Return-Path: Delivered-To: alvarochf@traceseis.com Received: from cs510.bluehost.com by cs510.bluehost.com with LMTP id 0J7cJ/6Ujmnc6AoAWiBQxw (envelope-from ) for ; Thu, 12 Feb 2026 20:05:34 -0700 Return-path: Envelope-to: alvarochf@traceseis.com Delivery-date: Thu, 12 Feb 2026 20:05:34 -0700 Received: from o166.ptr78.mail.beehiiv.com ([159.183.29.70]:11618) by cs510.bluehost.com with esmtps (TLS1.3) tls TLS_AES_128_GCM_SHA256 (Exim 4.98.2) (envelope-from ) id 1vqjUs-000000031jz-1s71 for alvarochf@traceseis.com; Thu, 12 Feb 2026 20:05:34 -0700 DKIM-Signature: v=1; a=rsa-sha256; c=relaxed/relaxed; d=planetsmallbusiness.com; h=content-type:date:from:mime-version:subject:reply-to:list-unsubscribe: list-unsubscribe-post:to:cc:content-type:date:from:subject:to; s=d05; bh=Ok19hhLbLeZKPzzhqKmONQRJDli1pH0gyP/qETfM/NY=; b=HHQV6B/BWoAb5CSQA8JFPCosNQRqrNnVZUTKdOGTMHHHwww9GZO6OWpOHDwjMqYBu1rb YKWJjwmF0vV0uIdyWg8j7aKj+r1lgf0JydPk80IARuG30nVqMfUAXJvH3v8IvJNrU5eBNK 7gMPMFajkuc33qdLgYp6M3v7jQ7WTti3YPOxcYeCuTA/pUc5aFFmI5z8+cbNKqe8iSm52a LVlWmq80uj+ToeB2tEAMh1+Q1my+K0KATkjLYrP364n08eaGGUD1fHh90oFk3+SmqEc8rc JC+kmqKet4BbjaX30XAxbAxxV2NC9ROwUqtOWKFnpQ5ncZP7ofNQfdML2aYxH9bg== Received: by recvd-6cfbc69475-ktzpb with SMTP id recvd-6cfbc69475-ktzpb-1-698E94ED-33 2026-02-13 03:05:17.798295178 +0000 UTC m=+199898.302814023 Received: from NDQzOTkyMzY (unknown) by geopod-ismtpd-29 (SG) with HTTP id J8akB8QkRoCZhVgeztpuhA Fri, 13 Feb 2026 03:05:17.778 +0000 (UTC) Content-Type: multipart/alternative; boundary=600e03ae4fa39f3594ff9316d0af264378d3246c66b1352548f359bab6b0 Date: Fri, 13 Feb 2026 03:05:23 +0000 (UTC) From: Steve Strauss Mime-Version: 1.0 Message-ID: Subject: Phil Knight Was One Bank Call Away From Collapse. Again and Again Reply-To: Notes to an entrepreneur Feedback-ID: =?us-ascii?Q?e71d8e2f-399f-4de0-9096-63ea93f25755=3Anewsletter=3Abe56f4a0-b5ab-?= =?us-ascii?Q?45f5-af7d-e9fb8c385c45=3A795fb0691ea91b9?= List-Unsubscribe: =?us-ascii?Q?=3Cmailto=3Abe56f4a0-b5ab-45f5-af7d-e9fb8c385c45+e1509d45-2796-417?= =?us-ascii?Q?7-a9d9-f8bde2c6df8b+e71d8e2f-399f-4de0-?= =?us-ascii?Q?9096-63ea93f25755=40unsub=2Ebeehiiv=2Ecom=3E=2C?= =?us-ascii?Q?_=3Chttps=3A=2F=2Fnews=2Eplanetsmallbusiness=2Ecom=2Funsubscribe=2FeyJ0eXAiOiJK?= =?us-ascii?Q?V1QiLCJhbGciOiJIUzI1NiJ9=2EeyJzdWJzY3JpYm?= =?us-ascii?Q?VyX2lkIjoiZTE1MDlkNDUtMjc5Ni00MTc3LWE5Z?= =?us-ascii?Q?DktZjhiZGUyYzZkZjhiIiwicG9zdF9pZCI6ImU3?= =?us-ascii?Q?MWQ4ZTJmLTM5OWYtNGRlMC05MDk2LTYzZWE5M2Y?= =?us-ascii?Q?yNTc1NSIsImxhc3RfcmVzb3VyY2VfZ3VpZCI6Il?= =?us-ascii?Q?Bvc3Q6ZTcxZDhlMmYtMzk5Zi00ZGUwLTkwOTYtN?= =?us-ascii?Q?jNlYTkzZjI1NzU1In0=2EcUu462FYlQEcLBwXm8CS?= =?us-ascii?Q?GlMktmvJDL0X=5FVliOenS1OM=3E?= List-Unsubscribe-Post: List-Unsubscribe=One-Click sId: be56f4a0-b5ab-45f5-af7d-e9fb8c385c45 x-beehiiv-ids: =?us-ascii?Q?{=22account=5Fname=22=3A=22https=3A=2F=2Fnews=2Eplanetsmallbusiness=2Ecom=2F=22=2C=22campa?= =?us-ascii?Q?ign=5Fid=22=3A=22e71d8e2f-399f-4de0-9096-63ea93?= =?us-ascii?Q?f25755=22=2C=22category=22=3A=22newsletter=22=2C=22email=5F?