Originally published on: MoneyGeek
In his book “Delivering Happiness,” Tony Hsieh recounted the story of Zappos, the online retailer now owned by Amazon. According to the book, here was one point in Zappos’ history when they almost went bankrupt. In order to keep the company alive, Tony put his loft up for sale. If the loft was sold, they would have cash to live another day.
If not, the game was over. No one could argue that Tony’s loft held value, but it was far from certain that he’d be able to sell it in time. In other words, Tony had a liquidity problem.
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