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You may have another kind of track record, such as working successfully at a large company. It has been built without outside capital, entirely. He grew the business organically, with revenue and profits, not outside capital. No venture capital. And for some, terribly exciting when hard work yields customers, revenues, and profits. In the case of Cableorganizer, banks would be delighted to finance their inventory and working capital to help accelerate growth. MORE
No matter what industry it''s in or what product it''s selling, the absolute best way for a startup to obtain the capital it needs to grow is to generate revenue and reinvest profits. Made popular by KickStarter, crowdfunding primarily works on a ''donation'' model, whereby the ''crowd'' of investors funds projects, including causes like liberating Egypt. Finally, working capital financing is one of the key requirements of all small startups. Capitalism 2.0 MORE
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.). The supplier gives the buying firm a discount on the invoice amount at the buyer’s lower cost of capital. MORE
Better predictive ability from rich customer data has another important benefit: Amazon does not keep most of its products in inventory for very long, significantly reducing its working capital requirement. Companies have invested millions of dollars in big data and analytics, but recent reports suggest most have yet to see a payoff on these investments. MORE
For those companies with the skill to pull it off, it worked. Construction equipment and disk-drive manufacturing required heavy machinery, distribution facilities, and immense amounts of working capital. Their creditors priced capital for the new efforts along with the core. Every winter, my colleagues and I invite CEOs of some of the world’s largest businesses to join our students at Stanford University. MORE
Finance business finance working capitalWe've Moved! Update your Reader Now. This feed has moved to: [link] If you haven't already done so, update your reader now with this changed subscription address to get your latest updates from us. link]. MORE
As more people depended on him, he spent his working capital, and the business failed. When artisans have no understanding of their cash flows, they fail prey to spending a big percentage of their working capital, without meaning to, on non-business issues that usually cripple their operations. The boy was 11 years old when his father took him to live with a kinsman, a businessman with many shops in Lagos, Nigeria. MORE
Due to huge capital requirements, these investments could exert considerable pressure on the working capital of the carrier company. Bharti's innovative business model converted fixed costs in capital expenditure to a variable cost based on usage of capacity. telecom carriers face daunting challenges from device makers, content providers, social networks, and an array of disruptive technologies. But the solutions may not be housed on their own soil. MORE
Anyone familiar with Professor Christensen's work will quickly recognize the same causal mechanism at the heart of the Innovator's Dilemma: the pursuit of profit. It had 90 days working capital on hand when he took over — in other words, Apple was only three months away from bankruptcy. An executive who worked at both Apple and Microsoft described the differences this way: "Microsoft tries to find pockets of unrealized revenue and then figures out what to make. MORE
Further, they need to limit their focus to, at most, six capabilities, and make those capabilities work together as a mutually reinforcing system that perpetuates competitive advantage. Capabilities-driven strategy works in all contexts. MORE
The principal recommendations are: Retail banking should be ring-fenced inside separate subsidiaries; All banks (retail or otherwise) should have an equity or other loss-absorbing capital capacity of 17-20% of their assets; Depositors would rank higher than other creditors in the event of insolvency; Make sure that a sale of 600 odd branches of Lloyd's bank produces a viable new U.K. MORE
They had to work in sequence, meaning they had to streamline the operation first — before they could launch their new growth effort. The underlying trouble had been McDonald’s working from an inside-out perspective: what fit with its current infrastructure and operations. MORE
For some, it refers to venture capital-backed startups and their kin; for others, to any small business. At a new venture's outset, its founders control only their own human, social, and financial capital. 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. Entrepreneurship Venture capital MORE
Any Equity grants based on merit work will be suspended too for the time being. billion capital raise. This included working capital for all regions and for the expansion of the Shanghai factory. “We Employees that have not been assigned any task for are not working from home have been furloughed off till May 4. Furloughed employees are generally given time off from work without pay for a specified period to tide over any emergency situation at a workplace. MORE
This allows you to better manage operating and capital expenses. It can also improve working capital. And brands that have earned high degrees of trust with great loyalty and passion—whether in a sexy category or not—are in the best position to capitalize on it. Netflix just announced its best quarter ever. Its subscriber count went up 13 million worldwide, and investors are enthused. Its U.S. business ended 2014 with 39.1 MORE
