In light of the increasing global economic challenges, the ability to achieve financial flexibility has become essential for companies to continue and grow. According to an article published by Forbes written by John Abu Said, Chairman and CEO of Halbrit Hargrove, this financial flexibility requires several strategies and long-term planning to ensure continuity in the face of crises.
Basic principles of financial flexibility
Abu Saeed explains in his article that building financial flexibility depends on having a clear vision and specific goals for the company. These basic principles guide a company’s financial strategies and help it remain resilient in the face of challenges.
It is essential that these principles reflect the company’s values and orientations, whether they are related to achieving profits or focusing on people.
Financial stability strategies
Abu Saeed pointed out the importance of managing capital intelligently. In the financial crisis of 2008, his company succeeded in overcoming the crisis by strictly monitoring expenses and directing efforts towards improving the customer experience, according to him.
A key strategy was to invest in a customer relationship management (CRM) system to improve communication and increase customer retention, which contributed to enhancing the company’s resilience to economic challenges.
Financial planning and risk management
According to Abu Saeed, risk management and careful financial planning are an integral part of achieving flexibility. Abu Saeed stresses the importance of developing clear emergency plans to deal with economic challenges. By evaluating expenses and setting financial priorities, companies can reduce the negative impact of crises.
Abu Saeed says that using tools such as the Entrepreneurial Operating System (EOS) helps companies clearly define goals and maintain accountability, which enhances their financial flexibility.
Achieving financial flexibility strategically
According to a Forbes article, developing financial flexibility calls for making financial decisions that reflect the company’s values and direction. For example, investing in AI technologies can save time for employees and improve customer experience, enhancing long-term value for the company.
Ultimately, Abu Saeed stresses that achieving financial flexibility requires an organized strategic approach that includes planning, risk management, and effective communication. By following these practices, businesses can be better prepared to deal with economic challenges and achieve long-term success.
