Growing to death is often the result of unplanned growth opportunities. It’s ironic that seizing a major sales contract or big new client can be your business’s ruin but its more common than you think.
Many business operators are very good at what they do.
Most have an excellent knowledge of the business they conduct and understand their products and services.
Most also have an in-depth knowledge of sales performance and revenue.
Few, however, have a high level of financial management expertise.
So – when a big new opportunity presents, critical financial questions need to be part of the vocabulary. This will avoid a sudden and unintended impact on your financial position.
A rush of sales might be a great thing but it is not always counterbalanced by a rush of income and profit.
Free cash and liquidity are the victims.
