You want to stagger into large financial decisions like scaling up your corporate overhead.
What you don’t want to do is make too many major financial decisions too quickly, only to find your business cash-strapped and in need of major downsizing a few quarters down the line.
That’s why I urge many of the CEOs I work with to go easy on scaling when times are good and refrain from making major spending decisions without a clear understanding of what’s driving their business.
I get it – when times are good, it can be tempting to promote quickly and to scale as fast as possible. But resist that temptation at all costs because many times, decisions to scale cannot be easily revers. For example, wage increases are extremely hard to walk back and will likely result in employee turnover.
The cure to this problem is a clear roadmap—one that accounts for the drivers of your business’ growth and also forecasts at least several quarters in advance.
With this roadmap in hand, you and your team will be far less likely to fall into the trap of reacting based on current business conditions, which will definitely help put your business on the path to long-term growth.
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