There is an inherent conflict that emerges with growth! The stress on cash flow is only the first symptoms of what is to come.

First, few people really understand what it takes to grow. When a company is growing, everyday is a new day, with a new set of challenges. Relationships get tested and become strained.

A chorus begins, “If we only had more money…we need more resources…we need more time…they want what?”

Absolutely!  Resources and expectations must be managed. And, it’s important to have a cash, capital or lines of credit that will allow for a few expensive mistakes. But, possibly more concerning is the confusion that occurs with growth.

It is confusion that is dangerous to a business!

Growth will pressure all the current norms of the business. Test your people and readiness, before the market does.

A few simple questions will give you clues:   “If you are given $x,xxx,xxx, how will you put the money to work? What will you be doing differently tomorrow, one month from now, three months from now? How will we define success with the money?

It’s not enough to WANT growth or develop a business plan.

New customers will be different from old ones…

Customer demands will increase…

Product requirements will shift…

Skill gaps will emerge…

Systems will no longer function as they once did…

Everything will take longer than expected…

It will always be more expensive than expected…

Profits will erode…

Payables will rise…

The Payroll clock will never quit ticking…

People will feel the stress…and, some won’t make it through it. Replacing a dead soldier with a new one will be expensive, in time and money!

Why? That’s not important. Growth just does…

What is important? Begin preparing for it…

Growth is NOT just about Cash Flow and Capital