As we were rapidly expanding, we were also spending a ton of money on salaries, marketing, and administrative expenses.
Even though we were bringing on more clients than ever before…
Our profit margins were thin and we almost had to take loans to pay our monthly bills. Put simply, we were “growing broke” as Verne Harnish explains in his book Scaling Up.
The problem was we had nobody on top of our financial statements. We had a bookkeeper. But, all they kept telling us to do was “cut expenses” with very limited insights.