What expansion costs.
WHAT GROWTH CONSUMES
Cash, before it produces any.
WHY
Stock, staff, equipment and marketing are paid for before the resulting revenue arrives.
WHAT TO CALCULATE BEFORE GROWING
How much cash the growth requires When it returns Whether you have it
WHAT TO MODEL
The cash position month by month through the expansion.
WHAT TO LOOK FOR
The lowest point.
WHY THAT POINT
It is what determines whether the plan is possible.
WHAT TO ADD
A margin, because it will be worse than modelled.
WHAT COSTS PEOPLE UNDERESTIMATE
Time before new staff are productive Recruitment cost Additional management required Systems that must change at scale
WHY SYSTEMS MATTER
What works at one volume frequently fails at several times it.
WHAT TO ESTABLISH
At what point current arrangements break.
WHAT THRESHOLDS TO WATCH
Statutory obligations that begin at defined sizes Audit requirements Premises capacity Tax band changes
WHAT TO SEQUENCE
Growth in steps, with the cash position checked at each.
WHY IN STEPS
It allows stopping.
WHAT TO AVOID
Committing to fixed costs based on expected revenue.
WHY
Costs commit immediately and revenue does not.
WHAT TO PREFER
Variable arrangements until volume is proven.
