Strategic Financial Analysis

I’ve been a founder for 19+ years. And here’s the most important lesson I’ve learned: You don’t grow revenue by tweaking messaging. You grow it by running disciplined sales motions. Every day. With intent. And with structure. Once we started tracking activities, qualifying leads properly, and applying deal filters early, pipeline stopped being random. The result? → $150M+ in pipeline built → 100+ B2B teams using the same system → Daily booked calls without chasing Most people don’t fail from bad ideas. They fail from inconsistent execution. You don’t need more advice. You need a system that runs. Want weekly frameworks that help you scale with structure? Subscribe to Growth Forum → https://lnkd.in/gWMhsbAp

Cash flow doesn’t lie. But tracking cash flow is not enough. Here’s the thing: Cash flow cuts through the noise, it shows what’s working What’s broken, and how long you can keep running. But real cash flow intelligence is knowing which questions to ask and what insights to uncover. ➡️ Start with my 30 point cash flow checklist and learn to make better business decisions today: https://bit.ly/4fp2eUr Let’s break it down: 1️⃣ Are we generating cash from core operations? KPI: Operating Cash Flow If your business isn’t funding itself, it’s not sustainable. Ask this: Are we building a business that runs on its own cash? 2️⃣ Can we meet short-term obligations comfortably? KPI: Short-Term Liquidity Liquidity is confidence—knowing you can pay the bills without scrambling. Ask this: Do we have enough cash for today’s needs? 3️⃣ Are our assets pulling their weight? KPI: Asset Turnover Your assets should work as hard as you do. This metric measures how efficiently they generate revenue. Ask this: Are we maximizing value from our investments? 4️⃣ How much of our profits turn into cash? KPI: Earnings Quality Revenue looks great on paper, but cash is the reality. Ask this: Are our profits real—or just accounting smoke and mirrors? 5️⃣ Can we fund growth without outside help? KPI: CapEx Coverage Growth demands cash. This KPI measures whether your operations can cover expansion costs. Ask this: Are we reinvesting wisely or overextending? 6️⃣ How much cash is left for our investors? KPI: Free Cash Flow After Debt This shows what’s left after covering obligations—true value for stakeholders. Ask this: Are we creating real returns or just breaking even? 7️⃣ Are we managing our cash conversion efficiently? KPI: Cash Conversion Cycle Cash stuck in inventory or receivables can cripple growth. Ask this: Are we turning cash fast—or tying it up unnecessarily? 8️⃣ Is our debt helping or hurting us? KPI: Debt-to-Cash Flow Debt fuels growth—but only if it’s manageable. Ask this: Is our debt a growth tool or a looming risk? 9️⃣ Are we making smart investments? KPI: Return on Invested Capital (ROIC) This tells you if your capital is driving meaningful profits. Ask this: Are we investing in the right places—or wasting resources? 🔟 Are we delivering shareholder value? KPI: Cash Flow Per Share (CFPS) For shareholders, this is the ultimate metric of trust and performance. Ask this: Are we increasing value—or just treading water? The Takeaway: Cash flow KPIs don’t just measure performance—they reveal the health of your business. They tell you: 🔹 Where you’re thriving. 🔹 Where you’re exposed. 🔹 Where to focus next. But metrics mean nothing without the right questions. Start here. Make better decisions. Build a stronger business. Join 3,000 improving their cash flow skills with me: https://bit.ly/cfmol ♻ Like, Comment, and Share if this was helpful. And follow Oana Labes, MBA, CPA for more.

