As you grow, you stretch your business past its current capabilities. Growth will eat into your reserves fast: so you need to become more sophisticated in how you manage your finances. You will be investing in new resources, so you'll need to use appropriate systems, controls and planning to keep an eye on your financial position. This guide will give you a better understanding of how to do this.
How can I tell if my business is growing too quickly?
Watch out for rapid growth: if you don't keep it in check, it can hurt your business as much as no growth at all. If expenses are exceeding revenues even while your turnover increases; and if you keep taking out loans to keep operations going; and if productivity is not meeting demand, you have a rapid growth problem. The decision to grow a company should be based on sound financial information, market knowledge and analysis: don't get carried away by early success.
Organic growth: growth that comes from within a business, often occasioned by increasing sales and efficiency
Inorganic growth: growth occasioned through buying other businesses