Business turnarounds are inherently difficult.

In any business, expenses are incurred first before income is earned. Sometimes,
startups saddled with cash think it is wise to spend a lot of it in creating
supply capacity (like manufacturing facility or raw materials bcos of favorable
commodity prices etc) before creating demand - the classic cart-before-the-horse
situation.

What ensues is a perpetual catch up game - desperation to reach breakeven
revenues increases every day. It feels the turnaround is just around the corner
but it never is. In that desperation, companies start giving liberal credit to
market resulting in adverse cash flow situations. Quality of revenues drops.

Investors evaluating such opportunities should be ready for a painful surgery.
The only way out is to ruthlessly cut costs - like cutting a limb to protect
one's life. It may lead to revenue, market share and reputation losses but all
of them can be rebuilt if the company is saved.

Turnarounds need investors with a strong stomach.