1. Two entrepreneurs approached Miller CFO Services with an interest in financial modeling for a variety of possible new companies. They examined the characteristics of successful startups, and concluded that startups in industries with certain company-dominance patterns were most likely to finish “in the money.” Contact between the entrepreneurs and Miller CFO Services was established at a networking session of the Vermont Businesses for Social Responsibility, and the modeling began.
After several modeling initiatives, it became clear to the two owners that a company in a niche food market was the best of the available alternatives. The entrepreneurs then asked Miller CFO to tailor the financial model to s particular production and distribution channel system, with budgets for marketing, staffing, and other overhead increases, which resulted in a projected investment requirement. The model produces monthly budgets for P&L, balance sheet, and cashflow statements, along with worst case scenarios that allowed the entrepreneurs to estimate the most cash that an otherwise successful startup might need.
With this model as a resource, the two entrepreneurs were able to attract investors and talent, and to start the company on the road to a successful conclusion. The company reached sales of several million dollars per year, and progressed through several successful investment cycles.
2. One of the same entrepreneurs approached Miller CFO Services several years later with another idea for a new business. This one also required a series of financial models showing the financial results for an international production and licensing company under various assumptions for distribution of the technology.
After several meetings with the owner, Miller CFO produced a model that 3 years later is still the basis for the successful budgeting of the startup’s efforts. On the basis of the model, the owner has recruited talent and secured investment for the slow but steady expansion of the firm.