ProvenCFO’s Post

Just finished Corporate Finance: Profitability in a Financial Downturn. Learining outcomes: Tips in spending analysis and proactive ways to improve profitability When an organization experiences a financial downturn. how to cut costs and improve cash flow to survive an economic decline and set up the business for long-term success. tips to help in negotiation with vendors, reduce overhead, recover and redeploy existing assets, and cut back on labor costs. Check it out: https://lnkd.in/d8BXjCx6 #corporatefinance

Understanding your costs is a superpower in the ever-changing world of business. Let's get into the important business of cost identification and analysis: The Insight Advantage: Cost identification is about insight, not numbers. It's knowing where every dollar goes, spotting opportunities, and steering your company to success. Clarity Categories: Divide costs into fixed and variable orexpense line categories. This clarity sharpens your focus, guiding you toward cost-effectiveness. Renegotiate Contracts: Re-examine your contracts, reach out to your vendors and make efforts to renegotiate lower prices/fees, you would be surprised to find that many of them are open to give you good discounts. Keeping Good Records: Implement a systematic cost-tracking system. The foundation of transparent reporting, audits, and strategic decision-making is accurate financial records. Teamwork: Effective cost identification is not a one-man job. Collaborate with other departments and decision-makers to analyze, optimize, and propel your company forward. If you implement these tips you will cut down a meaningful amount of costs associated with running your business. #finance #business #budget #costs

𝐇𝐨𝐰 𝐭𝐨 𝐢𝐦𝐩𝐫𝐨𝐯𝐞 𝐖𝐨𝐫𝐤𝐢𝐧𝐠 𝐂𝐚𝐩𝐢𝐭𝐚𝐥? Working capital is an important piece for every business and every finance department. It is an investment needed for the regular business operation and every CFO should, always, try to optimize it. 1️⃣ 𝐎𝐩𝐢𝐭𝐦𝐢𝐳𝐞 𝐢𝐧𝐯𝐞𝐧𝐭𝐨𝐫𝐲 𝐥𝐞𝐯𝐞𝐥𝐬 📦 Define and maintain an optimal balance to avoid inventory excess. Each business is different and the "optimal" should be found. 2️⃣ 𝐀𝐜𝐜𝐞𝐥𝐞𝐫𝐚𝐭𝐞 𝐑𝐞𝐜𝐞𝐢𝐯𝐚𝐛𝐥𝐞𝐬 💸 Implement efficient invoicing and collections processes. Define policies and don't be afraid to apply penalties included in contracts to customers. 3️⃣ 𝐄𝐱𝐭𝐞𝐧𝐝 𝐏𝐚𝐲𝐚𝐛𝐥𝐞𝐬 ⏳ Negotiate terms with vendors and suppliers along the supply chain. There are other financial tools such as factoring that could bring benefits to different parties. 4️⃣ 𝐂𝐨𝐧𝐭𝐫𝐨𝐥 𝐄𝐱𝐩𝐞𝐧𝐬𝐞𝐬 🔪 Constantly review and manage costs and expenses. Identify unnecessary costs, promote efficiency initiatives. 5️⃣ 𝐂𝐚𝐬𝐡 𝐟𝐥𝐨𝐰 𝐟𝐨𝐫𝐞𝐜𝐚𝐬𝐭𝐢𝐧𝐠 🔮 Create a constant and deep forecasting processes, involve key players and departments. This will help not only to prevent cash flow needs but to identify opportunities. Create a culture beyond Finance department, every leader should be aware of the impact of their negotiations and transactions. What do you think? What is missing? #finance #workingcapital #cashflow #leadership I am Gustavo Madrigal

Just finished the course “Corporate Finance: Profitability in a Financial Downturn”! Check it out: Jason Schenker explains how should an organization align it's assets and expenses in a  a financial downturn, how to cut costs and improve cash flow to survive an economic decline and set up the business for long-term success. Also learned about the biggest challenges companies face in a downturn, discover how to fine-tune your financial priorities, and find ways to reduce costs. Get practical tips to help you negotiate with vendors, reduce overhead, recover and redeploy existing assets, and cut back on labor costs. And finally importance of Cash i.e. Just don't run out of Cash in Economic Downturn as availability of cash help you survive and also helps you to capitalise your business in Economic Recovery period. https://lnkd.in/euGqKZJd 

💡 How much should I spend on my support functions? A question I have been asked many times over? AND YES, it depends... If you don't fully understand your costs or believe that those are high, then perhaps it is time to transform and go further than the headline figure. More often than not, this comes down to understanding the drivers and how those relate to your strategy. You may also find that by reframing your functions impact, you can turn a cost centre into a ✅ profit center. To understand the value of a function you need to understand what you spend money on and why? 1. REVIEW your business functions (Core and Support) roles and responsibilities 2. MAP OUT your processes 3. IDENTIFY where processes can be streamlined and automated 4. ANALYSE costs by type, contribution and suppliers 5. BENCHMARK your suppliers, eliminate or re-negociate terms 6. INTRODUCE relevant metrics to control and monitor This will not only increase your margin and EBITDA, it will help you better appreciate the value created by your business functions 🎯 . #growthstrategy #transformation #performance #process #CFO #cost #finance

Just finished the course “Corporate Finance: Profitability in a Financial Downturn”! Check it out: https://lnkd.in/dX7--MWu

Day 3 of the Financial Challenges Series! Question: How can small businesses effectively manage cash flow during slow seasons? Managing cash flow during slow seasons is crucial for small businesses to stay afloat: 1/ Forecast Wisely: Predict seasonal dips in sales and plan your expenses accordingly. Build a cash reserve during peak seasons to cover slow periods. 2/ Control Expenses: Review and cut non-essential costs during slow times. Negotiate better terms with suppliers or seek discounts for early payments. 3/ Boost Sales: Offer promotions or discounts to stimulate sales during slow periods. Explore new revenue streams or diversify your product offerings. 4/ Monitor and Adjust: Regularly track your cash flow and adjust forecasts as needed. Stay flexible with budgets and be prepared to adapt to changing conditions. Have any questions about managing cash flow? Drop them in the comments below! P.S. - Follow CA Amit Jagwani for more such IPO and Finance-driven updates. #finance #series #challenge #investing #IPO #research #investmenttips #IPO #financialnews #postipo

Just finished the course “Corporate Finance: Profitability in a Financial Downturn” by Jason Schenker! 

Using the contribution margin approach has many benefits. Unfortunately, heavily relying on it can negatively impact a firm's profitability. There are a few mistakes managers can encounter when using the contribution margin. Additionally, managers sometimes assume that the firm should cut products with the lowest contribution margin based on the calculation alone. An example of how this can be dangerous is the concept of Cash Cows. https://lnkd.in/eh3iBf6k #ContributionMargin #Business #Finance

Building the business of tomorrow! Cost control is critical for small businesses. Learn how to manage expenses in a challenging market with @BritishBBank's six cost-saving tips! 👉 https://ow.ly/Aurq50PStc1 #BFW2023