And Why You Shouldn’t Bury Your Head in the Sand
Friday night trip to Blockbuster?
We all remember the Friday night trip to Blockbuster.
Then one day… it was gone.
But Blockbuster didn’t disappear because people stopped watching films.
It collapsed because it ignored the same three red flags many business owners face today.
1. Cashflow tightening (ignored)
Behind the scenes, Blockbuster’s cash was under constant pressure. High rents, big staff costs, expensive stock all eating away at working capital. They kept juggling costs, hoping things would improve.
Your red flag: Cashflow feels tighter each month, but you carry on “managing it.”
2. Sales looked fine… profit didn’t
Customers were still renting movies. Turnover looked healthy. But profits were slipping because costs were rising faster than income.
Leadership focused on revenue, not reality.
Your red flag: You’re busy, but the numbers aren’t moving with you.
3. Pressure rising but avoided
They felt the shift towards digital. They knew customer behaviour was changing. But instead of acting early, they hoped it would all “go back to normal.”
By the time they faced the truth, their options had vanished.
Your red flag: Stress is rising, but you keep pushing it down.
The Lesson
Blockbuster didn’t fail overnight.
It failed slowly, through ignored red flags, until the damage was irreversible.
Most businesses that end up in trouble follow the same pattern.
Spot the signs early.
Act early.
Stay in control.
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