fbpx

Outside View

[vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern”][vc_column][vc_column_text]

The person who thought up the word “outsourcing” probably didn’t have temporary CFOs in mind. But Russell Slappey, a CPA and the founder and CEO of Nperspective, has taken outsourcing to a whole new level.

His company, with four Florida locations including Miami and Boca Raton, is a treasure trove of talent, with interim, project-based and fractional CFOs in the house,

as well as a roster of financial advisers. In uncertain times like these, Nperspective’s services have never been more essential—or sought after.

“We’ve had a surge of clients needing help with cash flow forecasting, understanding their financial situation and profitability, helping them with their PPP loans, and now we’re getting into forgiveness calculations and reshaping organizations,” he says. “We’ve actually landed eight to 10 new clients over the last four months. We’ve been helping companies that haven’t been as fortunate as us.” Managing principal Anthony Foscolos, who has a résumé studded with CEO, CFO and COO roles, adds: “It’s a turbulent time,” which means clients need them now more than ever.

If many businesses, large and small, regard the economic fallout from COVID-19 as a break-glass moment, Nperspective can step in to offer calm and clarity. What’s the first thing a company should do to reorganize during a crisis? “Be realistic about where you are, what COVID-19 has done to your business,” Slappey says. “You have to learn to adapt, or perish. You have to be able to make the changes required to survive. PPP loans are temporary, so you have to take that into account. You have to look past that to prioritize which vendors you retain, because there may not be additional government money coming. We’ve been through this in 2007 and 2008, and there are some strategies.”

Foscolos reaches back into the beginnings of evolutionary biology for an analogy. “Charles Darwin looked at who is surviving over time,” he notes. “The seemingly strongest might not be the ones to survive—the dinosaurs didn’t survive.” Then, Foscolos continues, Darwin examined whether the most intelligent species survived, but they came up short as well. “So what is it that creates survival? Those quickest to adapt to change,” he concludes. “We all like to hold on to what we know and knew. But you have to learn to live within that new paradigm. Assess where you’re at because you do need to move and you do need to change.” Now for some practical advice: “It’s critical to have meaningful financial reports as your navigation system. If you’re not dialed into that, you need to start recreating it as fast as you can.”

“People say that cash is king, and I agree to a point, but if you’re not profitable, cash is going to run out,” Foscolos says. “Focus on profits—on an accrual method instead of money in, money out.” Cash flow, he notes, comes from operating. Other methods that come in handy when the economy stalls—selling assets, getting bank loans, a cash infusion by owners—are merely temporary fixes. “What we like to do is analyze the profit and loss every month, and then we like to project things,” he says. “If you’ve run your business for a number of years, you know how to run it at a lower level. Define goals a month in advance, then see how that month turned out.” Rinse and repeat. That’s how a business creates what Foscolos calls “a living forecast.”

Slappey says “forecasts are estimates, not actual, so comparing the two is going to drive your decisions over the next six months or a year, from layoffs to office space. As a CFO firm, we’re hired to build that forecast.” Slappey advises business owners to bore into the details, especially variable costs versus fixed costs. He says that incremental product costs that didn’t seem like a big deal pre-COVID-19 just became a big deal.

“Maybe it’s time to look for new vendors,” he suggests. He recommends exploring volume pricing with vendors—if you have four materials or services pegged to four different vendors, consider bringing everything under one roof. And then there’s the fraught topic of rent: You may be able to negotiate leases for longer periods of time, at a discount.

Being realistic about staffing is key. “Look at your employee levels when you were making $5 million rather than $10 million,” Slappey says. “Evaluate your A, B and C players.” The C players may have to be jettisoned; it may be necessary to roll back the wages of the A and B players. “You don’t want to be a butcher,” he cautions. “You have to safeguard morale now and in the future. We’re going to rebound: keep your A and B players on the team—especially your A players.”

Slappey cites one successful strategy in which a company implemented an across-the-board 20 to 30 percent pay cut. No one was singled out. “I’ve seen that work in bigger organizations,” he says. “Be creative, not cutthroat. An owner may forego his or her salary to show they have skin in the game.” And assess what your employees need most: For some staff, health care might be more important than salary.

