HOW TO GET OVER THE HUMP? (ESPECIALLY IN A MANUFACTURING BUSINESS)

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?



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