# CFO Strategy Prover MCP > CFO Strategy Prover analyzes a business plan against five critical financial axes: unit economics, runway discipline, capital allocation, scenario forecasting, and risk mitigation. It forces the validation of every assumption—from LTV/CAC ratios to multi-bank treasury requirements—to detect fatal gaps in strategic planning. ## Overview - **Category:** finance - **Price:** Free - **Tags:** cfo, unit-economics, cac, ltv, runway, burn-rate, financial-strategy ## Description Building a strategy often means making assumptions. Financial models are notorious for ignoring what actually happens when things go wrong; they favor 'hockey stick' growth and assume infinite capital. This MCP changes that. It forces you to stress-test your plan against five specific financial rules, ensuring the numbers stand up under real pressure. Instead of simply presenting a single projected revenue number, this tool requires scenario modeling: Base, Downside, and Upside projections, each tied to measurable cost-cutting triggers. You prove that your unit economics are sound by justifying metrics like LTV/CAC ratios and payback periods with actual channels; you show how the business survives if fundraising stalls or cash burns faster than expected. The process compels a deep look at capital allocation—proving every dollar spent on R&D versus sales has an expected return, rather than just hiring aggressively before product-market fit is confirmed. It also demands meticulous risk management, requiring you to account for customer concentration and currency hedges. Connect this MCP through Vinkius, and your agent handles the hard work of financial rigor that most predictive models skip over. ## Tools ### validate_cfo_strategy Runs a full, multi-axis financial audit against a business plan to identify five types of strategic gaps. ## Prompt Examples **Prompt:** ``` Hockey stick growth, 90% margins, growth solves monetization, we can always raise, hire aggressively, conservative estimate of 15% monthly growth, no significant risks. ``` **Response:** ``` UNECONOMIC_MODEL — Five fatal gaps: J-curve fantasy, infinite runway assumption, premature scale, single-track forecast, risk denial. ``` **Prompt:** ``` CAC $340, LTV $4,200, LTV:CAC 12.4x, payback 2.8mo, gross margin 78%. Cash $2.4M, burn $120K/mo, runway 20mo. R&D 55%, Sales 30%, G&A 15%. Base $1.2M ARR, Downside $600K (freeze at month 9), Upside $2.1M. Concentration <15%, 3 banks, zero debt. ``` **Response:** ``` STRATEGY_PROVEN — Financial strategy validated. All five axes pass. Execute. ``` **Prompt:** ``` Revenue grew 40% YoY but operating cash flow declined 15%. Accounts receivable days increased from 45 to 72. Gross margin stable at 65%. What is happening? ``` **Response:** ``` Revenue-cash flow divergence signals collection problem. Growing revenue with deteriorating AR means selling to slow-paying customers. Tighten payment terms, implement early-payment discounts, and segment customers by payment reliability. ``` ## Capabilities ### Validate Unit Economics Checks if core business metrics, like LTV/CAC ratios and payback periods, meet industry-standard thresholds. ### Assess Operational Runway Determines the remaining operational time by calculating net burn rate and setting realistic fundraising triggers. ### Review Capital Spending Ensures that resource spending (R&D, Sales, G&A) is properly weighted against proven return on investment. ### Model Multiple Scenarios Generates structured forecasts across Base, Downside, and Upside paths, each with defined cost-cutting triggers. ### Mitigate Financial Risks Identifies exposure risks by checking customer concentration limits and treasury diversification requirements. ## Use Cases ### Pitching to Venture Capital A founder presents aggressive growth numbers that rely on 'hockey stick' margins. The agent runs `validate_cfo_strategy` and immediately fails the model due to an UNECONOMIC_MODEL, forcing the founder to revise LTV/CAC metrics before the meeting. ### Post-Merger Integration A company acquires a smaller firm. The team feeds both operational plans into the MCP. The tool flags CAPITAL_INEFFICIENT spending, noting that scaling headcount across two separate organizations without proving PMF first is costly. ### Q3 Planning Review The finance department inputs current cash burn and revenue forecasts. The agent detects a RUNWAY_HAZARD because the initial plan only accounted for 9 months of runway, not the necessary 12-18 month buffer. ### New Market Entry A sales