3 ms·
Grow too fast and not judiciously. Expand rapidly, making assumptions about expenses and operations and revenue. Then a few months later, there were unexpected
by mwfunk 7y ago
Grow too fast and not judiciously. Expand rapidly, making assumptions about expenses and operations and revenue. Then a few months later, there were unexpected expenses, operations aren't going as smoothly as anticipated, and revenue is nonexistent. The buckets of money turns into buckets of debt (possibly actual debt, or maybe debt from the perspective of the investors). Then...not much you can do.
Companies grow because they hope more growth == more revenue == more profits, but it can easily go south. Fast forward a few months or years and they're stuck spending tons of money just to keep everything going, owing tons of money, but not making any money.