= =?us-ascii?Q?generated=5Fat=22=3A1770951917=2C=22user=5Fid=22=3A=22be5?= =?us-ascii?Q?6f4a0-b5ab-45f5-af7d-e9fb8c385c45=22}?= x-beehiiv-type: newsletter x-list-id: be56f4a0-b5ab-45f5-af7d-e9fb8c385c45 x-list-owner: x-newsletter: =?us-ascii?Q?https=3A=2F=2Fnews=2Eplanetsmallbusiness=2Ecom=2Fp=2Fphil-knight-was-one-ban?= =?us-ascii?Q?k-call-away-from-collapse-again-and-aga?= =?us-ascii?Q?in?= x-newsletter-id: https://news.planetsmallbusiness.com/ x-newsletter-signup: https://news.planetsmallbusiness.com/subscribe X-SG-EID: =?us-ascii?Q?u001=2EbW9l0BBhaJRjHcuIgIwpN1rNe4oHXQ=2FdW4L87v1NEdDTOZzkElUHJx6Un?= =?us-ascii?Q?dOmNahVF2CQf67nZVUGzNbuvN=2Fh4Y5EALtlAbw6?= =?us-ascii?Q?KgL11=2FYZ79EfSgtr9sQJR9loCaiHexERu5rIIlw?= =?us-ascii?Q?Fh1wNDQg08pz61JqTT+FQma+DyhTQzJNileaQBu?= =?us-ascii?Q?RQA6KkLrHHssmLER8gUtFM0ebiJFB6IkiwiU6YF?= =?us-ascii?Q?LdzkV0HbFQLyoap6U=2Fd67gthU57Kj2xTWXeZ2A1?= =?us-ascii?Q?6wctNrziMtEcXDZ4wIw791Comw=3D=3D?= X-SG-ID: =?us-ascii?Q?u001=2ESdBcvi+Evd=2FbQef8eZF3BpTL9BgbK5wfSJMJGMsmprD1ZcmFObA4po1bG?= =?us-ascii?Q?aUE6gycDuoUB7q13D+=2FrHlPETjfj1Mp6L+863HI?= =?us-ascii?Q?Gl=2F3son9pNs=2FAm7TFtay4v6cZ2EeKxjVys3viK=2F?= =?us-ascii?Q?ql5SF5AphEw4FkIdXAUB1Yh6QduJDlPK+aJtDqb?= =?us-ascii?Q?o+bv87isq2XwJTBtOz7TiQkAgnaC=2Fv5noSrOczy?= =?us-ascii?Q?UjmjgMWCNJApz4Ha=2F+EcuD1om+5ls4ly08J4P4v?= =?us-ascii?Q?PIJJohrkEso8Ww707mc3QcS6Ut+9GNn9MvasKUg?= =?us-ascii?Q?q2ON6RLluBz7cg1E9ziqRw48GACiUKjI4OzzfKz?= =?us-ascii?Q?MYnaq+cSyr2F4CyYQtqxnU9DDv2F1h249EjRUXN?= =?us-ascii?Q?qxkQbzylldaR0Y8?= To: "alvarochf@traceseis.com" X-Entity-ID: u001.Gv86RTPl24Ephzd1t/ydVQ== --600e03ae4fa39f3594ff9316d0af264378d3246c66b1352548f359bab6b0 Content-Transfer-Encoding: quoted-printable Content-Type: text/plain; charset=utf-8 Mime-Version: 1.0 ---------- _I never knew just how tenuous the Nike story was - for years! - until I re= ad Phil Knight=E2=80=99s autobiography. Wow. And one thing I always loved a= bout Nike is their great content - commerials and ads and what have you._ _So, in Nike=E2=80=99s honor, tonight we offer a _**_Free Tool!_**_ - the _= [_Top 10 AI Content Creation Tools_](https://www.dropbox.com/scl/fi/btnh042= kv4lq3hjs5in2n/Top-10-AI-Tools-for-Content-Creation.pdf?rlkey=3Dgkrva5cn7z5= 2jaeuoh0tfb5wi&st=3Dxcqsz6vf&dl=3D0)_. Here are our top AI content creation= tools/sites, courtesy of your pals at Notes to an Entrepreneur!_ -------------------- Before there was Nike, there was a scraggly, scrappy, 26-year-old former mi= ddle-distance runner selling shoes out of the trunk of his car.=20 In 1964, Phil Knight started Blue Ribbon Sports to import running shoes fro= m Onitsuka Tiger in Japan and sell them at track meets around the Pacific N= orthwest. It sounds charming now. It was not charming then. From the beginning, the business had a structural problem: Cash . . . or a= lack thereof.=20 You see, Blue Ribbon had to pay Tiger before retailers paid Blue Ribbon. So= every time sales increased, so did the size of the next order, and every l= arger order required a larger bank loan. Growth did not make things safer.