The four keys to maximising valuation - Cash

September 15, 2022 Neale Lewis

Achieving a 10x advantage that addresses a widespread internal issue in the industry is also key to bringing stability to growth. Your valuation will be much greater if you’ve had consistent growth in revenue, profitability and, especially, gross margin pounds, than if your growth has been erratic. Disciplined and steady performance, which the tools/techniques of Scaling Up help to provide, proves the company can create and deliver consistent results in a chaotic environment.

Having the discipline of regularly reviewing your numbers and ensuring that you team are financially literate is a powerful way to ensure that you and your team stay utterly focused around the financial performance of your organisation.  We encourage our clients to use the Cashflow Story software. This tool makes it simple to understand how your business is performing and brings real rigour to the visibility of your numbers.

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The Power of One shows you the impact that a 1% or 1-day improvement in the 7 critical levers your business has on Profit and Cash Flow.

  • Price
  • Volume
  • COGS/Direct Costs
  • Overheads
  • Receivables
  • Inventory
  • Payables

The Cashflow Story tool also has a Business Valuation facility.

Every business has an ideal target valuation. Cash Flow Story identifies your Business Value Gap and then shows you how your Power of One impacts this to close the gap.

Coupled with regular Power of One meetings, you will see your business valuation continuously improve.

 Is your growth rate consistent and lacking drama? Demonstrate you have control of your business, even in periods of economic chaos, and your valuation will soar.

To find out more about how the benefits of the Cashflow Story software and have a complimentary licence please contact us to set up a demonstration .

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