The growth rate your balance sheet already chose

Two businesses with identical profits can afford very different rates of growth. The difference isn't appetite or ambition. It's a ratio most owners have never worked out.

By Steve 5 min read
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Two firms in the same sector, the same size, earning the same net margin, will often give very different answers to one question: how much bigger can we be next year without asking anyone for money? One can add forty per cent. The other struggles past ten and spends the year feeling inexplicably poor. Neither difference shows up in the profit and loss account. Both are visible on the balance sheet, and both were largely settled before the growth plan was written. Growth is bought by the pound of revenue…

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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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