Enhanced Role of Experts on Sales Strategies & Financial Planning for National Reincarnation

Sales strategies are typically developed by a company’s administration, along with its sales, marketing, and advertising managers.


A sales strategy is a plan by a business or individual on how to go about selling products and services and increasing profits. Sales strategies are typically developed by a company’s administration, along with its sales, marketing, and advertising managers. All involve “pitches,” or key points to address when speaking with potential consumers.

Identifying Markets: Sales strategies differ by industry, but no matter what you sell, you need to determine the target market. For instance, it would be unwise for a company that sells baby dolls to advertise its products in men’s fashion magazines. But identifying a market goes beyond the obvious. Things such as the location, age, gender and spending habits of a company’s potential customers must also be established.

Setting Methods: All companies must determine how to go about selling and promoting their products when developing a sales strategy. In other words, will you contact customers through the mail? By phone? Or by sending out mass marketing emails? Many companies use all of those methods–and more–in their quest to meet a potential client face-to-face. In fact, much of how a salesperson goes about pushing products and services is by, again, knowing her market.

Knowing Competition: Any good sales strategy is built with the competition in mind. That means understanding what has worked for competition and perhaps even integrating it into your own sales strategy. Or even better, knowing what works for the competition and improving it, either by offering a similar product at lower prices or marketing a product as if it’s the best of its kind.

Analyzing Trends: Occasionally, a product will go out of style and need to be updated or replaced altogether. For instance, the economy will determine how much a consumer is willing to spend on a certain product. Understanding these types of trends is a big factor in developing a sales strategy. Companies with successful sales strategies prepare themselves well in advance to tackle supply and demand fluctuations when products become less popular or when financial markets fluctuate.

Staying Organized: Organization is a major factor for success in any industry and sales is no different. Therefore, sales strategies need to include details on the role of those involved in creating marketing plans, sales process, CRMs with clearly laid out plans of how accounts and territories should be managed, and of course, commission and compensation. Sometimes, strategies even outline incentives and bonuses for a successful sales strategy.Enhanced Role of Experts on Sales Strategies & Financial Planning for National Reincarnation

Digital Transformation &Customer Behaviour: The current pace of change in customer behaviour due to the Digital Transformation, use of digital tools like apps and mobile devices have changed the customer behaviour and sales strategies have to keep the same in mind. These changes in customer behaviour have provided the customer with instant information on products, the ability to select amidst a huge selection and finally able to make a decision and obtain the product at the earliest through e-commerce ordering and delivery channels have really forced businesses to strategise their sales channels and also have a strategy for online business in order to be able to stay competitive and be sustainable.

Meaning of Financial Planning

Financial planning has been defined as “the advance programming of all plans of financial management and the integration and coordination of these plans with the operating plans of the enterprise.” There is hardly any aspect of a business that does not have both financial requirements and financial consequences. Financial planning deals with both sources and uses of funds.

There must be someone in the enterprise who pulls together, reviews, analyses, interprets, and plans these requirements and consequences. The person responsible for this is the Chief Executive Officer(CEO) in charge of the business and finances of the enterprise; no matter by whatever name or designation he is called.

Financial planning includes the following

  1. Determination of the financial resources required to meet the day-to-day operations of the company.
  2. To work out as to how much of these requirements are to be met by generating funds internally by the company and how much is to be obtained from outside the company.
  3. To develop the best possible plans for obtaining the funds needed from external sources.
  4. To establish and maintain a system of financial controls for governing the allocation and the use of funds.
  5. To formulate a programme for the provision of the most effective relationship between product-cost-profit.
  6. To analyse the financial results of all operations.
  7. To report these analysed facts to the top management of the enterprise.
  8. To make recommendations relating to future operations.

Need for Financial Planning

Financial planning is an essential and significant financial process. All aspects of financial plans—short-term, medium-term and long-term—affect the earning capacity, profitability and solvency of the business concern.

Rational financial planning is key to a successful business. In view of the complex nature of the business enterprise today, management places a great emphasis on financial planning. For the success and progress of any corporate body, it is essential that available resources be utilised in an optimal way and as far as possible the capital should not be misused.

