Finance

Should I continue to grow or should I slow down?

Guest Writer
Entrepreneur, Business Planner and Angel Investor
min read
Opinions expressed by Entrepreneur contributors are their own.
This is why I recommend business planning. There should be flesh and bones on your plan to help you with the basic projections, including projected sales, costs of sales, expenses, profits, interest, taxes, assets, liabilities, capital and--by far the most important--cash flow.

Cash flow isn't profit. It's a matter of taking your present cash position and projecting it forward by estimating money going out (on costs of sales, expenses, purchasing assets, paying debts, etc.) and money coming back in (normally on sales, but don't forget that you have to allow for the time it takes customers to pay you.)

The only way to answer that question is to do the numbers. And then, watch the numbers and the flow, every month, at least once a month, to track whether you're on target.

If you don't have a plan, you can't even tell. But you should have a plan, and then you compare actual results to your planned results.

That turns planning into management and--congratulations, by the way--your question indicates you have some growth to manage.

Tim

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