Those who...
1. Track everything
2. Track nothing
Whether ignorance or information overload - neither is ideal.
Instead, choose fewer, but more meaningful KPIs.
The #1 reason a company fails:
Cash flow issues.
Track this metric to thrive:🧵
Those who...
1. Track everything
2. Track nothing
Whether ignorance or information overload - neither is ideal.
Instead, choose fewer, but more meaningful KPIs.
The info can be applied to:
1. Finance
2. Operations
3. Customer Management
One centralized KPI keeps departments working together.
The best part?
It's centered around cash.
The time (in days) it takes a dollar to go from product or service to cash in the bank.
Note: CCC is used for inventory investments, but the service equivalent is called:
Service-to-Cash Cycle.
Same principles, so we'll use CCC for simplicity.
In days, and...
Above 0 = longer to sell & collect cash than to pay vendors.
Below 0 = faster to sell & collect cash than to pay vendors.
The lower, the better.
Higher numbers indicate current or future cash flow issues.
How is it used across departments?
Strong CCC means there is cash to fuel growth.
Without it, growth must be financed.
It's risky - with larger receivables, comes larger payables.
When bills are due & there's no cash...
You know what happens.
Make cash collection a priority & finance teams can analyze new opportunities instead of restructuring debt.
Collecting cash quickly is a function of operational efficiency.
Product/service, sales, A/R, & A/P teams must be working together with accurate and timely information.
This is easier said than done.
Low CCC = effective management.
Getting great payment terms from customers & vendors requires quality relationship management.
Consistency, reliability, & being liked will dramatically improve the cash position.
Treat them well and be clear with expectations.
Extremely.
Harvard Business Review credits a negative CCC for Amazon's survival of Dot Com bust.
By collecting before spending, sustainable growth was possible.
Competition was financing product purchases, hoping to collect.
A viscous cycle.
With my SEO company, Bright Line Media, I collect cash 21 days before I owe vendors.
It wasn't always this way.
I once paid a vendor 2X before getting paid and it prompted change.
Here's what I did:
1. Payment date to the 5th
2. Must pay via Stripe
3. NO physical checks
Receivables, solved.
I negotiated better payment terms by always paying on time & promising to pay via ACH (no fees).
Payment Date 26th.
21 Days from collection to payment.
New sales enter into this cycle & never incur an out of pocket cost.
Quick Summary:
1. Don't overproduce / hire
2. Collect cash quickly
3. Set consistent payable cadence
4. Cross department communication
Build a healthy company - on the cash you're owed!
Follow me @barrettjoneill for more on business, growth, & SEO.
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MCap is a function of market sentiments. Balance sheet, cash flows, R&D execution, talent acquisition, regulatory compliance, M&As and so on....are a function of management/governance. Never mix the business with the stock. Stock is not the business. Business is not the stock :)
It's simple, if ""FY23 PAT of this API to CDMO = FY21 PAT of largest pure-play CDMO/API"" then the FY23 Mcap of this API/CDMO= FY21 Mcap of largest pure-play CDMO/API, am I correct Sajal saab??
— richman (@greatrichman3) June 14, 2021
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First thread of the year because I have time during MCO. As requested, a thread on the gods and spirits of Malay folk religion. Some are indigenous, some are of Indian origin, some have Islamic
Before I begin, it might be worth explaining the Malay conception of the spirit world. At its deepest level, Malay religious belief is animist. All living beings and even certain objects are said to have a soul. Natural phenomena are either controlled by or personified as spirits
Although these beings had to be respected, not all of them were powerful enough to be considered gods. Offerings would be made to the spirits that had greater influence on human life. Spells and incantations would invoke their
Two known examples of such elemental spirits that had god-like status are Raja Angin (king of the wind) and Mambang Tali Arus (spirit of river currents). There were undoubtedly many more which have been lost to time
Contact with ancient India brought the influence of Hinduism and Buddhism to SEA. What we now call Hinduism similarly developed in India out of native animism and the more formal Vedic tradition. This can be seen in the multitude of sacred animals and location-specific Hindu gods
i wonder if you can make a thread bout witchcraft in malaysia.. or list of our own local gods/deites..
— r a y a \U0001f319 (@lcvelylilith) February 20, 2020
Before I begin, it might be worth explaining the Malay conception of the spirit world. At its deepest level, Malay religious belief is animist. All living beings and even certain objects are said to have a soul. Natural phenomena are either controlled by or personified as spirits
Although these beings had to be respected, not all of them were powerful enough to be considered gods. Offerings would be made to the spirits that had greater influence on human life. Spells and incantations would invoke their
Animist ceremonies of a religious or magical nature were normally held for the purpose of divination or making a request. This would either be done at a keramat or at a shrine similar to the Thai spirit houses or Chinese roadside shrines pic.twitter.com/I1hliyi0x3
— \u2745\u1710\u170b\u1713\u170e (@uglyluhan) June 16, 2019
Two known examples of such elemental spirits that had god-like status are Raja Angin (king of the wind) and Mambang Tali Arus (spirit of river currents). There were undoubtedly many more which have been lost to time
Contact with ancient India brought the influence of Hinduism and Buddhism to SEA. What we now call Hinduism similarly developed in India out of native animism and the more formal Vedic tradition. This can be seen in the multitude of sacred animals and location-specific Hindu gods
"I lied about my basic beliefs in order to keep a prestigious job. Now that it will be zero-cost to me, I have a few things to say."
We know that elite institutions like the one Flier was in (partial) charge of rely on irrelevant status markers like private school education, whiteness, legacy, and ability to charm an old white guy at an interview.
Harvard's discriminatory policies are becoming increasingly well known, across the political spectrum (see, e.g., the recent lawsuit on discrimination against East Asian applications.)
It's refreshing to hear a senior administrator admits to personally opposing policies that attempt to remedy these basic flaws. These are flaws that harm his institution's ability to do cutting-edge research and to serve the public.
Harvard is being eclipsed by institutions that have different ideas about how to run a 21st Century institution. Stanford, for one; the UC system; the "public Ivys".
As a dean of a major academic institution, I could not have said this. But I will now. Requiring such statements in applications for appointments and promotions is an affront to academic freedom, and diminishes the true value of diversity, equity of inclusion by trivializing it. https://t.co/NfcI5VLODi
— Jeffrey Flier (@jflier) November 10, 2018
We know that elite institutions like the one Flier was in (partial) charge of rely on irrelevant status markers like private school education, whiteness, legacy, and ability to charm an old white guy at an interview.
Harvard's discriminatory policies are becoming increasingly well known, across the political spectrum (see, e.g., the recent lawsuit on discrimination against East Asian applications.)
It's refreshing to hear a senior administrator admits to personally opposing policies that attempt to remedy these basic flaws. These are flaws that harm his institution's ability to do cutting-edge research and to serve the public.
Harvard is being eclipsed by institutions that have different ideas about how to run a 21st Century institution. Stanford, for one; the UC system; the "public Ivys".