The Secret to Business Growth Is Building Up Financial Strength | Greg Crabtree

When it comes to your business’ profitability and growth, it’s important to know if you’re looking at the right measures or even the right benchmarks. It’s not found in the tax returns or in traditional accounting principles where profit runs the risk of being overstated or understated. Measuring the actual health of your business entails looking at your number you might not be familiar with like, core capital target, your reinvestment in the initial capital, your direct and management labor, and productivity measures, among others. Today, speaker, author, and entrepreneur, Greg Crabtree joins me on the show to break down some elite financial savvy for entrepreneurs from his widely acclaimed Simple Numbers books. 

10:31 How the best companies grew in 2020

15:50 Using debt versus your own re-investment in growing the company

17:50 Greg talks about setting the right amount of cash to be used as your core capital target

20:58 The five-step process of protecting your business’ money

29:00 Return of invested capital is a crucial measure to determine the health of the business

30:10 Greg shares some insights on how entrepreneurs can measure effectiveness in optimizing their launch capital 

46:26 The effectiveness of your management labor is the one secret to profitability

54:17 Data of productivity measure is a telltale indicator of profitability 

57:28 Greg is a firm believer of how marketing must precede sales

1:10:11 A wrap up of key principles to remember: figure out what the market needs, find a way to do it profitably, and understand that return of investment capital

1:14:10 Greg’s passionate plea to entrepreneurs

“Understand what health in full capitalization looks like for the business.”

GET IN TOUCH:

MARK LEARY: 
www.linkedin.com/in/markhleary
www.leary.cc

GREG CRABTREE: 
https://www.linkedin.com/in/greg-crabtree-baa338/
https://simplenumbers.me/