Is Fractional Leadership Right For Your Company?

As the term fractional executive continues to gain popularity, many business owners are left wondering what it means and if it’s the right move for their company.

With the economic-induced uncertainties and the need for agile leadership, more and more companies are turning to fractional executives to access high-level expertise without committing to long-term contracts.  This trend is expected to continue as companies seek to remain competitive in an ever-changing business landscape by leveraging experienced talent.

What is a Fractional Executive?

A fractional executive is a highly experienced and skilled professional who works part-time for an organization on an as-need basis.  They bring a wealth of knowledge and expertise to the table and can help drive growth and success for mid-market companies and start-ups.  With their flexible and cost-effective approach, fractional executives can provide invaluable support in areas such as strategy, finance, operations, and marketing.

For companies experiencing rapid growth or a major change, the need for experienced executives who can provide strategic guidance and leadership is becoming increasingly important.  However, not all businesses have the resources to hire a full-time executive.  This is where fractional executives can be a real game-changer.  They can provide high-level expertise and support on a part-time or project basis, ushering in much needed guidance.

Additionally, fractional executives are experienced professionals who can fill various vacant roles within a company, ranging from CEO to CFO, COO and CMO, depending on the specific needs of the company.

Demystifying Support Roles

With so many buzzwords in the industry, it can be challenging to determine which level of experience and dedication is appropriate for your company’s needs.  Let’s see if we can clarify the differences between a fractional executive, consultant, interim executive, and advisor.

Fractional executives provide part-time executive leadership to companies that may not need a full-time executive.  There typically is no end date to their role.  They may take on specific projects or responsibilities, such as developing a new product line or managing a particular department or spearheading a new initiative.  Truly, they are the right-hand guide to a CEO and owner, represent your company and can lead your teams.

Interim executives, like fractional executives, provide temporary leadership to a company during a period of transition or change.  This may include filling a vacant executive role or leading a company through a merger.  The roles are usually a full-time position. 

Consultants, while also providing expertise to companies, typically work on specific projects or initiatives for a set period.  They consult your teams and are not embedded within your company.  They may specialize in areas such as marketing, finance, or operations, and often work independently or as part of a consulting firm.

Business advisors typically work with companies over a longer period, providing guidance on strategy, operations, and growth.  They often act as a sounding board for executives and offer ongoing support throughout the business lifecycle.  However, they do not lead teams within the organization, are not full time nor part time, and do not represent your company.

Understanding the differences between these external support options can help you make more informed decisions about the type of expertise your company needs at any given time.  Whether you’re looking for ongoing guidance or short-term project support.

Hiring fractional executives comes with benefits, too!

The benefits of hiring a fractional executive are numerous. They can provide valuable insights and industry knowledge, help develop and implement growth strategies, and provide guidance during times of change or crisis. Additionally, they can offer a fresh perspective and unbiased opinions that may not be available from within the company. They can oversee high-stakes initiatives, fill a vacancy or help you define the role for the first time.

By hiring a factional executive, especially in terms of a CFO role, companies can benefit from cost savings, a fresh perspective, leadership, experience, and multi-disciplinary expertise.

Leadership roles, such as a fractional CFO, are in high demand.  They will help a company use their money more effectively by providing their services on a part-time basis.  Fractional CFOs are can be paid on a project basis or hourly rate, which means businesses only pay for the time and expertise they need.  This can be a cost-effective solution for businesses that need high-level expertise but don’t have the budget for a full-time executive.

Fractionals can bring a fresh perspective to a business, offering new insights and ideas that can help a company overcome challenges, grow and improve financial health.  Additionally, a fractional CFO can provide leadership and direction in the financial decision-making process and provide a wealth of experience to the table, having worked with a variety of businesses and industries.  Their multi-disciplinary expertise can help organizations achieve growth in various areas of the business.

Flexibility is also a key to working with fractional executives as they can adapt to a business’s changing needs.  They can work with a company on a short-term or long-term basis depending on specific needs and requirements.

Another key benefit is access to a network of professionals.  Fractional executives have a vast network of contacts in various industries.  This means they can help a business connect with potential partners, investors, customers and professionals such as bankers, attorneys, CPAs, brokers and more.

An external fractional CFO can offer unbiased advice without being influenced by internal politics or personal relationships.  This objectivity can lead to more informed and effective decision-making.

When is the Right Time to Hire A Fractional Executive?

As businesses navigate the challenges of today’s economy, the need for strategic guidance and specialized expertise is more important than ever.  Fractional executives offer a unique solution, providing all the benefits of an experienced executive without the high cost of a full-time hire.  With fractional executives, businesses can enjoy the flexibility and scalability they need to succeed, while benefiting from an objective perspective and mentorship from seasoned professionals.

