DIGITAL ENTREPRENEUR HAMBURG

Liquidity Archive

Dienstag

28

August 2012

0

COMMENTS

Strategy – why do we even bother with all of this? (b)

Written by , Posted in Strategie

Balance sheet Your balance sheet – yes, you have seen it when the yearly accounts were prepared but it really did not matter to your start-up. For you the one and only key was liquidity in the beginning, followed by profitability but what now? Yes, those accounts become important eventually. What do I mean by that – well, once you have established your strategic goals you will need to optimize your balance sheet accordingly. If you are preparing for a sale, potential investors (and their highly-skilled forensic accountants) will look at your accounts. Are you planning to change your debt to equity ratio and work with more capital? Will a bank lend you money? Are you going to build / buy your next office or remain a humble tenant? There are a lot more questions to ask and you are now playing with the big boys. A Fortune 500 CFO will be very concerned with her balance sheet and watch movements in these accounts closely. As an eCFO of a start-up this is a new area for you and you should slowly get into it as your business develops. In summary a balance sheet can also teach you lots of […]

Sonntag

26

August 2012

0

COMMENTS

Strategy – why do we even bother with all of this? (a)

Written by , Posted in Strategie

So, why do we even bother with all of this? Initially, you need to make sure that your business performs well, does not run out of money and that financials analysis and data points support operational decisions. All of that you can do but if you are a serious eCFO this is probably not the stuff that makes you get out of bed every morning. What really should get you excited is building a healthy, growing and extremely successful venture.  Your operational measures will support that but more importantly you should be influencing the strategic development of your company – if you are not doing that you chances are you will never be more than a glorified accountant. Strategic decisions In order to make a strategic decision you will need a strategy. This may sound a little too simple, but ask some start-ups about their strategy and often you will find that they either do not have one or are unclear in what it is they are trying to achieve. How much time do you think an operationally involved management team has for strategic discussion, decisions and evaluations? From my personal experience: very, very little. Daily business and the demands […]

Mittwoch

2

Mai 2012

1

COMMENTS

Controlling – a CFOs sole purpose in life!

Written by , Posted in Allgemein

Controlling is a key aspect for each new venture. It starts out initially with a solid understanding of cash flows and moves across various phases as a business growths. In my experience the key aspects for each venture development stage can be summarized with the following headlines: Liquidity awareness Profitability measures Balance sheet optimization Each of these three steps requires different controlling techniques and management focus on various aspects of the business. As a venture develops it is not only these above mentioned points but also controlling techniques for each key business resource that will keep management busy. Also be aware that, “measures” and “optimization” have been picked on purpose – your role as a CFO will change with each of the steps listed above. You will move from making decisions that might be bad for profitability but good for liquidity to pure financial engineering actions that will optimize your balance sheet. This also requires a move in your strategic thinking from survival (liquidity), to operations (profitability) to strategic, long-term goals (balance sheet and capital structure optimization). eCFO Tip: Controlling is all about data ANALYSIS and FOLLOW-UP ACTION. If you cannot effectively collect, store, organize and eventually analyze data you […]

Sonntag

18

März 2012

0

COMMENTS

In German only: StartUp-Roundtable am 4. April 2012

Written by , Posted in Finanzierung

Please come and join us for an interesting discussion of financing. The next blog entry will deal with exactly this topic and a summary of the article will be presented a the below event. StartUp-Roundtable am 4. April 2012 Sehr geehrte Damen und Herren, herzlich laden wir Sie zum nächsten StartUp-Roundtable ein, der erstmals bei unserem Partner Ernst & Young stattfindet. Wir freuen uns, Sie am Mittwoch, den 4. April 2012 um 18.00 Uhr in der Rothenbaumchaussee 78 zu begrüßen. “Fit für Wachstum?” heißt das Thema dieses Abends – bei dem sich alles um die Finanzierung dreht: Welche Finanzierungsformen gibt es und welche sind für mich geeignet? Wie bereite ich mein Unternehmen auf die Anforderungen von Investoren und Kreditgebern vor? Wie stelle ich mich vorrausschauend für die Gespräche mit potenziellen Investoren auf? Diese und weitere Fragen beantworten die erfahrenen Referenten und zeigen auf, wie Sie die Weichen für das langfristige Wachstum nach der Gründung legen. Hören Sie dazu einen Erfahrungsbericht von Nils Seebach, CEO bei eTribes – der Inkubator und Spezialist für den Aufbau und die Skalierung innovativer Online-Geschäftsmodelle mit dem Thema: “JV, VC oder Bootstrapping? Pros & Cons!”. Freuen Sie sich außerdem auf Jan-Menko Grummer, Partner bei Ernst & […]

Donnerstag

9

Februar 2012

0

COMMENTS

Liquidity – the one and only!

Written by , Posted in Allgemein

It is no coincidence that the first post is about liquidity. Liquidity is the ONLY measure that eCFOs need to focus on from Day One and should focus on for the entire life of any venture. All other considerations, from profitability, growth to balance sheet optimization are irrelevant if you run out of cash. 1st day measures For a new venture or an eCFO joining a new company I would recommend the following steps for the first 3 months to become instantly familiar with the cash flow profile of your company: 1. The second you arrive make sure that all bills and invoices have to be signed by you and that you cover all cash out- and inflow channels eTips: Don’t forget about online specific issues such as PayPal, Adwords & Adsense accounts, facebook ad accounts; linkbuilding accounts etc. Here you have a source of expenses and income that can come as quite a surprise. 2. Establish a spending limit – currently any expense that is above EUR50/USD40 should be approved by you – any you only. This lets you get an insight into the spending pattern of the company. 3. Check every transaction on your bank account daily. Don’t […]