People start businesses for all sorts of reasons, but in most all cases, the business owner hopes to make money, right? The best way to ensure your business is profitable is to develop a path to profitability – essentially a long-range plan that allows you to quantify your goals.
Benefits of developing a path to profitability include identifying key business drivers/metrics against which you can track performance of your business and adjust operations as necessary to ensure you keep moving toward achieving your goals.
...we work closely with you to set goals and targets over the mid-to-long term for these key drivers / metrics to see the impact they will have on future financial results.
In helping you to develop a path to profitability, first we listen carefully to understand the current state of your business and where you want to take it – what are your goals. Then we validate whether your view of the state of your business is accurate through various analyses which also helps in identifying key business drivers and how they interact in your business. Using these drivers, we develop a financial model that demonstrates how your business operations impact your business’ financial results and test the model using your historical business data.
Once developed, we work closely with you to set goals and targets over the mid-to-long term for these key drivers/metrics to see the impact they will have on future financial results. These drivers can then be adjusted as necessary in the model to achieve the results you desire. Once results are as you desire in the model, the next step is implementation, adjusting business operations to achieve the desired metrics and developing incentive compensation programs for key employees to motivate them to align with goals of the business and reward them for participating in the success and growth of the business.
On an ongoing basis, the model is updated for actual financials results and metrics so decisions can be made in real time to adjust business operations to stay on the path to profitability.