=20 It made things tighter. In his autobiography, _Shoe Dog_, Knight describes living in constant tensi= on with his bank for years:=20 * His credit line was constantly stretched * Bankers continuously questioned him * Extensions were negotiated time and again. At one point, the Bank of Oregon nearly pulled all of its support. If that = had happened, the company would have collapsed overnight. And that was just the early chapter. Money was a constant worry, problem. ## Nike=E2=80=99s Supplier War Things got worse. In the early 1970s, Tiger began exploring other U.S. distributors. The very= company supplying Blue Ribbon Sports its product was quietly trying to rep= lace Blue Ribbon Sports. The relationship deteriorated into a legal battle.= While fighting that dispute, Knight and his team made a high-stakes move:=20 They secretly created their own brand and named it Nike ( for the Greek god= dess of victory) The swoosh? Created by an intern and purchased for $35.=20 They launched, barely.=20 But then came another hit. ## Fighting the Feds In the mid-1970s, the U.S. government reclassified imported footwear in a w= ay that dramatically increased Nike=E2=80=99s customs duties. The bill was = massive and Nike suddenly faced a multi-million-dollar tax bill that threat= ened to wipe them out. Money became, somehow, a secondary problem. Knight writes about the shock o= f realizing the government was now a bigger threat than unruly banks or tou= gh competitors.=20 Nike challenged the assessment, but in the meantime, the liability loomed. = Cash was already tight. Now it was potentially catastrophic. As if that were not enough, the issue also triggered federal scrutiny. At o= ne point, **the FBI showed up** during the broader customs investigation. I= magine building a young company, already stretched thin, and then federal a= gents walk in. Eventually - whew! - they settled.=20 ## Crisis Stacked on Crisis Yet even as sales climbed, the cash pressure never disappeared. Rapid growt= h required bigger production runs, more overseas manufacturing, more financ= ing. The faster Nike grew, the more money it needed. For years, the company was profitable on paper and starved in practice. Finally - finally! - came oxygen. ## Swish . . . err, Swoosh! In 1980, Nike went public.=20 The IPO was not just a milestone. It was relief. The infusion of capital st= abilized the balance sheet, reduced dependence on fragile bank credit lines= , and finally gave the company room to operate without constant financial b= rinkmanship. And then they signed Michael Jordan and lived happily ever after. ---------- ---------- ## The Takeaway The great thing about Phil Knight=E2=80=99s story is that he refused to sto= p growing his business, even when the odds were against him. Money problems= ? Onward! Tax issues? Onward! The FBI? Bring it on! For we mere mortal entrepreneurs, it=E2=80=99s a lesson is perseverance and= believing in your vision.