Kirk McClaren is the CEO of Foresight CFO. Their main focus is advising CEOs of private businesses, helping them to grow through accounting and CFO services. McClaren believes that CEOs are an underserved portion of the market and aim to provide accounting consulting. McClaren has had a long history of successfully growing businesses, having built and sold his first company before graduating high school. In addition, McClaren served in the US army as well as decades of experiencing helping accelerate private businesses.
As a finance and accounting advisor for many years, McClaren noticed Foresight CFO was missing out on a growing opportunity – growth and value building consulting. In McClaren’s experience, he found that only discussing accounting matters provided a limited view of the business, and needed help showing CEOs how to improve other areas as well. McClaren knew he needed a platform to showcase the qualitative aspects of the business in addition to the financials. The platform needed to include simple graphics and visualizations to help CEOs better understand other growth opportunities within their business.
In a new platform, McClaren was also looking for ways to make Foresight CFO a healthier and more profitable business. This meant enhancing their current advisory service and introducing a new revenue stream. By providing a more valuable offering to business owners, McClaren was hoping this would also lead to higher client retention. With these challenges in mind, Foresight CFO went on a search for an all-encompassing platform that fulfilled their needs.
With The Value Builder System™ now part of his repertoire, McClaren has found the perfect complement to his accounting expertise. He is now able to provide a fuller picture of how a business performs and is reaping the benefits of a new revenue stream and stronger client retention.
Prior to partnering with The Value Builder System™, McClaren was charging clients a monthly fee of $2000 a month. Now with The Value Builder System™ integrated into his advisory service, ForeSight CFO is charging an additional $5000 a month, increasing revenues by 250%. McClaren was able to achieve his goal of showing CEOs other areas that can help increase value. In using The Value Builder Questionnaire, McClaren is able to indicate specific strengths and weaknesses of the business, providing a quantitative score based on each of the 8 Key Drivers of Company Value. With the ability to showcase this information and put forth strategies for improvement, Foresight CFO now provides a stronger advisory service to customers.
The Value Builder Questionnaire has also proven to be a key contributor to acquiring new clients. In less than 15 minutes, business owners can complete the assessment and receive a detailed report on what areas need to be addressed. With this tool, McClaren has been able to help convert clients looking for accounting services to bcome value building clients. As McClaren describes it, “momentum gained through The Value Builder Questionnaire leads to more clients.” Foresight CFO has been able to provide both accounting and value building consulting in tandem, which has also helped to increase retention.
When rolling out the value building advisory stream, McClaren was strategic in deciding the timeline for working with business owners. Operating within the framework of the 8 Key Drivers of Company Value, McClaren dedicates one driver per quarter to try and improve one area at a time. By allocating three months for each of the 8 drivers, McClaren was able to extend his advisory timeline to a minimum of two years, while also giving structure and consistency to his service. Coupled with a high monthly fee, Foresight CFO has implemented a more predictable and sustainable recurring revenue stream. When discussing why this strategy works, McClaren said, “The reason our retention is so high is because you can hire people to do financial planning analysis but you can’t find many who can guide you in your growth.”
Foresight CFO has successfully expanded their service from only providing accounting consulting to now offering value building as well. They have been able to exponentially grow their revenue by 250% by implementing The Value Builder System™. This shift in strategy has also helped to improve retention with clients relying on Foresight CFO for up to four years. Enhancing their offering to include value building consulting has helped McClaren and his team enter into a new market that will only continue to grow in the coming years.
Martin Williamson is a Business Doctors advisor who helps SME business owners with strategy and planning, business improvement, and value.
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