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 

No more

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.