Small business failure rates increase with poor financial management.

 

We increase your odds of survival by working with you to design and use Excel-based financial models.

 

If you are a decision maker at a small company, or if you are a conduit to a decision maker at a small company, then I would like to:

  1. Engage with you by demonstrating that models, and modeling have a positive influence on the success of small  companies.

  2. Engage with you by agreeing to the notion that the small business environment is unique and that we both appreciate that uniqueness.

  3. Engage with you by introducing you to the services of an experienced and credible business practitioner who will work with you to improve the odds of survival of your company.

  4. Engage with you by offering a generous win-win proposal (see “My response to Covid-19” section on “About C. F. Advisors” page) that is too good for you to turn down.

Your challenges are not unique to you. Many emerging companies faced with similar issues have found success by using custom-designed Excel-based models.

See the following real-world examples:

Scenario

Re-active Cash management company culture.

Problem

Reliance on "Seat of the Pants" cash management style.

Proposed Solution

Implement a cash management model and procedures that track cash receipts and cash disbursements both historical and future, allowing for better decisions based on facts and not hope.

Scenario

Uncertain if my terrific idea has financial potential.

Problem

Limited financial skills to develop "Proof of Concept" analysis.

Proposed Solution

Develop a 50,000 ft level "Proof of Concept" model to show viability. Focus of the model: (1) cash investment needed; (2) expected break-even time; and (3) net cash flow after break-even.

Scenario

"I keep my monthly financial statements in that drawer over there to give to my CPA at year end. I don't understand them but as long as my sales keep growing, I am happy."

Problem

Limited appreciation that financial reports communicate information and not just data.

Proposed Solution

Develop an integrated financial reporting package containing: (1) Comparative Income Statement for (Month, YTD and Annual performance); (2) Stagger Chart; (3) Silo charts; and (4) "Big Picture" Dashboard.

Scenario

"I need to teach my Sales Reps that cutting prices is not always the best option."

Problem

No predictive financial tools that show consequences of price cutting.

Proposed Solution

This is a "teachable moment" so develop a simple financial calculator that shows the effect of price cutting on margin. Calculator could analyze the option of keeping the price and offering a bundled package.

Scenario

Promising start-up company needs equity financing to execute business opportunity.

Problem

Obtain funding or forefeit promising business opportunity.

Proposed Solution

Locate appropriate modeling skills. Discuss with "opportunity champion" to define model drivers, architecture and data flow. Complete "keystroking" phase. Review model outputs. Apply "smell test." Adjust as necessary. Craft the story, conduct many "dog and pony" shows and obtain the required funding!

 

If any of the above scenarios seem familiar to you, the problems haunt you and you are looking for solutions, e-mail me at wyn@cfadvisorsllc.com or schedule an introductory phone chat. Maybe you would welcome some brainstorming? Maybe I can help? But we should talk first.

The following comments were received from a customer after I worked with him to design and use a predictive financial model for their business.  They are worth repeating here:

“The services I have received from Wyn Davies have been extremely useful in starting my business.  Through Wyn's detailed financial models I can make precise decisions about how to plan for the future of my business with confidence.  The models he created are engineered to an extremely high level of craftsmanship, providing a wide range of valuable insight. 

Wyn's consultation process of asking detailed questions and taking the time to understand my business objectives on multiple time scales is a clear indication of his results-driven process.  Within a few meetings, Wyn was able to understand the complexities of what I was attempting to achieve.  This understanding translated into a succession of models that were iteratively improved upon.

Most importantly the models that Wyn has created have given a clear set of decisive possibilities allowing me to feel secure about how to invest the money available to me for a clear path to success.”