO

Sometimes, it can be difficult to see the forest for the trees, especially when it comes to creating an overall strategic plan for your business. You may be so involved in managing the day to day operations of your company that it’s hard to take a step back and plan for the future. A virtual CFO can be a valuable resource when you are developing or re-working your company’s plan. He can provide useful third party insight and help your company develop an effective strategy and plan for the next step, no matter what it is.

The team at New Direction Capital has more than 20 years of experience partnering with businesses, helping them plan and solve problems. To learn more about how we can help your company develop a strong strategic plan, contact us today.

Image courtesy of Ambro / FreeDigitalPhotos.net

Image courtesy of Ambro / FreeDigitalPhotos.net

When it comes to the financial health of your business, who you’re banking with matters just as much as the size of financing you get and the amount of revenue your company earns. A bank that is a good fit for your company can save your business money in the long run and can save you time, as the bank will have an understanding of your business’ strategic plan and how it operates. A virtual CFO can help you find a bank and develop a strong business relationship with it.

Take the Time to Shop Around

Not every bank will be the right fit for your company. The bank you’re currently using for your accounts or loans may not be ideal, for several reasons. A bank that’s not doing well financially won’t have the funds or ability to give your business the financing it needs, for example.

Size matters when it comes to finding a bank, too. Ideally, the bank you end up working with will have experience dealing with small or mid-size companies. It’s easy to become lost in the shuffle if your company is a mid-size business working with a bank that is used to working with larger clients.

Keep Your Financial Details in Good Order

Your relationship with your bank can only be as strong as your financial details. If you don’t know what is going on with your company’s finances, it will be difficult for your bank to know and to provide you with the services you need. The team at New Direction Capital can help you create a strategic business plan and keep track of the day to day financial details, so that you can provide the bank with the information it needs to best meet your needs. A virtual CFO can prepare your company’s financial statements and explain them to you and the bank, so that everyone is on the same page.

Keep in Touch with the Bank

Communication is key to building and maintaining a solid banking relationship. That means keeping the bank up-to-date on any changes in your company, including any new hires, changes to the products or services you offer, and changes to the vendors your business uses. As your company’s needs change, how you use the bank will change, too, which is why it needs to be kept updated.

If your company is struggling, the bank should know that as well, within reason. When you have to give bad news to the bank, do so in a way that shows you are working on the problem, so that your overall relationship doesn’t suffer. The sooner you let the bank know of any issues, the sooner you can work together to come up with a solution.

You also want to keep up-to-date on what is going on with the bank. Banks can fall on hard times, too. Even if you’ve had a years or decades long relationship with one financial institution, if it should start struggling or be unable to provide the financing or support you need, it may be time to move on and find another bank to work with.

New Direction Capital has helped numerous small and mid-sized businesses establish and maintain strong, working relationships with banks. Reach out to us today to learn more about how we can help you find a bank that best meets your needs.

Successfully running a business means more than having a terrific idea and a strong customer base. It also means having a full understanding of your company’s financial health and what your business needs to do to achieve its goals financially. At many larger businesses, a chief financial officer (CFO) is the executive in charge of overseeing a company’s financial details, taking care of both income and expenses.

While small or mid-sized companies also need the services of a CFO, they often don’t have money in the budget to hire another senior manager, which is where a virtual CFO can step in. The services provided by a virtual CFO and a company such as New Direction Capital are designed to help your business grow.

Experience You Need at a Price You can Afford

The problem many small or mid-size businesses face is that the cost of hiring a full-time CFO exceeds their budget. Hiring a full-time employee means not only having enough to cover his or her wages, but also putting together a benefits package. The more experienced and talented the CFO, the higher the cost. One solution is to hire an entry-level accountant or financial officer, but that person will often not have the experience needed to know how to go after the right type of funding or how to implement a plan that allows a company to grow.

