Growing or hiring

Where to begin

• Choose a measurable growth goal and check whether demand, capacity and cash support it. Estimate a cautious case as well as the expected case.

• Forecast the timing of inventory, salaries and customer payments. Compare financing by total cost, repayment, security and any ownership given up.

• Before hiring or expanding, check obligations for the role, business form and location with a qualified adviser.

Test whether expansion is affordable

Separate one-off expansion costs from ongoing costs such as wages, rent and maintenance. Forecast when orders are paid and when suppliers expect payment; rapid growth can create a cash gap even with strong sales. Compare a cautious scenario with the expected one.

If finance is needed, match the term to the use and compare total repayment, security and conditions with the expected cash flow. Equity brings a different trade-off: founders may give up ownership and accept investor expectations. Check employment and location-specific requirements before commitments.

Go deeper

• Choose funding
• Find professional help
• Find markets and networks

Choose more stages and concerns