Management Tip of the Day: Don't Grow Your Business Too Fast

Are you having trouble viewing this email? If so, click here to see it in a web browser. HOME   |   TIPS   |   BLOGS   |   THE MAGAZINE   |   BOOKS   |   STORE RSS   |   Mobile DECEMBER 20, 2012 Don't Grow Your Business Too Fast Yes, growth is a good thing. But high growth can easily overwhelm a small enterprise, and put it at risk of going under. Before you push your company toward an audacious sales goal, know the following: Understand your true operating costs. Know what they are and how they evolve as your business grows. Rapid growth will increase the cost of doing business and you need to be prepared. Get a solid grasp of your working capital needs. Understand how much cash your firm requires to conduct day-to-day business. Look at more than your income statement. It's not the only index of health. To get a quick pulse of how your business is doing, you need to look at other metrics besides revenue. These include cash available, status of accounts receivable, inventory, and other metrics specific to your business. Today's Management Tip was adapted from "Are You Growing Too Fast?" by Sandeep Dahiya. Read the full post and join the discussion » Share Today's Tip: FEATURED PRODUCT Harder Than I Thought: Adventures of a Twenty-First Century Leader Ebook Now Available Being a great leader today is much harder than you think. This fictional narrative puts the increasingly complex job of Chief Executive in a very real context. It serves as a practical guide by allowing you to walk alongside Jim Barton, a newly minted CEO, rising leader of a firm in transition, and manager of massive complexity as he takes on his new role and all its attendant challenges. Jim's story — developed in collaboration with seasoned, real-life CEOs — includes crucial lessons for anyone hoping to master the new-world skills required of successful business leaders today. ADVERTISEMENT Follow the Tip: PREVIOUS TIPS Create Rituals to Get More Done Take More Vacation Two Rules for Keeping Employees Happy and Engaged Focus Your Sales Pitch by Subtraction Focus on a Career Direction, Not a Specific Job Don't Sacrifice Long-Term Growth Just to Hit Your Forecast Before a Big Presentation, Brainstorm Quit Your Job, for Real This Time Don't Be a Bad Boss The One Person Every Network Needs All Previous Tips BEST SELLERS HBR's 10 Must Reads: The Essentials HBR's 10 Must Reads Library Set Guide to Persuasive Presentations Guide to Better Business Writing Guide to Getting the Right Work Done Introducing Mobile ManageMentor Powered by the proven content of Harvard ManageMentor™ iTunes >> Android >> UNSUBSCRIBE   |   UPDATE YOUR PROFILE   |   MORE EMAIL NEWSLETTERS   |   PRIVACY POLICY Was this email forwarded to you? If so, sign up to start receiving your own copy. ABOUT THIS MAILING LIST You have received this message because you subscribed to the "Management Tip of the Day" email newsletter from Harvard Business Review. If at any point you wish to remove yourself from this list, change your email address, or sign up for other email newsletters and alerts, please visit the Harvard Business Review Email Newsletter Preference Center. OPT OUT If you do not wish to receive any email messages from Harvard Business Review, click here. ADVERTISE WITH HBR This enewsletter is read by thousands of decision makers every day. Learn more about connecting your brand with this audience. Copyright © 2012 Harvard Business School Publishing, an affiliate of Harvard Business School. All rights reserved. Harvard Business Publishing | 60 Harvard Way | Boston, MA 02163 Customer Service: 800-545-7685 (+1-617-783-7600 outside the U.S. and Canada)