The Financial System You Need To Run A Profitable Business

In this introductory presentation, students learn the primary causes of business failures/underperformance and how to avoid them. Understanding the importance of monitoring financial position is stressed, along with an action plan for achieving and maintaining the key steps to “fiscal fitness.” At the conclusion of Introduction: Creating a Foundation for Change, students will be able to:

• Identify the seven components of a complete “Fiscal Physical”
• Understand the interrelationships in the Financial Operating Cycle
• Know the primary uses for net profits in a business

This presentation takes students beyond the basics of financial statement analysis in a sophisticated, decision relevant format. Working through a real-life case study, students explore the specific techniques of strategic financial analysis. Students will learn about financial ratios and how to use them to analyze their company’s financial performance and to create change for the future. The presentation will then move from simply identifying the symptoms of financial distress to learning how to solve the problems that cause financial distress and then to quantify the effect of management inefficiency. Students will be introduced to the Cause and Effect Road Map and the Profit Mastery Assessment. After this presentation, students will understand what financial statements really tell them about their business and have the expertise and confidence to take action. No prior financial expertise needed.

At the conclusion of Ratios Financial Analysis, students will be able to:

• Understand the critical need to consistently monitor financial position
• Create a practical process, using ratios, to assess financial performance: identifying strengths, weaknesses, and areas of opportunity
• Use peer benchmarking in business analysis
• Appreciate the dynamic relationships that exist between the balance sheet and income statement
• Identify the causes behind financial distress
• Use financial analysis as a tool to improve profits and increase cash flow
• Create goals and action plans to implement positive changes within the organization and quantify the effect of those changes
• Enhance relationships and the ability to communicate with bankers and other financing partners

Break-Even Analysis is the tool that lets owners and managers gauge the results of changes in costs, volumes, or pricing. Break-Even provides a method to analyze the present to help drive future profits higher.

At the conclusion of Price-Volume-Costs, students will be able to:

• Determine how cost patterns affect profits, and analyze the present to make better decisions about the future
• Measure the profitability of individual locations and understand the specific criteria for opening and closing locations or departments
• Determine the profitability of individual products or services to determine appropriate pricing strategies
• Incorporate Break-Even Analysis into a strategy to manage costs
• Plan for growth by exploring effective expansion techniques
• Utilize "what if" scenarios to calculate and substantiate specific expansion, pricing, and purchasing decisions

This presentation cuts straight to the bottom line with a discussion of why you need to perform cash flow analysis, how to do it, and the impact it can have on the way you run your company. Students will build a profit plan and cash budget on a step by step basis. The case study also explores the effect of seasonal sales cycles on cash flow and profits.

At the conclusion of Cash Flow, students will be able to:

• Develop a profit plan and cash budget forecast
• Identify key patterns of cash flow
• Identify the financial impact of different cash flow patterns
• Identify the effects of short-term and long-term financial cycles
• Determine the differences between net profit and cash flow
• Use their forecasts in variance reporting

While growth and recession get measured on the income statement, they’re often paid for on the balance sheet. Without carefully managing your business’ balance sheet to take positive control of growth, you can fall into the “Financial Gap.” This unique presentation allows students to assess their current survival position, identify the potential costs of future growth, as well as get acquainted with the “Sponge Technique,” an innovative, realistic strategy to wring much needed cash out of a balance sheet.

At the conclusion of Financial Gap Analysis, students will be able to:

• Understand the effect of growth on the balance sheet
• Project the potential "Financial Gap" created by growth
• Accurately determine the future asset needs of the company
• Identify key issues of financial leverage and debt structuring
• Find the money needed to pay for growth
• Identify inefficiencies that soak up cash

Almost all companies have needs for additional capital at one time or another. There are many sources of funds for both debt and equity. Regardless of the source, a business owner must tell his or her story in a way that makes sense (and gets results). Learning the secrets to this process is the topic of this presentation. Students will also learn how to properly package and communicate information to increase their chances with funding sources. The topic of transition planning is addressed and resources that support this process are provided.

At the conclusion of Financial Planning & Planning for Transition, students will be able to:

• Identify different types of asset needs and match them to means of financing
• Understand what specific sources are used to repay specific types of debt
• Identify the 5 "C's" of Credit
• Understand what information financing partners need in order to fairly evaluate a loan request