=20 ---------- =E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2= =80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80= =94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94= =E2=80=94=E2=80=94 ---------- ### Investor notes without the rewrite View image: (https://media.beehiiv.com/cdn-cgi/image/fit=3Dscale-down,forma= t=3Dauto,onerror=3Dredirect,quality=3D80/uploads/asset/file/2abd3be3-2a91-4= e11-8097-28d09125b572/Newsletters_Image_1920x1080__6_.png?t=3D1767983235) Follow image link: (https://ref.wisprflow.ai/beehiiv-biz/?utm_campaign=3D0L= GATGWRUS&utm_source=3Dbeehiiv&utm_term=3Dbiz_secondary1&_bhiiv=3Dopp_d16aaa= b8-3203-4b83-bed7-f0da4eeb4d9a_e39e1811&bhcl_id=3Da001737a-aea8-4119-b638-0= 015094917eb_e1509d45-2796-4177-a9d9-f8bde2c6df8b_eaa7bafd-5791-489b-96e6-b1= ca32cb26b5) Caption:=20 Dictate meeting recaps, strategic plans, and executive summaries and get po= lished writing ready to paste. [Wispr Flow](https://ref.wisprflow.ai/beehii= v-biz/?utm_campaign=3D0LGATGWRUS&utm_source=3Dbeehiiv&utm_term=3Dbiz_second= ary1&_bhiiv=3Dopp_d16aaab8-3203-4b83-bed7-f0da4eeb4d9a_e39e1811&bhcl_id=3Da= 001737a-aea8-4119-b638-0015094917eb_e1509d45-2796-4177-a9d9-f8bde2c6df8b_ea= a7bafd-5791-489b-96e6-b1ca32cb26b5) preserves nuance and formats numbers an= d lists cleanly. Try Wispr Flow for founders. [See a demo](https://ref.wisprflow.ai/beehiiv-biz/?utm_campaign=3D0LGATGWRU= S&utm_source=3Dbeehiiv&utm_term=3Dbiz_secondary1&_bhiiv=3Dopp_d16aaab8-3203= -4b83-bed7-f0da4eeb4d9a_e39e1811&bhcl_id=3Da001737a-aea8-4119-b638-00150949= 17eb_e1509d45-2796-4177-a9d9-f8bde2c6df8b_eaa7bafd-5791-489b-96e6-b1ca32cb2= 6b5) ---------- =E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2= =80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80= =94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94= =E2=80=94=E2=80=94 ---------- ## Steal This Strategy =F0=9F=93=96 **Book** =E2=80=94 [_**Shoe Dog**_](https://www.amazon.com/Sho= e-Dog-Memoir-Creator-Nike/dp/1501135910/ref=3Dsr_1_1?crid=3D341VYODYQUHSW&d= ib=3DeyJ2IjoiMSJ9.jOjyM9oEG5ZRK4lKHP_6u_eyAAYH5Twf_Jcz5zyGUEaHSC97PLWG-W11K= LITuwEsaHCbHHKsuDtBInmWDqu3kLH9iaDl-G_xCHFKV-OLjyMoJ7waiRQ2a2MzHZ0HmhEkDao1= FsUwZVJ29b23wgf2ehD1ZSA7yqF0cZ4Br5rkV1uaAqnyaJncGD-_p4N60--jaemUYaE6CCgNtPf= 2hMbHG7rgQr3HSQDhcpcdnfXxS2Q.aKByo7r7OCNuBumS-XXGZqVVihtsOQOrjgOgSEguD1Q&di= b_tag=3Dse&keywords=3Dshoe+dog&qid=3D1770947140&s=3Dbooks&sprefix=3Dshoe+sd= og%2Cstripbooks%2C322&sr=3D1-1)_** - **_Phil Knight=E2=80=99s jaunty autobi= ography about one of the great entrepreneurs of modern times. =F0=9F=8F=9B=EF=B8=8F **Branding**: **[Nike Commercial](https://www.youtube= .com/watch?v=3DdBxcunGc_nA&list=3DPLDAC24B779BBED703)**** **- We all want t= o be like Mike! =F0=9F=9B=A0=EF=B8=8F **Free Tool!