1. Entrepreneurial stage of enterprises
1. 1 enterprise risk
In the initial stage, on the one hand, the product function is imperfect and the quality is unstable, and at the same time, because the product is not recognized by customers and lacks effective sales channels, the product lacks the market; On the other hand, because the enterprise has just started, people, talents, materials and other resources are lacking, and the budget and cost control system of the enterprise is not perfect. At this stage, the enterprise is characterized by high operating risks.
1.2 enterprise financing
On the one hand, in the initial stage of enterprises, the borrowing capital of creditors is based on high risk premium, and the financing cost is too high. At the same time, the credit level of enterprises is low, and debt financing lacks credit and guarantee support. On the other hand, in the initial stage, enterprises generally have no or little taxable income, and debt financing will not bring tax-saving effect to enterprises. Therefore, the financing channel of enterprises should be low-risk equity capital, so as to ensure the survival and future growth of enterprises. In terms of specific financing methods, it is to raise funds by absorbing direct investment, issuing stocks and internal accumulation.
1.3 Enterprise investment
Enterprises have no stable market share in the initial stage, and should pay attention to survival and initial capital accumulation. Investment should adopt a centralized investment strategy, that is, gain development through internal development, open up markets and strive for a dominant position.
1.4 dividend distribution
In the initial stage of an enterprise, due to high operating risk, low and unstable income and poor financing channels, retained income is the only source of funds for the enterprise. Therefore, the retained earnings should first ensure the needs of future investment, and at this time, the dividend distribution strategy should be adopted. The disadvantage of this dividend distribution policy is that it is not conducive to investors to arrange their own income and expenditure, and it is also not conducive to establishing the company image. But the current low score is for the future high score, which is beneficial to shareholders' income in the long run.
1.5 financial budget
On the one hand, there are a lot of capital expenditure and cash expenditure in the initial stage of enterprises, on the other hand, the market prospect and future cash flow are uncertain. At this time, the budget model should be a budget management model based on capital budget, that is, the total budget of the total expenditure planning of the proposed investment project, the project budget for project feasibility analysis and decision, the project financing budget, and the procedures and budget methods for determining the capital budget from the mechanism and system.
2. Enterprise growth stage
2. 1 enterprise risk
During this period, on the one hand, the products and quality of enterprises improved rapidly, and the products were gradually accepted by the market; On the other hand, the number and quality of employees have improved, forming a certain scale of personnel. At the same time, the enterprise budget and cost control system are improving day by day, and the enterprise has made certain profits and accumulated certain self-owned funds. These favorable factors make the business risk of the enterprise lower than that in the initial stage.
2.2 Corporate Finance
At this stage, the business risks of enterprises are still high. According to the requirements of reverse collocation of operational risk and financial risk, financial risk should be properly controlled at a moderate level at this time. On the one hand, enterprise financing is the capital injected by new investors (the enterprise has withstood the test of the market and its operation is relatively stable, and the risks assumed by new investors are lower than those of venture capitalists); on the other hand, a small amount of debt financing can solve the capital shortage of enterprises, and at the same time, debt financing can bring financial leverage effect to enterprises.
2.3 Enterprise investment
At this stage, enterprises can continue to develop in depth and breadth through external expansion or self-expansion, and make full use of their own advantages in products, technologies and markets, so as to extend the value chain or expand the scale of enterprises, achieve economies of scale, gain more strategic benefits and achieve rapid expansion.
2.4 Dividend distribution
At this stage, enterprises have certain surplus capital, which can improve the level of dividend payment, enhance the market image of enterprises and attract investors. However, the disadvantage of this dividend distribution policy is that dividend payment is out of line with the profitability of enterprises, so it is not suitable for enterprises to adopt it for a long time except in the growth stage.
2.5 financial budget
At this stage, enterprises are still facing operational risks and financial risks, so the focus of strategic management should be the marketing of enterprises. At this time, the budget model should be a budget management model based on sales budget, that is, first, relying on the market, making sales budget according to sales forecast; Secondly, based on the principle of "fixed production by sales", the functional budgets such as production and expenses are compiled; Finally, on the basis of functional budget, a comprehensive financial budget is prepared.
