WRAL’s Local Tech Wire: Entrepreneurs’ Money Search
“Can you afford this server?” “How long does your cash last?” “When are you cash flow positive?” Every get these questions? As a business owner, if you cannot answer these questions, and many others, you may need some help with financial management.
Cash is king in a start-up company. Managing revenue growth and earnings is essential to a public company. Maintaining profit and cash flow is the bread and butter for an emerging company. No matter what stage you are, achieving value for the shareholders is always the name of the game. In order to be successful at any of these objectives, you have to start with a good plan for financial management.
Situation: The CEO of a late stage software implementation professional services company with over $10M in revenue and 65 employees was struggling with stagnating revenue growth. Sales growth had flattened over the last three quarters as new account acquisition had softened, some current customers were abandoning the company and repeat business had slowed. The CEO wanted a management consultant to analyze his current strategy and assess whether or not it is on target. In addition, he wanted to get a second opinion on the effectiveness of the existing marketing and sales strategies as well as the effectiveness of the management team.
Situation: A well established company that provides software and hardware products that help major manufacturing services company manage inventory of parts, assemblies and finished goods was not achieving its sales objectives. The CEO was the primary sales person whose sales performance had drawn nearly to a halt because his rolodex was exhausted. Nobody in the company had done any marketing work to identify new sales prospects and he did not really know how to do it. His company was stuck at $3M in revenue and most of it was from recurring license fees and maintenance services.
Management focus changes as companies evolve through the different growth phases. This article applies to all phases, but is probably most valuable to start-ups and companies in the first growth phase.
In this article we focus on highlighting some of the things you need to know about legal issues, dealing with them, and the lawyers who help you resolve them.
Strategic leadership is about looking to the future with the ability to see around corners, look through walls with x-ray vision, find the shine under the tarnish and use this information to chart the course of the company. The CEO does this by making strategic decisions that will ensure a viable future for the business and by constantly tuning the organization to fit the current business environment. The biggest challenge, however, is not in identifying the correct solutions, but in convincing the employees that the changes required to implement these solutions are essential and manageable.