Can Too Much Money be a Business Problem?

Who ever thinks that too much money is a problem, especially in business? In an article about "Why Too Much Money is Worse than Too Little", our venture capitalist explains many of the pitfalls that happen when a business receives an increasing amount of cash. Issues that arise include:
1. Expenses expand to the level of funding
2. Money creates a false sense of security
3. Money makes companies hire “proven” people
4. Money makes companies buy people with salaries
5. Money causes dependence on experts and vendors.
6. Money makes entrepreneurship look like a serial process.

Source http://www.openforum.com

 

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