How can a company with noting to sell & no funding, hire over 40 people?

Discussion in 'Growing and Managing a Business' started by Fergal, Nov 27, 2009.

  1. Fergal

    Fergal
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    I read this Irish business news story today.

    The story baffles me to be honest. Why or how can a company employ over forty people before they have funding in place? Surely the process should be something like;


    1. Get a small management team or group of owners together
    2. Compile a good business plan
    3. Raise the required funding
    4. And only then hire the staff and incur the overhead costs?
    It's understandable that a company developing new and innovative technology, might employ research and development staff at the outset. But an executive jet service company is not exactly innovative.
     
  2. blacknight

    blacknight
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    There's a lot of those crazy stories floating around

    In today's Sunday Business Post - two car dealers closed - one owed over 20 million euro - the other over 17 million!
     
  3. Fergal

    Fergal
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    Nice to see you here again blacknight. That's crazy money. Car dealers don't actually make that much money on every car they sell. It's difficult to understand how they could run up such huge debts.
     
  4. blacknight

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    Or how about those guys who take millions in investment. Run the business into the ground and then start all over again?
     
  5. wussa

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    Well I guess the staff hired is included in the plan report or planning as they prepare the budget for their biz.
     
  6. Fergal

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    Unfortunately it happens all to often. I don't know how they get away with, I mean how do they get funding when they have a history of doing this kind of thing? "Fool me once ..."

    It's difficult to imagine how you would need over 40 people to prepare reports and business plans for an executive jet company?
     
  7. skyfire

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    it is possible. i have seen many companies with no investment starting with small works and later employed many people.
     

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