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Posts Tagged ‘corpfincafe’

When Everyone Is Your New BFF…

February 22nd, 2013 Comments off

As I had announced in my last posting, Cylance had officially launched, and with that news came additional details on our Board of Directors, Advisors, and the funding that we had secured. More specifically, $15 million that have been secured through two of the top VC firms, Khosla Ventures and Fairhaven Capital Partners. Now keep in mind, while we are still technically a start-up, there is no shortage of work and structure that needs to be in place to secure this kind of funding. The last I checked, you just don’t go knocking on a few doors and hope that someone writes you an 8-figure check.

I’m also not going to go into the details of our current structure, but I get a bit of a chuckle seeing the onslaught of marketing materials that we have received since our launch. You would think that in one fell swoop we had just filed our fictitious business name statement and only moments later had already sold the company for a HUGE payday. To start things off, there were countless solicitations for real estate representation and wanting to help us find our future home. Check. Already have that covered through a long established and trusted network. The next onslaught would be best characterized as the recruiter onslaught. With a management team that has decades of experience in cyber security then they better be able to recruit from within their own network. Check. We are already solidly moving forward with an A-grade team. Next you wonder? A myriad of folks who want to help us navigate the stormy waters of insurance coverage. Check. Already have that covered as well through our long established and trusted network. Whether workers’ comp or D&O, it we don’t have that in place we have no business being in the positions we are.

The next wave of solicitations was even more amusing. As you know, when you start a company you are destined for riches and it might as well be a slam dunk. It’s a good thing that we started receiving all the literature now on what to do with the vast wealth that will occur at some assured time in the future. Again, this is an area where I wouldn’t trust anyone I didn’t already know and was a trusted advisor or source in the past. I just have to wonder what kind of success these firms have by reading the paper, assembling an envelope of marketing filler, throwing on some postage and dropping it in the mail. In the Finance world, unless you have a unique value proposition that will help me improve my results, in a sustainable way, and isn’t offered by my existing trusted network…then you’ll have a long line to wait in.

As our work and efforts require, we secure our business on trusted relationships and a definitive expertise that we bring to the table and not a glossy brochure. A unique value & protection proposition that our customers can plainly see. What are you bringing to the table…?

Thanks for reading…

Jeffrey Ishmael

What Are The True Symptoms? – Part 2

December 17th, 2012 Comments off

As I mentioned in my last post, I had the enjoyment of sitting down with my sister to help her through a hypothetical hospital P&L walk. Although her interest in the subject was forced due to a Hospital Finance course she was being forced to take, it was still enjoyable to walk her through what I do on a daily basis. As with any P&L, we started at the topline and discussed revenues, or in her case, the billings a hospital would recognize in their delivery of services. I explained to her that the hospital will assemble a Budget based on certain historical trends that would likely include patient volume, service offerings, anticipated growth/decline in the surrounding community, and other similar factors. That the actual billings would be tracked against these figures and any changes would be reflected as a variance. We discussed the possibilities that might significantly affect the billings of a hospital, which might include natural disasters, significant weather impacts, major accidents (airline), or possibly a viral outbreak. While these might seem extreme, they are examples of what could drive variances in a hospital’s P&L.

We kept the walk very simple and segregated only between billings and the operating expenses of the hospital. With that in mind, we started discussing some of the common elements to a hospital P&L. The biggest factor in this portion of the walk being labor. We discussed how a hospital, based on historical activities, would likely set up a labor matrix for the staffing of the hospital, and what the effects would be if admittance rates drastically increased or decreased, and the subsequent variances this would cause. She started to see the pattern here and started drawing similar analogies to the use of supplies, as well as what the effects would be if inferior supplies were used….& the potential liabilities this would create for the hospital. I could sense that her grasp of the subject was taking hold and she was actually becoming enthused about the topic.

As we walked through a number of the other P&L elements she actually commented that I seem to have a pretty interesting job. I told her that the biggest key to executing on the original Budget, and the ability to address changing market conditions, was ongoing communication & transparency with the staff. It’s the job of the Finance department to provide the proper level of transparency and help keep the team informed and educated on the results being achieved. It’s the obligation of Finance to communicate with the rest of the staff, and as I advised my sister, it’s critical to understand what the true symptoms are of the variances that are being presented.

Thanks for reading…

Jeffrey Ishmael