Florida CFO Group Blog

Helpful topics from Florida CFO Group's experienced CFOs

Are You Losing Money on Your Biggest Customer?

Part One of Three Parts: Revenues vs. Profitability

In the first of a three-part series on how to recognize if you’re losing money on your largest customers, Florida CFO Group partners Betsy Bennett, Mark Brown and Jay White, discuss recognizing if you are losing money on your largest customers the impact of chasing revenues vs. profitability.

How is it possible not to know you’re losing money on your largest customers?

Betsy: It’s very possible if you’re not tracking finances by customer. For instance, in a service business, you might not track the results of each individual customer relationship in your financial records. So, one might be costing you a disproportionate amount to support, and unless you have other mechanisms other than a general ledger, you’re not going to detect that.

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Exit Planning Strategy: Who Needs It?

Florida CFO Group partners Dawn Johnson, Mark Brown and Harold Hale discuss the importance of having an exit strategy for your business.

Exit Planning Strategy: Who Needs It?

Harold: An exit strategy is planning for a transition of ownership. It is a way or means of either entrepreneurs or investors to basically reap the benefits of what they created.

Dawn: It’s also known as a cash-out. When an entrepreneur realizes that their business is going to grow, they may start to think about how and when to cash out.

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Are Budgets a Waste of Your Management Team’s Time?

Florida CFO Group partners Betsy Bennett, Mark Brown and Harold Hale discuss the importance of budgeting and if comparing results to budget on an annual basis is an out-of-date practice.

Mark: Just as you do not need a map for your daily commute to the office, if your business is stable and doesn’t change month-to-month, quarter-to-quarter, you probably will not find a need for budgets.

Betsy: Some executives believe that our fast-paced world makes 12 months too long of a planning period.  That the farther we get from the actual planning, the less relevant the budget becomes.

Harold: Yes, but a budget creates a baseline plan for your expected revenues and expenditures and provides you with a map of where your operational capital resources are allocated. Then, when the unexpected happens – good or bad – you are able to respond more quickly.

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