** =E2=80=94 **[Top 10 AI Content Creatio= n Tools](https://www.dropbox.com/scl/fi/btnh042kv4lq3hjs5in2n/Top-10-AI-Too= ls-for-Content-Creation.pdf?rlkey=3Dgkrva5cn7z52jaeuoh0tfb5wi&st=3Dxcqsz6vf= &dl=3D0)** Nike has always been great at creating content, and these days y= ou can be too. Here are our top AI content creation tools/sites, courtesy o= f your pals at Notes to an Entrepreneur! ---------- =E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2= =80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80= =94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94= =E2=80=94=E2=80=94 ---------- ---------- =E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2= =80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80= =94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94= =E2=80=94=E2=80=94 ---------- ### About Steve=20 Steve Strauss is the best-selling author of __[The Small Business Bible](ht= tps://www.amazon.com/The-Small-Business-Bible-Everything/dp/1118135946/ref= =3Dntt_at_ep_dpt_1?utm_source=3Dnews.planetsmallbusiness.com&utm_medium=3Dn= ewsletter&utm_campaign=3Dbutterball-s-turkey-talk-line-the-hotline-that-sav= ed-thanksgiving&_bhlid=3D3858bc9a4c0ec12e508ddbbc0df9091aba0c31f0)__ (and 1= 7 other books), Inc.=E2=80=99s _[small business columnist](https://www.inc.= com/author/steve-strauss?utm_source=3Dnews.planetsmallbusiness.com&utm_medi= um=3Dnewsletter&utm_campaign=3Dbutterball-s-turkey-talk-line-the-hotline-th= at-saved-thanksgiving&_bhlid=3Dd32fdb0ff6e2daa2aa9027df4d9f8b20b6305b2c)_, = a lawyer (non-practicing), and an entrepreneur. He sold his last venture, _= [TheSelfEmployed.com](https://TheSelfEmployed.com)_ to Mark Cuban & Zen Bus= iness. Need a ghostwriter or a newsletter for your business? =3D= =3D_[Contact Steve!](http://sstrauss@mrallbiz.com)_=3D=3D ---------- =E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2= =80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80= =94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94=E2=80=94= =E2=80=94=E2=80=94 =E2=80=9C**=E2=80=9CBe bold! For boldness has genius, magic, and power in i= t.=E2=80=9D **=E2=80=9C =E2=80=94 **- Goethe** =E2=80=94=E2=80=94=E2=80=94 You are reading a plain text version of this post. For the best experience,= copy and paste this link in your browser to view the post online: https://news.planetsmallbusiness.com/p/phil-knight-was-one-bank-call-away-f= rom-collapse-again-and-again --600e03ae4fa39f3594ff9316d0af264378d3246c66b1352548f359bab6b0 Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset=utf-8 Mime-Version: 1.0 Phil Knight Was One Bank Call Away From Collapse. Again and Again= <= body class=3D"a" style=3D"margin:0px auto;padding:0px;word-wrap:normal;word= -spacing:normal;background-color:#FFFFFF;">
Talk = about living on the edge!  ‌ ‌ ‌ R= 04; ‌ ‌ ‌ ‌ ‌ &= #8204; ‌ ‌ ‌ ‌ ‌= 0;‌ ‌ ‌ ‌ ‌ ‌&= #160;‌ ‌ ‌ ‌ ‌ ̴= 4; ‌ ‌ ‌ ‌ ‌ &#= 8204; ‌ ‌ ‌ ‌ ‌ = ;‌ ‌ ‌ ‌ ‌ ‌&#= 160;‌ ‌ ‌ ‌ ‌ ‌= ; ‌ ‌ ‌ ‌ ‌ = 204; ‌ ‌ ‌ ‌ ‌ = ‌ ‌ ‌ ‌ ‌ ‌= 60;‌ ‌ ‌ ‌ ‌ ‌=  ‌ ‌ ‌ ‌ ‌ R= 04; ‌ ‌ ‌ ‌ ‌ &= #8204; ‌ ‌ ‌ ‌ ‌= 0;‌ ‌ ‌ ‌ ‌ ‌&= #160;‌ ‌ ‌ ‌ ‌ ̴= 4; ‌ ‌ ‌ ‌ ‌ &#= 8204; ‌ ‌ ‌ ‌ ‌ = ;‌ ‌ ‌ ‌ ‌ ‌&#= 160;‌ ‌ ‌ ‌ ‌ ‌= ; ‌ ‌ ‌ ‌ ‌ = 204; ‌ ‌ ‌ ‌ ‌ = ‌ ‌ ‌ ‌ ‌ ‌= 60;‌ ‌ ‌ ‌ ‌ ‌=  ‌ ‌ ‌ ‌ ‌ R= 04; ‌ ‌ ‌ ‌ ‌ &= #8204; ‌ ‌ ‌ ‌ ‌= 0;‌ ‌ ‌ ‌ ‌ ‌&= #160;‌ ‌ ‌ ‌ ‌ ̴= 4; ‌ ‌ ‌ ‌ ‌ &#= 8204; ‌ ‌ ‌ ‌ ‌ = ;‌ ‌ ‌ ‌ ‌ ‌&#= 160;‌ ‌ ‌ ‌ ‌ ‌= ;

