Five Things to Consider When Creating Employee Bonus Plans

Posted on May 22, 2013 by Arthur Rothberg

Five Things to Consider When Creating Employee Bonus PlansPayroll represents a significant expense for most Los Angeles and Southern California businesses. Given this, it’s somewhat surprising how few owners and executives look at compensation from a strategic point of view.

Instead, most business owners simply try to determine what the going salary or wage is in their area for a particular job function or title. Then, they base their compensation on this, either matching it or offering a little more or a little less, depending on their philosophy when it comes to employee compensation. A similar lack of strategic thinking also usually goes into structuring employee bonuses.

This article…

Five Things to Consider When Creating Employee Bonus Plans

…poses a series of four questions, the answers to which help determine the structure of bonus plans. Included is a “what if” scenario for structuring a tiered employee bonus plan tied to customer retention. Also reviewed are five recommendations that contribute to an optimized bonus plan structure.

One of the biggest benefits of bonus plans is that they can help encourage your employees to think and act like business owners, not just employees. A CFO services professional – either as an interim CFO, a part-time CFO, or a one-time project-based CFO – can help you structure a bonus and compensation plan that is aligned with your company’s objectives and provide the necessary incentives for your employees to act in your company’s best interests.

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Customer Loyalty: Five Ways To Make It Stronger

Posted on May 15, 2013 by Arthur Rothberg

Customer Loyalty: Five Ways To Make It StrongerYou would think that most Los Angeles and Southern California executives would spend the bulk of their time, money and energy on building customer loyalty and supporting customer retention by strengthening existing customer relationships.

It is a commonly accepted fact that it is less expensive and more profitable to retain customers than to try to go out and obtain new ones. Research also bears this out: A study conducted by Bain and Company concluded that it costs between six and seven times more to acquire a new customer than it does to keep an existing one.

In our experiences, though, this isn’t necessarily the case. Many companies often take their existing customers for granted and spend an inordinate amount of resources going after new business. We’re not saying that prospecting for new customers isn’t important – of course it is. However, prospecting efforts should be balanced out with efforts to strengthen existing customer relationships, build stronger customer loyalty and boost customer retention rates.

In the context of reaching the right customer retention vs. new customer prospecting balance, this article…

Customer Loyalty: Five Ways To Make It Stronger

…first reviews the three core elements of customer loyalty: customer relationships, customer retention, and customer referrals. The article then recommends five areas in which innovative initiatives have significantly enhanced customer relationships and driven greater customer loyalty: customer service, customer loyalty programs, customer complaints, customer expectations, and customer “touches.”

Many Los Angeles and Southern California business executives are missing out on a tremendous opportunity to grow their businesses and increase profits by failing to focus on boosting customer loyalty, customer satisfaction and customer retention. The key is to balance your prospecting and new business development efforts so that you’re spending time, money and effort on both in the right proportion. A formerly-seated chief financial officer – acting in the role of interim CFO, part-time CFO, or project-based CFO – can deliver the CFO services needed to help you find the right balance for your company.

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CFO Services: Benefits for Clients of Attorneys, Bankers & Capital Firms

Posted on May 8, 2013 by Arthur Rothberg

CFO Services: Benefits for Clients of Attorneys, Bankers & Capital FirmsIt’s not uncommon for professional services and investment firms to be approached by businesses seeking financing. In our conversations with fellow professionals – at investment banks, law firms, and venture and equity firms – we frequently hear that they have or know of available financing, but many of their clients are woefully unprepared when it comes to presenting their financing requests.

Many small businesses do not have the financial or management expertise required to prepare this kind of presentation. The good news is that an outsourced CFO services provider can help these businesses prepare a thorough, professional presentation that will greatly increase their chances of obtaining business financing.

This article…

CFO Services: Benefits for Clients of Attorneys, Bankers & Capital Firms

…reviews specific ways a CFO services provider can help clients of professional services firms prepare a financial presentation. Also discussed are eleven additional examples of areas where a part-time CFO or a project-based CFO can help professional service firm clients improve financial and operational outcomes.

It can be frustrating for lenders and investors to meet with Los Angeles and Southern California executives who need financing but are unprepared due to their inability to create a comprehensive financing package. In these situations, an a formerly-seated chief financial officer with an outsourced CFO services firm can provide valuable assistance in helping business owners prepare a thorough, professional presentation that will greatly increase their chances of obtaining financing.

