#380: 2024 Planning: Leveraging EOS, Strategic Planning, Budgeting & Forecasting to Hit Your Target Equity Valuation [Part 2]

November 23, 2023 00:44:21
#380: 2024 Planning: Leveraging EOS, Strategic Planning, Budgeting & Forecasting to Hit Your Target Equity Valuation [Part 2]
Intentional Growth
#380: 2024 Planning: Leveraging EOS, Strategic Planning, Budgeting & Forecasting to Hit Your Target Equity Valuation [Part 2]

Nov 23 2023 | 00:44:21

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Hosted By

Ryan Tansom

Show Notes

Today I break down the intricacies of annual planning, focusing on how to effectively use an operating systems like EOS© (Entrepreneurial Operating System) by integrating budgeting, forecasting, and projecting company value. I emphasize the importance of tying your short and long-term goals (e.g., your V/TO) to a target equity valuation, understanding financial constraints, and making informed decisions for investment and growth. I also cover the budgeting processes and how to align financial strategies with overall business objectives, offering valuable tips for business owners aiming for stress-free planning and clear future visibility.

 

3 Key Takeaways:

 

1. Target Equity Valuation as a Central Goal: One of the key points highlighted is the significance of setting a target equity valuation for the company. By reverse-engineering this goal using the three financial statements (income statement, balance sheet, cash flow statement), business owners can better understand the trade-offs and decisions required for growth while creating  sustainable, predictable, and transferable cash flow..

2. Strategic Use of Budgeting and Forecasting: The podcast dives into the strategic use of budgeting and forecasting, emphasizing the need for a realistic and achievable plan that aligns with the owner’s  financial goals and targets. I highlight the importance of understanding the future cash position and the impact of various financial decisions on the company's trajectory.

3. Integrating Financial Statements into Planning: I stress the importance of integrating all three financial statements into the planning and forecasting process. This integration allows for a comprehensive view of the company's financial health, aiding in making more informed decisions regarding investments, distributions, and growth strategies.  

 

INTENTIONAL GROWTH™ RESOURCES:

 

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