Business profitability and cash flow need not be distant cousins
I had another call with a business owner in debt to start off my morning. This is a talented guy who built a $M, profitable business with his fingernails and teeth. He has a real product that helps people. He’s a traveling salesman and has had his gloves up in a constant battle for the last 3 years. He’s tired but I don’t think he’s beaten. Unfortunately invoices take months longer to process and are often returned riddled with ridiculous fees so profitability and cash flow are distant cousins. He is suffering and his line of credit is running out.
CIT Group (the largest commercial financing and leasing to small business company) trades at $0.18/share in bankruptcy down from $60/share 18 months ago. The banks are not lending to small business. Maybe Revolutionary Angels will fill the void – 100 startups each pay $5,000 to compete for a maximum $250,000 initial round of funding. The runner-up gets $50,000. The rest get feedback.
Stanislaw Lem has some feedback for Revolutionary Angels and midlevel managers in large companies who abuse their vendors. Watch out because “Cannibals prefer those who have no spines.”
Read more at Jon Fisher’s Blog
