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Growing Pains vs. Shrinking Pains

manage your cash Jul 12, 2022

What are two critical times when cash management is really important? When a business is shrinking and when a business is growing.

Businesses with shrinking sales have smaller profit margins to pay your bills and to pay yourself.

The result: Cash shortfalls due to a decreased amount of cash coming in.

Seems obvious, but what isn’t obvious to most businesses owners is how to:

  • Cut expenses that are not critical to the core businesses
  • How to get paid faster
  • Slow the cash going out for critical expenses
  • Maximize profit margins
  • Engage employees in all of this

Growing business: You have more profit margin to pay your bills and to pay yourself.

Again, this seems obvious.

What many business owners don’t plan for is the delays of the cash coming in to pay those bigger bills.

A staggering number of businesses get themselves into serious trouble because they grow too fast and don’t have the resources in place, including access to enough cash or credit, to handle the growth.

If you like this article, please share it so others can learn!

Do you think that growing pains can be even worse than shrinking pains?

E-mail me your comments at [email protected]



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