I attended a great networking event this morning and a lot of the talk, unsurpringly, was about growth and particularly how the SME community is looking to grow.
So, what is growth? Growth is often misinterpreted as revenue growth. This can be a fatal misinterpretation for businesses. Growth strategies should be cash focused, not revenue focused. Many businesses over history great at growing revenue are now in fact history! Cash is what sustains a business through the good and bad times. It's what ensures you have the working capital capacity to take advantage of growth opportunities; it's what allows you to continue to service your debts during the hard times.
I'm not staying you need to just stockpile cash for the hard times. I'm saying you need to apply more than a revenue consideration to any "growth" opportunities you are focusing on.
• Is your business achieving its full potential?
• Do you want to improve financial performance?
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