The old approach to Russia won’t work. This worked, because both crises were short-lived (lasting approximately 1-1.5 For example, one consumer goods company we work with recently held a full-day strategy workshop with its local Russian team and partners to revamp their assumptions about the Russian customer, understand how demand and preferences are evolving, and figure out what this means for their strategy in terms of pricing, product portfolio, and channel. MORE
For instance, McKinsey considered a smaller ratio of capital expenditure to depreciation to indicate short-term thinking, because it’s assumed that short-term companies will invest less, and less consistently, than other companies. Repaying such profits to shareholders through share repurchases is better than misinvesting that cash to diversify into unrelated businesses in which management has no expertise or overinvesting in projects that may not return cost of capital. MORE
They checked out the market, discussed the business idea with friends and family and feels they can come up with enough capital to set themselves up for success. Unfortunately, often the amount of working capital needed to fund the project is simply not enough to account for all the expenses that arise with a new business. It seems that most businesses fail, not due to the validity of the idea, but rather that the project was under capitalized or underfunded from the start. MORE
Income statements almost always include an allowance for depreciation of capital assets. That statement records cash generated by a company’s operations and cash spent on those operations; cash spent on capital assets (and cash generated by the sale of capital assets); and cash received from, or paid to, lenders and shareholders. Your company is ready to make a big purchase — a fleet of cars, a piece of manufacturing equipment, a new computer system. MORE
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. Second, get a solid grasp of your working capital needs--how much cash does your firm require to conduct day-to-day business? MORE
They checked out the market, discussed the business idea with friends and family and feels they can come up with enough capital to set themselves up for success. The simple fact is that if you cannot preserve your working capital, “You won’t make it”. MORE
In 1973/4 I participated in an Overseas Fellowship at General Motors Institute (now Kettering University) in a work/study cooperative programme in Flint, Michigan, which was the birthplace of GM. It has the strongest balance sheet, is the most profitable mining business in the world (measured by underlying earnings and cash generation), has substantially reduced costs (by some $6 billion), working capital ($3.5 (as featured in mining.com). CEO Interview: Sam Walsh. MORE
Such farmers will be able to invest in mechanized methods of production, and to generate working capital to use better seeds and other inputs Trouble is, the consolidation of land holdings could take a generation, or more, to happen since many families will be reluctant to trade away their land use rights. For Beijing, tackling China's high inflation rate — 6.1% in September 2011, down slightly from the three-year peak of 6.5% MORE
Think about what’s talked about in the endless meetings that happen at work. Participants talk about stock price, earnings per share, revenue, gross margins, sales, operating cash flow, working capital, and the like. “Hmm, you’re one of those people,” sneered my neighbor. “A A do-gooder.”. That wasn’t the first—and it won’t be the last—time that someone, usually a man, had mocked my efforts to do good and do well. That used to upset me. Hurt my feelings, too. MORE
They have virtually no access to capital markets and little flexibility to experiment at various stages of growth. There are $700 billion of foundation assets, and 10 million people working for non-profits. Yet there are massive inefficiencies in capital allocation. Compare that to the world of venture capital. We believe we are on the threshold of a major change not unlike the early days of the modern venture capital industry. Social enterprise Venture capita MORE
Among the firms we identified as focused on the long term, average revenue and earnings growth were 47% and 36% higher, respectively, by 2014, and market capitalization grew faster as well. and historic lows in new capital investment. Ambitious work has even attempted to quantify economic growth foregone due to cuts in R&D expenditure driven by short-termism, putting it in the range of about 0.1% public market capitalization over this period. MORE
The concept is fairly straightforward: The parties define the result up front, agree on a baseline, work out how confident the organization is in delivering the result, and then specify the expectation and payment in the contract. When PbR Doesn’t Work. Finally, some companies have struggled to finance their activities without payment while they work on delivering the results, limiting their ability to innovate too. Making PbR Work. Samuel Castro. MORE
Capital investment and operating expenses are high because cooking equipment and raw materials must be the best: wines devour working capital, the kitchen and serving staff must be paid handsomely, and crystal glasses and crockery will break. Oldani has created a Michelin restaurant for the masses by working on two fronts. MORE
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. In our book Strategy That Works we articulate what those capabilities can look like, how to blueprint and build them, and how to bring them to scale. Start from your goal and work backward, articulating the steps you’ll need to take to get from the capabilities you have to the capabilities you need. MORE
