Financial Strategy

Whether you have a new business or one that has been in operation for several years, it is important to have a clear financial strategy so that you understand where you are, can determine where you would like to go, and the steps you need to take to get there. How do you want your company to compete in its specific market? Do you want it to be the low-cost leader, in which buyers are price-sensitive and there are few opportunities for differentiation? Or do you want to be the best-cost provider, where buyers expect superior value at a higher price? Are you a niche player? Having a more profound understanding of your business will enable you to take it farther, faster, as you won’t get sidetracked by matters that are outside your core competencies.

As a business and tax advisory firm, our objective is to help you determine the optimal business strategy for your particular company and its very specific needs. We do this by first performing a business valuation on your company. Our approach includes an assessment of your business’ strengths and weaknesses, understanding its unique potential and areas that merit more attention to obtain optimal success. We will look at indicators such as future liquidity requirements, your business’ risk profile, future cash flow, asset management, and tax planning, among other metrics.

We subsequently develop an action plan that is tailored to your business, which will include the identification and quantification of resources, resource allocation (because no one has unlimited funds), market trends, and risks and opportunities.Financial strategy has become increasingly important over the past decade, and making sound financial decisions is paramount for the successful and sustainable growth of your company.Markets are dynamic, and therefore your business strategy must be dynamic too.

For example, events such as the economic downturn that began in 2008 can throw a wrench in the works of just about any solid business. A crane operator in the Vail Valley, for example, had seven operating cranes in 2008, valued at anywhere from $100,000 to $500,000. The owner was paying off his loans on a regular and timely basis, when the downturn hit construction – and thus his crane operation – in full force. He realized he needed to drastically change his financial strategy, so he sold three cranes, let the bank repossess two, and he kept two cranes operating. Drastic measures? Yes. But that is what he had to do to keep his company operating and employees working. Eight years later, he is back up to seven operating cranes, his two competitors are no longer in business, and he has more work than ever. Flexibility, vision, and recognition of when it is time to tweak or drastically change strategy are paramount in running a successful business.

We provide ongoing advisory services to help you keep your business and goals on track in ever-changing and evolving markets.

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