How to manage the growth of your business?

business growth

You have recently created your business and very quickly your growth objectives are largely exceeded. Paradoxical as it may seem, a business leader faced with rapid growth in his business can find himself with a very difficult problem to manage.

The suddenness of success can sometimes even lead to the downfall of the company if the turning point is not negotiated well or could not be anticipated correctly. The main difficulty often encountered is successfully meeting immediate investment and cash flow needs. Here are some keys to staying in control.

Know how to make the correct diagnosis

The business strategy should not only be to set up marketing plans or campaigns to promote products. If these actions are essential to start the activity, then recurrently throughout the life of a company, it is also necessary to know how to anticipate success in order to respond quickly to the transformation which must then necessarily take place.

As soon as the order book starts to explode, you have to ask yourself a number of basic questions and first of all determine if the growth is temporary, namely cyclical, or if it will last by involving a number of important changes.

One of the first questions to ask is also whether you have the capital to buy stock quickly, and similarly, whether the cash will be sufficient in the longer or shorter term. This point will imply having to look into the payment deadlines.

The main question is whether growth will generate profits or if, on the contrary, the increase in turnover is not likely to translate into a drop in profitability and therefore profits. Finally, the analysis must focus on human resources and the needs for skilled labor, with the corollary of the issue of efficient management.

Once this initial diagnosis is made, it is important to quickly find the appropriate answers.

Each problem has its answer

As with the analysis of a balance sheet, the growth diagnosis cannot be limited to a fragmented study of each position. Managing growth successfully implies a global vision but with specific answers for each problem.

Access the website Altassura will then allow you to find the right financing solution for each balance sheet item.

First of all, forecast your cash flow needs by comparing the forecast of cash inflows and outflows. If the result leads to an insufficient level of "cash" in the short term, the business manager will have to react quickly with financing solutions such as factoring or order financing.

The collection policy will also need to be reviewed, sometimes implementing different and clear payment terms while monitoring payment deadlines. Decisions will often have to be taken towards bad payers, such as blocking their account by refusing any new order as long as the outstanding payments are not cleared.

Knowing how to manage your growth therefore means finding the right financing at the right time with the right partner.

0 replies on “Comment gérer la croissance de son entreprise ?”