The most dangerous moment for your company08th June 2018
Chris’s company was experiencing growing pains.
On the surface, things were going well.
His company had grown by 70% in the last two years. He had more staff, more products and more clients than he’d hoped for at this stage. He’d recently purchased a bigger house to support his growing family.
But while everything looked ‘successful’ on the outside, the reality of business was very different.
There was an air of uncertainty with every decision he faced. His bookkeeper couldn’t explain why the company was losing money despite sales increasing. The numbers just felt ‘off’.
This was what Chris was thinking inside:
“I don’t understand how things work anymore. Two years ago, I knew my business inside out. And now? The numbers don’t make sense to me. I want to feel certain about growing but today, more growth feels like it will hurt us.”
And as the owner of the company, he felt completely out of control.
Does this sound familiar?
We all aspire to growth – but often, the moment when you really take off is dangerous.
You are still trying to manage your business the same way you did when it was smaller…. But you have outgrown that mode of working.
For example, your sales have increased – but you still have the same old systems in place to process orders, or to manage all these new accounts.
You have to make big decisions about where to invest, but you haven’t seen a full set of accounts for months, and your gut feeling is no longer enough.
You need to hire new staff, but you have no idea what you’ll be able to afford in three months’ time, because you’ve never seen a cash flow report.
In my last blog, I mentioned that there were some sure signs that it’s time to change the way you manage your finances, and start instituting professional systems and processes of the type larger companies take for granted.
That feeling that things are spinning out of control because you’ve grown so fast is sign number one.
If you don’t raise your game quickly, your business could shrink as fast as it grew.
And it all starts with the finances:
Having the right accounting system in place so you can track how much money is coming in on any given day, and how much is going out….
A reporting system that gives you total clarity on your financial situation so you can make smarter investment decisions…..
A trusted advisor who has the knowledge to guide your decisions to support the next stage of growth.
Without this essential foundation, growth can be painful and dangerous.
Let’s avoid that.
Does your company have the appropriate systems and processes in place to support the growth you aim for?
It’s something we can help you get to grips with quickly.
Just get in touch and let’s assess both where you are and what you need in place to grow.
Together, we can make growth in your company much smoother- and give you back control.