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Strategic planning in the process of enterprise financial management. Strategic financial plan

Strategic financial planning allows you to set long-term goals taking into account indicators of previous periods and forecasts of future possible events. Arbor Prime specialists will tell you how this is implemented in practice.

Objectives of strategic financial planning

For any type of business, regardless of the field of activity, the adopted development concept must be justified in terms of potential profitability and possible risks. If we are talking about strategic planning of core financial activities, it is also important to determine the required amount of financial resources to ensure and implement the adopted plan. To do this, the company’s financial statements for the past period are analyzed, which are subsequently compared with forecasts for future stages.

Thus, the main tactical tasks of strategic financial and investment planning include:

determining the prospects of the company’s activities in the format of quantitative and qualitative indicators (expenses, profits);
search for additional and unused reserves, through which an increase in overall profitability can be achieved;
providing all operational processes with sufficient sources of financing; rationalization of the use of all funds of the organization.

At the same time, from the practical side, planning the main financial strategy performs the following functions:

respecting the interests of interacting parties (investors, regulatory government agencies, creditors);
control of the global financial condition of the company.

Important. Financial planning and a strategic plan are drawn up on the basis of forecasts that determine changes in the state of the entire facility complex, depending on the most likely events. At the same time, the forecasts themselves are not the purpose of planning and the accepted indicators may differ.

The practical side of the strategy

The basis of strategic calculation and financial planning at an enterprise is the task of studying and assessing the expected state over a long period (from 3 to 5 years). To do this, the goal that needs to be achieved is determined, the external environment and prospects of the enterprise are assessed, a plan is drawn up and the feasibility of its application is analyzed. With a competent approach, such a plan initially includes sufficient support for the company’s production and economic activities, as well as the achievement of a certain level of profitability and possible losses.

Features of drawing up a strategic plan

Building a strategic financial plan begins with identifying the prerequisites and analyzing the current state of the market, finances and the potential of the enterprise as a whole. In this case, three types of documents are drawn up:

profit and loss forecast for the future period;
forecast of the enterprise's balance sheet, demonstrating the balance of its position in the current market;
cash flow forecast for all types of activities.

Based on the forecasts, several types of plans are formed, providing for various outcome options:

aggressive development with large capital investments;
systematic development with a gradual increase in volumes;
systematic reduction with a gradual decrease in volumes;
liquidation of the enterprise.

For each of them, a different analysis of strategic financial long-term planning is carried out in three categories of forecasts: optimistic, most likely and pessimistic. This allows you to analyze all possible versions of events in the future. Taking them into account, strategic financial planning of a commercial organization makes it possible to provide effective measures aimed at reducing losses and maximizing profits.

Important. The plan provides aggregated indicators of the current and potential state of the enterprise in its main areas of activity.

As a result of the calculations and forecasting performed, the basic provisions for further activities are formed:

rational enterprise investment program;
policy of attracting new sources of funds to the company;
target ratio of possible dividend payments.

Implementation and problems of strategic financial planning

To develop a strategy in an organization, mathematical (calculation) and statistical (based on previous indicators) forecasting methods, as well as situational analysis, can be used. All three methods have a certain degree of error in real market dynamics. Therefore, a comprehensive assessment is recommended.

The implementation of results in practice is carried out by drawing up functional and operational plans, which contain: rules and regulations adopted for the application of the methodology, integrated programs and procedures, restrictions and recommendations for action in certain situations. This allows you to optimize the activities of the enterprise and control the state of cash resources in the short term, without deviating from the overall development plan.

In fact, strategic planning for the distribution of finances in an enterprise is a certain set of actions to achieve the maximum possible effect from conducting activities. By neglecting it, many organizations deviate from their main goals, which leads to a destabilization of the situation and a slowdown in the pace of development. That is why this stage should be your main task in developing an effective strategy.

Strategic planning. Goal tree

STRATEGIC FINANCIAL PLANNING

Lecture course

A comprehensive enterprise management mechanism.

Enterprise management concept based on strategic planning arose in the late 1960s. due to the growth of crisis phenomena and increased international competition. At a time when the decisive factor for the success of an organization’s development becomes the strengthening of uncertainty, long-term planning based on extrapolation does not work. Therefore, all attention began to be paid to formalized methods of analysis. Analysis of the internal capabilities of the organization; external competitive forces and the search for external opportunities, taking into account the specifics of the organization, were built using tools such as scenario building, experience curve, portfolio concept, and so on.

In our country, the strategic direction received some development in the 1970s. At that time, naturally, we were not talking about the competitive advantages of the enterprise, and strategy development was reduced to functional strategies. They tried to adapt the mechanism of strategic management, aimed largely at the external environment of the enterprise, to the problems of its internal improvement. Examples of the use of strategic management tools in our country are the program-target approach and network planning methods. Program-target planning is based on a “tree of goals”: a goal for the development of the system is established, various options for achieving it are developed, the most effective ones are selected, and target programs are formed on their basis. Methods similar to program-target planning were used during the development of the GOELRO plan.

