Publisher is the useful and powerful WordPress Newspaper , Magazine and Blog theme with great attention to details, incredible features...

Managing a company’s strong growth: how to do it?


The growth of a company, an element to anticipate

If it is poorly prepared, the  strong growth of a company  can paradoxically hinder its progress. Increased demands or commitments, more lucrative contracts: all of which require more financial, technical and human resources.

Define your growth objectives beforehand

This is the best way to predict possible changes in your business. For this, several questions must be asked:

  • Do you have the capital needed to finance the  growth of your business ?
  • Do you currently have cash flow problems?
  • Do you have assets that could be converted into liquidity if necessary?
  • Are your staff growing too fast for your cash?
  • Are your accounts receivable paid on time?
  • Are your stocks sufficient in case of an increase in your business?
  • Is your production line efficient?
  • Do your teams have the skills to support and manage the growth of your business?

Conduct a growth diagnosis

This will help you know if your budget is properly allocated and define your refinancing needs if necessary to avoid future cash flow problems.
Accompany the growth of your business at best

Once you have taken stock of your human, financial and material resources in your business, make sure that the  growth of your business  is a lasting phenomenon and not an isolated or seasonal event. You can then use all the means to optimize your growth.

Establish a growth strategy

Examine your resources internally, analyze the market, the economy, the situation of your competitors, the networks of marketing and distribution of demographic data in order to establish your growth strategy. You will thus be able to understand the risks and the opportunities that imply your mutation.

Be forewarned

Understand your future financial needs by analyzing your inflows and outflows. Put these needs in parallel with your financial situation to find possible areas for improvement. This step may allow you to obtain additional liquidity for your working capital, to finance your debt or to convert unused assets into cash.

Analyze your accounts receivable

To optimize your finances, several checks are necessary:

  • check the creditworthiness of your clients;
  • clarify your terms of payment and collection;
  • monitor collection times and reduce them if they put your cash at risk.

Analyze your accounts payable

Again, check out all the points that can help you optimize your finances:

  • what commercial credit do your suppliers give you?
  • are your suppliers paid on the due date?
  • can a payment period be obtained?

Plan your expenses

Scrupulously monitor your money flows in order to rationalize costs such as rent, equipment, human resources and office equipment. Also define concrete objectives for reducing expenses and communicate these objectives to your employees and collaborators, for an effective implementation.

Control your debt

Constantly control the level of your debt, to maintain the confidence of your lenders and continue to collect the funding needed for your needs. Also consider other financing options, such as leasing rather than purchasing goods and equipment, or negotiating more favorable terms with your suppliers.

Leave A Reply