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My limited company is growing

Revenue is rising, complexity is rising faster, and the finances feel improvised.

Portrait of Daniel Mercer, founder and writer of Founder Finances

Daniel Mercer

Founder & writer — writes from experience

Growth exposes weak systems. What worked at ten invoices a month falls apart at sixty.

This stage is about instrumentation: a monthly dashboard, defined spending controls and a forecast you actually maintain.

What to fix first

  1. 1

    Build a monthly dashboard

    Six to eight numbers, same format, every month.

  2. 2

    Formalise spending control

    Limits, named cards and receipt capture before the team grows.

  3. 3

    Protect margin as volume rises

    Check gross margin by service line, not just total revenue.

Your seven-day plan

  1. Day 1

    Choose the monthly dashboard

    Settle on a small set of numbers: cash, invoices due, bills due, gross margin, payroll and tax reserve.

  2. Day 2

    Assign data owners

    Decide who updates invoices, receipts, payroll inputs and bank reconciliation before month end.

  3. Day 3

    Review customer concentration

    Calculate how dependent next-quarter cash is on one customer or contract.

  4. Day 4

    Map spending authority

    Set approval levels and receipt requirements before more people can spend company money.

  5. Day 5

    Run a hiring scenario

    Add the full monthly cost of a proposed hire to the forecast before issuing an offer.

  6. Day 6

    Run a purchase scenario

    Compare the purchase with the cash floor, its ongoing cost and the cash it is expected to produce.

  7. Day 7

    Hold a monthly finance meeting

    Review actuals, forecast changes, decisions and owners in a short recurring meeting.

Numbers and documents to collect

Current management figures
They reveal whether growth is improving margin as well as revenue.
Thirteen-week forecast
It tests timing pressure behind growth decisions.
Spending-policy draft
It sets authority and evidence rules before delegation expands.

Revenue rises but the cash floor falls

A company wins more work but has to pay suppliers and staff before customers settle invoices. The dashboard shows revenue rising while the forecast low point falls below the agreed cash floor.

The next action is to change deposits, terms, cost timing or the delivery plan—not to assume the extra revenue makes the decision safe.

Common mistakes and red flags

  • Revenue is rising while gross margin falls.
  • New hiring or purchases rely on uncontracted sales.
  • No one can explain who approved a recent company cost.

Get professional help now if…

Growth is creating repeated late payment to suppliers, tax shortfalls or pressure to use personal credit. Obtain financial and, where appropriate, insolvency or debt advice before adding liabilities.

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When this path is not the right one

  • If margins are falling as revenue rises, fix pricing before adding cost or credit.

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