A financial road map is like GPS for your business—it tells you where you are and how to get where you’re going. If you want to ensure your company is heading in the right direction—and that you’re taking the right steps to achieve your long-term goals—a financial road map is a necessity.
Here’s how you can create a financial road map for your business:
1. Begin with the end in mind
Start with the big picture. What is your company’s long-term vision? Where do you want your business to be one year, five years, and ten years from now? Once you have a clear picture of your destination, you can start to design your road map, which will include all the goals you’ll need to accomplish along the way.
2. Develop a strategy
Determine the steps required to meet the goals you identified in step one. Who needs to do what and when? This is a crucial part of the road map as it outlines how you will make your goals a reality.
3. Financial planning
Your road map tells you where you’re going, but your cash flow will determine if you can make it there. Your Chartered Professional Accountant can help you with cash flow planning and other important financial considerations such as retirement planning, estate planning, and tax planning.
4. Expect a few detours
On any journey, there will be some bumps in the road. Outline potential risks and how you’ll manage them and set aside an emergency fund for slower times and unforeseen obstacles.
5. Track your progress
Monitor your progress to determine whether you are on track or if adjustments need to be made in light of a changing business climate. Celebrate key milestones as you reach them. Once you arrive at your destination, enjoy your well-deserved success. When you’re ready, you can set your sights on a new goal.
The financial road map is an ongoing journey that’s best approached not as a one-time process but as an integral part of the way you run your business on a continuous basis. Done right, it can help you find the quickest route between where you are and where you want to go.
If you would like to discuss your financial road map, give us a call at 604-534-7701 or email us at info@jeskeco.com.