Everyone who is a part of a business expects to work for a company who cares. There is an increasingly competitive marketplace for top talent out there and companies are desperate to recruit people who have charisma, brains and talent for the role that they work in. When you need cash fast for your business because you decide an impromptu meal out for your team is needed, you would do everything you can to get it purely to show your gratitude for the work that they put in. MORE
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. Every industry goes through a period where the revenues plummet and affect the amount of working capital available. MORE
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. Over the course of 2010, the work did gain momentum, and we were joined by many of our readers from around the world who decided to make this resolution their own. MORE
Let me explain this statement in the context of companies using equity capital to grow, scale, and ultimately monetize the business. Companies report equity in the form of paid-in founder capital, investor capital, retained earnings, and converted debt capital, which lenders may own out of a conversion event. Smartly-employed equity capital leads to higher returns on that equity and happy shareholders. Equity is the currency that makes the world go around. MORE
These card networks were allowed to charge their members just enough to cover cost and provide working capital. Standard Setting Organizations (SSOs) are multisided platforms that help members reach agreements over a standard (For example, mobile carriers, handset makers, chip providers and many others have to agree on a common standard — like 4G — for what they do to work together.) MORE
As more people depended on him, he spent his working capital, and the business failed. When artisans have no understanding of their cash flows, they fail prey to spending a big percentage of their working capital, without meaning to, on non-business issues that usually cripple their operations. As more people depended on him, he spent his working capital, and the business failed. MORE
Women On Business Sponsors working capitalWe've Moved! Update your Reader Now. This feed has moved to: [link] If you haven't already done so, update your reader now with this changed subscription address to get your latest updates from us. link]. MORE
It can be a daunting process, destructing and rebuilding the policies you worked so hard to establish; but by listening to your intuition, opening yourself up to suggestions and following these 4 steps, you can come out on the other end to find things to be better than ever before. Strive to separate your ego from the task at hand: to set the most efficient, supportive and comfortable work climate as possible. MORE
As employment in the service and retail sectors has grown, and dynamic staffing policies have spread, more workers depend on income from commissions, tips, and hourly work with fluctuating schedules. She worked her way up to manage several locations of a quick-serve restaurant. When a business, rather than a household, faces such volatility, it responds by building up working capital. MORE
We know that when IT projects fail, it is usually not because the technology didn’t work (although this can sometimes be the case), but because the changes required at an organizational and employee level weren’t managed effectively. Sustaining changes are permanent changes to working practices, processes, or relationships that will cause the benefits to be delivered. The resultant network of needed changes led to a 36-month program of work. MORE
Finance business finance working capitalWe've Moved! Update your Reader Now. This feed has moved to: [link] If you haven't already done so, update your reader now with this changed subscription address to get your latest updates from us. link]. MORE
The third category is of the most interest because it concerns factors that the divested business’s (new) management and new owners do control: the quality of the business strategy and operational decisions after divestment, as well as the capital made available for follow-on investments. MORE
Capitalize on your Assets — Don’t assume your assets are money. 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. Develop Win-Win strategies to Benefit All– Harper needed to expand, but had limited capital and the banks were not rushing to lend to her (like today). Guest Post by Jane Plitt. MORE
Male entrepreneurs are the beneficiaries of the overwhelming majority of venture capital investments. Typical statements portraying men as growth-ambitious and in need of financing include: “ His major problem is to find enough financial capital for the investments to grow. ” This notion is also evident in statements about women’s lack of personal financial capital: “She doesn’t even have any savings to use for investments.” MORE
The goal of strategy is profitable growth, meaning economic value above the firm’s cost of capital. There are basically four ways to create that value: (1) invest in projects that earn more than their cost of capital; (2) increase profits from existing capital investments; (3) reduce the assets devoted to activities that earn less than their cost of capital; and (4) reduce the cost of capital itself. MORE
Working Capital Related Topics Women on Business
FEBRUARY 6, 2017
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Women on Business
FEBRUARY 7, 2017
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Women on Business
JULY 7, 2016
Women On Business Sponsors working capitalWe've Moved! Update your Reader Now. This feed has moved to: [link] If you haven't already done so, update your reader now with this changed subscription address to get your latest updates from us. link].
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. Every industry goes through a period where the revenues plummet and affect the amount of working capital available.
