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 Banking Bond Diversity 387

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

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 26

Supply Chain Crisis Marketing Working Capital 26

Strategy Driven

DECEMBER 14, 2020

However, if at all it does not work out and things don’t fall in place, keep an exit strategy ready to let things off and manage what has been lost. Your finances: Nothing works without investment. You need to manage your finances and be aware of all that you will have to invest in shortly.

Exit Strategy 70

Exit Strategy Finance Short-term Licensing 70

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

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. Like any small business, they need working capital to balance out the peaks and troughs of their business cycle.

Banking 8

Banking Finance Due Diligence Short-term 8

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. This programme which moved me through all major departments (Engineering, Finance, Supply, Vehicle Assembly, IS&T etc.)

Gordon 150

Gordon Restructuring Leadership 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 Transportation Finance 11

Harvard Business Review

APRIL 9, 2015

Sure, you may know this already, but people who haven’t studied finance often find this statement confusing. Finance & Accounting Tool. Working capital requirements are typically built into an Excel model you’ll use to calculate ROI , so you don’t need to worry about them. Excerpted from. Joe Knight.

ROI 8

ROI Analysis Rate of Return Net Present Value 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 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 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 Banking Telecommunications 15

Harvard Business Review

JULY 10, 2013

The initial cash needs to come from revenues, not financing. No venture capital. Not even any kind of bank financing. And for some, terribly exciting when hard work yields customers, revenues, and profits. In this equation, outside financing is Optional. That is the gap that Capitalism 2.0 Read their story.

Incubator 8

Incubator Finance Entrepreneur Case Study 8

Harvard Business Review

MARCH 15, 2018

Nonetheless, statistics show that women-owned businesses, which account for one-third of Swedish businesses, are not granted the corresponding proportion of government venture financing; in fact, women-owned businesses receive only 7%. ” Assumption 2: Women are reluctant to grow their businesses, whereas men are willing to do so.

Venture Capitalist 11

Venture Capitalist Debt to Equity Ratio Real Estate Entrepreneur 11

Harvard Business Review

SEPTEMBER 4, 2017

Construction equipment and disk-drive manufacturing required heavy machinery, distribution facilities, and immense amounts of working capital. Asset-light businesses are not financed with debt. They’re financed with equity—in other words, a stake in the company. They are not asset-heavy. They are asset-light.

Christensen 8

Christensen Finance Innovation B2B 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 11

Debt to Equity Ratio Cost of Capital Strategy Incentives 11

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 9

Incubator Finance Entrepreneur Industry 9

Harvard Business Review

JANUARY 9, 2013

They need new executive talent, infusions of capital, and systems capable of supporting an expanding organization. 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.

Finance 9

Finance Franchising Business Model Analysis 9

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 10

Banking Retail Competitive Advantage Report 10

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

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

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 Business Model Tactics 10

Harvard Business Review

FEBRUARY 24, 2015

The outsiders provide new blood in support functions such as finance, legal, or administration. In parallel, it reduced its fixed costs by restructuring its industrial footprint and overhead structure; increasing sales, marketing, and R&D expenditures in targeted areas; and dramatically reducing working capital.

Chemicals 8

Chemicals How To Kahneman Reputation 8

Harvard Business Review

DECEMBER 15, 2015

Financing needs are driven by the cash on hand and the working capital required to conduct and grow the business. The Deal Profile also specified payment terms with pricing. This is an important and often overlooked aspect in many strategy discussions. Any deal affects a company’s economics and valuation.

Strategy 8

Strategy Team Discount ROIC 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

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

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

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

To help provide a better factual base for this debate, MGI, working with McKinsey colleagues from our Strategy & Corporate Finance practice as well as the team at FCLT Global, began last fall to devise a way to systemically measure short-termism and long-termism at the company level.

Long-term 8

Long-term EPS Short-term Management 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