Capital Planning is often overlooked by business owners for their businesses.
Most business owners and entrepreneurs often think of capital planning for their personal balance sheet like retirement and home ownership. However, they fail to realize that having an effective capital plan developed for both short and long term financial goals for their business is also crucial. Capital Planning is the lifeblood of startups who successfully raise millions for an idea but for some reason, small businesses and entrepreneurs don’t practice this enough.
Midstreet Capital uses a layered approach to implement financial planning for its small business and middle market clients. In addition to Venture Backed Startups, public companies also do financial planning regularly, out of necessity. However, private companies often never even consider it. There are direct and indirect consequences that a lack of financial planning creates within a business which can include:
- Lack of direction and focus from the bottom up
- Lack of accomplishment and metrics for management and employees
- Poor buy-in from employees
- Spending too many resources on low value enhancing ideas
- Incorrectly pricing your products or services
- Missed growth or value creating opportunities
- Lazy strategic thinking
As private companies are generally not required to do it, there is a tremendous opportunity cost associated with the lack thereof. Companies who regularly practice financial planning benefit from increased focus, make better decisions and gain a competitive edge over their competitors. Midstreet Capital advisors leverage our expertise to empower business owners to make better decisions and find new ways to help them exceed their current expectations. Have a chat to one of our expert consultants today and we’ll walk you through the process of developing a strategic capital plan.
Looking for expertise with capital planning? Click here to book an appointment with one our capital planning specialists.