The Power of Small Change!

We know good cash and profitability management and planning is a weakness of many businesses trying to grow and scale. All of us will have reasonable approaches to cash management that have got us to where we are without going bust along the way!

However, just like with the Business Rhythm most of us have developed what is essentially a tactical/ reactive approach to cash management. 

If we are serious about creating the kind of business we want then we need to take a more proactive approach and make cash/ profitability improvements a 'habit' of the business. 

So one small but giant step you can take is to ensure that you include a cash improvement initiative or two in your 90-Day priorities – so make time in the planning session to brainstorm ideas.

Hence the idea of using the Cash Conversion Cycle tool and the 7 Financial Levers in our 90-Day planning to help us to brainstorm and identify cash improvement initiatives.

A focus on these combined with the cash strategies earlier will pay dividends in both short and longer-term cash flow. And don’t think you necessarily need to make huge changes – a small percentage change in each will make a major change in profitability and cash when combined.

We often refer to this as the ‘Power of Small Change’ – Verne Harnish and the Gazelles call it ‘The Power of One’ referring to making a 1% change. 

We will be covering this very topic at this month's ScaleUp Club on Tuesday 13th April at 8.45 am. I will be giving examples of how both templates can be used to help your business, plus you will receive our FREE eBook ‘The Power of Small Change! 

If you would like additional information on our monthly ScaleUp Club let me know in the comments and we will be in touch. ScaleUp sessions explore the themes from within the pillars of Strategy, People, Execution, and Cash and are aimed at gaining freedom and control – escaping the owner’s trap – and providing the tools to ScaleUp successfully and to navigate the ‘Valleys of Death’ along the way.

The focus is on collaborative working with peers, addressing issues and opportunities, and coming away with key take-aways/actions that can be implemented.