CORE COURSE / 059

What Needs to Change as a Business Grows?

Prepare people, processes, capacity, and cash before accepting more business.

What you will learn

  • Identify the current constraint on delivery.
  • Document work without making the process rigid.
  • Test whether growth can be funded and sustained.

Growth multiplies unfinished problems

More orders increase every repeated activity: scheduling, purchasing, delivery, billing, and support. If one person remembers all promises, that person becomes a bottleneck. Map a typical order from agreement to payment and identify where work waits. Count capacity in a relevant unit, such as meals per oven batch or repairs per technician hour. Sales capacity and delivery capacity are different. A business can attract more customers than it can serve. Before expanding, decide which promise must remain reliable and what volume can be handled without exhausting staff or borrowing time from essential quality checks.

Write the work so another person can perform it

Document the few steps whose omission would create an expensive mistake. A useful procedure states the starting information, the action, the standard, and the point at which someone must ask for help. For a custom print order, this may include approved artwork, quantity, paper type, a checked sample, and permission before full production. Avoid a manual so elaborate nobody uses it. Ask another person to follow the instructions on an ordinary job, then revise the confusing step. Give the person enough authority for routine decisions and a clear route for exceptions. Documentation supports judgment; it does not replace training.

Follow the cash as well as the sales

A larger order can consume cash before generating it. Imagine materials cost 600 units today, wages of 400 are paid next week, and the customer pays 1,300 in six weeks. Ignoring other costs, the order has a 300-unit contribution after those costs, but requires 1,000 units before collection. More similar orders can enlarge the temporary cash gap. Prepare a week-by-week forecast including existing bills, expected receipts, tax obligations, and uncertainty in payment dates. Do not assume unpaid invoices are available cash. Consider the operational effect of a late payment before committing to additional fixed expenses.

Expand through a controlled capacity test

Try the new process on a limited volume and define what would justify the next step. You might observe turnaround, rework, customer complaints, cash balance, and working hours for four weeks. Choose a threshold before seeing the results so enthusiasm does not move the goalposts. Hiring, equipment, outsourcing, and narrowing the product range solve different constraints. Buying a faster printer will not fix delays caused by unclear customer approvals. Check applicable employment, safety, licensing, and tax requirements with appropriate local sources before changing operations. The goal is a repeatable service that survives ordinary variation, not one heroic week that nobody can sustain.

FICTIONAL PRACTICE CASE

Fictional case: A print shop tests a larger order book

In this fictional example, Omar operates a small print shop and receives an offer to double weekly orders. He initially wants a second printer. Tracking five jobs reveals that most delay occurs while clients approve artwork. He creates an approval form and a visible production schedule, then tests a modest increase in volume.

He also sees that paper must be paid for before several customers settle invoices. The expansion would exceed his available operating cash if two payments arrive late. Omar negotiates clear payment stages where appropriate and delays a larger commitment. His test improves throughput, but he keeps reviewing cash and working hours before calling the expansion successful.

Put it into practice

  1. Map one order and mark its longest wait.
  2. Write a one-page procedure for a high-risk repeated task.
  3. Forecast receipts and payments weekly for a proposed volume increase.
  4. Set a four-week capacity test with explicit continuation limits.

Check your understanding

What does a profitable large order automatically guarantee?

Further reading

My notebook