How Much Should You Risk for Growth?
When is accelerating spending on growth initiatives prudent or just a drain on the bank account? Mid-market firms can spend too much too fast, or spend too little too late. It’s like the driver who braves oncoming traffic to pass in the passing lane—misjudging speed, distance and timing can be deadly.
Unless management can incisively gauge the speed with which their expenses and revenues are likely to grow, mid-market companies with robust growth face the prospect of running out of money and all its ugly consequences. Click here to download and read the newsletter.
Tags: business acumen, cash flow, financial performance, 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).