N2Growth Blog

DECEMBER 6, 2022

Alex Lhéritier , Global Head of Working Capital Solutions at Kyriba , says: “Ensuring a two-way transparency and trust can prove essential to a leader in a constantly changing environment. Shared values between colleagues, clients, or customers create long-lasting professional relationships based on trust and integrity.

Execution 387

Execution Bond Banking Diversity 387

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.

Succession 50

Succession Due Diligence Entrepreneur Real Estate 50

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. Those numbers can be off-the-charts good, yet some employees are miserable. Why are they miserable?

Learning-by-Doing 248

Learning-by-Doing Long-term Succession KPI 248

Strategy Driven

SEPTEMBER 24, 2021

Spending too much on high-end frames can overload your inventory and deplete your working capital. In choosing frames to offer, you should consider your patient demographics and the location of your practice.

Directory 85

Directory Handbook Policies Tips 85

HR Digest

APRIL 9, 2020

billion capital raise. This included working capital for all regions and for the expansion of the Shanghai factory. “We Its cash position at the end of the fourth quarter was $6.3 billion before its recent $2.3 After the fourth-quarter announcement, Tesla had a credit line available in the vicinity of $3 billion.

Crisis 98

Crisis Human Resources Working Capital Uncertainty 98

N2Growth Blog

SEPTEMBER 2, 2016

Some of the uses associated with equity as an incentive alignment tool and a substitute for cash include: use of equity as a partial substitute for cash when working capital constrained. As such, tools available to the owner to align interests in the corporate setting generally revolve around the equity in the business.

Power 150

Power Incentives Short-term Motivation 150

Strategy Driven

DECEMBER 14, 2020

Watch out for expenses: A working capital and occasion expenses need to be considered before you hop on a new business plan. If you are investing, make sure you know where you are investing and how you will earn it back. For a smooth financial journey, consider a good plan in terms of financial management.

Exit Strategy 71

Exit Strategy Finance Short-term Strategy 71

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. Be distinctive and come up with solutions that meet your needs and your principles.

Succession 226

Succession Franchising Core Competence Commitment 226

leaderCommunicator

OCTOBER 15, 2013

About the author: Kelly Gregorio writes about leadership trends and tips while working at Advantage Capital Funds , a company that provides businesses working capital. How do you handle policy changes? You can connect with her through the comments section of her daily business blog here.

Policies 124

Policies Consensus Follow-up Brainstorming 124

Strategy Driven

JANUARY 25, 2018

People lead busy lives and if you give them a chance to be able to attend family events and doctor’s appointments around their work, you are going to gain a lot of respect from people. Give your staff a reason to want to work for you and you’ll benefit from their loyalty. Offering incentives has to be a big part of your budget.

Incentives 50

Incentives Creativity Charisma Travel 50

N2Growth Blog

AUGUST 1, 2016

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 billion in the last 5 years).

Leadership 150

Leadership Gordon Restructuring CEO 150

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 buying firm benefits through longer payables, which positively impact its working capital. FinTechs typically act like brokers.

Supply Chain 11

Supply Chain Cost of Capital Working Capital Finance 11

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.

Working Capital 8

Working Capital Metrics Restructuring Bottom-up 8

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.

Books 15

Books Working Capital Entrepreneur Banking 15

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 Rate of Return Analysis Working Capital 8

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.

Books 15

Books Guidelines Emotional Intelligence Working Capital 15

Strategy Driven

MARCH 18, 2011

Walmart wrings maximum efficiency from its supply chain by integrating four capabilities – aggressive vendor management, expert point-of-sale data analytics, superior logistics, and rigorous working-capital management – that together deliver ‘everyday low prices’ to consumers.

Resources 51

Resources Strategy System Company 51

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. Operating such restaurants is expensive.

Quality 15

Quality Working Capital Open-book Price 15

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. For example, AT&T had to spend almost $18 billion in a single year to upgrade its wireless networks to handle the onslaught of new traffic.

Outsourcing 14

Outsourcing Wireless Core Competence Telecommunications 14

Harvard Business Review

APRIL 12, 2017

When a business, rather than a household, faces such volatility, it responds by building up working capital. It doesn’t have to be that way. Volatile income and spending needs are not problems in themselves. Many people can do the equivalent in household terms: They plan, save, rely on family wealth, and use credit and insurance.

