Category Archives: Hedging against downturns

Never use short term borrowing to cover long term debt.

This insight is one that is so important to the continued health of a growing company that it cannot be overstated.  First, let’s be sure we know what is short in term and what is long in term.  Long term … Continue reading

Posted in Hedging against downturns, Protecting the business | 3 Comments

Hire ahead of need only when growth is stable.

Many companies have made the mistake of using the forecast to plan and executive hiring of new employees so that they could be trained and up to speed when the demand arrives.  Although such a practice does add to overhead … Continue reading

Posted in Growth!, Hedging against downturns | 2 Comments

Pay for frequent moves over risky long term leases

          One of the most obvious observations I make with growing company CEO’s is that planning for a new office is done with an optimistic view of the future, incorporating planned space that compromises only slightly the measured needs for … Continue reading

Posted in Growth!, Hedging against downturns | 1 Comment

Sign short term leases early on. Move more often as you grow.

Avoid long-term commitments.            It is statistically true that at least half of the young companies funded by angel or venture investors will not survive three years from funding to demise.  The greatest burden of either a growing company or … Continue reading

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How do you manage and measure home-based employees?

               Do home-based employees work with the same dedication and productivity as those in office cubicles next to each other?  That depends upon the management as much as the employee.  I have a friend who is a CEO of a … Continue reading

Posted in Depending upon others, Hedging against downturns, Surrounding yourself with talent | 4 Comments

Wasted time is money lost. (And another story of lost opportunity.)

                There is a relationship between time and money that is more complex than most managers think.  Fixed overhead for salaries, rent, equipment leases and more make up the majority of the “burn rate” (monthly expenses) for most companies.  Since this … Continue reading

Posted in Growth!, Hedging against downturns, The fight for quality | Leave a comment