80% of a successful strategy is just about:
Capital allocation.
Where can you allocate capital with the highest return on your investments
You can:
💰 Reinvest in your business
- - Strengthen your core to invest in product/service improvements to protect your market share;
- - Invest in adjacent and transformational ideas with higher returns on capital to keep your business future-proof.
🤝 Invest in M&A
- - Fuel the growth of your core reinvestments by buying other companies
💸 Payout dividends
If no other opportunities exist to return higher percentages on your investments, you can reward your shareholders directly.
🔄 Share buybacks
- - Shows confidence in your business and increases the price of your shares.
📊 Strengthen your balance sheet
Pay off debt and improve your stability
Don't create unicorns,
Let's breed blue whales.
🐋
