Four competing goals must balance to sustain a company. Focusing too much on any one of these goals can lead to problems that may not endanger the survival of a small business but can make entrepreneurs seriously question their Whys.
Sooner or later every business struggles to survive, some more often than others. Some don’t make it.
To keep a company going, four competing requirements must balance to find the “sweet spot” of sustainability. These requirements are not exactly what they teach in business school, which is geared to make you a better employee—managers, directors, and board members are still employees. I’m talking about what I’ve learned in the entrepreneurial school of hard knocks. As shown in the graphic, the four competing but interdependent goals are:
- Growth
- Leverage
- Cash Flow
- Equity