By in Writing

Bubblews and the lesson on Cash flow 101

The unhappiness in Bubblews is due to mismanagement of cash flow.

Bubblews team has taken too long a time to learn that cash flow is the blood of a business.

A profitable business can go bankrupt because of the cash flow problem.

Many businesses are victims of rapid expansion and success. They keep getting customers and taken on big accounts or projects.

In the end, they have cash flow problem.

Customers, especially big customers, do not pay promptly. When you give them credit term of 30 days, you are lucky to see the money after 60 days.

However, you have to pay the workers promptly. You may have to pay for the supplies by cash.

That is why profitable business runs into problem.

It is the same with Bubblews. Even though we have been voicing out that the rate in Bubblews is not sustainable, Bubblews keeps the same rate, and pays to all the scammers and spammers.

It takes them a long time to learn the importance of cash flow management.


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Comments

peachpurple wrote on January 3, 2015, 4:40 AM

Yes, it is true that they had mislead writers hoping for a better future but they forgot to do their homework

Gina145 wrote on January 3, 2015, 4:43 AM

I think there's more to it than that. They're blaming their problems on fraudulent activity by some of their users, but they allowed it to happen. I often reported violations and many of the offending posts were only deleted weeks later if ever.

MBank wrote on January 3, 2015, 4:52 AM

You are absolutely right. Bubblews mismanagement sunk their boat.

ison1 wrote on January 3, 2015, 7:31 AM

yes they had cash flow problems, but I agree with Gina145 there has been some very inept management which were the cause of the symptom, namely the cash flow

scheng1 wrote on January 3, 2015, 7:32 AM

The founders of Bubblews are young and naive. They have a lot to learn.

nbaquero wrote on January 3, 2015, 7:34 AM

scheng1 They did not understand how the business work, not only cash flow issues but they did not understand the Online Advertising model. But they just think they can erase their debt by not paying their users... no financial education at all. Too late know, but they needed to take some classes in P&L , Clash Flow, etc.

scheng1 wrote on January 3, 2015, 7:39 AM

They can do that by reading Rich Dad series of books. If they still do not understand, they can re-read many times.

scheng1 wrote on January 3, 2015, 7:59 AM

This is what happens when a bunch of young and idealistic guys start a business.

nbaquero wrote on January 3, 2015, 8:32 AM

Or alternatively, they can hire you (problem is you will never get paid) emoticon :winking:

scheng1 wrote on January 3, 2015, 8:38 AM

If they could just request for help, many will come forward to help.

nbaquero wrote on January 3, 2015, 8:44 AM

They were either too arrogant or too clueless to ask for help

MsTina wrote on January 3, 2015, 8:58 AM

I don't think that is exactly the problem. I think Arvind was hoping to sell Bubblews for millions and when the potential investors looked at the mess on the site, they didn't want any part of it. Now he has to try to save what is left and to do that, he has to do something about the cash flow issue.

Gina145 wrote on January 3, 2015, 9:03 AM

I'm sure that would have been true in the past. I'm not sure there are so many who would be willing to help them out now.

ChickJ wrote on January 3, 2015, 10:37 AM

I think Bubblews paid way too much to spammers and empty posters. They didn't realize how much these people were draining the site and by the time they wise up, the money was gone.

dd-das wrote on January 3, 2015, 11:58 AM

I think it has happened due to their inexperience.

LeaPea2417 wrote on January 3, 2015, 11:22 PM

It is very sad what happened to that site. What I don't understand is how they paid anybody when the money was not there? It doesn't make any sense whatsoever!

scheng1 wrote on January 4, 2015, 7:50 AM

The market rate for selling a site is based on cash flow. It is between 12 to 24 times the cash flow.

scheng1 wrote on January 4, 2015, 7:51 AM

They focus too much on the technical aspects which we do not need at all.

trufflehunter wrote on January 6, 2015, 1:28 AM

Lol at your reply to Gina's comment. It's too bad but at least they tried. I feel as if they wasted a lot of my time but at least they paid me something.

scheng1 wrote on January 6, 2015, 7:24 AM

I pity those who join after June 14. They work hard and get nothing back.

arthurchappell wrote on January 7, 2015, 8:08 AM

it is very unprofessional of them - much there has been run on a wing and a prayer - now they are facing the consequences

scheng1 wrote on January 7, 2015, 8:14 AM

I just see them as a bunch of young and idealistic kids.