Capital Cents » Financial

Outsource your CFO Functions

iamokruok — Thu, 24 Sep 2009 12:08:19 +0000

Great article in the Wall Street Journal titled For Rent: Chief Financial Officer.

Capital Cents can provide your business the same services for a fraction of the cost outlined in the article.

Break Even Analysis

iamokruok — Wed, 23 Sep 2009 14:26:06 +0000

A break even analysis is an important metric for any business owner or manager. How much revenue must you generate to cover all your costs and keep your company moving through this tough economic climate? Your costs should include everything that assists in generating revenue. Examples include employees (including benefits), materials, overhead, and insurance.

The first step to a break even analysis is to have a good tracking and records management in a spreadsheet. Understand where all your costs are coming from and the impact each cost has. Costs can be variable or fixed and you should take both into account in your break even analysis. A fixed cost is something that does not change in a given year, such as insurance, employees paid via yearly salary and rent, these are normally the easiest to deal with. A variable cost is something that changes with quantity or time, commissions on sales are a variable cost, materials are almost always variable (as the price changes daily with supply and demand), and hourly employees.

After your costs are understood and accounted for you need to do the same for your revenue sources. Now if you sell a service or good you can figure out exactly how much you need to sell to cover you costs. Of course just covering your costs isn’t the goal of any business but in this tough economic climate staying alive while our economy slowly rebuilds is great for you, your employees and your customers.

Capital Cents are experienced providing break even analysis for our clients. If you need help Contact Us today!

Financial Modeling & Data Analysis

iamokruok — Tue, 22 Sep 2009 22:25:37 +0000

Did you know the owner of Capital Cents used to manage revenue exceeding $40,000,000 dollars per year? That responsibility has made Capital Cents the industry leader it is today in Data Analysis and Financial Modeling. We push Microsoft Excel to it’s limits to help your company.

Data Analysis – No data set is too big or too small, we will show you how to optimize your data by collecting, manipulating and creating metrics that measure it. The data from your website, financial statements, market, or even scientific data is valuable and we can help ensure you are making the most of it.

Financial Modeling – Let us provide “what if” scenarios by modeling your theories, operations, capital requirements, or industry trends. Each of our models is tailored to specifically meet your company’s requirements and we create easily updated or automated models utilizing Excel.

Excel Experts

iamokruok — Sat, 12 Sep 2009 14:45:20 +0000

At Capital Cents we are experts in applications, analysis, and best practices of Microsoft Excel. We have the capability of taking your complex business data and creating simple easy to understand charts, graphs, forecasts and analysis. Capital Cents will then take this information and provide a full briefing to your decision makers to help ensure “Your Capital is Making Cents”.

Your Company’s Capital

iamokruok — Mon, 31 Aug 2009 13:30:36 +0000

Your company’s capital is it’s greatest asset but your company doesn’t need lots of money to have a lot of capital. A great definition of the word capital is any form of wealth employed or capable of being employed in the production of more wealth (link see #6). Have you ever heard someone say “Wow, he is a just a wealth of knowledge”? Wealth is little more than an abundance of some possession or resources.

No company is without some type or types of capital, you just need to figure out the best way to leverage it in return for money or greater opportunities. Your company could have a wealth of intellectual property, employees, production capabilities, cash (the end goal for most companies), or something else. Remember, your looking for anything you have an abundance of which can be exchanged for more of something else.

So how can you make the most of your capital?

Forecasting a Top Concern

iamokruok — Thu, 13 Aug 2009 19:30:22 +0000

In this uncertain economic climate forecasting should be a top internal concern for your business. As a matter of fact a recent survey ranked the ability to forecast #1 followed closely by working-capital management. So why should your business be concerned with forecasting?

If your business can survive this bad economic climate when the corner is turned; your company will be in much stronger position. Over 80% of finance executives are spending more time on forecasting and other financial metrics. These forecasts allow your company to run various “what if” scenarios to assess the impact of the changing economic environment both today and in future years. To make your forecast as accurate as possible follow these tips.

Hire experienced forecasters
Gather information and data
Use and work from your budgets
Have accurate Net Income and Balance Sheets
Understand your cash flow

So Contact Us today, Capital Cents has been providing forecasts for large and small companies for over 5 years. Let us help you gain financial control of your company and help move your company through this tough economic climate.

Valuations

iamokruok — Tue, 04 Aug 2009 22:04:34 +0000

Recently, I was called to help a small business with about 25 employees ready itself for sale. The small business had no employees on staff or consultants looking at the future. During this tough economics crisis the cards came falling down. In a matter of days they had laid off 19 hard working employees and the owners had decided to sell the company for whatever they could get.

Capital Cents was called in to help the owners of the company create a valuation and form a strategy to present their case to potential buyers for either the whole company or pieces of it. After sitting down with the owners we came to the conclusion that they had three divisions that they could sell.

Future Maintenance Fees
A new product which was about 75% complete
Other Assets

The owners and Capital Cents reviewed the yearly inflow of revenue from the maintenance fees and took into account any costs associated with keeping the customer happy. After that we created a present value of those cash inflows by estimating a rate of return. Going through this exercise gave the owners the opportunity and insight into not only their own business but also allowed them the unique perspective of viewing it from a buyers perspective. It was a real eye opener for them because for the first time they were seeing a number to value what those future cash inflows were worth today.

Stay tuned to follow our process through valuing the new product and other assets.

Our first example of what Capital Cents can do for you and your company.