Driving the best fit and optimal financing structure for our clients.

Capital Planning and Corporate Finance Services

Leveraging our relationships and knowledge of the global financial markets, we support our clients in identifying funding needs, nature and sources that best meet their corporate goals and financial conditions.

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When you’re growing your startup, it’s easy to fixate on short-term challenges and goals.

How will you grow this year? What campaigns do you need to execute next quarter?

But in order to scale, you need to start thinking long term.

That’s where capital planning comes into play.

Capital planning is all about making strategic financial decisions for your company’s future and putting processes in place to implement them.

If you want to build the next unicorn, keep reading to learn more about what capital planning is and how to do it.

Table of contents:

What Is Capital Planning?

Capital planning is the process of outlining an action plan for the allocation and distribution of your company’s capital for several years into the future.

Other forms of financial planning (such as budgets, forecasts, and cash flow projections) tend to be shorter term, looking at the upcoming financial year or zooming in even further to the level of the quarter or month.

However, capital planning is a much more long-term process. It’s typically done for large-scale projects as opposed to day-to-day or monthly expenses.

For example, organizations engage in capital planning processes when they are interested in:

  • Acquiring new companies
  • Undertaking large-scale marketing campaigns such as rebrands
  • Developing a new product and taking it to market

Why Is Capital Planning Important?

Business developments like rebranding or acquiring and merging a new company are, as you’d expect, expensive undertakings.

They can easily cost millions of dollars and take over a year to be completed.

Before you commit to a project of that size, capital planning allows you to answer questions like:

  • Do we have sufficient capital to afford this project?
  • What if the cost of the project increases?
  • What opportunity costs are we missing out on?
  • What other expenses in our business are expected to change during this time?
  • What risks are involved in approving this spending now?
  • How reliable are our revenue streams?

Without a well-developed plan for capital spending, you run the risk of running through your war chest and can find yourself unable to meet financial obligations like debt repayments.