Hello and welcome to Business 300. My name is Philip Kulenshov and this is 300

seconds about business. We're all a busy people, so I have five minutes or less to get my point across.

We're almost done here.

This is part four in this mini series on choosing growth or cash.

The first three parts were about what you should expect and do if you choose to grow your business.

In short, because I know each of those episodes were too long, if you want to grow your business, expect your cash to be lower.

That's because growth takes resources.

It takes cash.

So you need to make sure you'll have enough of it.

But what if you choose not to grow?

What if you look at your context and decide that you're content with the current size of your business?

If growing requires cash, what should you do if you want to cash in and stop growing? First of all, this doesn't have to be a permanent decision. It's actually good and healthy

if you let your business go through this season from time to time.

Growth in business is not linear, and it shouldn't be. Business growth is like walking up a

flight of stairs. There's a rise, and then there's a plateau. A linear ramp at the same degree as a flight of stairs is very difficult to climb. So is consistent

growth. Even if your intention is to keep growing your business, you want to control that growth

by allowing room for the plateau. On the plateau, you let your business breathe and reap of the

fruit of the growth. Three things should happen during the plateau stage. let your business breathe and reap of the fruit of the growth.

Three things should happen during the plateau stage.

First, your cash flow increases.

This happens because your working capital stabilizes.

You're not reinvesting into your business by increasing your capacity in hiring more people.

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