"Growth is thrilling until the numbers become illogical. Orders increase, revenue rises, and the team grows, but for some reason, money becomes more scarce and choices become more difficult. This gap between apparent success and real financial health causes many ambitious businesses to falter just when they ought to be growing. Poor visibility into what the money is actually doing is nearly always the culprit."
"Everything is altered by scaling. That innate understanding of finance deteriorates as transaction volumes rise and complexity increases. Founders who used to mentally keep track of everything now get reports that seem detached from everyday life. Activity and information start to lag more and more. Problems have been festering for weeks or months by the time they show up in the numbers."
"A risky paradox is created by this visibility gap. Compared to earlier times when the stakes were lower, businesses now have to make larger decisions with more significant repercussions while having a less clear understanding of their financial situation. Plans for hiring are based on out-of-date forecasts. Incomplete data is used to evaluate investment opportunities. Cash reserves that appeared sufficient abruptly disappear."
Rapid growth can produce rising orders, revenue, and headcount while making cash and choices more constrained. Founders’ intimate understanding of every pound erodes as transaction volumes and complexity increase. Reports begin to feel detached from daily operations, and activity and information lag, allowing problems to fester unnoticed. The resulting visibility gap forces larger, higher-stakes decisions based on out-of-date forecasts and incomplete data, turning apparent reserves into sudden shortfalls. Simply adding accounting headcount or more reports often addresses symptoms without speeding insight or improving decision clarity.
Read at Business Matters
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