A successful business plan is built on accurate data, but few numbers are so important—and so difficult to get right—as projected revenue. Growing revenue powers income growth which is what fuels future business expansion.
Complicating things further, “revenue” is a word that represents many moving parts. How do you keep track of them all? How do you make your projection as accurate as it can be?
In their eagerness to get to market, companies may be rash in selecting financing and take the first solution they come across. A sound financing strategy is one of the most important pillars of corporate growth, and – done well – it can benefit your company long into the future.
In Parts 1 & 2, we wrote about capital planning and using debt to finance your business. Here we explain equity financing and when you should consider it.
Companies seeking capital need to plan and shop wisely. Not doing your homework or making the wrong choice may leave you empty handed, burdened with unnecessary costs or shackled with the wrong capital structure for years to come.
In Part 1 of this series on Treasury, Capital Planning, we wrote about capital planning for your business. The planning process will identify how much outside capital you expect to need in the coming years. The financial position, risk profile and objectives of the company will determine if that capital is in the form of debt or equity. This week we explain debt financing options and when you should consider them. Debt financing allows you to maintain ownership and control of your business while being less expensive than equity. In many countries interest payments on debt are deductible for tax purposes. 1
CFOs and Business Leaders often focus on the incredible things AI (Artificial Intelligence) and Analytics can do—transforming decision-making, optimizing operations, and uncovering hidden insights. These advancements hold tremendous promise for finance and business leaders looking to enhance business performance including improved revenues, reduced costs, and mitigated risks. However, during a recent conversation with a group of CFOs, a senior CFO posed a critical question to me: WHERE CAN AI GO WRONG IN THE CFO FUNCTION? This inquiry sparked a discussion that led me to identify three key areas where Analytics (including AI) can present significant challenges for finance leaders in an organization.
Capital is the lifeblood of any business. Paying for talent, equipment, marketing, inventory and other critical activities all require cash. Having a plan for securing capital well before the need arises is a key responsibility of a CFO. Without a funding strategy you may miss out on fleeting opportunities. Worse yet, even profitable, growing businesses fail because they run out of cash.
