When you think about your financial security in the future.
Some questions to guide you:
- What capital do you need and how will you access it?
- What is your appetite for risk?
- What are your thoughts on future ownership?
- Are you looking to sell, float or handover?
- What sort of financial return do you want?
- Do you want ownership when you are no longer working in the business?
Example
- We are financially secure:
- we have over 12 months of working capital in reserve
- we have a healthy cashflow with over 80% of our income coming from recurring income
- our net profit before tax is a healthy 18%
- The business is able to give the owners a fair return on their capital and risk.
- Our ‘Shared Benefits Scheme’ ensures that all team members share in our success.
(Note: include a lot more detail in your answers!)
Align Ownership & Vision Dialog: Economic Engine