BC ACCOUNTING
Saved by @AnmolNarula11

The #1 reason a company fails:

Cash flow issues.

Track this metric to thrive:🧵

 There are 2 types of operators:

Those who...

1. Track everything
2. Track nothing

Whether ignorance or information overload - neither is ideal.

Instead, choose fewer, but more meaningful KPIs.
Cash Conversion Cycle (CCC) is simple, but has far reaching application - that's why I like it.

The info can be applied to:

1. Finance
2. Operations
3. Customer Management

One centralized KPI keeps departments working together.

The best part?

It's centered around cash.
What is CCC?

The time (in days) it takes a dollar to go from product or service to cash in the bank.

Note: CCC is used for inventory investments, but the service equivalent is called:

Service-to-Cash Cycle.

Same principles, so we'll use CCC for simplicity.
How is it measured?

In days, and...

Above 0 = longer to sell & collect cash than to pay vendors.

Below 0 = faster to sell & collect cash than to pay vendors.

The lower, the better.

Higher numbers indicate current or future cash flow issues.
Though typically a financial metric, it has use as a company-wide measuring stick.

How is it used across departments?
FINANCE:

Strong CCC means there is cash to fuel growth.

Without it, growth must be financed.

It's risky - with larger receivables, comes larger payables.

When bills are due & there's no cash...

You know what happens.
Long A/R cycles are interest free loans to customers that bear opportunity cost.

Make cash collection a priority & finance teams can analyze new opportunities instead of restructuring debt.
OPERATIONS:

Collecting cash quickly is a function of operational efficiency.

Product/service, sales, A/R, & A/P teams must be working together with accurate and timely information.

This is easier said than done.

Low CCC = effective management.
RELATIONSHIP MANAGEMENT:

Getting great payment terms from customers & vendors requires quality relationship management.

Consistency, reliability, & being liked will dramatically improve the cash position.

Treat them well and be clear with expectations.
So, how important is CCC?

Extremely.

Harvard Business Review credits a negative CCC for Amazon's survival of Dot Com bust.

By collecting before spending, sustainable growth was possible.

Competition was financing product purchases, hoping to collect.

A viscous cycle.
How can you implement in your small business?

With my SEO company, Bright Line Media, I collect cash 21 days before I owe vendors.

It wasn't always this way.

I once paid a vendor 2X before getting paid and it prompted change.

Here's what I did:
I called customers and switched:

1. Payment date to the 5th
2. Must pay via Stripe
3. NO physical checks

Receivables, solved.
Next, I called my vendors:

I negotiated better payment terms by always paying on time & promising to pay via ACH (no fees).

Payment Date 26th.

21 Days from collection to payment.

New sales enter into this cycle & never incur an out of pocket cost.
Cash Conversion or Service-to-Cash Cycles change the fortunes of a business quickly.

Quick Summary:

1. Don't overproduce / hire
2. Collect cash quickly
3. Set consistent payable cadence
4. Cross department communication

Build a healthy company - on the cash you're owed!
Lastly, I recommend having an accountant or CFO do the math - accuracy is critical.
If you found this helpful, please RT the 1st tweet so others can find it.

Follow me @barrettjoneill for more on business, growth, & SEO.

More from Barrett O'Neill

Barrett O'Neill
Barrett O'Neill
@barrettjoneill
Tinder used this phenomenon to turn college hookups into $1.4B in sales:

Network Effects

What they are & how to use them: 🧵

In 2012 there was a need for an easy-to-use "dating" app for millennials.

The large players (Match, eHarmony, etc.) had ignored the college market.

But 18-24 year olds were craving a mobile-first option that didn't require an annoying questionnaire to get started.

Tinder created the solution that the market wanted but faced a challenge.

Early users.

No one would use a dating app that had few eligible candidates on the platform.

Traction is an issue that every platform business must overcome.

It's a classic "chicken or egg" problem.

But if the problem is solved it unlocks a powerful law of growth called network effects:

It's when the utility of the platform becomes greater with each new user.

As the user base gets larger each user receives additional benefit (more dating options) leading to rapid growth.

Conventional wisdom would suggest: target ads at college students and watch the registrations roll in.

But tapping a network effect is much more nuanced than that.

There needs to be:

A high degree of trust, common interests, and incentive to tell others about the platform.
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Barrett O'Neill
Barrett O'Neill
@barrettjoneill
11 pricing strategies so effective customers will line up to pay you:

Price Anchoring:

Anchoring is a psychological bias that overemphasizes the first piece of information received.

