Outsourced CFOs During Down Times

               
The San Fernando Valley Business Journal has an interesting article on “Businesses Lean on Outsourced CFOs During Down Times.”
 
Entrepreneurs might want to check it out at:

http://www.sfvbj.com/article_readlist.asp?aID=141535

Ravi Patel

www.patelCFOservices.com

Advertisements

For Rent: Chief Financial Officer

Should Entrepreneurs employ a CFO or rent one as they start out their companies?

Please check out this article in the Wall Street Journal – For Rent: Chief Financial Officer

Ravi Patel

www.patelCFOservices.com

Variable Financial Management

Many articles and books have been written about the needs of different types of management as the company grows from a start up to a mature level. Start ups require more of an entrepreneurial spirit  that might not work in a well-seasoned, stable growth company.

Similarly, financial management has to be variable to the needs of the organization at different stages during the growth and aging of the company.

 As your organization grows are you aware of what stage it is at and what type of financial management is necessary? Blending the financial management needs with the general management requirements of the company at different points in the growth curve of a company is crucial.

As a savvy CEO, are you paying attention to this? What are you doing to influence the changes required in the financial management of your company?

Ravi Patel

www.patelCFOservices

Return on Marketing Investment

A well accepted, but not necessarily true, axiom is that it is impossible to measure the return on your marketing and advertising investments.

Entrepreneurs desire to grow their businesses and need to spend certain monies on marketing their products and services. However, there is some reluctance as the true return of their investment is not readily known.

However, if a marketing program is well-designed, it could be possible to track the benefits of such a program and calculate the return on investment. Paying attention to the measurement of results while designing the marketing program may prove beneficial.

Ravi Patel

www.patelCFOservices.com

Offer Payment Plans for Securing a Deal

In this economy securing a deal is of paramount interest to companies. The major roadblock, if technical issues and price are not factors, is how to pay for the deal.

Entrepreneurs can remove this roadblock by being creative in offering practical  payment plans. If your margins are adequate, offering scheduled level payments or forms of declining or increasing payments over a period might be enough to secure the deal.

Long term clients with good credit history are always good candidates for creative financing for continued business.

Ravi Patel

www.patelCFOservices.com

Financial Implications of the Hiring Process

Hiring the right people is an art, but if not done right it can have significant financial consequence.

Entrepreneurs are sometimes concerned about the costs of a good hiring process – such as recruiting fees, ads, background investigation, reference checks, multiple interviews involving a number of people. While these costs do add up, the financial implications of a poor hiring process are even greater.

Hiring the wrong person not only results in re-incurring some of the search expenses, but it also adds more significant costs such as lost opportunity costs, disruptions and stress in the organization, lost time, wasted training, delay in accomplishing objectives and so on.

Entrepreneurs should beef up the hiring process by investing in upfront procedures and tools to avoid significant future costs of failure.

Ravi Patel

www.patelCFOservices.com

Planning for Potential Tax Hikes

Successful Entrepreneurs are going to be faced with potential tax increases if the current administration continues to propose and pass various programs that require huge government spending.

Other than groaning about those prospects, how are you planning to deal with that possibility?

It is time to meet with your tax planner and develop strategies to mitigate the impact of higher taxes. Planning now can save you taxes later. Do the Right Things!

Ravi Patel

www.patelCFOservices.com

Financial Vision

Most Entrepreneurs are aware of the need for and have most probably developed a vision for their company. The Company Vision is the overall guiding force that drives the company and forms the basis of the Mission Statement. The Company Vision and the Mission Statement allow the Entrepreneur to clearly communicate the strategic direction of the company to the employees and other stakeholders.

In my opinion, a Financial Vision is also important for Entrepreneurs. Developing a Financial Vision quantifies the overall Company Vision and serves as a yardstick to measure periodic financial performance. It also provides the financial stakeholders in the company – shareholders and debt providers – a concrete gauge to assess the potential for their investment. It is not necessary to widely share the Financial Vision of the company.

A Financial Vision is long-term and has to be developed in conjunction with the Company Vision. It might include targets for revenues, company value, return on equity, growth, etc. The Financial Vision should be easy to understand and contain no more than three areas of focus.

Please check us out at www.patelCFOservices.com

Ravi Patel

Financial Impact of Elections

It is finally Election Day today. After a really long campaign, the American people will elect a new President – either Barack Obama or John McCain. Entrepreneurs will be watching closely as the new President and Congress will dictate the fiscal policies in the coming years. The financial impact of such policies could be significant to Entrepreneurs.

It might be time to seriously review your tax situation before the end of 2008. For example, taxes on dividends might increase next year making it prudent to consider declaring them this year.

We will be monitoring the potential impact of the new administration and Congress on Entrepreneurs. Please periodically review our website at www.patelCFOservices.com

Ravi Patel