B2B CFO^®    (877) 4-B2B CFO

I’m often asked by prospective clients, bankers, CPA’s, attorneys and other referral sources about the differences between a B2B CFO® and other temporary or interim solutions such as Tatum or similar type firms.

Usually I start out by simply stating that we (B2B CFO®) are a “long-term, part-time” solution where as Tatum or other interim solutions are a “short-term, full time solution”.  After that statement, I then start articulating how we differ in our service and client relations approach.   And believe me folks, there is a huge difference between a B2B CFO® Partner and other solution providers.  Below is a list of the primary differentiators between B2B CFO® and others.

1.    Part time (long term) at B2B CFO® vs. Interim/Temporary (short term) at Tatum and others.

2.    Handshake agreement with B2B CFO® vs. Signed Contracts with others.

3.    No hidden fees at B2B CFO® vs. several termination fees or transition fees with other firms such as Tatum

4.    Small to Middle market focus at B2B CFO® vs. Big game hunters at other firms such as Tatum

5.    Cash Approach at B2B CFO® vs. some obscure terms such as Financial and Technology Services at other firms.

6.    Partner Collaboration Support at B2B CFO® vs. Employee Based at Tatum and other firms.

Finally, I like to convey to my prospective clients and referral sources that our Partners at B2B CFO® are building long-term practices similar to CPA firms and it is our goal to have a roster of satisfied clients as opposed to being a temporary solution or project based consultants.

At B2B CFO® we genuinely care about our client's success and we want each and every one of our clients to realize their dreams.

Cash. We Help You Get It.

When working with new clients and/or prospects that sell or carry inventory, I always ask the owner(s) how quickly their inventory turns.  Without hesitation, most reply 6 to 8 times per year.  Then I ask them how they calculated or arrived at that number.  The universal answer is "I just know".  Maybe correct or more likely, probably not.  I believe most of them are simply calculating their annual sales and simply dividing by their average inventory.  For example, if they sell $6 million a year and their inventory balance is $1 million, they will say their inventory turns 6 times a year.  Okay, that would be correct if inventory was carried at sales price, but inventory is carried at cost on the balance sheet, which assuming a 50% gross profit margin in this example, inventory would only be turning 3 times per year.  (Please see actual formula for calculating Days Sales in Inventory below).  Therefore, instead of having 60 days worth of sales in inventory on hand (360 days/6), they actually have 120 days worth of inventory on hand.  No wonder most small to medium size companies are strapped for cash.   I believe most of them don't realize the tremendous cash flow repercussions of having too much inventory on hand.

Granted, most of us have been taught from day one in our accounting and finance classes that inventory is an asset.  After all, it is classified on the balance sheet as a current asset, unless of course it doesn't turn within a traditional annual business cycle, which then would require it to be classified as long term. In accouting humor, we refer to long-term inventory as FISH (First-In, Still-Here).

Let me challenge the status quo and current way of thinking and suggest that we start viewing inventory like a liability. Why? Well, were all too familiar now with terms like "Toxic Assets", "Troubled Assets", "Impaired Assets" and inventory often falls into this category.  Why, because inventory can become obsolete, it can lose its value and it is highly susceptible to shrinkage (i.e. theft).  Doesn't it seem odd to hear terms like Toxic Assets, boy that's an oxymoron if I ever heard one, right on par with "Jumbo Shrimp".   Inventory can become a Toxic Asset or Troubled Asset very quickly. There is nothing worse for your working capital position than having a large asset go bad.  Inventory can be downright toxic if it isn't planned and managed properly.  Ever wonder why banks hesitate to lend against inventory.  They simply don't think they can recover enough cash value in the case of liquidation.

Days Sales in Inventory Formula = {Inventory/Cost of Goods Sold} x 365 

I think the underlying moral of this story is, don't fall in love with your inventory and think that you have a great asset on your books.  Remember this sage piece of advice when managing cash and working capital "it isn't what you sell, rather it's what you buy, particularly how much and how often".

As a B2B CFO®, I am experienced and skilled in helping companies analyze their optimum inventory and working capital components in order to maximize cash flow.  If you are concerned with your current ratio, quick ratio, inventory turns and/or lack of cash flow, take a look at your inventory levels.  Better yet, contact me and I can assist you in your analysis.

At B2B CFO® we genuinely care about our client's success and we want each and every one of our clients to realize their dreams.

Cash. We Help You Get It.

