101. Why “Quad” does not have to be a 4-Letter word

We work with loads of small businesses and we are regularly called on to explain what the numbers actually mean to the people running them. We tend to find that the focus is usually only on one part of the picture – growing sales volume – frequently coupled with cutting costs.

But that focus tends to mean a relentless, and some might say pathological, attention to only one of the 7 key drivers (we call them levers) to the exclusion of the other 6.

The 7 levers/drivers of almost every business are:

  1. Price
  1. Debtor days/receivables
  1. Volume
  1. Stock days/WIP
  1. Cost of Goods Sold (COGS)
  1. Creditor days/payables
  1. Overheads

But there is so much more colour that is needed to fully understand what is going on, and thus enable you to focus on doing the things that really matter.

Tectona simplifies the complicated

  • By enabling you to understand the “DNA” of your business and thus make informed decisions
  • By showing you how to improve your profit, cash flow and business value
  • By giving you the tools to embed the culture of a quarterly “tune up” in to your business
  • By enabling you to share your financial story with non-financial people

As a by-product, we reduce risk, focus you on the key things and help you understand the effect on the sale value of your business.

What you will get:

  • The single thing you can do now to change things for the better
  • See the compound effect of making small changes to the key drivers in your business
  • See your business as something you can tweak to generate more cash and shareholder value
  • A regular system (quarterly works great) for tuning up your business

If this resonates with you please contact Mark Nicholls at Tectona.

Posted in Tectona Ten - Improving Profitability.