Owl Bookkeeping and CFO Services Logo White
Expert Bookkeeping At An Affordable Price

Sustainable Sales Growth

Q: How can your business make more money?

A: Increase sales.

Simple, right?

Not so fast, Speedy. Growing too much, too fast can put a strain on your cash flow. Strain it excessively, and you will have grown yourself out of a job.

Here is a simple formula to help you determine how much growth is safe to pursue given your current operating cash flow:

Net income / (net worth – net income)

I know, I’m making you do the math. But even the most math-shy among you should be able to crank this one out.

For example, let’s say your company had a net income of $275,000 last year. And say you ended the year with a net worth of $2,500,000. Your sustainable growth rate would be 275,000 / (2,500,000 – 275,000) = 12%.

If you grow more than 12%, you will need to free up some cash. And unless you have a rich uncle, this could mean increasing debt, cutting operating costs, or raising prices. Any cash-freeing strategy requires careful consideration and carries the risk of sabotaging your progress.

It’s worth noting that this formula assumes that your organization’s current performance is desirable.

If this is not the case, that does not mean you’re unworthy of considering sustainable sales growth. It just means that the formula is of limited use to you at this moment.

We hope that soon you’ll soon be saying “Gahhh! I’m growing too quickly! I’m far too awesome! Slow down!” (P.S. Want to get there faster? We have a few ideas for you.)

Don’t stop here. Be sure to check out some of our other accounting resources.

Owl Bookingkeeping Home
We have found that the cost savings and efficiencies of working with a company like Owl is more beneficial than hiring our own in-house employee.
With Owl’s in-depth knowledge of our business and an awesome attitude, our business continues to run smoothly.
Owl staff understands not only the financial side of business but is able to coach us on other aspects of business decisions and to help us define alternatives.
The attention to detail, coupled with an understanding of and willingness to dig in to our unique systems and processes has kept us running smoothly.
Previous slide
Next slide

Learn More About How OWL Can Help You

Owl Bookingkeeping Home Icon


Whether you need help with accounts payable, payroll or your monthly close, our accountants ensure these critical tasks are completed accurately and on time.

Owl Bookingkeeping Home Accounting Icon


When your books are up to date, you can respond to opportunities and challenges quickly. Accurate, bank-ready financials allow you to make better decisions for your company.

Owl Bookingkeeping Home Financial Planning Icon

Financial Planning

Gain access to powerful insight typically only available to companies that employ a full-time controller or CFO. Leverage their expertise when you need it, without adding to your payroll.

Freedom to Focus on Your Business

Our Partner Organizations →

Burns Engineering
Cooks Bellecour
Norway House
owl booking keeping deep see logo
Grey Ghost sound
owl booking keeping evo communication logo
Landlord Resource Network Logo
The Mad Hatter Tea House Logo
Pavement Resources Logo
Medical Alley Logo
Growing Edge Logo
La Boulangerie Marguerite Logo
Claire Givens Violins INC
Asian American Organization Project
Beyond Words Co
Access Philanthropy

Get the Full View of Your Business Financials

Just like an owl can turn their head 270 degrees to see the whole landscape, Owl Bookkeeping and CFO Services can help you see your full financial picture.

Call us today: (612) 816-6007