Back

𝟯 𝗖𝗥𝗜𝗧𝗜𝗖𝗔𝗟 𝗧𝗛𝗜𝗡𝗚𝗦 3 𝙘𝙧𝙞𝙩𝙞𝙘𝙖𝙡 𝙩𝙝𝙞𝙣𝙜𝙨 𝙩𝙤 𝙨𝙩𝙖𝙧𝙩 𝙖 𝙗𝙪𝙨𝙞𝙣𝙚𝙨𝙨 1. There is a demand/gap in the market 2. You have the minimum required resources to start it 3. You know the industry and the market well, you know what makes money, what losses money, and what risks are there 3 𝙘𝙧𝙞𝙩𝙞𝙘𝙖𝙡 𝙩𝙝𝙞𝙣𝙜𝙨 𝙩𝙝𝙖𝙩 𝙠𝙞𝙡𝙡 𝙖 𝙗𝙪𝙨𝙞𝙣𝙚𝙨𝙨 1. Running out of cash (due to lack of sales, poor financial management, etc) 2. Thinking only funding will grow your business, failing to raise leads you to shut down the business 3. Lack of entrepreneurial traits (patience, perseverance, persistence, hard-working, delayed gratification, etc). - entrepreneurship is not a skill, is a behavior 3 𝙘𝙧𝙞𝙩𝙞𝙘𝙖𝙡 𝙩𝙝𝙞𝙣𝙜𝙨 𝙩𝙤 𝙩𝙪𝙧𝙣 𝙖𝙧𝙤𝙪𝙣𝙙 𝙖 𝙛𝙖𝙞𝙡𝙞𝙣𝙜 𝙗𝙪𝙨𝙞𝙣𝙚𝙨𝙨 1. Cut necessary costs (stop the bleeding), don’t cut costs that are cortical for your turnaround 2. Negotiate with your creditors and agree on a practical and possible restructuring plan 3. Focus on generating income and less on spending