The sales and marketing teams and, indeed, the board and CEO are all pointing to growth data and signals from the market that the economy is humming along an presenting more opportunities than they can possibly grasp. Yet the risk of a cash crunch remains.
The CFO is playing a critical role in rasing capital and capital raising skills are not in the standard class of technical accounting skills
After a couple of years in the economic doldrums the CFO, like all business leaders, is looking outward once again and preparing for growth. One item that has remained top of mind is cash flow.
Reducing expenses has a more immediate positive affect on the bottom line and is much less expensive to implement than trying to raise the top line by increasing sales
A more conservative growth path based on organic growth is more manageable from the CFO perspective and more in tune with capital adequacy factors
Product development managers, the marketing teams and their mobile warriors selling the company’s products and services, may be the revenue drivers for a company, but all too often the financial assumptions necessary to launch new products are based on overly optimistic expectations.