Financial objectives
Definition: Goals focused on economic performance and financial sustainability, essential for evaluating financial health and guiding strategic decisions for long-term growth.
Characteristics:
Measurable and quantifiable
Short, medium, and long-term
Realistic and achievable based on analysis
Specific and focused on key financial areas
Importance of financial goals
Financial Sustainability: Ensure long-term viability with effective resource management and planning.
Example: Cash reserves to handle unforeseen events and maintain operations.
Decision Making: Provide a clear framework for strategic and operational decisions, guiding investment choices.
Attracting Investors: Enhance capital attraction through financial transparency and solid business plans.
Performance Evaluation: Measure success and make adjustments to stay on track with company goals.
Important Vocabulary
Financial Planing, Cost Management, Revenue Diversification, Strategic Investments, Debt Investments, Financial ratios
Financial Planning
Create budgets and future financial plans.
Regularly check and adjust finances.
Cost Management
Find ways to cut costs and save money.
Make processes work better and faster.
Revenue Diversification
Look for new ways to make money.
Explore new markets and customer groups.
Strategic Investments
Choose investments that are likely to make money.
Use financial resources wisely.
Debt Management
Replace old debt with better deals.
Keep debt at manageable levels.
Financial Ratios
Use numbers to measure financial health (e.g., debt-to-income ratio).
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