Mike AndesFounder, Augusta Lawn Care and Homeworks · Founder of Homeworks and Augusta Lawn Care

Keeping a sinking business afloat is hard and super stressful.

13 Mar 2024 · 1 min

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Mike Andes (speaker) describes acute financial stress in his business: they have less than two weeks of cash runway, reporting $50,000 in the bank against a $1.8M business, and he lists several single-point failures that could sink the company (payment processor issues, insurance claims/premium increases, vehicle accidents). He frames the fragility as a leadership/stewardship failure and reflects on how small shocks could jeopardize operations.

Questions this video answers

$50,000.

$1.8 million (described as the business size).

Less than two weeks' worth of cash flow on hand.

Chapters

This is stressful. We have less than two weeks worth of cash flow on hand. This, to me, is a big, big problem. $50,000 in the bank on $1.8 million business. Since I literally have a location that does that in my brain, I'm literally thinking about all the things that have come up in the past 24 months that literally could have sunk this. That is a literally a matter of like payment processor not going through correctly. That is a matter of an insurance claim. That is a matter of insurance premium going up. There's one truck getting in an accident. When you actually bring the gravity as leaders to let the business get to a place that is that fragile at this size is not being a good steward of what we've been given as just leaders. Right?