The words “strategic factor”, “strategic decision”, “strategically important” have in the context of enterprise management the meaning of “essentially important for obtaining results”, “pivotal, fateful decision” and so on. Strategic decisions, in contrast to tactical ones, are primarily characterized by the need to choose from a number of mutually exclusive (alternative) options for action; large scale of changes when moving from one alternative to another; the need to compare and comprehensively evaluate various aspects, factors and criteria, the need to make a fundamental choice, etc. At the same time, if the main, strategic choice is made, then all that remains is to concretize, detail the work program and monitor its implementation, so as to achieve the intended result. These are also necessary tasks, but not so large-scale and do not require fundamental solutions. Such tasks are called tactical, current; they are relatively easily solved in everyday practice.

When implementing strategic management, the main emphasis is often placed on strategic planning. However, a strategic plan in itself does not guarantee its successful implementation. In fact, the most important component of strategic management is the implementation of such a strategic plan. An organization, in principle, will not be able to implement strategic management if it has a good strategic planning subsystem, but does not have the prerequisites or capabilities for implementing this strategy. Thus, The effectiveness of a company depends not so much on developing a strategy, but on ensuring its implementation.

Many years of experience in organizing strategic management in Western companies have shown that an indispensable condition for turning it into an effective instrument of corporate governance is its integration with main management subsystems– budgeting, operational planning, information support, management remuneration. What we are talking about is actually turning strategic management into the core tool of internal control, to which other control systems, designed in such a way as to facilitate the implementation of strategy, are adjusted and adapted. The priority of strategic management is explained by the fact that this is the only one of all control mechanisms that is focused primarily on external objective business conditions. Strategic management is not tailored to the desired result, but is itself a tool for developing goals.

Thus, the central place in the strategic plan of the enterprise is occupied by goals and criteria for their achievement. This is an essential element of strategic management, providing the ability to manage based on results, motivate personnel, compare and evaluate decision options, and ultimately concentrate forces on priority areas of activity that ensure success; monitoring the progress of work based on the results.

Thus, a comprehensive enterprise management mechanism, in addition to the subsystems of strategic planning and budgeting, should include operational plan development unit, defining a set of activities to achieve strategic goals.

In the process of implementing operational plans, as a result of the influence of external environmental factors and inaccurate and sometimes incorrect behavior of performers (internal environmental factors), deviations from the planned inevitably occur. These deviations lead to the need to monitor the current state of the company and carry out management in such a way that tactical and strategic plans would be implemented. Information support for these processes is carried out using management reporting systems, which is a feedback channel.

In general, the complex management mechanism under consideration with the participation of the subsystems of strategic planning, operational planning, budgeting, management reporting and forecasting forms a closed control loop and can be represented in the form of a diagram shown in Figure 1.

Figure 1 – Integrated enterprise management mechanism

In this system, the formulation of goals and the development of a strategic plan (block 2) occurs as a result of some incentive (block 1), the desire to change the situation in the right direction based on existing (accumulated) management experience. To formulate goals and develop a strategic plan, data is collected on the internal and external environment of the company, a forecast of the behavior of the environment and operations is carried out (block 3). The strategic management subsystem, as shown above, is designed to ensure a targeted nature in the activities of the enterprise. Strategic planning can take a significant amount of time and can therefore be carried out with greater care and consideration of many alternatives.

Next, a search is made for alternative strategies, methods of action (specific activities and initiatives, their financial parameters) to achieve the set goals (block 4); criteria for choosing alternative strategies are clarified and established (block 5). In the process of searching for alternatives, both operational plans and budgets are simultaneously developed - this makes it possible to subsequently evaluate options against a full set of criteria, both financial and non-financial.

Operating plans and budgets in this system serve as a kind of “bridge” between strategy and tactics, the primary mechanism for translating strategic goals into current actions. They focus on the same goals and key success factors that are defined in the enterprise's strategic plan. Thus, the goal-setting process is the primary mechanism for linking strategy to operational plans and budgets, because without a clear understanding of the cause-and-effect relationships between tactics and goals, it is difficult to assert that actions today will provide the company's desired results in the future.

A decision (block 6) is always a choice. In this case, this is a choice from a variety of possible alternative strategies in accordance with an accepted criterion, or what is the same, a choice of an optimal plan from a variety of alternative plans (operational and financial) aimed at achieving the same goal.

The third stage of management is the execution of operational plans (block 7), which means implementing activities and obtaining the desired results. At the same time, uncertain circumstances (disturbances) violate the accepted line of behavior (adopted plans). This leads to the formulation of a number of decision-making tasks aimed at ensuring that the set goals are achieved.

Note that solving a sequence of tasks in the process of implementing plans aimed at achieving goals is the essence of the so-called operational management.

