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6 Ways Strategic Financial Planning Concepts Can Help In Personal Financial Planning

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.

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How Is It Different From A Personal Financial Plan?

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.

What does a Strategic Financial Plan involve?

Budgets & Costing

Strategic Financial Plan helps to understand the goals of the company and key metrics to derive the profitability.

Management of Working Capital

It helps to know the cash conversion cycle of the company and determines the funding requirements.

Debt Management

It assists in analysing the time frame and cost of debt. Depending upon the Cash flows the period of loan can be ascertained.

Risk Management

Strategic Financial Plan helps identifying the potential risks and deciding policies and plans to mitigate such risks.

Corporate Taxation and Insurances

A sound Strategic Financial Plan will take care of all sorts of insurances and taxation policies required by Corporate.

Succession Planning

Strategic Financial Planning ensures that succession planning is in place.

What Can a Person Leverage From A Strategic Financial Plan ?

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.

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