- I do not feel that I am getting the right information as to how we are truly performing or to be confident that I am making the right decisions regarding the company.
- I need a highly-skilled CFO, but I do not want to add such a large fixed-cost to the business.
- Our company is not large enough to fully utilize a full-time CFO but we could certainly benefit from the skills of a highly-skilled CFO.
- Our company is not large enough to hire a top-notch CFO…but I need a top-notch CFO.
We provide CEOs with a highly-skilled, experienced interim and part-time CFO on a much lower variable cost basis to quickly meet their specific needs. Our CFOs have deep experience in your specific industry thereby minimizing learning curve, ensuring cultural fit and provide the best ROI to CEOs.
Result is CEOs bring to their company a highly-skilled CFO at usually 25% to 50% the cost of a full-time CFO with similar skills. As consultants we are not trying to protect our “jobs”. Our CFOs are solely focused on assisting CEOs to increase company profits, cash flow and ongoing value and delivering high ROI.
- Our sales forecasting process does not give me the information I need to have confidence in our future revenue and timing expectations to determine either our staffing or our material needs.
- We do not have a well-designed “business model” that shows us our forecasted profitability, cash flow and working capital based on different levels of revenue.
- What happens to our profits, cash flow and working capital if our sales shrink…if our sales increase?
We assist CEOs to truly understand the financial aspects of their business by developing and implementing dynamic sales forecasting and operating models to fit their business. The sales forecast segregates expected revenues based on status in sales cycle and also applies % probability to determine expected values. The operating model provides the operating costs and profits based on variable levels of sales.
Linking the sales forecast with the operating model gives leaders a very powerful forward looking view of their business.
- What are the key value drivers we need to measure in our business?
- What should we compare our results to? What is good? What is not good?
- How would a dashboard help me?
- How do we score our performance?
We determine with the CEO and other business leaders what the company’s critical business success measures are. Measurements need to be benchmarked with other meaningful data which can be a combination of company data and peer group. Benchmarking of measurements converted into scoring enable business leaders to “grade” how well the business is performing and to turn-around areas performing below expectations. We provide CEOs with dashboards as to critical business information to enable confidence in quick decision making.
- We do not currently budget. How can we utilize budgets to drive the right activity and mindset?
- Would a rolling forecast in lieu of a budget make more sense for our business?
- We utilize budgets in our business but I do not know if we are effectively using our budgets.
- What should be our targeted payback period for our capital investments?
- What is the added value to our company of our capital investments?
We answer these questions for CEOs and business leaders by determining how budgets are used in the business. We also work with CEOs and business leaders to determine if budgets truly match their business expectations and are enablers of the right actions. Payback period analysis and net present value calculations clearly show expectations for capital investments and are excellent tools for pricing and financing negotiations.
- Why are we so tight on cash?
- What can we do to speed up collection of our receivables?
- Do our customer and vendor terms make sense?
- Is our inventory at the right levels?
We assist CEOs and businesses leaders to understand their issues with working capital and cash flow. We develop and implement meaningful cash and working capital forecast models to enable CEOs and business leaders to clearly determine the cause of cash pressure and take corrective actions. Typical results include reduced financing costs, reduced stress associated with cash shortages and better vendor terms and pricing.
- Do our accounting and management reports really give me what I need to understand how we are doing in the business?
- I cannot trust our financial reports for my decision making or managing the business.
We work with CEOs and business leaders to ensure they are getting accurate and timely financial and operational reports that truly provide the data they need to make decisions and run the business. Providing the right financial and operational information accurately on a timely basis empowers decision making and increases the likelihood of achieving and exceeding company goals.
