Visibility
Growing companies often find it difficult to look beyond their own growth. While resources are constantly consumed by new waves of orders, hires and prospects, core operations tend to be neglected, intensifying growing pains. During periods of contraction, these growing pains become apparent and necessitate quick remediation to restructure the business. To ensure both operational efficiency and a solid financial position, management teams must continuously assess the direction of the company, monitoring operational performance and cash flow.
“Remaining competitive in this continuously and rapidly evolving landscape necessitates agility. Knowing where you are and where your business needs or wants to go requires accurate current financial information and robust financial forecasting, especially cash flow forecasting. With the proper data, risk assessment and strategic focus, the management team can develop and execute in a timely manner a prudent plan to achieve the desired goals.”
– Bob Severi, Partner, CFO Services
At Penn Valley Group (PVG), our CFO Services practice is focused on bringing visibility to every level of your enterprise. To uncover and manage the hidden variables that often come with uncertainty, PVG can help your company structure a detailed budgeting and measurement strategy that enhances discipline and control. Our experience in developing executive dashboards and best practices can help you and your growing business learn to expect the unexpected – and manage it effectively.
Understanding the Business
To understand where the business is going, you need to be able to identify trends and capture operational insights from every department. Instituting and interpreting a system of metrics that converts data into actionable information can help you work on your business, not just in it. PVG can provide you with an array of robust tools, including weekly dashboards and Flash reports, as well as in-depth, real-world experience, to enable you to build greater visibility and control into your operations.
Management Transition
Is your business facing new challenges exceeding the capacity of your people, processes and systems? Owners and CEOs often find that the underlying infrastructure of their business no longer meets the needs of the business itself. Whether due to business contraction, rapid expansion or the requirements of new equity or debt partners, PVG has the experience and proven methodologies to help you. We can work with you to:
- Control costs and increase bottom line results
- Manage working capital and accelerate cash flow
- Ensure compliance with lenders' covenants resulting in sound banking relationships
- Develop operating plans and budgets
Financial Strategy and Funding
Regardless of the business cycle, management must always be mindful of liquidity to ensure survival and/or sustain growth. Generally, the primary source of funds is operating cash flow. When this is insufficient, a capital raise (debt or equity) may be the proper course of action. Having adequate visibility into operations can enable you to understand the capital needs of your business so you can determine the best way forward. PVG can help assess the critical aspects of your business that have an impact on capital needs and then work with you to help find the right type of funding through equity or debt financing. We primarily work with you and your management team to set a solid financial strategy, and can also assume an interim Chief Financial Officer position if necessary. Once stabilized, we can leverage internal resources to help choose a permanent CFO to guide your continued growth. Alternatively, we can provide ongoing part time CFO services.