Why Growing Fast Can Be the Biggest Cash Flow Killer
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Is your small business growing fast, more revenue, more staff, more orders, and somehow still feeling tighter on cash? In this episode, Chartered Accountant Paul Sweeney explains why growth has a cash cost before it has a cash benefit, and gives you three checks to find out if your business is scaling at a pace your cash flow can actually support.
Growth is supposed to be the win, so it rarely gets questioned the way a slow month does. But fast growth often means fast-growing fixed costs, more wages, more stock, more overhead, all committed before the extra revenue it's meant to generate ever lands. That's not a success problem. It's a pacing problem, and pacing problems stay invisible right up until they aren't.
Paul walks through three checks every growing small business should run: whether cash is actually growing at the same rate as revenue, how many months of overhead the business could cover if growth suddenly stalled, and whether systems have genuinely kept pace with the size of the business, or are still running like a much smaller one. Includes a real case study of a business that scaled from $2 million to $8 million in turnover, and the systems that made that growth sustainable instead of risky.
👉 Download the free 5-Day Cash Flow Email Course and find out which of these four drains is costing your business the most: https://courses.paulsweeneyaccountant.au/5-days-to-cleaner-cash-flow
👉 Grab the free Pretium Solutions eBook, "Start Improving Cash Flow Today" for five practical steps you can start today: https://pretiumsolutions.com.au/start-improving-cash-flow-today/
In this episode:
- Why growth has a cash cost before it has a cash benefit, and why that cost is so easy to miss
- Three checks to find out if your business is growing faster than its cash flow can support
- How many months of overhead cover you'd have if growth suddenly stalled
- Why systems that worked at half your current size can quietly undermine fast growth
- A real case study: scaling from $2M to $8M in turnover without losing control of cash flow
📘 Free eBook — Start Improving Cash Flow Today: https://pretiumsolutions.com.au/start-improving-cash-flow-today/
📧 Free 5-Day Cash Flow Email Course: https://courses.paulsweeneyaccountant.au/5-days-to-cleaner-cash-flow
🌐 Paul Sweeney Accountant: https://paulsweeneyaccountant.au/
🌐 Pretium Solutions: https://pretiumsolutions.com.au/
📱 Instagram: https://www.instagram.com/paulsweeneyaccountant
▶️ YouTube: https://www.youtube.com/channel/UCSgDcYMjHVQ9uEdZgGpvdBw
About the Host
Paul Sweeney is a Chartered Accountant and founder of Pretium Solutions, with over 25 years advising small and medium businesses. He's the host of Grow Your Business and The Business Behind Your Business podcast.