Furthermore, research bears out the tendency for companies to linger. Many studies have shown that as a business ages, the average total return to shareholders eventually tends to decline. In addition, studies show that most family-owned businesses are unsuccessful in their implementation of transitions, be it through sale or succession, and that they tend to exit at the troughs of business cycles – usually the worst time to sell.

The case of GM and its Saturn line illustrate this issue. In 1985, General Motors launched Saturn. It was a small-car division that was GM’s response to rapid demand for compact Japanese brands. Consumers were incredibly receptive and sales peaked in 1994. Aftwerward, however, sales drifted sideways and eventually lower. GM reorganized the division, and in 2004 agreed to invest a further $3 billion to rejuvenate the brand. Over 20 years later however, the line had become completely unprofitable, and as a result GM never saw its initial investment return to the black. In 2009 GM sold Saturn to Penske for less than what the value was in the mid 1990′s.

So, these are the facts. Whether the business is failing and needs to be restructured, or owners are ready to leave and want to protect the equity they have, a successful and well thought out exit strategy should always be a central component of any business plan. Opus Consulting Group is the business component of the exit process. Contact us to know more and how we can help.

And the fall of Borders and Blockbusters and Kodak and… The business world is changing at such a pace now that competitive advantages and new products are at the core of the business owners challenges more than ever. And all the benchmarks we used to take for granted are now not what you were expecting a few years ago, from ‘e-friends’ reinventing friendship to online universities being the new schools. Have you talked to your car yet today? Siri is telling you where to go.

In a recent article, FastCompany explains that “some people will thrive” in this new chaotic world. “They are the members of Generation Flux“. And we all know that “any business that ignores these transformations does so at its own peril. Despite recession, currency crises, and tremors of financial instability, the pace of disruption is roaring ahead. ”

I encourage you to read this eye-opener article and find out how it “defines GenFlux as a mind-set that embraces instability, that tolerates–and even enjoys–recalibrating careers, business models, and assumptions. Not everyone will join Generation Flux, but to be successful, businesses and individuals will have to work at it. ”

Opus Consulting Group is part of the GenFlux… We are helping our clients everyday to go through the changes and the challenges they are facing. Call/email/twit… whatever is your trend today.

Great event again. Contact me regarding future TMA event or question regarding Opus services.

Titles such as Bookkeeper, Controller and Chief Financial Officer(CFO) can get tossed around rather loosely in the small and medium size business world.  Today we’ll define the general duties of each position and their strategic roles within your organization.

Bookkeeper

A bookkeeper performs basic financial record keeping and can create simple financial reports.  A bookkeeper will typically perform the following basic tasks:

- Keep accurate records of financial transactions and can create basic financial statements (Income Statement and Balance Sheet) using your accounting software.
- Perform basic A/P management – makes sure bills get paid and then records these entries into the accounting system.
- Perform basic A/R management – if the business has to send invoices to customers to get paid, sends out invoices usually once a month.

Although the tasks are basic, attention to detail is of the utmost importance in the bookkeeping profession.  A few data entry errors can cost your company a significant amount of time and money.  The bookkeeper, or the accountant, of your company is an essential element of your administrative team.

Controller
Adding a controller adds more power to your financial management.  In fact, a good controller will pay for itself in a growing company that needs more advanced systems by helping to keep costs under control and by helping to better manage cash flow.  A controller performs the following tasks:

- A controller will either perform all of the functions of a bookkeeper, or supervise the staff that does.
- They can create customized daily, weekly and monthly financial reports to meet the specific needs of your business.
- They have the knowledge to choose and maintain financial software.
- They can take over the basic cash flow management of the business.  But major cash flow decisions will still be up to the business owner.

A good controller is worth their weight in gold to any small or medium size business where cash management is a strategic factor in success.

CFO

The CFO is in charge of the overall financial management of a company.  Planning, projecting, measuring and tracking financial and operational progress fall under the CFO’s umbrella.  A CFO’s duties include:

- Supervise accounting and operational departments and can perform all functions of a Controller.
- Analyze and review the monthly Income Statement, Balance Sheet and Cash Flow with the management team. Also looks at the story behind the numbers, not just the numbers, and drives toward data-driven decision making.
- Create complex financial projections to aid in strategic decision making, and is an active player in the strategic management of the business.
- Direct the business in the development of an effective capital structure by securing debt financing at attractive terms, managing the lender relationships and ensuring compliance to the debt terms.
- Focus on effectiveness and efficiency of operations, reliability of financial reporting, and compliance with laws and regulations.
- Be the key contact for financial relationships in the banking and legal community as well as with major vendors and clients.

In conclusion, there is a significant strategic and tactical difference between the value a CFO brings to the leadership of a business and that of a Bookkeeper.  Because most small and medium size businesses cannot afford a full time CFO, then a part time CFO would be an ideal arrangement.  The key is to find a CFO that can be your trusted advisor and provide financial, operational and business insights. As a provider of part-time CFO and Controller services, contact us if you thik we can assist.

Here’s how the article starts…. “If your expenses are higher than your revenues, then your company is not well. Jacques Santucci, Mary Weickert, Dan Walsh, and James Ebbert offer potent medicine, though it may be hard to swallow.

In 2006, a mere 1,250 businesses filed bankruptcy in Maine. Since then, bankruptcies have more than doubled, with an all-time high, so far, of 4,100 in 2010. That’s a lot of Alka-Seltzer. Some economists say having some businesses close is ultimately good for the marketplace. It’s a way of correcting excesses, thinning the herd, a pecuniary version of Darwin’s survival of the fittest. Small comfort to the businesses’ owners and employees. In a state like Maine, where small enterprises are the norm, the fall of a business is all of life’s top stressors rolled into one. Financial hardship. Job loss. Moving. Divorce. Breakup of the family. Death of a loved one. People who spend more time together than they do with their own kin, who sometimes have solved problems together for decades, are unceremoniously dispersed. All the things the company provided—products, services, jobs, business for other businesses—go poof. The four experts in this roundtable don’t like “poof.” They want to help troubled Maine businesses turn the corner….”

