Don capital case problem

Even office life proved different. Forget the rushed desk-side sandwich.

Don capital case problem

So how can you stay on track? By Jill Hamburg-Coplan For an entrepreneur, there is nothing worse than a cash-flow squeeze. Actually, there is one thing: Yet it happens all the time, one of the many financial mysteries business owners need to solve.

In the surface, business seemed great at Murder Mystery Company, the theater company Scott Cramton founded in But the fast growth had a downside: Three years earlier, Cramton quit his job as a furniture salesman to focus on building the company, which he had been running part time out of his basement in Grand Rapids, Michigan.

Encouraged by the local success of the business, which put on interactive theater performances, mostly at private parties, he set up websites advertising the business in several cities around the country.

When he got a few bookings in one city, he would fly there to hire and hold rehearsals with local actors.

Don capital case problem

In some cities, he established and trained a part-time satellite Don capital case problem to do several weekly shows, including small birthday dinners and large corporate events spanning several days.

In some places, the theater company began putting on weekly performances in restaurants.

Don capital case problem

Would you like to do 18 parties of people? Meanwhile, Cramton also suspected that as many as 5 percent of customers were sneaking into shows without paying. And those who did pay were buying their tickets online as many as six months in advance.

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That might seem like a good thing. But Cramton had a hard time tracking the enormous reserve, which included hundreds of thousands of dollars earmarked to cover future dinners, salaries, and other costs. The company had no real accounting system, and its part-time accountant was lobbying hard for a chief financial officer or controller.

Cramton knew the accounting troubles were getting out of hand, but he was opposed to "paying people too much money to watch our money," he says, adding: Troupes could also use the tablets to hold Skype videoconferences with managers at company headquarters, which was likely to cut down emergency travel.

Any growing company eventually comes face to face with the question Cramton did: Is it time to put capital into building new capacity, and will it pay off if you do?

Which is sobering enough--until he adds that another major pitfall for growth companies is investing too much capital to meet demand that never materializes. In that case, your capital outlay could create a burden in leasing fees, debt payments, or depletion of precious cash great enough to sink the business.

Many entrepreneurs make the mistake of getting stuck on the niceties, wondering if the capital investment will streamline things or add convenience, says John Terry, founder of Dallas advisory firm ChurchillTerry.

Instead, Terry says, you should focus on one simple question: Will it bring money in the door? Cramton decided the numbers were low enough, and that he had enough cash on reserve, to take the gamble.

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More important, the software, which is installed on every tablet, is producing results. Cramton attributes the drop to the fact that employees are spending more wisely now that their activity is being tracked.May 19,  · We said last time a successful entrepreneur is the person who makes an idea happen, even if there are a lot of unexpected problems, and even .

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