Handling an Affluence

Clarity, Growth, Freedom

HANDLING AN AFFLUENCE

Without question the most dangerous time for a company and the owners, is when it is in a condition of Affluence. That is, income is rising sharply, delivery is booming, staff are being hired and expenses are generally being added.

The general human reaction is to think one is rich and start buying expensive cars and adding other expenses.

During a period of rapid growth where sales, production and income are going up, it should be a policy that financial control gets EXTREMELY TIGHT.

This is the most dangerous period.

Money must be saved at all costs, bills must be paid, any remaining money invested into creating more work and production. If this is done we will come out of the growth period with a real surplus and funds to put into further expansion and delivery facilities.

by Oisin Grogan