The fourth and fifth stages of the management cycle: assessing the result, communicating management reports (block 8) and recommendations for the future (block 9) to management.

It is obvious that the company’s ability to achieve its goals depends on the degree of mutual integration and consistency of all elements of the considered integrated management mechanism. In this regard, the main reserves for increasing the effectiveness of the strategic planning system lie in its integration with corporate budgeting, operational planning, management reporting and forecasting into an integrated management mechanism, which is a closed management loop.

Strategic gaps. Balanced Scorecard.

Most companies (not only Russian ones) experience serious difficulties in implementing the strategies they have developed. According to a Harvard Business School study among Global 1000 companies, the following main reasons for failures in strategy implementation can be identified:

1) incorrect implementation of the company’s strategic goals.

97% of cases of failed strategic plans and goals are due to their incorrect implementation;

2) personnel do not know or do not connect the company’s strategic goals with their activities.

93% of personnel do not connect the results of their work with the strategic goals of the company;

3) the distribution of resources in plans and budgets has no connection with the implementation of the company’s strategic goals.

The main budget of 73% of companies is related to ensuring daily activities, and not to the goals of the enterprise;

4) activity control does not cover all indicators important for running a business.

Only 15% of performance indicators used by companies are related to the need to achieve strategic goals;

5) employee motivation is aimed at ensuring current financial performance.

Only 24% of managers are motivated in their activities to achieve the company’s strategic goals;

Let us note one more feature of the balanced scorecard system: the performance criteria included in it are of a quantitatively measurable nature. This allows for the widespread use of quantitative methods. In particular, we can consider these criteria as coordinates in which we can use trajectory approach: a set of values of strategic map indicators characterizing the company’s performance determines its state at any point in time (a point in the space of indicators). Any development option for a company can be described by the totality of its statesat different times(for example, on a monthly/quarterly basis), i.e., a set of points in the space of indicators of strategic maps (Figure 4).

If at the goal-setting stage the desired development trajectory is chosen, then when developing tactical plans (operational plans and budgets), taking into account restrictions, it plays the role of a target setting: to move as far as possible along the trajectory to its end point. In other words, operational plans and budgets are designed to ensure the achievement of specified indicator values, and if this is not possible, then to approach them, maintaining the proportions of development planned by the trajectory. In the first case, the goal is achieved, in the latter, the resulting solution needs to be analyzed and, possibly, revised, and the target setting (trajectory) clarified.

Figure 4 – Trajectory description of targets

According to opinion, strategic and tactical planning differ from each other in the type of targets used:

Strategic planning involves goal setting organization (a goal is a desired result of an activity, achievable within a certain time interval);

Tactical planning involves formation of tasks necessary to achieve goals(a task is a desired result of an activity, achievable within a planned time interval and characterized by a set of quantitative data or parameters of this result). It is obvious that tasks must be defined for each minimum planning period, which will provide target orientation for all types of tactical plans.

Thus, a goal becomes a task if the deadline for its achievement is specified (set, accepted) and the quantitative characteristics of the desired result are specified.

In general, the goal acts as a more general category than the task; therefore, we can assume that the goal is achieved as a result of solving a number of tasks and, in connection with this, the tasks can be ordered in relation to the goals.

The trajectory approach to describing strategy, implemented in the balanced scorecard, allows you to link the goals and objectives of the organization in separate time periods, eliminating inconsistencies between the strategic and tactical levels of management.

In management theory, the allocation of strategic and operational levels corresponds to a two-stage optimization scheme: at the strategic level, a program trajectory is determined that ensures the achievement of specified goals (subject to the absence of external disturbances) with minimal expenditure of resources; and operational management is designed to ensure, with given resources, the highest possible accuracy in achieving the goal.

In order for the developed company development strategy to form the basis of operational management, it must be documented in strategic business plan. The strategic business planning procedure includes the development and periodic (for example, quarterly) updating of a company’s business development plan, which adjusts the option for implementing the chosen strategy. In this case, the business plan plays the role of a key tool that justifies costs (investments) for development projects, the results of which appear in the long term, and makes it possible to assess changes in the timing of each investment project and its results in terms of achieving set goals while reducing costs.

Strategic planning is the process of choosing an organization's long-term goals and the best way to achieve them. Strategic financial planning determines the most important indicators, proportions and rates of expanded reproduction; this is the main form of realizing the goals of the enterprise. The need for strategic planning of any business entity consists in choosing the goals of the organization in such a way that an increase in the value of the enterprise is achieved, profits are maximized and its financial structure is optimized.

In modern conditions, strategic financial planning covers a period from one to three years. Strategic planning includes developing a financial strategy for an enterprise and forecasting financial performance.

The development of financial strategy is a special area of financial planning, since, being an integral part of the overall economic development strategy, it must be consistent with the goals and directions formulated by the overall strategy. In turn, financial strategy influences the overall strategy of the enterprise. A change in the situation on the financial market entails adjustments to the financial and then the general development strategy of the business entity. Financial strategy involves determining long-term financial goals and choosing the most effective ways to achieve them.

