WHAT TO EXPECT DURING PHASES OF ACCELERATED BUSINESS GROWTH
While in growth mode, profits and free cashflow take time to catch up. You won’t necessarily have excess capital, though your free cashflow may incrementally improve making managing that cashflow all the more important.
Now is the time to be as proactive as possible! Take a look at your balance sheet and ask yourself what investments are worth making with the most immediate impact. For some industries this could be equipment, for others it can mean making an investment in your people.
INVEST IN PEOPLE TO HELP YOUR BUSINESS GROW
Propelling your business to the next level often requires an “all hands on deck” position. As the business owner, you have to prepare for the inevitable investment that comes with growing your business; this investments tends to be highly reliant on your people and in turn, dedicating time and dollars to hiring, training, salaries, benefits; the whole nine-yards.
The reality is, you have to grow your team to grow your business. You cannot take on more work without people to delegate to. Sounds like a no-brainer, yet preparation for this step commonly gets ignored during high-growth phases of business because of the sticker shock of a new team member.
TEMPORARY STRAIN CAN LEAD TO POTENTIAL GAIN
Naturally, onboarding additional team members requires time, money, and energy, which will temporarily strain your capital. This is where your strategy really comes into play.
The tricky part is preparing for time and expenses associated with the people component. Whether this be through financing, line of credit, reducing expenses, or pulling money out of savings, you must have a plan in place to offset the temporary strain in capital.
Be strategic in the investment to grow so you can continue to play offense rather than having to default to defense. Though there may be some natural bumps and hurdles along the way, having the ball in your court with proactive planning will lead to a more strategic path to success.
What has been an investment or strategy you have implemented to reach your growth goals? Share with us on social!