According to the Wall Street Journal, 60-80% of business owners don’t know what their financial statements are telling them.  I know what you’re thinking. “That’s not me.”

Well, prove it to yourself. Take our 1-minute quiz.

Profitability Begins With Visability

Visability begins with planning

The most effective  step to take towards profitability is planning.  The best tool for planning is the Cash Flow Forecast which gives you the information you need to intelligently budget and plan the timing of your receipts and payments resulting in a positive cash flow.  It also provides detailed visibility into profitability through past and present financial statements, allowing the experts at CFO to analyze and strategize additional ways to improve your bottom line.

Steps To Improve Profitability

Oversight, management, leadership, advisory and advocacy

By reviewing financial statements and overseeing the financial department, CFO Simplified will be able to help you improve your net income by identifying areas for cost reduction in a number of ways.  We’ll also be in a position to advise on your unique opportunities for increasing revenue.

Your Optimal Budget

Is the first step in building a lean operation and your unique roadmap for reaching your goals

-Helps entire company stay on track to profitability

-Provides quick, meaningful insights into areas that need attention or adjustments

-Helps you make good business decisions

 

CFO Simplified will evaluate your unique business and goals, and build an Optimal Budget (roadmap) to get you to your ultimate goal – a certain level of profitability.  The detail is important.  As you look at your monthly Income Statement, and compare that to your budget, you can determine where to make adjustments, if needed, to get yourself back on track.

As a company grows, the owner becomes more and more separated from the day-to-day operations.  However, a company’s financials directly reflect how the company operates.  CFO Simplified will help you evaluate your operations and implement your optimal budget across all departments to drive operational activities.  We’ll tighten your operations by developing a “to-do” list and guide that make improving your bottom line a team effort, allowing you more time to focus on other strategic ways of increasing profitability.

CFO Simplified will help you invest in automation that not only tracks your financials with precision, but assists you in identifying cost drivers of services/products and the true underlying metrics of your profitability, your business metrics.

Business metrics are not just numbers, they tell a story and unveil Key Performance Indicators (KPIs) that measure how your business is performing.  This includes all areas that impact your bottom line including production, sales, and even your banking relationship for instance.  If you’re not looking at these numbers, you may eventually see the end result show up on your financial reports. By watching defined metrics daily, weekly, monthly, you will identify trends, catch things that are starting to slip before they become problems, identify quickly if changes you’re making are having an impact on your bottom line.

As an entrepreneur, you are focusing on your business. A skilled CFO has the experience to identify those metrics that are important to your bottom line.

Trimming the budget and creating a lean operation is only a part of the picture when it comes to improving your bottom line.  Having an expert CFO will help with the following additional strategies for growth and profitability.  From automation to performing extensive research and analytics on your behalf, we will help you make good business decisions, avoid risk and guide you through complex transitions/transactions when necessary to reach your ultimate goals.

  • Use Your Business Metrics.  For example, you can eliminate services or clients that lose you money, and enhance or expand on services and opportunities that make you the most money.
  • Develop Optimal Pricing Strategies.  A good pricing strategy helps you to determine your optimal price point and maximize profits.  There are a wide range of factors to consider and various pricing strategies to employ, depending on your unique circumstances.
  • MA and/or Business Diversification.  Just like you diversify your portfolio, diversifying your business is a marketing strategy used to develop new or complimentary services and products, or you may consider merging with or acquiring an existing business.
  • Banking Relationships.  There are a lot of banks out there to help you succeed.  Partnering with the right bank will not only provide you with the cash you need to operate or expand, but also provide so much more.  The right bank will be able to help you make the best use of your cash, speed up the availability of your cash, and even help protect against fraud.
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Increase Your Bottom Line

Whether you are agonizing over poor profits, or boasting good profit margins, there are always ways to increase your profitability
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