Managing Your Company’s Growth
Your business is growing, things are booming. New customers are being brought on at an ever faster rate and you feel like you are in a great spot. Then your bookkeeper gives you the latest financial report.
The numbers don’t lie; you’re not bringing in enough cash to handle your recent growth. Your expenses are rising while your operating funds are shrinking. If sales continue to rise, which never before seemed like a problem, how would your company handle the increased growth? What if your largest customer decided to delay payments an extra 30 or 40 days? Would your company be able to continue down the path you’ve worked so hard to achieve?
Managing a growing business can be difficult, and the toughest problem is being sure your company can sustain high growth successfully. Read below to find ways to stay on top of this common issue.
- Set up regular briefings with your bookkeeper and CPA so you are always “in the know.” This step is crucial: the earlier you know about an issue, such as decreasing operating funds, the easier it will be for you to solve the problem timely.
- Control your expenses. Be sure your expenses are still within reasonable levels for your growth. Going through the books a few times to be sure money isn’t being spent unnecessarily can help set your mind at ease.
- Manage invoicing. It would be very nice to know exactly when your customers will pay you. Staying on top of timely invoicing and customer satisfaction helps to ensure payments are received within invoice terms.
- Form a factoring relationship. When your company is growing rapidly due to your hard work, but business is suffering from tight cash flow, factoring can be your first line of defense. Not only will cash immediately begin flowing again, your company’s continued growth is all but certain. Do some research before problems occur and form a relationship with a trusted factoring company like Evergreen Working Capital.
By using these tips, you can help your business manage growth and cash flow successfully.
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