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by UzhasKakoi
2829 days ago
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Once I turned around a startup from about to go under to s profitable one. We restructured every piece of the value chain, but not without resistance from the founder/owner. Every suggestion I made was met with “I tried it and it did not work.” In reality she did not try, she intended but backed off when the other party pushed back. In essence we took control over cash by:
1. raising prices significantly
2. Introducing differentiated product and two tiered pricing
3. Switched product production from prepaid to 45 days AP.
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N. Restructured relationship with distributors All these actions produced huge negative working capital. Instead of financing operations at an insane % rate, which technically was killing the business the company paid off all the debts and was spewing cash. Cash Is King |
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