A Different Set of Eyes

As with the doctor offering the annual physical examination, Business Transition Consulting (BTC) provides testing and observation of owner-managed businesses. Questions are asked of the owner and the owner’s opinion considered, but judgment is reserved pending observation of the business. Conclusions, given in an oral report, are made based on rational judgment blended with the experience of a seasoned business consultant - a different and objective perspective. BTC calls this business checkup a Business Review. This service is available through a one-day observation of the business and delivery of an oral report the next morning.

We understand that it is wise to have an annual physical examination, because we need an opinion other than our own. We are asked, “How do you feel?” But our judgment on that point is not accepted by the doctor, merely noted. Certain tests are done and certain observations are made. We want the doctor to do tests and make the observations – to check for likely problems. Then we want a report from the doctor providing an objective and knowledgeable point of view. We do not have the checkup to have the doctor take our word for the state of our health.

The situation of the individual concerned about health is analogous to that of the business owner concerned about the status of the business. Even believing the status of the business is well understood, the wise business owner from time to time will want a different perspective - a different set of eyes to view the business.

The Business Review includes:

  1. Conduct of initial conference concerning the history of the business and the goals of ownership, including review of the business plan.
  2. Review of business facility.
  3. Interview of key employees.
  4. Examination of financial reports, including tax returns, of the last four years of the business.
  5. Conduct of conferences with selected executives and owners
  6. .Review of accounting systems and software, including an evaluation of management reports.
  7. Observation of sales and marketing strategies in the context of the market plan.
  8. Review of operations, including tracked information, reports utilized, and productivity.
  9. Determination of budget use, including the tracking of compliance consequences.
  10. Determination of proactive monitoring of costs, especially the effects of material, labor and overhead costs on profitability.
  11. Review use of incentive compensation plans based on productivity yield not profit sharing.
  12. Review of inventory records concerning raw materials, supplies, work-in-progress, and finished goods.
  13. Determination of use of break-even analysis for product group, sales personnel, service offering, or marketing strategies.
  14. Review of cash flow management including forecasting and management of payables and receivables.
  15. Review tax planning, including review of tax strategy with respect to business entity.
  16. Determination of asset protection including transaction of business by an appropriate limited liability entity.

Would you appreciate learning what another set of eyes might see about your business? Wouldn’t this be especially valuable if these were the eyes of an experienced business consultant? One improved or new business practice could easily pay for the Business Review with increased profits.