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Sometimes the Business Isn’t Broken. The Financing Is.
Sometimes the Business Isn’t Broken. The Financing Is.
A business can be running out of cash without having a broken business model.
In this episode, Sonny Saggar, MD uses an emergency medicine analogy to explain financial distress in plain English.
A patient in shock has to be stabilized first. But shock is a condition, not the diagnosis.
A distressed business can be similar. Payroll is due. Lenders want payment. Vendors need cash. The company may be unable to meet its immediate obligations.
But that does not necessarily mean the underlying business is bad.
The framework is simple:
STABILIZE…
The skinny
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