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Charlie Feng
@charliecf
Mistakes I’ve made buying my first biz: - not having an earn out where seller is on the hook for a year (min 6mo I’d say) - margin too low to effectively hire - underestimating working capital needs (very diff from software) - weak diligence in their gtm channels (…prob more gotchas that I fell for)
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Cameron Armstrong
@cameron
Can you say more about the working capital issues? Would love tangible examples if you can share
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Charlie Feng
@charliecf
Coming from software, embarrassingly never paid attn to WC or a cash flow statement till I bought this biz Then I was like o shit Can DM more or send excel, but tldr; - can be profitable but die from neg WC - pushing back net+X payable can squeeze sig margin from biz - good LOC terms is critical bc eats into margin
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