Financial Analysis

Your business is special and is unique from your competitors. So why would you rely on industry averages or rules of thumb? We avoid blanket advice to our clients because we seek clients that want to be more than just “above average.” Our Financial Analysis is broken down into four specific areas:

  • Budgeting and Sales Projections
  • Pricing Analysis
  • Cost of Capital
  • Significant Investment Analysis

Budgeting and Sales Projections

You are a money generating machine. You are also a money spending machine. How do you balance the two to ensure maximized profits? A carefully crafted budget will not only give you a detailed guideline of efficient spending, but also will serve as your view into the future for what to expect. Perhaps even more important is what to expect from your firm in sales. But with seasonal fluctuations how do you accurately forecast to make sure you are on track? Garofola Financial utilizes the same seasonal smoothing tools as the Census Bureau for our sales projections, so our clients know exactly how much revenue needs to be produced each month in order to meet their annual sales goals.

Pricing Analysis

Is your pricing set to maximize your profits? With Garofola Financial you will receive the information and tools you need in order to achieve maximum profitability in your pricing model. Our process involves breaking down:

  • Cost Analysis
  • Pricing Philosophy
  • Pricing Elasticity

Cost of Capital

Your business is likely the biggest investment you will ever make. As any smart investor will tell you when you invest money you should know what your required return needs to be in order for the investment to make sense. Unfortunately, most small business owners do not know how much they need to make in profit from their business in order for their biggest investment to pay off. We develop this answer for our clients and it is called Cost of Capital. This number is a guiding light for your business and will help you make critical decisions including whether or not to expand and if a large project is worth your time and energy.

Significant Investment Analysis

Imagine a significant opportunity is presented to your business. Do you seize the opportunity and take on the additional risk associated with it or do you reject it? Projects like this come in many forms, such as bringing on a key employee, purchasing a large piece of equipment, or undertaking a large project. Our analysis of these projects will give clarity to the specific risks and rewards of taking on these investments. You will have clarity on the true cost of the project, if it is truly worth the risk, and how long it will take for the investment to pay off.