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5 Ways Smart Startup Founders Strategically Manage Operating Capital

Strategy Driven

And with financing being one of the primary reasons startups go under, the right strategy needs to involve improving upon your operating capital. What Is Operating Capital? Sometimes called “working capital,” operating capital is the sum of a business’s current assets minus its current liabilities.

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Diversification Putting Pressure on FinTech Executives

N2Growth Blog

Although digitization has a significant catalytic effect on these processes, a successful diversification strategy would still need a solid basis and a set of scalable growth patterns that could apply to target markets. It will most likely overcome cross-cultural barriers as it expands into new markets.

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How Middle Market Companies Can Avoid a Liquidity Crisis

Harvard Business Review

Managers tend to think about liquidity as a finance issue, but in face the behaviors of the sales and operations team — and how they communicate and work together — can have a direct affect on a company’s cash position. Following these steps can reduce a company’s working capital needs and increase earnings and cash flow.

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Leadership Matters

N2Growth Blog

In the text that follows you’ll hear Sam’s views on leadership, the state of the market, and you’ll be introduced to his retirement ambitions and the future challenges for the boardroom, following his return to Perth, Australia. I had joined the Rio Board in 2009, so I already had broad oversight of the company’s diverse operations.

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Are You Growing Too Fast?

Harvard Business Review

Heffington, working with Steve Curnutte, a restructuring advisor, realized that as new orders poured in, it became difficult to establish the true cost of fulfilling them. And, because credit was readily available to cover the growing need for working capital, it was easy to ignore the sizable number of unprofitable and late paying customers.

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How to Know If a Spin-Off Will Succeed

Harvard Business Review

The first category is exogenous factors over which the business has little control: the growth of the markets into which it sells; the competitive intensity and thus the average profitability of the industry in which it operates; or the fragmentation of its industry and thus the scope for a growth-by-acquisition approach.

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Why Preventing Disruption in 2017 Is Harder Than It Was When Christensen Coined the Term

Harvard Business Review

Over time, their products and services became better and better, and those innovative entrants moved up market, slowly increasing performance. If an organization could isolate a unit and focus it exclusively on the disruptive market, it had an opportunity to succeed. For those companies with the skill to pull it off, it worked.