Knowing when to hire a fractional executive can be a challenge. In terms of hiring a fractional CFO, many companies experience these clear warning signs:

  • Financial reporting is becoming more complex and time-consuming.
  • Cash flow is not managed and monitored effectively.
  • A major change or challenge, such as a merger or acquisition, expansion, or product launch is looming.
  • There is a gap in financial forecasting or budgeting.
  • Lack of sales or inconsistent or unpredictable revenue streams.
  • The organization is lacking a true business plan and not able to focus on strategic planning.
  • Company growth has stalled or declined.
  • Hiring and finding finance and accounting talent is challenging.
  • Company expenses are skyrocketing.
  • Competition is becoming fierce.
  • The company owners are seeking to sell the business or acquire another company.

As a business owner, having access to financial expertise and support is crucial for making informed decisions and achieving long-term success.  A fractional executive can serve as a trusted guide, providing insight and advice to help fund growth, improve profitability, avoid risk, and plan for a successful exit strategy.

Kick-Start the Search Process
For those companies in need of fractional executives, take the time to define your needs and goals.  This will help you narrow down your search and find someone who can provide the specific expertise and support you need.

However, finding the right talent can be tricky. It’s important to look for someone who aligns with your vision, personality, and goals.  Look for someone with relevant experience and a proven track record of success and even experience in your industry.  This will ensure that they have the necessary skills and expertise to help your business grow.

Networking and referrals can also be useful in your search for a fractional executive.  Reach out to your professional network and ask for recommendations.  You can also ask other business owners in your industry for referrals.

AE Tucker is Here to Support Your Business

At AETucker Consulting, we specialize in providing CFO and business advisory services to help growth minded businesses achieve their goals.  As a fractional executive, Andrew Tucker works closely with clients to identify opportunities for growth, streamline processes, and optimize financial performance.  Whether you need assistance with financial planning, budgeting, or forecasting, or exit planning, Andrew can provide the guidance and support you need to succeed.  Contact me to learn more about how we can help your business thrive. Please reach out at: Andrew@AETuckerconsulting.com or call 704-651-2216.

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Benefits of a Fractional CFO You May Not Know

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As a business owner, it’s important to have a clear vision for the future of your company.  When you think about where you want your business to be in three, five or ten years, you need to consider factors such as market trends, economic conditions, customer demands, and technological advancements.

Is revenue growth and profitability on track to take your company to your next milestone?

Are you looking to expand your customer base, or introduce new products or services, but not sure where to start?

Do you have plans to purchase a business or sell your own business, yet unsure of the timing and steps?

Whether you’re looking to optimize your financial performance, improve your cash flow, or prepare for a major business transaction, consider these reasons that it may be time to hire a Fractional CFO.

Improve Profitability

People, processes, and technology all link to the ability of a company to be profitable.  By providing expertise in financial management, a Fractional CFO can help improve your business’s bottom line by identifying and addressing inefficiencies in your financial operations and product and service pricing.  They can assist in helping implement expense-controlling measures, identify areas that are inefficient, where you can cut back, negotiate better deals with suppliers, and streamline processes to improve time management and eliminate waste.

Optimize Cash Flow

A CFO will put an effective cash management system in place.  By managing the cash cycle, the company improves collections, pricing, and terms; all adding to increased liquidity.  This includes managing capital, debt obligations, and ensuring the ability to invest in new projects.  A CFO can create a solid forecast, so you avoid being blindsided by the cash flow problems that accompany rapid growth.  Furthermore, they will establish collection policies, payment terms with customers and suppliers, monitor inventory levels, and invest excess cash in profitable ventures.

Guide in Decision-Making

Without accurate financial data and insights, it can be difficult to make informed decisions.  This is where a Fractional CFO can be a tremendous asset for your business.  They can help you analyze your financial statements, identify trends, and provide insights to help you make better decisions such as where to best make investments, expand the business, roll out new products and/or service offerings.  A CFO can provide objective and expert financial advice while building clarity around goals and action-plans to forecast and meet those financial goals, helping the business owner avoid costly mistakes.

Fund Your Growth

A Fractional CFO can help you access the necessary capital to fund your growth initiatives.  They can work with you to identify potential sources of financing, such as loans, grants, or equity investments, and help you prepare the necessary documentation to secure funding.  With their financial expertise and network of banking contacts, they can educate you on the best options for funding as well as help you take the necessary steps to increase your chances of obtaining the funding you need.

