Business strategy models should be built around an understanding of funding, investment and profit. In this TV show Sara Daw of The FD Centre
discusses of Financial Directors can win the war.
Financial business strategy models
In this environment I think the role that the FD can play right now is understanding what the core business engine is. So what are the core drivers of profit and cash of course? And once they’ve understood that, to build the strategy around that. Make sure that if they have to resize or right size the business they cut back more so they’ve got extra to reinvest in the new strategy going forward. Make sure that they build the strategy around that so they have a clear vision and they have a plan to get there. Quite importantly is that the FD does that classic thing of pouring cold water over the ideas that the business owner has. That’s risk assessment. And we would expect every FD to do that. It has to be done in a positive way. But it’s absolutely what the business needs. So understand the risks of a business strategy and make an assessment on that. And then I think the FD needs to understand the timetable, how to implement the strategy and own the timetable. So project manage that, hold people accountable, and lastly I think they need to make sure that they’ve got the right type of strategic funding to support that strategy, the right mix of funding and really understand that different types of funding are going to cost differently. Then really build the operational engine to support that strategy which delivers time and money to the entrepreneur and then build, an advisor community around the business all aligned to help, force that strategy through.
Thank you for watching this video about business strategy models and Finance Directors. Keep an eye on the new TV shows being added to Connected Economy TV