"I have never been in a situation where having money made it worse."
Clinton Jones
I can think of situations where having money does make a problem worse, in fact, many of them.
It does when management ceases to evolve their business because, they believe, they have enough cash to overcome whatever problems they have or will have.
That describes countless companies either now gone or soon to be, who, as recent as six months ago, saw no reason to alter how they did business given what they thought was adequate cash reserves.
Money, or lack thereof, is an indicator of past performance and the fact that a company has it does not mean they will in the future.
It does when management ceases to evolve their business because, they believe, they have enough cash to overcome whatever problems they have or will have.
That describes countless companies either now gone or soon to be, who, as recent as six months ago, saw no reason to alter how they did business given what they thought was adequate cash reserves.
Money, or lack thereof, is an indicator of past performance and the fact that a company has it does not mean they will in the future.
Complacency is a very damaging force regardless of how much money one has. In my opinion it is the single biggest contributor to the problems now faced by the auto industry.
ReplyDeleteFor a long, long time, they felt "good enough" was and apparently had enough money to muddle along, but no more.
This is true.
ReplyDeleteIt is difficult to fix problems without money but if you don't even know you have them because of a false sense of security, you're really screwed.
to put it another way, revenue is and always will be a lagging indicator
ReplyDelete