Mitigate and Manage Risk

CFOs, given their expanded role in establishing and executing strategy, have become well positioned to help ensure that a company’s risks are identified, assessed, managed, and integrated into the corporate strategy.  A CFO has a keen understanding of the scope of risks that the organization faces by identifying the risks and classifying them by risk type (financial, compliance, debt, liquidity, operational and security risk).  A Fractional CFO can help you establish internal controls, create financial policies and procedures, and ensure compliance with regulatory requirements.  By taking a strategic approach to risk management, you can minimize financial losses and protect your business from potential legal and financial harm.

Assist in the Business Sale

If you are planning to sell your business, it is essential to have a solid exit plan in place.  One of the primary benefits of hiring a Fractional CFO for your business transition is their expertise in financial planning.  They can help you create a comprehensive financial road map to identify areas where you can improve your financial performance, thereby making the business more attractive to potential buyers.  A Fractional CFO will assist in identifying potential buyers, assemble a team of experts (CPAs, attorneys, M&A firm), negotiate the terms of the sale, and ensure that the sale proceeds smoothly.

Overall, engaging the services of a Fractional CFO can be a game-changer for the business.  Whether it’s developing a financial strategy, improving financial management practices, managing financial risks, or planning for growth or a business sale, a Fractional CFO can help businesses improve long-term value.

AE Tucker Consulting serves owners and management of small to midsize privately held companies to develop and implement strategy, improve cash flows, increase company value, and provide successful business transitions when the time comes.

Let’s start the conversation today on ways I can provide strategic financial guidance.  Please schedule a discussion at a time convenient for you. Schedule–>

Andrew Tucker, CPA, CGMA, MBA

AETucker Consulting

Andrew@aetuckerconsulting.com

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It’s Time for Your Mid-Year Business Financial Check Up

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As we are deep in the month of June, it’s important for business owners to take stock of their operations and prepare for the next six months of 2023.  

Conducting a mid-year business check-up is essential for ensuring the success and growth of your company.  This process involves reviewing your financial statements, analyzing your marketing strategies, assessing your employees’ performances, examining your goals and objectives, and determining if you need to make any adjustments to your budget or pricing strategies.

A typical mid-year review breakdown involves looking at all aspects of your business including: 

  • Financial Health: Are you meeting your financial goals?  How well are you performing against your budget (you do have a budget, right?)  How are your ratios and KPI’s vs. expected results? Dedicate the needed time to evaluate your cash flow and what areas of your business you’re spending too much on.  Your financial health at mid-year can foreshadow what’s to come so it’s crucial to resolve any financial issues.
  • Employee Wellbeing: How long has it been since you talked with your employees?  Is employee attrition/turnover high?  When was the last time an employee survey or evaluation was conducted?  Are you taking proper measures to make your team feel heard?  Do you need to re-evaluate your team structure?
  • Sales & Marketing Efficiency: What audiences could you be reaching that you haven’t yet?  Has revenue met your expectations?  How can you increase your ROI on your marketing expenses?  Are sales numbers growing, declining, or hitting a plateau?
  • Logistics and Operations: Are your products/services being delivered timely and accurately?  Have your margins changed/costs increased (i.e., service & installation costs)?  Have quality or customer satisfaction changed?  When did you last look at your suppliers?  Are they still good partners with your business?

This year, these points are more important than ever.  From global economic shifts to escalating inflation to higher payrolls and customer demands, 2023 has had its own set of unique challenges.  In result, business owners and CEOs like you are adjusting your pricing models and overall strategies to combat what continues to be a difficult economic landscape.

The 6 Point Business Mid-Year Assessment

Financial Health:

A financial health assessment should be done more than bi-annually.  Naturally, the mid-point of the year is a great time to help you identify any areas of concern and make necessary adjustments to ensure you meet your financial goals for the year.  Review your financial statements by analyzing the balance sheet, income statement, and, especially, cash flow statement to assess your business’s financial position.  Look for trends in revenue and expenses and identify any areas where results are not what you expected.

Your cash flow statement is a crucial tool for understanding how money flows in and out of your business.  Use this statement to identify any cash flow gaps and determine whether you have enough cash on hand to meet your short-term obligations.  Compare your actual financial results to your budget for the year. Identify any areas where you may be overspending or underspending and adjust your budget accordingly.  Review your outstanding debt and determine whether it’s manageable given your current cash flow and revenue.  Consider refinancing or consolidating your debt if it’s becoming a burden on your business.  Finally, look for opportunities to improve profitability by identifying areas where you can increase revenue or cut costs to improve your business’s profitability.  Have you considered renegotiating contracts, finding new suppliers, or developing new products or services?  This is the perfect time of year to assess all opportunities.

