Innovation in Unexpected Places
Be Ready for Any Scenario
FORECASTING FINANCIAL DECISIONS
In an ideal world , your company would follow a linear path to increased growth and profits . The reality , however , is that competition , ambiguity , and complexity present unique challenges , demanding careful forecasting and preparation to handle financial uncertainties . By arming itself with intelligent information and analysis , your company can remain flexible and proactive — able to quickly respond to changing conditions .
This is where scenario planning comes in . Adapted from methods utilized by military intelligence , it can help you maintain equilibrium despite unexpected or significant market shifts .
Visualize the Future Flexibility and adaptability is key , especially when outcomes can vary widely . Approaching capital investments and market strategies with an outline of possible results and responses allows your financial team to prepare realistic forecasts while remaining adaptable no matter what circumstances arise .
Nail Down Specifics It ’ s not enough to brainstorm outcomes and strategies . Your financial team needs to be deliberate in determining internal and external driving factors , and choosing specific projects to tackle . Questions such as , “ How will the addition of 10 employees affect our bottom line ?” or “ Should we expand to a second office location ?” can provide parameters for focused discussions .
Pursue Practical Application Once you ’ ve settled on scenarios , outline implementation plans with your team . But don ’ t rely upon this one-time session . Situations change . So continually evaluate data , internal and external influencers , and the effectiveness of past planning . From there , your team can project the financial impact of possible responses to push toward a brighter financial future .
Innovation in Unexpected Places
LOOK TO YOUR FINANCIAL AND ACCOUNTING TEAMS FOR GUIDANCE
Designers , writers , or engineers are often perceived as a company ’ s top innovators . Yet in crunching numbers , paying bills , and handling proposals , your financial and accounting teams actually work to ensure assets are protected and the company stays in the black — making them valuable assets for innovation . They know your books . Not only do they know your sources of capital , but they are also aware of forecasted budgets and expenses , and know what monies can be allocated for growth . Innovation can require funding for employee time , technology , and production equipment that don ' t generate immediate revenue . Financial teams know how to best appropriate and insulate these funds . They can proactively assess and recommend growth strategies . By understanding company goals and challenges , your financial team can help determine the best ways to implement change , even pinpointing investor opportunities to fund improvements . And finding monetary support can make financial teams feel innovative in their own right , as their guidance contributes to growth . In the end , tapping into the expertise of these departments can ensure that the drive toward growth doesn ’ t overshadow your ability to remain profitable along the way .
Sterling National Bank provides funding solutions to support product and service enhancements . Contact your relationship manager to discuss your needs , or call 855.274.2800 .
CONNECT INNOVATION SUMMER 2016 // SNB . COM | 21