80% of B2B companies will struggle to hit their revenue targets in 2025 because they lack a systematic approach to revenue generation. I've analyzed 100+ tech companies between $1M-$10M ARR in the last 18 months, and the pattern is crystal clear: Those struggling to scale share these exact traits: 1. Random acts of marketing with no clear strategy 2. Relying solely on referrals or "hope marketing" 3. No predictable pipeline generation system 4. Marketing efforts disconnected from sales 5. Zero authority building in their space 6. Spray and pray approach to customer acquisition IT'S PAINFUL TO WATCH. Meanwhile, the companies consistently adding $1M+ in revenue are doing something entirely different. They've built what we at PipeBagger call a "Revenue Engine" - a systematic approach that combines: • Authority building through the strategic LinkedIn presence • Targeted cold outreach that actually gets meetings • Crystal clear product positioning that creates urgency and makes competition irrelevant • High-conversion video funnels that generates semi-SQLs • Alignment of entire revenue process - awareness to closure. The math is simple: Traditional approach: - 1000+ random leads - Less than 10% conversion rate - 20-50 deals closed - 6-month+ sales cycle - Unsustainable growth Revenue Engine approach: - 500 qualified leads - 10-20% conversion rate - 50-100 deals - Shorter sales cycle - Predictable growth Here's what's wild: Most founders are so caught up in the day-to-day that they can't see this obvious pattern. They're still throwing money at tactics that worked in 2021, wondering why their CAC is through the roof. And sales pipeline is inconsistent. The market has shifted. Your approach needs to shift too. By 2025, the companies without a systematic revenue engine will be left behind. It's not about working harder - it's about building systems that consistently deliver quality leads and conversions. The writing is on the wall. The question is: Will you be one of the companies that gets it and takes action now, or will you be playing catch-up in 18 months? #B2BSales #RevenueEngine #SaaSSales #GrowthMarketing

Master the art of Financial Storytelling 🧑🏫 Your numbers tell a story, but are you telling it right? 👇 Numbers without context are just digits on a page. The real power comes from transforming those numbers into insights that drive action. ➡️ COMMON MISTAKES IN FINANCIAL REPORTING Let's start with what NOT to do when presenting financials: 1️⃣ Dropping raw numbers without context Raw data overwhelms your audience. When you say "Revenue grew to $100K," what does that mean for the business? 2️⃣ Reading slide content word-for-word Your presentation should add value beyond what's written. Share insights that aren't visible in the numbers. 3️⃣ Rushing through without pausing for questions Financial data needs time to digest. Create moments for discussion and clarification. ➡️ BUILDING A COMPELLING FINANCIAL STORY Here's how to transform your financial presentations: 1️⃣ Start with the fundamentals Always begin by establishing context. What's normal? What's exceptional? What benchmarks matter? 2️⃣ Connect data points to strategy Show how financial results link to business decisions. If working capital improved, explain which specific actions drove that improvement. 3️⃣ Use comparisons effectively - Period over period changes - Budget vs actuals - Year over year trends - Industry benchmarks 4️⃣ Structure your narrative - What happened? - Why did it happen? - What does it mean for the future? - What actions should we take? ➡️ COMPONENTS OF GREAT FINANCIAL STORYTELLING 1️⃣ Clear Dashboards Start with a clean, focused view of KPIs that matter most. Don't overwhelm with data. 2️⃣ Strategic Context Show how financial results connect to company goals and market conditions. 3️⃣ Forward-Looking Analysis Use current data to paint a picture of future opportunities and challenges. 4️⃣ Action Items End every presentation with clear next steps and decision points. ➡️ PRACTICAL TIPS FOR IMPLEMENTATION 1️⃣ Know your audience CFO needs different details than the marketing team. Adjust your depth accordingly. 2️⃣ Use visual aids Graphs and charts can illustrate trends better than tables of numbers. 3️⃣ Practice active listening Watch for confusion or disengagement. Adjust your presentation based on real-time feedback. 4️⃣ Create discussion points Plan specific moments to pause and engage with your audience. === Remember: Financial storytelling isn't about making numbers sound good. It's about helping stakeholders make informed decisions. What techniques do you use to make financial data more engaging? Share your thoughts in the comments below 👇

