Almost every company runs into challenges at various stages of growth. Including those who:
- Don’t have the financial resources to expand.
- Are always short of cash even though their business is growing
- Don’t know how their business is doing because of its cyclical nature.
- At making the profits they expect
- Find it hard to know what items to focus on.
Don’t worry; there are common problems that businesses face at nearly every stage of growth. We can help! Forget the thick staring at financial statements looking for a hidden answer. Financial improvement comes from an understanding of your cash flow. What are the drivers of profit and cash flow in your business? What are the KPIs to be watched, both leading and lagging, across the company and by function. We work with companies to identify their Profit/X, which they can use to drive decisions in the organization and measure results. Also, what is the Critical Number for the next 13-week sprint and the current year!
Cash flow is the lifeblood of the company. Where to Improve?
We work with you and your team to analyze your working capital and see ways to improve it, whether that be through:
- Understanding the levers to improve cash flow
- Improved Efficiency.
- Reduced mistakes.
- Changes to your business model.
Every company needs to track KPIs to see where it is going and how it is doing. However questions arise about:
- What KPIs are relevant?
- What information should you and your team get daily, weekly and monthly?
- How do you make sense of your financials statements?
We are here to help you answer these questions and minimize any surprises.
Marc has been a great coach and mentor for me as my company has gone through a tremendous amount of change in the last 4 years, including the sale of the business to an ESOP, the many ups and downs of getting the team aligned and with timely advice on how to retrench and fortify the business throughout the Covid-19 pandemic.
Marc is the best and he has vast experience in finance mergers and acquisitions and he knows how to run a business. . . . I give Marc Borrelli my highest recommendation.
Knowing the profit of your core customers is key to building a growth model. Many companies have identified core customers that are generating a sub-optimal profit and so they cannot realize the profits they seek. Identifying the correct core customer allows you to generate profits and often operate in “Blue Ocean.”
Working with many companies looking to grow, I am always surprised how many have not built a financial model that drives growth. I have mentioned before a financial model that drives growth? Here I am basing on Jim Collin's Profit/X, which he laid out in Good to...
You can only determine profitability when you know your costs. I’ve discussed before that you should price according to value, not hours. However, you still need to know your costs to understand the minimum pricing and how it is performing. Do you consider each jobs’ profitability when you price new jobs? Do you know what you should be charging to ensure you hit your profit targets? These discussions about a company’s profitability, and what measure drives profit, are critical for your organization.