Are you positioning your business for a 20X value by 2027?
Paul Bassat has given some great advice to his portfolio companies at Square Peg today
“Cash is king and make sure you have a profitable and sustainable business.“
In the last few years, Markets have been rewarding growth at all costs
Going forward markets will be rewarding profitable growth. ”
The next few years will be tough – be sure to make your business profitable and sustainable .
Cash is king.
More money must come in than go out
Be cautious in the immediate term and identify innovative ways to reduce expenditure, ideally, in a way that minimises the impact on your teams.
Seeks experience in the Dot Com Crash and beyond
For Seek – The period from 2000-2003 – the dot com crash was both a tough period of managing through a crisis but also a major period of value creation.
They entered the Dotcom crash as the market leader, albeit in a highly competitive market and with a large cash burn.
Seek emerged from the Dotcom crash as a profitable business and with a dominant market leadership position.
As a result its share price increased more than 20x from 2003-2007.