1. Analyze the current cost structure.
- Objective: To understand where the actual accounting data is allocating costs. Identify patterns and benchmark standards for cost usage.
- Target audience: Finance and accounting professionals with a strong focus on reading costs, accounting entries, and financial statement audits.
2. Analyze the nature of recorded accounting costs to understand why they increase/decrease/have a cyclical nature.
- Objective: To understand the methods, capabilities, and processes of making payments within the company through key departments.
- Target audience: Finance and accounting professionals.
3. Explore how the financial structure impacts cash flow and the cash conversion cycle.
- Objective: Understand the pressure on cash flow and the sources of founders’ concerns.
- Target audience: Finance and accounting professionals.
4. Identify the department that enjoys the highest percentage margin in the value chain, from… to market.
- Objective: To determine the profit margins of sales, customers, founders/CEO, board of directors, and other variable costs.
- Target audience: Finance and accounting professionals.
5. Evaluate the competitive advantage and reasons why customers choose the company.
- Objective: To determine whether the company’s differentiation and value proposition are meaningful to customers.
- Target audience: Market research and sales professionals, as well as those involved in fieldwork.
6. Have a deep understanding of various business models to assess whether the company’s current resource allocation is excessive or insufficient.
- Target audience: Individuals with experience in investing and serving on the boards of directors of multiple companies.
7. Analyze the job descriptions of operational roles to understand why these positions exist and why individuals hold multiple roles.
- Target audience: Individuals with experience in operations management, resource allocation, and communication.
8. Model the financial plan and capital usage.
- Objective: Understand the company’s profitability, working capital requirements, reinvestment needs, and dividend potential.
- Target audience: Finance professionals.
9. Analyze the total cost and time required for different strategic options.
- Objective: Evaluate the human resources, time, risk, and return on investment associated with each option.
- Target audience: Finance and accounting professionals with experience in successful and failed projects.
10. Understand human psychology.
- Objective: Recognize that most employees are primarily motivated by money.
- Target audience: Individuals with experience in recruiting large numbers of people.
11. Anticipate competitors’ responses to different strategic choices.
- Objective: Avoid direct competition with larger companies and focus on untapped markets.
- Target audience: Individuals with a deep understanding of industry dynamics and competitive landscapes.
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