4 signs your business is poised for growth
Every business wants to experience growth, but there may be some cash flow consequences to consider. Here are 4 signs you’re about to grow.
The point when an SME is set to undergo significant growth is a hugely exciting time for business owners. However, if they don't prepare sufficiently, businesses can struggle later down the line.
For example, if a very large order comes in, your business will have to find a way of funding the resources to meet that order, all while still maintaining the product's quality.
This is why it's essential to recognise the signs that a business is about to grow. Only then can you sufficiently prepare and ensure your cash flow can actually survive the growth:
1) You're experiencing consistent high demand
You'll only grow if there's high demand for your products or services. If you're about to see significant growth, you will have consistently high sales, and demand may even be greater than you can currently meet.
2) You have positive cash flow
So much of starting a business is simply trying to get to the stage where you're breaking even. When you start consistently making a profit, it's a good sign that you're poised for growth. Profits should be at the level where you're still making money even if you go through a time of uncertainty for your business, such as a fluctuating exchange rates.
3) Your systems are well organised
Businesses can only grow successfully if their systems and processes are able to support it. For many SMEs that are just starting up, they'll still be experimenting with what works best. For a business that's poised for growth, you'll have most of your systems already established and working smoothly, so that you don't have to worry about them as you develop your business to meet growing demand.
4) You're getting good customer feedback
Any issues with your product or service will have been ironed out by now, and you'll be experiencing great customer feedback on a regular basis. Customers will be regularly coming back for more, and they'll be recommending your business to others so that your customer base keeps on growing regularly.
Whether you need to acquire more equipment in readiness for growth or want to release some funding to support your expansion, there are tailored finance solutions available to help.