INSURANCE RISK, WHAT SHOULD A COMPANY EXPECT AND WHAT IS GOOD SERVICE FROM AN INSURANCE BROKER?

As a CFO, one of our roles is to analyze, understand and control the costs and risks associated with a company's insurance. This can be a main contributor to a company's cash position or lack of cash.

During the course of my travels as a CFO, one of the key assessment risks questions I ask is "what do you like about your current insurance broker". The majority of the time I hear, "the service that they provide".  I then press the client and ask what service they provide to your liking.  Again the majority of the time the answer received is "they provide me with renewal quotes and issue my certificates". This is not service, this is their job.

As the CFO, below is a partial list of what services I believe a company should receive from an insurance broker:

• Does the broker come out for an annual review of all coverage's 60-90 days in advance of the renewal date and verify correctness of coverage
• Is the client made aware of any legislative changes or industry trends that could effect coverage or premiums
• Has a new workers' compensation experience modification been published and has the broker gone over the new mod with the client and verified correctness
• Are strategies for renewal discussed based on coverage, claims, or cost issues
• Has the broker provided quotes on often overlooked coverage's such as Director's & Officer's Liability or Employment Practices Liability? Even privately held small company's have this as an exposure and should be made aware of why this is important to their business.
• Does your broker assist with Safety Meetings or perform a risk management assessment of your company to help in reducing the potential for claims
• Do you receive your renewal quotes on a timely basis? The day before renewal is not good service.
• Have you ever met a representative from your insurance company? A good portion of your business costs go to these companies and they would like to meet you!
• Has your broker established a set schedule for the year with you to meet and discuss how the business is doing, what you may need from he or she, and any new directions or expectations need to be met?
• Have service commitments been established in writing?
  

These are but a few of the items that I would expect as the CFO and consider good service from an insurance professional. Just as other service providers are an integral part of your business, so is your insurance professional.

If you are not receiving these services you should!

I have used and recommended Jeff Egenberger, a Senior Broker at Johnson & Wood Insurance Services, Inc. He has been an independent broker in North San Diego County for 16 years. He can be reached at jeff@johnsonwood.com or (www.johnsonwood.com)

At B2B CFO® we genuinely care about our client's success and we want each and every one of our clients to realize their dreams.

Cash. We Help You Get It.

In these turbulent economic times, many small to medium size companies are being forced to make cuts and right size their business to remain competitive and profitable.  For these small to medium size companies, laying off employees or terminating employees for other reasons is often a daunting and difficult task.

 One way to cushion the blow and make the transition easier for loyal employees to is offer outplacement services as part of the severance package.  The intent of any outplacement program is to provide valuable assistance to individuals or groups of people that are involuntarily leaving their job.

Offering outplacement is a good business practice that achieves a few objectives for both the company and the former employee.

For the employee, it helps prepare them for a job search, builds their confidence and improves the odds that they will get back to work quickly.

 For the employer, it helps retain staff by demonstrating to the remaining employees that their employer cares about their well-being during a difficult time of transition between employers.  It can contribute to a reduction in your unemployment costs by getting people back to work faster.  It lowers the risk of adverse actions since it is a benefit normally packaged in a general release agreement along with other extended benefits and severance pay.   Offering outplacement can enhance your brand as an employer.  Knowing the company will assist departing employees will reduce the stress within your organization and management team.

Outplacement programs can range from one day to several months and the related costs may range from less than $1,000 to several thousand for executive programs.  The level of the affected employee is often a driving factor in selecting the right program.  An outplacement program should focus on developing and implementing a strategic approach to the job search and cover  the important basics of conducting a self analysis, market analysis, resumes, cover letters, networking, interviewing techniques, and negotiating.  A good program will also cover the latest methods of using the internet and understanding how recruiters and managers find and select candidates to hire.  There are certainly both tangible and intangible benefits to outplacement.

I have used and recommended Williams & Sewell HR Consulting (http://www.wshrc.com ) to many of my clients and referral sources who are exploring this option.  Williams & Sewell are experienced HR Consultants and Advisors who are well versed in assisting companies with outplacement.

At B2B CFO® we genuinely care about our client's success and we want each and every one of our clients to realize their dreams.

Cash. We Help You Get It.

Late last year, I was successful in finding and negotiating an increased line of credit for a Consumer Based Product client.

