Growing broke. This concept rarely, if ever, comes to mind as business owners begin to grow their business. Yet it is possible that if you are growing too fast, you may in fact run out of cash. Could this happen to you? It could, but we want to give you some insights on how to prevent this from happening in your business.
One example might be if you successfully get your product on the shelf of a big retailer and they successfully sell all the products. That's the dream! But then the retailer must reorder the inventory so the they can keep selling. If you are not careful, this dream can quickly turn into a nightmare.
Another example is growing so fast while not paying attention to your growing expenses. Or growing your sales while increasing the marketing required to support the sales. All of these examples are areas where you could grow broke.
Learn how CashFlowTool can help you understand these levers so you never don't grow broke.
Author
Mike Milan
Mike is one of the highest rated instructors at the nation’s most prestigious banking schools on the topic of financial management for small business owners. Working as a senior executive for Finagraph, he has helped build software and solutions enabling the fintech digital transformation.