Development of your financial strategy

Financial strategy is the most important functional strategy of the enterprise, part of the management system. The need to isolate the financial component when developing a business strategy, in our opinion, is due to the following tasks:

Determine the business's need for capital, taking into account the designated strategic priorities and target KPIs. In other words, calculate the amount of resources that will be invested in fixed assets (fixed assets + intangible assets) and working capital (short-term assets minus short-term operating liabilities) over the strategic planning horizon.
Determine the optimal sources of financing for current activities and strategic projects, taking into account the cost of capital (both equity and debt), the dynamics of operating cash flow, and the planned return on investment.
Optimally distribute financial resources between the business units of the group, taking into account the expected return on invested capital in each of the areas.
Maximize the financial effect of investments in the business, which will be expressed in the capitalization of its value.

As a rule, the ultimate goal of a financial strategy is to achieve sustainable growth in business value by providing the company with resources that are optimal in terms of cost and payback periods, and by monitoring the efficiency of their use.

Financing instruments

Internal financing

Financing the development, the establishment of the company is an unpredicted solution.

Self-financing

Placement of investments by an economic entity using its own resources.

Bootstrapping

External financing

Funds that a company or entrepreneur raises from outside to finance its activities.

Equity capital

Part of the company's assets that was formed through contributions from its participants.

Founders Family & Friends

Incubators Business Angels

Private investors who help startups in the early stages in exchange for equity.

Venture capital

A form of private equity financing provided by venture capital firms or funds to start-ups, early-stage companies, and emerging companies that are considered to have high growth potential or that have demonstrated high growth rates.

Private Equity

A type of asset that refers to a share in the capital, unit or stock of a company that is not listed on a stock exchange (securities exchange).

Mezzanine capital

An intermediate form of capital raising that contains features of both debt and equity.

Convertible Loans

An agreement concluded between a company and an investor, which provides the investor with the right, upon the occurrence of certain circumstances, to either demand a refund of funds or receive shares or a stake in the company in exchange.

Silent Participation

Participatory Certificates

Debt capital

Capital received in the form of a debt obligation.

Loans

Money that you borrow from a bank and pay back with interest.

Public subsidies

Assistance provided by a government in the form of a transfer of resources to an organization in exchange for past or future compliance with certain conditions related to the organization's operating activities.

To order the development of a financial business model

The experts of the OBERAUER company are ready to develop for you a financial and economic model adapted to the needs of your project or business. Creating financial plans and strategies requires not only professional skills, but also deep trust on the part of management, as it affects key aspects of the company's long-term development. We provide solutions that help you effectively allocate resources, minimize risks and achieve financial goals. Check out our services and contact us for advice! We are always in touch for your success.