Inflationary Strategies:

Prices on almost everything have gone up.  Have you been adjusting your pricing accordingly?  Are you taking note of the pricing changes whether it be with your supplier, your deliveries, your sourcing, or cost of production?  Have you thought about creating long-term contracts with vendors, suppliers, or shippers so that the pricing isn’t impacted as much by inflation?  Are your customers staying loyal through your higher prices and are you being transparent with them through the process?

When you do have to raise prices make sure you communicate with your clients your rationale and that they have many other reasons to stay with you and are not motivated to price shop.

Employee Performance:

Mid-year employee reviews are a great opportunity to assess an employee’s performance, acknowledge their achievements, and identify areas where they can improve.  To make the most out of these reviews, it’s important to consider several factors.

Do you have clear expectations for the review process and have procedures to review their job responsibilities and performance goals?  Take this opportunity to review job descriptions and any goals or objectives set at the beginning of the year.  Discuss any progress they have made towards these goals, identify areas where they can improve, provide constructive feedback, and acknowledge their hard work and contributions.  Send out an employee survey to collect feedback and ideas so you can improve the workplace culture.  Good lines of communication will yield rewards.

Customer Satisfaction Measurement:

A mid-year review is a great time to measure customer service performance. When considering how to assess customer service at your company, you will quickly realize that there are quite a few different factors that you could measure. It might also become apparent that focusing on just one area at a time will leave major blind spots.

What is your customer retention rate?  Do you know if your customers are completely satisfied with your service, products, quality, and prices?  Do they see the value you offer, or could they easily be swayed to go to a competitor?  Customer surveys are an ideal tool to get honest, constructive input that you can quickly implement resolution strategies and reach out to customers to further build the relationship.

Marketing ROI:

A mid-year review of your marketing campaigns and programs can help identify what is working well and what needs improvement, enabling the company to make data-driven decisions and adjust strategies for the remainder of the year.  

Start by reviewing your original marketing objectives for the year and assess how well you have achieved them so far.  Are you on track?  If not, identify the areas that need improvement and prioritize them.  Analyze your performance metrics such as website traffic, conversion rates, social media engagement, and lead generation.  Identify which channels are performing well and which ones need improvement. Use this data to optimize your marketing strategies for the remaining months so you can be prudent with your marketing dollars, investing in the best marketing vehicles that will improve your brand awareness and lead generation.

Resource Allocation:

Meet with your Fractional CFO to review cash flows, your allocated funds, and your budget.  Where is your money coming from?  Where is your money going? What department spends the most and why?  Are there certain activities and expenses that aren’t adding value, or a product you sell that doesn’t meet your profitability and margin benchmarks?  Have you invested in programs, machines, equipment, etc. that can drive revenue in the long run?

There are many touch points in building a great business, so taking the time to truly be real and honest about your company’s performance in these key areas can impact the next six months and beyond.

Here at AETucker Consulting, we can help you get there!  Contact me, Andrew Tucker, for help with your mid-year financial check-up. 

I can guide you through an effective midyear assessment and provide action plans to keep you on course. I can be reached by e-mail at andrew@aetuckerconsulting.com or schedule a call on my calendar here -> .

I look forward to starting a conversation with you.

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Reclaim Your Time: Understanding Parkinson’s Law

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As a business owner, do you frequently become frustrated from feeling there just aren’t enough hours in the day to manage and run your business? Have you noticed a tendency for projects to use up all the time that is allotted for the project, even if it could have been completed in half the time? Whether it’s as simple as running a report for your accountant or embarking on a new project for a client, how long it will take you to do it depends on how much time you have.

That tendency for work to expand is the meaning behind Parkinson’s Law. Parkinson’s Law is the old adage that work expands to fill the time allotted for its completion. It suggests that when given a task, we think of how much time is available to complete the task instead of how much time we actually need. The term was first coined by Cyril Northcote Parkinson in a humorous essay he wrote for “The Economist” in 1955.

Let’s suggest you give yourself a week to complete a two-hour task, then the task will increase in complexity and become more daunting – filling that extra time with more work, tension, and stress.  Companies with many employees can see how this can impact your teams that adjust their pace to the work available. If there is less work, they will work more slowly -either because they don’t have the pressure to perform, or because they are putting too much emphasis on the details in the initial phase of performing a task. However, business owners need to keep a close eye on this in your business, as it can sabotage efficiency and growth.


Aside from tasks and projects becoming increasingly complex, procrastination is another component to Parkinson’s Law. Knowing that we have a set amount of time to do something can encourage the task being left to the very last minute – and our delays in getting started mean the time required for that task expands further.

