The growth stage of every business, while exciting, comes with challenges.
When revenue increases and more customers are putting trust in your product or service, common growing pains start to arise that businesses must tackle.
Cash flow and financial management
Increased revenue doesn’t necessarily mean good cash flow. Managing a higher stream of cash flow is often challenging for new business owners.
Solution: You accountant is your best friend! Your accountant should be involved in your business activity to help predict future cash flow and revenue and help mitigate future and potential risks.
Planning for the future
It is essential to plan for the future while experiencing growth. It’s likely that your business has grown out of its start-up goals and direction so it’s time to think bigger.
It may be difficult to forecast the future when sales are booming
Solution: Seek advice. Advisory services are a saving grace during the growth phase. 542 Partners not only handle finances but also provide advisory services and can point you in the right direction.
System and processes constraints
When sales and orders are booming, your current systems and processes may not be able to support your rapid growth. New technology and integrations can provide much needed updates to your current systems.
Solution: Seek advice on the newest technology and systems and enquire about free trials. Check out our latest blog on business apps for 2019!
Keeping up with the market and your business
Outdated goals and objectives may be what’s holding your business back. As you enter the growth stage, your business needs to set more relevant objectives for the future.
Once you have new goals in place, you can continue to grow without constraints.
Solution: Make sure you are aware of market and regulation changes happening in your industry as increased competition is a major portion of the growth stage.
If you’ve progressed through the start-up phase and are experiencing growth in revenue and customers, speak to us!
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