Five business growth myths

The assumptions that can limit sustainable growth – and what to consider instead

Growing a business can be one of the most exciting parts of being an owner – but it is also an area where common assumptions can lead you astray. Growth should strengthen your business, not place unnecessary pressure on its cash flow, people or systems. At Murray Nankivell, we work alongside business owners to develop practical strategies that support sustainable growth and profitability. Our Business Advisory service takes a holistic view of your business, bringing together your goals and financial data so you can make confident, informed decisions.

Here are five common growth myths we see – and what to consider instead:

1. “Bigger is always better”

Investing in larger premises, new equipment or more sophisticated systems can support growth, but bigger does not automatically mean better. An investment only adds value when it responds to genuine demand and is backed by the right strategy, systems and financial capacity. Otherwise, it can tie up working capital and increase costs without improving profitability.

What to do instead: Define what you want to grow – profit, revenue, capacity or market share – then assess each investment against that goal, its likely return and its effect on cash flow.

2. “More sales will fix everything”

It is easy to assume that increasing sales will automatically solve cash flow problems. However, additional sales often bring additional costs – such as more staff, higher inventory levels, longer fulfillment timeframes or customers paying on extended terms. Without careful planning, rapid sales growth can increase financial pressure rather than relieve it.

What to do instead: Prepare cash flow forecasts for different growth scenarios before committing to larger orders, contracts or increased sales targets.

3. “My accountant will handle growth for me”

An accountant can play a valuable role in business growth, but strategy is not something to hand over entirely. Compliance accounts and tax returns largely look backward; growth decisions also require clear goals, current financial information, forecasting and operational insight. The strongest results come from a genuine partnership between business owner and advisor.

What to do instead: Meet with your advisor throughout the year, not just at year-end, and bring your operational goals and challenges into the conversation.

4. “Debt means failure”

Debt often gets a bad reputation, but borrowing is not inherently good or bad. Used carefully, finance can help fund expansion, equipment or technology that improves the business. What matters is the purpose of the borrowing, the structure of the finance, the expected return and the business’s ability to service the debt.

What to do instead: Work with your advisor to test the proposed borrowing against realistic cash flow forecasts, including what happens if revenue or costs do not go to plan.

5. “Cash in the bank means the business is profitable”

Cash flow and profit are both essential, but they measure different things. A healthy bank balance at a point in time does not necessarily mean the business is profitable, just as a profitable business can still experience cash flow pressure. Sustainable growth depends on understanding and managing both.

What to do instead: Track cash flow and profitability separately, and review both regularly against your budget and key performance indicators.

How Murray Nankivell can help

Growth is not just about getting bigger – it is about building a stronger, more sustainable business. Murray Nankivell can help you challenge assumptions, identify opportunities and develop a growth plan that supports your long-term goals.

👉 Looking to grow your business or reassess your current strategy? Contact us to discuss a strategic review and plan your next steps.