How Finance Works: The HBR Guide to Thinking Smart About the Numbers
by Mihir A. Desai
This is an outstanding book which presents some complicated topics in a clear, well-organized manner with real-world examples. The author, a professor of finance and taxation at Harvard Business School and Harvard Law School, includes some sidebar commentary from two CFOs, an investment banker, and a hedge fund manager.
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Cash Flow Surge: 101 No-Cost and Low-Cost Fast-Action Strategies to Boost Your Business Cash Flow
by Alastair Thomson (interview)
In college I took a course called Small Business Finance. The main thing I remember from this course is the emphasis on “cash flow, cash flow, cash flow.” Alastair Thomson is an accountant who has been a CFO and CEO of several businesses in the U.K., across variety of industries. He wrote this book for owners of small and medium-size businesses. While cash flow and profit are not the same thing, many of the ideas in the book can improve both.
The 101 chapters cover suppliers and expenses, customers and revenue, staffing and procedures, communication, insurance, logistics, contracts, and technology. Here are some snippets: Continue reading “Cash Flow Surge: 101 No-Cost and Low-Cost Fast-Action Strategies to Boost Your Cash Flow”
Financial Intelligence: A Manager’s Guide to Knowing What the Numbers Really Mean
by Karen Berman and Joe Knight
This outstanding book teaches corporate financial literacy to nonfinancial employees. There are 33 short chapters grouped into sections covering the income statement, the balance sheet, cash, ratios, return on investment, and working capital. “You’ll learn how to decipher the financial statements, how to identify potential biases in the numbers, and how to use the information in the statements to do your job better.”
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The 1% Windfall: How Successful Companies Use Price to Profit and Grow
by Rafi Mohammed
Rafi Mohammed is an economist who consults on pricing strategy. The 1% windfall refers to the large impact on operating profits resulting from small adjustments to price. “A study by McKinsey & Company of the Global 1200 found that if they increased their prices by just 1%, and demand remained constant, on average each company’s operating profits would increase by 11%.” The book is about creating a portfolio of pricing options to appeal to as many customers as possible, thus maximizing profit. Continue reading “The One Percent Windfall”
Seeing the Big Picture: Business Acumen to Build Your Credibility, Career, and Company
by Kevin Cope
The premise of this book is that an employee who understands business fundamentals will be taken more seriously by management. “If, through your questions, ideas, comments, analysis, proposals, and performance, you exhibit business acumen, you will be seen as a more valuable contributor. You will demonstrate your worth to the company, and other people will notice.” Continue reading “Seeing the Big Picture: Business Acumen”
The Key Point 