free cash flow

Growing your business – 3 Key Tips

Growing your business – 3 Key Tips

There comes a point when entrepreneurs/founders want to expand and grow their business, be it adding a new service/product, opening a new location or adding staff to grow existing services. I would recommend 3 key tips for businesses to consider before embarking on a growth phase. 1. Planning for growth…

Free Cash Flow and why it’s important in your Business

Free cash flow is a financial indicator that is favoured over ROCE, ROI and other ratios to gauge a company’s health. So it’s important for entrepreneurs to understand how important it is in their business. Free cash flow is how much cash is left in the business after all running…

How to Value your Business

After getting ready for a business exit, the first thing that has to be done is to value the business. This is when the fun starts as there is no straight forward calculation that can determine the value of your business. The most important thing to remember is that the…

3 Critical Key Performance Indicators (KPIs’) to use in your Business

KPIs’ (Key Performance Indicators) are set up for absolutely anything these days from measuring SEO performance to customer satisfaction and it’s easy to get submerged in a sea of indicators. Everyone talks about them and mentions them in such jargon that it is vital to keep a clear head of…

5 minute Guide to understanding a Cash Flow Statement

5 minute Guide to understanding a Cash Flow Statement

What is a Cashflow statement? It shows how the business spent the cash it earned during the period and is usually the easiest financial statement to understand. Essentially, it is a reconciliation of how the cash amounts on the Balance Sheet have moved from one period to the other by…

Investors’ Jargon explained

Investors’ Jargon explained

  Once you start meeting with investors’, you will find that they and their financial advisers start talking in jargon about your business in terms that may as well be in Klingon. EBITDA, IRR, NPV, leverage, terminal value, net cashflow, free cashflow, blah…blah…blah… Here’s a short explanation of investors’ jargon…