Question

Given the criticisms of financial planning models, (unrealistic simplicity and lack of ability to determine the best financial policies), how would you respond to someone who says the financial planning process is simply a waste of time.

Answer 1

Financial planning process is not waste of time at all if you have accurate and in depth knowledge about business. Simply if you know your business well financial planning is not waste of time at all, in fact financial planning proper planning will help the business to grow in certain directions. Proper financial planning will speed up the growth of business and it will help the business to manage the money inflow and outflow very well.

Planning is just assumption about, but without any planning thing can become more crucial because through financial planning process current financial situations becomes more clear in minds of management and now they can thing further by setting realistic goals for growth of business.

We all know future is uncertain but financial planning helps to fight with any uncertain condition may arise in future. Complete financial planning process gives idea near about idea for cash inflow and outflow of business, it can help to take any further action.

The process of accurate financial plan is very important for successful result. Everything about current situation of business becomes clear in your mind and you can decide short term and long term goals according to current situation and assumed future circumstances to move forward for more successful business. It helps to build blueprint for future actions.

So, financial planning process is not waste of time if it is done with proper knowledge, analysis, system and expertise, in fact it helps the business to grow faster.