Money begets money: how 10% of the money, leveraging your projects – business, projects and capital management – Gifts & Crafts Industry
With economic development and globalization, the traditional corporate governance and financial management has been unable to meet the needs of modern enterprises. As a business decision makers to more financial management from a strategic perspective, corporate governance and capital operation, knowledge and operational tools. Zhejiang University EMBA "Investment Analysis and Capital Management" class, a senior investment bankers, management experts, Beijing University of Chemical Technology Professor Yuan Li and students to discuss investment and capital operation and management.
Professor Yuan Li said that as a CEO, the investment decision-making process, the need to answer the following questions: the performance of growth and cost reductions Which is more important? For enterprises, cash and profits Which is more important? With funds for investment in operating cost it? What is financial leverage? To borrow money to repay it? Capital is what? What is rich?
Do not have to hurry to return from the money
Policy makers is the leader in business, life and death grip on power, there must be a good financial mind.
Professor Yuan Li have owe theory is "not yet had to play on." However, he said, this seems to embody an alternative theory of financial leverage is a thought – when the margin over the interest rate to borrow more money the higher the rate of return, this time we must seize the opportunity to make full use of capital for enterprises to win a higher rate of return. Currently, real estate companies will leverage the theory of play to the extreme. Some real estate developers as long as several million dollars, 100 million yuan will be able to start the project.
Yuan Li of the EMBA students, said: "We all know that the United States is the world's largest debtor, but it is also the world's richest and most powerful country. A national blind pursuit of zero or even negative external debt, in fact, the lack of financial leverage mind. this theory in a business is the same reason. "
Yuan Li pointed out that the veterans to see the financial statements of companies should be cash flow and profits as important as the two parameters, not favoritism. Cash flow is the issue of business survival status of the parameters of corporate profits is about the parameters of the future. The short term, business cash flow and profit in balance. In the long run, if poor corporate profits, capital strand breaks is a matter of time.
Then how manage money? Yuan Li suggested that veterans in their daily work in addition to the financial statements of concern, but also look at bank statements. First of all, to the management practices of large banks business accounts; Secondly, as far as possible to the high level of bank branches or a branch sales office to open an account; third, trusted, or in person entrusted to the bank counter operations; Fourth, the establishment of specialized personnel removed to the bank account statement; the fifth, opening online banking, internet banking set up at least play on the bill processing function.
I am an expert from Chinese Manufacturers, usually analyzes all kind of industries situation, such as high performance scooter parts , heated stadium seat.
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