When Shooting for Growth Can Leave You Broke
What is the right way to determine how fast to spend when cash flow is negative? Read about how the confluence of market predictability, execution confidence and forecasting acumen affect good decision making. These three big variables must be taken into account long before the runway grows short.
Misjudging the market’s reaction to a new product or service is bad news. Worse, is misjudging your team’s ability to execute on delivering that new product and service. If either happens in a negative cash flow situation, the result can be deadly. This post suggests an approach to determining the right pace at which to spend, when more cash is going out than is coming in.
Tags: business planning, cash flow, financial performance, revenue generation, strategy
Robert Sher is founding principal of CEO to CEO, a consulting firm of former chief executives that improves the leadership infrastructure of midsized companies seeking to accelerate their performance. He was chief executive of Bentley Publishing Group from 1984 to 2006 and steered the firm to become a leading player in its industry (decorative art publishing).