Dale Cavanagh – Principal of CAV Consulting & Analytical Services warns that whilst business growth shows a demand for your product or service, the impact of this growth may result in wide-spread consequences if you are not able to manage this growth effectively.
“If your business is facing a growth phase here a few key things to consider:
- how will growth impact other areas of your business, e.g. cash flow, staffing levels, location or premises, distribution etc. This can be a very long list
- undertaking scenario analysis. This will help you assess the financial implications of your plans before you implement them. It is very useful when weighing up different plans/options to assist you in choosing the best course of action.
- talking to your banker. It is always a good idea to review banking arrangements and products earlier rather than later. Your banker should be happy to be part of the process when it comes to planning for growth.
- peak to your accountant, their input can extend well beyond tax planning and they can help you identify financial implications you may not be aware of”.
If these aspects are not considered when growing your business, the likelihood of your business remaining sustainable is not great. As your business grows, risks change and may become more complex. The continuing success of your business requires constant monitoring of all aspects and a willingness to consider alternative management and mitigation of risks.
Planning is the most important part of your business; don’t leave work without doing it!