Health Care 14

Health Care Insurance Video Policies 14

Harvard Business Review

SEPTEMBER 12, 2011

Supermarket chains, with working capital, IT capabilities, and outlet networks are potentially far safer and more reliable retail financial service providers than any bank. The report is entirely backward-looking and seems to take no account of the really interesting trends and developments in financial services.

Banking 13

Banking Retail Competitive Advantage Working Capital 13

Harvard Business Review

SEPTEMBER 8, 2014

Financing needs are in large part driven by the cash on hand and the working capital required to conduct and grow the business. (Call the investment bankers for advice, since they’ve shown how smart they are in managing their risks and leverage.) But consider the basics.

Debt to Equity Ratio 10

Debt to Equity Ratio Strategy Cost of Capital Incentives 10

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 Learning-by-Doing 54

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.

Price 12

Price Sharpe Banking Working Capital 12

Harvard Business Review

JANUARY 22, 2015

This allows you to better manage operating and capital expenses. It can also improve working capital. If you can better predict consumer demand with more certainty, whether via subscription business models like Netflix or Amazon Prime, you can improve forecasting. In early 2014, Starbucks said consumers loaded $1.4

Business Model 8

Business Model Loyalty Working Capital Brand 8

Harvard Business Review

AUGUST 28, 2018

Meanwhile the merchant group developed Working Capital, an in-house experiment in small-business lending that PayPal had also started in 2013. Now the company was able to build it up with the ease of use intrinsic to PayPal’s strong brand. The consumer group also acquired Xoom, a site that facilitates international transfers.

Productivity 8

Productivity Products Resistance Decentralization 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 starting in the early 2000s, the advantages of scale were mostly eliminated, in large part because of globalization, deregulation, and the rise of digital technology.

Productivity 11

Productivity Products IAM Company 11

Harvard Business Review

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. In fact, its cash conversion cycle is 14 days, much smaller than the nearly 30 days for most retailers.

Advertising 8

Advertising Retail Content Working Capital 8

Harvard Business Review

JULY 24, 2013

Finally, working capital financing is one of the key requirements of all small startups. One caveat: These deals are difficult to assess, and unless savvy experts screen and rate them, the likelihood of success will be low, and we will have a lot of angry investors. Too much of that will kill the industry altogether.

Incubator 8

Incubator Finance Entrepreneur Working Capital 8

Harvard Business Review

SEPTEMBER 4, 2017

Construction equipment and disk-drive manufacturing required heavy machinery, distribution facilities, and immense amounts of working capital. When Christensen conducted the research for The Innovator’s Dilemma , he looked at industries that were asset-heavy. They are not asset-heavy. They are asset-light.

Christensen 9

Christensen Innovation Finance CEO 9

Harvard Business Review

JANUARY 17, 2013

Interviews conducted in 2000 by the Social Investment Task Force in the United Kingdom , revealed what most nonprofit leaders already know: Almost all social sector organizations are small and perennially underfunded, with barely three months' worth of working capital at their disposal. Compare that to the world of venture capital.

Venture Capitalist 12

Venture Capitalist Entrepreneur Bond Finance 12

Harvard Business Review

JULY 10, 2013

In the case of Cableorganizer, banks would be delighted to finance their inventory and working capital to help accelerate growth. So there is really no capital gap if you have a proven business model and execution capacity. The capital gap is during the early stages, when the risk is really high.

Incubator 8

Incubator Entrepreneur Finance Case Study 8

Harvard Business Review

SEPTEMBER 5, 2016

Finally, some companies have struggled to finance their activities without payment while they work on delivering the results, limiting their ability to innovate too. As a result, some governments and private foundations have introduced social impact bonds to provide the necessary working capital. Making PbR Work.

Incentives 8

Incentives Health Care Micromanagement Short-term 8

Harvard Business Review

OCTOBER 24, 2011

It had 90 days working capital on hand when he took over — in other words, Apple was only three months away from bankruptcy. Which is exactly what had happened to Apple. A string of professional managers had led the company straight off the edge of that cliff. The fall had almost killed the company.

Innovation 15

Innovation Christensen Learning-by-Doing CFO 15

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.

Finance 8

Finance Banking Short-term Due Diligence 8

Harvard Business Review

MARCH 28, 2016

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

Succession 8

Succession IPO Consensus Technology 8

Harvard Business Review

APRIL 5, 2017

However, higher accruals can reflect either innocuous aspects of certain business models, such as in the construction industry, where the time lag between earning income and realizing cash is long, or that growing firms retain higher working capital to meet greater current and future customer demand.

Metrics 9

Metrics EPS McKinsey Short-term 9