#379: 2024 Planning: Leveraging EOS, Strategic Planning, Budgeting & Forecasting to Hit Your Target Equity Valuation [Part 1]

Today we start the two part series with a conversation around effective annual planning strategies with CEO Nexus owner (a CEO Peer Group), Steve Quello. Our discussion highlights the importance of integrating the financials - and a target equity valuation - into structured frameworks like EOS©, which aids in scaling and managing businesses through vision, data, process, and traction. We break down the role of financial literacy, and the power budgeting and forecasting bring to decision-making, particularly aiming for normalized EBITDA over arbitrary revenue targets. Additionally, we discuss the value of peer groups and people who can hold you accountable, while also enhancing the planning and budgeting process.

THREE BIG IDEAS FROM THE INTERVIEW:

1.The Importance of Structured Frameworks in Business Growth: These frameworks (e.g. EOXS©) provide a disciplined approach to managing and scaling businesses, focusing on vision, data, process, and traction.

2. Integrate the Financials into EOS© and/or Your Long-Term Plan: By understanding and aligning the income statement, balance sheet, and cash flow statement, you can integrate your budgeting process right into your annual planning. This will allow you to make more informed decisions that are aligned with your long-term financial goals, particularly focusing on normalized EBITDA, future cash flow, and a target equity valuation, rather than arbitrary revenue targets.

3. Utilizing Peer Groups and Regular Review for Effective Planning: Steve highlights the value of peer groups, such as CEO Nexus, in providing support and external insights for better decision-making and accountability.

ABOUT STEVE QUELLO:

A career, like any journey, is subject to chance encounters and events that influence the choices and ultimate course of that journey. It was such an encounter that changed the career path for Steve Quello when he met Edward Lowe, an entrepreneur’s entrepreneur — the inventor of Kitty Litter, Tidy Cat and a host of other successful business ventures. The introduction to Lowe and subsequent working relationship gave Quello a deep understanding of exactly what it takes for entrepreneurs to start, grow and scale a business. This understanding is what ultimately led Quello to his current position as president of CEO Nexus, a consulting business dedicated to providing the resources and networks leaders of second-stage businesses need to sustain and scale a company.

INTENTIONAL GROWTH™ RESOURCES:

• Intentional Growth™ Podcast Archives: Archive of 356+ episodes and counting. Get access to the entire library HERE. We'll be adding a searchable tagging feature later on this year.
• IG Financial Scorecard: Get your Intentional Growth™ Score that grades you on how well you are viewing - and running your business like a financial asset. Get your results and 5 case study videos HERE.
• Intentional Growth™ Academy: 71 Videos, 9.5 hours of content, 20+ exercises. $995 for subscribers [normally $1,495] HERE