Mike AndesFounder, Augusta Lawn Care and Homeworks · Founder of Homeworks and Augusta Lawn Care

Growth Sucks Cash!

23 Feb 2023 · 0 min

Watch on YouTube

0:25

This is a short excerpt from a YouTube video by Mike Andes arguing that rapid business growth—particularly when financed with debt—can drain cash, strain management and operations, and potentially cause financial failure. The speaker warns against assuming that because large companies use debt, every company should borrow to grow quickly.

Just because someone is big and uses debt does not mean everyone should go into debt in order to grow quickly. Growth sucks cash. And at the same time, you're growing and expanding and presenting all sorts of new challenges to you. Your business style, your management skills. And at the same time, you're cash strapped because all the cash is going out the door. It can lead to financial suicide.