So, how can business owners truly work smarter, not harder? The key thing to remember when accounting for Parkinson’s Law is that when choosing how much time or other resources to dedicate to a task, you need to balance the right amount of time needed while not sacrificing quality over time saved.

Here are some ideas that are worth exploring and then measuring their effects on your productivity:

Prioritize your tasks

You might have an enormous to-do list, with many items and clear deadlines. Start the productive process off by identifying what are your most important tasks. Establish priorities as to what is urgent, or what is really important to yourself or your team at the time. Break these tasks into smaller more digestible tasks that can be managed effectively and set moderate deadlines for each. This way you are setting yourself up for success to achieve realistic tasks with achievable deadlines. 

Work faster, not harder
Parkinson’s Law reminds us that you can combine reasonable time and work estimates with a little optimism, and aim for getting deadlines just right. You might think overestimating timelines gives you the leeway you need if something out of our control derails the project or time needed, but it could end up wasting resources without adding quality to your end product.

Set time limits

To account for Parkinson’s Law, before scheduling a task or getting started on it, you should first determine and allocate how much time it should realistically take to complete it, without compromising performance. Try setting artificial deadlines, which limit either the amount of time that can be dedicated to the task or the point in time by which this task should be completed such as by next Friday or the end of October. Identify the few critical tasks that contribute most to income and schedule them with short and clear deadlines.  Use Parkinson’s Law as a framework when organizing your weekly calendar and defend your time by sticking to a productive schedule using the time limits you set for yourself.

Avoid distractions
There are so many time-wasting activities business owners need to be aware of. I recently read that CEOs spend 72 percent of their time in meetings and 24 percent of their time reading emails and social feeds.  When implementing Parkinson’s Law, consider these time drainers.  Sure, we all need to attend meetings and read our emails, but be very protective of your time doing each.  By avoiding distractions, we can eliminate waste and frustration and create a working environment of engagement and productivity.

Communicate realistic targets
This important step helps leaders define parameters that specific projects need to fit within, which is a surefire way to catch work expansion as it’s happening, rather than after it’s already sabotaged your timeline. During your project kickoff, you and your staff should agree upfront about what is in and out of the scope for the project.  For example, let’s say you are rebranding your website that absolutely needs to be finished and launched before the first day of a major convention.  Meeting that target deadline means that no new features and out of the initial scope functionality should be thrown in at the last minute.  Communicate all expectations and project scope upfront as a team.

Protect your time

Time is a precious commodity and as a business owner, chances are you’re constantly racing against the clock.  See how you can use Parkinson’s Law to increase your productivity, employee engagement and overall happiness to get more done, quickly, while achieving goals. If you should need guidance on tackling those important tasks or a sounding board to discuss those difficult and sometimes sensitive decisions, AE Tucker Consulting is dedicated to helping business owners successfully pursue their goals in life and in business.  Schedule a consultation today!

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To SWOT or to SOAR?

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Weighing Which Analysis Works Best for Your Business
Evaluating your business is just as important as running one. Whether it be increasing or decreasing sales, employee turnover, customer engagement online, etc., the signs of a healthy business must always be monitored in order to keep up your space in the marketplace.

Better yet, you want to sustain that space— and thrive in it. That’s where the SWOT and SOAR analyses come in.

What is SWOT?

SWOT stands for Strengths, Weaknesses, Opportunities and Threats. The first two deal with the internal environment of a business while the latter two deal with the outside factors a business can face. The strengths and opportunities are known to be the positives a business can evaluate themselves on and the weaknesses and threats are those that harm a business in meeting their brand’s overall mission, vision and goals.

Strengths: What strengths of your business beat competitors?

Weaknesses: What parts of your business keep you from beating competitors or hinder profits?

Opportunities: What opportunities are out there to help grow your business?

Threats: What threats exist that can hurt your business?

Questions that can help build a SWOT analysis include:

  • What do we consider our assets?
  • How do we stand out as a business?
  • What keeps our business sustainable?
  • What has kept our customers loyal?
  • How do competing companies do better than us?
  • Do we have a high turnover rate of employees?
  • What industry trends are happening that the business can take advantage of?
  • Are we up to date on our competitors?
  • Do we have crisis communications plans prepared?

What is SOAR?

SOAR, on the other hand, is all about focusing on strengths and opportunities— and other positive, affirming values of a business. SOAR is about the Strengths, Opportunities, Aspirations and Results of a business and its goals. With SOAR, a business takes a laser focused on analyzing what strengths can build their aspirations and what results can be achieved through certain opportunities.

