Capital Planning

The most important thing entrepreneurs learn early on is–-never, ever, run out of money.  Capital planning is central to any business but few have exceptional systems in place that support good business decisions. For businesses, having too much capital for extended periods of time can be nearly as negative as not having enough capital. 

For example, we have a client that takes on investment capital so that they can buy commodity products they can sell for more. Not having enough capital means they may miss valuable opportunities to add to their portfolio. Having too much capital means they are paying significant interest on undeployed non-income producing capital. This situation could be extrapolated to nearly any industry–capital planning is a key function that needs to be addressed.

DHx has experience working with clients that have significant capital management requirements relative to understanding their sales pipelines, forecasts and backlogs, with a complete picture of their current and future expenses so they can address the critical capital planning process. In most cases, this planning is the difference between success and failure.

We have designed and developed systems that compile data from various steps in the process to determine both near and longer-term capital requirements. Moreover, specific designs have included dashboards where at a single glance business executives can see exactly where they are at. Think of the control systems in the cockpit of an airplane–you need to be able to quickly glance, evaluate and make decisions. Custom systems can be built to give business executives a simplified overview with drill-down capabilities to assess where they are so they can make the best possible decisions.

• Do you have good visibility into your capital planning?
• Are you comfortable with your timing of incoming and outgoing dollars?
• Do you have teams that need to compile this kind of information or is it available at the click of a button?
• Are your reports and numbers easy to read and supported by the details?
• Is this information available quickly and easily across your teams?

If you think you can improve business results with better capital planning tools, we should talk!