The purpose of long-term financial planning on a business

[Suba]

Long-term plan is a strategic plan that includes the formulation of goals and objectives to be achieved by a company, more than a year. Company goals are something that the company intends to achieve through various efforts. Both the measurement of the company's financial performance and budget, also need investment analysis techniques such as Time Value of Money, Payback period, Present value and Internal Rate of Return, so short-term or long-term plans and strategies are a reference to be achieved, without this being like someone walking in the dark without light, not knowing the direction.

 

[GoldenLady]

Since the main reason any business exists is to make profits, financial planning should be necessary, especially long-term.

This will give the owner a goal to work at, how to overcome challenge of funding or unexpected expenses that may be incurred.

 

[Adeyoola7]

Long-range business planning helps business leaders to think differently about the company's direction. It also provides motivation and insight into the type of performance necessary to meet business goals. This is especially important when significant internal change is required to maintain competitive advantages

 

[Neta Sam(Samuel Odunlade)]

When you say, something is long term it means it has the future in mind or in view. So long term financial plan serves to track your direction, your purpose of the business from swaying to another direction, because as you continue in business and certain challenges are coming in, there is tendency for you to loose focus.

 

[Luckboy]

Long-term financial planning is required to implement decisions that have long lead times. ... Help the firm avoid surprises by identifying what may happen in the future if certain events take place.

 

[Nuonuh]

A strategy for the potential financial development and expansion of a business is generated by long-term financial planning. These types of decisions have lengthy lead times and require a long-term outlook on how the plan will be executed. The plan makes certain predictions based on factors such as future economic prospects, interest and inflation rates, estimates of commodity prices and revenue, and evaluations of the market climate based on particular regulatory and tax structures. The aim of the plan is to set financial targets that result in the successful realization of long-term financial goals once achieved.

Do you know any results if a business does not have this? Please share your thoughts about this. Thank you

Long-term financial plan has been a means company adopt to ensure their business don't go under rags and ensure they stay in the business. This plan doesn't necessarily mean there's abundant of fund in the company, rather it's plan is to find a way the company can survive on a longrun

 

[Adventurer]

A strategy for the potential financial development and expansion of a business is generated by long-term financial planning. These types of decisions have lengthy lead times and require a long-term outlook on how the plan will be executed. The plan makes certain predictions based on factors such as future economic prospects, interest and inflation rates, estimates of commodity prices and revenue, and evaluations of the market climate based on particular regulatory and tax structures. The aim of the plan is to set financial targets that result in the successful realization of long-term financial goals once achieved.

Do you know any results if a business does not have this? Please share your thoughts about this. Thank you

Of course any business that does not have this is planning to fail, statistics show that most small businesses fail within the fist year of operation and lack of financial planning is one of the reasons amongst several of them.

 

[Mostee501]

Businesses need to have a long term financial plan, as this can serve as a guide, or goal for the business. Also it helps the business plan ahead based on different market factors, unpredictable trends and all.

Yes sure,you're right and the purpose of longterm financial planning,is to enable financial stability,freedom and success in the future. As the saying goes "if you fail to plan, then you're planning to fail ".

 

[Sincerem]

Adequate planning leads to ones success, be it in business or any venture at all. We should manage our finance properly to avoid risking our business or life to financial degradation. It us better to spend some, save, and invest wisely to regain what was spent.

 

[Shigobad2020]

A strategy for the potential financial development and expansion of a business is generated by long-term financial planning. These types of decisions have lengthy lead times and require a long-term outlook on how the plan will be executed. The plan makes certain predictions based on factors such as future economic prospects, interest and inflation rates, estimates of commodity prices and revenue, and evaluations of the market climate based on particular regulatory and tax structures. The aim of the plan is to set financial targets that result in the successful realization of long-term financial goals once achieved.

Do you know any results if a business does not have this? Please share your thoughts about this. Thank you

Then purposes of long term financial planning on a business is to plan ahead and plan for the future in the business, a good business man should plan ahead by looking at the future of the business, If we don't fail to plan we plan to fail.

