3 THINGS YOU MUST DO BEFORE APPLYING FOR BUSINESS FINANCE Funding and Business Growth Playbook T: 0330 350 3356 @: hello@GrowingYourNumbers.com www: growingyournumbers.com
To recap, there are 7, or depending on how you count them th ere could be as many as 10 different ‘levers you could pull’ to achieve growth or to improve cash flow, so let’s recap:
There are three cash flow drivers and 6 growth drivers, or 7 if you track New Customer Acquisition as Lead Generation x Conversion Rate:
Cash Flow Drivers:
1. Debtor Days 2. Creditor Days 3. Stock / Work in Progress
Business Growth Drivers:
1. Overheads or the fixed cost ratio 2. Gross Profit Margin 3. New Customer Acquisition, which is made up of: Leads generated x The conversion rate of leads to customers 4. Customer Retention, (or Customer Attrition) 5. Average Transaction Value 6. Average Transaction Frequency
What Next?
Knowing how to improve the Business Growth and Cash Flow Drivers is all well and good but you need a plan.
Funding and Business Growth Playbook ^N0 V1.1 (GYN FO).docx | Confidential
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