Businesses come with many challenges and cycles. You need a partner that understands the financial challenges at each stage. We’ll help you seek to maximize opportunities in your business during its various stages, and therefore we will work to allow the business stages seeking to maximize opportunities for your financial plan.
Our goal is to be ready to help your business move forward successfully. Contact us today!
Cash-flow planning is paramount. The main challenges of the business are obtaining customers and delivering the product or service.
Your organization is a simple one—the owner does everything and directly supervises subordinates. Systems and formal planning are minimal to nonexistent.
The company’s strategy is simply to remain alive.
Your business has demonstrated that it is a workable business entity. You have enough customers and products or services to keep them. The business shifts from mere existence to the relationship between revenues and expenses.
Time to consider whether to exploit the company’s accomplishments and expand.
A key issue is whether to use the company as a platform for growth or as a means of support for the owners as they completely or partially disengage from the company. Size and market penetration begins to ensure economic success. Earnings lead to average or above-average profits.
Continue growth and require functional managers to take over certain duties. Cash is plentiful and the main concern is to avoid a cash drain in prosperous periods to the detriment of the company’s ability to withstand the inevitable rough times.
The business can be sold or merged at a profit, or subsequently be stimulated into growth. Among the important tasks are to make sure the basic business stays profitable so that it will not outrun its source of cash and to develop managers to meet the needs of the growing business. Systems should be evaluated with attention to forthcoming needs. Operational planning and strategic planning is extensive and deeply involves the owner.
Key problems are how to manage rapid growth and how to finance that growth.
Building cash and maintaining cash flow that is not eroded by inadequate expense controls or ill-advised investments. Developing the competency of key managers or hiring very competent managers. Investing in technology for the future of the business.
This is a pivotal period in a company’s life as it can become a big business or it can be sold for a significant profit. The greatest concerns of a company entering this stage are, first, to consolidate and control the financial gains and, second, to retain the advantages of small size, including flexibility of response and the entrepreneurial spirit.
Owner and the business are quite separate, both financially and operationally.
