What is the best way to create a financial strategy that supports your practice's mission and vision?

2 Define your financial goals and objectives

The next step is to define your financial goals and objectives that are aligned with your practice's mission and vision. Your financial goals and objectives should be SMART: specific, measurable, achievable, relevant, and time-bound. They should also reflect your values, priorities, and aspirations as a practice. For example, your financial goals and objectives could include increasing revenue, reducing costs, improving efficiency, enhancing quality, expanding services, investing in technology, or developing staff.

3 Develop your financial plan

The third step is to develop your financial plan that outlines how you will achieve your financial goals and objectives. Your financial plan should include the following elements: a budget, a forecast, a funding strategy, a risk management plan, and a monitoring and evaluation system. Your budget is a detailed breakdown of your expected income and expenses for a specific period, usually a year. Your forecast is an estimate of your future income and expenses based on historical data, trends, and assumptions. Your funding strategy is a plan for securing and managing your sources of income, such as fees, grants, donations, or loans. Your risk management plan is a plan for identifying and mitigating potential financial risks, such as market fluctuations, regulatory changes, or fraud. Your monitoring and evaluation system is a system for tracking and measuring your financial performance and progress towards your goals and objectives.

4 Implement your financial plan

The fourth step is to implement your financial plan by executing the actions and activities that you have planned. You need to have a clear and realistic timeline, a responsible and accountable team, and a set of tools and resources to support your implementation. You also need to communicate your financial plan to your stakeholders, such as your staff, clients, partners, and funders, and get their feedback and buy-in. You should also be flexible and adaptable to deal with any changes or challenges that may arise during your implementation.

5 Review and revise your financial plan

The final step is to review and revise your financial plan regularly to ensure that it is still relevant and effective. You need to collect and analyze data and information on your financial performance and outcomes, and compare them with your goals and objectives. You need to identify any gaps, issues, or problems that may affect your financial strategy, and take corrective actions or make adjustments as needed. You also need to celebrate your achievements and successes, and acknowledge and reward your team and stakeholders for their contributions and support.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?