When business gets tough, one of the most common answers is:
"We just need more sales."
Sometimes you do.
But sometimes selling more can actually make the problem worse.
Sales Aren't the Same as Profit
If your margins are too low, selling more low-margin work simply gives you more work without necessarily giving you much more profit.
Before chasing additional sales, understand what you're making from the sales you already have.
Growth Needs Cash
Growing businesses often need to spend money before they receive it.
You may need additional:
stock
materials
wages
vehicles or equipment
subcontractors
premises.
Meanwhile, customers might not pay you for 20, 30 or even 60 days.
That means a rapidly growing business can actually experience more cashflow pressure, not less.
Do You Have Capacity?
There's also a point where more sales create operational problems.
Your existing team becomes overloaded. Overtime increases. Mistakes happen. Customer service slips. Jobs take longer.
Eventually, the extra revenue comes with extra costs.
Before pushing for growth, ask whether your current systems and people can handle it.
Fix the Leaks First
Sometimes the better opportunity is already sitting inside your business.
Could you:
improve your margin?
increase prices?
reduce wastage?
invoice faster?
collect debtors sooner?
improve staff productivity?
stop doing unprofitable work?
A 2% improvement in margin across your existing sales can sometimes be far more valuable than chasing another large chunk of turnover.
Grow the Right Way
We're certainly not against growth.
But profitable, sustainable growth is very different from simply increasing turnover.
Before deciding you need more sales, make sure you understand the problem you're actually trying to solve.
At Cross Group, we help business owners look beyond turnover and understand what's really driving their financial performance.
More isn't always better. Better is better.
Let's have a chat about what your numbers are telling you.