Can my company actually “grow broke?”

July 2, 2010

In a recent post , I talked about the fact that, in certain instances, there is such a thing as too much revenue growth.  Even highly profitable growth, if not managed properly, can deplete a company or organization of cash.  If neglected for any meaningful period of time, too much growth, as counter intuitive as [...]

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Is there really such a thing as too much growth?

June 29, 2010

Most owners and managers view growth as something to be maximized. When revenues and profits are growing, similar to a team’s locker room after its first win, all of the other problems tend to become insignificant or virtually non-existent. Winning tends to have that effect.

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Aren’t more assets a good thing?

June 27, 2010

Well, yes, but not exactly.  Before you dispose of all your assets, read on. It may seem counter-intuitive, and contrary to what may be considered the conventional wisdom, but more assets is not better.  In fact, the optimum level of assets for your business is precisely $-0-.  Shocked?  Let me explain.

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Business plans – what you need to know about financial data and projections

May 16, 2010

In order for your business plan to be effective, useful to owners/managers, and credible to investors, each section, must include certain minimum elements.  Some would argue that the most important section of the business plan is the financial section.  Whether or not this is the case, is a matter of opinion.  Regardless, the financial section [...]

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Non-profit financial reporting – the statement of activities

May 9, 2010

Imagine for a moment that you donate $1 million to your favorite charity for the sole purpose of building a school for needy children.  Imagine further that once you wrote that check, you were never able to determine to any degree of certainty exactly what became of your generous gift.  It seems almost irrelevant at [...]

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