When you ask a small business advisor what you need to do to create value, the three most often-cited strategies are….grow, grow and grow some more. Typically, advisors are only referring to your top-line sales because where the top-line goes, your cash flow follows! While this advice might prove true, it certainly is not the rule. Let me provide a new phrase for you to consider – Don’t Grow Broke!
What does this mean? In a nutshell, not all growth is good and many companies take a good thing (responsible growth) to the extreme and create massive havoc pursuing even more growth and sometimes kill their business. We have all heard the stories about the restaurant owner that had a phenomenally successful location that was throwing off a ton of cash flow. The owner was happy, not too over-worked and was making a very good living for herself and her family. She was lured to expand rapidly to other locations to take advantage of her company’s success and “not let the best locationsRead More »from Shaking the Bode Tree: Growing Broke