Strategy Driven
JANUARY 20, 2020
They checked out the market, discussed the business idea with friends and family and feels they can come up with enough capital to set themselves up for success. The simple fact is that if you cannot preserve your working capital, “You won’t make it”.
Strategy Driven
AUGUST 4, 2016
They checked out the market, discussed the business idea with friends and family and feels they can come up with enough capital to set themselves up for success. Unfortunately, often the amount of working capital needed to fund the project is simply not enough to account for all the expenses that arise with a new business. It seems that most businesses fail, not due to the validity of the idea, but rather that the project was under capitalized or underfunded from the start.
Lead Change Blog
MAY 10, 2019
Think about what’s talked about in the endless meetings that happen at work. Participants talk about stock price, earnings per share, revenue, gross margins, sales, operating cash flow, working capital, and the like. “Hmm, you’re one of those people,” sneered my neighbor. “A A do-gooder.”. That wasn’t the first—and it won’t be the last—time that someone, usually a man, had mocked my efforts to do good and do well. That used to upset me. Hurt my feelings, too.
|
Women on Business
AUGUST 24, 2011
Capitalize on your Assets — Don’t assume your assets are money. 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. Develop Win-Win strategies to Benefit All– Harper needed to expand, but had limited capital and the banks were not rushing to lend to her (like today). Guest Post by Jane Plitt.
leaderCommunicator
OCTOBER 15, 2013
It can be a daunting process, destructing and rebuilding the policies you worked so hard to establish; but by listening to your intuition, opening yourself up to suggestions and following these 4 steps, you can come out on the other end to find things to be better than ever before. Strive to separate your ego from the task at hand: to set the most efficient, supportive and comfortable work climate as possible.
Strategy Driven
JANUARY 25, 2018
Everyone who is a part of a business expects to work for a company who cares. There is an increasingly competitive marketplace for top talent out there and companies are desperate to recruit people who have charisma, brains and talent for the role that they work in. When you need cash fast for your business because you decide an impromptu meal out for your team is needed, you would do everything you can to get it purely to show your gratitude for the work that they put in.
HR Digest
APRIL 9, 2020
Any Equity grants based on merit work will be suspended too for the time being. billion capital raise. This included working capital for all regions and for the expansion of the Shanghai factory. “We Employees that have not been assigned any task for are not working from home have been furloughed off till May 4. Furloughed employees are generally given time off from work without pay for a specified period to tide over any emergency situation at a workplace.
N2Growth Blog
AUGUST 1, 2016
In 1973/4 I participated in an Overseas Fellowship at General Motors Institute (now Kettering University) in a work/study cooperative programme in Flint, Michigan, which was the birthplace of GM. It has the strongest balance sheet, is the most profitable mining business in the world (measured by underlying earnings and cash generation), has substantially reduced costs (by some $6 billion), working capital ($3.5 (as featured in mining.com). CEO Interview: Sam Walsh.
Harvard Business
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.). The supplier gives the buying firm a discount on the invoice amount at the buyer’s lower cost of capital.
|
Harvard Business
AUGUST 28, 2018
They had to work in sequence, meaning they had to streamline the operation first — before they could launch their new growth effort. The underlying trouble had been McDonald’s working from an inside-out perspective: what fit with its current infrastructure and operations.
Strategy Driven
MARCH 18, 2011
Further, they need to limit their focus to, at most, six capabilities, and make those capabilities work together as a mutually reinforcing system that perpetuates competitive advantage. Capabilities-driven strategy works in all contexts.
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. Over the course of 2010, the work did gain momentum, and we were joined by many of our readers from around the world who decided to make this resolution their own.
Harvard Business
APRIL 12, 2017
As employment in the service and retail sectors has grown, and dynamic staffing policies have spread, more workers depend on income from commissions, tips, and hourly work with fluctuating schedules. She worked her way up to manage several locations of a quick-serve restaurant. When a business, rather than a household, faces such volatility, it responds by building up working capital.
Harvard Business
SEPTEMBER 4, 2017
For those companies with the skill to pull it off, it worked. Construction equipment and disk-drive manufacturing required heavy machinery, distribution facilities, and immense amounts of working capital. Their creditors priced capital for the new efforts along with the core. Every winter, my colleagues and I invite CEOs of some of the world’s largest businesses to join our students at Stanford University.
