All businesses suffer a downturn. Even Apple & McDonalds had tough years in their history, losing money.
But why do businesses go bust?
Most business owners things it’s because of a lack of profit.
Unfortunately, this is not even wrong, but it’s the reason why businesses fail.
Businesses go bust from the luck of cash.
You can only spend cash, not profit. Try to go to the restaurant and buy a dinner for your date with profits. Nobody will take profit; everybody wants cash.
What is the biggest factor for cash flow?
It’s TIME, so you can improve cash flow and solve many problems by changing time.
It’s not the only thing, and it could get much more complex, of course. But this is the first place to look for and could give you some time to breathe.
But to be able to do it, you have to have a rapport and excellent relationship with your suppliers. But the change is; if you struggle, the bridges could be burned down, and it’s hard to do a deal that would change it all.
Yes! Only one deal can change it all!
So you should bring a “white night” to save the day and make these magics possible.
But the best option is to never get into issues in the first place.
To do that, you should use this magic formula:
- Manage your assets (balance sheet, employees, payroll $, etc.) to effectively produce revenue
- Be efficient in turning your revenues into profit
- Turn your profit into cash
- Turn cash into free cash-flow
Not only the blueprint needs to be correct, but the effectiveness of each needs to be right. Every % increase should increase revenues by more than one percent. And it should produce even more growth in profits. And even more in cash flow.
Measuring it every month is essential, and 99% of businesses don’t do that. If you do that, your business will be a valuable asset. So you can turn things around.
There is really no reason to go bust if you still have revenues, even if you have a cash flow problem or a lot of debt.
We can help you to save the day, invest in your business and make it valuable again.
Or
Download our free book with 10 forgotten business strategies to survive and thrive and learn top strategies to grow, sell and turn around your business and how to turn crises into your biggest opportunities.
Krystof
P.S.: Don’t hesitate to book the free consultation, no article will ever be as efficient as one on one work. So if you are the owner of a business with 500k USD in revenue or more, jump into this opportunity as spots are very limited!