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Small-business growth: protect cash conversion before accepting the larger order
Sales growth can create a financing problem
A larger customer order is often treated as proof that a small business has reached its next stage. It can also expose the company to a gap between paying suppliers and collecting from the buyer. For SMEs working across BRICS markets, the quality of growth therefore depends on the commercial terms attached to the order. Revenue matters, but a company must also fund materials, labor, delivery and the consequences of delay. An attractive margin on paper does not pay those bills automatically.
The modern opportunity for founders and service providers is to make cash conversion visible before capacity expands. That can involve better order controls, invoice processes, purchasing discipline and suitable financing. It does not require treating every business as a candidate for outside equity.
Separate profitability from timing
A company…
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