Every client is different.

Every business is different.

And even when 2 businesses appear to have the same financial problem, the reason behind that problem may be completely different.

That is why I do not believe in arriving with the prescription already written.

The Same Symptom Can Have Different Causes

Imagine 2 businesses that are both short of cash.

For the first business, customers may be paying too slowly. For the second, pricing may be inadequate. Another may have too much fixed cost. Another may have debt obligations that no longer match the economics of the business. Another may be growing quickly but financing that growth badly.

The symptom is the same: There is not enough cash. The diagnosis is not.

If you begin with a generic solution, you may spend time fixing the wrong problem.

Questions Before Answers

Before recommending what should happen next, I want to understand: What changed? When did it change? Where is cash being created? Where is it being consumed? Which assumptions are management relying on? Which obligations are creating pressure? What does the owner believe the problem is? And what do the numbers say?

There may be uncomfortable answers. That is fine. Clarity is more useful than comfort.

Diagnosis Is Not Delay

Sometimes people think diagnosis slows action. I see it differently.

A good diagnosis can prevent months of activity around the wrong solution.

The objective is not to study forever. The objective is to understand enough to act with purpose.

That is the principle behind NAJ Advisory: No prescription without a diagnosis.