Arnon Dror is among a handful of financial executives who have made their mark international arena. This master graduate in business administration has almost 20 years of valuable experience under his belt. During this period, he has held the office of Vice President in more than one companies. People who know him say is responsible for converting many loss-making companies into profitable entities. Officials of organizations like Xerox, Creo Inc., Scitex, Kodak, Creo Americas and Presstek acknowledge this fact. They admit he’s got an impressive track-record in area of corporate reconstruction and turnaround. Many of them even consider him to be an expert in many diverse fields. These include internal control, corporate mergers, business negotiation, cash flow management, ERP integration, and IT systems.
Arnon Dror – What do entrepreneurs need to consider when implementing a financial plan?
This financial professional say start-up entrepreneurs envision operating a successful business in the foreseeable future. Only then can these individuals stand out in the eyes of the public. However, they can only achieve their objective through proper financial planning. Taking this step is necessary for a variety of reasons. It allows them to look at the present market condition and avenues for obtaining funds.
Moreover, they need to be aware of the initial costs they are likely to incur. Only then can these aspiring proprietors assess the profit potential of establishment they going to start. This is a fact which they can’t afford to overlook at any costs.
This expert explains the entrepreneurs that they should consider the following 2 important factors when implementing a financial plan:
- Budgeting
Recent research shows most businessmen become bankrupt within a few years of establishing their concerns. In a majority of cases, they experience a cash crunch or accumulate too much debt. Some financial specialists report in many instances it is a combination of both. After incorporating their organizations, start-up entrepreneurs need to maintain positive and continuous cash flow. Without this money, it is virtually impossible for them to conduct their activities. This is only possible when they exploit new revenue streams and curtail their operating costs. It is also essential for them to justify and prioritize the operating expenses they incur. These proprietors can only achieve this objective through proper budgeting. They need to remember it is a critical aspect of their financial plan.
- Overall organizational goals
Entrepreneurs need to have a clear vision on how they are going to operate their businesses successfully. Only then can they set their actions into motion to accomplish their organizational goals. This also gives them a proper understanding of how to utilize their money productively. Many of them may want to generate maximum sales in the initial stages. They feel it is the first step to improving their bottom-line profits. For this, they need to take the necessary steps to attract more customers in the market.
Arnon Dror clarifies proper financial planning is a necessity for all start-up entrepreneurs. It can help them overcome any obstacle on the road to operating their businesses successfully. In the process, they are able to achieve their organizational objectives. However, when implementing such a strategy, they keep the above 2 important facts in mind. It’ll ensure they won’t end up making the wrong decisions.
