Financial Consulting

Frequent Financial Fears Of Entrepreneurs

  • If your business doesn't grow, or worse yet if your business is losing money you might have to move back in with your parents.

  • There are multiple factors that contribute to your business's profitability, read below to see what factors may be impacting your company.

  • You need to spend money to make money, but you need to spend money in a smart and strategic way.

The Old Way of Tracking Your Financial Health Is Trouble

The old way of tracking your financial health is constantly looking at your bank account to track revenue and expenses very roughly.

The old way of tracking your financial health is just believing “you need more sales” and all your problems will be solved (there’s plenty of ways of solving your problems as outlined further down in this page fyi).

The old way of tracking your financial health is micro-managing all the expenses of your business which can take critical attention away from bigger priorities in your company.

The old way of tracking your financial health is annually hiring an accountant to do your bookkeeping, and getting vague guidance on how to improve your financial health.

The old way of tracking your financial health is having to hire a CFO which will cost you $333,000 to $570,000 dollars per year (and that’s just the base salary cost not including bonuses or shared equity in your company).

You Probably Have A “Rough Idea” Of Your Financial Health

If you are a typical small business owner, you probably track your finances “roughly” because serving the customer is your primary objective. When I say you track your finances roughly I mean that you have a general idea of what revenue is, what your monthly expenses are, and what your profitability is.

Furthermore, you are probably overly focused on serving your customer (which is a good thing) however because of this you don’t have time to do due diligence regarding your financial health.

MiyakiZilla Financial Consulting Focuses On 3 Key Areas

Profitability

Profitability is the core financial metric that you should care about.

Solvency

Solvency is defined as the possession of assets in excess of liabilities or the ability of your business to pay its debts.

Liquidity

Liquidity in business is a company's ability to pay its financial obligations by having enough cash or assets to cover expenses and debts.

Get Financial Help Now

Protect And Grow Your Profit

Profitability is the core financial metric that you should care about. You have got many options to increase your profitability, and your job is to find and decide what are the most important options that you should implement in order to strengthen your company’s profitability the most. You can increase your profitability by:

  • Increasing customer retention
  • Cutting expenses
  • Upselling current customers
  • Finding new customers or markets
  • Increasing customer lifetime value
  • Creating Profit Strategy Roadmaps
  • Understanding what KPIs most directly tie to profitability
  • Innovating your product or service
  • Defining and focusing on your most profitable customers
  • Identifying bottlenecks in your business that are holding back profitability
  • Increase your prices
  • Optimize pricing
  • Outsource tasks to reduce expenses
  • Review your product portfolio
  • Analyzing your competition
  • Boosting your companies productivity

    As you can see, the number of methods to increase your profitability is quite expansive. If you want specific guidance for your situation, sign up for a free consultation.

Strengthen Your Organization’s Solvency

Solvency is defined as the possession of assets in excess of liabilities or the ability of your business to pay its debts. Solvency is also known as the ability of a company to meet its long-term debts and financial obligations. If you CAN’T meet your long-term debts and financial obligations you run the risk of being insolvent. Improving your solvency can typically focus on reducing your debt or increasing your cash flow. Strategies to reduce your debt or strengthen your cash flow could include:

  • Prioritizing debt

  • Restructuring debt

  • Negotiate Better Payment Terms

  • Cut Unnecessary Costs

  • Increase Your Customer Base

  • Increase The Average Amount Customers Spend

  • Increase The Number Of Times Customers Make A Purchase

In general, on the topic of solvency, you should have targets for the following ratios:

  • Debt-To-Asset Ratio

  • Debt-To-Equity Ratio

  • Debt-To-Cash Flow Ratio

The targets of solvency and the above ratios vary by business and industry. You need solid targets to aim for. To get your specific targets for solvency, and to understand what solvency improving strategies you should prioritize, book a free consultation.

Improve The Liquidity Of Your Business

Liquidity in business is a company's ability to pay its financial obligations by having enough cash or assets to cover expenses and debts as they come due. It's important because if a company doesn't have enough liquidity, it might not be able to pay its bills, meet payroll, or make investments in the future.  Strong liquidity means there's enough cash to pay off any debts that may arise.

So how do you improve your business’s liquidity, once again there are a multitude of ways of doing this, your business can:

  • Accelerate receivables

  • Reduce overhead

  • Minimize expenses

  • Pay off debts faster

  • Improve invoice collection

  • Improve management of cash flow

  • Extend accounts payables

  • Refinance your debt

  • Change your payment cycle

  • Manage your working capital

  • Eliminate or sell unproductive assets

  • Have a balanced investment strategy

  • Diversify funding sources

  • Establish cash reserves

  • Sell assets

  • Increase sales

  • Access lines of credit

  • Manage your inventory levels

  • Negotiate for longer payment cycles

  • Automate and go digital

Once again, there are a lot of choices you have to decide between because you can’t do everything at once.  To understand what decisions to prioritize in terms of improving your Liquidity, book a free consultation.

See What Value You Get From A Financial Analysis Consultation

Overview Of MiyakiZilla Financial Consultation

In a Financial Analysis Consultation, our core focus will be improving your profitability as fast as possible so you get results as fast as possible.

How does this work?

Essentially we will use a MiyakiZilla Inputs and Outputs Formula to understand what decisions will have the biggest return on investment.  All of the above financial strategies have an input of time/effort and potential cost in terms of money.  The above financial strategies also have a projected dollar value returned to your business. 

Our goal in the consultation is to understand what is the highest cash output (cash in your pocket) per time and money input it takes to execute that strategy.  Once we see what will give you that fastest return on investment, those will be your highest priority activities.

Excited to solve the financial problems within your business?  If so get get a free consultation