CEO: Our margins are getting tighter. FP&A: Let’s cut costs. CEO: We’re missing revenue targets. FP&A: Let’s reforecast. CEO: Our cash flow is unpredictable. FP&A: Let’s track it closer. CEO: We’re losing market share. FP&A: Let’s adjust assumptions. This is how finance becomes a back-office function. And it’s why most FP&A teams get ignored in strategy meetings. Instead, try this: 1. Turn data into decisions, not just reports CEOs don’t need more charts. They need answers. If your reports don’t drive action, they’re just noise. FP&A teams that translate numbers into clear next steps get a seat at the table. 2. Make forecasting dynamic, not static Annual budgets are already outdated by Q2. Winning teams run rolling forecasts that adapt in real-time, using leading indicators to predict what’s next, before the business feels the impact. 3. Use capital as a competitive advantage The best companies don’t just cut costs, they allocate capital better. Instead of reacting to margin pressure with blanket cuts, double down on high-ROI opportunities and phase out low-value spending. 4. Speak the language of business Finance gets ignored when it talks in numbers, not outcomes. Saying, “Gross margin fell by 2%” misses the mark. Saying, “Optimizing pricing can recover $5M in profit next quarter” gets action. 5. Don’t wait for leadership to ask The best FP&A teams don’t wait. They anticipate challenges, model different scenarios, and push strategic moves before the company is forced to react. Influence happens when finance drives the conversation, not follows it. The FP&A teams winning in 2025 aren’t managing costs. They’re out-executing their competitors. FP&A sees what’s coming first. Follow Erik Lidman for FP&A insights.

Most eCommerce brands obsess over revenue and ROAS. But the real game is in the metrics no one talks about. Here are 10 overlooked KPIs that actually drive growth (and how to optimize them): ~~ 1. LTV:CAC Ratio (The Ultimate Health Check) LTV:CAC = Customer Lifetime Value ÷ Customer Acquisition Cost 1:1 = You’re bleeding money 3:1 = Healthy 5:1+ = Printing cash If you’re below 3:1, either: ✅ Lower CAC (better targeting, UGC ads, referrals) ✅ Increase LTV (subscriptions, upsells, memberships) == 2. 90-Day Repurchase Rate If a customer doesn’t buy again within 90 days, they probably won’t. Fix it by: • Winback campaigns with targeted incentives • Selling bundles that create habits • Building a loyalty program that rewards repeat buyers == 3. Contribution Margin (What’s Actually Left?) CM = Revenue – (COGS + Shipping + Discounts + Ad Spend) If your CM is under 30%, you’re scaling a business that won’t survive. Get margins up by: • Cutting discount dependency • Negotiating lower fulfillment costs • Adding Onward shipping protection == 4. Subscription Churn Rate (The Silent Killer) High churn = your brand is a leaky bucket Fix it by: • Adding pause & skip options via SMS (Skio for example) • Add more delivery options and product variety • Sending an email 7 days before renewal reminding them potential lost perks == 5. Time to Second Purchase (T2P) Track how long it takes for a customer to place their second order—then cut that time in half. Tactics to speed it up: • AI-based Email/SMS flows with hyper-targeted recommendations • Exclusive discounts for second-time buyers • Reorder reminders based on average usage time == 6. Gross Margin per Order (The Scaling Checkpoint) At scale, 40%+ gross margins keep you profitable. If you're below that: • Increase prices (test 10% bumps) • Reduce discounting, do Cashback instead (@ Onward) • Negotiate better supplier terms (carrier rates, 3pl, etc) == 7. Refund & Return Rate A high return rate = a CAC multiplier. Fix it by: • Charging for returns (but offering free exchanges) • Clearer product descriptions & sizing charts • Post-purchase emails on how to use the product == 8. Organic vs. Paid Revenue Ratio If 60%+ of your sales come from paid ads, you’re in trouble. Brands with real staying power win on organic channels. The fix? • SEO & content marketing • Affiliate & referral programs • Retention tactics (VIP, loyalty, subscriptions) == 8. SKU Concentration Risk If 80%+ of your revenue comes from one product, you’re vulnerable. Great brands expand without overextending. Turn one-time buyers into multi-SKU customers with: • Bundles • Exclusive add-ons • Subscription perks == 9. % of Revenue from Returning Customers A healthy DTC brand makes 40%+ of revenue from repeat buyers. If you’re below that, focus on LTV levers: • VIP memberships • Personalized email/SMS offers • Post-purchase nurture flows Follow Josh Payne for deep dives on DTC, SaaS, and investing.

