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Do you talk too much?



“You don't want another Enron? Here's your law: If a company, can't explain, in ONE SENTENCE....what it does....it's illegal.”

- Lewis Black.


Lewis Black is a comedienne who practices making people laugh at the absurdity and hypocrisy that dominates modern American business.


He referenced his remarks to the Enron scandal, which happened October 2001, a long time ago, but it was an important event as it was the first of a series of scandals. This one led to the bankruptcy of the Enron Corporation and, more importantly, to the dissolution of Arthur Andersen, one of the largest audit and accountancy partnerships in the world at the time.


It happened because the founder and his Financial Director had developed a series of accounting loopholes, special purpose entities, along with poor financial reporting, that enabled them to hide billions of dollars in debt from a series of failed deals and projects.


Now, they were so successful in this that they not only misled the board of directors but also so confused their accountants, Arthur Andersen, that they simply ignore the issues.


Eventually in December 2001, it filed for bankruptcy having lost $63.4 billion! Making it the largest corporate bankruptcy in U.S. history until then. However, it happened again a year later when the telecom company, WorldCom, went down for even more!


As we all know the world still hadn’t learnt as in 2008 there was an even bigger collapse, the subprime mortgage crisis.


In each case the directors of these companies didn’t know what was happening, simply because their business models were so complicated that nobody except the perpetrators understood what was happening. The effect was that as it was being explained to them, they all switched off!


This is why I agree with Lewis Black, if you can’t explain your business in a maximum of 60 seconds it is too complicated, people switch off.


The point of this story is that the 60 second rule isn’t just for investors and company directors, it is essential when talking to customers, suppliers and staff.


At least then there is a chance that they will know what you are selling, buying or want done.


Which is why I ask the question; do you talk too much?


That’s Think Cash!

© Tony Dalton



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“If you don't want another Enron? Here's your law: If a company, can't explain, in ONE SENTENCE....what it does....it's illegal.” Lewis Black Lewis Black is a comedienne who practices making people la