Time to Learn About Money
We’re going to do something a bit different in this email. We are going to review the role of money in the Business Success Formula via text rather than video.
Money was not actually a category in the earlier iterations of the formula, until I realized it needed to be. Without a good grip on how your business receives and spends money you are operating in the dark. Reviewing (and reacting to) your financial data on a regular basis helps you mitigate issues and scale with ease.
Your company may have received a certain level of success by repeatedly doing the same things—and doing them well. But if you’re wanting to scale, the same methods and processes aren’t going to work. Changing the way you handle your finances is essential for scaling. Some companies default to thinking they need a big infusion of cash. But more money is only part of the equation. Borrowing money may solve your cash flow issues for the short term, but it brings other issues with it. You have to be careful to not pile up debt. You need to understand the principles of cash flow, and you need to be creative with ways to improve your cash flow while scaling your company.
There are over 140 questions that comprises the Business Success Formula, and less than a dozen are relating to money. However, it is still a crucial part to understand in order to proactively scale.
For the purpose of this abbreviated exercise, you aren’t going to rank yourself for any questions about money, but rather, i would like you to ask yourself the following:
Do you consistently review 12-month cash flow projections with our team?
Are you using forecasts to drive budget allocations?
Do you know how to measure sales growth as a metric? (it is a crucial KPI to determine
financial projections for growth and business decisions.)
If you answered no to any of the above, then you have a real opportunity to improve your company just be implementing at least one of them.
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Want Mike to come to your company (in person or virtual) to go through the Business Success Formula with your team? Then contact his team now.