Based on the financial strategy, a financial policy is determined, which serves as a general guideline when making all financial decisions of the organization in specific areas of activity: tax, depreciation, dividend, emission, etc. The adopted financial policy determines all management decisions. For example, the policy of financing the creation of a new product through the use of equity capital should be based on reinvesting all net profit received only in this development.

The basis of strategic planning is forecasting, which embodies the company's strategy in the market. Forecasting consists of studying the possible financial condition of an enterprise over the long term. Unlike planning, forecasting tasks do not include the implementation of developed forecasts in practice. The basis of forecasting is the generalization and analysis of available information, followed by modeling of possible options for the development of situations and financial indicators.

Strategic financial planning includes the development of three main forecast financial documents:

* profit and loss statement;
* cash flows;
* balance sheet.

To draw up forecast financial documents, it is important to correctly determine the volume of future sales (volume of products sold). This is necessary for organizing the production process, efficient distribution of funds, and inventory control. After drawing up this forecast, the company’s financing strategy is determined. Its essence lies in identifying sources of long-term financing, forming the structure and costs of capital, and choosing ways to increase long-term capital.

Long-term (strategic) financial planning involves the development of a financial strategy and financial policy of the corporation.

The concept of "strategy" (Greek. strategy means the art of warfare) became a management term in the 1950s. Today, strategy refers to a detailed, comprehensive, comprehensive plan designed to ensure that an organization's mission is achieved and its goals are achieved.

Financial strategy(FS) is a long-term financial program for the development of a corporation. It allows the corporation's financial service to optimize financial resources. In Fig. Figure 9.4 shows the place of financial strategy in the strategic planning of a corporation. It is classified as a functional strategy that takes into account the main elements of the basic strategy.

Rice. 9.4.

The corporation's financial strategy includes the following.

1. Time horizon. It depends on the duration of the period adopted to form the overall development strategy of the corporation. Must take into account the predictability of economic development and market conditions, the industry of the corporation and the stage of the life cycle.
2. Study of external environmental factors and market conditions. External environmental factors influencing the activities of the corporation are presented in Fig. 9.5. The situation in the industry, product, financial and other market segments and the factors that determine it are analyzed, and a forecast of the situation in the context of individual market segments related to upcoming financial activities is developed.
3. Setting strategic goals and objectives for the financial activities of the corporation. The purpose of the corporation is to achieve sustainable development. By formulating objectives, its specification is achieved and the features of financial development in the future are taken into account. The set objectives must be achievable and ensure a sufficient amount of financial resources and high return on capital at an acceptable level of financial risks.

Rice. 9.5.

4. Formation of alternatives. From the variety of proposed goals and objectives, the most acceptable ones are selected based on the criterion of profitability and risk ratio, taking into account future prospects.
5. Development of a system of measures to ensure the implementation of the FS. Specification of the strategy by period involves the distribution of tasks in accordance with the period of implementation and their coordination with the general strategy of the corporation and predicted changes in market conditions. The development of measures for periods of strategy implementation involves the development of a financial policy, the formation of responsibility centers, the determination of rights, responsibilities, and responsibility of managers for results. The factors shown in Fig. 1 influence the implementation of the strategy. 9.6.
6. Assessment of the feasibility of the FS assumes the presence of:
- the corporation's capabilities in generating the required amount of financial resources;
- qualified top management, their commitment to goals, interest in implementing the strategy;
- in the financial market for tools for forming an effective investment portfolio;

Rice. 9.6.

organizational and technical capabilities;
appropriate level of information and technological support for financial management.
7. Revision of the FS depending on changes in internal and external environmental factors.

The implementation of the corporation's financial strategy ensures:

optimization of the corporation's financing sources and its financial stability;
interests of owners and investors in terms of increasing market value;
strengthening the image in the external environment.

Financial policy is a form of implementation of the corporation's financial strategy. (Discussed in detail in Chapter 6.) Its formation is multi-level. For example, as part of an asset management policy, a policy for managing current and non-current assets can be developed. In turn, the policy for managing current assets may include, as independent blocks, the policy for managing their individual types, etc.

Strategic financial planning involves developing a forecast of income and expenses, cash flow and balance sheet.

Forecast of income and expenses reflects the operating activities of the corporation. The purpose of the compilation is to determine the results of activities in the process of implementing a business idea. It is based on the assortment program, cost estimates for the production and sale of goods, the amount of depreciation charges and the budget for labor costs. It reflects the profit received after taxes. In its content, it corresponds to Form 2 of the financial statements discussed in Chapter. 5. When compiling it, only income and expenses for the main activity are forecast; other income and expenses are difficult to predict. This forecast is compiled for the entire planning horizon. The first year of project implementation in this document is reflected by month, the second and third - by quarter, and all subsequent years - by year.

