5 ms·
IMO “failure to grow the business” is totally the same as poor management of finances, when the financial health of the business demands growth. If you keep yo
by doctor_eval 5y ago
IMO “failure to grow the business” is totally the same as poor management of finances, when the financial health of the business demands growth.
If you keep your burn rate high while you fail to reach your sales targets then you need to pivot well before you run out of cash.
I’m continually astounded by the acceptance of businesses which fly themselves into the ground. Repeatedly failing to meet targets requires change, not just charging ahead and damn the torpedoes.
- CyberRabbi 5y agoI don’t necessarily disagree with you, just wanted to draw a distinction between a blatant failure to manage finances and an excessively aggressive growth strategy that fails to pan out.
- doctor_eval 5y agoI think it's fair to draw this distinction, sure. The bean counters aren't necessarily able to change direction of the business, even if they can see it coming. And I also think it's OK to have an excessively aggressive growth strategy too. Why not? Maybe it will work out. The problem is when such a strategy can't be falsified until after all the money is spent. That's not a strategy, that's just gambling. It's been really common in my experience - when a strategy isn't hitting its objectives, double down on it, and spend more! Until ultimately all the investor's money is wasted.