Growth will stretch cashflow
As your business grows, you will need to find money to pay for more staff, bigger facilities and increased production costs. If your business grows rapidly and the growth is largely unplanned, you’ll risk overtrading by not having enough working capital (cash for day-to-day expenses) to fulfil your expanding orders. Not having enough working capital in the critical time between investing in growth and realising the profits is a common problem for businesses experiencing rapid expansion. It can easily ruin a business. However, there are a number of strategies for dealing with short-term cash shortfalls. Dealing with cash shortages...
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