When your business decides to outsource the responsibilities of a CFO, you can get the experience you need for the most growth without paying for a full-time employee. You can work with a virtual CFO on an as-needed basis, such as during a project or work with the CFO on a regular, part-time basis.

Grows with Your Business

The role of a virtual CFO can grow and change as your business needs grow and change. Instead of needing to hire an additional employee, you can simply shift the role and responsibility of the virtual CFO to meet your needs at the moment. For example, you may initially work with New Direction Capital to help your company save money. A few years down the road, your business might need to find a new source of capital or financing, at which time the focus and role of the virtual CFO can also change.

Services Shaped to Meet Your Needs

Since every business is different, the exact role of a virtual CFO will also be different. Although not an employee, your virtual CFO becomes an important member of your team, working with you directly to come up with customized solutions for your company. The focus of a virtual CFO is on building a relationship with you and your business. Having a clear idea of what your company wants and needs allows the CFO to tailor a solution that works for you.

24/7 Availability

There is no 9 to 5 in the virtual CFO world. New Direction Capital is committed to providing around the clock service to clients, which means that if you discover a financial problem at 10 pm on a Friday or in the early morning on a Tuesday, you can reach out to your CFO for help and guidance.

Help You Reach Your Goals

Where do your see your business in five or 10 years? If you are unsure, a virtual CFO can help you create goals and then put a plan into place that helps you realize those goals. For example, a CFO can help you decide if it’s the time to expand your company by opening another location or if it’s the time to make the move from leasing property to owning it.

If you are ready to take your business to new heights or need assistance getting your financial details in order, New Direction Capital can help. Contact us today to learn more about how our services can best serve your company.

 

Mike Breeze photoHello and welcome to the new blog for New Direction Capital! We are excited to get the blog up and running and hope that our posts provide more insight into the work our company does. The goal of our blog is to highlight success stories and case studies from our clients and to keep you up-to-date on the world of business finance and the role of the virtual CFO in the digital age.

About New Direction Capital

The founder and principal of New Direction Capital, Mike Breeze, created the company eight years ago. Mike has more than 20 years of experience in business planning, financial services, capital planning, real estate, and technology. Over the course of his career, Mike has shown that persistence and the right attitude can lead to great things for his clients, from significant profitable growth to finding capital and financing.

At the heart of the work we do at New Dirction Capital is helping businesses grow. The development of a global economy and the rise of the Internet has meant significant changes for the way businesses operate. The way companies communicate with customers, work with suppliers and vendors, and compete with other businesses has changed in recent years. The Internet age offers plenty of new opportunity for business, but it also offers plenty of new challenges. Our goal at New Direction Capital is to help your business work through the challenges and become profitable or grow profitability. We hope that in addition to the virtual CFO services our company offers, that our blog serves as a valuable tool for you.

What is a Virtual CFO?

A chief financial officer, or CFO,  analyzes the finances of a business and ensures that the company’s financial reports are sound. While having a person in charge of the financial health of a company is a must for every businesses’ success and growth, the cost of hiring an individual to perform the role can be prohibitive, particularly for startup companies or small businesses.

A virtual CFO performs the duties of a CFO, but is an outside service provider. Working with a virtual CFO allows your business to enlist the experience and assistance of a financial professional, on a part-time basis.

The role of a virtual CFO varies from company to company and varies depending on who is offering the service. New Direction Capital believes that a virtual CFO should be an active partner. Instead of just giving clients a list of ideas, we outline specific steps your company can take to help you achieve your goals, whether those goals are short or long-term, and help them implement the specific steps.

Connecting with Us

We hope that our  new blog is a useful tool for you and your business, whether you are currently a client or are hoping to learn more about the services a virtual CFO can provide. Please feel free to connect with us through the blog, by leaving any questions you  have in the comments. You can also connect with us through social media.

At New Direction Capital, our goal is to be available to our clients whenever they need us. Our new blog gives us yet another way to be accessible to clients. We thank you for taking the time to read and hope you’ll reach out with any questions you have.


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