One of my neighbors shut doors despite high sales!
Often sales volume is considered as the “hidden success key” of business. Many fail to understand that sustainable business is balance of two pillars- Dhanda (Sales) and Galla (Cash flow/ Account Health) – companies struggle to understand the relationship between both of them and make the mistake of assuming both are one.
The hard truth is that there is no relationship between Dhanda and Galla and never has been.
I have realised that increasing sales volume of a cash starved business will tend to have a negative effect on cash flow and could even cause it to shut its doors. I have seen so many businesses don’t go bust because of lack of sales they go bust because they run out of cash.