3. Enterprise maturity stage
3. 1 Enterprise Risk
At this stage, on the one hand, the product, price, market and cash flow of the enterprise are relatively stable, the visibility and credibility of the enterprise are improved, and the external financing channels are smoother. On the other hand, the number of employees, sales revenue and enterprise assets have reached a high level, and the system of enterprise budget and cost control is stable, which makes the business risk of the enterprise at this stage very small.
3.2 Corporate Finance
At this stage, due to the small business risk, the expected earnings before interest and tax are much higher than the profit per share, resulting in a large amount of cash flow, so the enterprise has the ability to bear certain financial risks. Therefore, enterprises can use a large amount of debt to raise funds and use the financial leverage effect to avoid taxes reasonably. However, it should be noted that at the same time, the increase in financial risks caused by liabilities must be considered.
3.3 Enterprise investment
At this stage, the power of enterprise agglomeration is released through various channels, thus realizing the sustainable growth of enterprises. Appropriate diversified investment strategies can be adopted. Through the implementation of diversification strategy, enterprises can choose to enter new business activities that are fundamentally different from the original business characteristics, occupy more markets and explore new markets, and find ways to continue to grow.
3.4 Dividend distribution
At this stage, although enterprises have abundant capital surplus and stable profitability, the reinvestment opportunities of enterprises have narrowed, and it is difficult for enterprises to find investment projects that meet the expected rate of return of shareholders. At the same time, the enterprise has sufficient cash flow and strong dividend payment ability, and the dividend distribution policy can adopt the dividend distribution strategy of increasing dividend payment rate, and distribute surplus funds to shareholders to maximize shareholders' wealth.
3.5 Financial Budget
At this stage, because there is little room for enterprise products to rise, the focus of strategic management should be the cost of enterprises. At this time, the budget model should be a budget management model based on cost control, that is, the expected income and market price are known variables to plan the total budget cost of enterprises; Secondly, based on the total budget cost, the total budget cost is decomposed into all management departments or units where the cost occurs, forming the budget cost that constrains the behavior of each budget unit.
4. Enterprise recession stage
4. 1 enterprise risk
The enterprise is in recession. On the one hand, products, equipment and technology are aging, and sales revenue and profits have fallen sharply, showing a negative growth trend. On the other hand, it reduces the degree of allocation and optimization of people, money and things, and reduces the effectiveness of the system. At the same time, a large number of accounts receivable reduce the cash flow of enterprises. All kinds of unfavorable factors make enterprises have the characteristics of high operational risk at this stage.
4.2 Corporate Finance
Enterprises in recession still have certain financial strength. With their existing industries as the backing, the strategy of high debt financing is feasible for enterprises themselves. Enterprises can avoid or delay bankruptcy by borrowing, and at the same time avoid taxes reasonably to maximize their profits.
4.3 Enterprise investment
At this stage, if the enterprise is in a strong competitive position in the market, it can consider reorganizing the industry by merging small competitors until it has the control of market share. Get more financial returns through market control. On the other hand, for those unprofitable businesses that occupy a lot of money, enterprises can adopt exit strategies such as divestiture or liquidation to enhance their market competitiveness in new investment fields.
4.4 Dividend distribution
At this stage, due to the lack of suitable investment projects, the dividend distribution policy can adopt the distribution policy of basically distributing profits to shareholders, so as to repay investors and enhance the company's image.
4.5 Financial Budget
Because the free cash flow of enterprises is idle at this stage, the focus of strategic management should be the recovery and utilization of cash. At this time, the budget model should be a budget management model with cash flow as the starting point and cash flow inflow and outflow control as the core, that is, with the help of cash budget, the source, utilization and balance of cash in enterprises and departments should be marked to avoid unnecessary outflow.
5. Financial strategy under the background of financial crisis
The above is the financial strategy in the normal life cycle of the enterprise. For the financial strategy of enterprises under the background of financial crisis, we can adopt prudent strategy and contrarian growth strategy. Safe and steady measures, such as ensuring the resource demand of core elements, multi-channel investment, attaching great importance to cash flow management, strict cost control and establishing financial early warning mechanism, etc. Counter-trend growth strategies, such as timely acquisition of some undervalued high-quality enterprises, to achieve synergy.