This is possible only when correct estimates of present and future capital requirements are made through financial planning. It is the rationality in these estimates that counts; will be the possibilities of problems of excessive capital or inadequate capital. History indicates that many business concerns in the past years met failures simply because their financial planning was not prudent. Improper planning does not provide correct estimates of capital requirements.

As a result, either the concern does not avail adequate funds as per the needs or avails too many funds leading to misuse/wastage of funds. In both cases, the profitability of the concern is adversely affected. Likewise, financial planning also acts as a guide in designing the capital structure. While deciding the ratio/proportion of various securities in the total amount of required capital, the financial executive has to consider a capital structure where the cost of capital is the minimum with no additional risk. Even a slight default in this regard may prove fatal to the concern in the long run.

The success of a business concern depends to a greater extent upon comprehensive financial planning. All plans relating to promotion, future expansion and development depend upon the soundness of the financial planning only.

Generally, the need for and importance of financial planning is due to the following factors:

  1. Successful promotion of business,
  2. The success of the entire firm,
  • Economy and co-ordination in operations,
  1. Conservation of Capital,
  2. Expansion and development of business,
  3. Changes in the price level, and
  • Adequate liquidity in the business.

It may be inferred from the above discussion that financial planning is an indispensable tool for the success of various plans right from promotion to expansion and development programmes as well as for economic operations of various activities of the business entity.

One more advantage comes in the form of a fair and adequate return on invested capital. An adequate amount of cash and its continuous flows are a must in the business.

The business firm must be able to pay its liabilities at every moment, whether the case is that of expansion or is a competitive environment or the case is of producing a new product or there is the question of modernization. The firm needs finance and for the planning of adequate finance at the right time, financial planning is essential.

Objectives of Financial Planning

The main objectives of Financial Planning are:

  • To make available adequate funds for business so that they can be used up to the optimum point.
  • To collect the funds at a time when the cost of capital is minimum, considering the investors who are willing to bear risk.
  • To bring flexibility in planning so that adjustments in the capital structure can be made with the changing circumstances.
  • To make the financial plan simplified according to the objectives of the plan.

These objectives act as standards based on which financial decisions can be evaluated. Which is more important, and which is less important, depends upon the actual circumstances. A financial plan should be evaluated from time to time so that equilibrium in its objectives is maintained.

Characteristics of a Sound Financial Plan

The financial plan of a business should be prepared carefully because the achievement of the business objectives and its long-term success depend on the financial plan along with other factors. The basic principle of a financial plan should be the availability of adequate finance for business activities on the one hand and profitable use of the available funds on the other. A sound financial plan should be based on the following characteristics:

  1. Simplicity: The financial plan of the business should be foresighted. It should consider not only the present requirements of the business but also the future ones. It should have the provision to fulfil the requirements of fixed and working capital. It should be prepared, keeping in view the technological changes, changes in demand, availability of resources and other factors.
  2. Intensive Use: Financial plans should make possible the intensive use of all available resources of finance. The misuse of capital decreases the profitability of the business. There should be a balance between the long-term and short-term finances of the business. It is possible when the capital requirements are correctly estimated, and financial control is used.
  3. Flexibility: The financial plan of the firm should be flexible too. It should be such as to make necessary adjustments regarding the changes in the scope of business and other circumstances like recession, boom time, etc. Financial plans should be prepared in a manner so that at times of fewer profits, businesses can manage the fixed overheads and expenses.
  4. Liquidity: The financial plan should be prepared in such a manner as to maintain the necessary liquidity. Liquidity means the capacity of the business to pay its operating expenses and other short-term debts in time. To operate the business successfully, it is necessary to pay off the creditors in time. In absence of liquidity, the business will not be able to pay its liabilities in time and consequently, the goodwill of the firm is adversely affected.
  5. Economical: Financial plan should help curtail the different expenses on issues of capital like underwriting commission, brokerage, discount, printing expenses, etc. The average cost of capital should also be minimum. The burden of fixed expenses should also be minimum. This is possible when a proper balance between debt funds and owned capital is maintained.
  6. Contingencies: The financial plan of a business should also be prepared considering the contingencies of business. These contingencies should be forecasted, and adequate funds should be provided to face them.
  7. Uniformity: Financial plan should be prepared in accordance with the organisation structure of the firm.
  8. Availability: While determining the financial plan, available sources of funds should be ascertained to ensure funds are available in actual practice.

