Financial Strategy

Strategic financial management refers to study of finance with a long term view considering the strategic goals of the enterprise. Financial management is nowadays increasingly referred to as "Strategic Financial Management" so as to give it an increased frame of reference. To understand what strategic financial management is about, we must first understand what is meant by the term "Strategic". This is something that’s done as part of a plan that’s meant to achieve a particular purpose.

Why have a financial strategy?

Many organizations manage income from a number of different funding and finance sources - from donations, grants, contracts and income generated from trading. A financial strategy enables your organization to assess your financial needs and the sources of support required to meet your objectives and fulfill the organizational mission, whilst also planning for continued growth to enable stability. You're financial strategy will derive from your mission. So the first step is to clearly define why you exist and you plan to achieve your mission before preparing any budgets.

What's your mission?

A mission statement is a brief declaration of an organization's purpose and values - the reason why it exists. Your mission should be a long-term statement of intent deriving from the vision that originally inspired the organization to form. It shouldn't be a detailed list of what you will do, how you'll do it and when. With your direction clear you can create a timed and detailed work plan that outlines the operational activities necessary to achieve each goal down to the day to day activities. This will ensure that your mission and financial goals are complementary to each other rather than in competition.

About Author: The author of this blog has done research on customer service, business solutions, outsourcing.