Spot It.
Sales are climbing, but the bank balance is shrinking. You are paying for more staff, materials and equipment before customers pay you. The faster you grow, the tighter cash gets, and it is starting to feel like success might sink you.
Sight It.
Growth needs cash up front. Money goes out for wages, inventory and equipment long before the related revenue comes in. Payment terms with customers and suppliers haven't kept pace with the new volume. And financing wasn't arranged ahead of time, so it is hardest to get exactly when you need it most. We see this most often in businesses that are doing many things right, which is exactly why it catches owners off guard.
Solve It.
Plan the cash for growth:
- Build a cash forecast that includes your growth plans.
- Work out how much cash the growth will need before it pays off.
- Tighten collections and negotiate better supplier terms.
- Talk with your banker or advisor about financing before you need it.
- Pace growth to what your cash can support.
Profitable growth still needs cash to fuel it.
Fixed it yourself? Great. Want help making it stick? Talk to a Troubleshooter.