Top Ten Tips - Dave Bittner
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Top Ten Tips - Dave Bittner

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Slides used for Dave Bittner's presentation at PressNomics 2012.

Slides used for Dave Bittner's presentation at PressNomics 2012.

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  • 1. 1. Vision Translate from gen’l to fin’l Top Ten Financial Tips for Business Owners • What do you want to be? • What, how & when will biz reward you? • Chart course to get there Dave Bittner • Pattern after role models • Choose SMARTCODE goalsbean$talk CFO GROUP greenhou$e BOOKKEEPING 2. Operational Structure 3. Planning & Budgeting simplify & standardize• Minimal moving parts • Fin’l road map that leads to vision• Repeatable, systematized, automated • Responsibility accounting (perf by mgr)• Recurring revenue • Monthly rev, exp & cap budgets• Pipelines for all key ingredients • Translate to cash flow – Cash, customers, personnel, vendors, etc. • CSF targets: prof, prod, eff, liq• No single point of failure • 1 metric = pulse (e.g., hit count) Step back, check for: 4. Responsibility• Reasonableness • FlowChart > OrgChart > AcctChart• Data relationships intact – 1-to-1 & 1-to-many Many-to-1• Plan makes sense as whole • Show staff how ea impacts fin’l perf• No Lotusology errors • Share resp for fin’l goals – Can I count on you? • Hold accountable • Incentive comp: loss aversion? 1
  • 2. 5. Controls & Safeguards 6. Measurement & Reporting • What gets measured gets improved• Background checks (incl ref & credit) • Mthly budg v act’l P/L and Dash of CSFs• Limits of Authority • Mthly CF, BS, unit profit, A/R(w)• Independent approvals • Measure indiv, teams & processes• Segregation of Duties • Timely, accurate and actionable• Surprise Tests/Audits • Public accountability• Insurance 7. Leverage 8. Cash Flow• OPM • Growth paradox: cash intensive• Use debt to multiply power of your $ • Arrange financing early: up to 18 mos• Up to 2x equity (PIC + RE – Distrib) • Keep cash + AR:• Debt costs less & has tax adv – Pre-profit: > 6 – 18 mos outflow• Have pipeline of equity investors, too – When profitable: > 1.5x monthly outflow • Near-term: use 8-week cash forecast 9. Focused Diversification 10. Fin’l Talent & Toolbox • Surround self w entrepreneurial team• Less is more • Strong fin’l function will help w growth:• For max fin’l adv, focus resources on – Planning, control, fundraising, advice mkt niches • Internal resources on strengths & opps• To mitigate risk, vary cust, equip & investments • Outsource non-core functions 2