Financial Vision

Most Entrepreneurs are aware of the need for and have most probably developed a vision for their company. The Company Vision is the overall guiding force that drives the company and forms the basis of the Mission Statement. The Company Vision and the Mission Statement allow the Entrepreneur to clearly communicate the strategic direction of the company to the employees and other stakeholders.

In my opinion, a Financial Vision is also important for Entrepreneurs. Developing a Financial Vision quantifies the overall Company Vision and serves as a yardstick to measure periodic financial performance. It also provides the financial stakeholders in the company – shareholders and debt providers – a concrete gauge to assess the potential for their investment. It is not necessary to widely share the Financial Vision of the company.

A Financial Vision is long-term and has to be developed in conjunction with the Company Vision. It might include targets for revenues, company value, return on equity, growth, etc. The Financial Vision should be easy to understand and contain no more than three areas of focus.

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Ravi Patel

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