The next one is compiled cash flow forecast. It includes data on estimated income and expenses from the operating, investing and financing activities of the corporation, i.e. shows the formation and outflow of cash, as well as their balance (Table 9.2). The total value reflects the balance of cash flow. It reflects the actual receipt of funds from relevant sources.

Table 9.2

Sections of the forecast cash flow statement

Activities
Current (main, operational)	Revenue from the sale of products (works, services), resale of goods received through barter exchange. Proceeds from repayment of accounts receivable. Advances received from buyers and customers	Payment for purchased goods, works, services and accounts payable. Issuance of advances for the purchase of goods, works, services. Salary. Payment of dividends, interest. Calculations for taxes and fees
Investment	Proceeds from the sale of non-current assets, sale of securities and other financial investments. Proceeds from repayments of loans provided to other organizations. Receiving dividends and interest	Payment for acquired non-current assets and financial investments. Issuing advances for the purchase of non-current assets and financial investments. Providing loans to other organizations. Contributions to the authorized (share) capitals of organizations
Financial	Proceeds from the issue of equity securities, loans and credits provided by other organizations	Repayment of loans, credits, finance lease obligations

With proper planning, a cash flow forecast allows you to estimate future inflows and outflows for a certain period, maintain balances at an optimal level, and avoid excesses and deficits.

When forecasting cash flows, two methods are used.

1. Direct method is based on the reflection of funds received from customers and paid to suppliers through a current account, cash desk or cash equivalents. It can be used to monitor the profit generation process and draw conclusions regarding the adequacy of funds to pay current obligations. In the long term, it makes it possible to assess the liquidity of a corporation, and also shows the extent to which investment and financial needs are covered by available financial resources.

The disadvantage of the method is that it does not reveal the relationship between the obtained financial result and changes in the absolute amount of funds of the corporation.

2. Indirect method provides for the construction of cash flows based on financial reporting data: balance sheet, income statement. Used to build cash flows for long-term projects. Its disadvantages include insufficient accuracy (especially for projects with a complex calculation structure) and inconvenience for modeling situations and scenario analysis.

Cash flow from investing activities is calculated based on the required volume of investment. To assess them, the need for capital investments is studied according to design estimates and non-current assets, as well as sources of financing.

Cash flow from financing activities is defined as the difference between the amount of proceeds from the sale of own shares, loans and borrowings received, and the amount of interest paid on funds provided, repayment of principal, and payment of dividends.

The result of summing the flows from core, investing and financing activities is net cash flow.

It allows you to determine the growth rate of a corporation's market value.

To assess the quality of net cash flow, the net cash flow adequacy ratio (NCFA) is used:

where NPV is net cash flow; PZTMC – increase in inventory inventories; OD – the amount of the principal debt; DU – dividends and interest payable.

With KDCDP = 1, the cash inflow is equal to the outflow, with KDCDP< 1 приток недостаточен, при КДЧДП >1 is redundant.

The assessment of a corporation's financial position is carried out by calculating liquid cash flow (change in net credit position) (LCF), which is an indicator of the deficit or excess cash balance.

where DC are long-term loans; KK – short-term loans; DS – cash; N and K – the beginning and end of the period.

It characterizes the absolute amount of cash received from the corporation’s own activities (main and investment), shows the impact of loans and credits on the efficiency of the corporation in terms of generating cash flow.

The result of the decision-making depends on the accuracy and reliability of the forecast of the cash flow statement, so the construction of cash flows is carried out on the basis of verified data.

A mandatory document developed as part of the financial plan is forecast balance. It allows the financial manager to assess what the financial situation will look like after some time (a year, two, etc.). The forecast balance allows you to:

identify the adverse financial consequences of decisions made;
evaluate financial ratios taking into account market requirements;
identify financial sources and obligations;
check the accuracy of the calculations.

There are several methods for drawing up a forecast balance.

1. Method of proportional dependence of balance sheet items on sales volume (percentage of sales method) involves changing balance sheet items in proportion to sales volume. It is the simplest, but its predictions are not always accurate. The procedure for drawing up a forecast balance is as follows:
1) the increase in sales volume in the forecast period is determined;
2) items are identified that change in proportion to sales volume and increase by the increase in sales revenue. Long-term liabilities and equity capital are recognized unchanged;
3) the resulting values of asset and liability items are summed up and checked for compliance with balance sheet equality;
4) identify the need to adjust the balance sheet, for which they determine the need for additional external financing as the difference between the need for an increase in assets, liabilities and retained earnings. The resulting value is accepted to adjust the balance and bring it to balance sheet compliance.
2. Methods using mathematical apparatus.
1) simple linear regression method– reveals the type of relationship between sales volume and each balance sheet indicator. On its basis, a forecast of the values of these indicators is made;
2) curvilinear dependence method– assumes that there are curvilinear relationships between indicators and sales volume, on the basis of which a balance is built;
3) multiple dependency method allows you to take into account the influence of not only sales volume, but also other factors on balance sheet items.

