Financial Awareness

Every business decision has a financial impact. How adept are your leaders at anticipating the financial impact their decisions will have?

Financial Strategy

Are your leaders prioritizing their direct reports’ efforts to assure that your company is gaining the greatest return with the least investment?

Financial Impact

If the answer is no to the above questions, you’re not gaining the profitability and growth in value of your business that you deserve. You’re also not developing potential buyers for your business when you choose to leave…or to protect your family in case you become disabled or die.

Improved profitability, increased value of your business and, potentially, willing buyers of your business when you choose to leave, can all be yours with my Financial Awareness & Strategy program.

Program overview

In the awareness portion of my Financial Awareness & Strategy program, your leaders will learn how their decisions affect your company’s:

  • Profitability
  • Cash flow
  • Bankability

Most decisions made in business do NOT consider all three aspects of business success. Consequently, businesses experience unpleasant, unintended consequences which they later relent. As your leaders become more adept at assessing the impact their decisions have on all three financial aspects of your business, you’ll experience greater profits with a smaller infrastructure, few (if any) cash flow issues and you’ll be able to go to any commercial bank and get the financing you need on more favorable terms than your competitors.

In the strategy segment of my Financial Awareness & Strategy program, your leaders will learn how to use financial ratios to help them identify opportunities for improving financial results and prioritizing their efforts on the basis of which will provide the greatest financial impact with the least effort. Here are some examples of the thought processes your leaders will develop:

Examples

The average age of your accounts receivable is growing i.e. customers are paying more slowly. Most of the leaders I’ve dealt with over the years have immediately decided to boost collection efforts. They fail to realize that there may be factors causing customers to slow payments. Factors like:

  • Morale issues within their company.
  • Quality issues that create operating problems for customers.
  • Late deliveries which result in customers missing delivery dates.
  • Lack of, or reduction in, customer support.

Sales declines often result in leaders adding pressure to the salesforce to perform when in fact sales are declining because:

  • The decision to minimize inventory resulted in late deliveries to their customers.
  • Customer support is more cumbersome due to a decision to reduce costs in this area.
  • The salesforce is focused solely on new accounts, precluding strong relationships with existing customers.
  • Leadership has become complacent with prior success enabling competitors to outperform them.

These are just two examples of the insights that leaders gain in my Financial Awareness & Strategy program.

If you’d like more information on how to build Financial Awareness & Strategy in your business…and develop potential buyers for your business, send me a note using the form below and I’ll be in touch shortly.