NextGen CFOs provide a wide range of services to our clients. Many of the businesses we work with face similar challenges. These include:
Lack of access to top-level financial management
Small and medium-sized businesses can grow, increase in value, and move ahead of their competition through superior financial management. NextGen CFO provides owners access to this level of financial management.
Limited access to capital
Small business owners often don't know how much capital they currently have, how much capital they need to meet their objectives, and how to fill the gap. NextGen CFO can answer these questions and help businesses access more capital if needed.
Underperforming in-house financial staff
Though typically adept at day-to-day bookkeeping and processing common transactions, financial staff may not be trained in financial analysis, business planning and managing company capital. With coaching and direction from a NextGen CFO, a company’s finance and accounting team can grow professionally and perform at a higher level.
Lack of a plan for the creation of value
Most owners never develop plans for increasing the value of their businesses. NextGen CFOs analyze businesses and identify opportunities to create value. Our professionals also identify the steps required to take advantage of those opportunities, and lay them out in a business plan.
Feeling distracted from critical revenue-generating activities
NextGen CFO professionals handle the financial management function, allowing Owners to focus on growing sales and developing long-term strategies.
Inexperience in working with investors
NextGen CFO can assist when deciding to bring in investment capital, and then help keep investors informed and updated on company performance.
Moving your business forward
In addition to these common challenges, NextGen’s strategic business advisors also proactively help businesses with key activities that support owners’ goals.
Growth & planning
Growth and planning go hand in hand and are essential attributes of financially healthy companies, large and small. With their experience working with hundreds of companies, NextGen can help you develop and improve your planning and budgeting process.
Key components of effective planning include the appropriate level of owner involvement, detailed support, realism, functional area buy-in, and accountability. A good plan should be timed by month, include a cash flow statement, and a set of annual projections for a 3-5 year period.
This financial plan (or key parts of it) should be something you can share with your senior management team, your bank, investors, key trade creditors, or a valuation firm. But more importantly, it should serve as a roadmap. It should assist you in making decisions and help you know when course corrections are needed.
The plan is also critical in knowing if you have the right amount and type of capital to achieve your objectives. NextGen can help determine if your current capital structure will support your growth plans. If it’s not, we have significant experience and many relationships with banks, other lenders, and other forms of capital to take you to the next level.
NextGen believes in practical, effective financial planning. We know from experience that if done right, this can make a real difference for your company, and help you achieve stronger financial performance.
Efficiency & reporting
NextGen has worked with many businesses improve the effectiveness of financial reporting, which is critical for decision making. Business owners, managers, lenders, potential buyers and others use financial information to make decisions, so timely and accurate monthly statements are vital to your firm’s success.
These monthly statements can include the standard balance sheet, profit and loss statement, and statement of cash flows, as well as other useful reports.
NextGen plays a key role in assisting the decision-maker and accounting department to determine which reports will be useful and how to produce those reports accurately and efficiently.
This may include analysis and assistance with implementing accounting systems, training and coaching accounting staff, and developing key processes and procedures.
A critical decision and planning opportunity for most privately held businesses is providing for business continuity.
Sooner or later, there will be a transition. Your only choice is whether to have planned for it or not. Best-in-class businesses and owners have considered their options and preferences, documented the succession plan, and communicated their desires and plans with stakeholders and affected employees.
Many issues should be considered as part of the planning process: shareholder and family dynamics, the strengths and commitment of key employees, liquidity to fund equity transactions, and a host of other related topics.
Have you considered your options? Do you have a plan? Does anyone know your plan? Do you have someone without a vested interest in the outcome to advise you and coach through the process?