Strategic Planning Support and for Small and Medium Sized Businesses.
With a strong background in financial analysis and business planning, we can help with good advise on balanced approach to managing growth, liquidity, and profitability.
When a firm has aggressive expansion plans, one of the best tools to review the plan is a five year cash flow model. The five year cash flow model includes an income statement, balance sheet, and cash flow statement. Based on your revenue and profit projections, you can see how much of your plan can be financed with internal cash flow, and how much of the plan requires external financing. 
Making the right decisions on the management of your balance sheet concerning both liquidity and the level of capital expenditures will avoid disaster. After reaching critical mass and breaking even, most business can generally sustain growth levels of 15% without significant hardship. When management wants to grow more than 25% a year, serious planning is required for success. Many times a firm can only fund a capital budget of 5% of revenue without external funding or investment. When time comes to grow, we strongly advocate acquiring long life assets with long term funds, requiring a payback over the useful life of the asset required.
Many times it helps to have a fresh set of eyes to assist in plan validation. We can assist in trouble shooting and refining your business plan. In modeling your business, we include the liquidity and coverage ratios to assist in validating the amount of debt your business can carry and pay down. We are here to help.
Call us today to arrange a free strategic planning consultation at 956-622-9742.