Strengths: What have been your business’s greatest achievements?

Opportunities: What markets or target audiences can your business capitalize on?

Aspirations: What are your mission, vision and goals for the business?

Results: What is the best way to measure the results of your meeting the business’s mission, vision and goals?

Questions that can help build a SOAR analysis include:

  • What strengths does our business have and how can we expand upon them?
  • How can we use our strengths to achieve better results?
  • What makes the business unique?
  • What partnerships can we look into to help elevate our business in the community or market?
  • What do we want the business to be known for?
  • What is the industry we are in passionate about and how can we help contribute?
  • What are some ways we can track results?

Major Differences Between SWOT and SOAR

The major differences between SWOT and SOAR is that SWOT is about assessing and analyzing a business’s competitive edge in the market, while SOAR is all about enhancing the mission and future vision of a business as a whole.

Essential to note, most businesses have been using SWOT for decades now. It’s a household term for evaluating how a business is improving their performance, taking the time to monitor its present situation.

SOAR has recently been introduced and is gaining popularity especially with smaller businesses who are still developing their brand given that SOAR focuses primarily on the future. When you are a fairly small or young company, it’s more common that you want to build towards the long-term before you are able to have all the information you need to assess a present quarter’s results.  At AE Tucker Consulting, we highly encourage business owns to have that growth-mindset and to focus on those big hairy, audacious goals that is deliberately achieved through SOAR.

Another important difference to note is that SWOT is about assessing a business through the scope of its competition; the questions zero in on keeping the business in the best place possible at all times. SOAR, on the other hand, is less about competition and more about collaboration. Its questions allow a business and its teams think about how to work together and propel the business forward.

In this way, where SWOT is based on tactics, strategies and data, SOAR is all about being vision-oriented and focusing on a business’s teams’ unity to pave the path forward.

When to SWOT and When to SOAR

Each business should use SWOT and SOAR at different points in time. If you are a well-established business, it’s smart to perform routine SWOT analyses that help show what’s working and what isn’t. It’s especially important to perform a SWOT if new competitors have entered the business, you see your profits and sales have stagnated or are going down, or if you are seeing that employee culture is changing.

If you are a fairly new business, recently merged or were acquired by another business, are going to rebrand or want to boost employee morale, a SOAR analysis is your tool. You will be able to have teams work together to feel they have a stake in the future of the company and can clearly see where it’s going. Most importantly, SOAR emphasizes and manifests the future that the company wants— and therefore works on the building blocks so it gets there.

Ensuring the Analyses are Done Right

To ensure that each analysis within your business is done smoothly and effectively, it’s best to work with a trusted advisor or consultant— and that’s where AE Tucker Consulting comes in.

Whether you’d prefer a guide, consultant, advisor or part-time CFO, AE Tucker Consulting can work with owners and management of small to midsize privately held companies to help you develop and implement SWOT and SOAR analyses that get the job done.

Optimize your company value, your profits and your company culture— with our help, you’ll be SWOTting and SOARing through each quarter the way your business deserves!

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How to Successfully Plan, Budget and Thrive in 2022

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A new year is officially upon us and with that comes the perfect time for any business owner to assess and evaluate their company—and goals. New chapters can sometimes introduce new opportunities as well as new threats. That’s why business planning and smart fiscal budgeting disciplines are key. Traditionally, business strategic planning takes place once a year, and attempts to set a business strategy for an extended period. Of course, the pandemic taught business owners that in a volatile business environment it’s extremely unlikely that a plan that is only updated once per year is sufficient to guide every strategic decision that CEOs will need to make over the next twelve months.  When you assess where your business stands today, then develop budgets, financial models, tax strategies, and cash flow forecasts, you can be ready for any roadblocks and adjust as you pursue your goals.   An effective business planning process should aim to help your leadership team understand the company’s strengths, weaknesses, opportunities and threats. Simple steps to planning include:

1. Assess your 2022 goals. Where do you want to go and why.
2. Review your market analysis/industry analysis. Where has your industry been, how has it changed, forecast for where it’s heading.
3. Preform a competitive analysis to determine who and what you’re competing against for customers and market share. 
4. Detail a 12 month sales and marketing plan to understand how you’ll reach your audience and your projections for why your specific sales and marketing strategies will ensure you’ll meet your 2022 goals.
5. Assess financial information data including sales forecasts, anticipated expenses; budget for expenses, cash flow analysis, and profit and loss from the last twelve months.
6. Outline what results the organization is committing to deliver in terms of goals and objectives. 
7. Create a road map of how and when the results are going to be delivered. Who is responsible for each portion of the plan and how will you measure, monitor and pivot if plans and goals need to change.

