Your best year in business might also be your most dangerous.
Revenue is up. Sales are strong. The backlog is full. You're hiring, buying equipment and taking on bigger customers.
So why is there less cash in the bank?
In this episode of Weeks Weekly with Ed Weeks Jr., Ed breaks down one of the most misunderstood problems in a growing business - growth consumes cash before it produces cash.
Using the example of a $5 million business growing toward $6 million, Ed explains how payroll, equipment, materials, receivables and customer payment terms can create a working-capital squeeze even while the income statement looks great.
You'll hear why owners should pay attention to:
• The cash conversion cycle • Working-capital requirements • Receivables and payment terms • Customer concentration • Margin quality • Owner dependency • The difference between growing revenue and growing business value
Because the real question isn't simply whether your company is getting bigger.
Is it becoming a better business — and is it creating more options for you as the owner?
Ed also explains why these issues matter long before you're thinking about selling. Lenders, investors, partners and eventual buyers all evaluate the quality of growth differently than an owner looking at top-line revenue.
Weeks Weekly with Ed Weeks Jr. is for owners of established $2M–$20M+ businesses navigating growth, capital, acquisitions, succession and M&A.
Most owners do one major deal. The other side does it for a living.
Not sure what your next move should be? Take the Business Optionality Assessment: edweeksjr.com/assessment
Weeks Consulting Group: edweeksjr.com
Weeks Weekly: weeksweekly.substack.com
Build a more valuable company. Create more options.