Dashboard - Cashboard

by Keith McAslan, Partner, CxO To Go

Introduction:
Most CEO’s and small/medium business owners only review the financial position of the business with their Bookkeeper/Controller two to three weeks after the month has ended. This is like driving your car forward while looking exclusively in the rear view mirror – it doesn’t work. Most CEO’s and business owners focus on the “bottom line” (net income, EBIT or EBITDA), and fail to recognize that “Cash is King”! The Dashboard–Cashboard is a simple tool that is forward looking and helps the business understand the drivers of cash and projects the cash position.

The Key Benefits of the Dashboard - Cashboard
The benefits of a business implementing a weekly Dashboard-Cashboard include:
• It provides a forward looking perspective to the cash position of the company for the week ahead and identifies and any potential cash issues.
• When combined with a 13 week cash flow forecast the CEO and leadership team always have knowledge of the cash roadmap and can take pro-active action if required.
• The order board and sales funnel provide insight to the effectiveness of the sales efforts and highlight any potential revenue shortfalls or significant orders pending for the team to take action.
• The Dashboard-Cashboard becomes part of the weekly business review and all key leadership members become keenly aware of the importance of cash and can take action ranging from: communicating to vendors and deferring payments, sales staff assisting in the collection of receivables, focusing the sales staff on moving customers through the sales funnel and closing orders.
• Once the organization is focused on cash on a real time basis versus reviewing the results of operations three weeks after the month is over, they take ownership and realized they can individually impact the success of the business.
• The bookkeeper/Controller now becomes an active member in managing the business and not just the “Bean Counters” who reports after the fact and can help guide the business.


Dashboard – Cashboard example:





Conclusion:
Businesses that implement a Dashboard-Cashboard typically are more successful than businesses that do not have one, because they are pro-actively managing the business, looking forward and adapting to changing financial circumstances. However, it is highly recommended that a business implement a 13 week cash flow forecast discipline in conjunction with the Dashboard-Cashboard. Additionally, successful businesses typically have a monthly financial forecasting process that projects sales, capital expenditures, operating expenses, profitability and issue a twelve month income statement, balance sheet and cash flow analysis. CxO To Go™ executives work along side the CEO and leadership team to produce professional, sophisticated, effective and standardized financial projections (CFOCast™).

CEO’s and owners of small/medium business should have a part time/virtual CFO with financial and operational experience to supplement their skills and experience. The inclusion of a part time/virtual CFO as the “Trusted Advisor” to the leadership team enhances the overall capability of the business and is a key component towards the future success of the business.

Keith McAslan is a Partner with CxO To Go a national professional services company headquartered in Denver, Colorado that provides on-demand C-Level expertise and best practices to client companies on a part time, flexible, and affordable basis. Keith is sought after to provide advisory services as the Trusted Advisor to Owners and CEO’s. By utilizing his extensive experience as a successful financial and operational C-level executive, Keith brings a results driven leadership style to complex situations.

McAslan’s expertise includes: financial advisory; management consulting; part time, interim & virtual CFO, COO and CEO; debt and equity financing; turnaround management; acquisition and divestiture advisory. Most recently Keith, was instrumental in the successful sale of Western Forge to Ideal Industries. As the interim CFO with finance and private investment transaction experience, he guided the management team through the complex sale and due diligence process completing the sale from prospective buyer presentation to close within 60 days. Please contact Keith at 303-520-2493, www.cxotogo.com, or kmcaslan@CxOToGo.com to discuss your business needs.

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Crafting a Business Plan

by Keith McAslan, Partner, CxO To Go

Your company’s business plan can be one of your most important business documents –IF it is well written and usable. A plan that is unrealistic, too simplistic or a monstrosity parked in a binder is useless. Business plans written by CxO To Go are crafted with the end use in mind. Depending on the need of the business, the business plan will have different characteristics. In some cases, it might be necessary to have two versions of your business plan.

If the plan is to be used to attain funding from financial institutions or investors, its tone will be geared for that type of reader. The business must be described as a well conceived and viable business. Investors want to assess the comprehensiveness of the idea and/or the products and services. They will vet the management team and their experience and the financials will be rigorously reviewed. The business plan must not only be compelling, but thorough and detailed.

