The growth phase for small businesses, while exciting, can be one of the hardest to manage.
But with some smart technology and clever processes, growing your small business can be an exciting transition.
There’s a new set of challenges to navigate for every hope of a self-sustaining business. This is the phase when you have a product or service your customers believe in, but you may not be making a profit from selling it. You’ve got nothing to lose and everything to gain.
You start to swim out of the start-up pond
It’s at this time when small businesses reconsider their pricing structure or start cutting costs.
Also, be sure to pay attention to your cash flow. Even if you’re making a profit, it’s easy to run out of cash if your bills are due and revenue is delayed. To put it simply, you’ll often make more revenue and not enough profit, so it pays to be supported through this phase from your accounting and advisory team.
542 Tip: Understand the relationship between profit, tax and cash. Read here.
Restructuring your systems to make way for growth
The structures or systems you had in place during the start-up phase may no longer be sufficient to deal with the growth being experienced. These processes coupled with increasingly stricter compliance requirements and cash flow demands, can make things a little tough.
542 Tip: Cash flow Vs Profit: Is there a difference? Read here.
Thrive and prosper
If you’ve survived some of the curve balls mentioned earlier, it’s time to invest in growth while keeping your cash flow stable.
Use the motivation that has got you this far and start thinking ‘big picture’, in which your small business grows into a mature, stable company.
Here at 542 Partners, we can guide you through your growth phase and help you score business goals.
Need support for your business journey? Let’s talk.
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