- On July 1, 2019
If you’re going to grow your company in the right way, pinning down your goals and having a clear vision for the business from the outset is vital.
You may want to increase profits and create an income that supports your lifestyle, or you are looking to increase market share and aim for hypergrowth. You may even be aiming to increase the overall value of the company to get the best return when exiting the business.
So, how do you define the goal that’s right for you?
Driving your performance over time
Your financial model will drive the way you generate value, so it’s important to make your business strategy fit the goals and type of growth you want to attain.
To set your finances up in an optimum way, you must:
- Know what you want to achieve with the business – decide if you’re aiming for lifestyle, hypergrowth or return on investment and make this your key business goal.
- Align your personal goals with the business – so your finances can be set-up to deliver the cash you need, with the best return and the most effective tax liability.
- Track and measure your performance using Financial Ratios – allowing you to see how you’re progressing against your goal, and provide a scorecard to drive your ongoing business strategy.