Inside-Out Approach to Choose Your Investment Strategy: 🎯 Why do we find it hard to choose from so many different investment options? There are about 1500 mutual funds to choose from. The proliferation of financial instruments (a financial instrument is a contract to buy and sell stocks, bonds, mutual funds, etc.) such as mutual funds, exchange traded funds, and many others is rooted in the need for diversification, risk management and ability to meet the diverse investor goals. Imagine, if you only had five financial instruments to choose from. I'm pretty sure, one of you would have created a sixth one that would satisfy a unique need and that would have opened up new options for others as well. The financial instrument like a mutual fund promises to satisfy investor need and therefore, if you are an individual investor, it makes a lot of sense to look at it inside-out instead of outside-in. Steps to Define Your Investment Strategy Using the Inside-Out Approach: 1. Start from What You Know 🧠 Begin by reflecting on your current financial situation and knowledge about investing. This combination will be unique only to you. 2. Define Your Investment Goals 🎯 Ask yourself: Why do you want to invest? What is the purpose of this wealth-building exercise? 3. Make a List of Your Investment Goals 📋 Identify the reasons for your investment. Here are some examples: Emergency Fund 🚑 Marriage 💍 Starting a Business 💼 Buying a House 🏡 Paying Household Expenses 🏠 Medical Expenses 💊 4. Match Each Goal with Financial Instruments 🔗 Align your goals with what different financial instruments promise to deliver: Emergency Fund = Safety (minimize risk) Retirement = Growth (long-term investment) Medical Expenses = Protection (insurance for unexpected costs) Household Expenses = Cash Flow (daily financial needs) 5. Estimate Your Needs 💰 Make a best guess of how much you need to satisfy each goal and when you need it by. 6. Calculate Your Monthly Savings 📈 Do the math to determine how much you need to save each month to reach your goals. By following these six steps, you can choose the mutual fund that is best suited for you—tailored to your unique needs, rather than simply following what works for someone else! Now it's your turn! 🤔Take a moment to reflect on your current investment strategy. Here are a few questions to consider: Are you aligning your choices with your personal financial goals? 🎯 What challenges have you faced in selecting the right financial instruments? ❓ Have you discovered any strategies that have worked well for you? 💡 Share your thoughts in the comments below! 💬 Whether you’ve found a method that works for you or are still navigating the sea of options, your insights could help others on their investment journey. #personalfinance #insideout #investmentstrategy

How Is Your Investment Strategy Embracing Sustainability? ➤ In today's world, where the call for sustainability is louder than ever, how are you weaving Environmental, Social, and Governance (ESG) factors into your investment strategy? ↳ Sustainable investing is more than a trend—it's a transformative approach reshaping the financial landscape. ↳ The United Nations' Principles for Responsible Investment (PRI) defines responsible investment as integrating ESG factors into investment decisions and active ownership. ↳ While terms like ESG, sustainable, socially responsible, and impact investing may seem interchangeable, they each carry unique nuances. 💡 For instance, Bridges Fund Management's 2015 study highlights a key difference: responsible investment focuses on mitigating risky ESG practices to protect value, while sustainable investment adopts progressive ESG practices to enhance value. ➤ Investment managers today are tasked with a delicate balance. They must consider the interests of shareholders, employees, customers, and communities while delivering both financial returns and social and environmental impact. ➤ There are five primary ESG investment approaches: 📌 Screening: This involves both negative and positive screening to select investments based on specific ESG criteria. 📌 ESG Integration: The most favored approach, as per the Schroeder's Institutional Investor Study 2021, involves incorporating ESG factors directly into the investment process. 📌 Thematic Investing: Focuses on themes such as renewable energy or social equity. 📌 Engagement (Active Ownership): Involves investors actively engaging with companies to influence their ESG practices. 📌 Impact Investing: Aims to generate measurable social and environmental impact alongside financial returns. → As we move toward a more sustainable future, investors are increasingly seeking strategies that balance risk management with the opportunity to generate strong long-term returns. → How is your investment strategy adapting to this evolving landscape? → Are you ready to embrace the potential of sustainable investing to make a meaningful impact?

