The Growth Cycle
At Grow CFO we use a concept we call the Growth Cycle to explain why and how we do what we do, what benefits and results it creates for our clients and the impact we can create together.
Our cycle starts at the very core of the vision of the business owner and culminates in us setting goals and strategies to create focus for the business owner, their advisors and their team. Focus gets the team working together to grow the business. “Where the focus goes the energy flows”. (Tony Robbins)
We then ensure there is a sound cash management plan in place. Poor cash flow hijacks the amygdala activating a fight-or-flight response. This means the business owner is driven by self-preservation. This is a reactive response and doesn’t form the basis of a sound strategic plan. Instead, we need to create a proactive, strategic approach to management. This is why many of our clients have experienced a Cash Flow Strategy Session with us prior to commencing a longer term engagement. We are showing them what needs to change and how it can be changed by focussing on the right actions in the correct order.
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Once the cash flow is under control, the business can grow sustainably. This means the working capital required is flowing into the business before or as it is required for the efficient operations of the business without having to inject owner funds into the business.
The next aspect we look at is improving Profitability. It is during this phase of our engagements that we review each of the expenses of the business and ensure they are fulfilling one or more of three main criteria:
It is directly required for generating revenue;
it is directly required to ensure team success;
it is contributing to the investment in growth.
Once profitability is improved, we are able to grow the business without growing the problems. This can often happen in conjunction with financial reporting which provides greater visibility and transparency over the key performance indicators of the business and enables the business owner, managers and team to directly monitor their own performances.
With greater visibility comes the ability to focus on new revenue streams or improved revenue models. Testing and measuring the results prior to commencing new strategies is often a huge financial and time saving for the business. These improved revenue models attract new customers and provide the structure to hire more team hence it elevates the engagement of the business.
With greater engagement comes the necessity for improved systems and processes to manage the growth and to permit the business to get set to scale.
Scaling enables the business to make a positive impact on the triple bottom line, that is, a positive impact on people - those who work in and on the business, the clients, the suppliers and those in their communities. A business which is also making impacts by donating to worthy causes is also expanding its reach to people across the globe and for generations to come. It is making a positive impact on the profits of the business enabling future sustained success as the business adapts to its ever-changing environment. And the business is poised to make a positive impact on the planet by using resources more efficiency and effectively and, in the case of a business driven by sustainability, a real and tangible impact on the planet creating a cycle of sustainable growth for now and into the future.
At Grow CFO, our unique approach is articulated through what we call the Growth Cycle. This concept encapsulates the essence of our operations—starting from the fundamental vision of a business owner and extending through a series of strategic steps that lead to substantial and sustainable business growth. This process doesn’t just aim for short-term results; it crafts a legacy of lasting impact.
The journey begins by setting clear goals and strategies. This creates focus, rallying the entire team around shared objectives that propel the business forward. As Tony Robbins aptly put it, “Where the focus goes, the energy flows.” This collective energy is crucial for driving growth and fostering a cohesive team environment.
Next, we prioritize sound cash management. Mismanaged cash flow can trigger a fight-or-flight response, a survival mode that detracts from strategic thinking. That’s why we guide our clients through Cash Flow Strategy Sessions, offering them a proactive framework to manage their finances effectively, ensuring that they are not just reacting to circumstances but actively shaping their financial future.
Once financial stability is achieved, the foundation for sustainability is set, allowing the business to expand without constant capital injections from the owners. This stage prepares the business for the next critical phase: profit improvement. Here, we scrutinize every expense, ensuring that each is justified either as a direct revenue generator, a team enhancer, or a growth investment.
With profitability on the rise, we shift our focus to financial reporting. Improved transparency and visibility of key performance indicators allow everyone within the organization to track and optimize their contributions.
This heightened clarity leads us to refine the revenue model. By experimenting with and evaluating new strategies, we can uncover more efficient and lucrative ways to attract and retain customers, setting the stage for further team expansion and increased engagement.
Higher engagement necessitates robust systems and processes to support and manage growth effectively. These systems are not just about maintaining control but enabling scalability. Scaling the business responsibly allows us to amplify our impact on the triple bottom line: benefiting people, generating more profit, and protecting the planet. Our model ensures that growth is not only economically sustainable but also broadens our impact on the community and the environment, reinforcing a cycle of prosperity that extends well beyond our immediate reach.
This Growth Cycle at Grow CFO is more than a business model—it's a blueprint for making a profound difference in the world, one business at a time.
