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Dottore
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Join Date: Jun 2005
Location: Hamburg & Vancouver
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Quote:
Originally Posted by Superman View Post
Well I have an MBA, and I see the problem. One of the most common, actually. Success (or in this case, sucksess). Very commonly companies are victims of their own success. Business booms, you have more orders than inventory, perhaps you borrow capital, add inventory, sales soar but.....then the bills come due. Revenue lags expenses and, even though profits are sky-high, cash thins due to the expenses of funding too-rapid growth and the company goes belly-up (or in this case, tits up).

In this instance, I would suggest subcontracting the servicing of customers. In this way, the expenses incurred by trying to fund too-rapid growth could be delayed just enough that revenue materializes as expenses cum due.
Excellent. Always listen to the MBA!
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Old 03-01-2012, 12:42 PM
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