Main Elements

The Main Elements of Financial Planning are as follows: A closure analysis suggests that there are three main elements/components of financial planning:

  1. Determination of Financial Objectives: The first element of financial planning is the setting up of both long-term and short-term financial objectives of the enterprise. These objectives are in consonance with the fundamental goals of the enterprise and they serve as a guide to personnel engaged in finance functions. Long-term financial objectives are in terms of maximum, efficient and economical use of factors of production.

The maximum use of all factors of production except capital is possible only when the enterprise gets capital in the required quantity, at the right time and at a reasonable cost. The appropriate capitalisation and capital structure are determined and designed after due consideration of long-term financial objectives. Short-term objectives include the arrangement of adequate cash for each activity/function of the enterprise. This requires the arrangement of working capital or inflow and outflow of funds.

  1. Formulation of Financial Policies: Formulation of financial policies in accordance with financial objectives is the second element of financial planning. These policies are formulated by various executives working in the finance department. It has to be clearly spelt out as to what policies would have to be adopted for achieving the financial objectives.

Normally, such policies are formulated in respect of the following:

  1. Determining the required amount of capital;
  2. Establishing the relationship between providers of Capital and the enterprise;
  3. Determining the ratio between debt and owners’ capital (equity);
  4. Selecting the sources of capital;
  5. Distribution or disposal of income;
  6. Management of working capital; and
  7. Management of all types of assets.
  1. Developing Financial Procedures: In order to implement the financial policies formulated in accordance with financial objectives, it is imperative to develop financial procedures as well. Thus, developing a financial procedure is the third element of financial planning.

Dividing the various finance functions into smaller sub-departments, delegating them (with responsibility) to employees, arranging the financial performance and control etc., are included in the development of financial procedures.

Setting the standards of performance and reaching the correct result by comparing the actual performance with standards and checking all the discrepancies have also become the elements of financial planning.

Expert’s opinion is that financial planning should:

  • Determine the financial resources required to meet the company’s operations;
  • Forecast the extent to which these requirements will be met by the internal generation of funds and to what extent they will be met from external sources;
  • Develop the best plans to obtain the required external funds;
  • Establish and maintain a system of financial controls governing the allocation and use of funds;
  • Formulate programmes to provide the most effective profit-volume-cost relationships;
  • Analyse the financial results of operations; and
  • Report the facts to the top management and make recommendations on future operations of the firm.

Components of Financial Planning

According to the views of Robins & Cohen’s, a financial plan should consist of mainly three components, namely:

  1. Capital Structure planning – comprises rising different forms of capital i.e., Debt & Equity mix (known as Capital mix decision)
  2. Capital Expenditure planning – deals with Capital project evaluation investment on Fixed Assets & Current Assets (known as Asset mix decision).
  3. Cash flow analysis– deals with assessing the Present value of Cash inflows & cash outflows to determine the cost-benefit of investment on different projects.

Types of Financial Planning

Based on time, financial plans can be short-term, medium-term or long-term.

  • Short-Term Financial Planning: The financial plans which are normally made for a one-year period are called short-term financial plans. Short-term financial plans are prepared for the efficient use of working capital. With its help, the total amount of working capital and its different sources, etc. are determined. The main objective of a short-term financial plan is to maintain the liquidity of the business. Under it, different budgets like sales budget, cash budget, projected profit and loss statement, cash flow statement, etc. are prepared.
  • Medium-Term Financial Planning: The plans prepared for more than one year but less than five or seven years are called medium-term financial plans. A medium-term financial plan provides medium-term funds for the business. Medium-term funds are required for the replacement of assets, purchase of additional equipment and tools, major repairs on assets, research and development activities, and fulfilling the special requirements of additional working capital.
  • Long-Term Financial Planning: The financial plan prepared approximately for 5 to 7 years, or more is called a long-term financial plan. A long-term financial plan is prepared to fulfil the long-term objectives of the business. The programmes and policies relating to capitalisation, capital structure, replacement of fixed assets and expansion and growth of the business are covered under it.

