low operating cash

Dangers of Growing too Fast

Posted by Carl Gould on January 27, 2011
Career, business, entrepreneur, small business owner / 2 Comments

It is every business owners dream to launch a hyper –growth business. But how fast is too fast?

If you are not properly prepared, you can grow yourself right out of business. Here are some of the signs…

  1. Quality Suffers: You don’t have enough time to double check or triple check your work. Minor defects that you would normally detect in the course of routine QA and QC processes are now slipping through the cracks.
  2. Customers Complaining: When your customers are telling you that you are not responsive in a timely fashion that may be a sign that you are growing beyond your capacity to service your existing customers.
  3. Low Operating Cash: When you are growing fast, your need to spend on materials and COGS will outpace your collections. Remember that business is a cash game. When you are out of cash you are out of the game.
  4. Time is Spread Thin: The faster you grow, the more demands there is on everyone’s time. If you lack the bandwidth to do a thorough job, the above-mentioned symptoms will get worse.

Fast growing companies can be exciting. They can also be dangerous. Many a company has spiraled out of control (and crashed) because they did not manage their growth. Would you like a FREE Business Analysis to make sure that your company manages its growth properly? Call our offices toll free at 877 GO 7 STAGES.

 “Carl L Gould is the President and Chief DISCoverY Officer CMT International, LLC (www.CMTmentors.com), the farthest-reaching business mentoring organization in the world. Carl’s unique approach to executive coaching, business mentoring and performance training helps his clients achieve results worldwide.  His latest book, The 7 Stages of Small Business Success – From Startup to 7 Figures in Three Years or Less, will provide entrepreneurs and business owners a step-by-step formula to taking their businesses to the next level”. Gould is also the author and creator of The 7 Stage Turnaround Process (www.7StageTurnaround.com).  7 Stage Consultants help business owners grow their sales, increase their cash flow and lower their expenses using a proven method of business growth strategies.  To learn more about our Consultants, go to http://7stageturnaround.com/mtc/mentorlist.php?groupid=1


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