As a CFO, one of the questions I get asked often is “how do I make my business more profitable and competitive?” The answer is simple: you must adopt a strategic plan.

Strategic planning is simply the process of deciding how to allocate your existing resources in the most productive, profitable way. Many business owners don’t take the time to do strategic planning, nor do they have a sounding board to do it with and this is a mistake.

Just one hour a month with strategic planning will make a big difference in your business’s profitability and competitive edge. A good CFO with business ownership experience can be an excellent sounding board. In addition, the business and cash flow forecast can establish the basis for the strategic plan. It will give the business direction and the business owner more confidence because of this direction.