Nasim Siddiqi - The Role of Finance in the Strategic-Planning and Decision-Making Process

The strategic-planning process utilizes analytical models that provide a realistic picture of the individual, corporation, or nation at its “consciously incompetent” level, creating the necessary motivation for the development of a strategic plan. Nasim Siddiqi says the process requires five distinct steps outlined below and the selected strategy must be sufficiently robust to enable the firm to perform activities differently from its rivals or to perform similar activities in a more efficient manner.

A good strategic plan includes metrics that translate the vision and mission into specific end points. This is critical because strategic planning is ultimately about resource allocation and would not be relevant if resources were unlimited. This article aims to explain how finance, financial goals, and financial performance can play a more integral role in the strategic planning and decision-making process, particularly in the implementation and monitoring stage.

The Strategic-Planning and Decision-Making Process

1. Vision Statement

The creation of a broad statement about the company’s values, purpose, and future direction is the first step in the strategic-planning process.

Nasim Siddiqi vision statement must express the company’s core ideologies — what it stands for and why it exists — and its vision for the future, that is, what it aspires to be, achieve, or create.

2. Mission Statement

An effective mission statement conveys eight key components about the firm: target customers and markets; main products and services; geographic domain; core technologies; commitment to survival, growth, and profitability; philosophy; self-concept; and desired public image.The finance component is represented by the company’s commitment to survival, growth, and profitability. The company’s long-term financial goals represent its commitment to a strategy that is innovative, updated, unique, value-driven, and superior to those of competitors.

3. Analysis

This third step is an analysis of the firm’s business trends, external opportunities, internal resources, and core competencies. For external analysis, firms often utilize Porter’s five forces model of industry competition, which identifies the company’s level of rivalry with existing competitors, the threat of substitute products, the potential for new entrants, the bargaining power of suppliers, and the bargaining power of customers.

Another method, value-chain analysis clarifies a firm’s value-creation process based on its primary and secondary activities. This becomes a more insightful analytical tool when used in conjunction with activity-based costing and benchmarking tools that help the firm determine its major costs, resource strengths, and competencies, as well as identify areas where productivity can be improved and where re-engineering may produce a greater economic impact.

4. Strategy Formulation

To formulate a long-term strategy, Porter’s generic strategies model is useful as it helps the firm aim for one of the following competitive advantages: a) low-cost leadership (product is a commodity, buyers are price-sensitive, and there are few opportunities for differentiation); b) differentiation (buyers’ needs and preferences are diverse and there are opportunities for product differentiation); c) best-cost provider (buyers expect superior value at a lower price); d) focused low-cost (market niches with specific tastes and needs); or e) focused differentiation (market niches with unique preferences and needs).

5. Strategy Implementation and Management

In the last ten years, the balanced scorecard (BSC) has become one of the most effective management instruments for implementing and monitoring strategy execution as it helps to align strategy with expected performance and it stresses the importance of establishing financial goals for employees, functional areas, and business units. The BSC ensures that the strategy is translated into objectives, operational actions, and financial goals and focuses on four key dimensions: financial factors, employee learning and growth, customer satisfaction, and internal business processes.

Nasim Siddiqi - Personal Finance Management Tips

The increase in consumerism today has made the common man or the average earner to spend more than what he used to. This resulted in more people getting in to debts and credit card scams. Many people today are suffering from huge loans that they have taken from the banks and are finding it difficult to pay them back.

 Nasim Siddiqi is provide personal finance management and personal budgets is completely confusing, but they are not impossible for sure.

All this confusion leads them to the conclusion that finance management is almost impossible. This is not right. It is definitely true that the concept of personal finance management and personal budgets is completely confusing, but they are not impossible for sure.

Having sound personal budgeting strategies means you can settle your debts and mortgage loans early, pay regular bills comfortably and still have some money left to help you purchase things for your house or even plan for a small vacation.

This will lower your bill a little. Look at the lights you are using in the house, if you have forty or sixty watt bulbs you are using less energy than seventy five and one hundred watt bulbs in all the lamps in your home. Cut costs by starting with the electric bill. Manage your budget; manage your money by adding more to your monthly household budget.

