Financial Management Problems Of Growing Enterprises

Because of the lack of overall management level, execution often takes form, and it also attacks the enthusiasm of financial personnel and fostering bad working habits.

"Wearing small shoes" is more common.

Financial management has no system or lack of systematic management ideas, leading to the lack of important financial strategies and financial functions.

For example, centralization or decentralization? What functions should finance play? What are the assets and funds of a company? What are the key risks and control points? What are the requirements for financial information, what is the decision of management and management, how to ensure the correctness of data and so on?

According to our experience, it is estimated that more than half of the growth enterprises do not have a systematic financial management idea and method.

It is no wonder that many CEOs complain about financial management confusion, unclear information, data inaccuracy, useless analysis, or more or less loss of property from time to time.

One of the great temptations faced by entrepreneurs is financing.

A lot of opportunities for good companies, bank loans, domestic and international listing, strategic or financial investment, have come to knock on the door.

Some enterprises do not know whether the development speed needs capital support, or the huge financing opportunity needs the coordination of scale and speed.

In order to get on the growth enterprise market, some growth companies usually carry out extraordinary rapid expansion, expand their business scale through bank loans and other loans, acquire other products and companies, and try to create a more attractive "kingdom" with stronger power and speed.

However, due to the fact that management capability can not keep pace with such development, most investment projects end up in failure. Before they are ready to go public, they lose their debts quickly and go bankrupt quickly.

The answer to this question is often closely related to raising funds.

The answer to this question may be one of the key strategic issues that growth companies need to consider, and it is also one of the biggest risks.

Besides speed, another problem of expansion is control.

This is manifested in three aspects: first, capital control in expansion, two in performance control in expansion, and three in corporate culture control in expansion.

These three aspects are related to financial management.

The direct result of expansion is the decentralization of enterprises, the increase of management points, the increase of personnel scale, the increase of business units, and the increase of various forms of legal entities, such as branch offices, offices, joint ventures, subsidiaries, etc.

This distribution will inevitably lead to the expansion of cost and the complexity and difficulty of management.

At the same time, in the expansion stage, capital is often a scarce resource, which creates a contradiction.

How to find a new kind of

Not only can it satisfy the requirements of expansion, but also within the controllable range, thus ensuring the continuous development of enterprises under the support of adequate funds, which has become a major challenge for financial management of growing enterprises.

Performance and corporate culture control are, in the final analysis, organizational management issues.

The core of organizational management is performance management and salary incentive.

On the one hand, we must control the total cost of remuneration in one.

On the other hand, by establishing key performance indicators, it guides the efforts of members in the organization, creates internal fairness and competition through the corresponding incentive policies, and stimulates the enthusiasm of the members of the organization. Through the analysis and monitoring in execution, it constantly strengthens the target and improves the gap, so as to ensure the realization of the strategic objectives of the enterprise.

These constitute an important part of financial management at this stage -- performance management, which requires financial personnel to pform from the overall organizational management and strategic management to the promoters of enterprise strategy and goal realization.

If the former challenge requires

To become a propeller of strategy implementation, here, finance will become an assistant for strategic and tactical development.

A series of important business decisions, such as product pricing, business combination, customer choice, sales policy formulation and production purchasing decision, all need corresponding financial data and analysis suggestions.

The market faced by growing enterprises is changeable. High growth will inevitably lead to new competition or more participation in competition with big enterprises.

In such an environment, blind decisions or erroneous decisions are dangerous because of the lack of information.

This analysis requires financial managers to take the initiative to look at problems and find problems from a business perspective, and to provide valuable advice to decision-makers through professional methods and tools.