The order is important here.
Knowing and understanding the importance of each of these, and being able to apply them will be critical in helping you navigate the growth journey.
- Mindset: Foster a forward-thinking and problem-solving mindset. Make clear decisions, prioritise challenges, and a clear bias towards action. You can course correct as you go.
- Strategy: what separates you from the rest? It could be your innovative positioning, your network, deep knowledge of a niche, or your productised delivery model. It’s hard to be the best in all areas, so know the game you are playing and play to win.
- Marketing and Sales: Develop a strategy to reach your target audience, communicate value, and drive revenue growth. Build a feedback loop to continuously understand your audience and adjust your offerings accordingly.
- Profitability: Ensure your profit margins are optimised before you scale. Find the right balance between product-market fit, efficient delivery, and pricing that generates leftover cash for growth.
- Team: Hire and develop talented humans who align with your business values. Have a framework to guide your hires to ensure quality control and you don’t just hire on feel. Warren Buffet looks for the three I’s: Integrity, Intelligence, Initiative.
- Revenue: Aim for consistent month-on-month growth while maintaining a healthy cash flow. Find the right pace that fuels business growth without straining your finances.
- Cash Management & Forecasting: Maintain sufficient working capital (2 months of Operating Expenses) to sustain business operations. Focus on forecasting and managing cash flow to navigate cash crunches and support growth.
- Build Lasting Value: When buying a business purchasers look for consistent, risk-free, future cash flows. Create a cash generating business that can operate independently of your direct involvement.
