Situation: “Our Company shows profits every month and yet we continue to be short of cash, how can that be? Suggestion: To most non-financial individuals, the terms profits and cash are used interchangeably, which is incorrect. The phrase “cash is king” is very true. Let’s help to find where cash is likely hiding. 1. Accounts…
Category Archives: Financial
“Measure What?”
“What gets measured gets managed”. A quote attributed to Peter Drucker. Managing a business requires a broad set of skills and attention to all parts of the business. Many CEO’s are good at making or selling “things” (goods and service offerings) but some don’t spend enough time monitoring the overall health of their business. Keeping…
Where are the VC’s?
A question I hear often is “how do I find a VC to invest in my company?” First, there are many different institutional equity investors, both private and public. Venture Capital companies are best known by start ups and early stage companies, because VC’s are most likely to be found investing in these riskier ventures. …
The Importance of Cash Flows to Your Enterprise
It should be obvious, but unfortunately, it is not for many organizations- “Cash is King”. Especially in a downward business cycle or extended cycles called “recessions”. Cash levels will determine if your organization will operate offensively or defensively. Just because you have profits does not mean you have the cash needed for your operating capital…
Using Debt to Finance the Organization
Organizations can finance their missions in several ways, but the two most common methods are equity and debt. Equity means you sell a portion of the organization in the form of stock or units of ownership, and the buyer now owns part of your organization. The other way to finance your organization is by Debt. …
