Getting Your Finances Ready for Strategic Planning
Capital budgeting isn't something you jump into without preparation. We've worked with dozens of Australian businesses who thought they were ready—but then realized their financial records weren't quite where they needed to be. This happens more often than you'd think.
Think of this page as a practical checklist. Before we start talking about ROI calculations or NPV analysis, let's make sure your business has the foundational pieces in place. It'll save time later and give you much better results.
What You Actually Need Before Starting
You need at least three years of financial statements—balance sheets, income statements, cash flow. They don't have to be perfect, but they should be reasonably accurate. We can work with messy data, but it takes longer and costs more to sort through.
Capital projects require cash. Sounds obvious, but you'd be surprised how many businesses haven't mapped out their actual liquidity. Know what money you have available versus what's tied up in operations.
What are you trying to accomplish? Expansion? Equipment upgrades? New locations? The clearer you are about objectives, the better we can align budgeting strategies. Vague goals lead to vague results.
Capital budgeting isn't a quick exercise. Plan for several weeks of work—gathering data, running scenarios, reviewing options. If you're hoping to finish everything in a few days, you might want to adjust expectations.
Someone needs to make final calls. Whether that's you, your board, or a finance committee—figure that out now. Projects stall when approval processes aren't clear from the start.
Basic Concepts Worth Understanding First
You don't need to become a finance expert, but knowing a few key ideas will help conversations go smoother. Here's what comes up most often in our work with clients.
Time Value of Money
Money today is worth more than money later. This isn't complicated philosophy—it's just that you can invest or use money now. Capital budgeting is built around this idea.
Payback Period
How long until an investment pays for itself? Simple question with real implications for cash flow planning. Some projects recover costs quickly, others take years.
Risk Assessment
Every investment carries risk—market changes, operational challenges, unexpected costs. We look at these factors seriously, not just optimistically project best-case scenarios.
Rhys Pemberton
Financial Planning Advisor
"Most businesses have the data they need—they just haven't organized it properly. Spend a week getting your books in order before we meet, and you'll save yourself months of confusion later."
Sienna Whitlock
Capital Strategy Specialist
"I've seen companies rush into capital projects without proper groundwork. It rarely ends well. Taking time upfront to understand your position isn't wasted effort—it's essential preparation."
Fletcher Ashworth
Business Analysis Consultant
"The businesses that do best with capital budgeting are the ones that come prepared with questions, not just expectations. Know what you don't know, and we can help fill those gaps."
Ready to Discuss Your Situation?
If you've got your financial records reasonably organized and have some clarity on business goals, we can start a conversation. Our autumn 2025 program begins in late March, with preparation sessions starting in February.
