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Hire a CFO Call us 1300 447 740

Tag: the cfo centre

How To Achieve Revenue Growth x 10 – And Survive Scale Up

by lauramills
How To Achieve Revenue Growth x 10 – And Survive Scale Up

Revenue Growth

When it comes to revenue growth, our Chairman Colin Mills says the best advice he ever received for doubling the size of a business starts with making a list. 

  1. List the top 20 actions that could increase your revenue x 10 
  1. Identify the top 3 options  
  1. Concentrate on those 3 for the next year 

 So let’s say you’re a $4million business. Spend a few hours listing out the 20 things you could do to turn this into a $40million business over the next 12 months. This will force you to think outside the box and away from small incremental changes you can make. 

I suggest you then spend another hour or so considering the Top 3 activities. These will be the activities that are most likely to get you towards your goal of $40m. 

You then have the top 3 activities to focus on over the next 12 months that may well enable you to double your turnover. 

For each of those top 3 activities, develop clear action plans on how you are going to achieve results. 

That, he says, is how you achieve significant growth – if you set out clear, realistic plans for each of your top three, working with your management team. And make sure you identify and mitigate any risks.  

But scaling up brings its own challenges 

It’s great seeing your revenue rise but fast growth sometimes gives you growing pains. We wrote a blog about the 6 basics you need to have sorted to grow a company successfully, which are: 

  1. A clear, well-thought-out vision shared with everyone  
  2. Goals that translate into growth strategies 
  3. Top-performing talent, either employees or outsourced 
  4. Systems for attracting and retaining good clients 
  5. An understanding of the hazards when you scale too fast 
  6. A strong focus! Backed by objective advice from an expert 

 A part-time CFO might well be that expert for you. We helped Bellrock Broking identify their key success factors and get everyone on the same page, feeling motivated to achieve those objectives. 

 As Managing Director Mark Chiarella told us in his video testimonial “I feel organised and [confident] that the priorities of the business are in order.” 


Not to forget, the 2 Cs! 

 On top of those 6 basics, there are two more we need to mention. 

 Your company’s capability and capacity to deal with revenue growth. 

 If workloads go up, orders go up and costs go up, will your business systems, technology, infrastructure and people cope? Can you still deliver on time? Will performance suffer? This blog goes into more detail. 

 It’s likely you’ll need to do some planning and organise some funding to get your ducks in a row. Our client, music reporting specialists Soundmouse, had a serious growth spurt over one year. One of our CFOs helped them raise money so they could be more comfortable in that rapid growth.  

 “Knowing the numbers helps everything. It builds confidence, happiness – and as a result, more money,” says Soundmouse founder Kirk Zavieh. 

 That’s a lot to take in. 

 You’re right, it is a lot. And it requires some objective thinking. 

 One of the toughest challenges for owners of SMEs especially is to be able to stand back, look at your business through a wide-angle lens and identify what it is you really have. Especially when you’re being distracted by the day-to-day of your business.  

 That’s why there’s real benefit in using a qualified CFO as a sounding board, whether they’re an internal hire or a part-time resource from CFO Centre. They can help you make better decisions, take advantage of golden opportunities – and turn revenue growth dreams into plans. 

 Contact The CFO Centre about a free 60-minute discovery session. Or head to the website for more tips.  

 

Image from Venteezy.com <a href=”https://www.vecteezy.com/free-photos”>Free Stock photos by Vecteezy</a>

Unveiling the Cash Flow Conundrum: Insights from our Business Survey

by lauramills
Unveiling the Cash Flow Conundrum: Insights from our Business Survey

Cash flow, the lifeblood of any business, often serves as a barometer for its financial health and stability. In a recent business survey, we asked participants to assess the state of their cash flow, and the results shed light on the diverse experiences and concerns faced by entrepreneurs. Let’s delve into the data and explore the implications it holds for businesses of all sizes. 

Analysis of the Results 

The majority of respondents (56%) reported having mostly healthy cash flow. This is undoubtedly encouraging, suggesting a level of stability and financial robustness within these businesses. However, it is crucial not to become complacent, as maintaining healthy cash flow requires ongoing attention and proactive management. 

Interestingly, the responses were equally divided between those who considered their cash flow a concern and those who perceived it as healthy (both at 19%). This result reveals the challenges faced by businesses, where even seemingly successful ventures can experience occasional cash flow hurdles. It highlights the importance of adopting effective strategies to safeguard against potential disruptions and maintain financial resilience. 

Furthermore, 6% reported that cash flow was always a concern. Although this percentage may seem relatively small, it represents a significant portion of entrepreneurs whose businesses are perpetually grappling with cash flow issues. Understanding the underlying causes behind this persistent concern will enable us to address them more effectively and provide valuable guidance to those in need. 

Cash Flow Insights and Recommendations 

  1. Cash Flow Management – Regardless of the current state of your cash flow, it is essential to adopt robust financial management practices. Regularly reviewing your cash flow statement, forecasting potential gaps, and implementing strategies to improve collections and manage expenses can help you navigate through turbulent times.
  2. Diversify Revenue Streams – Relying heavily on a single source of income can leave your cash flow vulnerable. Explore opportunities to diversify your revenue streams, expanding your client base or offering complementary products or services. This will help mitigate the impact of any fluctuations in demand or payment delays.
  3. Seek Expert Advice – Engaging with financial professionals or consulting firms, such as The CFO Centre, can provide you with the expertise required to optimise your cash flow management. Their insights and experience can help identify areas for improvement and tailor strategies to suit your specific business needs. Find out How it Works.

Cash flow is a critical aspect of any business, and the responses from our business survey highlights the diverse experiences and concerns faced by entrepreneurs. Whether your cash flow is mostly healthy, sometimes a concern, or always a concern, it is crucial to proactively manage and optimise your financial position. We encourage you to take our Scale-up & Exit Business Assessment to gain personalised insights into your business’s financial health and uncover tailored strategies to enhance your cash flow management. 

Take the survey now and unlock a wealth of knowledge to propel your business towards financial prosperity. 
[Disclaimer: The results mentioned in this blog post are based on a specific business survey conducted by our organisation and may not represent the overall business landscape. The recommendations provided are general in nature and should be adapted to suit individual business circumstances.]