The primary cause of business flatlining is repeated business losses. Just as anyone with an unhealthy heart is at increased risk of flatlining as a result of cardiovascular disease, the same is true for any business that has poor operating profits and negative cash flow from operations.
The ultimate question for every business —
is this a good business to buy, YES or NO?
Businesses with predictable cash flow, strong profits, and accurate reports timely delivered never face the question, “is this a good business to buy?” People buy these businesses at a premium because they can easily understand how cash is generated and profits are achieved through the financial reports produced. Particularly as it relates to understanding the “big 4” numbers in every business: