How Fast Can I Regrow My Company?

You have just made it through some of the toughest times our country has ever seen economically. Business is starting to pickup. You have an opportunity to pick up some new business, but you are unsure if you can handle the new business. Your lender is most likely going to be reluctant to lend additional funds to fund the growth so you must be careful. How do you decide to accept or reject the new work? First, since you have been following our directions, you will have a detailed cash flow analysis. From this report you should know how much positive cash flow you have to work with. Question number one is can I provide enough cash flow from existing business to complete the additional work? If the answer is no then you must find additional funds or turn down the work. If you believe your existing business can provide the additional cash required to complete the work then you move on to question number two. Is it worth it? Do the profits of this new work meet or exceed that of your existing work? What happens if they don't? You should not take on work that has the potential of producing less profit and negative cash flow. It has been a long time since you felt prosperity and this project feels right, but make sure your decision is measured. I am not saying do no take the order, but to choose wisely. Every project has its own Return On Investment (ROI) and Cash Flow. Analyze both of them carefully before jumping into an expansion project.