Measure results, and determine what’s working and what’s not
The Challenge
Great accounting systems always generate valuable data. For fast growing companies, flying by the seat of your pants is a dangerous way to operate. Are you taking your data, which is automatically generated for you, and analyzing it?
Jamie Dimon, CEO of JPMorgan Chase Bank says: great management is disciplined and rigorous. Facts, analysis, detail…facts, analysis, detail…repeat.
The Solution
At VentureCFO, one of our clients is growing in leaps and bounds with revenue growth of 5x in year 2 and on target for 3x revenue growth in year 3. In year 3, we re-configured the budget three times within a 6-month period. Why, so often? That’s because the company’s advisory board unanimously suggested that the company keep investing in revenue growth. Here’s the critical reason why the board suggested faster growth, and don’t miss this: each revised budget revealed sustainable healthy margins, and thus sustainable positive cash flow. Hence, the board concluded that the company needs to grab more and more of the untapped market now, rather, than later.