In good times, undercapitalised businesses grow broke.
In bad times, survivalist businesses grow broke.
At all times, loosely managed and poorly costed businesses grow broke.
What does it mean and how can you avoid this?
The Money Show’s Bruce Whitfield interviewed Aurik Business Incubator Director and CEO Pavlo Phitidis.
Scroll down to listen to the audio.
You’re growing broke when your business gets bigger, but your expenses outstrip your income.— Pavlo Phitids, Aurik Business Incubator
Turnover at any cost leads to growing broke.— Pavlo Phitids, Aurik Business Incubator
You can grow broke when the business environment suddenly changes.— Pavlo Phitids, Aurik Business Incubator
Look at overhead costs and look at what competitors are charging. Ask what your customers’ view of value is. If you undercharge you may win the price war, but you’ll be in danger of growing broke.— Pavlo Phitids, Aurik Business Incubator