One month of negative cash flow can trap a company in a cycle where you need multiple profitable months just to break even. You can't scale to $7-10 million revenue if you're unprofitable at $1-5 million. More money won't fix a broken business.
The process is broken right now and today. More revenue is not going to solve that problem. If you're negative for one month, it's going to take you several good months just to get out of that. And you start to get in this vicious cycle. Unfortunately, you'll never be able to sell your way out of it. If you bring in more money, you're just going to have more problems. So you can't run a profitable $1 million business. How are they going to run a profitable $3 million business? And if you're at $5 million right now and you're like, man, we just got to get to $7 million, I'm here to tell you, if you ever get to $7 million, you're still going to be in the same position if you don't start doing things differently. I see that all the time where it's just like companies doing $4, $5, $6, $7 million and not profitable. They want to get to $10. It's like, well, let's do $5 million really profitable before we actually even think about going anywhere else.
