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Stone Forest Model for Growing Businesses

The Stone Forest Model for Growing Businesses comprises the following 7 critical elements of the management framework, driven by the main objective of profit and cash flow improvement.

1 Business Modelling
Shape the business model to focus on core competence
Strengthen the business model by clarifying the value proposition and instilling the value creation mindset

2 Revenue Modelling
Identify current and potential revenue streams with their supporting cost structures
Quantify the impact of the above on the business’ profit and cash flow
Create a revenue model that best fits the business model to maximise profit and cash flow

3 Capacity Management
Determine the optimum capacity the business can operate based on its present facilities and infrastructure
Configure the capacity to generate the best returns

4 Funding Structure Review
Review the funding structure, capital expenditure needs and working capital requirements of the business
Align the funding structure to the business’ needs so as to reduce financial and business risks

5 Management Structure Review
Identify and bridge management expertise gap to enable the efficient execution of business plans

6 Business Process Re-engineering
Review operating procedures and processes to tighten systems and controls with the view to achieve the following:
- Increase productivity
- Prevent leakages
- Enhance quality of service
- Sharpen competitive edge

7 Establishment of Key Performance Indicators
Establish a tracking mechanism incorporating safety markers on the business’ profit improvement roadmap and reporting system to ensure the business stays on track


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