Strategic Financial Planning determines how a business manages itself financially meeting its Long And Short Term Financial Goals. A sound Strategic Financial Plan considers every aspect of the business and its impact on the financial position of the company.
A robust personal financial plan is just like a strategic financial plan, but it applies to an individual and her family. The same principles can be applied to personal financial plan to ensure better cash flows, sustainability and accomplishment of the personal financial goals.
Strategic Financial Plan helps to understand the goals of the company and key metrics to derive the profitability.
It helps to know the cash conversion cycle of the company and determines the funding requirements.
It assists in analysing the time frame and cost of debt. Depending upon the Cash flows the period of loan can be ascertained.
Strategic Financial Plan helps identifying the potential risks and deciding policies and plans to mitigate such risks.
A sound Strategic Financial Plan will take care of all sorts of insurances and taxation policies required by Corporate.
Strategic Financial Planning ensures that succession planning is in place.
A strategic financial plan as a part of the overall business plan provides a benchmark for the operations of the company to the the management and employees. In the same way a well defined personal financial plan can establish goals and milestones to achieve them in a reasonable manner.