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March 25, 2026 · Louie Bernstein
Cash Does Not Fix A Cash Flow Problem
salesfractional sales
My mentor said that to me when my business was struggling.
He was right. (Of course he was...)
Here’s how we fixed it.
At one point I wanted to borrow money to keep my business going. We were in the middle of a recession. Sales had slowed down, and I had already cut a lot of expenses.
He warned me against borrowing.
“You have to either increase sales or cut more expenses to get through this recession.” Easier said than done. We had cut everything to the bone.
I had employees who did not want to be laid off, and I had four young kids, a mortgage, etc. etc.
So, we brainstormed how to increase sales. Everything was on the table.
✅Discounts.
✅Cash discounts.
✅Shorter contracts.
✅Whatever we needed to offer to bring in cash.
It worked! 🎇
We got through that recession and two others by adhering to that philosophy: Cash does not fix a cash flow problem. 🎯
When you borrow against a business that is not cash flow positive, you often just prolong the pain, add more stress, and you’re usually no better off than without the loan(s).
P.S. Do you agree with this approach?
Need a Fractional Sales Leader who’s been where you are?
Founders only: Book a call.
He was right. (Of course he was...)
Here’s how we fixed it.
At one point I wanted to borrow money to keep my business going. We were in the middle of a recession. Sales had slowed down, and I had already cut a lot of expenses.
He warned me against borrowing.
“You have to either increase sales or cut more expenses to get through this recession.” Easier said than done. We had cut everything to the bone.
I had employees who did not want to be laid off, and I had four young kids, a mortgage, etc. etc.
So, we brainstormed how to increase sales. Everything was on the table.
✅Discounts.
✅Cash discounts.
✅Shorter contracts.
✅Whatever we needed to offer to bring in cash.
It worked! 🎇
We got through that recession and two others by adhering to that philosophy: Cash does not fix a cash flow problem. 🎯
When you borrow against a business that is not cash flow positive, you often just prolong the pain, add more stress, and you’re usually no better off than without the loan(s).
P.S. Do you agree with this approach?
Need a Fractional Sales Leader who’s been where you are?
Founders only: Book a call.