Our Services
Financial Healthchecks and Strategy Options
Financial Data is presented and displayed in many forms from Excel spreadsheets to Audited Statements. Most reports show you what has happened and sometimes include Benchmark data to allow comparisons with industry norms. But none of them give you STRATEGIES on how to improve the results! If you give H&A your data for the past two or three years and/or projections into the future (if there are any), we will analyze them and not only provide you with a detailed analysis including Benchmarking, but we will develop Strategy Options that are easy to understand, even for a non-financial person. You can use this analysis: To give to a Banker in connection with a loan As a check on the fiscal health of your company To zero in on areas that need improvement To determine what needs to be done to attain certain goals To monitor improvement over a period of time To develop guidelines for start-ups.
There are three features that really make the Financial Healthcheck and Strategy Options, performed by H&A different than other financial analyses: - Price/Volume Sensitivity
It is often difficult for business owners to understand that increasing sales volume will not have as significant effect on Profitability as increasing pricing by a similar percentage. In the example below, increasing Sales Volume by 5% will increase the bottom line by 4.5%, while an increase in Sales Price by the same amount increases the bottom line by 46.67%. Obviously in most situations the difference between the two will not be that great, but there is little doubt that a reasonable increase in Selling Price is more effective than a similar increase in Sales Volume. 
- "WHAT IF" Analysis
A second unique feature of the service is the "WHAT IF" analysis, where you can change Business Drivers (such as Days Payable, Inventory, Interest Rate, etc) or items on the P&L and Balance Sheet to determine the impact on the operation. In the example below,if you reduce the Days Receivable by 20 days (perhaps an unlikely scenario in most cases, but there are companies out there where this would be applicable), then the impact on the P&L, Balance Sheet, and such items as Working Capital, Cash, Change in Borrowings, etc. can be determined. You can look at several different scenarios, select the most feasible, and plan your operations accordingly. 
- GOAL SEEKING
The third and perhaps most important of these three unique features is Goal Seeking. H&A, in consultantion with you, will select a goal such as improved Net Profit Percentage, improved Cash Flow, higher Current Ratios, or any of many other items that may need improvement. Once this goal is set, we deliver a number of alternatives which show what needs to be done to reach that goal. As shown in the example below, suppose you wanted to reduce your debt by $325, 856. We would advise that you could reduce your Cost of Goods by 10.37%, increase Prices by 20.76%, reduce Inventory by 48.53 days, grow Sales by 34.08%, or any one of a few other alternatives. It is unlikely that any of these by itself is a practical way to reach the Goal, so we would review these with you to decide how much of which specific items could be effectively changed over the next time period. Once we have jointly decided upon the steps, these become clearly defined Strategies for the next year or other time period. In the illustration below, there is a chart above the various strategies which shows the impact that each of these strategies on reaching your Goal. This is a powerful tool indeed, and is what really makes our analysis different than any other. 
REPORTS While H&A generally does not provide standalone reports, in this case, a final report is submitted which clearly identifies the Goals and the strategic steps necessary to reach these Goals. This report is clearly the blueprint for further action on the Owner's part. SUMMARY If you want to get a better understanding of your business and the steps you need to take to improve the operation, this is an ideal approach to take. If interested, you can request more information using the form in Contact Us or phone us at the number the number below
HYMAN and ASSOCIATES, LLC
Phone (312) 664-4996 FAX (312) 664-2295
Email: Russ@hymanandassociates.com
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