What Happens When The Cash Runs Out

Earlier this week an article I wrote appeared in the American Banker that laid out four simple questions that could be used to frame a lender’s chances of “surviving, thriving or dying” in today’s tumultuous environment.  Based on the feedback, it seems to be resonating almost as much as my “Shipping Code = Life!” entry (best interaction by far).

Based on the feedback I decided to follow it up with another short article that was picked up by The Lending Times this morning.  The title says it all: What Happens When The Cash Runs Out? and I’m guessing there will be a fair bit of debate about the conclusions in the piece.  It won’t be universally loved because of its implications to investors.  It won’t be universally loved because entrepreneurs don’t take failure well.  And it won’t be universally loved because there’s nothing to love about the topic.

And before you decide to shoot the messenger, make sure you internalize that all I’ve shared are generalities.  The truth?  Each and every company is unique in its own way. There isn’t a master puppeteer controlling the fate of companies that have yet to climb the scale curve — and if there is one it isn’t me!

Feedback always welcome.

Until next time,

fintechjunkie

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2 thoughts on “What Happens When The Cash Runs Out

  1. […] The Phase 3 playbook is usually quite obvious but not without pain and suffering.  The leverage in this Phase typically comes from refinement vs. trail blazing.  It comes from ripping costs out of the system and jettisoning marginal projects, tests and even people.  It comes from renegotiating contracts and focusing on cost-efficient-widget-making.  Costing your way into a healthy business is almost always an inevitable stop on the way to greatness, so when it arrives embrace it, deal with it, and move past it.  I wrote a few posts  earlier in the year that lightly touch on this topic: Thriving, Surviving or Dying and What Happens When The Cash Runs Out. […]

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