03/26/2024
Know your numbers : Resilience, optimism, and perseverance!
I recall the sage motto of the proprietor of my beloved morning coffee spot (and Friday curry haunt) during Covid, "be the snail that emerges on the other side".
For me this highlighted his ethos of resilience, optimism, and perseverance. During this I observed how he focused on his unique selling proposition to survive in a suppressed market, drove productivity and customer service and kept costs and capacity in balance to enable him to launch at the next opportunity that has presented itself.
Four years later, I continue to see the need for this ethos:
1. Maintain a relevant value proposition,
2. Enhance teamwork and collaboration.
3. Ruthlessly eliminate waste.
4. Drive productivity and capacity.
5. Create the structures for scale.
As a seasoned financial and commercial professional, numbers I am encouraging clients to know more than ever in this season are:
1. What is your desired valuation target and what is the desired EBITDA to reach it.
2. How much capital is unnecessarily locked up in working capital.
3. What are the overhead and direct fixed cost per unit and what activities are driving those costs, and what capacity is there to scale.
Message me if you would like assistance to “Knowing these numbers” and navigate the complexities of the innovation and change that will present itself.