For SMEs, several financial ratios are crucial for assessing financial health, operational efficiency, and profitability. Here are some of the most important financial ratios: 1. Liquidity Ratios ->> Current Ratio: Current Assets / Current Liabilities Purpose: Measures the company's ability to cover its short-term obligations with its short-term assets. A ratio of 1 or higher is typically preferred. ->> Quick Ratio (Acid-Test Ratio): (Current Assets - Inventory) / Current Liabilities Purpose: Evaluates the ability to meet short-term obligations without relying on the sale of inventory. This is more stringent than the current ratio. 2. Profitability Ratios ->> Gross Profit Margin: (Gross Profit / Revenue) * 100 Purpose: Indicates the percentage of revenue that exceeds the cost of goods sold, reflecting production efficiency. ->> Net Profit Margin: (Net Profit / Revenue) * 100 Purpose: Shows the percentage of revenue remaining after all expenses, taxes, and interest are deducted. ->> Return on Assets (ROA): (Net Income / Total Assets) * 100 Purpose: Measures how effectively a company is using its assets to generate profit. ->> Return on Equity (ROE): (Net Income / Shareholder's Equity) * 100 Purpose: Reflects the return generated on shareholders' equity, indicating how well the company is utilizing shareholders’ investments. 3. Leverage Ratios ->> Debt-to-Equity Ratio: Total Liabilities / Shareholder's Equity Purpose: Assesses the degree to which a company is financing its operations through debt versus wholly-owned funds. A lower ratio typically indicates less financial risk. ->> Interest Coverage Ratio: EBIT / Interest Expense Purpose: Measures the company's ability to meet interest payments on outstanding debt. A higher ratio suggests better debt management. 4. Efficiency Ratios ->> Inventory Turnover: Cost of Goods Sold / Average Inventory Purpose: Indicates how quickly a company sells its inventory, pointing to inventory management efficiency. ->> Accounts Receivable Turnover: Net Credit Sales / Average Accounts Receivable Purpose: Measures the efficiency in collecting receivables, indicating the effectiveness of the company’s credit policies. ->> Asset Turnover Ratio: Revenue / Total Assets Purpose: Shows how efficiently the company is using its assets to generate revenue. 5. Growth Ratios ->> Revenue Growth Rate: (Current Period Revenue - Prior Period Revenue) / Prior Period Revenue * 100 Purpose: Tracks the rate of growth in revenue over time, a key indicator of business expansion. ->> Earnings Growth Rate: (Current Period Earnings - Prior Period Earnings) / Prior Period Earnings * 100 Purpose: Reflects the growth in a company’s earnings, indicating its long-term profitability trends. These ratios provide SMEs with a comprehensive view of their financial performance, helping in decision-making, securing financing, and managing day-to-day operations effectively. #msmes #msmelending #financialratios #india Findestination

Your board pack isn’t too long. It’s too unclear. The Problem: Boards are overloaded with metrics. Revenue trends, operating ratios, headcount tables, and funding breakdowns. And still, no one knows what to do next. They flip pages. They nod. Then ask for another update next month. The Agitation: - This isn’t harmless. - It delays decisions. - It hides risk. - And it quietly erodes trust in the finance team because if you can’t explain what matters, they won’t believe you see it. Every unnecessary chart is costing you board confidence. Every missed insight is slowing the business down. The Solution: Simplicity isn’t about dumbing it down. It’s about cutting through. The best CFOs don’t deliver data. They deliver direction. They show 1. What changed 2. Why it matters 3. What decision is needed now 4. No filler. No flex. Just leadership. Try this: Before your next board meeting, take one slide. Ask yourself: “If this was all they saw, would it move them to act?” If not, rewrite it until it does. CFOs, when did you cut through the clutter and shift the room? Tell us what worked. That clarity builds careers. #CFO #FinancialClarity #StrategicLeadership #BoardReporting #DecisionSupport