“There’s a very big difference between not having learned to do something and being incapable.” – Ken Robinson
So, let’s learn enough to be capable and make more informed decisions.
Mentally snag a box … a shoe box, or perhaps a hat box. In that box is some money. Money used to open banking accounts for the company that’s quick and easy access. When a client pays for product, money goes in. When expenses (website, marketing, people, space, etc.) are paid, money goes out. The goal is to have enough money leftover in the account for future needs after paying for everything, including yourself.
Now mentally picture a banker, a capital investment partner and a person from each organization with whom the company works. Loans, investors, factoring debt, owning real estate, using credit … all these activities leverage money. There are always tangible and intangible costs associated with finding money for the business. And while the funding could go into the box example above, typically there are different approaches to maximizing how this financing works for a business.
Every day there are new ways to raise money for a company, including product preselling, crowdfunding and strategic partnerships. Many more examples become apparent from examining the opportunities that occur within the company itself; in the industry (and complimentary industries); and existing and potential customers.
Companies, and people delivering the product, want value for a reasonable cost.
Company employees want to be valued both as individuals and for the skills they possess. More importantly, people want to belong to something they are excited to work on.
A big part of finance planning revolves around company culture, and the “hows” of product delivery and customer support. This includes strong strategies (Principle 5: Quality Driven Strategies) and a leadership who believes in and takes action supporting those tactics (Principle 1: Lead Vivaciously). In fact, there are tied to all Six (Infusion) Principles of Business.
While that’s all necessary, companies are still continually evolving, growing and changing with people, market trends and macroeconomic changes. Therefore, having a foundation for understanding what “Finance Plan Ingenuity” means for your position within a company – right now – matters. A lot.
The term “bootstrapping” means different things to different people. For the purposes of this article, employ this definition: using resources to obtain the biggest possible impact will immediately and directly support longer term company initiatives.
- Tangible things – to pay their bills, put food on the table, have access to reliable transportation, and to see results of their work.
- Intangible things – what makes working feel good, and one’s job easier. For example, supporting a cause, flexibility around family, getting the small things done (cleaning, car washes, eating healthy, exercising) … even, simply, to belong.
Companies want to:
- Attract and retain people with belief in the vision and mission, and the personality and skills to carry both out.
- Deliver the product sold with a profit to cover expenses and invest in future positioning.
- Build a culture that creates connection and promotes contribution, commitment.
- Demonstrate, through every person, what the company stands for and does.
- Tap into the full potential of products and related services.
- Keep costs down (a strategy important to future growth, current positioning and creating value).
- Evaluate and change processes to increase efficiency and satisfaction (of customers and team members).
- Creatively raise profits, without using external sources.
- Minimize debt.
How do the wants of the company and its employees align?
By asking for, and listening to ideas. Creativity exists everywhere, and each person has a different perspective along with the desire to improve what they believe in.
Create a model of due diligence for every project to keep an eye on expenses, make purchases carefully and bring in revenue.
Evaluate ideas that do not fit the existing technology (an idea may create wins in many areas).
Finance Plan Ingenuity evaluates, documents and reports a company’s performance and impact – in short, assessing the health of the company. Providing guidelines and governance for projects that propel products forward to best serve customers, Finance Plan Ingenuity watches trends inside and outside the company and industry to measure opportunities and threats to future success.
Money DOES matter … and becoming aware of, understanding and actively contributing builds value within the company.
Recognize, grow and explain the value, opportunity and possibility. These actions serve to add a sense of control and confidence when communicating ideas (because every idea contains a monetary element).
Commence bootstrapping and monetize those concepts … and read more to maximize your efforts!
Visit the Finance Plan Ingenuity section of the Infusion Principle blog regularly for articles on knowing the worth of your company – and your workers – to nurture and develop all product/sale prospects.
Let’s meet: find out more about Jess Dewell and the Infusion Principle team.