Having done the preliminary work of assessing and working through the early stages of a business’s problems and road to recovery, we’ve recently talked about actually hashing out the Recovery Plan and then putting together some long-term therapies – now we’re moving on top Step 9: Long-term financial planning in the GOFA’s guide to financial recovery.
Now that the Long-Term Treatments have been defined (from previous step) a long-term financial plan, which is generally considered a blend of technical analysis and strategizing, is used to identify long-term imbalances.
From here, you need to establish your financial strategies in order to offset the identified disparities. Then, you and your management team want to start cultivating a big-picture (long-term) view or thinking. This will also allow you to keep your focus on the long-term financial issues present.
The financial plan that you will come up with should also work to prevent any long-term imbalance from becoming an impending emergency. Additionally, a financial plan can build a case for action by creating awareness among your organization’s shareholders (should you have any) of the identified long-term issues and the need to combat them.
If you don’t know how to go about putting together a financial plan, we’re partial to HelpsMe.com’s how-to article.
Onwards and upwards! 2 more steps to go… next up is Step 10: Recovery Leadership.
Remember to always make an informed decision in all case,