Growth or profits?
That’s a dilemma that every successful entrepreneur will encounter at some point.
For some business owners, profit is the priority right out of the gate. For others, profit is secondary to growth and can stay that way for years. Everyone, though, must eventually decide how to address the growth vs. profit question to achieve long-term success.
Some companies begin by hiring staff and investing in office space, computers, and other resources to enable their work. That costs money, but the sacrifice in profits can lead to heavy growth.
When a loyal client-base is developed, a critical question comes into play: Does the company keep growing aggressively or turn the focus to profit?
To keep growing at a rapid pace, a company will need to invest revenues into additional hiring and other resources. For profitability, a company will scale back hiring and other expenses.
Choosing between growth and profit requires an analysis of many different factors. How much cash is available to finance growth? How much does success of the venture depend on fast growth? How much will investment in equipment and machinery now pay off down the road?
The path to growth and the path to profit each have pros and cons and depend heavily on an individual company’s goals and the market it is in.
Is there a path, though, that can lead to growth AND profit? For some businesses, there is!
It’s the path of invoice factoring. If a business qualifies (which many do), invoice factoring can provide the cash to finance growth while enabling the business owner to pocket a profit as the company expands. It’s the best of both worlds!
Invoice factoring companies, such as Universal Funding, can provide an unlimited supply of consistent cash which can be used to hire more people, invest in more equipment, fund growth and generate profit.
My advice to all entrepreneurs is to think through your company’s strategy and goals and decide if achieving growth and profit, at the same time, is desirable. If so, contact Universal Funding to see if you qualify for invoice factoring and to find out how much money can be deposited into your account every month.
Why decide to shift focus from growth to profit when you can have both?