I’ve heard stories about the dotcom bubble, when owners of little companies that didn’t have any profit would spend impressive amounts of investor money on office chairs, or company lunches, or overwhelming office spaces. This spending boosted the economy; cash was everywhere. We all remember how that ended.
I’ve also heard stories, not just since the liquidity crisis from the real estate meltdown of 2008, about company executives who are ultimately concerned with saving money. They want to save so much money that they fail to invest in new processes or new opportunities.
Corporate companies are currently sitting on piles of cash right now, but like the average US consumer they are not investing that cash in people or new opportunities.
Many small businesses are hurting for cash, and the cash they do see they hold onto for dear life trying to squeeze in one more month of operations.
But there’s an important thing to remember in this tough economy; overspending is eventual death by bankruptcy, but underspending is eventual death by failure to innovate.
Maintain your fiscal displicine but don’t forget that you have to spend money to make money. Keep innovating.
Tyler Horne
CFO, HC Consulting Group
PS. If you are interested in getting involved and “innovating” in the daily deal industry we encourage you to visit our new and updated website at: www.DailyDealBuilder.com.
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