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Seven Ways a First Full-Time CFO Could Help Your Business

Posted on April 30, 2013 by Arthur Rothberg

Seven Ways a First Full-Time CFO Could Help Your BusinessOwners of small and mid-sized businesses in Los Angeles and Southern California face many proverbial forks in the road throughout the lives of their companies. One of these is the decision about whether they should hire a full-time chief financial officer and, if so, when is the right time to do this?

There is no one-size-fits-all answer to this question — it depends on many different factors and will vary from one company to the next. But there are a few general guidelines you can follow to help you make the right decision for your company.

Beginning with a look at the differences between a CFO and a Controller, this article…

Seven Ways a First Full-Time CFO Could Help Your Business

…discusses seven specific areas where a CFO can provide strategic assistance that drives improved performance and profitability.

Los Angeles and Southern California business leaders who reach a certain point in their company’s life cycle may be faced with a decision about hiring a full-time CFO. A hire of this nature is a big step and should be done weighing the potential benefits against the costs, in terms of both the money required to hire a well-qualified CFO and the time required to make sure he or she adds maximum value to the business. An outsourced CFO services provider can help you analyze all the factors involved in this decision, as well as interview and vet potential candidates.

Posted in CFO Performance Measurement, CFO Services, CFO vs. Controller, Financial Strategy, Growth Strategies, Leveraging CFO Expertise, Outsourced CFO Services | Tagged , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Five Reasons to Take a Closer Look at SBA Loans

Posted on April 23, 2013 by Arthur Rothberg

Five Reasons to Take a Closer Look at SBA LoansEven with improvements in the business credit environment over the last several months, it can still be challenging for Los Angeles and Southern California businesses to secure financing needed to support growth and working capital requirements.

This is especially true for start-ups and credit-challenged companies – for example, those that are dealing with financial difficulties and cash flow challenges (even if temporary) that make them unattractive to a bank from a risk perspective.

Because the U.S. Small Business Administration guarantees repayment of a portion of loan proceeds thereby reducing underwriting risk, companies with credit challenges, start-ups, and now a broader range of small businesses may be able to secure financing through SBA loans.

This article…

Five Reasons to Take a Closer Look at SBA Loans

…looks at enhancements to the most popular SBA loan programs – including the SBA 504 program – generated by the Small Business Jobs and Credit Act. Reviewed are specific areas that illustrate broadened eligibility and process streamlining. Also identified are the elements that should be included in an SBA loan application.

Los Angeles and Southern California executives in need of financing should take a close look at SBA loan programs as legislative enhancements to the most popular ones have expanded their appeal. An outsourced CFO services provider can help you determine the right SBA loan program for your needs, as well as offer assistance in preparing your SBA loan application package.

Posted in Business Loans, CFO Services, Debt Financing, Financial Strategy, Outsourced CFO Services, SBA Loans | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Wholesaler & Manufacturer Challenges: Pricing & Credit Management (Part 4)

Posted on April 16, 2013 by Arthur Rothberg

Wholesaler & Manufacturer Challenges: Pricing & Credit ManagementIn this final installment of the four-part series…

Wholesaler & Manufacturer Challenges: Pricing & Credit Management (Part 4)

…we look at challenges faced by wholesalers and manufacturers in the areas of pricing and credit management.

Pricing is one of the most important aspects of ensuring profitability for wholesalers and manufacturers, but it’s also one of the most difficult things to get right. Four top pricing issues are identified along with suggestions on how to address them.

Managing credit is another area where wholesalers and manufacturers walk a fine line. Your suppliers, of course, want to get paid as quickly as possible, while retailers want to stretch out their payments to you for as long as possible. Four specific challenges are identified and accompanied by three approaches to help resolve them.

In the current uncertain economic and business environment, Los Angeles and Southern California wholesalers and manufacturers can’t afford not to focus on pricing and credit management issues. A provider of CFO services can offer invaluable assistance in these areas by helping you perform a cost analysis, benchmark your pricing, apply best-practice buying processes, review and assess your contracts and accounting functionality, and acquire credit insurance.

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Wholesaler & Manufacturer Challenges: Inventory Processes, Supply Chain Relationships & Distribution Networks (Part 3)

Posted on April 10, 2013 by Arthur Rothberg

Wholesaler & Manufacturer Challenges: Inventory Processes, Supply Chain Relationships & Distribution Networks Continuing our discussion of challenges faced by wholesalers and manufacturers, this new article…

Wholesaler & Manufacturer Challenges: Inventory Processes, Supply Chain Relationships & Distribution Networks (Part 3)

…addresses a new set of challenges that — left unresolved — can erode margins and profits. Reviewed are a number of inventory process inefficiencies that an outsourced CFO services firm can help resolve.

