The CFO'S Perspective

What if Tomorrow is Not Like Today? Part II: Preparing for Disasters at Work

Most of us believe we are prepared for the everyday kind of disaster at work:  We carry extra cash, safety pins, and a cell phone.  We keep a granola bar (or five) in our desk.  In Seattle, we never, ever, let the coffee pot run out. But while all these things are good (especially the coffee pot), most of us never think about what we would do if a true disaster struck during the time we are at work -- the place/s where we spend more waking hours than anywhere else.   

Let's take the case of an earthquake, since that's our most likely Puget Sound area disaster, and the basic things to prepare for if one occurs during our workday apply to many other scenarios as well.  

Topics: Planning Financial Projections Forecasting

Predicting the Future - What if Tomorrow is Not Like Today? Part I

Recent sad news about the wildfires disaster in California which has destroyed homes, businesses and caused so many deaths is a reminder for us again to consider the future.

…up to 40% of businesses hit by natural or human-caused disasters never re-open.”

According to FEMA, the Federal Emergency Management Association, up to 40% of businesses hit by natural or human-caused disasters never re-open.  They close because their normal processes are overwhelmed by loss:  loss of data, inventory, space, personnel, or all of the above.

Topics: Financial Projections Forecasting

How a CFO Will Prepare Your Business for Unexpected Events

When business disruptions occur, it can be expensive. Most business owners and CEOs have a model for success in mind, but what about the other side of the coin? Failing to prepare or put contingencies in place for unexpected events can turn a potential blip into a catastrophe.

Increasingly, business owners and leaders are leaning more on their financial teams to help prepare the company for uncertainty. Specifically, the business's CFO is taking on a broader role that includes making sure that your firm will be able to weather unexpected events.

Topics: CFO Planning Financial Projections Forecasting

Business Drivers - Monitor, Measure & Leverage for Future Performance

What senior manager hasn't looked into the future to plan the growth of their business? The forces that drive the market acceptance and commercial success of your organization are going to vary depending on the nature of your products and services.

Whether you're in a traditional industry or a new one, business moves faster than ever today. Every millisecond a new app is download from Apple's online store. Walgreens now offers a walk-in one-minute flu shot, and customers can drop off their Fed Ex packages in the process. Any organization that wants to ensure its future must first figure out how to measure its past performance and then leverage that information to inform current decisions that impact their ongoing success.

Topics: Planning Analysis Financial Projections

Financial Projections and Analysis Considerations

An important part of the business planning process is the preparation of financial statements to predict the outcome of an organization’s results in future periods.

Financial projections are based on compiling the internal and external accounting data you already use in the day-to-day management of your business. By projecting your revenue and expenses, you can get a more accurate view for how successful your business can be. Creating financial projections is not an easy task but is a very important part of developing a sound strategy. The financials tell you what goals to keep and what to cut.
 
Projections can also be a guide to help your business grow without running out of cash. To generate and support additional revenues, additional cash is always required. Financial projections help you assess what additional assets are needed to support increased revenue and the potential impact on your balance sheet. The projected financial plan indicates how much additional debt or equity you need to remain solvent and healthy.

Topics: Analysis Financial Projections