John worked a nicely paid accounting job in a nice city. Some 10 years into the job, things began going south in the company and it had to be abruptly shut down. John is 45, not exactly the most thrilling phase of life. He weighed out his options and made the most brilliant decision of his life to retire. An ardent saver, John made a careful breakdown of his expenses and incomes, including his wife’s full-time job that covered a major part of their income. He moved to a more economical living space, reconsidered his expenses, switched grocery stores, reduced the internet and found no difference and made all the other necessary steps. John is now a happy man with a happy life and is proud of his decision to quit working, he doesn’t even worry a bit about overspending. John is independent.
Many CFOs excel at cost-cutting but not all of them go beyond that and focus on optimizing business value. Cost optimization is a continuous process that companies need to embrace. While it is possible that most companies by now have optimized almost every operation they could, there is more than one way to attain the desired goal.
The global healthcare industry is growing at a stable, if unspectacular rate, and is expected to earn revenues of over $1.8 trillion this year.
The Indian healthcare industry has turned into one of the country’s largest sectors in terms of both revenue, and employment. The industry has grown at a rapid pace and is expected to be worth over $350 billion in the next few years.
Any new business setup or an existing organization requires a strong business plan to succeed and survive. Marketing, strategizing and positioning are important aspects of a business plan, but do those aspects matter when there isn’t a good display of some figures and forecasts to understand the company’s current stand and where it’s headed? If your set-up is new, you will most likely have an academic approach to your business plan and if it is undergoing an expansion, you will probably have a more practical approach. But it is the long-term approach of planning your finances within this business plan that will determine its success and tackle any potential barriers. Financial planning is what ensures whether a plan is viable or not.
Owning a business in the food industry can be both complex and diverse. Food diversity all around the world has cultural sentiments attached to them. One of the foremost cities that is rich in its food ethnicity is Hyderabad.
MyCFO worked on a project with one of the oldest sit-down restaurant chains in India with an annual turnover of approximately 100 crores. The Restaurant owns and manages 6 outlets, all in Hyderabad and Sikandrabad.
Every time a successful company comes to our minds, our first thought is what their services or businesses offering are. We quickly then move on to think of their leadership team – the CEO or the MDs. Great CEOs like Jeff Bezos and Tim Cook are, or course, an invaluable key to success, but that doesn’t mean we should ever overlook the second–in-command, namely the CFO.
Behind the scenes, all of the great achievements, most likely, could not have happened without the financial house being kept in perfect order by the CFO. CFOs do all the heavy lifting behind the scenes – which, according to me, is a vital ingredient to sustain the business and may be the key to transition the company from ‘good’ to ‘great’. Here’s one such ‘on-the-ground’ situation faced by one our own CFOs that shows us exactly how priceless a good financial insight can be.
These are exciting times for entrepreneurs. Though it is no walk in the park, more and more people are turning to entrepreneurship and working on exciting ideas that could be large and successful enterprises. Today, businesses have access to capital in the form of angel, venture and growth capital, provided their business models are proven and reasonable, they have a team to execute and are building sustainable organizations. And, of course, there are friends, family and fools.
As an angel investor and consultant, I have been investing and advising startups for a while. I get to meet enthusiastic entrepreneurs and teams looking to raise capital. Several of these are good businesses, but are not necessarily fundable by venture funds or angel groups. Investors and financiers define ‘being fundable’ differently; individual angel investors may fund a startup that is not necessarily attractive to venture funds. What is fundable by venture capital or private equity may not be fundable by angels or individuals, and what is not fundable through equity may be fundable through debt. As a first step, I always tell entrepreneurs and companies that they need to analyze and understand why their startups or businesses may be fundable. This saves time, avoids disappointment, and allows you to focus on building your business.
It is that time of the year when you as entrepreneurs or finance professionals will be planning the budget for FY17 – 18. Having helped over 300 companies with their Budgeting and Business Planning process over the last 5 years, the MyCFO team has put together this blog to help you get more value out of this exercise.
Here are some pointers that will help you plan more incisively and get an output which is not just an excel spreadsheet but gives you a real shot at moving your organisation in the right direction at the right pace. As part of this new year’s new resolutions, make your budget reflect where you want your business to go and how you want it to grow. Take a conscious step back; see where you are and then, move on to see where you want to be. Or where you can be. Your budget is a map. Here are some pointers as to how you could draw it.
This piece is not about start-ups and young entrepreneurs.
Its about the investors who are wooed by businesses and pump money into the Indian business ecosystem. It is about ‘Investor Delight’ which is not equivalent to appeasement. It’s about making them quote your company as one of the positive examples in their portfolio which can only have a positive spin off for all concerned.
India is the third most preferred economy by venture capitalists and private equities. What businesses need to understand is that Venture Capitalists and Private Equity investors are seeing potential in India, yet, they are looking at more mature and sound businesses/ ideas. After the head over heels rush a couple of years ago, investors are being cautious. They are beginning to understand that the growth spurt of start-ups has slowed down and businesses are beginning to settle down and find their niches. These developments need to be communicated to investors regularly by CFO’s and founders so they are well informed.