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Strategy
Building a Sustainable Business: Beyond the Buzzword
Prashant•
Sustainability in finance means surviving the next downturn, not just the next earnings call.
"Sustainable business" gets used loosely. We use it in the literal sense: a business whose unit economics, cash position, and operating cadence let it survive a 12-month revenue contraction.
Three tests for sustainability
- The 12-month test — could you survive flat revenue for a year without layoffs?
- The customer concentration test — would losing your top customer break you?
- The vendor lock-in test — how quickly could you replace your most critical vendor?
If any answer makes you uncomfortable, that's where to invest planning time this quarter.
