How do I know we're overexpanding our small manufacturing run?
#1
I’m facing a real dilemma with my small manufacturing business. We’ve been burning through cash trying to scale up production before securing enough confirmed orders, and now I’m worried we’ve made a classic overexpansion mistake. How do you know when you’re being ambitiously optimistic versus just reckless with your runway?
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#2
I’ve been in the same boat. Watching burn rate creep up while orders stay uncertain makes the line between ambition and recklessness feel razor thin. The moment I knew we crossed it was when I started penciling cash on a calendar and staring at the runway instead of a forecast.
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#3
We tried adding shifts to speed up, and the pile of components grew faster than our invoice queue. It bought a month or two of confidence but left us staring at a bigger weekly cash burn. I’ve not slept through a Friday in weeks.
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#4
As for what separates optimism from risk, I clung to a few hard numbers: burn rate per month, current backlog, and supplier terms. When the backlog didn’t cover the burn and supplier payments pressed, I started doubting. Still not sure it’s the right lens.
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#5
What if the real problem isn’t demand but throughput bottlenecks in the line?
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