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Research Shows That Investing In Tech Matters

The Horizons Tracker

Efficiently managing the money a company needs to run its daily operations, known as working capital, is crucial for success. This connection between good working capital management and how well a company does can be complicated. This means keeping DIO and DSO low and extending DPO.

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Recommended Resources – An Interview with Paul Leinwand and Cesare Mainardi, authors of The Essential Advantage

Strategy Driven

The conventional wisdom about strategy may be leading your company astray. Achieving coherence requires a sharpness of focus that few companies have mastered. In this unpredictable economy, traditional approaches to strategy are a luxury most companies cannot afford. by Paul Leinwand and Cesare Mainardi. Let’s go after it.”

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What Netflix and Starbucks Know About Cash Flow

Harvard Business Review

The success Netflix is enjoying was far from certain if you recall the summer of 2011. That’s when the company suffered through the Quikster controversy and a protest over its price increase. Think of it as Kickstarter for established companies and their consumers. What successful companies are doing right.

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How to Know If a Spin-Off Will Succeed

Harvard Business Review

There is little consensus as to whether firms that find themselves spun off from other companies – either as new, standalone companies, or under the stewardship of new parent companies – perform better or worse than they did before. Does the business have a complete, balanced, and cohesive management team?

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How Startups Overcome the Capital Gap

Harvard Business Review

You may have another kind of track record, such as working successfully at a large company. Sridhar had a small network management tools business that basically functioned as a highly profitable cash cow. Fast-forward to 2013: Zoho is a $200 million dollar a year company. No venture capital. And play he did.

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Some of the Most Successful Platforms Are Ones You’ve Never Heard Of

Harvard Business Review

Both associations managed their brands and ran the clearing and settlement systems for banks that issued cards or helped merchants accept cards. These card networks were allowed to charge their members just enough to cover cost and provide working capital. Thousands of companies belong to them and many belong to several.

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My First, Failed Foray into Venture Investing

Harvard Business Review

Because he didn't have any capital, and therefore no leverage, his initial equity stake was small, such that even as the company's valuation increased in subsequent financing rounds, he suffered massive dilution. And because my husband and I were the providers of working capital, I had the luxury of being cavalier.