UNDERSTANDING BUSINESS LIQUIDITY: The 13-Week Cash Projection

Entrepreneurs embark upon a business because they have a passion for delivering a specific product or service to the marketplace. With sufficient funds at startup, a business owner may not develop a true understanding of liquidity until the startup capital is consumed and the business needs to become self-sufficient.  A self-sufficient business is one that can successfully leverage its assets or convert those assets to cash at a rate greater than the rate at which the business is consuming cash.  While cash conversion cycles can be sporadic or cyclical, it is important for business owners to project forward their cash generation and cash consumption to identify potential pinch points before they occur.  The ideal tool for this near term liquidity analysis is a 13-Week Cash Projection.

The 13-Week Cash Projection is commonly used in businesses with complicated cash flows and where active cash management is critical. Done weekly, this model will project cash flow expectations into the coming weeks, by looking at cash inflow and outflow in all key areas, starting with the beginning cash balances, estimated cash receipts from customers, estimated payroll and taxes, estimated operating expenses, note/lease payments, interest payments on a line of credit and payments to vendors.  As part of this weekly process it is helpful to complete a variance analysis, reviewing actuals against the prior week forecast. The 13 Week Cash Projection should serve as a tool to see how much cash is required on a forward rolling basis, letting you know when an added impetus to collect cash and/or to generate revenue is necessary.

Legacy Consulting, LLC has the passion and experience necessary to be a one-stop-shop for entrepreneurs.  We can provide the support necessary to understand and forecast the cash needs of your business.  With over 20 years’ industry experience,  Legacy Consulting can be the single greatest factor contributing to the success of your business.

Contact a Trusted Advisor, someone who understands your business, that can help determine what is necessary to not only survive, but thrive.  Legacy Consulting can be at your disposal 24/7 to help you see the future of the business and help instill the discipline today to achieve the ultimate goal tomorrow.  Visit http://www.legacy-consultingpartners.com to see how we can help your business.

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BANK LOOKING FOR A THIRD PARTY BUSINESS ASSESSMENT? Legacy Consulting Offers Turnaround Advisory Services

Many factors external to a business can have a detrimental impact on the bottom line.  Legacy is a cross-functional team of professionals with vast expertise in managing through severe downturns in…

Source: BANK LOOKING FOR A THIRD PARTY BUSINESS ASSESSMENT? Legacy Consulting Offers Turnaround Advisory Services

BANK LOOKING FOR A THIRD PARTY BUSINESS ASSESSMENT? Legacy Consulting Offers Turnaround Advisory Services

Many factors external to a business can have a detrimental impact on the bottom line.  Legacy is a cross-functional team of professionals with vast expertise in managing through severe downturns in highly cyclical industries.  Having been on both sides of the table, we are sensitive to the delicate relationship between the bank and its clients.  Our experience makes us with well positioned to understand the business drivers and market dynamics necessary to develop a comprehensive analysis of turnaround plans and financial projections.  We can rapidly analyze cost and overhead necessary to outline structural changes and opportunities for greater profit attainment, and present viable solutions, near-term visibility, and an understanding of the current liquidity position.  This rapid analysis goes far deeper than right-sizing, it takes a cross functional view of the organization and identifies operational problems as well as inefficiencies that can unlock value. It is an in depth review of overhead structure to identify changes that will reduce cost and maximize cash flow in the near term, helping stabilize the business.  We will then work to develop a long-term strategy that may include facility consolidation, product line divestiture and a focus on new growth opportunities.  Longer term assistance with debt restructure solutions will help obtain the appropriate capital structure based on the new realities of the business.

Legacy Consulting, LLC has the passion and experience necessary to provide the support necessary to get the business off the ground in an efficient and cost effective manner.  With over 20 years’ experience in financial services and industry, coupled with a network of experts in their respective fields, Legacy consulting can be the single greatest factor contributing to the renewed success of the business. Visit www.legacy-consultingpartners.com for more detail on our Turnaround Advisory Services.

