When business owners think of strategy, it’s in regard to markets, offerings and scalability. Rarely, is it in terms of finance…except profitability. Often overlooked are cash flow and bankability…until they become an issue.
A holistic financial strategy incorporates all three essential elements of a successful business:
- Profitability
- Cash flow
- Bankability
These three elements are reflected in the three financial statements:
- Income statement for increased profitability.
- Cash flow statement for better, more predictable cash flow.
- Balance sheet for bankability on your terms.
A successful financial strategy incorporates all three elements into the decisions you and your staff make. The greater the financial acuity you and your employees possess, the better the decisions all of you will make.
In my Financial Awareness & Strategy program, you and your employees learn to use financial ratios to establish a strategy and action plans to:
- Identify opportunities to improve all three elements of your company’s finances.
- Prioritize these opportunities based on which will produce the greatest result with the least effort.
- Move more quickly through the entire list of opportunities.
That’s what I mean when I talk about financial strategy.
Examples
Here are some examples of what my financial strategy approach produced:
- Within a month, a client cut her billing cycle from 3 weeks to 2 days, generated $350,000 in cash, paid off her line of credit and left it untapped for 4 consecutive months.
- Raising prices took a residential homebuilder from a six-figure loss to a six-figure net profit in one year.
- Within 6 months, reduced the average age of the accounts receivable from 55 days to 38 days (three days better than the industry average) enabling the company to negotiate away all of the restrictive loan covenants the bank had put on them.
- Within three years took a company from a $75,000 bottom line to a $750,000 bottom line.
Additional benefits
When you educate your employees to be more financially aware and financially strategic in their thinking, you not only develop a workforce that makes better financial decisions, you position them to become a well-qualified buyer of your business whenever you choose to leave.
That’s right you develop a guaranteed buyer for your business who will help you grow the value of your business, then pay your price whenever you choose to leave. In other words, you not only gain a better buyout price, you enjoy greater financial success while you own it.
All of this can be yours with my Financial Awareness & Strategy program. Call today to begin enjoying these benefits…314-707-3771.
Resources
Making the EXCEPTIONAL Normal program helps you identify and nurture emerging leaders who elevate all around them to higher levels of performance and greater job enjoyment.
Financial Awareness & Strategy program where employees learn to identify opportunities to improve financial results and prioritize these opportunities on the basis of which produces the greatest impact with the least effort. Greater financial awareness = Better decisions.
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