“These are difficult times that require difficult decisions,” Foscolos says, “but if you don’t get your cash forecasting, profit-and-loss statement and your living forecast together, it’s going to come back and bite you.” But he’s also seeing a sunnier picture for companies who reached out to him: “Two of my COVID-19-impacted clients were in a panic situation, and in a panic situation you really have to stop and take stock. We looked at key customer by key customer and what we needed to do to be proactive. Then we were able to project, month by month, what would happen to the business. I’m happy to say that their sales have increased by 50 to 100 percent, and the reason for that is we took them out of their shock level and put them in an engaged level.”

 

This article was adapted from an installment of the SFBW-hosted “Virtual Connect” series, moderated by Managing Director Clayton Idle.

[/vc_column_text][/vc_column][/vc_row]

You May Also Like

South Florida Business & Wealth Holds Final CEO Connect Event of 2023

The magazine brought together five top business leaders for a rooftop discussion at ETARU.

VIDEO: Relive Our Legendary 2023 Apogee Awards

Everyone in attendance was in awe of the venue.

Breaking News: South Florida Business & Wealth’s Apogee Awards Breaks Attendance Records

Dinner on the Diamond at LoanDepot Park closed out the magazine’s Signature Awards Season

VIDEO: Relive Our Up & Comer Awards Night

We celebrated the honorees during a cocktail reception and an awards ceremony.

Other Posts

Come As You Are: D&I Also Includes Diversity of Experience

SFBW continues the conversation inspired by the admirable work of TD Bank.

SFBW Celebrates Lawyers and Legal Support Staffers Who Exemplify the Best of the Profession

The evening signaled our enhanced editorial coverage of the legal profession in print and online. Read on to find out how you can have your practice featured in the magazine.

Passionate and Intense, A Networking Event Organized by TD Bank and SFBW Addressed Issues of Diversity and Inclusion

Gilda’s Club in Fort Lauderdale was the venue for a spirited discussion.

People Who Need People

SFBW’s annual Human Resources Awards amply demonstrated that ways in which South Florida’s business landscape is built on relationships.

Drew Limsky

Drew Limsky

Editor-in-Chief

BIOGRAPHY

Drew Limsky joined Lifestyle Media Group in August 2020 as Editor-in-Chief of South Florida Business & Wealth. His first issue of SFBW, October 2020, heralded a reimagined structure, with new content categories and a slew of fresh visual themes. “As sort of a cross between Forbes and Robb Report, with a dash of GQ and Vogue,” Limsky says, “SFBW reflects South Florida’s increasingly sophisticated and dynamic business and cultural landscape.”

Limsky, an avid traveler, swimmer and film buff who holds a law degree and Ph.D. from New York University, likes to say, “I’m a doctor, but I can’t operate—except on your brand.” He wrote his dissertation on the nonfiction work of Joan Didion. Prior to that, Limsky received his B.A. in English, summa cum laude, from Emory University and earned his M.A. in literature at American University in connection with a Masters Scholar Award fellowship.

Limsky came to SFBW at the apex of a storied career in journalism and publishing that includes six previous lead editorial roles, including for some of the world’s best-known brands. He served as global editor-in-chief of Lexus magazine, founding editor-in-chief of custom lifestyle magazines for Cadillac and Holland America Line, and was the founding editor-in-chief of Modern Luxury Interiors South Florida. He also was the executive editor for B2B magazines for Acura and Honda Financial Services, and he served as travel editor for Conde Nast. Magazines under Limsky’s editorship have garnered more than 75 industry awards.

He has also written for many of the country’s top newspapers and magazines, including The New York Times, Washington Post, Los Angeles Times, Miami Herald, Boston Globe, USA Today, Worth, Robb Report, Afar, Time Out New York, National Geographic Traveler, Men’s Journal, Ritz-Carlton, Elite Traveler, Florida Design, Metropolis and Architectural Digest Mexico. His other clients have included Four Seasons, Acqualina Resort & Residences, Yahoo!, American Airlines, Wynn, Douglas Elliman and Corcoran. As an adjunct assistant professor, Limsky has taught journalism, film and creative writing at the City University of New York, Pace University, American University and other colleges.