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Phase IV - De-Mystifying Management Reports

The last phase is to show you how to read the reports you receive, so you can monitor your profits and cash flows.

I will meet with you to discuss the financial reports for the first couple of months. I will provide you with suggestions to help you to identify favorable or unfavorable trends.Depending on your industry, I may also provide you with ratios for your staff to calculate. These are ratios that may help you currently, or that a prospective buyer might use to analyze your business's profitability, cash flow, and return on investment. I will also try to provide you with statistics applicable to your industry. This will help you to identify favorable or unfavorable trends compared to peers in your industry. Using this information, you can take appropriate action to maximize favorable trends or to minimize unfavorable trends. Ultimately, this should increase your current cash flows, and the cash flow you will receive from selling your business at a premium because you showed you operated a profitable business with positive cash flows.