Harvard Business Review

OCTOBER 6, 2023

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.

Supply Chain 25

Supply Chain Crisis Marketing Working Capital 25

Harvard Business Review

JULY 23, 2024

An analysis from The Conference Board suggests that in the next two years, more than $1 trillion in CRE loans will come due, and an increasing number of banks, mostly regional and community banks, risk having insufficient capital cushions.

Real Estate 26

Real Estate Crisis Banking Maturity 26

Harvard Business Review

JANUARY 22, 2013

Financial markets are not working for charities and social enterprises today. If financing is offered by a bank, the terms are often too onerous. As a result, charities and social enterprises do not have the cushion of external financing to manage their various capital requirements.

Banking 8

Banking Finance Due Diligence Short-term 8

Harvard Business Review

NOVEMBER 23, 2010

As more people depended on him, he spent his working capital, and the business failed. When I founded the nonprofit African Institution of Technology , I initially focused on helping African entrepreneurs or artisans, especially those with only primary education, develop new skills and market opportunities.

Books 15

Books Banking Working Capital Finance 15

Harvard Business Review

NOVEMBER 23, 2010

As more people depended on him, he spent his working capital, and the business failed. When I founded the nonprofit African Institution of Technology , I initially focused on helping African entrepreneurs or artisans, especially those with only primary education, develop new skills and market opportunities.

Books 15

Books Guidelines Banking Telecommunications 15

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 11

Supply Chain Cost of Capital Transportation Finance 11

Harvard Business Review

MARCH 21, 2011

To paraphrase from "The Music Man," I am a sadder but definitely a wiser girl after this first encounter with venture financing, as this experience has become a well of lessons from which I draw daily in my personal and professional life. And because my husband and I were the providers of working capital, I had the luxury of being cavalier.

Due Diligence 15

Due Diligence Magazine SWOT Christensen 15

Harvard Business Review

JULY 10, 2013

Unless you are willing to bootstrap yourself to some degree of validation of your concept, and can convince investors that there is real demand for what you offer, and a really large market, no one will write a check. Let''s suppose your idea is a good, viable business idea, but not a billion dollar market opportunity. And play he did.

Incubator 8

Incubator Finance Entrepreneur Case Study 8

Harvard Business Review

SEPTEMBER 8, 2014

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.

Debt to Equity Ratio 10

Debt to Equity Ratio Cost of Capital Strategy Incentives 10

Harvard Business Review

JULY 24, 2013

And of course, peer-to-peer lending has been around for a while, and some of it has been trickling over to startup financing. For the most part, the impact of crowdfunding on startup financing is still minimal. Finally, working capital financing is one of the key requirements of all small startups.

Incubator 8

Incubator Finance Entrepreneur Industry 8

Harvard Business Review

JANUARY 9, 2013

For-profit companies in the same situation can turn to a robust venture capital community that is focused on providing the management, financing and strategy that innovative companies need to scale up quickly. Yet those resources don't exist in the social enterprise market—even though the need is essentially the same.

Finance 9

Finance Franchising Business Model Analysis 9

Harvard Business Review

SEPTEMBER 4, 2017

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.

Christensen 8

Christensen Finance Innovation B2B 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. Financing risk relates to whether external capital will be available on reasonable terms.

Definition 10

Definition Entrepreneur Tactics Business Model 10

Harvard Business Review

DECEMBER 15, 2015

When formulating a strategy, markets and segments are important categories to consider. But a market never buys anything. And, since they were spread out across a geographically diverse area, they represented a large enough market to support renewed profitable growth. Only customers buy. It did this in a few ways.

Strategy 8

Strategy Team Discount ROIC 8

Harvard Business Review

FEBRUARY 24, 2015

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.

Chemicals 8

Chemicals How To Kahneman Reputation 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 Education Insurance 8

Harvard Business Review

APRIL 20, 2015

But in past weeks, it seems that the movie in Asia has been on fast-forward around global development and financing. 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

Banking 8

Banking Development Policies Globalization 8

Harvard Business Review

JUNE 22, 2015

Longer supply chains also increase inventory levels and carrying costs related to financing and warehousing. 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. These are just the first-order costs of congestion.

Supply Chain 8

Supply Chain Crisis Transportation Tactics 8

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. There are two problems with these arguments.

Entrepreneur 8

Entrepreneur Policies Banking Innovation 8

Harvard Business Review

JANUARY 17, 2013

Social entrepreneurs are stultified by traditional forms of financing. They have virtually no access to capital markets and little flexibility to experiment at various stages of growth. Compare that to the world of venture capital. Donations and grants don't allow them to innovate and grow.

Venture Capitalist 12

Venture Capitalist Entrepreneur Bond Finance 12

Harvard Business Review

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. public market capitalization over this period. The differences were dramatic.

Long-term 8

Long-term EPS Short-term Sample 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