Monday, 9 March 2009

Sustainable Growth

Ideally, Sustainable Growth (SG) is a value over and above the Sustainable Funding Streams (SFS), COP and COC, of a business operating under a Sustainable Economic Model (SEM).

However, an existing business operating under the classical Unsustainable Economic Model (UEM) can be converted to a 'Sustainable Size' (SS), which is a proportion of its current size.

The UEM to SEM converstion tool is flexible and it allows every business to set its own SS as a proportion of its current size or growth level without having to adhere to a strict computational rule. The resulting liquidity value from the conversion is the SFS of the business. A Business can grow as normal but, under sustainability rule, this should be done relative to the SFS Growth level, such that when measured both stay or remain approximately the same.


0 comments: