By Rich Bond
Many business owners and company presidents tell me their financial results give them heartburn.
Disappointing financial performance is often a direct result of the information used for decision making. Most private business only get financial information about what has happened – with little or no information about what will be happening or how that could be improved.
There is a better way.
Here’s an example: In his first year on the job, the controller we placed at a company helped reduce inventories by $1 million, while increasing the on-time order fill-rate. Company sales, which had stagnated at $30 million, grew to $50 million. Heartburn relieved!
The new controller worked with operations to deploy inventory more efficiently, reducing the stock on slower moving items, while increasing the inventory on faster moving items.
Freeing up $1 million in working capital allowed the company to make investments which grew the business.
If your financial results give you heartburn, I would be happy to share with you 5 case histories of how finance helped privately owned businesses grow profits and increase their enterprise value.