Spring turned into summer, and the company’s sales continued to grow. Its reputation was improving thanks to a regular testimonial campaign developed by Sharon.
Jim reviewed the numbers. the steps that the company took to improve margins, focus on the most profitable customers, recover shipping costs, and increase organic sales were working.
Jim thought “We are making money on most sales. We can safely scale up repeat sales, bundles, and promotions without hurting profits. Although we still have to go negative on new customer acquisition, our loyalty efforts ensure that we will be profitable on most new customers. I finally understand what Mike J. was talking about. Scaling up the business has to increase profit faster than expenses, otherwise, no one wants to invest. I think I’ve cracked the code on this. “
Jim smiled. “It’s almost time to look for cash again, but I want to be in the best position possible before I reapproach investors and bankers. Let’s see what the next month brings.”
Choice: Approach Investors – Eliminated - Wait till something forces our hand
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