I worked for the bankruptcy division for a "Big 4" accounting firm in Australia.
My job was to recover debt for large creditors (mainly banks) from failing medium-large businesses.
Read this Thread if you want to learn why businesses go bankrupt
#30DaysofThreads
(4/30)
My job was to recover debt for large creditors (mainly banks) from failing medium-large businesses.
Read this Thread if you want to learn why businesses go bankrupt
#30DaysofThreads
(4/30)
1. Cash is king
Most businesses failed because they did not know how to handle their cash.
Why?
They were run by talented marketing/sales ppl who had no idea how to Run the numbers.
Took on too much debt
Bought useless shit they didn't need
Failed to pay creditors on time
Most businesses failed because they did not know how to handle their cash.
Why?
They were run by talented marketing/sales ppl who had no idea how to Run the numbers.
Took on too much debt
Bought useless shit they didn't need
Failed to pay creditors on time
2. Use your debt, don't let your debt use you
A lot of businesses took on debt to buy stupid shit like cars for upper management instead of reinvesting it back into the business by hiring new talent, investing in sales/marketing, improving their product etc
A lot of businesses took on debt to buy stupid shit like cars for upper management instead of reinvesting it back into the business by hiring new talent, investing in sales/marketing, improving their product etc
3. Pay your debts like the Lannisters pay their debts
Simple but not easy.
Again, cash is king.
Get a good accountant. Make sure all of your creditors are satisfied. It only takes one angry creditor to get the attention of the tax office (ATO in Australia, IRS in Merica?)
Simple but not easy.
Again, cash is king.
Get a good accountant. Make sure all of your creditors are satisfied. It only takes one angry creditor to get the attention of the tax office (ATO in Australia, IRS in Merica?)
4. Don't treat your customers like crap
I'm of the belief that your customers are your biggest asset in any line of business.
So many businesses screw their customers over for short term profits and wonder why they crash and burn inside of 2 years
Good customers = Stable biz
I'm of the belief that your customers are your biggest asset in any line of business.
So many businesses screw their customers over for short term profits and wonder why they crash and burn inside of 2 years
Good customers = Stable biz
5. Treat your business like a well oiled machine
Most new businesses failed because they were run by ppl who knew their industry but did not understand the mechanics of running a business.
This is why it usually takes a few failures before you learn how to run a successful biz.
Most new businesses failed because they were run by ppl who knew their industry but did not understand the mechanics of running a business.
This is why it usually takes a few failures before you learn how to run a successful biz.
That's it for today.
The big takeaway is to manage your cashflow. If you do that, take care of your customers and focus on the long term health of your business, you will succeed.
Have a great Sunday evening y'all
/Fin/
The big takeaway is to manage your cashflow. If you do that, take care of your customers and focus on the long term health of your business, you will succeed.
Have a great Sunday evening y'all
/Fin/
S/O again to @WhutTheHale for forcing me to write daily.
It's a beautiful Sunday afternoon here so I'm about to take a nice walk and get in some nature time before sunset.
It's a beautiful Sunday afternoon here so I'm about to take a nice walk and get in some nature time before sunset.
