Business owners and CEOs face dozens of decisions every day. They often make these decision based on their intuition. While their intuition is often correct, having information and projections to see the impact of their decisions creates a level of clarity most businesses operate without. More importantly, the clarity on the financial ramifications of their decisions can often create a unique competitive advantage.
Consider this example: with severe competitive and economic pressures, a local retailer knew he needed to make some critical decisions for the future of his business. As he considered his options, he lacked the clarity to really understand how potential store closures, vendor changes, and other discounting practices would impact the cash flow and profitability of his business. Left to his own intuition, which was pretty good, he still felt uncomfortable with the unknown impact of his decisions.
With a CFO on his team who modeled out the financial ramification of his different options, he was quickly able to solidify the direction he needed to go. His CFO was right by his side every step of the way to update the model and track performance relative to the assumptions made. As the firm progressed through this difficult time, changes were made to the strategies and tactics of the company on a real-time basis to maximize the performance of the company.
Our CFOs have modeled almost every scenario possible. When faced with critical business decisions, business owners and CEOs can rest assured that the clarity they seek is a financial model away.