Strategic financial management is the study of finance with a long term view considering the strategic goals of the enterprise. Financial management is sometimes referred to as "Strategic Financial Management" to give it an increased frame of reference.

To understand what strategic financial management is about, we must first understand what is meant by the term "Strategic". Which is something that is done as part of a plan that is meant to achieve a particular purpose.

Therefore, Strategic Financial Management are those aspect of the overall plan of the organisation that concerns financial management. This includes different parts of the business plan, for example marketing and sales plan, production plan, personnel plan, capital expenditure, etc. These all have financial implications for the financial managers of an organisation.

The objective of the Financial Management is the maximisation of shareholders wealth. To satisfy this objective a company requires a "long term course of action" and this is where strategy fits in.

Strategic planning is an organisation’s process to outlining and defining its strategy, direction it is going. This led to decision making and allocation of resources inline with this strategy. Some techniques used in strategic planning includes: SWOT analysis, PEST analysis, STEER analysis. Often it is a plan for one year but more typically 3 to 5 years if a longer term view is taken.

When making a financial strategy, financial managers need to include the following basic elements. More elements could be added, depending on the size and industry of the project.

Startup cost: For new business ventures and those started by existing companies. Could include new fabricating equipment costs, new packaging costs, marketing plan.

Competitive analysis: analysis on how the competition will affect your revenues.