"Let everyone else call your idea crazy ... just keep going. Don't stop. Don't even think about stopping until you get there, and don't give much thought to where "there" is. Whatever comes, just don't stop." --- Phil Knight, Shoe Dog (2016)
Introduction
In 1965, Phil Knight discovered a philosophy by which he centered everything he was doing: To have cash balances sitting around doing nothing made no sense to me. Sure, it would have been the cautious, conservative, prudent thing. But the roadside was littered with cautious, conservative, prudent entrepreneurs. I wanted to keep my foot pressed hard on the gas pedal.
By 1975, he was still having the same problem as they were undergoing an explosion in assets and inventory which continued to put enormous strains on their cash reserves. Sales were through the roof but they were still cash-poor. Fast forward to today, and Nike is a cash-rich business whose days of cash constraints are long gone!
The lesson I take away from reading this memoir is that cash in a growth company is a problem. Every penny you make will be reinvested back in the business and you will struggle to make every single payment. You will borrow every nickel you can and plow it right back into chasing growth. But always remember that fortune favors the brave.
Beating the competition is relatively easy. Beating yourself is a never-ending commitment.
Visual Representation of Lessons from Shoe Dog
