Building a Strategy Your Numbers Can Support
Ambition without a financial model is a wish. Here is how to connect strategy to capacity, cash and controls.
Start from capacity, not aspiration
Growth targets must be tested against three constraints: cash, people and systems. A plan that ignores any of the three will stall in execution.
Model the plan
Build a driver-based model: volume, price, gross margin, fixed cost, working capital cycle. Change one driver at a time and watch cash. The model does not predict the future; it exposes fragility.
Sequence the investments
Fix the controls before scaling volume. Weak controls scale losses faster than revenue.
Review quarterly
Strategy that is reviewed once a year is decoration. Review quarterly against actual performance and adjust the plan, not the ambition.
About the author
Soteria Consult Editorial Team
Accounting, Tax & Advisory Practice
Soteria Consult Ltd works with organisations across Nigeria and beyond on accounting, financial management, tax, ERP, automation and leadership development.
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