Financial Planning ProcessEnhanced Role of Experts on Sales Strategies & Financial Planning for National Reincarnation

Steps in Financial Planning Process

For the purposes of financial planning, an organisation should take the following steps:

  1. Laying Down Financial Objectives: In order to make an effective financial plan, first, the financial objective of the corporation should be laid down. The financial objectives of business help in determining policies and procedures. In the changing circumstances, the business must determine its short-term and long-term objectives in present times. Short-term objectives should be determined in a manner that helps in the achievement of long-term objectives. The objectives should be clear and definite so that they can be used as guidelines by the executives and the activities of the organisation could be performed in an organised and coordinated manner.

The long-term financial objective of a business should stress the maximum and economical use of the financial resources so that value of assets could be maximised. The liquidity of funds is maintained only when adequate cash for each transaction is maintained. For this purpose, there is a need for the effective management of working capital.

  1. Formulating Financial Policies: The formulation of policies is the second step in financial planning. These policies act as guidelines for the procurement of funds, their utilisation and control. These help in achieving financial goals. Policies should be based on predetermined objectives and practicable so that they can be implemented easily and effectively.

The policies should be determined at the top level of management. Normally the advice of a financial manager is sought in determining the policies and his role is decisive. These policies can relate to the determination of capital structure, capitalisation, sources of funds, the realisation of debt, management of capital, distribution of profit, management of working capital, management of inventory, etc.

  1. Developing Financial Procedures: To implement the policies, it is necessary that detailed financial procedures be determined which explain all rules and sub-rules. The subordinates will come to know what work they have to do and how they have to do it. Performance can be determined effectively. It will increase the efficiency of the employees and their tasks can be coordinated.

In order to implement the predetermined objectives, policies and programmes and to control the deviations, financial control are essential under the financial plan. For this purpose, a budgetary control and cost control system is adopted.

Under it, standards are determined for financial performance. Actual performance is compared with the standards to ascertain deviations and their causes. Efforts are made to prevent deviations.

  1. Preparation of Financial Plan: Under this process, the total capital requirement is determined. It is called capitalisation. To determine the capitalisation, fixed assets, current assets, preliminary expenses, and other expenses are determined to make the correct estimate of necessary funds. After determining the total fund requirements, it is determined in what proportion the funds will be raised from different sources. It is called capital structure.
  2. Reviewing of Financial Planning: Financial planning is a continuous process of business. The financial objectives, policies, procedures, capitalisation and capital structure should be modified according to the changing internal and external circumstances.

Factors Affecting Financial Planning

It is important for finance managers to understand aspects of the business environment because it can affect the firm and its operations. Prior to drafting financial plans, understanding the business environment is essential to discover the opportunities and threats that are evolving and that need to be addressed by the enterprise.

The external and internal factors provide managers with the foundation to create a budget, which works in tandem with financial planning. The following are the key factors to be considered while formulating and implementing a financial plan.

  1. Nature of Business:

The nature of an organisation’s business directly influences its fund requirements, for example, manufacturing industries require large investments in plants, machinery, warehouses, and others. While trading concerns need relatively lesser investment in such assets.

These assets continue to generate income and profits over an extended period. Also, funds that are once invested in fixed assets cannot be withdrawn and put to some other use.

  1. Risk Appetite:

Risk appetite refers to the level of risk that an organization is willing to undertake in its normal course of business. It represents a balance between the potential benefits of new actions that a business organization undertakes and the threats that change inevitably brings.

When deciding on its risk appetite for each category of risk in its financial plan, the board of directors should consider the risk capacity of the company. This includes the amount and type of risk it is able to support in pursuit of its business objectives, taking into account its capital structure and access to financial markets.

