You can have perfect unit economics, exponential customer growth, and great margins—and still go bankrupt.
Some companies are winning on paper but are constantly scrambling for cash. The problem isn’t their revenue or even their variable costs. It is something far more sublte, their fixed costs and CAPEX decisions.
In Chapter 5 of my Business Model Innovation series, we examine:
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- Why WeWork’s difficulties aren’t just about revenue—but about long-term leases becoming financial anchors
- How CAPEX creates future fixed costs (that $1M equipment purchase doesn’t just disappear—it affects your P&L for years to come)
- The cloud revolution’s real financial impact (AWS didn’t just change technology—it saved startups from CAPEX traps)
You’ll learn how to calculate your real break-even point (most companies get this dangerously wrong). When to buy vs. rent assets. And we discuss costly mistakes I’ve helped clients fix, like treating R&D capitalization as “free money”.
Use my Fixed Cost Audit Tool to diagnose your fixed-cost management.
Watch Chapter 5 here:
Next time: In Chapter 6, we’ll explore why some companies hit invisible walls when scaling and how to avoid them.
