Some are too eager to get things going or too eager to expand, which will lead too many frustration, wastage and even worst “failure”.
Through more than 20 years’ experience working with business owners, empirical evidence shows that the strategic and financial road map” based holistic sustainable growth methodology works very well in profit, cash flow and business value improvement for business owners.
The methodology provides a clear focus for business direction and actions, no more wasteful, ineffective trial and error approaches.
This business paradigm is about quality and creativity of our thought and spending time exploring possibilities for a new/enhanced business model, which will drive profit improvement, cash flow improvement and business sustainability and/or growth, as well as planning for business exit.
Explore opportunities, understand your strengths and be mindful of risks and weaknesses. Get your business model right!
• Know your market positioning.
• Know your customers.
• Understand why people should come to you or buy from you.
• Know how to be competitive and remain competitive.
• Ascertain profitable and sustainable growth strategy.
By exploring opportunities and being creative in your business solutions, business owners are able to transform/improve their business exponentially and most importantly being a sustainable business of today and tomorrow.
A mere two to three per cent growth is only at par with inflation and worst still if it has a negative impact on your cash flow you might eventually just like a Titanic hitting an iceberg and sink.
A clear growth strategy is only useful once you can quantify the strategy into a budget showing the immediate 12-month likely results in term of revenues, margins, overheads and, very importantly, profits and cash flow as well as three years projection of the same.
As a business owner it is only worthwhile to focus on and pursue the established growth strategy if it will earn you profits with manageable cash flow and an increase in business value.
Budget is critical as a tool to manage your business, comparing actual versus budget and understanding why they differ, and, most importantly, to formulate corrective actions that improve the business.
Future financials and 7 key business drivers.
To target a better profit, a better cash flow or a better cash position, one of the effective tool to use is “What if” analysis or future financials, where you know the current business position and want to target a future (better) business position.
The future financials identifies the desired goals in your business, and then shows how to fix it by focusing on seven key business drivers (price, volume, margin, overheads, inventory, accounts receivable, accounts payables).
Using an appropriate powerful software tool and with the right knowledge, an enormous benefit can be gained in the analyses of the possible alternatives, quantifying them, as well as in choosing the most appropriate steps/actions to focus on.
It can change the situation of a business owner from: "What do I have to do to get to the desired next step?" to "Now there is no doubt what I have to focus on to get to the desired outcomes!"
Contact Eric at erict@cadpartnerts.biz.