If the plan is to be used by an entrepreneur who intends to use the plan as a road map for his or her business, it will be written with the goals of the business in mind. Attention to the objectives of each goal and steps to achieve those goals will be included. Practical financial projections are included and the emphasis is on the requirements for starting and growing a profitable business.

Engagement

All business plans must reflect the leadership, management, culture and ambitions of the business. As such, it is really important to CxO To Go to make sure we have a good relationship right from the start. Initially, we provide a complimentary consultation with you to understand your needs and planned use of your business plan. This allows you to get to know our business plan writers and judge their work style, depth of knowledge and deliverables. At that time, we will also be assessing your business planning needs and the level of information, research and documentation already in place that can be used in the development of your
plan.

As we agree to go forward together, CxO To Go will provide a written proposal outlining the scope of work, the deliverables from all involved, due dates and price. During the project, should requirements be added or taken away, the proposal will be adjusted accordingly. The point is to make sure that all expectations are met, on time and at the agreed upon price.

Methodology

In addition to the Executive Summary (which provides a synopsis of the plan) a business plan is made up of five distinct sections; each with important components. An appendix may be included if there is substantial supporting content to reinforce statements made in the plan.

CxO To Go will work with you to survey the information needed to complete each section. By following the outline below, a thorough plan can be crafted narrating the purpose of the company, your products and services, how you going to produce, market and sell your products and services, who and how you will manage the business and how it will be financed and sustain profitability.

Some of these sections will be one or two sentences in length. It is not necessary to have an abundance of words. Brevity with specific content is preferable. Depending on the type of your business and your point in the organization lifecycle, some of these sections will be more robust than others. A few sections may not be pertinent to your business at all.

It is important to remember that your plan will only be as good and thorough as the information you share.

1. Description of Business
a. Company description
i. Legal company name, dba’s, brand names, model names,
web domain names, legal form of company, ownership,
business location(s), patents, etc.
b. Company mission and vision and values
i. Statement of company purpose or objective
ii. Long term vision, goals, business strategies
iii. Value statement of the firm
c. Market opportunity or concept
i. Description of your industry
1. industry maturity, seasonality affects, economic factors,
government regulations, technology advances
ii. Industry analysis and trends
1. size and growth of your industry
2. distribution channels
iii. Strategic opportunities within the industry
d. Stage of development
i. Clear sense of how far along the company is in terms of
development, customers, revenue, technology, etc.
e. Overview of products and services
i. Description of all products and services. What need do they fill?
How do they save time or money? Why should someone buy?

f. Milestones
i. Outline of milestones achieved to date
ii. Future milestones to measure success
g. Community involvement and social responsibility
h. Exit plan / Strategy

2. Marketing
a. Target market
i. Thorough understanding of your customers
ii. Distinct, meaningful characteristics of market segments
iii. Demographic information
b. Marketing and sales strategy
i. Market size and trends
ii. Your company’s message (product, price, promotion and
place)
iii. Marketing vehicles and tactics
iv. Marketing budget
v. Sales structure and channels (sales personnel and process)
vi. Sales projections
c. Competition and market research
i. Competitive assessment
ii. Customer perceptions
iii. Competitive operational factors
iv. Market share distribution
v. Future competitors
d. SWOT Analysis (Strengths, Weaknesses, Opportunities and Threats)
i. Your strategic position (advantages and barriers)
ii. Risk analysis

3. Operations
a. Day to day functions of your company
b. Facilities
c. Production plans
d. Supply and distribution
e. Order fulfillment
f. Customer service
g. Research and development
h. Financial control
i. Technology plan and budget

4. Management and Organization
a. Histories and capabilities of management team
b. Personnel requirements
c. Compensations and incentives
d. Board of Directors, Advisory Boards and Consultants
e. Management style

5. Finances
a. Income Statement
b. Cash Flow Projections
c. Balance Sheet
d. Break-even Analysis
e. Sources and uses of funds


In the course of your business operations, it may be necessary to update assumptions,financial projections, milestone charts and management profiles. We are happy to update the plan whenever warranted. Please contact me to discuss your business plan needs at KMcAslan@CxOToGo.com or 303-520-2493.