February 12, 2026  = ; |   = Read Online

3D""

Phil Knight Was One Bank Ca= ll Away From Collapse. Again and Again

Talk about living on the edge =

=
=
<= tr>
3D"like"
 
3D"comment"
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I never knew just how tenuous the Nik= e story was - for years! - until I read Phil Knight=E2=80=99s autobiography= . Wow. And one thing I always loved about Nike is their great content - com= merials and ads and what have you.

So,= in Nike=E2=80=99s honor, tonight we offer a Free Tool! - the Top 10 AI Content Creation Tools. Here are our top AI content creation tools/sites, courtesy = of your pals at Notes to an Entrepreneur!

<= /td>		  
 
= =

Swish . . . err= , Swoosh!

Before there was Nike, there was a scraggly, scrappy, 26-year-o= ld former middle-distance runner selling shoes out of the trunk of his car.=

In 1964, Phil Knight started Blue Ribbon Sp= orts to import running shoes from Onitsuka Tiger in Japan and sell them at = track meets around the Pacific Northwest.

It = sounds charming now. It was not charming then.

From the beginning, the business had a structural problem: Cash . . . or = a lack thereof.

You see, Blue Ribbon had to = pay Tiger before retailers paid Blue Ribbon. So every time sales increased,= so did the size of the next order, and every larger order required a large= r bank loan.