I let you read the rest …. Or give us a call to discuss it. Stop by our office.

He welcomed me at the door, introduced me to the staff along the corridors, including the kitchen staff, mentioning how wonderful they treat him and his family. During the meeting, we discussed our backgrounds and exchanged our views and ideas on the economic development of the State of Maine. As you probably know, Gov. LePage is the first popularly-elected Franco-American governor of Maine and it was a pleasure to exchange some words on our backgrounds ‘en français‘. He is a passionate person, particularly when it comes to the people of his state and how we can improve the economy, bring jobs to our side of the country and create a fair environment for citizens and businesses. One of the topics was Education and how it is crucial to offer quality education to our children so they can stay in Maine and so that local companies can find employees to assist their growth.

If the State of Maine was a company, we could say that the ‘production’ department is one of the best, with all the talents we find in Maine. Efficient training will improve it. The State is actively changing the ‘admin’ department as you might have heard. But how about our ‘sales & marketing’ department? I emphasized that Maine has a tendency to not always have a consistent offering and a positive message out of the State to attract new opportunities, particularly towards Canada. Maine is nested next to the biggest economic poles in North America (Montreal/Quebec/New Brunswick, New York…). Beside tourism, it does not seem that we are attracting or improving our business with Quebec. Maine must change its communication messages, in and outside the US. We talked about how transportation ways with Canada for example are not adequate and that hopefully we will see improvement made in the next few years. Maine has very important French roots as well and it should be used to improve our business relationship with Quebec, through business forums but also education exchange. Gov. LePage assured me that they are working on reaching out to major companies internationally.

Over my past 12 years in Maine, I have seen large companies leaving the State of Maine, from Cole Haan being swept away by Nike to People’s Heritage Bank becoming a large Maine bank with TD Bank and right away moving south. And Fairchild SemiConductor to California. If companies are our ‘customers’ that create wealth and jobs in Maine, it seems logical to me that the Governor of Maine as ‘ceo’ would know and meet with his most important clients. I asked Gov. LePage when was the last time a Maine official had met with the CEO of Delhaize Group in Belgium, the company who owns Hannaford, the biggest employer in Maine, the biggest supermarket chain in Maine and one of the most prominent in the country. Headquartered in Scarbourough, ME, Hannaford started to consolidate its operation with Delhaize America in North Carolina, in 2010. This would be enough to me to fly to Belgium to understand what it means and how it will evolve. Needless to say, no one ever met Delhaize’s management in Belgium in the past. And this is only an example of what I think Maine is missing. Wondering when’s the last time the State of Maine talked to Nestlé in Europe, owners of Poland Springs Water?

Gov. LePage and I had a wonderful conversation. I found him very open to discussion and to ideas. It was also refreshing to hear someone who came to politics late in his career and that did not seem to be in the job for his personal benefit but to give a chance to his contemporaries to improve their lifes and his State to be successful, not only in business but also socially and environmentally. There’s a lot more to do and our team will continue to help businesses thrive and be successful.     Jacques Santucci

On November 17, 2011, TMA Maine organized an interesting panel discussion on the current lending market with participants from banks such as The Bank of Maine, Bangor Savings Bank, FAME, Peoples’s United. Very well attended.

The next event will be on January 18, 2012 from 5:30pm to 7:00pm -  TMA Maine Social Hour… a free event.

Come connect in the New Year with your fellow turnaround, accounting, banking, real estate and business professionals. Learn about the Maine Chapter of the Turnaround Management Association and what it can do for your business. Casual networking event with free light fare and pizza. The event will be at Pat’s Pizza in the  Oldport Location -30 Market Street – Portland ME 04101

Contact Jacques for more info.

Opus’s team members and friends decided to donate their faces to raising awareness about cancers that affect men.  Our team is Opus’tache and our commitment is the growth of nice moustaches for the entire month of “Movember”, which we know will generate conversation, controversy and laughter. And we can prove it… take a look at this picture taken a few days ago during an event we held to generate ‘curiosity’ in Portland!

We are growing a moustache and we’re asking you and our community to support the efforts by making a donation to the Movember.  To help:

-  Follow this link http://mobro.co/opustache and donate online using your credit card or PayPal account
-  Write a check payable to Movember, referencing my name or Registration Number 958678 and mailing it to: Movember, PO Box 2726, Venice, CA 90294-2726

The money raised will help make a tangible difference to the lives of others, through the world’s most promising prostate cancer research and LIVESTRONG’s programs that support young adults and their families battling and surviving cancer.

In 2010, over 64,500 US Mo Bros and Mo Sistas got on board, raising $7.5 million USD. And over $175 millions worldwide….

Help us continue this effort! Thank you.

We see 3 essential topics to address: Education, Marketing and Incentive. The State needs to have a better way to market itself in Maine but more importantly outside of Maine, with a real program that will attract new companies to Maine, allow existing businesses to grow with access to skilled labor.

Brian Eng is mentioned in the article of the Bangor Daily News. Take a look…

https://bangordailynews.com/2011/10/19/business/%E2%80%98it%E2%80%99s-time-to-get-to-real-work%E2%80%99-lepage-says-of-job-creation/

“Recently our company began working with a pro named Jacques Santucci who specializes in helping companies better understand and enhance their financial performance.

One of the things I like about Jacques is that he doesn’t look down on me for being a creative rather than a numbers guy. I’ve learned a lot.”

Mark Wellman, publisher, MaineAhead – October 2011