Planning Before Financing
I decided to address this topic not only because it is highly relevant today but also because, after many years of practical experience in consulting, I can particularly highlight how crucial this planning phase is in business—an aspect that, unfortunately, is often treated superficially by many entrepreneurs and local companies.
In many cases, I have been approached by entrepreneurs and business owners about accessing funding programs for their businesses. However, after initial discussions and meetings, I often realized that the main priority for these individuals was not financing per se, but rather solving operational, management, or strategic issues within their own businesses.
In the local environment, the dissemination of information—sometimes distorted, other times presenting only the positive aspects—about the successful or easy access to non-reimbursable funds by specialized consultants or even beneficiaries creates a somewhat “euphoric” context and generates impulses for the entire local business and entrepreneurial environment.
This context, combined with the desire not to “miss out on the phenomenon,” drives many entrepreneurs to try accessing “extremely favorable” solutions for investment projects that are more or less feasible and necessary for their operations, to the detriment of rigorous operational and strategic planning.
Hastily accessing financing for a specific company project without operational and strategic planning, a clear vision for development, and anchoring the project in the company’s strategy can prove to be a significant, sometimes irreparable, mistake.
There have been many situations where acquaintances, collaborators, and business partners thanked me later for this pragmatic and objective approach, which unfortunately is not shared by many consultants in a local market still in formation. This approach also stems from my entrepreneurial inclination, with the main advantage of this dual profile—entrepreneur and consultant—being that it helps me better understand the real needs of those I discuss with.
So, when is it worthwhile to seek non-reimbursable financing for a project or investment? Only when the project is viable and the investment is worth making regardless of non-reimbursable funds. This, of course, requires going through and completing a preliminary phase of operational and strategic planning for the business in question.
My conclusion for this topic aligns with the title of the article: Plan your business before seeking financing! Financing should not be a goal in itself but a logical and natural evolution of a rigorous process of company strategy planning; financing often represents a tool to implement a specific strategic objective of the company.
If this topic interests you or if you are concerned with the operational and strategic planning of your company, you can write to me at contact@florinmpop.ro.