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.