My exiting business owners are looking deeply to find equity partners or financing for their expansion plans or to cover their operating capital that is suffering from weak cash flow status.
The problem with that, is the time and efforts spent on such initiative is big and causing many time , instability of business, due to exposing your business to investors and banks.
Many times, you lose your competitive advantage because of such exposure.
Simply, negative cash flow is coming from having higher expenses than revenues. Most of the people will start looking at closing the holes in operating capital, covering their expenses, and dues and working as fire fighters to stay in business. Such situation may continue forever in many companies.
I claim that if companies convert only 50% of these efforts towards exploring new markets , thinking out of the box in terms of exporting their products, they can manage in short time to solve their cash flow issues easily, with sustainable approach.
So, don’t think always of cutting your blanket to match your height, try to reach higher places, and problem is solved.