Harvard Business
AUGUST 30, 2016
Better predictive ability from rich customer data has another important benefit: Amazon does not keep most of its products in inventory for very long, significantly reducing its working capital requirement. Companies have invested millions of dollars in big data and analytics, but recent reports suggest most have yet to see a payoff on these investments.
Harvard Business
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. In our book Strategy That Works we articulate what those capabilities can look like, how to blueprint and build them, and how to bring them to scale. Start from your goal and work backward, articulating the steps you’ll need to take to get from the capabilities you have to the capabilities you need.
Harvard Business
SEPTEMBER 5, 2016
The concept is fairly straightforward: The parties define the result up front, agree on a baseline, work out how confident the organization is in delivering the result, and then specify the expectation and payment in the contract. When PbR Doesn’t Work. Finally, some companies have struggled to finance their activities without payment while they work on delivering the results, limiting their ability to innovate too. Making PbR Work. Samuel Castro.
Harvard Business
APRIL 4, 2016
The old approach to Russia won’t work. This worked, because both crises were short-lived (lasting approximately 1-1.5 For example, one consumer goods company we work with recently held a full-day strategy workshop with its local Russian team and partners to revamp their assumptions about the Russian customer, understand how demand and preferences are evolving, and figure out what this means for their strategy in terms of pricing, product portfolio, and channel.
Harvard Business Review
APRIL 9, 2015
Income statements almost always include an allowance for depreciation of capital assets. That statement records cash generated by a company’s operations and cash spent on those operations; cash spent on capital assets (and cash generated by the sale of capital assets); and cash received from, or paid to, lenders and shareholders. Your company is ready to make a big purchase — a fleet of cars, a piece of manufacturing equipment, a new computer system.
Harvard Business Review
SEPTEMBER 7, 2012
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. Second, get a solid grasp of your working capital needs--how much cash does your firm require to conduct day-to-day business?
Harvard Business
APRIL 5, 2017
For instance, McKinsey considered a smaller ratio of capital expenditure to depreciation to indicate short-term thinking, because it’s assumed that short-term companies will invest less, and less consistently, than other companies. Repaying such profits to shareholders through share repurchases is better than misinvesting that cash to diversify into unrelated businesses in which management has no expertise or overinvesting in projects that may not return cost of capital.
Harvard Business
JUNE 3, 2016
We know that when IT projects fail, it is usually not because the technology didn’t work (although this can sometimes be the case), but because the changes required at an organizational and employee level weren’t managed effectively. Sustaining changes are permanent changes to working practices, processes, or relationships that will cause the benefits to be delivered. The resultant network of needed changes led to a 36-month program of work.
Harvard Business
MARCH 15, 2018
Male entrepreneurs are the beneficiaries of the overwhelming majority of venture capital investments. Typical statements portraying men as growth-ambitious and in need of financing include: “ His major problem is to find enough financial capital for the investments to grow. ” This notion is also evident in statements about women’s lack of personal financial capital: “She doesn’t even have any savings to use for investments.”
Harvard Business Review
NOVEMBER 23, 2010
As more people depended on him, he spent his working capital, and the business failed. When artisans have no understanding of their cash flows, they fail prey to spending a big percentage of their working capital, without meaning to, on non-business issues that usually cripple their operations. The boy was 11 years old when his father took him to live with a kinsman, a businessman with many shops in Lagos, Nigeria.
Harvard Business
FEBRUARY 7, 2017
Among the firms we identified as focused on the long term, average revenue and earnings growth were 47% and 36% higher, respectively, by 2014, and market capitalization grew faster as well. and historic lows in new capital investment. Ambitious work has even attempted to quantify economic growth foregone due to cuts in R&D expenditure driven by short-termism, putting it in the range of about 0.1% public market capitalization over this period.
Harvard Business Review
NOVEMBER 23, 2010
As more people depended on him, he spent his working capital, and the business failed. When artisans have no understanding of their cash flows, they fail prey to spending a big percentage of their working capital, without meaning to, on non-business issues that usually cripple their operations. As more people depended on him, he spent his working capital, and the business failed.
Harvard Business Review
DECEMBER 7, 2010
Capital investment and operating expenses are high because cooking equipment and raw materials must be the best: wines devour working capital, the kitchen and serving staff must be paid handsomely, and crystal glasses and crockery will break. Oldani has created a Michelin restaurant for the masses by working on two fronts.
