I was SO thrilled that we were able to bring Greg Crabtree back to the Philly area in September for our inaugural CEO Think Tank® live stream event.
Greg and I met about a decade ago when his first book, Simple Numbers came out. He graciously came to Philly back then to talk with our community about terms like the Four Forces of Cash Flow, LER and Salary Caps 😊 as well as work with several of our clients.
Over the years his curriculum has become a foundational item of our Scaling Up Work with clients, and with recent events, a mandatory ingredient.
It’s because of his emphasis on best practices such as having a Core Capital account (not just a Line of Credit) and paying yourself for the job that you do (not just as an owner) that our clients have made it through the last year – and are able to plan for 2021 – and for that I’m truly grateful.
Here’s just some of my key takeaways from his presentation – that all enlightened leaders should hold near and dear.
And – if you’d like to hear the full talk, reach out to us and we can send you a copy.
- For each entrepreneur, it’s really about smart scaling. Know your value play – Run to Harvest, Harvest til Premium or Build to Sell – and grow it accordingly.
- Bad companies are destroyed by crisis. Good companies survive them. Great companies are improved by them.
- A fully capitalized (HINT: robust) business has at least two months of Operating Capital and zero dollars drawn on the Line of Credit.
- A LOC is NOT a Core Capital Account. Don’t fool yourself into thinking that your Line of Credit (LOC) is your Core Capital account. There hasn’t been a LOC issued in the last 30 years that hasn’t had an immediate “call” provision.
- Understand and leverage the three “Simple Rules” of business success:
- Figure out what the market “needs”
- Find a way to do it profitably
- From the capital required, does the profit provide a minimum Return on Invested Capital (ROIC)?
Intrigued and inspired to learn more? Greg’s new book, Simple Numbers 2.0 is coming out this month!
And if you’d like to hear more, reach out and we’ll send you the recording.
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on Tuesday, October 6th
on Tuesday, November 3rd
Tags: Business advice for the mid-market, Executive Education for Small Business, Executive Roundtables