team outlines a new revenue stream. The MCP immediately points out potential FINANCIAL_RISK_EXPOSED due to over-reliance on one large client, requiring treasury diversification and concentration reduction strategies. ## Benefits - Stop assuming infinite funding. The tool proves runway by calculating net burn, forcing you to set clear fundraising triggers instead of just stating 'we can always raise.' - Move beyond single-line projections. It builds scenario models (Base/Downside/Upside) and attaches cost-cutting triggers to each path, making your forecast actionable. - Prove ROI for every dollar spent. You must justify capital allocation—showing how R&D spending directly contributes to a measurable return threshold per channel. - Detect hidden market risks. The MCP flags potential issues like customer concentration exceeding 15% or lack of treasury diversification across multiple banks. - Confirm unit economics with hard data. It verifies if your LTV/CAC ratio exceeds 3x and if the payback period is achievable within a tight timeframe. ## How It Works The bottom line is that you get a non-negotiable financial stress test of any business model you feed it. 1. Provide the model's inputs, including current cash position, monthly burn rate figures, resource allocation splits (R&D vs. Sales), and projected revenue streams. 2. The MCP processes these numbers against five axes of financial discipline: unit economics, runway duration, capital ROI, scenario triggers, and risk mitigation rules. 3. You receive a structured verdict: either 'STRATEGY_PROVEN' with confirmation on all axes, or an explicit failure report identifying the fatal gaps in the plan. ## Frequently Asked Questions **How does the CFO Strategy Prover MCP work with cash flow?** It calculates net monthly burn rate against your current cash position to give a realistic runway duration, forcing you to plan for fundraising triggers instead of assuming infinite capital. **Does validate_cfo_strategy check my unit economics?** Yes. It specifically validates if your LTV/CAC ratio exceeds 3x and confirms that the payback period is under 18 months, requiring granular proof of margins. **What kind of forecasts can I run using CFO Strategy Prover?** You model full scenario sets: Base (most likely), Downside (pessimistic with specific degradation), and Upside (optimistic with specific accelerator). Each path must include cost-cutting triggers. **Can validate_cfo_strategy check for financial risk?** It checks critical risks, including customer concentration (limiting single clients to <15% of revenue) and whether your treasury is diversified across multiple banks. **When running validate_cfo_strategy, what does it mean if I receive a failure code?** A failure code means your financial plan has an unmitigated gap. The tool doesn't just suggest problems; it points to which of the five core axes (like RUNWAY_HAZARD) failed. You must treat these findings as mandatory remediation steps, not optional suggestions. **How do I best prepare data for validate_cfo_strategy?** The tool needs a single prompt containing hard metrics and ratios. Don't describe concepts; provide specific numbers like CAC ($340), LTV ($4,200), current cash balance, and burn rate in the same input. Specificity is key for accurate validation. **Can validate_cfo_strategy analyze historical performance trends?** No, this MCP validates a single, cohesive financial plan or model snapshot. It stresses-tests current projections and resource allocations against established financial rules. Provide the data you are trying to prove right now. **What is the required input format for optimizing capital allocation in validate_cfo_strategy?** You must specify R&D, Sales/Marketing, and G&A spending as percentages of your budget. The tool evaluates if that specific split justifies its expected return (ROI) relative to achieving product-market fit. **Why does it reject 'growth solves everything'?** Scale is a multiplier of unit economics — if they are negative, growth makes losses worse. First prove: LTV:CAC >3x, payback 60%. Then scale. **Why is 'we can always raise' rejected?** Venture capital is not a business model. Runway is measured in months, not hope. Calculate net monthly burn, months of runway (>12-18), and set a fundraising trigger at 9 months remaining. **What is FORECAST_BOILERPLATE?** A single-line deterministic projection — 'we expect 15% monthly growth.' Model Base, Downside, and Upside scenarios with cost-cutting triggers. Every forecast needs a kill switch.