The use of this group of methods is carried out in the presence of specialized software products.

3. Specialized methods are based on the development of separate forecast models for each variable. These include designing a balance sheet based on a forecast of the size of each item. This is how the amounts for each of the assets, accounts payable, and profit are predicted, additional sources of financing are determined when a deficit is identified, or calculations related to investing funds when there is an excess of resources are carried out.

The quality of the developed forecast documents depends on the reliability of the forecasts of the main indicators of economic activity, market conditions, the state of monetary circulation and the ruble exchange rate. Therefore, in the current conditions, both an underestimation and an overestimation of the need for financial resources is possible, and therefore it is necessary to provide additional financial reserves.

Example 9.2

We will develop a financial plan for the project for the opening of the trading pavilion of the "XXX" network.

Objective of the project: obtaining a loan for the purchase of modern trade and technological equipment to create a corporate style and image.

Brief summary of the project: opening of a new pavilion. This requires the purchase and installation of commercial and technological equipment, mainly refrigeration.

Key project indicators:

total investment – i million rubles;
bank loan – 600 thousand rubles.

Providing resources: goods, energy supply, personnel, communications, retail space - 100%.

Readiness stage: documentation development stage.

A contract was signed with Volgotorgservis LLC for the supply of trade and technological equipment.

Source of loan repayment– funds from the sale of goods.

Repayment of borrowed funds is provided for within two years after the installation of equipment is completed and the outlet begins operation.

Loan repayment guarantees: surety

Description of the situation and task for solution

The results of a study in the region showed that an average of 120 kg of meat products per day can be sold in the pavilion. Therefore, 240 kg of meat products will be purchased based on the delivery of products every two days.

The range of products offered should be designed for different consumer groups. In this regard, the expected range and sales volumes are given in Table. 9.3.

The staff is expected to involve three people: a store director and two salespeople. The salary of the seller will be 20 thousand rubles, the director - 40 thousand rubles. monthly.

To implement the project, it is planned to carry out the stages given in table. 9.4.

Table 9.3

Planned product range and sales volumes

Table 9.4

Schedule of implementation of main activities and their cost

Project stage	Cost, thousand rubles.	Duration	Payment period
Paperwork		1st month (3 days)
Maintenance		1st month (15 days)
Purchase and installation of equipment		1st month (15 days)
		2nd month (14 days)
Coordination with government agencies		1st month (14 days)
Certification		1st month (14 days)
Purchase of meat products		1st month (2 days)

In the process of carrying out activities, it is planned to apply a general taxation system. The financial plan was calculated under the following assumptions (Table 9.5).

Table 9.5

Background information on the project

	Indicators	Values
general information
	Project duration, year
	Bank loan, rub.
	Cost of own captain, %
	Cost of borrowed capital, %
	Annual growth rate of income and expenses, %
	Income payout ratio on invested capital, %
Project costs, per month
	Rent of premises, rub.
	Electricity, rub.
	Water supply, sewerage, garbage removal, rub.
	Transport costs, rub.
Taxes
	Income tax, %
	Insurance premiums, %

Solution.

1. Let's calculate the sales plan, provided that the trade markup is 45% (Table 9.6). Initial information for calculations is presented in table. 9.3. During the calculation process, it is necessary to take into account that VAT on food products is 10%. The exception is delicacies, which are taxed at a rate of 18%. Every day it is planned to purchase products worth 22,835 rubles. excluding VAT, and sell for 33,110.75 rubles.
2. Let's calculate labor costs per month. From the table 9.7 shows that these costs will amount to 104 thousand rubles.
3. Let's determine the total amount of costs included in the cost (Table 9.8). We will carry out calculations on the condition that depreciation on purchased equipment will be accrued in a straight-line manner over the 5 years of the project’s existence.

In the first year, in addition to these costs, it is also necessary to write off expenses for current repairs of premises in the amount of 420 thousand rubles. Thus, the cost for the first year will be 10,575 thousand rubles.

In the future, according to the conditions of the example, expenses and income will grow by 4% per year, excluding the amount of depreciation charges.

4. Commercial expenses for the project are expected to be 150 thousand rubles, which are aimed at advertising. They will be written off in the first year.
5. Management costs include the salary of the store director and the costs of paperwork, certification, and approval by government agencies. In the first year they will amount to 671 thousand rubles. (52 12 + 12 + 25 + 10). From the second year, only the director's salary will fall into this category, which will increase by 4%.
6. Let’s draw up a debt service schedule (Table 9.9). In doing so, we will be guided by the following considerations:
- The loan is repaid in equal installments at the end of each year;
- Interest on the loan is paid to the bank when the principal portion of the debt is repaid.

Table 9.6

Sales plan, rub.

