Size Matters!

If someone tells you otherwise, they're probably lying. Or financially illiterate.

‼️ Here's a truth that financial advisors won't share for free — but you're getting it completely free here. 🍀🍀🍀

A bit of context

I've been running stress tests for companies that will be licensed with the FSC under MiCA (as part of prudential guarantees). And here's what I've concluded definitively.

What really matters

👉 It's not important to have a business plan that you'll almost certainly fail to follow. 😉 What matters is that your business is built on a sustainable and solid model!

So how do you do that?

👉 You test different types of market risks and see where your business model breaks down. Then you plan appropriate buffers and build them up right after break even, to ensure comfort and security in the future, as well as sustainable growth.

👉 The key question here is "what starting capital do I need" — and is its size adequate for the market conditions? Am I prepared, or am I relying on luck? And yes — size really does matter. Sometimes size is the very line between bankruptcy and success.

Sometimes size is the very line between bankruptcy and success.

And it's not that complicated

The matrix is built once. Then it can be checked annually to see whether the model is sound relative to the revenues and expenses for the business and its scale.

The more businesses that "get" this concept, the fewer bankruptcies there will be during crises. And the less "at fault" the government will be with its steep taxes of a whopping 10% corporate tax and 5% dividend tax.

Because we do recover/deduct VAT monthly, after all. And the total personnel cost is not the net salary of the team, but their net remuneration plus social security contributions from both the employee and employer. And that's not a tax — it's a business expense. It's planned and managed just like any other business expense.

Hopefully this has been helpful. ❤️