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. Why can't more companies do the same?

Quality 14

Quality Working Capital Price Open-book 14

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

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 Industry System Strategy 51

Harvard Business Review

SEPTEMBER 5, 2016

And providers want the flexibility to deliver outcomes in the best, most innovative, and most efficient way possible without being micromanaged by the customer. Finally, some companies have struggled to finance their activities without payment while they work on delivering the results, limiting their ability to innovate too.

Incentives 8

Incentives Health Care Education Insurance 8

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. For example, as a leader, you can worry prudently and diligently all you want about disruptive innovations in your industry, but you need a sales channel aligned with strategy to do something about it.

Debt to Equity Ratio 11

Debt to Equity Ratio Cost of Capital Strategy Incentives 11

Harvard Business Review

APRIL 12, 2017

When a business, rather than a household, faces such volatility, it responds by building up working capital. Financial services providers have the opportunity to innovate, shifting their product set to better enable households to create stability amid volatility. It doesn’t have to be that way.

Health Care 14

Health Care Insurance Video Transportation 14

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.

Outsourcing 12

Outsourcing Wireless Telecommunications Core Competence 12

Harvard Business Review

JANUARY 22, 2015

It can also improve working capital. Digital payment innovations that tap into consumers certain about their latent demand are at the heart of successful digital business models. Consider the Starbucks loyalty card, which consumers buy pre-loaded with cash. In early 2014, Starbucks said consumers loaded $1.4

Business Model 8

Business Model Loyalty Brand Price 8

Harvard Business Review

MAY 27, 2015

We see ourselves as risk-takers and innovators. Over the last six years the federal government funded more than 50 new regional innovation “clusters,” and across America new accelerators and entrepreneurship boot camps are proliferating. In fact, we know a lot about what works from observing this recent experimentation.

Entrepreneur 8

Entrepreneur Policies Banking Innovation 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. This model is an innovative way for donors to achieve greater impact.

Banking 8

Banking Finance Due Diligence Short-term 8

Harvard Business Review

AUGUST 28, 2018

Even when companies do want to expand their product offerings, internal preparation and sequencing can matter more than the innovation itself. Meanwhile the merchant group developed Working Capital, an in-house experiment in small-business lending that PayPal had also started in 2013.

Products 8

Products Productivity Decentralization Resistance 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). Become a remarkable capability innovator, designing and developing your own practices that give you prowess no one else matches.

IAM 11

IAM Products Productivity Company 11

Harvard Business Review

JANUARY 10, 2013

The opportunity may entail: 1) pioneering a truly innovative product; 2) devising a new business model; 3) creating a better or cheaper version of an existing product; or 4) targeting an existing product to new sets of customers. For example, a new venture might employ a new business model for an innovative product.

Definition 10

Definition Entrepreneur Business Model Tactics 10

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.

Price 9

Price Retail Business Model Christensen 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

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. Corporate culture.

EPS 9

EPS Metrics Depreciation Short-term 9

Harvard Business Review

MARCH 21, 2011

But whatever the investment, and whether I'm investing personally or professionally for the Disruptive Innovation Fund, my basic parameters are now clear. And because my husband and I were the providers of working capital, I had the luxury of being cavalier. Lesson 2: Establish rules of engagement. No, no, no , I cried.

Due Diligence 15

Due Diligence Magazine SWOT Christensen 15

Harvard Business Review

FEBRUARY 17, 2012

As product is sold, some of the initial working capital that SHE puts up is paid back, with the entrepreneurs eventually owning their local franchises. In turn, SHE reinvests its profits in new geographies or other disruptive enterprises. I've found," says Scharpf, "that the common language is the one of emotion.".

Franchising 15

Franchising CEO GDP Entrepreneur 15

Harvard Business Review

JANUARY 17, 2013

Donations and grants don't allow them to innovate and grow. 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. Soon venture capital became a core part of many economies and those bold moves changed everything.

Venture Capitalist 12

Venture Capitalist Entrepreneur Bond Finance 12

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