Enhancing Financial Health
Let us help you improve financial viability and sustainability
Before we’re ready to climb to higher altitudes, we will work with your team to improve health at the current level. While the Foundation level was largely historical, or rear-facing work, focused on accounting and internal processes, health is where we begin to shift our view to what’s in front of us, helping to get the business in its best shape to tackle the rigors of growth ahead.
We delve into the production and operational side of the business, understanding, creating, and analyzing metrics, KPIs, and scoreboards that can be used to manage the business. Reviewing cost accounting and product/service pricing provides opportunities to improve performance. Margin analysis by service/product line, location, etc., are invaluable sources of improvement opportunities.
We will also look into your current capital structure and capital requirements, taking into account future growth. How does it compare with industry benchmarks, and what are areas for improvement? We will review all bank agreements and bank covenants and work to resolve issues, and proactively track compliance and negotiate better terms with lenders when appropriate. A natural exercise that complements our DNA Model forecasts is forecasting capital growth requirements and implementing initiatives to cover those requirements.
Finally, we will collaborate with your insurance, legal, and employee benefit advisors, reviewing health insurance, property/casualty insurance and employee benefits packages and identifying potential coverage improvements, risk mitigation, and cost savings..
What We Focus On In The Health Level
Without financial health, it is difficult for a business to achieve both growth and profitability. Your CFO will work with you to ensure that your business has long-term health for success today, tomorrow, and far into the future.
Your CFO will guide you through the nuances of budgeting/forecasting, understanding production/operation metrics, and improving your relationship
Budgeting and forecasting are key to your business’ financial health. Your CFO will work with you to develop (or refine) budgeting and forecasting. This typically includes the P&L, cash flows, balance sheet and bank covenants. A unique part of the FocusCFO model is that we create a DNA Model for your business. This operating model matures over time and, as our understanding of your business and your understanding of the financial modeling improve, the DNA captures a comprehensive view of your business. These tools can be used in on-demand ‘what if’ scenario building driving dialogue about where you want to take the business and what that might look like.
- Budgets / Monthly Reviews
- DNA Model / Forecasting
- Financial Analysis / FP&A Function
- Sales Forecasting
For optimal production and operational health, your CFO will guide you in creating, analyzing, and understanding metrics, KPIs and scorecards that can be used to manage your business.
Your CFO will identify opportunities for improvement and increased efficiency through:
- Metrics / KPIs / Scorecard
- Cost Accounting, pricing reviews
- Margin and profitability by product line
- LEAN process
- Operating Systems ERP/MRP/Production
Your relationship with your banker is central to your business’ financial health. Your sherpas will guide you in improving your relationship with your banker by reviewing bank agreements and covenants, working to resolve issues and proactively negotiating better terms with lenders.
Complemented by the budgeting and forecasting strategies, your CFO will forecast growth requirements and guide you to implement initiatives to cover those requirements so that you have the capital you need to reach the next level.
- Capital Structure (Debt / Equity)
- Bank Agreement Review / Covenants
- Understand Growth Capital Requirements
Your CFO will collaborate with health advisors to help you find potential coverage improvements, risk mitigation, and cost savings. Health advisors may include:
- Health Insurance Broker
- Property / Casualty Broker
- Employee Benefit Providers