The growth ceiling you agreed to in your payment terms

Profitable, order book full, bank balance falling: there is arithmetic behind that combination, and it sets a ceiling most growth plans never test against.

By Steve 5 min read
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A business can be profitable, winning work, and running out of money at the same time. It is one of the few genuinely counter-intuitive things in commercial life, and it catches capable operators repeatedly, usually in the best year they have ever had. The order book is full, margins look intact, and the bank balance is drifting down. The instinct is to blame collections, or a bad month, or one slow-paying client. Often the real explanation is structural: the growth rate the business is attempting is higher than the growth…

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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

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