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

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?

KPI 248

KPI Long-term Learning-by-Doing Short-term 248

Strategy Driven

MARCH 15, 2021

Manages working capital – These loans come as the best solution to fulfill your working capital requirements and further grow your enterprise. It is a type of finance option that you can opt for if you are thinking of expanding your enterprise. These are also called commercial loans. Read further to know!

Short-term 119

Short-term Credit Scoring Long-term Finance 119

Strategy Driven

MAY 9, 2024

What Is Operating Capital? Sometimes called “working capital,” operating capital is the sum of a business’s current assets minus its current liabilities. Working capital is necessary to fund a company’s operations and pay for expenses as they arise.

Operations 75

Operations Working Capital Management Finance 75

Strategy Driven

AUGUST 12, 2024

Operational Costs and Working Capital Running a business involves various day-to-day expenses, such as employee wages, utilities, and inventory restocking. It’s important to have sufficient working capital to cover these expenses, especially in the early stages before the business becomes profitable and able to sustain itself.

Franchising 97

Franchising Cost Budgeting Advertising 97

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. 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.

Due Diligence 65

Due Diligence Real Estate Succession Working Capital 65

Strategy Driven

MARCH 5, 2024

Key benefits of asset-based lending include: Higher Borrowing Limits : Asset-based lending typically offers higher borrowing limits than traditional loans, allowing businesses to access more capital to support their growth and expansion initiatives.

Finance 101

Finance Insurance Working Capital Transportation 101

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 Morale 150

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

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.

Due Diligence 50

Due Diligence Succession Real Estate Working Capital 50

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 Operations 98

Strategy Driven

AUGUST 29, 2024

Organizations can free up working capital and enhance liquidity by improving supplier payment terms and utilizing financing options such as early payment discounts or reverse factoring.

Efficiency 94

Efficiency Supply Chain Organization Finance 94

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 83

Directory Handbook Policies Tips 83

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).

Gordon 150

Gordon Restructuring Leadership CEO 150

Innovation Excellence

JULY 16, 2020

On the other hand, the caveat is that Online will continue to operate with minimum working capital & continental reach, to maximize ROI. Brick & Mortar operations will slim down, reducing the latitude for Marketing experimentation in B&M vs. today.

Supply Chain 55

Supply Chain ROI Working Capital Media 55

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 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 29

Real Estate Crisis Banking Maturity 29

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

Harvard Business Review

OCTOBER 6, 2023

To improve this working relationship, focus on aligning the teams, improving the quality of forecasts, map forecasts to the supply chain, and optimize for profitability rather than predictability. Following these steps can reduce a company’s working capital needs and increase earnings and cash flow.

Supply Chain 28

Supply Chain Crisis Marketing Working Capital 28

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

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 14

Supply Chain Cost of Capital Transportation Finance 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 Banking Working Capital Finance 15

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 Price Open-book 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

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.

Metrics 9

Metrics Working Capital Restructuring Banking 9

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 14

Debt to Equity Ratio Cost of Capital Strategy Incentives 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. 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 13

Outsourcing Wireless Telecommunications Core Competence 13

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 15

Venture Capitalist Entrepreneur Bond Finance 15

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 16

Innovation Christensen CFO Productivity 16

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 11

Banking Retail Competitive Advantage Report 11

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.

Definition 14

Definition Entrepreneur Business Model Tactics 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 15

Health Care Insurance Video Transportation 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 Analysis Rate of Return Net Present Value 8

Harvard Business Review

MARCH 21, 2011

And because my husband and I were the providers of working capital, I had the luxury of being cavalier. No, no, no , I cried. I pointed to the importance of discovery-driven planning. We'll figure it out," I would tell her.

Due Diligence 15

Due Diligence Magazine SWOT Hammer 15

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.

IAM 14

IAM Productivity Products Company 14

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 11

Incubator Finance Entrepreneur Industry 11

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.

Franchising 17

Franchising CEO GDP Entrepreneur 17