I just received a marketing email from Traffic and Funnels that said:
“As a business owner, you have to master growth.
I’m not just talking about debt here.
I’m talking: Cash - debt - equity - assets. All forms of growth.
So here’s the deal…
Not seeking equity... is not seeking growth.
Being afraid of debt... is being terrified of growth.
Worrying about cash... is literally defying your growth.”
It went on to talk about your perception of money and the image you project if you think it is a scarce resource. It was an interesting email.
Likely your money advise should come from a Finance Leader and not a Marketer but there’s some truth to what is being said here. They do a good job in their messaging and so far their memos are a great use of my time so I do recommend them: https://www.trafficandfunnels.net/memos-3/
This particular memo reminded me of one of my favourite topics: growth and revenue and the modern CFO
Thirty minutes spent on revenue can have an exponential impact on growth. Or more specifically 30 minutes spent finding $30 of revenue will have a larger impact versus that same 30 minutes spent on costs.
While reducing costs has merit there’s a pretty obvious hierarchy. If you have a Finance Leader who spends all their time on cost that is a choice and not necessarily a wise one. Similarly if you have a Finance Leader who spends their business partnering and strategy time focused only on cost, you’ve also got an issue.
Cost matters and it isn’t back and white. Time needs to be spent on both cost and revenue. Often a modern CFO supports the business' focus on revenue and coaches the finance team to pay attention to costs. They are pulled in both directions and balancing both.
But if you have to prioritize, the choice is clear and the studies support it: companies that focus on revenue, not cost, grow quicker and stay healthy longer.
You don’t need a study to get this. It is common sense. If you spend thirty minutes growing revenue you’ve either (1) secured a new customer (2) expanded your reach to an existing customer (3) broadened your market share or other such great things. And guess what? A new customer and a “stickier” customer becomes a repeat customer so they might spend $30 based on this 30 minute effort but chances are another $30 in revenue is around the corner with minimal or no additional time spent. A repeat customer and a "stickier" customer is also likely to refer and recommend you, so another $30 could flow your direction as a result of that same 30 minutes.
Meanwhile 30 minutes on cost that saves $30, saves $30.
Pretty clear I’d say.
Contact us to learn more about #financeleaders, #businessadvisors that focus on growth and use the modern CFO methods. We might be a little different than your typical number counter!
Modern CFO series includes:
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