Steve’s Pro Tips

Who can benefit most from evolving to agile, driver-based planning?

Posted by on Nov 18, 2014 in Pro Tips | Comments Off on Who can benefit most from evolving to agile, driver-based planning?

Here are some of my immediate thoughts:

  • Companies currently using Excel for budgeting and planning.
  • Companies still tied to static budgeting processes.
  • Companies ready to establish or improve a long-term strategic planning process.
  • Companies looking for real-time strategic planning and decision-making.
  • CEO’s or CFO’s playing active hands-on role and focused on forward positioning in market and competitive environment.
  • Leadership open to new strategies and technology to stay competitive.
  • Companies with knowledgeable financial personnel – especially w/ modeling expertise.
  • Growth and early-stage companies in need of planning.
  • Companies in need of raising equity or debt capital.
  • Companies seeking to establish a strategic partnership, merger or acquisition.
  • Companies seeking an exit or valuation for any reason.
  • Companies in need of project planning.
  • Companies with a need to establish or improve cash flow planning.
  • Companies with little or no financial acumen.

What details are most important to potential investors?

Posted by on Nov 2, 2014 in Pro Tips | Comments Off on What details are most important to potential investors?

Many CEO’s and entrepreneurs don’t understand the importance of the financial model when it comes to investor prospects and the Executive Summary or Business Plan. They, generally, get caught up in their enthusiasm and “story telling” and disconnect from the reality of what is really happening.

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Why is a Rolling Forecast better than working within a Planned Budget?

Posted by on Nov 2, 2014 in Pro Tips | Comments Off on Why is a Rolling Forecast better than working within a Planned Budget?

The static budget takes time to prepare and implement, causes personnel friction and frustration, is generally out-of-date upon completion and is an old-fashioned process.

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Should I create the Revenue Model first?

Posted by on Nov 2, 2014 in Pro Tips | Comments Off on Should I create the Revenue Model first?

Generally that works best, because it helps you think through and map the key drivers and structures of your company. This is especially true in conducting due-diligence with early-stage growth companies. If a CEO doesn’t have a well thought through, viable Revenue Model or can’t clearly articulate his or her ability to scale and generate sales and cash flow, the probabilities of a successful launch are greatly diminished.