Creating a Budget to Match Your Planning  

If there’s anything the pandemic has taught us it’s that curveballs can hit your business at any given time and it’s crucial to have safety nets, emergency funds and savings set up that give your company a life jacket in the storm.

In addition, budgeting just makes perfect sense to be financially prepared as to how the future of your business’s finances will look. It requires examining what happened last month, what happened three months ago and what this month last year looked like — then using that information to make wise financial decisions for the months and years ahead.

Carve out plenty of time to work through your business budget.  You will need to have access to important financial information to help.

Estimated revenue:  This is the amount you expect to make from the sale of goods or services. It’s all of the cash you bring in.

Profit:  Profit is what you take home after deducting your expenses from your revenue. Here you’ll plan out how much profit you plan to make based on your projected revenue, expenses, and cost of goods sold. If the difference between revenue and expenses is not on par, you need to rethink your cost of goods sold and consider raising prices.

Putting “Pen to Paper”

The best way to truly plan your budget is working with a CFO or financial advisor/consultant on adding the above calculations onto a spreadsheet where you also have prepared other foreseen costs.

These costs can include your personal plans for retirement, investments your company needs to make technology or marketing-wise, the status of your working capital reserves or the need for a lump sum of money to grow your business. Moreover, this is where you prepare your “safety” fund; stability comes from these prepared safety nets!

Your financial go-to should then work with you to plan for the profit you’ll need to generate the sufficient cash flow to maintain all these factors and budgets. This will then lead to preparing the number of sales your product or service will need to undergo to meet this net income.

Listen to the Numbers

At the end of the day, data doesn’t lie— numbers ultimately tell you the big picture. If they’re not adding up, it’s time to take the proactive steps and cut back on the projects, the talent or expenses you can live without. If your departments are spending too much, work with their leads to see how to cut the right corners.

Again, work with your financial support team or advisor on what exactly can be cut this year— exactly how much can you tweak your gross margin?

You’re Not Alone

As a CEO or business-owner, you don’t have to figure out your 2022 business planning and budgeting on your own. We mention throughout this piece the pivotal role your financial department plays— they, after all, are the number interpreters.

If you need a guide, consultant, advisor or part-time CFO, look no further than AETucker Consulting. We work with business owners and management of small to midsize privately held companies to develop and implement strategy, improve cash flows, increase company value and provide successful business transitions. 



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Ready for your Mid-year Review?

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Well, it’s that time of year for business owners to consider doing a Mid-Year review and what a year it’s been!  I don’t know how or if your business has been affected by COVID-19, but many businesses have been significantly impacted.

What is a Mid-year review?

According to John McAdam in his article in Wharton Magazine, the purpose of the mid-year business review is to monitor business performance, create solutions to make more money, and provide guidance for leadership via communication with, and for, your team.

For those of us who more or less academically inclined, it’s time to stop and catch your breath long enough and take an objective look at your business – how was the first half of the year and how do you expect the second half of the year to be? A mini Strategic Planning session, if you will.

A Mid-year review involves looking at all aspects of your business including:

  • Financial results – How did they compare against budget? How are your ratios and KPI’s vs. expected results? Most importantly, how is you Cash Flow?
  • HR – When was the last employee survey taken? Are your employees working well together? Is turnover at an acceptable level?
  • Sales & marketing – Has revenue met your expectations? Have you identified why variances exist? Is your revenue mix in line with your goals or should you make some modifications to your marketing efforts to focus on higher ROI products/services?
  • Operations – Are your products/services being delivered timely? Have your margins changed/costs increased (i.e. service & installation costs)? Have quality or customer satisfaction changed?

Lisa Wood from New Sprout Media asked the quintessential question in her blog – Are you on track?

You have goals, right? How well are you doing relative to your goals? I can’t think of a better way to frame the reason to do a Mid-year review.

According to John McAdam in his article in Wharton Magazine, a Mid-year review includes the following:

  • Evaluate performance
  • Reallocate resources to better achieve goals.
  • Make more money than you would have otherwise.
  • Take stronger corrective actions than you would have without a mid-year review.
  • Provide leadership for your team—too much silence taxes milestone goals.
  • Offer focus for your team.

John points out that taking time to do this is essential and, I would add, one of the most rewarding and enlightening strategic exercises you can do for your company.

