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Cashsucks vs cashflow businesses
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A couple of years ago I learned the difference between a cashsuck business and a cashflow business and that I a lot of times have sucked at making cash do to this little difference. Here is the difference between the two kind of businesses: In a cashsuck business you provide your service and then you get your money. In a cashflow business you get your money and then you provide your service. In a cashsuck business you only make money 3-4 times a year. In a cashflow business you earn money continuously during a year. In a cashsuck business you have 3-4 big clients and if they leave you are in trouble. In a cashflow business you have lots of different clients that diversifies your risk. In a cashsuck business your service is customized to each client. In a cashflow business your service is productized so you deliver the same again and again. A cashsuck business that does 1 mio Euro in revenue and a cashflow business that does 1 mio Euro in revenue are not worth the same thing. When starting, building or buying a business always go for the cashflow business that is repeatable, predictable and de-risked. I learned this lesson the hard way:) |
Hi! I'm Johan.
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