Struggling with business finances? Our guide provides actionable tips and strategies to improve your financial literacy and management skills and drive business growth.

Money may be sexy, but talking about money is NOT.

Financial words are a HUGE turn-off. Not because financial literacy is difficult - but because many people feel so allergic to financial terminology that they tune out and then miss out on the possibility of understanding.

You know what I mean, right?

The minute someone says EBITDA (earnings before interest, taxes, depreciation, and amortization), I bet your mind just slides right over it. If someone says ratio, you start thinking about what you’ll make for dinner or the last conversation you had with your kid/partner/mom.

Because if someone is talking about ROI (return on investment) they couldn’t be talking to you, right?

Well, here’s the dirty truth. Financial literacy holds power. To unlock that power you have to focus on the words and concepts long enough to grab the basics and make them your own.

A lot of what we do at CFO on Speeddial is to take the power of financial literacy and break it down into terminology and structure that you can understand and use. Using financial terms leads to ownership and ownership is key to financial success.

So.. Let’s have a little chat about Strategic Financial Management: Three icky words strung together to create a whole phrase that begs to be ignored.

But stick with me – We are going to break them down and make these three words interesting, and possibly fun!

Strategic

Being strategic or implementing a strategy means you have a long-term vision and are taking action to get there. In a business context, a strategy is a series of steps that are designed to accomplish a specific goal or produce a specific outcome. The steps themselves are the tactics. Strategy is the roadmap to get where you want to go. A well-crafted strategy takes into account both internal factors like your business model and external factors like market trends.

STRATEGIC financial management is more than just crunching numbers.

Good strategy is about aligning your financial goals with your overall business strategy. Your financial strategy should support your company's mission, vision, and values. Let’s say your business strategy is to affect social change. By aligning your financial strategy with your company's social justice goals, you can create a positive impact on your community and build a strong brand reputation. For example, a company committed to environmental sustainability might invest in renewable energy projects or focus on reducing packaging waste. By prioritizing social responsibility in your financial decisions, you can demonstrate your company's values and attract like-minded customers and investors.

No matter the mission, improving cash flow is a universal goal that a good business strategy will address. For a social justice-focused business, a strong cash flow is essential for executing the mission. Imagine a fashion company that wants to use sustainable materials but needs to cut costs to stay competitive. By improving their cash flow, they can fulfill their mission and invest in eco-friendly suppliers without sacrificing profitability. This strategic approach ensures that the company’s social impact isn't compromised.

Strategy is about more than just numbers; it's about aligning your financial goals with your overall business strategy. Your strategy is your roadmap to success. It’s not scary, it’s not boring. Strategy is exciting! So, take the time to develop a financial strategy that aligns with your mission, vision, and values. You don’t need to do it alone. At CFO on Speeddial we are experts at helping small business owners develop and perfect your strategy. As you follow the roadmap we develop together, watch your business thrive!

Financial

Finance includes any and every part of your business that relates to achieving your money-related objectives. Every business has its own top objectives – to create profit, build equity, improve your cash flow, or sell to an investor or larger company. There is a huge laundry list of possible financial objectives for any company. The key to setting yours is (naturally) how you prioritize that list; and what specific tactics you use to try and achieve them.

Every small business shares at least one financial objective in common, profitability.

Profitability is the lifeblood of your business and in simple terms, it’s the amount of money you have left after covering all of your expenses. But do you have the complete picture of your profitability? You might have a general sense of how your business is doing, but if you don’t have the full picture you’re in danger of making decisions that you later regret.

Navigating your business finances should not feel like sailing through a dense fog. If you feel like you can only see a few feet ahead, it’s time to burn off the mist with a full picture of your profitability. A fractional CFO can help you put simple systems in place to measure your true profitability with these three financial ratios:

Gross Profit Margin: This ratio tells you how much of each dollar you earn goes towards covering the cost of making your product or service.
Net Profit Margin: This ratio shows you how much of each dollar you earn is pure profit.
Return on Investment (ROI): This ratio calculates how much you earned on every dollar you invested in your business.

With these financial ratios in place, you’ll know at the earliest stages if profitability is starting to decline or your debt levels are approaching the danger zone. Instead of relying on your intuition or guesswork, you can make informed decisions based on solid financial data. This equals long-term success…and what’s not to love about that!

Management

Management refers to the tools, systems, and processes that you use to move your company forward toward your most important objectives.

Management processes can be simple or complicated.

You already have management systems in place whether you realize it or not. Your processes include the things you and your team do every day and the procedures that happen only once a year. The question is, are your systems accomplishing your goals? As you grow, you’ll need additional systems to manage people, products, distribution, marketing, sales, and yes, finance.

Believe me, you WANT to invest in a well-structured financial management system. With good systems in place, you’ll improve efficiency, gain the full picture of your business, empower your decision making, reduce financial errors, and improve your business’ scalability.

Your business is like a complex machine. To keep it running smoothly, you need a well-oiled system of tools and processes. Key financial management tools include: accounting software, budgeting tools, financial reporting systems, and cash flow management tools.

Here at CFO on Speeddial, we specialize in setting up well-structured financial management systems. We work with businesses of all sizes to design and implement customized solutions that meet their specific needs. Our goal is to empower you to take control of your business's finances and drive long-term success.

If you’re overwhelmed by financial management, hiring a fractional CFO will lift that overwhelm from your shoulders. We can greatly simplify your system building. Our years of experience will pinpoint ways to improve your financial processes and ensure your business is running at peak efficiency.

Strategic Financial Management is your roadmap to success.

By developing a clear financial plan, implementing effective strategies, and utilizing the right tools, you can achieve your financial goals and drive long-term growth. At CFO on Speeddial, we see Strategic Financial Management as an opportunity to create clarity, transparency, and responsiveness.

What every smart small business owner knows.

Financial literacy is incredibly sexy.

It may be the popular opinion that money-talk is a turnoff, but it’s time to turn that opinion upside down. Have I convinced you that financial literacy is the key to unlocking your business's full potential? I hope so, because it is.

Mastering financial literacy isn't really about understanding complex numbers; it's about owning the keys to control your business's financial performance. Who wouldn’t think that’s sexy?

Don't let financial literacy intimidate you.

At CFO on Speeddial, we focus on revealing the truth hiding in your numbers and supporting owners and teams as you take action to chart and navigate your financial path. Because your financial future shouldn’t be a mystery. You should know exactly where you are, where you are going, and how you are going to get there.

Are you curious how your financial literacy stacks up? Take our FREE Financial Fundamentals Quiz and we’ll rate you and your systems from Solopreneur-level to Danger Zone or Solid, Needs Polish all the way to Nirvana. Where do you fall?

Financial Fundamentals Quiz

Ready to take the next step?

Our team of experts can guide you through the complexities of financial management, helping you:

Develop a tailored financial strategy
Implement robust management systems
Optimize your financial operations
Make data-driven decisions
Achieve your financial goals

Schedule a free consultation with us today. Let's turn your financial fears into financial triumphs. Because financial literacy isn't just about numbers; it's about empowering your business to thrive.

Let's Talk!

The Low Down on Strategic Financial Management: A Guide for Small Business Owners