Growth did not make things safe= r.

It made things tighter.

In his autobiography, Shoe Dog<= /span>, Knight describes living in constant tension with h= is bank for years:

  • His credit line was constantly stretched=

  • Ban= kers continuously questioned him

  • Extensions were negotiated time and aga= in.

At one point, the Bank of= Oregon nearly pulled all of its support. If that had happened, the company= would have collapsed overnight.

And that was= just the early chapter. Money was a constant worry, problem.

Ni= ke=E2=80=99s Supplier War

Things got worse= .

In the early 1970s, Tiger began exploring o= ther U.S. distributors. The very company supplying Blue Ribbon Sports its p= roduct was quietly trying to replace Blue Ribbon Sports. The relationship d= eteriorated into a legal battle. While fighting that dispute, Knight and hi= s team made a high-stakes move:

They secretl= y created their own brand and named it Nike ( for the Greek goddess of vict= ory)

The swoosh? Created by an intern and pur= chased for $35.

They launched, barely.

But then came another hit.

Fighting th= e Feds

In the mid-1970s, the U.S. government= reclassified imported footwear in a way that dramatically increased Nike= =E2=80=99s customs duties. The bill was massive and Nike suddenly faced a m= ulti-million-dollar tax bill that threatened to wipe them out.

Money became, somehow, a secondary problem. Knight writes= about the shock of realizing the government was now a bigger threat than u= nruly banks or tough competitors.

Nike chall= enged the assessment, but in the meantime, the liability loomed. Cash was a= lready tight. Now it was potentially catastrophic.

As if that were not enough, the issue also triggered federal scrutiny= . At one point, the FBI showed up during the broader customs investigation. Imagine building a = young company, already stretched thin, and then federal agents walk in.

Eventually - whew! - they settled.

C= risis Stacked on Crisis

Yet even as sales cl= imbed, the cash pressure never disappeared. Rapid growth required bigger pr= oduction runs, more overseas manufacturing, more financing. The faster Nike= grew, the more money it needed.

For years, t= he company was profitable on paper and starved in practice.

Finally - finally! - came oxygen.

In 1980, Nike went public. =

The IPO was not just a milestone. It was relief. Th= e infusion of capital stabilized the balance sheet, reduced dependence on f= ragile bank credit lines, and finally gave the company room to operate with= out constant financial brinkmanship.

And then= they signed Michael Jordan and lived happily ever after.

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The Takeaway

= The great thing about Phil Knight=E2=80=99s story is that he refused to sto= p growing his business, even when the odds were against him. Money problems= ? Onward! Tax issues? Onward! The FBI? Bring it on!

For we mere mortal entrepreneurs, it=E2=80=99s a lesson is persevera= nce and believing in your vision.

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Steal This Strateg= y

=F0=9F=93=96=C2=A0Book =E2=80=94 Shoe Dog - Phil Knight=E2=80=99s jaunty autobiography about one o= f the great entrepreneurs of modern times.

= =F0=9F=8F=9B=EF=B8=8F Branding: Nike Commercial=C2=A0<= /b>- We all want to be like Mike!

=F0=9F=9B=A0=EF=B8=8F Free Tool! =E2=80=94 Top 10 A= I Content Creation Tools Nike has al= ways been great at creating content, and these days you can be too. Here ar= e our top AI content creation tools/sites, courtesy of your pals at Notes t= o an Entrepreneur!

 

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About Steve

Steve Strauss is the best-selling author of= The Small Business Bible= (and 17 other books), Inc.=E2=80=99s small business columnist, a lawyer (non-practicing), and an entrepreneur. He sold his l= ast venture, TheSelfEmployed.com to Mark = Cuban & Zen Business. Need a ghostwriter or a newsletter for your business?= Contact Steve!

  
 

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=E2=80=9CBe bold! For boldness has g= enius, magic, and power in it.=E2=80=9D

 
- Goethe
3D"tw"3D"=3D"in"
 

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