About two years ago I was close to burnout from taking on so many projects at the same time. I wanted to be my own investor, reinvesting all that income into products to sell later on Amazon. Before I completely burned out, I was able to stop and change my strategy. We started asking for bank financing. Things have been going well, but now we have to take the next step.
The snowball of growth that crushes you
Growth is a good thing. Don’t get me saudi arabia whatsapp number data wrong. It’s what we look for when we want to create a business. But not everything that glitters is gold. You have to be prepared to face uncomfortable situations. The more you grow, the more money you will have to advance in purchases to the manufacturer. What happens can be surprising if you have no previous experience with this type of business. Your company is making high profits but your bank account does not necessarily reflect this at all times.
Financing, collaboration and investment as a solution
Your incoming cash flows arrive later than agency comes in as the best solution your outgoing cash flows. In other words, you are short of cash. You have been generating a snowball that generates liquidity problems due to the growth you are experiencing.
There are several solutions to this issue and we are doing almost all of them. I have already mentioned bank financing. It is a cycle that begins and then has to be renewed every year from then on.
Now we have finally been able to send all our numbers
Now we have to wait for the banks’ response. In a matter of two weeks we will surely know more.
Then we also have a model of collaboration gambler data with manufacturers. This is something that has emerged from negotiations last year and which we are now going to establish as a business model under a. I have already talked about this and I will probably do more about it later.
It is certainly a nice challenge to have, but it is a challenge. I hope I can tell you more soon.