Finance Training for Operational Management
Liabilities, assets, ROI…let alone gearing ratios and balance sheets are enough to bring operational managers out in a cold sweat. What place does finance training have in the world of sales? Believe it or not finance has a very substantial place and an increasingly important one as businesses become more difficult to manage.
This is not to say that operational management should somehow morph into accountants or that indeed if they could that this would be the right approach for the business. Businesses are essentially run by business people (entrepreneurs able to maximise opportunities), however does this mean that operational management should avoid any form of financial training and remain unable to talk the same language and serve the common interests of the business.
This example might serve to illustrate the point. A particularly entrepreneurial Sales Manager found himself presented with a fabulous opportunity. He was able to purchase a number of key product lines from another business that was under pressure to liquidate them. There was nothing wrong with the consignment and the offer was very attractively priced. There were 2 problems however…
- In order to do the deal the would be buyer had to acquire all the stock and
- These were seasonal products which were not going to sell until the spring
Alas the board for the following reasons refused the purchase.
- The overdraft facility could not sustain the pressure that this purchase would have caused.
- What cash there could have been was tied up in overdue debts that the manager had caused through late invoicing and poor debt management
- Office equipment had been purchased via the cheque book (an easy mistake to make) taking yet more cash out of the business.
In summary all of the following had been affected.
- Cash flow
- The balance sheet
- Funding long-term items from liquidity
- Equity and gearing
- Net profit
Our approach to finance training is to take financial principals and bring them to you in a way you have never experienced before…de-mystified…easy to understand…fun…interesting and perhaps above all…easy to do something with what you have learned.
If you are interested in discussing your finance training requirements in a little more detail, I would be delighted to do so on 01908 261179 or alternatively email me and I will contact you personally by return.