The article looks at supply chain relationships and challenges presented by less-than-favorable contract terms with up-chain, down-chain, and financial partners. Also discussed are distribution networks that can include retailers, selling partner intermediaries, and end user customers.

Manufacturers and wholesaler profitability and cost structures are closely tied to process efficiencies. When considering an outsourced CFO services firm, make sure to look for one with formerly-seated chief financial officers who have deep, hands-on operational expertise in understanding, evaluating and solving the root causes of operational inefficiencies. An outsourced CFO of this nature can offer invaluable assistance in increasing efficiencies and reducing costs — both critical to improving margins, profitability and growth rates.

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How to Prepare a Business Loan Presentation

Posted on April 3, 2013 by Arthur Rothberg

How to Prepare a Business Loan PresentationThe immediate aftermath of the financial crisis produced a credit freeze that made it difficult for even creditworthy Los Angeles and Southern California companies to obtain business loans to support working capital needs and growth. As the economy has gradually improved, however, the credit freeze has begun to thaw somewhat, and some businesses are finding lenders to be more flexible than they were a year or two ago.

Regardless of the credit environment, the best way to increase your chances of landing a business loan is to put together a quality presentation.

This article…

How to Prepare a Business Loan Presentation

…discusses the key elements of a successful business loan presentation: loan objectives, five important questions your presentation should answer, the financial documents to include, and recommendations on the presentation process.

While Los Angeles and Southern California business leaders and financial executives may find that obtaining business financing is a little easier today than it was a year or two ago, this doesn’t make thorough preparation of the loan application package any less important. An outsourced CFO services provider can offer invaluable assistance in this area by helping you package your financials so that they provide all the information the lender will need to make a fast decision on your loan request.

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Wholesaler & Manufacturer Challenges: Strategic Cost Containment (Part 2)

Posted on March 27, 2013 by Arthur Rothberg

Wholesaler and Manufacturer Challenges: Strategic Cost Containment (Part 2)Cost containment is critical for wholesalers and manufacturers, given the tight margins that most of them work within – not to mention the fact that they often must share profits with retailers. Often, however, they don’t have access to accurate and timely reporting, which hinders their ability to fully assess and, thus, control their costs.

This article…

Wholesaler and Manufacturer Challenges: Strategic Cost Containment (Part 2)

…looks at three areas of particular concern for wholesalers and manufacturers when it comes to strategic cost containment: shipping, chargebacks and commissions. Along with a review of the causes of cost challenges, the article looks at some ways an outsourced CFO services provider can help resolve issues and reduce costs.

In the current uncertain economic and business environment, Los Angeles and Southern California wholesalers and manufacturers can’t afford not to focus on strategic cost containment. A provider of CFO services can offer invaluable assistance in this area by helping ensure access to timely and accurate reporting information, as well as digging into the three areas covered here – shipping, chargebacks and commissions – to help optimize processes and contain these costs.

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Wholesaler & Manufacturer Challenges: Cash, Credit & Capital (Part 1)

Posted on March 20, 2013 by Arthur Rothberg

Wholesaler & Manufacturer Challenges: Cash, Credit & CapitalIn the course of our work with many wholesalers and manufacturers, we hear about the different financial and operational challenges these businesses face. In this new series of articles, we take a close look at both these challenges and the potential solutions that an outsourced CFO services provider can help implement.

This initial article…

Wholesaler & Manufacturer Challenges: Cash, Credit & Capital

…looks at challenges in two areas: 1.) cash flow, cash management and reporting and 2.) lines of credit and working capital. Reviewed are causal factors for the challenges along with recommended solutions to improve results.

Due to significant cost structures and narrow margins, Los Angeles and Southern California wholesalers and manufacturers must maximize operational performance to boost cash flow and profitability. A provider of CFO services works closely with these businesses to identify high-value opportunities to improve results and to implement solutions that resolve challenges like those discussed here.

Posted in AR & AP Management, Business Loans, Cash Flow, Cash Management, Financial Strategy, Outsourced CFO Services, Wholesaler & Manufacturer Challenges | Tagged , , , , , , , , , , , , , , , , , , , , | Leave a comment