Rainier Group | Strategic Advisory
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Strategic Advisory

STRATEGIC GROWTH PLANNING

Growing your business has short and long-term effects. Knowing how to grow, why you are growing, and when to implement your initiatives will save you time and money. The right plan will leave a lasting impact on your business.

Our capabilities in tracking key performance indicators and risk modeling allow owners to make the right critical decisions as they pursue growth.

 

KEY PERFORMANCE INDICATORS (KPI)

KPIs are metrics used to assess a company’s progress. Common KPIs are Net Margin, Profit Margin and Current Ratio. More useful KPIs are industry dependent and measure items like:

 

  • Conversion rate:
    • How successful is a campaign?
    • What is the best “bang for our buck” with our marketing dollar?
  • Throughput: The rate at which an item (or process) can be produced
    • Was our investment in PP&E worthwhile?
    • Was our investment in PP&E worthwhile?o Knowing throughput of various processes will allow us to determine where a bottleneck may be
  • Actual vs. Budget
    • Measure how accurate your budget has been over the years
      • Do you need to revisit how a project is budgeted?
      • Do you need to consider different pricing strategies?

 

RISK MODELING

The process is much more involved. We apply randomness to dozens (or hundreds) of inputs in the model and run the analysis based on the assumptions of the model and the randomness (variability) we apply. The simulations can help answer questions like:

 

  • What’s the probability we hit our growth targets?
  • If we take on ‘Project X’, what’s the probability the investment will prove successful?
  • When will we need to expand / buy the new machine / etc?
  • Will our growth support the cost of the expansion?

 

DECISION-MAKING

Very similar to Risk Modeling, but the focus is shifted towards timing (e.g., When should we expand? Or does it make economic sense to expand?) We run Monte Carlo simulations on the corporate model to answer questions like:

 

  • When will we need to expand or buy a new machine?
  • Will our growth support the cost of the expansion?

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