Uniquely American Business Math
Every American business has overhead otherwise know as operating expenses. These are accounted for and managed into categories of either fixed or variable expenses. Every year during the budget cycle these expenses are reviewed thoroughly. Are there variable expenses that can be reduced? Are there upcoming projects that need to be funded? How much will the fixed expenses such as salaries be going up year over year? Will some of this need to be trimmed?
When any sound, experienced financial business leader is undertaking the project of evaluating specific expenses, they are essentially applying a debit to each operating division, while expressing a credit for divisional revenue. The basic math appears so simple until the equation changes. This change occurs when new information enters the equation in conflict with or directly contradicts “the old way”of solving said problem. In America, business math is changing just as fast as the options our capitalist business society provides.
Take a look at the chart below to see how fast changes have been happening in the health insurance sector since PPO's were introduced. Costs have continued to spiral out of control year over year. Yet these are expenses a CFO needs to account for each and every year even though they outpace all other consumers CPI.
Our math at USA Fulcrum empowers American businesses to convert legacy company liabilities directly into a cash positive asset category. We have a new way to solve an old problem creating new immediate cash flow for our clients. This cash flow not only is immediate but continues year after year.
When your organization is ready and open to exploring the facts to any 20th century, learned legacy thinking specific to expenses (liabilities), while simultaneously unlocking trapped capital (cash/asset) in new ways, with zero-friction solutions never needing to violate any current relationship, vendor, or any organizational objectives we are open to a conversation.
Mike King is a Partner at USA Fulcrum providing Uniquely American solutions to help you turn liabilities into assets and unlock trapped capital.