Build Well is a reputed name in the civil construction/ projects space and has been in existence for over 5 decades with revenues over INR 600 crores. The company has been at the forefront of several prestigious commercial, residential and retail projects both in India and overseas. Build Well is backed by a leading PE fund.
MyCFO’s role was to strengthen the Finance and Internal control systems and to specifically build and monitor cash flows and budgets across various projects and across sites in India. MyCFO was required to monitor and raise red flags when there were deviations relating to project payments as compared to the budgets and also to strengthen controls to reduce invoicing, certification delays, speed up collections and to improve site level stock and accounting controls.
How the client benefitted
MyCFO team took over the responsibility as the ‘Cost Control’ function at Build Well. The MyCFO team interacted with the site – level costing, projects, accounting and stores teams to review, recommend and implement changes at the site level.
MyCFO’s involvement resulted in reduction of billing delays by 50% and resulted in lower billing delays. This also resulted in timely submission of MIS to the board, investors and the management.
VirtualRaceis a start up promoted by professionals who have held CXO level positions in the past. Virtualrace is a pedometer based, mass participation event conducted over 100 days. Virtualrace is backed by a Venture Capital Fund and it encourages activity and health in a fun and inclusive manner that complements hectic lifestyles.
Our MyCFO role
MyCFO plays the role of a full fledged CFO. MyCFO got involved at a pre – revenue stage to assist the promoters to monetize the business concept. Being a full blown CFO role, MyCFO also is involved in assisting the company in defining the key metrics to measure business performance, preparation of MIS, communication with the investors, negotiations with vendors, thinking through price points and customer profitability, involvement in getting the website operational, thinking through modes of distribution and logistics including tax, cash flow and profit impact and drafting employment letters and salary structures for new recruits.
How our client benefited
MyCFO’s role extends beyond the role that a full time CFO would have handled. Considering the range of activities that Virtualrace had to get done, MyCFO provided the client support on Commercial, Financial, Accounting and Operational support. We are a Business Partner, not a Service Provider. MyCFO also plays an active role in providing periodic reports (not just accounting) to the investors and promoters which has provided visibility into the business performance. Our involvement on negotiations has helped the company to reduce costs by 30%. The payback on MyCFO’s annual fees has been less than 3 months for Virtualrace.
Diagnostic Center is an ultramodern diagnostic centre with comprehensive facilities for Laboratory, Imaging investigations and other diagnostic facilities headquartered in Mumbai. Lifecare provides digital x-ray, digital imaging, mammography, bone densitometry, sonography, cardiac imaging, advanced dentistry, spirometry, eye check up amongst others.
MyCFO plays the role of a full fledged CFO for the Diagnostic Center which involves partnering the CEO to support the execution of Diagnostic Center’s Business Plan, implementing a high quality MIS on both the Finance and the operating side which involves defining, designing and tracking of KPI’s, providing visibility into financial and operating performance through visual dashboards to the CEO. MyCFO has also assisted the Center to implement best practices and process improvements through development of Standard Operating Procedures (SOP’s), implement performance measurement systems for the Finance team, streamlining working capital flows including setting credit controls, improve collection mechanisms from hospitals and monitoring cash flows through preparation of rolling cash flow forecasts. MyCFO also plays a commercial decision making role by being involved in equipment purchase decisions, opening of new centers and front ending discussions with existing and potential franchisees.
How the Client benefitted
MyCFO’s involvement helped Improve collections from 90 days to 30 days, resulted in cost savings of 20% in costs relating to re-agents and consumables, closure of non – profitable units based on unit level P&L and Break even point analysis, increased stickiness of clients through introduction of loyalty schemes based on our analysis on repeatability of clients, improved prices for certain tests buypto 30% based on accurate test level costing and improvement in sales efficiency by 10% through regular sales person performance tracking