« All about that grace | Main | Serious awws »

May 14, 2015

You gotta know when to hold 'em

From NowIKnow. I don't know whether this story's true but I sure hope it is.

While FedEx showed promise even early on, it didn’t reach profitability very quickly. The company burned through its capital within a year or two and, in or around 1974, found itself short on cash. At one point, FedEx was down to about $5,000. There were some potential investors who were considering giving the company a cash infusion it sorely needed, but that would take some time to sort out. And Smith was out of time. As recounted by the company’s former SVP of Operations Roger Frock in his book, “Changing How the World Does Business: FedEx’s Incredible Journey to Success,” FedEx had a $24,000 jet fuel bill due. And it doesn’t take a Yale grad to figure out that it’s hard to pay a $24,000 bill when you have only $5,000 in the bank.

So how did FedEx stay afloat? Frock explains:

When I arrived back in Memphis [where FedEx is headquartered] on Monday morning, much to my surprise, the bank balance stood at nearly $32,000. I asked Fred where the funds had come from, and he responded, “The meeting with the General Dynamics board was a bust and I knew we needed money for Monday, so I took a plane Las Vegas and won $27,000.” I said, “You mean you took our last $5,000–how could you do that?” He shrugged his shoulders and said, “What difference did it make? Without the funds for the fuel companies, we couldn’t have flown anyway.” Fred’s luck held again. It was not much but it came at a critical time and kept us in business for another week.

Posted by joke du jour at May 14, 2015 07:02 PM

« All about that grace | Main | Serious awws »

Trackback Pings

TrackBack URL for this entry:
http://crainium.net/ajw-mt/mt-tb.fcgi/9367

Comments

Post a comment




Remember Me?

(you may use HTML tags for style)

Send this to a friend

E-mail this entry to:


Your e-mail address:


Message (optional):