What 'financially-sustainable growth' looks like
The era of 'growth at all costs' is gone.
We have seen companies that grow, but are not profitable.
We have seen companies that grow, are profitable, but are not cash flow positive.
We have seen every permutation of the above variables, and still find ourselves trying to figure out what financially-sustainable growth is.
First we need to sure we understand what it doesn't look like, i.e., identify the fluff.
Financially-sustainable growth does not look like a large facility or a top floor office downtown.
It does not look like an expensive gift to employees at the end of the year, or unlimited PTO.
It does not look like swag, a 30 under 30 article, or an IPO.
It does not have the CEO flying private, being invited to a conference, or having an "impeccable" earnings call.
It is not beautiful websites, ping pong tables at the office, or stays in luxury hotels.
It is not long meetings, a 'work hard / play hard' shirt, or punctual townhalls.
It is not regularly updated LinkedIn posts, or being fixated on competitors, or perfectly aligned slides during the eight-hour long board meeting.
[It is definitely not eight-hour long board meetings].
What financially sustainable growth looks like is:
· strong profit margins
· stern competitiveness
· a relentless financial management system, and
· an unwavering long-term view.
The list is simple. The orchestration is the challenge.
Solve for the challenge and you will get financially-sustainable growth in your business.
If you have or your organization are having issues managing growth, feel free to reach out to us at contact@summa.consulting to learn about ways we can help you.