Understanding The Importance of Margins

"It has been my experience that competency in mathematics, both in numerical manipulations and in understanding its conceptual foundations, enhances a person's ability to handle the more ambiguous and qualitative relationships that dominate our day-to-day financial decision-making"
Alan Greenspan

This programme is NOT designed to turn delegates into accountants nor financial experts, however in all organisations we have people that are customer facing – dealing with customers in a trading environment. It is essential that they have a basic understanding of how their actions impacts on the company’s margins – and as a consequence – their financial wellbeing.

Cash is the lifeblood of any business, "the company's oxygen supply."

An astute manager must always ask the questions: Does the business generate enough cash? What are the sources of cash generation? How is the cash being used? Failing to ask these questions often spell the end of the business. Without cash, a business can be in trouble even if other aspects of moneymaking - profit margin and asset velocity - looks good.

If the business generates sufficient cash, the business manager is in a better position to grow the business. He/she can make better investment decisions, not to mention be more in control, if it has its own cash rather than borrowing money from investors.

That cash comes from protecting your MARGINS.