3 CFO-tested financial strategies for sustainable business growth

Scaling may be the top priority for Australian businesses – but it’s not growth at all costs.

For many Australian businesses, expanding too fast – or without the right financial infrastructure – can put serious strain on their cash flow, working capital, and long-term stability.

While 83% of CFOs ranked revenue growth as their number one goal in Deloitte’s latest survey, it was closely followed by cost control (72%) and financial performance (67%). The message is clear: growth must be matched by capital efficiency and financial discipline.

For CFOs, the challenge is not just to fuel expansion, but to fund it intelligently. That means understanding your business’s limits, planning for uncertainty and opportunities, and structuring finance in ways that keep the organisation agile and cash flow positive.

 “It’s about understanding the key drivers of your business, the range of growth scenarios you might face, and having the flexibility and options in place to respond,” says Campbell McCallum, CFO at Octet. “Because nothing is ever set in stone.”

To achieve sustainable business growth, CFOs are leveraging financial strategies that let them scale without putting unnecessary pressure on cash flow.

“Understanding what the growth profile means for cash is hugely important. You might triple your revenue over a six- or twelve-month period, but you’ve got to be able to understand what needs to be in place to support that,” says Campbell.

“There are many examples of good businesses that have got into problems because they’ve grown too quickly. It can seem like a paradox – how can a business growing fast run into trouble? But it happens when the cash requirements increase significantly and the funding options are not in place to manage that growth.”

The Rate-Direction-Method (RDM) framework – developed by Gary Pisano, Professor of Business Administration at Harvard Business School – helpful for determining a business’s sustainable growth rate. The framework helps CFOs can pressure-test the trade-offs involved in growth plans, including:

•  Is the rate of growth realistic, based on cash flow, talent, and operational capacity?
• Is the direction of growth aligned with the company’s existing strengths and market position?
• Is the method of scaling – whether organic, acquisition, or partnership – consistent with the company’s financial and operational model?

Campbell points out that a key factor in determining a business’s sustainable growth rate is understanding when cash is going out versus when it’s coming in, because growth often requires investment well before returns are realised.

Scenario planning has traditionally been viewed as a risk management tool, but it’s increasingly a method to pressure-test strategy and act with confidence when opportunities arise.

Campbell explains “Planning and forecasting is not an exact science. But it’s important to use planning to really understand:

“At Octet, we present different cases of growth to understand what that ultimately means for financial performance and liquidity (cash),” he says.

The real value of scenario planning lies in exposing trade-offs early: where to invest, how much risk to take on, and what kind of funding supports the path forward. It shifts decision-making from reactive to proactive – helping CFOs avoid overcommitting based on best-case assumptions. Done well, it ensures CFOs have a clear view of when, how and why to deploy capital – and what to do if conditions shift.

Scenario planning becomes especially powerful when managing the relationship between growth and cash flow – a constant challenge for mid-sized businesses. “You need to understand the scale of the potential cash flow gap under different growth scenarios, because it can change materially depending on how quickly you’re growing,” says Campbell.

Campbell says that’s where good businesses can run into trouble. “The cash demands can become too great, too quickly, and without the right funding options in place, they outgrow their ability to deliver. It’s about knowing your business drivers, modelling a range of scenarios, and having the flexibility to support growth and respond to opportunities and challenges – because nothing is ever set in stone.”

Even well-planned growth consumes working capital. Marketing, hiring, and building up inventory all tie up cash before they deliver returns. It’s no surprise, then, that 60% of Australian SMEs cite cash flow as a barrier to growth, according to research from CommBank.

This reflects the dual mindset required for sustainable expansion: continue investing in the future, while protecting liquidity today. But cost control doesn’t have to mean pulling back on growth initiatives. As one CFO told Deloitte, “Our strategy emphasises the importance of pursuing cost control alongside revenue growth. [...] It is a very delicate balance.”

That means making smarter decisions about where and when to invest – and ensuring spending is aligned with strategic priorities. Many CFOs are taking a longer-term view, focusing on operational efficiency, systems upgrades and workforce productivity to support scalable growth.

Strategic business finance has a central role to play here. With accurate cash flow forecasting, CFOs can be prepared when pressure points or opportunities emerge – and take action early. That could mean renegotiating supplier terms, adjusting hiring timelines, or using finance to bridge working capital gaps. The aim is not to slow growth, but to support it without introducing unnecessary financial strain.

“For organic growth, it's about making sure you’ve got the cash – or funding options – in place to support it. Many of our clients don’t need funding every day. But having facilities in place gives them the flexibility to move quickly when they do,” says Campbell. “You might only use your facility once or twice a year, but it can make a real difference when opportunities or cash flow gaps arise.”

Sustainable growth isn’t just about spotting opportunities. It requires a business to be structurally ready for changes – financially, operationally, and strategically. For CFOs, that means balancing ambition with a clear view of the company’s financial capacity and risk exposure.

There’s no universal playbook. But the businesses best positioned to grow will be those where CFOs take an active role in shaping direction, guiding investment and maintaining stability as the business scales. That means:

• defining a sustainable growth rate
• using scenario planning to test key decisions
• strengthening cash flow visibility to support growth without putting business resilience at risk.

“If you asked any small business owner or CFO what they thought of delivering significant revenue growth, 99 out of 100 would say that's one of their targets,” says Campbell. “But it all comes down to really understanding your business first, and having funding or resources in place to support that growth and provide flexibility.”

Need a finance partner that supports your growth strategy? Access to the right financial tools can make all the difference when it comes to sustainable business growth. Octet helps businesses unlock working capital, manage cash flow, and fund expansion with confidence.

Whether you need supply chain finance in healthcare, debtor finance for labour-hire operations, or trade finance to support global growth, our team can help you choose the right solution for your business. 

Talk to us today about how we can help your business.