 Before I was hired, the Company was struggling with getting suppliers paid due to the strain on working capital as a result of increasing sales.  The Comapny was operating with an SBA backed $350,000 line of credit that was clearly insufficient to fund their growth.  Their bank was not a business bank and didn't understand my client's working capital needs and how to apply a borrowing base formula to my client.

 I interviewed several banks and finally found one that understood my client's business and growth startegy.  As a result, I was able to help my client secure and increase their line of credit from $350,000 to $2,200,000.  As a result, my client was also able to get a credit and terms increase from their primary supplier in China.  In fact, the factory doubled their credit and extended their paydate by 30 days.

 Now, my client is able to continue to grow profitably as well as manage their cash flow due to the increased line of credit and bank relationship.

 As a B2BCFO, we take time to undertand our client's business model and how to properly communicate the essential numbers and key metrics to capital resources.

 Cash. We Help You Get It.

Last week I finalized an IT Equipment loan for approximately $180k for one of my professional service clients with a local community bank in San Diego.  I was able to help them secure a favorable loan and interest rate and in comparison to some leasing options, we will end up saving a significant amount of interest over the term of the loan compared to leasing.  Not only that, but the owners of the business will also benefit from a Section 179 deduction for income taxes.

 In addition to the Equipment Loan, I was also able to secure a $300,000 line of credit for my client.  Despite the uncertainities in the market due to the global financial crisis, banks particularly community banks, are still interested in profitable and supportable transactions.

As a B2BCFO, we pride ourselves on helping clients navigate the process of obtaining lines of credit and term loans.  We provide the banks and other lending institutions with confidence and we develop business cases to show how our client's cash flow can support lines of credit and term loans.

 Cash.  We Help You Get It.

Most business owners want to increase sales. Our goal is to assist in that area.

Business owners can usually increase sales significantly if they are allowed to spend time in what we at B2B CFO^® call "Finding Activities." Finding activities are those events that allow an owner to be a visionary, idea generator and a catalyst for change. These activities usually allow an owner to spend time building relationships and ideas to bring future sales into the company.

We are seasoned at assisting a company improve its infrastructure to allow an owner to escape from many of the administrative and operating activities to be able to spend more time in finding activities. Typically, a significant increase in sales results from this effort.

As a seasoned executive, B2B CFO^®s can help business owners and CEO's increase sales in a multitude of ways.

First, we work with Business Owners or CEO's to gain an understanding of their business and how increasing sales aligns with the overall strategic objectives of their company. Once we have a clear picture of where the company has been and where it is heading, then we are better suited to help the Business Owner or CEO identify sales-increasing sales ideas or sales opportunities. Also, different industries face different challenges when increasing sales.

Naturally when a Business Owner or CEO is looking for increased sales, the first question from a seasoned CFO will be, "do we understand the benefits and costs" of increasing sales on the company's infrastructure and working capital? Second, will increasing sales result in better margins and increase the Company's profitability? Third, what are the "barriers to entry" when looking at increasing sales in a different product or sales channel? Fourth, how much of the Business Owner's or CEO's time will be devoted to increasing sales? Fifth, does the company have adequate production capabilities or service personnel to absorb increased sales?.

In addition to the above strategic and tactical questions, the Business Owner or CEO should understand how the increased sales will impact the company and what additional time and resources will be required. The company should perform a thorough product or resource cost matrix to determine how prices or rates will be set in order to ensure there is an appropriate margin and profitability for increasing sales.

The bottom line is that any Business Owner or CEO should carefully evaluate the organizational and business risks of increasing sales. Engaging a seasoned executive such as a B2B CFO^® will greatly enhance your success of increasing sales and allowing you to engage more time in "Finding Activities" and less time in "Minding Activities".

Grant has proven to be a valuable resource for our firm and for many of our firm's clients.  His insight, judgement, technical ability and candor has made the difference in many financial and management decisions we have made.  I highly recommend B2B CFO and Grant Brisacher.

Larry Murrill
Managing Partner
Murrill, Eakes & Company, CPA's

Grant has been invaluable to Envision Financial Systems, Inc.

Joy Barnes
Business Manager
Envision Financial Systems, Inc.

Grant was instrumental in helping us secure our first substantial banking relationship and line of credit to enable our business growth. He provides reporting, analysis and advice to keep us on track towards our business and financial objectives. He manages our banking and CPA relationships and has been instrumental in increasing our vendor credit limits substantially as well.  Grant has enabled and facilitated merger and acquisition discussion with potential acquirers.

Ken Hughes
President
T.V. Ears, Inc.