Many companies don’t use budgets to help meet profit goals.  Often concerned that the process will take too much time and effort, CEOs and operating owners feel that they can read the situation well enough without them.

Many individuals and companies are immersed in tax filing this time of year, and may want to reflect on how well they have done and how more focused plans may have improved their situation.  Lack of good management practices, like setting targets and budgets, is often the cause of business failure. 

Time and time again it has been proven that the most effective way to consistently meet profit targets and avoid surprises is to make the effort to do more planning, usually in the form of some sort of budgets along with action plans.

It is not an easy task to prepare a comprehensive budget.  Take the time, involve others, and be prepared to change it as situations arise and new information becomes available.

You will find that your ability to forecast will improve as you practice more to think in this manner.  You will need to strike a balance between time invested and forecasting accuracy.  Don’t try to budget to the penny, but seek an appropriate level to work at.

You should develop both profit and cash flow targets.  Both are important and will need different kinds of attention to control them.  Every year businesses have fabulous profits but go out of business due to lack of cash.

Good planning increases your chances of business success.  It is the best way to secure your company’s future.  You can always make better business decisions by planning ahead. If you start to think about planning early, you can take a more objective look at your future needs and avoid last-minute decisions.

A good budgeting process can take several attempts to formulate, formalize and put into action.  Using expertise, as provided by the Osborne Group, can help you establish the structure of the overall budget process.

Ken Goodwin

Within the coming 15 years, more than half of the country’s current small business owners are expected to retire.  Only two in five small business owners have a clear plan for exiting their businesses.

Good succession planning increases your chances of business success.  It is the best way to secure your company’s continuity.  You can always make better business decisions by planning ahead. If you start to think about succession planning early, you can take a more objective look at your future needs and avoid last-minute decisions.

An effective succession plan will help you in a number of ways.  A succession plan has many benefits, regardless of the size of your business and what stage of the business cycle it's in.  By thinking through your plan, you can minimize the tax costs of any transition in the company’s ownership and management, work to maximize the value of your business before transition, structure the most effective retirement income for the retiring owner and have the best chance of a smooth transfer of your business.

A succession plan consists of a series of basic steps, such as setting your financial goals, determining legal requirements and establishing your objectives with your family or successor. Every situation is different, and it can often be complex and an emotional process for a business owner.

It is never too early to start the planning process.  A good succession plan can take many years to formulate, formalize and put into action.  Using expertise, as provided by the Osborne Group, can help you establish the structure of the overall plan, as well as assist in the coordination and implementation of the important transition steps in this very important area.  If you don’t already have an up-to-date plan, contact us.

Ken Goodwin

More often than not, small companies and/or start-ups cannot afford to have a CFO on their team.  But they still need the expertise. One alternative is a Part-Time CFO.  The value of a Part Time CFO is the access to an experienced resource for a fraction of the cost. 

There are a number of situations when this support can be extremely valuable – when preparing a business plan or budget, arranging financing or credit are the obvious ones that come to mind.  It can also be very helpful to simply have a financially focused strategic thinker at the table.  In such an example the Part Time CFO can help to ensure that your growth plans actually make financial sense.  It can be a reality check to the CEO’s strategies.  Adding bench strength to support and supplement the accounting and finance team is often critical with smaller organizations where short term absences, or unexpected departures or even peaks in the workload can cause some serious financial management issues in a hurry.

So while not for everyone, a Part Time CFO can be an integral part of the management team in many cases.  They can provide the comfort of knowing that a professional is overseeing, protecting and constantly improving the financial side of the business.

Ken Goodwin