Legacy Consulting, LLC is a Connecticut based consulting firm founded by Christopher Abbamonte for the purpose of helping entrepreneurs of small and mid-size businesses through their financial journey from business startup, to strategic planning, growth financing, and turnaround management all with an eye towards the ultimate goal of maximizing value through an exit strategy.  Legacy provides a one-stop, long-term partnership with its clients, with additional services including legal contract review, patent search and analysis, and Web Research Services.

THINKING OF STARTING A BUSINESS? Consult with a Trusted Advisor

Many good ideas and opportunities are never pursued due to the fear of the unknown.  When considering starting your own business, the entrepreneurial spirit can be discouraged by the legal and financial challenges.  These legal challenges range from selecting the appropriate legal structure, filings, obtaining the appropriate federal employee ID #, and making the proper business registrations with the state for licenses, employee withholdings tax and sales tax.  Understanding the requirements can be time consuming and detract from the time spent on the actual business opportunity.  Then there are the financial challenges; how much cash will you need, what will your breakeven point be, how can you forecast revenues and expenses.

While there are no ways to avoid the issues enumerated above, there is a way to mitigate the challenges they represent.  Legacy Consulting offers a free consultation to entrepreneurs who are thinking of starting their own business, to help them both understand the challenges ahead and to provide them with the confidence that those challenges can be overcome with the help of the right trusted advisor.  As Milton Berle once said, “If opportunity doesn’t knock, build a door.”  Visit www.legacy-consultingpartners.com to start building your door today.

Legacy Consulting, LLC has the passion and experience necessary to be a one-stop-shop for entrepreneurs.  We can provide the support necessary to get your business off the ground in an efficient and cost effective manner.  With over 20 years’ experience in financial services and industry, coupled with a network of experts in their respective fields, Legacy consulting can be the single greatest factor contributing to the success of your business. As a new business owner you don’t have to know everything, but you do know how to ask for help when necessary.  What you don’t know can only hinder your business if you don’t seek the help of someone who’s been there.

Legacy Consulting, LLC is a Connecticut based consulting firm founded by Christopher Abbamonte for the purpose of helping entrepreneurs of small and mid-size businesses through their financial journey from business startup, to strategic planning, growth financing, and turnaround management all with an eye towards the ultimate goal of maximizing value through an exit strategy.  Legacy provides a one-stop, long-term partnership with its clients, with additional services including legal contract review, patent search and analysis, and Web Research Services.

DEVELOPING INTELLECTUAL PROPERTY: How A Small Business Can Build a Patent Portfolio

Building a patent portfolio can be a challenge for a small business, as it can be both time consuming and expensive.  However, if done correctly it can foster a culture of innovation and ingenuity that can  build tremndous value for the company.  Patents  also create value in product areas that may play a prominent role in the future of the business.

The most effective approach to strategically build a patent portfolio is to align the patent search results with the invention disclosure and business goals.  Only with the alignment of this information can you determine if filing a patent application is feasible, cost effective and worthwhile to pursue.  Critical factors to be considered are covering alternative embodiments of the technology and ultimate defendability of the patent. Once you determine an invention is, in fact, worthwhile to pursue, the alignment of this information will help determine the level of resources to be allocated to patent improvements and additional related applications.  The problem is that most small business owners do not have the procedures in place to record, identify and disclose the invention.  Further, they often lack the financial resources necessary to complete patent searches, obtain an understanding of prior art and review patent disclosures.  The cost of a big firm patent attorney can make the process uneconomical, leaving a small business owner reluctant to pursue a patent position at all.  This can be very frustrating, and can cause missed opportunities at creating value.

Legacy Consulting, LLC has the passion and experience necessary to be a one-stop-shop for entrepreneurs.  We can provide the support necessary to protect your intellectual property in an efficient and cost effective manner.  With over 20 years’ industry experience and 5 years patent portfolio management experience, Legacy Consulting can be the single greatest factor contributing to the value of your business.

Contact a Trusted Advisor, someone who understands your business, that can help determine what is necessary to not only survive, but thrive.  Legacy Consulting can be at your disposal 24/7 to help you see the future of the business and help instill the discipline today to achieve the ultimate goal tomorrow.  Visit http://www.legacy-consultingpartners.com to see how we can help your business.