Name	Purchase price per kg, rub.	Sales volume per day, kg	Products purchased per day excluding VAT, rub.	Revenue per day excluding VAT, rub	Products purchased per day including VAT, rub.	Revenue per day including VAT, rub.
Premium boiled sausage – “Milk”
Boiled sausage, 1st grade – “Tea”
Semi-smoked – “Krakovskaya”
Semi-smoked – “Armavir”
Premium sausages
1st grade sausages
Deli meats – brisket
Deli meats – neck

Table 9.7

Labor cost plan, thousand rubles.

Table 9.8

Costs included in the cost price, rub.

	Cost item	Amount of costs
	Cost item
	Renting premises
	Electricity
	Water supply, sewerage, garbage removal
	Salesperson labor costs
	Insurance premiums
	Costs for purchasing products	22835 30 = 685 050
	Fare
	Equipment depreciation	300 000/(5 12) = 5000

Table 9.9

Loan repayment schedule

7. We will form a forecast of financial results. To do this, fill out the table. 9.10. To simplify the calculations, we will analyze the data at the end of the corresponding year. The detailed algorithm is given in Chapter. 5.

Table 9.10

Forecast of financial results for the project




Cost of sales
Gross profit (loss)
Business expenses
Administrative expenses
Profit (loss) from sales
Percentage to be paid
Profit (loss) before tax
Current income tax
Net income (loss)

8. Let’s make a cash flow forecast (Table 9.11). To do this, let’s transfer the revenue for each year to the income column. In the “Payments” column we will reflect the costs for the purchase of products and services, wages for sellers and directors, and corporate income tax. This line does not reflect the amount of annual depreciation charges and interest on the loan taken for the purchase of equipment.

The organization does not expect to receive income from investment activities. Payments for investment activities in this case will be associated with the acquisition of property in the amount of 300 thousand rubles. and payment of interest on the loan. In practice, the amount of interest reflected in this section should be divided between payments for main and investment activities, since the bank loan exceeds the amount of purchased equipment. To simplify the calculations, we will reflect it in full in this section.

Financial activities assume revenues in the amount of 1 million rubles, of which 600 thousand rubles. are a long-term loan. Payments for financing activities are associated with the repayment of the loan within two years and the payment of income to the owners of the capital.

9. In order to make sure that the organization has all the necessary resources to implement the project, we will draw up a forecast balance (Table 9.12). This step is the most time-consuming. The calculation of forecast balance sheet items is carried out as follows.
The value of the article “Authorized capital” is defined as the difference between the total investment in the project and the amount of the bank loan.
The value of the item “Retained earnings” is defined as the sum of the profit of the reporting period in the previous year and the retained earnings of the same year.
The amount of the item “Borrowed funds” is formed from a bank loan. Data on it is transferred from the loan repayment schedule.
Since it is intended to buy meat products in cash, there are no accounts payable and receivable, and there is no expectation of delay in settlements with other creditors (for taxes).
The total value of project balance sheet liabilities is calculated by summing all calculated components.
The amount of the item “Fixed assets” is formed as the sum of the costs for the purchase of equipment, its delivery and installation. Moreover, each subsequent year their value becomes less by the amount of depreciation charges.
The last thing to be assessed is cash. Since the values of total assets and liabilities coincide, among active items only the value of cash remains unknown. It is calculated as the difference between the balance sheet currency and the sum of the known asset accounts.

Forecast cash flow statement

Table 9.11



Operating activities
Receipts

Balance of cash flows from current operations
Investment activities
Receipts
Payments – total
including:
in connection with the acquisition, creation, modernization, reconstruction and preparation for use of non-current assets
interest on debt obligations included in the cost of an investment asset
Balance of cash flows from investment operations
Financial activities
Receipts – total
including:
obtaining credits and loans
cash deposits of owners (participants)
Payments – total
including:
payment of dividends and other payments for the distribution of profits in favor of owners (participants)
in connection with the repayment (redemption) of bills and other debt securities, repayment of loans and borrowings
Balance of cash flows from financial transactions
Balance of cash flows for the reporting period

Table 9.12

Forecast balance




NON-NEGOTIABLE
Fixed assets

CURRENT ASSETS

Accounts receivable
Cash and cash equivalents
Value added tax on purchased assets

TOTAL ASSET

CAPITAL AND RESERVES
Authorized capital
retained earnings

LONG TERM DUTIES
Borrowed funds

SHORT-TERM LIABILITIES
Accounts payable
Interest on the loan
Tax debt

TOTAL LIABILITY

Order of the Ministry of Economy of the Russian Federation "On approval of methodological recommendations for the reform of enterprises (organizations)" dated October 1, 1997 No. 118

Strategic planning- is the process of choosing an organization's long-term goals and the best way to achieve them. Strategic financial planning determines the most important indicators, proportions and rates of expanded reproduction, and is the main form of achieving the organization’s goals.

