Growth consumes cash. The businesses that survive it are the ones that planned the funding before they needed it.
Profitable companies fail every year, and almost always for the same reason: growth outran working capital. Revenue is not cash, and an order book is not a bank balance.
Forecast cash, not just profit
A thirteen-week rolling cash forecast is the single most useful document a growing business can maintain. It turns a vague worry into a dated number.
Arrange facilities before you need them
Credit is offered most readily to those who do not urgently need it. Put facilities in place while the numbers look strong.
Separate the founder from the company
Personal guarantees, director loans and undocumented drawings quietly concentrate risk on one person. Review them annually.
Protect the people the business depends on
Key person and shareholder protection cost little relative to the disruption they prevent.