The Personal Board of Director - The CEO's "Trusted Advisor"

By Keith McAslan, Partner, CxO To Go

Introduction:

Many CEO’s and small/medium business owners do not have a Board of Advisors, or Board of Directors to help hold them accountable and direct the business towards the ultimate goal of monetization with an exit strategy. If the business cannot afford a full time CFO, a part time CFO with a broad based business experience can be that “Trusted Advisor”. Ideally the CFO who is the “Trusted Advisor” not only has financial experience, but operating experience as well to provide global insight to issues facing the business.

The Value Add:

The CFO who becomes the “Trusted Advisory” to the CEO delivers results-driven, professional counsel and solutions for complex situations. The key benefits for the CEO and the organization having a “Trusted Advisor” include:

· The CEO can think and act like an entrepreneur, focusing on business growth and customers.

· A “Trusted Advisor” who is an accomplished financial/operational executive quickly understands the key issues and can support the CEO, providing alternatives and recommendations to complex problems as part of the decision making process.

· Allows the CEO to think strategically, but provides the additional bandwidth to implement effective tactics.

· Drives the CEO and the business to plan for the long term building annual business plans and three year strategic plans.

· Provides a higher level of analytical support relating the results from operations to the financial statements and explains the variances to budget and the prior year.

· Helps identify key company initiatives on which to focus and in what priority sequence.

· Prepares the CEO and the business for an ultimate exit strategy to monetize the investment

· Provides an external challenge to the CEO’s decision-making process, the Trusted Advisor doesn’t tell the CEO what they want to hear, but tells them what they need to hear.

· Ensures all perspectives are considered in the decision making process to arrive at the best decision for the business.

· Execute decisions – most businesses in crisis have the common problem of either not making decision on a timely basis or making the wrong decisions.

· Develop and implement operational plans based on the strategy developed in the business plan

· Uses prior broad based industry experience to ensure the marketing, sales, engineering, manufacturing, logistics and human resources are executing according to best practices.

· Provides treasury and capital market support to secure funding alternatives and interfaces with the lenders regarding the performance of the business

· The “Trusted Advisor” becomes the coach, mentor and key confidant of the CEO and the one person the CEO relies on the most for unbiased, straightforward communication.

The Key Benefits of the “Trusted Advisor”

• Sustainability - Business answers from an experienced “Trusted Advisor” provides unbiased, on-target, and unencumbered feedback.
• Accountability - The more accountability the CEO and the business have the better everyone will perform. Without accountability, goals will be missed instead of made. The “Trusted Advisor” provides accountability, measurement, and metrics from the CEO down to ensure goals are more than just wish lists!
• Focus – The CEO gets to focus on the most urgent and important things, so the company produces the results it seeks in its business and strategic plans.
• Trust – The “Trusted Advisor” has developed a relationship of trust with the CEO by demonstrating, credibility, reliability, respect, business acumen and transparency.
• Communication – The CEO and the “Trusted Advisor” communicate frequently and openly about all issues impacting the business, with the “Trusted Advisor” providing a safe sounding board for the CEO.
• Networking – The “Trusted Advisor” typically has a network of business contacts that expands the CEO’s network and provides the business greater reach in the business community.

Conclusion:

CEO’s and owners of small/medium business should have a “Trusted Advisor” with financial and operational experience to supplement their skills and experience. The inclusion of a “Trusted Advisor” to the leadership team enhances the overall capability of the business and is a key component towards the future success of the business.

Keith McAslan is a Partner with CxO To Go a national professional services company headquartered in Denver, Colorado that provides on-demand C-Level expertise and best practices to client companies on a part time, flexible, and affordable basis. Keith is sought after to provide advisory services as the Trusted Advisor to Owners and CEO’s. By utilizing his extensive experience as a successful financial and operational C-level executive, Keith brings a results driven leadership style to complex situations.

