Women on Business

AUGUST 24, 2011

For Harper, it was deciding to franchise her business as a practical way to expand, when she could not get working capital, plus be assured of an ownership base that would strictly follow her dictates.

Franchising 226

Franchising Succession Core Competence Follow-up 226

N2Growth Blog

AUGUST 1, 2016

Since taking up the CEO seat at Rio Tinto Sam has steered the business through a torrid industry downturn and firmly positioned them for new growth. billion), development and sustaining capital expenditure (reduced by a two-thirds), and divested a significant number of non-core businesses (4.7 billion in the last 5 years).

Gordon 150

Gordon Restructuring Leadership CEO 150

Strategy Driven

SEPTEMBER 18, 2019

If you are operating a start-up, you may face problems with managing the cash flow of your business efficiently and may have to rely on working capital loans. Working capital loans are not utilized for long periods or the purchase of noncurrent assets due to their short repayment period.

Working Capital 11

Working Capital Credit Scoring Long-term Short-term 11

Harvard Business Review

JUNE 22, 2016

They enable both the buyer and supplier to improve their working capital by making it possible for the former to extend its payables and at the same time accelerate payment to the latter. The use of FinTechs allows suppliers to access funding at the multinationals firm’s lower cost of capital.).

Supply Chain 10

Supply Chain Cost of Capital Transportation Finance 10

Harvard Business Review

SEPTEMBER 7, 2012

Positive business conditions coupled with relatively easy credit can entice firms to chase high growth. 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. The cost for using this tool is $37.50.)

Metrics 8

Metrics Working Capital Restructuring Banking 8

Harvard Business Review

APRIL 9, 2015

Investments in inventory and A/R are shown on a company’s balance sheet (a “snapshot” of a company’s financial position at a point in time) and are included in working capital — funds used in the operation of a business, often defined as current assets minus current liabilities.

ROI 8

ROI Analysis Rate of Return Net Present Value 8

Harvard Business Review

JANUARY 22, 2015

When consumers are certain about their latent demand, they are increasingly willing to provide positive cash flow in exchange for better value or more benefits. This allows you to better manage operating and capital expenses. It can also improve working capital. In early 2014, Starbucks said consumers loaded $1.4

Business Model 8

Business Model Loyalty Brand Price 8

Harvard Business Review

DECEMBER 10, 2012

Key to our advice is the implicit acknowledgement that all disruptive businesses find their strength in some technological or business model innovation that is fundamentally better positioned than their upmarket competitors in serving some segment of the population. To survive disruption, managers of legacy businesses need to change the game.

Price 8

Price Retail Business Model Christensen 8

Harvard Business Review

MAY 19, 2016

It became easier and easier for small enterprises to gain customer reach and awareness (along with working capital). But it didn’t quite work out that way. Large companies found themselves competing against a much larger group of rivals, and a more global group, than ever before.

IAM 10

IAM Productivity Products Company 10

Harvard Business Review

DECEMBER 15, 2015

This is ineffective deal management, and it eventually leads to loss of positioning with customers, and, over time, the nurturing of “commodity competencies.” Financing needs are driven by the cash on hand and the working capital required to conduct and grow the business.

Strategy 8

Strategy Team Discount ROIC 8

Harvard Business Review

JULY 10, 2013

Both of these case studies are of companies that have bootstrapped themselves to positions of great strength and negotiating leverage. In the case of Cableorganizer, banks would be delighted to finance their inventory and working capital to help accelerate growth. They CAN raise money now.

Incubator 8

Incubator Finance Entrepreneur Case Study 8

Harvard Business Review

JANUARY 22, 2013

As a result, charities and social enterprises do not have the cushion of external financing to manage their various capital requirements. Like any small business, they need working capital to balance out the peaks and troughs of their business cycle. Banks have a role to play in the social sector.

Banking 8

Banking Finance Due Diligence Short-term 8

Harvard Business Review

JUNE 22, 2015

For instance, a 25% reduction in the time needed to deliver a product or service can double the productivity of labor and of working capital. For example, one possible strategy is building dominant share positions with those customers who value faster, more reliable responses from their suppliers.

Supply Chain 8

Supply Chain Crisis Transportation Tactics 8

Harvard Business Review

JANUARY 10, 2013

With most high-potential ventures, however, founders must mobilize more resources than they control personally: the venture eventually will require production facilities, distribution channels, working capital, and so forth. In this view, entrepreneurs can be found in many different types of organizations, including large corporations.

Definition 9

Definition Entrepreneur Tactics Business Model 9

Harvard Business Review

FEBRUARY 24, 2015

But a study from 1999 found that long-run performance of both the former parent company and the divested unit is strongly positive, provided that the spin-off increases the company’s focus. A 2010 meta-analysis detailed many of the different issues that make divestiture so hard to evaluate consistently.

Chemicals 8

Chemicals How To Kahneman Reputation 8

Harvard Business Review

MARCH 15, 2018

Using a bank overdraft reflects the need for working capital either because the rest of the capital is tied up in inventory, property, or stock-in-trade or because the company has financial constraints, thus reflecting risk taking. At the same time, these beliefs have no basis in fact.

Venture Capitalist 10

Venture Capitalist Debt to Equity Ratio Real Estate Entrepreneur 10

Harvard Business Review

MAY 27, 2015

The type of capital required and its source depends on the type of business, its stage of life, and its strategy for the future. A supplier might need a working capital loan to finance a big order. The types of capital generally split into two areas: Debt and Equity.

Entrepreneur 8

Entrepreneur Policies Banking Innovation 8

Harvard Business Review

FEBRUARY 7, 2017

” Economic profit represents a company’s profit after subtracting a charge for the capital that the firm has invested (working capital, fixed assets, goodwill). In this case its capital charge is $800 times 8%, or $64. Subtracting the capital charge from profits gives $36 of economic profit.

Long-term 8

Long-term EPS Short-term Management 8

Harvard Business Review

JANUARY 9, 2013

Should he plow cash into increasing the pay of the disadvantaged people he employs, or build his working capital? Entrepreneurs can use this tool to evaluate their current position, and can use this information to adjust their business model or approach to tradeoffs. Should she influence the quality of care of more patients?

Entrepreneur 8

Entrepreneur Business Model Long-term Goal 8

Harvard Business Review

APRIL 20, 2015

The AIIB has working capital of $50 billion with potential to go as high as $100 billion – so it is, as yet, smaller than the U.S.-led billion of subscribed capital) or the Asian Development Bank ($162.8 billion of subscribed capital). and Japan are two of the most prominent players to decline membership.

Banking 8

Banking Development Policies Globalization 8

Rajesh Setty

SEPTEMBER 27, 2011

Once the $1 million revenue milestone is crossed, entrepreneurs find it easier to find additional customers, manage working capital, and access funding, whether it is credit or equity. In my roundtables, the vast majority of entrepreneurs I work with are in this rather vulnerable pre $1 million revenue stage.

Entrepreneur 54

Entrepreneur Stage-Gate Finance Incubator 54