When Your Business Begins To Grow
Lincoln Watase, CEO and President of Yum Yum Donut Shops, discusses the things to consider when your business begins to grow.
I think the most common mistake a business organization will make is not planning for growth. As a business grows it changes; changes affecting resources, people, equipment, cash, and space. So it's critical that an organization properly plans for changes. It's important to note that what works well for an organization in its early years may not necessarily translate to what works well after it's established and larger. It's also been my experience that the larger the organization is, the more difficult it is to keep everybody communicating and staying on the same page. My last point is that a growing organization needs to stay ahead of its cash needs. As your business grows so also do your inventories, accounts receivable, and payroll. These all require increased cash. A growing business needs to stay on top of its cash requirements.