This past weekend I attended our Annual B2B CFO Partners meeting in San Antonio, Tx. The two day event was nothing short of fantastic. The annual meeting is a wonderful opportunity to catch up with old friends and meet the newest crop of partners. As we approach 200 partners attendance at this meeting is a must. Jerry Mills, Founder and CEO, never fails to exceed expectations with a great agenda.
Jerry opened the show as usual by providing a perspective of the history and future of our firm. It is apparent from the outset that Jerry has a very clear goal for our firm and that he never stops working on the plan to reach the goal. It was during his opening comments that he shared how he came to realize that he made a critical mistake by outsourcing a core competency and what he has done to correct that mistake. It was this frank admission that made the biggest impact to me.
As I thought about this I tried to think how this lesson would apply to my clients. It didn’t take long for me to realize that regardless of the business and the core competencies needed to excel in operations, a core competency for every business and business owner is in the area of Financial Reporting and Analysis.
We all know business owners who manage the business by the bank account balance and don’t get a proper Profit & Loss statement or Balance Sheet until weeks after a period closes. And when they do get these statements it’s rare that they know how to interpret the results. And it is rarer still that they know how to do forecasting and cash flow projections. Businesses run like this are in constant risk of failure or minimizing their chance of success.
Timely and Accurate Financial Statements, Financial Planning, and Cash Flow Projections are indeed core competencies and critical success factors for every business owner. With the tools available today which are easy to use and affordable, and the available workforce, there is no reason why a business owner should not know on a daily, weekly, and monthly basis exactly the financial performance of the business, how that compares to the competition, and how it compares to plans.
So, what’s in your wallet? If it is not more cash every month then you should consider an investment in your business. Contact someone who can help add these important core competencies to your business. You will be happy you did. I guarantee it!
Rick Daigle, firstname.lastname@example.org, 888-972-9449