Harvard Business Review
MAY 8, 2012
Due to huge capital requirements, these investments could exert considerable pressure on the working capital of the carrier company. Bharti's innovative business model converted fixed costs in capital expenditure to a variable cost based on usage of capacity. telecom carriers face daunting challenges from device makers, content providers, social networks, and an array of disruptive technologies. But the solutions may not be housed on their own soil.
Harvard Business Review
SEPTEMBER 12, 2011
The principal recommendations are: Retail banking should be ring-fenced inside separate subsidiaries; All banks (retail or otherwise) should have an equity or other loss-absorbing capital capacity of 17-20% of their assets; Depositors would rank higher than other creditors in the event of insolvency; Make sure that a sale of 600 odd branches of Lloyd's bank produces a viable new U.K.
Harvard Business Review
OCTOBER 28, 2011
Such farmers will be able to invest in mechanized methods of production, and to generate working capital to use better seeds and other inputs Trouble is, the consolidation of land holdings could take a generation, or more, to happen since many families will be reluctant to trade away their land use rights. For Beijing, tackling China's high inflation rate — 6.1% in September 2011, down slightly from the three-year peak of 6.5%
Harvard Business Review
JANUARY 22, 2015
This allows you to better manage operating and capital expenses. It can also improve working capital. And brands that have earned high degrees of trust with great loyalty and passion—whether in a sexy category or not—are in the best position to capitalize on it. Netflix just announced its best quarter ever. Its subscriber count went up 13 million worldwide, and investors are enthused. Its U.S. business ended 2014 with 39.1
Harvard Business Review
SEPTEMBER 8, 2014
The goal of strategy is profitable growth, meaning economic value above the firm’s cost of capital. There are basically four ways to create that value: (1) invest in projects that earn more than their cost of capital; (2) increase profits from existing capital investments; (3) reduce the assets devoted to activities that earn less than their cost of capital; and (4) reduce the cost of capital itself.
Harvard Business Review
MARCH 28, 2016
These card networks were allowed to charge their members just enough to cover cost and provide working capital. Standard Setting Organizations (SSOs) are multisided platforms that help members reach agreements over a standard (For example, mobile carriers, handset makers, chip providers and many others have to agree on a common standard — like 4G — for what they do to work together.)
Harvard Business Review
JANUARY 17, 2013
They have virtually no access to capital markets and little flexibility to experiment at various stages of growth. There are $700 billion of foundation assets, and 10 million people working for non-profits. Yet there are massive inefficiencies in capital allocation. Compare that to the world of venture capital. We believe we are on the threshold of a major change not unlike the early days of the modern venture capital industry. Social enterprise Venture capita
Harvard Business Review
JANUARY 10, 2013
For some, it refers to venture capital-backed startups and their kin; for others, to any small business. At a new venture's outset, its founders control only their own human, social, and financial capital. 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. Entrepreneurship Venture capital
Harvard Business Review
JULY 24, 2013
No matter what industry it''s in or what product it''s selling, the absolute best way for a startup to obtain the capital it needs to grow is to generate revenue and reinvest profits. Made popular by KickStarter, crowdfunding primarily works on a ''donation'' model, whereby the ''crowd'' of investors funds projects, including causes like liberating Egypt. Finally, working capital financing is one of the key requirements of all small startups. Capitalism 2.0
Harvard Business Review
OCTOBER 24, 2011
Anyone familiar with Professor Christensen's work will quickly recognize the same causal mechanism at the heart of the Innovator's Dilemma: the pursuit of profit. It had 90 days working capital on hand when he took over — in other words, Apple was only three months away from bankruptcy. An executive who worked at both Apple and Microsoft described the differences this way: "Microsoft tries to find pockets of unrealized revenue and then figures out what to make.
Harvard Business Review
JULY 10, 2013
You may have another kind of track record, such as working successfully at a large company. It has been built without outside capital, entirely. He grew the business organically, with revenue and profits, not outside capital. No venture capital. And for some, terribly exciting when hard work yields customers, revenues, and profits. In the case of Cableorganizer, banks would be delighted to finance their inventory and working capital to help accelerate growth.
Harvard Business Review
FEBRUARY 24, 2015
The third category is of the most interest because it concerns factors that the divested business’s (new) management and new owners do control: the quality of the business strategy and operational decisions after divestment, as well as the capital made available for follow-on investments.
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