FINANCIAL HEALTH
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Financial health is your ability to meet your near-term and long-term commercial objectives. The primary goal of managing your financial health is financial sustainability - the ability to sustain the resources needed to continue helping your beneficiaries now and in the future.
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Understanding your organisation's social business model will help identify the value you offer - why beneficiaries engage with you - and how engagement and income are linked to delivery and costs. A simple financial dashboard will ensure the finances are easy to understand, providing transparency and alignment between management, staff and trustees. Having clarity on the financial gaps and risks allows a more targeted commercial strategy. A common strategy is income diversification - developing multiple sources of income so you can more easily adapt to changes in the sector.
Social Business Model > financial dashboard > COMMERCIAL STRATEGY
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The following questions will help you identify your gaps and decide where to start...
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Social business model: Can you talk about the unique value of your organisation in one or two sentences? Are you spending your time on the vital parts of the organisation, and doing it efficiently?
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Financial dashboard: Do the right people have the information they need to make smart commercial decisions? How might you make these decisions faster and with more confidence?
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Commercial strategy: What are the trends in your sector, and how might you reduce your exposure to a significant loss of funding?