  1. Position of the Firm:

The position of the firm implies market share, goodwill, the reputation of the management and financial performance of the business enterprise. If a company is in a good position, it becomes easy for it to raise funds from various sources, further it can also avail credit facilities from various suppliers at ease. Therefore, a finance manager has to assess the position of the company before formulating a financial plan.

  1. Study of Financial Markets:

Businesses often need to raise capital in order to fund their fixed and working capital requirements, therefore a comparative study should be undertaken to study various sources of finance critically.

Funds can be obtained through financial markets, organized forums in which the suppliers and demanders of various types of funds can make transactions.

Financial markets offer a variety of financing to meet the requirements of the organization. Therefore the study of the financial market is necessary to strike out a balance between cost and risk involved in financing decisions and their impact on profitability.

  1. Economic Conditions:

The economic condition means the state of the economy that is determined by numerous macroeconomic and microeconomic factors, including monetary and fiscal policy, the state of the global economy, unemployment levels, productivity, exchange rates, inflation, business cycles and so on as an economy goes through expansion and contraction.

Economic conditions are sound or positive when an economy is expanding and are adverse or negative when an economy is contracting. These micro and macro-economic factors influence the working of a business enterprise; therefore a financial plan should be designed keeping in mind these factors.

  1. Future:

Most of the organizations have ambitious plans of expansion, capturing wider market share and going international.

Whatever may be the future ambition, if the financial plan adopted fails to provide sufficient capital to meet the requirement of fixed and fluctuating capital and particularly if it fails to assume the obligations by the corporations without establishing earning power, the business cannot be carried on successfully. Hence the assumption of future plans which financial planning is very necessary for the success of all future endeavours of the organization.

  1. Government Policies and Control:

Governments create the rules and frameworks in which businesses operate. From time to time, the government will change these rules and frameworks forcing businesses to change the way they operate.

For example, government regulatory bodies such as RBI and SEBI periodically frame regulations pertaining to the issue of debentures, shares, payment of dividends, mergers and acquisitions and rate of interest etc. Therefore, while preparing financial plans the financial managers should take into consideration these policies.

Companies will have varying needs for financial planning and budgeting depending on the type of business and its size. Some will need detailed financial plans, with hierarchical goals and a rigid budgeting process that is established and monitored frequently. Small, independent businesses may need just a bare-bones plan of where they hope to go and how they plan to manage expenses to continue to stay in business.

Significance of Financial Planning

The success of a business is based on the fact how carefully and foresightedly financial planning has been made. The future modernisation, development and growth depend on the soundness of financial planning.

The significance of financial planning can be explained as under:

  1. Optimum Utilisation of Resources: Financial planning helps in optimum utilisation of resources because it facilitates correctly estimate present and future capital requirements and preventing the problems of over-capitalisation and under-capitalisation.

Various business institutions fail only due to wrong financial plans. Both excess capital and deficit capital more than required are harmful. Due to efficient financial planning, a fair return on capital can be achieved.

  1. Helpful in Optimum Capital Structure: Under the financial plan, the optimum capital structure can be determined. In the capitalisation of a firm, different components of sources of finance are mixed in a manner so that cost of capital is minimum and the value of the firm is maximum.
  2. Efficient Operation of Business: The efficiency of the activities of business-like production, marketing, etc. depends upon adequate availability of funds. Financial planning helps in providing adequate funds in time. In absence of financial planning, management has to make changes in the policies and procedures. It causes a loss of goodwill and resources of the business.
  3. Expansion of Business:

A financial plan helps make a forecast about the required capital for the future expansion of business. It helps combat financial difficulties. The growth and expansion of firms are needed due to changes in internal and external circumstances. Project planning is made under a long-term financial plan.

  1. Adequate Liquidity:

Liquidity is related to the debt-paying capacity of the business in the short term. To maintain the liquidity position, liquid funds are needed. In a financial plan, adequate provision of funds is made for the payment of these debts in time.

