The Working Capital Trap
Every company wants to grow. Growth is a sign of vitality and is or should be a source of profit. Perhaps, profitable growth is a better way to describe what everyone aspires to achieve. If that is the goal, then what gets in the way more often than anything else? The answer is two-fold. The first explanation involves people working on the wrong things. Inadequate staffing in quality of quantity can stifle growth. The second (and most common) problem is shortages of working capital.