Establish The FIVE Habits of Profitability
Most CEOs avoid building a world-class Financial Operation because it's not what they were born to do. As a result, they pay the price when making decisions and getting access to Capital. The FIVE Habits are proven Financial Management methods, Not Cookie Cutter, adapted to your business; stay one step ahead to have Clarity, Confidence, and follow-through.
1. Achieve Positive Cash Flow
Does your business have a lot of cash to spare, or are you living paycheck-to-paycheck? Developing core strategies like a 12-week cash forecast allows you to get ahead of payments and find the breathing room to make positive changes.
2. Drive Impact with the Financial Scoreboard
You don’t want dry financial reports where your CFO lists off the numbers. The numbers create a scoreboard, telling you when and where to direct resources and how to take action.
Data drives practice and giving financial managers clear consequences of their actions allows them to take ownership and start looking at the numbers in a way that promotes growth.
3. Develop the Performance Drivers to Get Paid Twice
As discussed in our book, The Growth CFO Void, primary drivers either limit your business’s potential or are the key to unlocking it. Adopting or breaking past these boundaries separates floundering CEOs from those who stand above the pack.
These include:
- The Owner’s Trap
- Financial Performance
- Growth Potential
- Customer Concentration
- Work in the System
- Supply Chains
- Positive Cash Flow
- Recurring Revenue
- Uniqueness
- Customer Satisfaction
4. Use the Budget to Engineer Profit
On the topic of limiting factors, I talk with too many who see the word “budget” in an unsavory light. What’s the point of forecasting financials if even the next month looks foggy?
Stop thinking about hitting the bullseye and focus on getting the right ballpark first. Plan for every “what-if” scenario with data-driven numbers before you get to a fork in the road.
5. Use Analysis to Gain Clarity
If everything before this point involved your company’s data, using analysis pits you against your peers in the same field. Look for answers to why specific competitors are ahead to orchestrate a comeback.
With the right Growth CFO on your team, you can access a multifaceted flight plan ready to take on whatever comes in the next year – and beyond.
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I’ve started, grown, and exited three technical services businesses, and among each of those utilized a plethora of experts to help us; Foresight CFO was by far the best value! Working with Kirk, John, and others at Foresight CFO was pure joy. We were aligned on approaches and influences, and most importantly, Foresight brought to the table things we simply did not have.
ROB DALY
CEO, STELLIGENT
I have had the privilege of working with Kirk and his leadership team for several years now. They have always been fiercely focused on supporting the needs of their clients; helping to stretch their thinking and guide them on the path to growth. Foresight is a category leader when it comes to Financial Management.
JAIME ZAWMON
PRESIDENT, TITAN CEO
OUR PREVIOUS WEBINAR
Bold Moves Webinar - Escape the Owner's Trap
The Owner's Trap is when the business depends on the owner. CEO business owners are frequently responsible for sales, delivery, customers, and/or employees. The day-to-day work feels like a whirlwind that never stops.
