FastModel Sports, a SaaS provider: Grow Revenue, Profits and Cash Flow
Goal
Having just completed a large layoff to right size the business including the CFO, the company goal was to grow revenue and profit without any significant increase in staffing costs and to provide more timely, accurate and actionable reports and analyses to the new President and the Board. Additionally, the company sought to stay cash positive through the end of the non-selling season each year (which had not previously been achieved.)
Actions
With a CFO Options team of an accountant, a controller and a CFO, we:
Took over revenue recognition
Developed a new tool to analyze time and costs for the capitalization of software development costs
Updated and streamlined cash forecasting and management tool
Created a new budget and forecasting format that included segregating operating expenses by department
Developed new sales pacing reports
Developed attrition reports by product and customer channel
Results
Annual profit increased significantly pre-CFO Options to post
Successful CPA audits of financials including revenue recognition and capitalized software development
Board approved budget and operating plan for 2020 and 2021 which in turn led to increased profitability and significant increase in revenue for 2021 meeting the Board’s ARR (annual recurring revenue) goal
Attained 2 PPP loans each necessary to keep the business moving forward; successful forgiveness of first loan; approval of second pending
Clear sales and attrition reporting as compared to plan and prior year allowing for better sales management and visibility to Board and investment banker as to progress increasing revenue to target ARR for sale of business
Accelerated monthly close process
Streamlined and consolidated monthly Board reporting