文档介绍：How Fast Can pany
DOAfford NOTto Grow? COPY
by Neil C. Churchill and John W. Mullins
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May 2001
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How Fast Can pany Afford to Grow?
Neil C. Churchill and John W. Mullins
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ILLUSTRATION BY NATASHA CROSBY BY NATASHA ILLUSTRATION
How Fast Can Your
Company Afford toGrow?
by Neil C. Churchill and John W. Mullins
It takes money to make money,
of course. But exactly how
veryone knows that starting a business requires cash,
much money does it take to and growing a business requires even more – for working capital,
grow how much? Here’s a E facilities and equipment, and operating expenses. But few people
understand that a pany that tries to grow too fast can run
precise way to calculate how out of cash – even if its products are great esses. A key challenge for
managers of any growing concern, then, is to strike the proper balance be-
fast you can grow a business tween consuming cash and generating it. Fail to strike that balance, and
even a pany can soon find itself out of business – a victim of
without running out of cash. its own ess.
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