Rob Tolley - How Businesses Can Optimise Their Financial Strategies

Having a comprehensive financial strategy will help a business to achieve its goals and be successful in the long term. A financial strategy is a combination of strategic and financial planning. It acts as a roadmap by which a business can assess its current costs, financial resources and budget, detailing how all of these things can be leveraged to help the company meet its goals. It also mitigates risks and can help business owners to identify their priorities and make better-informed decisions.

1. Rob Tolley - How
Businesses Can
Optimise Their
Financial Strategies
Having a comprehensive financial strategy will help a business to
achieve its goals and be successful in the long term. A financial
strategy is a combination of strategic and financial planning. It acts as
a roadmap by which a business can assess its current costs, financial
resources and budget, detailing how all of these things can be
leveraged to help the company meet its goals. It also mitigates risks
and can help business owners to identify their priorities and make
better-informed decisions.

2. Components of a Financial
Strategy
Financial Performance
Most strategies will
incorporate information on
financial performance, with
financial ratios used to
identify the financial position
of the business at any given
time.
Expense Outgoings
Other sections should include
expense outgoings, which
detail the company's
spending patterns and
budget allocations.
Investment Planning
Investment planning is a
crucial component, outlining
how the company plans to
grow its assets and generate
returns.
Working Capital
Management
Working capital management
ensures the company has
sufficient liquidity to meet its
short-term obligations and
operational needs.

3. Cash Flow Projection
1
Annual Projection
In terms of the latter, it's generally advisable for a business to predict its cash flow for a whole year.
2
Identify Potential Issues
This is to identify potential future cash problems and enable the business to better plan ahead.
3
Informed Decision Making
By projecting cash flow, businesses can make more informed decisions about investments, expenses, and
growth strategies.

4. The Role of New Technologies
AI and Robotic Process
Automation
Experienced and successful CEOs
like Rob Tolley know that a financial
strategy should take new
technologies, efficiencies and
capabilities into account. For
example, such technologies could
include AI and robotic process
automation tools, which enable
finance tasks to be completed much
more quickly and accurately while
providing extremely in-depth
insights to stakeholders.
Unlocking Value
Financial strategies — as used by
professionals such as Rob Tolley,
former London broker — should
seek to unlock value from both talent
and technology by identifying the
value proposition each component
delivers.
Key Questions
An effective financial strategy should
answer questions including the role
of emerging technologies in the
strategy, the new roles required for
an autonomous finance function and
the best means of engaging staff in
digital efforts.

5. Monitoring Progress
1
Regular Assessment
It's crucial to regularly assess progress in terms of the
financial strategy, and using financial analysis tools is a
good way to do this.
2
Incorporate Analytics
Incorporating the appropriate financial analytics into the
strategy will help a business identify when an
intervention or change of course is required and can
serve to celebrate success and motivate progress.
3
Adapt and Improve
By consistently monitoring progress, businesses can
adapt their strategies to changing market conditions and
improve their financial performance over time.

6. Investing in the Future
1
Long-term Financial
Stability
A solid financial strategy
doesn't just help a
business manage its
current resources: it is
about investing in its
future. The ultimate goal of
any financial strategy is
long-term financial
stability.
2
Investment Strategy
To this end, an investment
strategy could form part of
a business's overarching
financial strategy;
investments can potentially
generate income and
appreciate in value,
thereby providing a further
source of financial
stability.
3
Sustainable Growth
By focusing on long-term stability and strategic investments,
businesses can ensure sustainable growth and resilience in the
face of economic challenges.