Another cardinal mistake people commit when using credit cards is that they fail to pay them off when they are supposed to either because they genuinely forget, or because they simply do not have the cash to do so at that current period in time. Nasim Siddiqi says the truth of the matter is that if you do not pay you will end up paying more money in the long term and this is because of the interest payments that you will be hit with.

We can blame so many factors for this — the government, the corporates and most of all the banks who gave easy loans to people who could never afford them. But the truth is that it’s the job of banks to encourage us to take loans. That’s how their business. It’s only up to us to make complete sense of the situation.

You will have to make some data entry first of all to provide all the financial details. Then you can device your long term and short term financial requirements separately. After this, you provide the amount of savings and investments that you have made and are planning to make. Once all these information is gathered, the tool produces a very effective budget for us.

Now you have all your expenses listed out. From the last section, cut down all the expenses that you think is no necessary. You will surely find enough unwanted expenses here. Now reduce the expense that you think is less important. Now you have a renewed last section.

Nasim Siddiqi - ADVANTAGES OF OUTSOURCING FINANCE AND ACCOUNTING SERVICES

Do you want to reduce your company’s overhead costs, increase profits, and meet regulatory requirements at the same time? If yes, why not take advantage of our expertise in finance & accounting services and benefit from an increase in your return on investment? By using our expert accountants and book-keepers to handle your company’s financial documentation, you can focus on core competencies, target specific markets and increase profitability.

Nasim Siddiqi organization outsources accounting, tax preparation, bookkeeping or other finance and accounting services to Outsource2india, you can expect manifold benefits, such as the following:

Significant cost savings

By outsourcing, you can get access to proficient accountants, CPAs and CAs at a much lower cost, without compromising on quality. This is because of the difference in the cost of living between India and the US or UK. You can also save on infrastructure costs, employment taxes and other overhead costs. Instead of spending huge sums of money on finding and retaining a team of skilled accountants, all you have to do is outsource to O2I.

Enjoy secure book-keeping and accounting

You can outsource any non-core accounting function to us, without the fear of security, privacy or confidentiality issues. We can work on your server with remote access, so that your original files do not leave your office. We back up data on multiple secure servers and have foolproof disaster recovery systems across all our premises. You can rest assured about the confidentiality of your data, as we will sign Non-Disclosure agreements with you and our employees at the onset of the project.

Benefit from fast and scalable services

we make the most of the 12 hour time zone difference between India and the US, to get your accounting work completed while you sleep. While your enterprise concentrates on core business activities or value added services, we will get all your accounting work completed ahead of schedule and with zero errors. Our speedy services help put you ahead of your competitors. In case of emergencies, we can even process your financial data overnight. Since our finance and accounting services are scalable, you can easily scale your requirements up or down as necessary.

Meet all your requirements at one destination

Whether your business enterprise requires financial analysis, accounts payable, payroll processing, tax preparation or book-keeping, you can get access to any type of accounting service. As your partner, we can help you with critical financial work as well as seasonal workloads.

Take advantage of our domain expertise

The financial and accounting team includes skilled financial analysts, chartered accountants, statisticians and MBAs who are aware of the latest trends in the financial world.

Nasim Siddiqi team has gained extensive experience by meeting the unique requirements of diverse customers. With such domain expertise, you can be sure of cutting-edge accounting services.

Get access to Sarbanes-Oxley compliant services

 we are compliant with Sarbanes-Oxley and offer our customers total financial transparency. Your corporation, enterprise or CFA firm can achieve regulatory compliance and better financial reporting, as we adhere to the Sarbanes-Oxley Act. Our trained accountants understand the importance of the Sarbanes-Oxley regulatory framework and strive to provide quality services.

Nasim Siddiqi - Business Finance Training and Effective Business Solutions

Business finance training refers to programs that teach individuals how to handle various financial duties. Finance training is similar to finance tips in that both help business owners make better monetary decisions, but training programs offer a more detailed explanation of finance strategies. Training programs vary in price and can be used by the owners and employees of a business.

