Right Advice. Right Now!

Let’s face it, no-one really likes to budget – it makes us feel restricted but it isn’t like that at all. 

It’s all about control and knowing the implications financially before you make the decision.

Under our CFO Now program we will work with you like we did with Bill in the case below.  In any business we all get caught up “doing” the business and sometimes we lose site of what’s happening in our business.

We met with Bill in one of our monthly meetings and we started talking about the debt management plan to be established under the CFO Now program.  Bill really wanted to pay off his home loan fast – as short as 12 months. 

Once we discussed the SMART goal concept, the current profit levels of the business, we realized the mostly likely time frame was  years.  Once that was established, that gave us a principle amount of reduction per year.  We built that into the budget. 

That is, we planned to withdraw $80k from the business to pay off the home loan each year for 8 years.  From there we factored in tax, overheads and established the required gross profit and ultimately the required sales. 

We then broke that down into daily sales figure so Bill knew that at the end of every day, if he made the daily sales target, there was a really strong chance he could pay off the home loan in 8 years.