Limitations of Financial Planning

Financial planning is not without limitations. It works effectively only when they are overcome while formulating it. The important limitations of this are as follows:

  • Inadaptability of plans: Plans are decisions and decisions require facts. Facts about the future are non-existent, consequently, assumptions concerning the future must be substituted. Since future conditions cannot be forecast accurately, the adaptability of plans is seriously limited. This is particularly true of plans which cover several years in advance since the reliability of forecasting decreases with time.
  • The reluctance of management to change: A plan once it has been made, there are several reasons for its opposition. First, plans relating to capital expenditures often involve thousands of rupees, and commitments for funds are made months in advance and cannot readily be changed.

Secondly, in addition to advance arrangements regarding capital, management often makes commitments for raw material and equipment and even starts training programs for personnel prior to the time when the plan is to be initiated.

These commitments, if broken, may result in serious problems. Thirdly, management personnel are psychologically against change, which creates rigidity.

  • Lack of coordination: Financial planning affects each function in the organisation and to be effective, each function should be coordinated in order to ensure consistency of action. Poor coordination also disturbs limiting and sequence of events, thus making the plan ineffective. Indecision on the part of executives is often harmful to the plans.
  • Heavy investments in Specialised Equipment: Mechanical evolution has brought about the increased use of specialised buildings, machinery and equipment which has resulted in an increase in the amount of capital tied up in fixed assets. Many firms cannot afford to make new plans which include the employment of these assets even though the present plan may not be the best for existing circumstances.


The formation of sales strategies and strategic financial planning plays a crucial role in the economic development of a country. Businesses and industries are financed by the financial systems which lead to growth in employment and in turn increase economic activity and domestic trade financial intermediaries help improve investment efficiency, leading to higher economic growth.

The Financial System helps efficiently direct the flow of savings and investments in the economy. Here financial institutions like banks play a major role. They allow depositors to invest money in various forms like FDs and RDs by offering attractive rates of interest. These savings are then channelized by the banks to provide credit to different business entities, which are involved in production and distribution. Banks help in the allocation of resources across different sectors of the economy. Business entities require capital for funding business activities and production. Business requires two kinds of capital working capital and fixed capital. Therefore, various business entities use the financial system to raise funds for both short term and long-term money requirements.

The Foreign Exchange Market helps exporters and importers raise and receive funds for settling transactions. It also enables banks to borrow money and provides funds to different types of customers in various foreign currencies like Dollars or the Euro. The market also provides opportunities for banks to invest short term idle funds and earn profits. Even governments have benefited as they can meet their foreign exchange requirements through this market. Financial planning enables the government to raise funds, helping them borrow at a lower rate of interest. The state and the central government can raise short term and long-term funds from the government securities market to finance capital requirements by issuing bills and bonds. The Government can also borrow funds from the money market by issuing treasury bills. These instruments offer attractive rates of interest. Therefore, the money market, the capital market, and the foreign exchange market help in the development of trade, industry, and commerce within and outside India, ensuring the development of the economy and national growth.

A properly functioning financial system helps generate more employment opportunities within the economy. The financial system helps provide funds to the growing business houses and industries, which results in an increase in production. Consequently, it generates more employment opportunities for both the organized sector as well as the unorganized sector. An increase in business and industrial activity leads to various employment opportunities like sales, marketing, advertisement and so on. Funding availed by startups helps create additional employment opportunities. Economic development needs balanced growth which can be attained by propelling growth in all sectors, simultaneously. Financial planning helps allocate savings into investment channels. It helps in mobilizing savings and make better use of these funds by allowing investments in various sectors of the economy. The financial system helps channel available funds, thus leading to productive use of money by distributing it across sectors in such a manner, that there are balanced growth in industries, agriculture and service sectors.

Dr P. Sekhar,
Unleashing India,
Global Smart Cities Panel,
Dr. P. Sekhar the policy times

PJ Business Process Expert & Coach: Additive Manufacturing(3D Printing), Enabler,
sales skills Expert on Managed Print Services.

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Enhanced Role of Experts on Sales Strategies & Financial Planning for National Reincarnation
Sales strategies are typically developed by a company’s administration, along with its sales, marketing, and advertising managers.
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