Have you been in or seen this situation. You establish a business and get the formula right. Things are growing swimmingly; sales are increasing, the money is rolling in, you start to put on staff, invest in more stock, which brings more in more sales, you hire more staff to handle the increased business. And so it goes on.
And on and on, for a while. You are revelling in your success in business, and maybe even indulging in a few luxuries to reflect your success. But almost imperceptibly life starts to get more difficult. You find you are spending more time at work, there are more problems to solve, and the bills seem to be harder to pay despite the sales continuing to go up. It has become hard work and you're not enjoying the business, or life as much.
And the enjoyment gets less and less as the whole business just gets more and more difficult. Suddenly you are not longer the rapidly rising business. In fact you are going......nowhere. You've hit the business brick wall.
Rapid growth typically leads to a business hitting a brick wall. The brick wall has three major elements:
Businesses can, and do, hit a brick wall more than once as they grow, particularly if they are growing rapidly. Because they are growing rapidly they don't have the time to step back and look at what is happening. They don't have time to spot the obvious.
So if this is you, take the time to step back to see the brick wall before you run smack bang into it. And if you do that, the brick wall will just prove a mirage on the road to success. What do you do when there is a mirage on the road ahead? Why, you just cruise right through it.
PS. If you would like to comment on this tale please contact me.
Some profit losses are pretty obvious - so you fix them.
BUT, what if you don't know profits are leaking, cash out the door?
Possible leaks could be anywhere.
Are there some clues or symptoms that are tell-tales?