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When you invest in a business or do M&A (mergers and acquisitions), you have to avoid simple but fatal mistakes – mistakes that can kill your company. Let’s look at a real example that shows how even big companies can…
Some businesses seem doomed from the start. You don’t need to wait a decade to see if a business will succeed. Just by looking at its cost structure, you can tell that no matter how big the business gets or how hard it tries…
Business is all about making cash, reinvesting it to make more future cash flow, getting more cash, and repeating this cycle. That’s why maximizing your cash flow is super important. If you don’t, you’ll have less cash to allocate, limiting…
Ever wondered why some promising startups crash and burn? Let’s talk about a big reason: low gross profit. It’s like a sneaky thief, slowly draining the life out of businesses. What’s gross profit, you ask? It’s what’s left after you…
The Most Common Cash Flow Mistake Many small business owners think the solution to a cash flow problem is simple: get more sales. But more sales don’t always improve cash flow. Sometimes they make the problem worse. If you’re struggling…
The most common mistake venture owners make is fixating solely on business expansion without considering demand capacity. Here’s a simple but crucial reality: you can’t sell more than the market demands. Many entrepreneurs get excited when sales start climbing. They…
In 2016, Frontier Communications, a broadband internet and landline phone company, made a bold move. They acquired Verizon’s assets in California, Texas, and Florida (CTF) for a whopping $10 billion. This massive investment instantly doubled Frontier’s sales, but at what…
Atlassian was a bootstrapping company, meaning it grew without venture capital. It had to generate positive cash flow from operations even before it scaled, which covered all its growth expenses. This is a very difficult thing to do, but the…
When your business generates cash from operations, you must use it to fuel further growth. Simply holding cash will make your company stagnate and eventually decline. There are six options for cash allocation: paying dividends, share buybacks, holding cash, paying…
What’s the secret to keeping your coffers full while growing rapidly? Enter Return on Assets (ROA) – your ticket to cash flow mastery. Why ROA is Your New Friend ROA, calculated as net profit divided by total assets, is more…