Many of the businesses that I look at are at a sort of inflection point in their development. Owners feel that they are on the cusp of a strong expansion, but they are also caught in a loop. They need to hire more people to fulfill orders, but they need cash from order fulfillments to hire people. This is especially pronounced in a small niche manufacturer because they also have to spend capital on parts and supplies to fulfill orders.
I have several questions about this loop or hump -- well, my first question is whether there's a name for it. It is very common for the size of business that I have been searching, so I expect there must be a name for it and research on it.
Second, where can I find literature on how to overcome the hump while minimizing debt and risk?
Third, does anyone here have insights to offer on the general problem and steps toward solving it?
How to get over the hump? (especially in a manufacturing business)
by a searcher from Carleton College
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