 

[Billy]

Long-term plans are like setting long-term objectives. It is important for businesses to have the bigger picture. This keeps the business on track and in check on the set goals.

 

[Nomad]

If you want to stay for long, i.e. you want to do a long term business, you need to plan your business accordingly. However, if your planning is for short term gain, you only need to plan for short term profits.

 

[Daniel52]

For every business, there should be long and short term goals, short term goals being goals that are achievable within a short time while long term involves strategic planning for a long period of time. Long term goals should be Paramount to keep a company moving

 

[Dowenship]

A strategy for the potential financial development and expansion of a business is generated by long-term financial planning. These types of decisions have lengthy lead times and require a long-term outlook on how the plan will be executed. The plan makes certain predictions based on factors such as future economic prospects, interest and inflation rates, estimates of commodity prices and revenue, and evaluations of the market climate based on particular regulatory and tax structures. The aim of the plan is to set financial targets that result in the successful realization of long-term financial goals once achieved.

Do you know any results if a business does not have this? Please share your thoughts about this. Thank you

Long-her financial planning generate development and expansion of a business. Planning or setting a goal is one of the most important way of building a financial structure

Be Inspired, Be informed.

Be informed always because information is knowledge and it carries power to succeed.

 

[Alihaider]

Long-distance planning helps business leaders think differently about the direction of the company. It also provides the motivation and insight needed to accomplish business goals. This is especially important when significant internal change is needed to maintain competitive advantage.

 

[Setho]

In business, you do not go in expecting to make millions of dollars with one order or in one month that is why you should set both short term and long term goals in your business. You should them be able to make your financial projections based on your own expectations and try to match that with hard work.

 

[Cash%]

If you have a long term financial plan to help your business ,its categorically possible for your business to increase in its growth and possible many medium you had expect

 

[Mandypaul]

A financial plan is a statement of what needs to be done in the future to achieve company goals. Long-term financial planning is required to implement decisions that have long lead times. ... Help the firm avoid surprises by identifying what may happen in the future if certain events take place.

 

[Victor001]

A strategy for the potential financial development and expansion of a business is generated by long-term financial planning. These types of decisions have lengthy lead times and require a long-term outlook on how the plan will be executed. The plan makes certain predictions based on factors such as future economic prospects, interest and inflation rates, estimates of commodity prices and revenue, and evaluations of the market climate based on particular regulatory and tax structures. The aim of the plan is to set financial targets that result in the successful realization of long-term financial goals once achieved.

Do you know any results if a business does not have this? Please share your thoughts about this. Thank you

Most of the large firm and business that have stand the test of time, build their resources and fundamentals on the foundation. This should be key to every investment.

 

[Jumoke12]

A strategy for the potential financial development and expansion of a business is generated by long-term financial planning. These types of decisions have lengthy lead times and require a long-term outlook on how the plan will be executed. The plan makes certain predictions based on factors such as future economic prospects, interest and inflation rates, estimates of commodity prices and revenue, and evaluations of the market climate based on particular regulatory and tax structures. The aim of the plan is to set financial targets that result in the successful realization of long-term financial goals once achieved.

Do you know any results if a business does not have this? Please share your thoughts about this. Thank you

A strategy for the potential financial development and expansion of a business is generated by long-term financial planning. These types of decisions have lengthy lead times and require a long-term outlook on how the plan will be executed. The plan makes certain predictions based on factors such as future economic prospects, interest and inflation rates, estimates of commodity prices and revenue, and evaluations of the market climate based on particular regulatory and tax structures. The aim of the plan is to set financial targets that result in the successful realization of long-term financial goals once achieved.

Do you know any results if a business does not have this? Please share your thoughts about this. Thank you

The purpose is aimed at the growth of the business itself. Long term financial plans are needed for businesses that deal in long term assets.