Business Growth Turns Into a Business Plateau
You’ve scaled your business this far. You have $500k-$2,000,000 in revenue. Things have been steadily growing for a while, maybe even years. Then you hit a plateau. Incremental growth gets tougher, cash flow gets harder. Bigger is supposed to be easier and cash is supposed to be flowing. What happened?
There are growth inflection points for all businesses. The typical size of this inflection depends on the type of business you are in. For a solopreneur, you may “cap out” at a certain number of clients. For a restaurant, a certain number of locations. For a SaaS company, a certain number of employees.
This inflection point is where the path forward isn’t as clear anymore, that straight “do what you’ve been doing” doesn’t move the needle forward any further.
Don’t Let Data Hold Your Business Back
So what’s holding your business back? In my experience, it’s data. When you were smaller it was easy to keep everything in your head or on a simple spreadsheet. You could manage your cash by looking at your bank account and generally know where the cash was going and more importantly WHY.
The solution? Better information, real-time information. A clear understanding of where expenses could be allocated to growth-focused goals rather than the red tape of a larger organization.
As your business grows, it feels like there is a leak somewhere where the cash is pouring out. Looking at the data with a financial professional can help you understand where those leaks are, how to plug them and how to keep them plugged.
Another issue in growth is determining what is working. The key to not losing a lot of money is to fail quickly, then try something else. But the real problem is when you can’t tell what is working and what isn’t for 6-12 months. That timeline makes it tough to fail quickly! So what do you do? Turn to the numbers to see what’s working and what isn’t.
Don’t be like the other countless businesses out there letting data hold them back. We know successful businesses are powered by financial data. You don’t need to live in your numbers, but you do need to be proactive and use that information to help your business flourish!