Having been in the capacity to work with businesses and their management teams for more than 25 years, there is really nothing more pleasurable and profitable for a business and its owners than finding ways to lower their expenses. Over time, a businesses’ expenses can become bloated and having a new set of eyes review their financial data, such as financial statements, invoices, and other key documents, is a great way for business owner’s and their management teams to re-gain some financial perspective.
Recently I began working with a business that was introduced to me by a center of influence (COI) that I call on often for referrals. Developing your network of COI’s is one of the best ways to prospect and build a list of clients and customers. COI development is a topic I will save for another time; however, if you would like to know more about this sales development technique before then, don’t hesitate to contact me through my website listed below.
My COI warned me that the business owner he was referring to me was an expert in all aspects of running his business. I was told that the only reason he was agreeing to speak with me was as a courtesy to my COI because ultimately he did not believe that I would be able to show him how to reduce his businesses’ expenses by any significant amount. I was more than willing to take up this challenge and I worked with the business owner over a period of several weeks and was finally able to get some information to review which I thought would bear financial fruit. After a few days of analysis, low and behold, I showed the owner a way he could cut one of his expense categories by more than $8,000 annually.
Another client I work with owns a large business, and has a full-time chief financial officer (CFO). I have known the owner for many years, and I initially pitched him on the idea that I would come in as a second set of eyes. I told him my goal was not to see if the CFO was doing anything wrong, but rather that I wanted to serve almost as a member of the accounting and finance team with a different skill set. I told the owner that I would look at his business from my perspective, which was different from his accounting staff’s because of my background in banking and finance.
Having been in banking for many years and as a CFO of a large company myself, I know it takes a team of people, inside and outside of the company, to properly run the finances of a business with any size to it at all. I had a number of outsiders that were members of my team, and they provided a wealth of expertise and financial value.
Once I made the CFO comfortable that I was not there to make her look bad or try to take her job, we targeted several areas. After getting the financial data I wanted to review, I was ultimately able to show the business owner and the CFO where they could make some adjustments and save nearly $50,000 on an annual basis in several expense categories.
These are just two examples of the monetary value a business financial consultant can provide to owners and their businesses, and I know consultants like myself have many success stories of their own. Having a knowledgeable consultant come into a business, review financial and other data with a fresh set of eyes, and then help management implement any identified expense savings strategies is a great way to put money back into the pockets of the business and its owners.
February 08, 2012
By: J. Dilworth