Correct capital planning and sourcing can improve returns. Your sense of capital allocation will improve, having a clear company goal (investing or otherwise) in mind. Remembering a few simple things about effective capital allocation will allow you to overcome any plateaus in business growth.
The importance of having a well-defined investment strategy cannot be understated. If there are any problems with the company’s current investing practices, the problem should be rooted out at the source to prevent further complications. If the strategy does not incorporate most of the following elements for highly effective capital allocation, then a new strategy should be adopted:
A priority on investments. Having a defined marker for value. Define what exactly your company values and act accordingly.
A clear focus on where the company wants to compete.
An ownership mindset. This mindset keeps the company in mind.