Greg Crabtree is a renowned financial expert and author known for his expertise in business performance and capital management. He says it’s important to understand whether your business is consuming or generating cash as it grows. Greg discusses the concept of “trade capital” and differentiates between capital-heavy, moderate, and light businesses.

He warns against relying too heavily on lines of credit, noting that they can be risky during banking crises. Greg introduces the “career labour efficiency curve,” illustrating how employees’ productivity and cost evolve over time. He critiques traditional budgeting, advocating for adaptive spending plans and realistic growth expectations.

Takeaways

• Understanding whether your business is consuming or generating cash is crucial for managing growth effectively.
• Clear capital requirements and knowing your business’s capital type—heavy, moderate, or light—are essential for financial stability.
• Relying on lines of credit can be risky, especially during economic downturns or banking crises.
• The “career labour efficiency curve” shows how employee productivity and costs change over time, impacting overall business expenses.
• Traditional budgeting often falls short; adaptive spending plans and realistic growth expectations are more effective.

Follow Greg Crabtree 
https://www.simplenumberscri.com/ 
https://www.linkedin.com/company/simplenumberscri/ 
https://www.facebook.com/CRISimpleNumbers 
https://x.com/SimpleNumbrsCRI 
https://www.instagram.com/crisimplenumbers/ 

Books on this episode

Simple Numbers, Straight Talk, Big Profits!: 4 Keys to Unlock Your Business Potential https://amzn.to/4a70X0I 
Simple Numbers 2.0 - Rules for Smart Scaling: A Play by Play Analysis for Pure Growth https://amzn.to/4bkMwXP 
Quit by Annie Duke https://amzn.to/4bi5XAk 
Fooled By Randomness: The Hidden Role of Chance in Life and in the Markets by Nassim Nicholas Taleb https://amzn.to/3wfRxlu 

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