Daniel Dreher points out in his article that you can achieve better focus and reap the following benefits:

  • Reviewing now provides more time to implement changes.
  • You can act while other businesses are procrastinating.
  • You probably have a good idea of how the year is going.
  • A review offers an opportunity to re-grip the reins.
  • Nothing good comes from waiting for more numbers.
  • Opportunities may exist now that will disappear later.
  • There’s no better time to re-energize employees.

Daniel adds that this exercise will help you focus and put your company in a better position going forward hopefully with no more pandemics to deal with.

One critical line of questions I’ll add is don’t forget the What, Who, Where, When, Why and How questions.

All businesses need to plan for contingencies, but I don’t think any of us could have possible planned for COVID-19 and the disruptive force it has turned out to be.

As with any exercise in planning, make sure you plan the discussion/meeting upfront and allow sufficient time and input to have a great result. Contact me, Andrew Tucker, for help with this process or other aspects of your business. I can be reached by e-mail at andrew@aetuckerconsulting.com or by phone at 704/651-2216.

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How Does a CFO Create Financial Success for Companies?

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When you think about your business in five years from now, what do you see?  What do you see in ten years or even next year?

  • Is your revenue growth and profitability on track to take your company to your next milestone?  
  • Are you forecasting and achieving the results you really want?
  • What are your growth goals and how will you fund them?

If you find yourself facing uncertainty to some of these questions – you are not alone.

All businesses can benefit from a guide – an advisor providing higher level financial and operational advice that you may not be getting from your current staff or tax preparer.  A fractional or outsourced CFO has seen similar issues you face in other businesses.  They walk alongside you, helping you navigate the road ahead so you can maximize opportunities and reduce risk along the way.  Even if you don’t feel you need nor can afford a full-time CFO, that guidance exists by outsourcing your financial leadership role.  If you’re unsure how a fractional CFO can help your company, consider these five ways a CFO can provide immediate value and results.

Improving Profitability
People, processes and technology all link to the ability of a company to be profitable. A CFO will identify Key Performance Indicators and benchmarks; and build methods to track and report them consistently so you can better track and then improve profitability. By analyzing your employee productivity, monitoring redundant tasks, controlling costs, maximizing technological functionality and initiating profitable pricing strategies, you can see improvements to the bottom line.

Managing Cash Flow
A CFO will put an effective cash management system in place. By managing the cash cycle, the company improves collections, pricing, and terms; all adding to increased liquidity. This includes managing capital, debt obligations, and ensures the ability to invest in new projects. A CFO can create a solid forecast, so you avoid being blindsided by the cash flow problems that accompany rapid growth. Cash flow projections prepared by the CFO provide a means for the management of cash, which is the lifeblood of a company.

Providing a Sounding Board for Decision-Making
An experienced and effective CFO brings financial insights and leadership to help the company maximize profits by increasing cash flow.  By using financial data and insights, the CFO will provide clarity on where to best make investments, expand the business, roll out new products and/or service offerings— all essential to maximize growth potential. A CFO can provide objective and expert financial advice while building clarity around goals and action-plans to forecast and meet those financial goals.

Funding Growth
An outsourced CFO usually has developed and maintains strong relationships with lenders.  This is advantageous for business owners seeking to obtain a loan to fund growth or extend a line of credit. A CFO brings knowledge of how to build your business lending profile by educating you about factors that banks consider when seeking a loan.  With the knowledge of different lending options, a CFO can help you compare all options and expand your banking relationships to prepare and secure the right financing needed to help you grow your business.

Mitigating & Managing Risk
Risk-taking is a key part of the growth of any business.  But not understanding the risks your company faces can bring your company to its knees. CFOs, given their expanded role in establishing and executing strategy, have become well positioned to help ensure that a company’s risks are identified, assessed, managed, and integrated into the corporate strategy.  A CFO has a keen understanding of the scope of risks that the organization faces by identifying the risks and classifying them by risk type (financial, compliance, debt, liquidity, operational and security risk.) A CFO will evaluate each of the risks, creating estimates of the probability of an occurrence for each as well as an assessment of risk impact. They can provide your organization with processes and procedures for reporting of risk exposures that can act as early warning signals.

Your Trusted CFO
There comes a time for many companies when you need financial advice and services over and above what you are getting from your staff.  AETucker Consulting serves owners and management of small to midsize privately held companies to develop and implement strategy, improve cash flows, increase company value and provide successful business transitions when the time comes. 

Where are you in your business journey? 

Let’s start the conversation today on ways I can provide strategic financial guidance and help your business grow.  Let’s schedule a discussion that convenient for you. Schedule–>

Andrew Tucker, CPA, CGMA, MBA

AETuckerConsulting, LLC,
704-651-2216
Andrew@aetuckerconsulting.com

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