McAslan’s expertise includes: financial advisory; management consulting; part time, interim & virtual CFO, COO and CEO; debt and equity financing; turnaround management; acquisition and divestiture advisory. Most recently Keith, was instrumental in the successful sale of Western Forge to Ideal Industries. As the interim CFO with finance and private investment transaction experience, he guided the management team through the complex sale and due diligence process completing the sale from prospective buyer presentation to close within 60 days. Please contact Keith at 303-520-2493,

Western Forge Sale Endorsement

"Keith McAslan joined me as CFO for a distressed hand tools business in desperate need of financial leadership. Keith's experience leading turn-arounds within private equity organizations allowed him to make an immediate impact. Our challenge was to quickly position the company for sale. McAslan was instrumental in dissecting the financial drivers of the business and identifying improvement areas that deliver quick returns. Because of Keith’s effort and expertise we were successful in securing a strategic buyer in record time at an attractive price.

Keith is as comfortable leading teams as he is digging into the details. He is a very approachable, hands-on leader that is able to quickly assess situations and activate corrective action plans. This deal could not have been done in the compressed timeframe without Keith McAslan's leadership." Mark A. Gold - President & CEO Western Forge

Lender Financing One of the Secrets to Improve Success in Funding

By Keith McAslan, Partner, CxO To Go

During these difficult economic times, one constant complaint we hear all the time from small and medium business owners is the difficulty they have in securing debt financing. Clients of CxO To Go have been successful teaming with our professionals to develop a Bank Proposal Package (“BankSell™”). BankSell is not a business plan, rather a comprehensive turnkey package written so bankers and lenders will take action.

Most small business owners work with their bookkeeper or Controller to compile information they think the Lender would want to see. They then schedule an appointment with their Bank Officer to request a loan. CxO To Go professionals lead you through a more professional 3 step process: 1) prepare a Bank Loan Proposal Package that “tells the story” to the Banker describing your businesses; 2) presents the financial information the lender requires; 3) presents your business in the best light - an organization that is professional, has done its homework, and can stand behind their numbers. Typically, businesses that present a comprehensive Bank Loan Proposal Package move up in the review priority sequence, as lender’s have less work to do gathering information. The result is that the loan application is promptly sent to loan committee for review and approval faster.

The typical elements CxO To Go includes in a Bank Proposal Package are:

• Executive Summary (“PowerPuncher™”)
• Business Plan (“PowerPlan™”)
• Personal Financial Statement
• Recent Credit Report with FICO Score
• Management and Ownership Profile
• Financial projections for the current year
• Most recent 3 years tax returns
• List of all assets including appraisals, copy of purchase orders, acquisition price and current net book value. The lenders typically like to see an estimate of orderly liquidation value (“OLV”) and forced liquidation value of the assets (“FLV”)
• Current aging report for accounts receivable and accounts payable
• Organizational Documents
• Information related to other loans, leases, etc.
• Website – URL link and high resolution color copy of the Home Page and About Us page
• Source and Use of Funds Statement for the proposed loan
• Application from the lender

If your business is seeking debt or lease financing, we recommend you contact CxO To Go at 303-520-2493 or kmcaslan@CxOToGo.com to give your business an advantage over the competition with a professional Bank Proposal Package (“BankSell™”). Additionally by leveraging our BizKing™ Advisory Service we will accompany you to your meetings with the lenders giving you an unparalleled advantage.

Guided Sale of Manufacturer in 60 Days

Keith McAslan, Managing Partner of McAslan Consulting, was instrumental in the successful sale of Western Forge to Ideal Industries. As the interim CFO, McAslan having both CFO and private investment transaction experience, guided the management team through the sale and due diligence process completing the sale from prospective buyer presentation to close within 60 days.

Ideal Industries Inc. agreed to buy the Colorado Springs-based Western Forge from MW Universal Inc. just two years after MW paid $40 million for the hand tool manufacturer. Sycamore, Ill.-based Ideal was founded in 1916 and has grown into an international manufacturer and distributor of connectors, testing equipment, tools and supplies mostly for the electrical, communications and data transmission industries. The privately held company employs 1,200 worldwide. Western Forge makes screwdrivers, pliers, punches and other hand tools for a variety of major retailers including Sears and Home Depot. The company was founded in 1965 in Defiance, Ohio, and moved a year later to Colorado Springs.