Strategic Wealth Targeting
FMC Financial Services, Inc (FMC) has developed proprietary software used to grow the wealth of a business. It is based on a concept developed by FMC titled Strategic Wealth Targeting® (SWT). Using this approach, the business owner will view the value of their business as they would the value of their 401K or other retirement plans. A traditional retirement plan usually gives the control to an investment advisor to make the correct decisions to hopefully increase the value i.e. “wealth” of the retirement portfolio. Similarly, the business owner using the SWT approach can chart a course to create a predetermine value of the company at its exit.
Each month the model calculates 23 ratios and trends and compares them against industry ratios to determine whether the business is financially healthy. In addition each quarter an “indication of value” is calculated, and if it is not increasing, then the ratios are reverse engineered to determine where the weaknesses exist in business practices and management’s behavior, and corrections are made. This sets a foundation for the value of the company to continue to grow which increases the wealth of the business owner. For example, if the company has set a wealth target (valuation) of $10,000,000 for the 24th month, adjustments leading up to the 24th month can be made each quarter to hit the wealth target set.
An additional feature of the financial model is that a variety of scenarios can be run to assure that if certain business decisions are made that they will not cash starve the business and that the proper amount and type of financing is deployed at the correct time. In other words SWT functions as a simulator to determine the economic effect of decisions before they are actually put in practice.
If the business owner feels uncomfortable interpreting financial ratios and trends, the SWT software is designed to automatically create a written text that offers decisions that should be made in order for the company to attract capital for growth while increasing the company’s wealth.
Information for Business Owners
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Although small businesses are the largest contributors to the economy, they experience a failure rate of 80% during the first five years.
Half of the survivors fail over the following three years. The major reasons for failure are lack of sufficient capital and business knowledge, insufficient revenues, and no exit planning.
CPA Programs
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Like all businesses, a CPA’s practice has a target market and needs to differentiate itself from the competition.
For over 30 years FMC has been growing business including CPA practices providing value added services.
In your practice’s strategy, if you are not already targeting the small business, we strongly suggest you consider it.
If you already do, then we want to help you grow your practice.
Banking Solutions
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FMC Financial Services, Inc. (FMC) serves both banks and small business owners. Each is benefited mutually by growing together.
Small businesses account for over 55% of the GNP and exert a powerful impact on the local economy.
Without the support of local banks, small businesses would not have sufficient capital for growth.