Mike Andes (speaker) addresses a business owner facing a monthly deficit and explains there are only three ways to fix a failing business: (1) cut expenses, (2) get more customers (increase revenue), and (3) increase revenue from existing customers. He emphasizes that taking on more debt (e.g., a loan to pay credit cards) does not solve an ongoing deficit.
I was talking with the business owner today that had a big deficit and quite a bit of debt. And their solution was going to be, well, I'm gonna go get a loan to pay off my credit cards, and that's what's going to solve the problem. The problem is we have a deficit. We're losing more money every single month than what we're making. So there's only three ways to fix this problem. The first one is cut expenses. The second one is to get more customers, that is increase revenue. The third one is to get more revenue from the customers that you're currently serving. That's the only three things. It sometimes helps thinking about that in terms of solving any deficit you currently have, if you're not making money, those are the only three ways to actually turn things around.
