Scaling Product Start-ups Without Killing the Cashflow
British Design Fund’s Blog Posts.
Never is the maxim, “cash is king” more relevant than when scaling an early stage product business. Get it wrong and you can end up over trading; generating more demand for your product than you can handle. A problem that, in the same way as achieving poor demand, can lead to the end of any business.
- Typically, a product business may struggle to meet demand due to:
- Capacity issues – these are spawned from having insufficient manufacturing capabilities that are needed to meet the growing demand for your product.
- Operating issues – these are to do with the overall process of making and selling the product. An operating cycle relates to the period of time taken from making an initial outlay of cash, through to closing the sale and getting money in from the customer.
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