Value Hive Podcast How To Fix A Business In 100 Days w/ Jeff Sands, Dorset Partners (Episode 21)
Apr 17, 2020
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Stubbornness Kills Turnarounds
- Entrepreneurial stubbornness kills turnarounds because owners refuse to radically change their behavior.
- Stubbornness blinds them even when banks, customers, suppliers, and employees see the need for change.
Focus on Cash, Not P&L
- In turnarounds, prioritize cash flow over profit and loss statements.
- Accept losses on paper if it keeps payroll paid and the business alive.
Balance Sheet Focus and Planning
- Use thorough liquidation analysis and 13-week cash flow forecasts to understand balance sheet risks.
- Create precise, fast plans focusing on cash generation and core business activities.