20 Strategies For Sustained Financial Growth And Success

Achieving sustainable financial growth is the holy grail for companies of all sizes and industries. Doing so goes beyond merely hitting quarterly and annual targets; instead, leaders must set their companies up for long-term growth and prosperity with the right strategies.

Good financial performance requires a holistic approach that encompasses strategic planning, operational efficiency, risk management and customer-centricity. Here, Forbes Finance Council members offer some best practices that will guide companies on the path to financial excellence and success.

1. Build A Comprehensive Strategy

To ensure sustained financial performance, companies must build a strategy that revolves around 1. driving innovation for opportunity and risk mitigation, 2. identifying killer differentiators to stand out from the competition, 3. staying focused on business fundamentals based on data, 4. developing a growth mindset for continuous evolution and 5. valuing people as key assets in challenging times. - Parth Kulkarni, Adobe Inc.

2. Focus On What Makes Your Business Different

Never lose sight of what differentiates your business. Focus on your advantages and how you provide a better experience, service or product that brings long-term value to customers. Be extremely aware of your competitors, but don't spend all of your time chasing them. You didn't create a business to do that. Consistently leveraging what sets you apart is essential for building long-term success. - Lee Henderson, EY

3. Understand Your Customers' Needs

To drive sales, understand the needs of the company's customers, and identify products and services that the market wants—understand the competitive landscape, the length of sales cycles, customer purchasing patterns and credit strength. A comprehensive financial plan monitoring and managing expenses in comparison to a plan every month across the company is critical to driving the bottom line. - David Samuels, DrFirst, Inc.

4. Raise Revenue And Lower Cost

To keep it simple, raise revenues and lower costs. As revenues go up and we become more efficient and remain ahead of the learning curve, our cost of goods sold should decrease as well as our overhead spend per unit sold. This will be a journey with peaks and valleys. If there is not a steady climb, some strategy may be needed for business longevity. - Marjorie Adams, Fourlane

5. 'Inspect What You Expect' From Your Employees

Companies should carefully evaluate the labor they pay for and look to get exceptional output from their employees. Labor cost is generally the greatest expense for a majority of U.S. companies. Executive leadership teams that “inspect what they expect” from their employees with goal-based planning and financial impact measurement of success will improve the overall performance of their companies. - Ford Stokes, Active Wealth Management, Inc.

6. Use One Integrated Platform To Look At Finances

We know cash flow is central to any company’s financial planning and management. But faced with fragmented financial solutions, business owners are often forced to piece together solutions from different providers—clouding their view of true cash flow. Moving to a single, integrated platform can empower companies to improve overall financial performance with more informed decision-making. - Eyal Lifshitz, Bluevine

7. Diversify Your Revenue Streams

There are many strategies a company can adopt to improve their financial performance; cost management, customer focus, talent management, operation efficiency and so on. But I'd like to highlight the importance of revenue diversification. Over-reliance on a single product, service or customer limits your financial performance. Diversifying revenue streams is key to ensuring financial security. - Karim Nurani, Linqto

8. Avoid Employee Burnout

Companies can often equate productivity with profitability without considering burnout among key personnel. Take the burden off your team by ensuring a high quality of talent, implementing well-thought-out policies and procedures and streamlining and automating tedious tasks. This will maintain a sustainable productivity rate and drive business growth. - Omar Choucair, Trintech

9. Make Small Changes Based On Strategic Analysis Results

Complete a strategic analysis of accounts. Identify ideal financial performance and then compare it to actual financial results, this difference is called the gap. Then create strategic plans around how to close the gap for all departments. Small incremental changes will lead to huge improvements. - Christopher Foder, CExP, First Financial Group - Meridian Financial Associates

10. Focus On All Of The Things That Create The Big Picture

To ensure sustained financial performance, companies should focus on strategic planning, cost management, innovation, talent development, customer satisfaction, financial discipline, risk management, adaptability, technology integration and strong corporate governance. These elements collectively foster resilience and long-term success. - Gianluca Sidoti, The Wealth Company International FZCO

