Many business owners mistakenly view financial consulting as only having an impact on finances – the hard numbers. Instead, the benefits of partnering with a strategic financial consultant extend to the future and success of your business.When you partner with an experienced, knowledgeable financial consultant, you have access to an impactful resource. With a finance-driven business consultant, you have all the tools to grow your business, at your disposal.
At G-Squared, we partner with our clients to develop strategies that have a long-term, sustainable positive impact. Through the lens of finance, we evaluate two areas of our clients’ businesses: their business philosophy and the operational numbers.
- Business Philosophy: Before evaluating financial numbers or offering any consultative advice, we learn the economic drivers behind our clients’ businesses, like price relative to quantity, how many customers they have, what it costs to service customers, costs to acquire customers etc.
- Operational Numbers: By evaluating operational numbers, we pinpoint areas that need improvement and possibly additional investment, as well as look for opportunities for potential savings, two valuable pieces of business advice. We also review the costs of operations in relation to revenue generated, and we look at our clients’ financial histories.
Once the philosophical and operational drivers are evaluated, we have a better idea of how to build a strategic business model, based on financial information. Having a collaborative strategic partnership with your financial consultant will give you the power to make informed business decisions and develop a path to reach your goals.
Explore a few examples of how G-Squared was able to provide clients with strategic financial direction that solved business challenges beyond the numbers.
Problem: Quickly Scale The Company
A technology enhanced services company, received a large government contract that doubled the business overnight. This created the challenge of quickly scaling up the business to meet the demands of the new contract. To help them navigate this challenge, we took immediate actions to address their sudden growth initiative.
- During the bidding process, we built the financial model to develop an accurate and profitable bid.
- We obtained an estimate of the incoming client’s demands and developed a forecast based on that demand estimate.
- We secured new financing to better support the demands of the contract.
- We brought in staffing support, and based on the forecast, provided a list of needed hires to support the contract.
With this finance-driven business consulting, this company’s transition into the new contract was streamlined and profitable.
Problem: Operating With An Ineffective Billing Process
On a number of occasions, we have initiated a partnership with a new client, only to discover inefficiencies in their billing philosophy and process. This has the potential to cripple a business’ cash flow and threaten their bottom line.
As part of the billing restructuring process, we often push companies to require payment up front, because the best way to finance your business is on customer payment. This is a strategic, yet simple solution to billing and cash flow issues.
One client was able to fund growth in their business without taking any additional capital. They simply started requiring up-front payments from clients.
Problem: Navigating A Complex Acquisition
If you have ever acquired another company, or a company you worked for has been acquired, you know the pains associated with this process. It is often a large expense for the buyer and a logistical nightmare. Many companies are hesitant to take on the challenge.
In one instance, we were called upon to review the financial statements of a company one of our clients wanted to purchase. Upon review of this information, we found numerous errors in the acquisition’s financial reporting. This resulted in the purchase price dropping by approximately 25%. Without strategic financial consulting, our client would have spent far more on the acquisition than it was really worth.
When it comes to your business, you need a partner that brings more to the table than basic financial functions. Look for a financial consultant with the experience to become a long-term partner, providing finance-driven business consulting that enables growth.
Start your relationship with a strategic financial partner today. Schedule a free consultation with G-Squared partners.