26 04, 2018

What margin should we target?

By |2019-06-24T01:37:48+10:0026 April 2018|Featured|0 Comments

Over the years I have been asked this question on many occasions. The enquirer is looking for a number but the number depends on many factors. So the answer is to explore a range of principles that apply to these factors. Let’s look at this for both from the “gross profit margin” and the [...]

19 04, 2018

Gross profit explained without numbers

By |2019-06-24T01:43:16+10:0019 April 2018|Featured|0 Comments

How front of mind is the meaning of gross profit for most business managers. If asked to describe what gross profit is, they would invariably say it is sales revenue minus cost of sales. Of course that is correct, but what does it truly represent? For me, it represents a measure of customer value [...]

5 04, 2018

Don’t assume when making assumptions

By |2019-06-24T01:56:51+10:005 April 2018|Featured|0 Comments

Planning is one of the key drivers of success in business. We all know that a proactive management approach is critical for achieving successful outcomes. A key element of your business plan is the financial plan, or forecast. This is used for budgeting purposes. For a budget to be a valuable performance management tool [...]

23 03, 2018

Warning! Major risks ahead

By |2019-06-24T01:18:57+10:0023 March 2018|Featured|0 Comments

You’re in business. Risks are all around you and many of them are capable of doing major harm to your business. Some could even destroy your business. This is a given. So how do you manage your risk exposures. For SME businesses this is a difficult, and often poorly managed, element of accountability. There [...]

16 03, 2018

Why are my margins all over the place?

By |2019-06-24T01:19:47+10:0016 March 2018|Featured|0 Comments

Okay, you get it. You need to achieve a targeted gross profit margin to ensure your business is financially successful and generates positive cash flows. And you agree that regular reporting is the key to you being able to manage this critical measure. This will enable you to respond quickly whenever these margins fall [...]

7 03, 2018

Turn the lights on with business analytics

By |2019-06-24T01:29:33+10:007 March 2018|Featured|0 Comments

We live in the age of flat packed furniture, barbecues and other assorted household items. How do you think you would go putting one of these together in the dark? It would be near on impossible. We also live in an age where heart surgery and other complex surgeries are commonly performed. Would you [...]

28 02, 2018

Capacity planning from a financial perspective

By |2019-06-20T02:47:26+10:0028 February 2018|Featured|0 Comments

The virtual CFO has a valuable role to play in a growing business. A key part of that role is to provide leadership within the critical planning, monitoring and analysis areas. The virtual CFO will assess the processes, resource requirements and the means for disseminating important information to key decision makers. This requires the [...]

21 02, 2018

No Place for a “Yes Man”

By |2019-06-20T02:44:54+10:0021 February 2018|Featured|0 Comments

The virtual CFO has a valuable role to play in a growing business. A key part of that role is to provide leadership within the critical planning, monitoring and analysis areas. The virtual CFO will assess the processes, resource requirements and the means for disseminating important information to key decision makers. This requires the [...]

14 02, 2018

Strategic planning and the role of the virtual CFO

By |2019-06-20T02:55:59+10:0014 February 2018|Featured|0 Comments

The role of the virtual CFO in the strategic planning process is critical. The business is making decisions on a number of important elements determining its future. Where will future growth come from What impact will this growth have on margins How do we protect/grow margins within our existing business What operational resources do [...]

8 02, 2018

Growing your business with a virtual CFO

By |2019-06-20T03:03:12+10:008 February 2018|Featured|0 Comments

Moving from a small business to a growth business is a major task. It is a task that often proves too hard and results in a successful smaller business failing as it tries to grow to the next level. And it should be hard! The rewards for doing it successfully are large. This article [...]