The need for strategic planning of any business entity is to select the goals of the organization in such a way that an increase in its value is achieved, profits are maximized and the capital structure is optimized. With the help of strategic financial planning you can achieve:

1) optimal distribution and use of production, financial and labor resources;

2) the organization achieves a dominant position in the market;

3) adaptation to the external market environment by analyzing the strengths and weaknesses of the organization, using its advantages, and assessing potential risks.

Strategic financial planning in modern conditions covers a period of time from one to three years. However, such a time interval is conditional, since it depends on economic stability and the ability to predict the volume of financial resources and the directions of their use. During strategic planning, an active search for alternative options is carried out, the best one is selected and the development strategy of the organization is built on this basis.

The elements of strategic planning are the financial strategy of the organization and the forecast of its financial activities, the choice of goals and mission, areas of activity, business targets and, on this basis, the development of a corporate strategy.

Financial strategy involves determining long-term goals of financial activity and choosing the most effective ways to achieve them, which influences the overall strategy of the organization. A change in the situation on the financial market entails adjustments to the financial and then the general development strategy of the business entity.

The goals of the financial strategy must be subordinated to the overall development strategy of the organization and aimed at maximizing its market value.

An important point when developing a financial strategy is determining the period for its implementation, which is influenced by a number of factors:

> dynamics of macroeconomic processes;

> trends in the development of the domestic financial market (taking into account dependence on global financial markets);

> industry affiliation of the organization and specifics of production activities.

Based on the financial strategy, it is determined financial policy - a general guideline when making all financial decisions of an organization in specific areas of activity: investment, tax, depreciation, dividend, issue, etc. For example, the policy of financing the creation of a new product through the use of equity capital should be based on reinvesting all net profit received in this development.

Tactical decisions are specific in nature and designed to implement strategic plans in the short term. Taking into account risk factors is of great importance when forming a financial strategy.

The basis of strategic planning is forecasting, which is the embodiment of the company's strategy in the market. Forecasting consists of assessing the possible financial condition of an organization for the long term.

It involves the development of alternative financial indicators and parameters, the use of which allows you to choose the optimal option for the development of the financial position of the organization.

During the forecasting process, available information is summarized and analyzed, possible scenarios are modeled, and financial indicators are calculated for the selected models.

Unlike planning, the task of forecasting is not the implementation of the developed forecasts in practice, since they represent only a prediction of possible changes. Forecasting methods and methods must be dynamic enough to take these changes into account in a timely manner.

The list of forecast indicators differs significantly from the indicators of the future plan. In some ways, the forecast may seem less detailed than calculations of planned targets, but in others it will be worked out in more detail.

The starting point of forecasting is the recognition of the fact of stability of changes in the main indicators of the activity of an economic entity from one period to another. This position is all the more true since the information base for forecasts is the accounting and statistical reporting of the organization.

One of the most important elements of strategic planning is the selection of organizational goals. This process begins with choosing a mission. The main purpose of an organization, reflecting the reason for its existence, is defined as mission of the organization. It determines the rules of the organization’s activities, taking into account the external operating conditions and allows us to highlight the main issues: what, how and for whom the organization produces, what technologies are used in this process. If an organization truly implements its mission, then it will certainly generate the profits necessary to ensure its sustainable growth.

Based on the formulated mission, organizations determine their goals. Strategic goal is expressed and implemented in the strategic plan and is closely linked to the financial objectives of the organization. In strategic planning, there are three stages: growth, steady state, maturity (harvest), at which financial goals differ significantly.

Height - This is the stage that an organization goes through at the very beginning of its life cycle, and the financial goal at this stage is to increase income and sales volumes in the target segment.

On the stage steady state Most organizations set themselves financial goals related to ensuring profit (income from core activities, gross profit).

Stage maturity is typical for organizations that are at that stage of their development when it is time to “harvest” the profits received from investments at previous stages. The main goal is to achieve maximum return on invested funds. The financial objective at this stage will be to increase cash flow from core activities and reduce working capital requirements.

Another element of strategic planning is identifying areas of activity organization, allowing you to determine the priority of individual types of its activities.

Business targets - the next element of strategic planning. They represent a set of criteria towards which the work of financial managers will be aimed: market share, profitability, profit growth, economic added value.

Corporate strategy as the final element of strategic planning, it is aimed at achieving the goals of the organization and is an expression of general approaches to business, which will subsequently be reflected in financial plans.

When strategic planning, it is important to use the balanced scorecard (BSC) in a timely manner. At the same time, it is also important to correctly transform the organization’s mission into specific objectives and BSC indicators.

After making this forecast, determine organization's financing strategy. Its essence is as follows:

> in identifying sources of long-term financing;

> in shaping the structure and costs of capital;

> in choosing ways to increase long-term capital.

For financing purposes, in domestic practice, equity and partnership capital are attracted. Obtaining bank loans is currently extremely difficult due to a number of economic reasons.

The main mechanism for implementing the financial strategy is current and operational financial plans, which allow for the ongoing management of the organization's activities.