Finding Efficiencies in Revenue - Scott Geller

Scott Geller of Capitis Advisors, LLC - “The CFO Perspective”

Finding Efficiencies in Revenue

INTRODUCTION
I have 20 years of experience in the finance realm that started with the Federal Reserve Bank as a bank examiner, moved on to 7 years at a Fortune 300 insurance company, and then a 50-70 person spin-off technology firm under the Allianz umbrella of companies. I was with the spin-off from day zero all the way until the unfortunate end and I had to close down the business.

​I am now a financial consultant serving primarily as a fractional or part time CFO for companies that range from start ups to young and scaling to established with stable growth. I take over from the accountant as a lean cost effective option for Profits Engineering, Cash Optimization, Strategic Acceleration and Executive Partnering committed to your success. Please contact me at scott.geller@capitisadvisors.com.

PROBLEM STATEMENT/SHOW OBJECTIVE
A business has many facets and levers that can be adjusted to impact profitability, which in my mind is the ultimate goal. The top line lever of sales or revenue and leaders has potential beyond the basic "Grow revenues." After understanding the true profitability within the firm, the next step is to walk through or even create sales processes to find improvements. Pricing is another excellent source of untapped profitability or maybe just generating sales. Find and evaluate efficiencies within the revenue of your firm to increase sales and improve profitability.

WHAT YOU NEED TO KNOW

1. Calculate your profitability throughout the business
   1. Gross Margin
   2. Operating Expenses
   3. G&A Expenses
   4. Operating Margin
   5. Incorporate accountant and CFO for inputs and structure
2. Determine driving factors of your profitability
   1. Pricing
   2. Volume
   3. Efficiency
   4. Unique offering in market
   5. Other

WHAT YOU NEED TO DO

1. Do you know your Sales processes?
   1. Applying techniques to improve sales processes that are normally thought of as operational techniques
   2. Updating sales processes with the customer’s needs in mind.
   3. Engage with sales. Start to examine how they approach their work and redesign it.
   4. Value Stream Mapping
2. Knowing your Sales Pipeline
   1. Lead Qualification
   2. Lead Nurturing
   3. Total Lead Time
   4. Filling the Pipeline and impacting the flow
3. Power of Retention and Churn
4. Marketing Discipline and Plan
   1. Digital Marketing
   2. Print Marketing
   3. Social Media
5. Plan. Do. Check. Adjust
6. Cost Plus Pricing
7. Competitor Based Pricing
8. Value Based Pricing
9. Customer Acquisition Cost (CAC) versus Customer Lifetime Value (LTV)
10. Data on customers and competitors
11. Developing higher quality products
12. Great customer service
13. Making decisions and act decisions keeping perspective
    1. My operating principles
       1. No is intellectually lazy
       2. Open Communication
       3. No Surprises
       4. Think in terms of the business
    2. Think in terms of the business
       1. Profits in short term vs. long term value
       2. Impact revenues immediately but damage long-term sales, market share, reputation, etc
       3. Fusion - cut costs within the infrax but at cost of meeting SLAs for clients

PREVIOUS SHOW: 2020_11_30 - Optimize the Business for Profitability
NEXT SHOW: 2020_12_14 2PM EST - Retained Earnings Reinvestment in the Business and Out of the Business
 

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