Scaling Up

“A Country with Gazelles Excels”

Most companies start and stay small. But a few small organizations, “mice,” take off, enjoy rapid growth and eventually break through the $1 million, $10 million and even $100 million barriers. Some go on to join the “elephants” – the world’s largest firms, representing just 1% of all companies. Between mice and elephants, you find the rare “gazelles” – the 2% to 3% of all firms that are responsible for nearly all of a nation’s new job creation and innovation. Ninety-six percent of US companies are small firms that earn less than $1 million in revenues. Gazelles must rely on solid processes to survive. Successful gazelles form and follow good habits to avoid the pitfalls that confront every rapidly growing company. They focus on four critical areas of business: “people, strategy, execution and cash.”

King Cash

For most growing companies, when cash flow slackens or stops nothing else matters. Excellent leaders and teams or brilliant strategy can’t save a firm with cash troubles. Only cash enables you to grow, but nothing consumes cash faster than growth. Collect receivables as quickly as possible, tighten up your accounting...