Profit Optimization and Value Enhancement For the Small to Medium-Size Enterprise (“SME”)

Financial Management Manage Margins Cash Flow

Communication & Coordination Accountants are from Mars Are backward looking Are recording, organizing & reporting what happened in the past Have knowledge of what has happened Can produce tremendous amounts of data Can produce any type of report you want, but do not know what you need Entrepreneurs are from Venus Are forward looking Envisioning, planning & creating Have knowledge of what is planned. Needs information for decision making, not data Does not know what is available therefore does not know what to request

Business Templates & Tools for SMEs SME Business Owners and Officers need to analyze their businesses regularly using financial analysis tools that can give them insight into their firms just like Major Corporations. Such as:  Trends in Key Financial Measures  Optimal Profit Available to the Firm  Asset Financing  “Z” Score Underwriting Risk Assessment  Ratio Analysis Introduction  Breakeven Concepts  Trade-off of Cutting Costs vs.. Increasing Sales Data Information Good Decision Making Success

Optimal Profitability Using Historical Income Statement Data for the Most Recent 3 or 4 Years You Can Create an Optimal Income Statement Utilizing the Minimum Cost Line Item Expense-to-Sales Percentage Experienced by Your Company The End Result is a Dramatic Difference in Current Year Profits vs. Optimal Profit Potential As can be seen in the following real world example, the Company was recording a Pretax Profit of $172,083 when they could have been earning a Pretax of over $493,986 if they had achieved their “Optimal Performance”. This equates to Profit Improvement of almost $322,000!

Asset Misfinancing Many Firms erroneously use Short-Term Capital to finance Long-Term Assets. This is a big mistake. The Results can be felt throughout the Firm. Working Capital and Profitability are adversely affected when this is allowed to happen.

Key Financial Ratios Few Companies regularly pay attention to their financial ratios other than current ratio and net profit ratio. A historical look at 14 Solvency, Safety, Profitability, Asset Management and Turnover Ratios can give you insight if you graph their trends. Are these ratios moving in the right directions?...

Z Score Financial Risk Assessment Z Score Ratings are frequently used in the Banking Community to Assess Risks of Underwriting Loans or other financial instruments. The 5 Ratios used in this analysis have been shown to be successful bankruptcy predictors. Edward I. Altman, Professor at New York University.

Break Even Point Analysis Many SME Firms have a limited Customer Base where a Single Client may account for 20% or more of the entire revenues of the Firm. If the SME Firm should lose this Critical Customer, can the Firm still Break-Even, or does it know what cuts must be made to reclaim Breakeven? Most Firms don’t know the answer to this question.

Turnaround Strategy and Plan

Weekly Cash Management Details

The Medical Center Budget by Line Item

Profit Optimization and Value Enhancement For the Small to Medium-Size Enterprise (“SME”)