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How do Business Executives make Financial Decisions?
Answer to this question always impact the bottom line Earnings. 1. How do Business Executives manage their businesses?1.1. Managing any business efficiently is a challenge for an executive, especially, when changes in financing the Working Capital requirements are being considered. Most executives manage their business financially the same way they did last month, i.e.
1.2. This is the way most business owners manage their businesses. The keyword here is "shocked." And nowhere, in their monthly routine do managers look at the impact on the bottom line Earnings to help them to make business decisions, because they do not have Financially Engineered tools to give them the answers they need to make the best decisions possible. 2. Executives need our Financially Engineered Tools.2.1. It is obvious that executives would like to be able to make financial decisions by looking at the Earnings impact on their decisions before they become "shocked" by what they see on their financials. This is exactly what the Invoice Profitability Calculator (IPC) was designed to do and does by comparing two Working Capital financing strategies, i.e.
2.2. It is clear the IPC could be used by any small or a medium sized businesses to monitor and manage the most important contributors to the Earnings of the business just like all of the Fortune 500 businesses do. 2.3. Most executives are totally unaware that additional Earnings can be extracted from their current investment in Working Capital of their business. What that means is, the business can continue, "over investing" their own money in Working Capital or begin extracting additional Earnings out of every Sales Dollar. 2.4. When it is all said and done, the choice of which direction a business should proceed boils down to wanting the additional Earnings or not. If the answer is, "Go after a better bottom line," then the business should license the IPC product and measure the impact on their past and/or pending decisions as it pertains to choosing the best financial strategy to fund the Working Capital requirements of the business. |
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