Sales are up, acquisitions are being made, and capital investments are increasing. Companies are experiencing growth again and looking to keep the momentum going.
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But there's a chance that the growth we're seeing isn't good for everyone. Growing too rapidly can quickly set your company up for the same catastrophic declines we saw during the Great Recession.
The wholesale distribution industry is heavily reliant on cash and relationships. If your company expands too quickly, it may not be able to maintain healthy cash positions, and it ultimately may damage those important relationships by limiting the level of customer service it is able to provide to customers.
A recent post from the National Federation of Independent Business identifies five signs your business may be expanding too quickly. These include:
- Your technology can't keep up with the increased demand
- Hiring for quantity, not quality, just to keep pace
- Clients feel underserved
- Vendors and suppliers are overwhelmed
- You have a problem with cash flow
If you notice any of these signs, however, it's not the end of world. The NFIB also suggests ways to address the problems once they've been identified.
Read about those solutions and more at NFIB.com.