How Do You Fund Growth-innawoods

UnCategorized Funding from banks and other institutional sources has been challenging for the last three years. Yet growing companies need to fund their growth. How have you managed to fund your company’s growth? Notes from a conversation with Hannah Kain, President & CEO, ALOM We have always focused on frugality and worked to prevent wasteful spending. Where I have always invested in is tools which enable my staff to purchase wisely and to stay ahead of the curve on customer demands. We also collaborate with our vendors to manage costs. As a result, the last two years have not forced much change in the way that we fund our growth. We are getting large contracts and work globally to solve our customers’ logistics challenges. Where we have seen challenges is in moving from a centralized distribution center to strategically placed centers around the globe. This has meant an increase in inventory cost and has increased our cash needs. The change that we have seen in our business model has been along the lines of how we negotiate terms with our customers and how we manage lines of credit. We manage accounts payable to our vendors to maximize cash flow while treating them as business partners. This requires maintaining close communications with vendors to assure that everyone’s needs are met. We have become more cautious with our banks. We don’t dip into our lines of credit very much. Managing vendor payments has been more effective. Essential points of our vendor communications include open information sharing and goal setting. We work to create a team atmosphere with our business partners. This is similar to what we do in our offices. In our experience, instilling the right culture is far more powerful than financial incentives. We share information both through all-hands company meetings and regular company updates to supervisors so that everyone has a sense of the full picture. We also share information with our vendor business partners so that they are aware of our needs and we of theirs. On the goals side we create an annual one-page business plan for the company, and parallel plans down to the supervisor level. Performance against these plans is updated on a regular schedule to assure that we remain on top of any situations that we face. Our focus on training is on new tools as they become available. We give our staff everything that they need to be successful. We are generous in providing technology to our employees, provided that they give us a logical rationale for the technology. This includes home computers, iPhones or Applets to help them do their jobs more effectively. Similarly, when a vendor or customer asks for something like a service improvement or a new service, provided that they give us a good rationale that makes business sense, we will invest to support this. These modes of operation have allowed us to finance most of our growth internally without having to rely heavily on banks. About the Author: 相关的主题文章: