For the past few years, Utah has been recognized as the best place to do business in the US. The state’s economy has expanded 2.3 percent annually since 2006, much faster than the 0.5 percent for the rest of the country. Utah’s Governor Gary Herbert stated, “We have a very fertile environment for entrepreneurs and business. Our economy continues to outpace the national trend because we budget on sound principles and maintain a business-friendly environment.”
Your Business’s Economy
Things seem to be going well in Utah, but how is your business doing? Is your business expanding each year in this fertile environment? Are cash, revenues and profits expanding or are debts, obligations and stresses?
The same principles for governing a state apply to managing your business. Sound principles include fiscal responsibility (budgeting), conservative spending, and of course a definite plan for growth. Do you have a plan for the future? Just as imperative as a blueprint is to building a home, so too is a budget and long-term forecast imperative to building a business.
You may be exceptionally good at creating business ideas. You may also be very good with the marketing and sales. But how are your financial strategy and accounting skills? If you don’t have in place a budget and long-term forecast that is based on sound principles then you may not experience the kind of expansion you desperately await. A business managed to a well thought-out plan has a much higher probability of success. When success is first created in a detail plan form, then the execution follows a much more directed path.
Preferred CFO, based in Utah, helps its clients adhere to and apply sound principles in their financial management. By working with a virtual CFO, its clients are better able to understand the true economics of their business and able to make strategic decisions because of their insights into the profitability of their business. And of course, their clarified vision for the future increases their chances of success. Preferred CFO handles all of the complex issues around financial management and leaves the credit-taking to our clients.