Factors demanding growth finance

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Presentation transcript:

Factors demanding growth finance John Maynard Keynes’ ‘rising tide’ model - Business survival depends on the formula: ‘Performance = scale of profit ÷ by inflation + the dominant trend in cost of living’.

So any business has a clear choice: Factors demanding growth finance As a global average, according to Dun & Bradstreet, the cost of living rises by 54 per cent every decade. So any business has a clear choice: grow or go bust. You actually have to double your profitability every 10 years just to stay where you are.

That’s actually more than the number that go under in the first year. Factors demanding growth finance Figures from the Official Receiver’s Office in the UK show that of all the businesses that go into receivership, 38% of them collapse in years 6-9. That’s actually more than the number that go under in the first year.