11. Operate With Clear Communication And Transparency At Every Level

One approach maximizes stakeholder communication, including investors, employees and customers. Transparency with all involved will foster a culture of trust and confidence, resulting in better-informed financial decisions, stronger organizational resilience and improved customer retention. Clear communication also positions the company as one that values accountability and integrity. - Jeffrey Bartel, Hamptons Group, LLC

12. Compare Current Data With The Past Year

Companies should compare current and past year data, focusing on revenue and expense changes. Using "same, better, best" scenarios helps assess if targeted investments are effective or items that can be eliminated. Pro forma statements projecting future performance under various scenarios are crucial for planning and adapting strategies based on market changes, ensuring both resilience and growth. - Tammy Trenta, Family Financial LLC

13. Manage Operating Expenses In An Effective Way

Day-to-day operating expenses are a tremendous lever in controlling and enhancing financial performance. While a big focus of financial reviews typically weighs revenues heavily, operating expenses, such as rent, labor, insurance and the cost of goods sold are an equally key component to the equation. Effective management of operating expenses can set the company on a strong financial trajectory. - Greg Bassuk, AXS Investments

14. Budget Based On Actual Finances

Reconcile financial projections to actual financial outcomes quarterly. Far too many businesses create departmental budgets once a year based on last year’s financial outcomes. But are this year’s budgets reconciled to this year’s actual financial outcomes in real-time, at least quarterly? Usually not. That can lead to financial problems not being spotted until it’s too late to fix them. - Todd Sixt, Strait & Sound Wealth Management LLC

15. Focus On Monthly Cash Flow

Financial performance is measured by generating strong monthly cash flow. In 2022, Apple generated profit margins of 31.5%, which is fantastic. If your business generates 5 million a year but has no profits or cash flow then you are losing. Weekly and monthly money dates reviewing your KPIs and cash flow or profit targets will ensure improved performance. What gets tracked also improves. - Leo Kanell, 7 Figures Funding

16. Implement Automation To Save Employee Time And Money

Automation tools like CRM platforms can drive greater efficiency in organizations by allowing employees to complete tasks more quickly and accurately. Customers benefit from lower costs and more consistent products, increasing customer retention. Moreover, this time savings allows employees to participate in R&D and other strategic activities essential to long-term financial growth. - Anthony Georgiades, Innovating Capital

17. Adopt Instant Payment Methods

Adopting instant payment methods over traditional but slower payment options like ACH can immediately streamline your financial processes. It's not just about speed; it's about visibility and having real-time financial insight into the ins and outs of your bank balance. A better grasp of your cash flow can help you make smarter financial decisions on opportunities and mitigating costs. - Nick Chandi, Forwardly

18. Make Time For Strategic Planning, Operational Efficiency And Adaptability

Business executives should set aside time for strategic financial planning, be flexible as the market shifts and promote operational effectiveness. Keep a flexible budget, invest in innovation and analyze financial data regularly. Develop a solid rapport with customers and a robust corporate culture. Operational excellence, flexibility and foresight lead to sustained financial performance. - Jared Weitz, United Capital Source Inc.

19. Prioritize Your Customers

Prioritizing customers is crucial for businesses. They can better address their requirements if they understand them. Direct consumer encounters, in addition to focus groups and surveys, are effective. Companies will be in a better position to ascertain the needs and desires of their clientele, enabling them to select goods and services as well as modes of distribution. - Neil Anders, Trusted Rate, Inc.

20. Take A Multifaceted Approach

Establishing sustained and improved financial performance requires a multifaceted approach. Strategic planning allows you to set clear objectives, while operational efficiency ensures streamlined processes. Innovation fosters competitiveness and customer-centricity cultivates loyalty. Proactive risk management mitigates potential threats. Consistent adaptation to market dynamics is equally crucial. - Pankaj Vasani, Cube Highways InvIT

Forbes Website: https://www.forbes.com/sites/forbesfinancecouncil/2024/01/05/20-strategies-for-sustained-financial-growth-and-success/