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Valley of Death
"I can't take on more business without more staff...but I don't have the money to hire anyone!"
I'm sure you've been there. Your business is busy, but you're not making enough money. You have cash flow, but not enough to hire someone else without cutting your own pay.
This is the Valley of Death: when you have to hire for capacity ahead of cash flow.
Greg Crabtree coined the phrase "Valley of Death" in his book, "Simple Numbers".
The Valley of Death is when you have to hire ahead of cash flow, so your profitability drops. Then you race to generate new cash flow. You get out of the Valley when…
The skinny
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