Billy Crafton San Diego ! Billy Crafton Financial Advisor ! Billy Crafton Investments

1. FINANCIAL STRATEGY AND FACTORS THAT AFFECTS ON YOUR FINANCIAL PLANNING Going through building a financial strategy may be beneficial to any business owner. The plan supports the day- to-day decision-making of the company. When expected and actual results get compared, vital information about the company's overall financial health and efficiency emerges. Even a one-person operation needs a financial strategy. Budgets and Cash Management According to Billy Crafton from San Diego, having a financial strategy for your firm will help you break down what you need in your short-term budgeting. Many firms' revenues fluctuate monthly or seasonally, resulting in periods of abundant cash and periods of cash shortages. The owner considers these cycles when creating the financial strategy to keep spending under control during the forecasted low revenue periods. Poor cash management can lead to problems such as not paying your employees. Having a well-structured financial plan that includes a cash cushion allows the business owner to sleep easier at night. The cash cushion enables the company to take advantage of opportunities that emerge, such as the opportunity to buy goods from a supplier at a discounted price for a limited time. Long-Term Perspective It's tempting in business to become fixated on crises or challenges that arise daily. The cost of being too short- sighted is that the owner may not devote enough time to preparing what has to get done to expand the company over time. According to Billy Crafton from San Diego, the financial plan's forward-looking perspective helps the business owner determine what expenditures are required to keep the firm on track for development and to remain ahead of rivals. The financial plan is a road map for improving the company's performance over time. Identifying Trends Over a month, a business owner makes so many decisions that it may be impossible to discern which were successful and which ideas or methods failed. Setting quantifiable objectives compared to actual results throughout the year is part of the financial planning process. The owner can examine whether an increase in advertising costs resulted in the expected rise in sales, for example. The owner can make judgments to distribute marketing resources based on trends in particular product sales. Expenditure Prioritization Managing capital and conserving financial resources are crucial to success. The advantages of corporate financial planning include recognizing the most vital expenditures. Those that result in immediate increases in productivity, efficiency, or market penetration vs. those that can wait until cash is more plentiful. Even the most well-capitalized organizations go through this process of prioritizing, weighing the costs and advantages of each planned spending. Progress Calculation Small company entrepreneurs put in hard hours and face various hurdles, especially in the early phases of their businesses. It's tough to discern if the company is improving or stagnating. The small company owner receives

2. much-needed encouragement when outcomes exceed expectations. A graph that shows consistent month-over- month sales increases or an increasing cash balance is a powerful motivator. The fact is that financial planning pays off when everything gets done well, but it may also backfire if you are not focusing from the start. However, whether it pays or not is heavily dependent on several aspects. For the potential outcome, financial planning takes a variety of things. Some elements influence your financial planning ability. Here we talk about factors that affect your financial planning, according to Billy Crafton from San Diego. Spending Behaviour Your expenditures get directly linked to your financial life. How you spend today will influence whether or not you accomplish your financial goals in the future. Living within your means is critical to having a bright future. Overspending has the downside of causing you to lose trust in lenders. Other significant consequences occur if you do not control your spending. In a nutshell, if you want to live comfortably in the future, you must keep a close check on your spending. Economy The state of the economy should constantly be on your mind since it might have a favorable or poor impact on you. When the economy grows, you can increase your savings and focus on more financial goals. When the economy is declining, it may be more enticing to concentrate on the most crucial goals to protect oneself from the coming hardships. Liquidity and Solvency Only invest in projects that are more likely to generate a sufficient return on investment or focus on financial goals that are more likely to yield a good amount of return on investment. You'll need to be highly adaptable. Culture Change Modern society is ever-changing, and although some things may get ignored, others must get welcomed. Make sure you have a provision in your company plan that tackles such catastrophes, so you don't have to rely on your funds when they happen. A flexible financial strategy can help you meet new life challenges without jeopardizing your funds. Emergency Requirements If you don't include a section for emergencies in your financial plan, it's incomplete, according to Billy Crafton from San Diego. It's a mistake to put all of your attention on money and forget that crises might happen at any time. Having adequate insurance coverage is the best approach to deal with unexpected events. That way, you may be assured that your funds will be safe no matter what happens. Responsibilities If some people rely on you, such as your parents or children, make sure to account for them in your budget. Otherwise, no matter how hard you attempt to save, you won't be able to meet your short- and long-term goals. A Financial Advisor or Planner Financial specialists are available to assist us whenever we want financial assistance. A conversation with a licensed financial advisor might alter your perspective on financial planning. When it comes to financial planning, one of the most common mistakes people make (and one that you must avoid) is contacting their friends, family members, or other untrained persons. While you may be able to salvage a few valuable items from them, only experienced financial planners or counselors can guide you in the proper approach.