Nasim Siddiqi provide information on budgeting, preparing financial statements, managing cash flow, strategizing, forecasting, improving performance, and applying basic procedures and concepts to more effectively manage a business. These programs are recommended for new business owners to help them understand standard business practices. Once these basic methods are mastered, more specific financial training may be looked into.

Advanced business finance training delves more deeply into a certain financial procedure or concept, usually at a higher cost than basic programs. Advanced programs may teach business owners how to set up effective business models, make decisions based on quantitative analysis, manage and control accounts, practice due diligence, measure productivity, and strategize concerning mergers and acquisitions.

Taking part in any kind of business finance training gives a business owner the resources to make more intelligent business decisions that result in increased productivity and profits. Many different types of courses are available either online or at a specified location. Some programs may even offer the option to train at the business. Taking into consideration the needs and abilities of a business is the key to finding the best business finance training.

A business finance solution generally refers to methods of funding and maintaining the finances of a business. Most solutions involve ways of obtaining working capital, but others also offer ways of protecting and increasing that capital.

To obtain working capital, business owners look to finance solutions that offer funding by several different means. The most common means are loans and financing. Asset-based loans use a business’s assets, such as inventory and equipment, as collateral. A business may also opt for a property loan in order to acquire commercial space. Invoice financing, such as factoring, involves liquidating or selling a business’s accounts receivables in exchange for quick funding. Some businesses look to trade financing to supply their inventory. Nasim Siddiqi business will tell its financer the amount and cost of goods needed, and the financer will pay for the goods. The business then repays the amount financed over a specified period of time.

Most companies that provide business finance solutions also offer ways to protect and increase a business’s capital. Credit protection safeguards a business from daily risks, such as customers not paying on time, so that the business does not suffer incredible losses. This makes it much easier for the business to borrow money in the future, and it protects the balance sheet. A finance solution may also offer business insurance plans that increase the stability of a business. The most common types of business insurance are employee and public liability, car, property, and health insurance. These business finance solutions are designed to protect businesses against potential losses.

Nasim Siddiqi - Business Finance Consulting and Planning Tools

Various strategies for cost control will be helpful for most small businesses trying to cope with reduced sales volume. Nasim Siddiqi planning and consulting are likely to be among the most effective alternatives to help small business owners deal with recent distressed financial conditions.

The need for new business planning tools is rarely a high priority for a company that is not experiencing one or more substantial problems. However even for the most healthy business, contingency plans are advisable. The value of contingency planning for business financing is sharply illustrated by recent examples of banks suddenly eliminating commercial loan programs with little or no advance notice. The level of chaos that currently prevails throughout commercial banking unfortunately means that changes can continue to occur with little warning.

Business consulting will often not be thoroughly considered by small businesses because of the potential cost. As with any any other corporate service, costs cannot be ignored. This is particularly true in the current economic environment because very few businesses have substantial discretionary funds to cover new business expenses. Nevertheless it will sometimes be necessary to spend some money in order to either make money or reduce costs.

Nasim Siddiqi says the growing need for business consulting and management tools is supported by the disturbing number of changes which have occurred throughout the business world recently. To adequately address many of the complicated changes impacting small business loans and working capital financing, most business owners will not have enough technical skills or information. 

Many banks have imposed significant fee increases for their commercial finance services, and finding effective (and less costly) alternative business funding services will prove difficult for even the most skilled borrower. While there are some viable business finance options to replace traditional bank financing, these alternatives can seem confusing simply because they are new and different approaches.

Whenever there are complex problems, there are rarely simple solutions. The current difficulties for small business owners are a growing challenge. Similar circumstances have not been seen during the past fifty or more years for most businesses. As a result, even a highly experienced business owner is likely to be missing enough direct experience to make it through the maze of current changes and problems without at least some outside help.

It is likely that the most effective (and realistic) business planning tools will actually be a combination of several approaches undertaken with a coordinated effort. As noted above, complicated problems will usually require complex solutions. This will often translate to a series of business management and planning maneuvers that can take a number of months or even several years to complete. Small business owners should generally avoid any business consulting expert that portrays the problem-solving process as quick and easy.