Old Hat New Tricks
Old Hat or New Tricks?
I’ve recently been thinking about some classic principles that were around back in the day when I was training and wondering which ‘rules’ haven’t gone out of style and which might need a bit of a makeover.
Here’s a few that come to mind:
✉️Planning on the Back of an Envelope:
I’ve always thought that if a plan didn’t work on the back of an envelope, it’s unlikely to work in the more detailed mapping out and planning stage.
From a financial perspective, one rule of thumb tip I use is that a business will need around £100k of Revenue per employee – so roughly if you have 7 full time employees, you’d be looking for around £700k turnover. Clearly different industries will have different benchmarks, but it’s not a bad estimate. But is this still valid?
Back of an envelope thought for the day – work with us and get access to ALL of the finance skillsets you need for LESS than the cost of ONE strong Finance Manager or a newly qualified accountant.
💰 Cash Is King vs 🌍 Purpose Over Profit
Once upon a time, the mantra “Cash is King” ruled. And let’s be honest - it still holds court. Without healthy cash flow, even the most promising business ideas can grind to a halt. For growth-stage businesses, managing working capital, forecasting, and keeping a close eye on the bank balance is non-negotiable.
But here’s the twist: today’s business leaders aren’t just chasing profit - they’re chasing purpose. Customers, employees, and even investors are increasingly drawn to companies that stand for something beyond the bottom line. Whether it’s sustainability, community impact, or ethical sourcing, purpose is no longer a “nice to have”- it’s a strategic asset.
So, how do we reconcile the two?
Purpose without profit is philanthropy. Profit without purpose is just profit. The sweet spot lies in building a business model where purpose drives performance. Think of it as a flywheel: a clear mission attracts loyal customers and motivated teams, which in turn fuels growth and yes, cash flow.
Have you ever had to choose between a profitable decision and a purposeful one?
My first choice would be to have both, because without profit, your business won’t survive long term, and without purpose, the motivation seems a bit hollow.
I would never choose profitability above my values, and above doing the right thing, however I would choose a one-off lossmaking course of action if it was short term and aligned with our purpose.
⚖️ Choose Two: Quality, Price, Speed
You can’t have them all… So if you choose quality - and that’s a cornerstone of our business because with it comes trust, reputation and long-term growth - what does that mean for speed and price? Is there always a compromise to be made, or is there a way with modern technology and agile methods to help us achieve all three?
I think there is probably still going to be a bit of a trade-off and it will depend on where your business is in its growth cycle – what do you think?
🧠 Stick to What You Know vs 🌈 Diversity Fuels Creativity
The Power of Mastery
Let’s be honest, there is something reassuring about expertise. When you’ve spent years honing your craft, you know the shortcuts, the pitfalls, and the clever workarounds. For business owners like us, deep knowledge means you can spot risks before they become problems and make decisions with confidence.
Expertise builds trust, both within your team and with clients. It’s the backbone of a business that delivers consistent quality and stands out in a crowded market.
The Spark of Diversity
On the other hand, sticking only to what you know can be a double-edged sword. While mastery brings stability, it can also breed tunnel vision. Diversity of backgrounds, experiences, and perspectives, fuels creativity. It’s the secret ingredient that helps businesses break out of old patterns and discover new opportunities. When you invite fresh voices into the conversation, you open the door to innovation and growth.
Creating Space for Both
The challenge isn’t choosing one over the other - it’s creating an environment where both can thrive. Perhaps this is where real growth happens: when wisdom meets wonder, and experience sparks innovation. Maybe now is a good time to bring a FRESH pair of eyes into your business?
🚀 Fail Fast – Learn Faster
This is one I’ve struggled with, and I suspect part of this is because of the nature of my role as a Finance Director. However, in today’s fast-paced business world, standing still is the fastest way to fall behind. The journey to scaling a business isn’t a straight line - it’s a series of experiments, setbacks, and breakthroughs. The secret? Embrace failure as a stepping stone, not a stumbling block.
Why Failing Fast Matters
Nobody likes to fail. But the businesses that thrive aren’t the ones that avoid mistakes - they’re the ones that learn from them, quickly. When you “fail fast”, you spot what isn’t working early, adapt, and move forward with sharper focus. It’s not about being reckless; it’s about being brave enough to test new ideas, knowing that each misstep brings you closer to what works.
How to Learn Faster
- Break it down: Don’t wait for the perfect moment or the full picture. Tackle challenges in bite-sized chunks -micro-learning modules, quick feedback loops, and short sprints. This one aligns to the old “How do you eat an Elephant”.
- Celebrate setbacks: Every failure is a lesson in disguise. Share what went wrong, reflect as a team, and use those insights to fuel your next move.
- Act on feedback: Listen to your clients, your team, and your numbers. The faster you act on what you learn, the faster you grow. You have to know and understand your number for this one.
- Stay curious: The pace of change is relentless. Make learning a habit, not a chore. As Andrew Hunt and David Thomas put it, “Your knowledge and experience are your most important professional assets. Unfortunately, they’re expiring assets. To stay relevant, you need to keep learning - constantly.”
For me, trying and failing must happen within boundaries, otherwise the risks are too high; as I said, it’s difficult to take the Finance Director out of me!
