We all plan to succeed. But do we make realistic assessments of how that success will impact on our scarce resources? For your achievements to be translated into financial success you need to understand the demands on your resources and ensure that you can accommodate the changes without significant failures in your business.

How will success impact on working capital

Q:   How much will my working capital needs increase by?

A:     Your virtual CFO will quantify the changes using known parameters such as debtor days, stock turns and creditor days.

Q:   How will we fund the increased demands?

A:     Your virtual CFO will help to develop a strategy based on known constraints. This would include achievable changes to working capital ratios and sourcing necessary funds in advance.

How will success impact on capacity

Q:   What are our capacity constraints?

A:     Your virtual CFO will document the capacity constraints (equipment, skills, people, shifts, supply, etc.). Constraints are documented in terms of volume, waste and productivity

Q:   How will we fund the increase in our capacity?

A:     Your virtual CFO will assist with the strategies for growing capacity through either a) changes to input performance, or b) investment in additional resources. In either case your virtual CFO will also assess return on investment to support the viability of the strategies and, where funds are required, to support funding applications.