Here's how its used:

Sellers show prospects a high number and then follow it up with a lower price to increase perceived value.

More value = more sales


Decoy Pricing:

It's common to see pricing options that comes in three's.

One of the options is a "decoy" or a fake designed to increase sales of a cheaper plan.

For example:

The presence of the £1680 plan increases the sales of the £560 because its relatively cheaper.


Freemium Pricing:

Companies allow partial use of their products in exchange for creating an account.

Typically, top features are restricted or the user cannot have their experience ad free.

Free versions are effective at "warming up" prospects to become paid users.


Price Reframing:

Divide the monthly or annual prices by the number of days in that period to show the daily price, or smallest number possible.

Also, compare pricing to everyday objects like a cup of coffee to make bigger costs more palatable.

Lower number = less friction.
STARTUP
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Barrett O'Neill
Barrett O'Neill
@barrettjoneill
One company increased sales 262.5% with this pricing strategy:

The Decoy Effect.

What it is & how to use it: 🧵

Companies like AMC, Starbucks, & "The Economist" use psychology to maximize profit.

They leverage behavioral science to shift buyer preferences from the buyers needs to their highest margin products.

Here's how it works ⬇️ ⬇️ ⬇️

The human mind is exceptional at comparing two items.

But, the presence of a 3rd option causes a short circuit.

With a 3rd option present, the mind begins comparing options against one another.

This shifts focus from fulfilling ones needs to finding the best value.

Companies include "decoy" options to highlight the value of their target (usually highest margin) options.

There is little to no intent to actually sell the decoy.

So, what does a decoy look like?

It's similar, but slightly less appealing than the target.

Movie theatre popcorn is a classic example.

The large size is the target option - it's the most expensive & highest margin.

Without the medium, movie-goers are making a decision based on how much they want to eat.

But, add the decoy (medium)...
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Barrett O'Neill
Barrett O'Neill
@barrettjoneill
I've created $10,000,000 in traffic value:

Here's everything you need for a *simple* SEO strategy that works: 🧵

The secret for SEO success is not advanced strategies & cutting edge ideas.

It's a simple plan paired with consistent execution.

To succeed, view SEO through the proper lens -- building equity into online presence.

It takes time & effort.

The 5-Step Simple SEO Strategy:

1. Keyword Research:

Identify the search terms that have a combination of search volume & intent.

Intent = why is this being searched?


Types of Keyword Intent:

Information: Shoes
Brand: Nike Shoes
Purchase: Best basketball shoes

Mix in all 3 -- to drive traffic & conversions.

The further down the funnel, the less volume, but higher purchasing intent.

2. On Page SEO:

Insert keywords into the proper places, so search engines understand site topic and target keywords.

- Page Titles
- Meta Descriptions
- Alt Text
- Content Structure (H1/H2/H3)

These are signals that algorithms use as information to influence rankings.
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Barrett O'Neill
Barrett O'Neill
@barrettjoneill
We've been told having a job is safer than entrepreneurship.

But that's a lie.

10 reasons to bet on yourself:

More value capture:

As an employee or an owner, income is a function of value creation.

The only difference?

Some (or most) of an employee's value flows upstream to ownership.

Owners capture ALL of the value they create, and even more from their team's output.

Income diversification:

Entrepreneurs spread income across several accounts/business units, acting as insurance against total income loss.

Employees have a single income source AND are exposed to factors out of their control:

- economy
- corporate pivots
- budgets

Low downside:

In the past you needed an investment or debt to start a business.

In 2022 you need an internet connection, creativity, and consistent effort.

EX: you can start a 7-figure agency business (65%+ margins) for a few hundred dollars per month in software fees.

Time freedom:

Successful entrepreneurs use leverage (labor, capital, technology, audience) to disassociate their time with income.

Employees are required to be present in-person or on calls/video, making it hard to use leverage to get more done with less time.
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5 YouTube videos that will make you a better investor:

1/ How to read an income

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@unseenvalue #Screened few businesses trading at single digit MCap/CFO.


I made a mistake in above list.
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Alex Banks
Alex Banks
@thealexbanks
Accounting is the language of business.

10 threads that will teach you more about accounting than any accounting degree:

1/ Who: @10kdiver

What: Understand the balance


2/ Who: @SoulFairy3

What: Income statement


3/ Who: @BrianFeroldi

What: Income statement


4/ Who: @AliTheCFO

What: Profit vs cash
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Brian Withers
Brian Withers
@StocksWithBrian
Amateurs focus on Profits.

Professionals focus on Cash Flow.

Cash Flow Statement 101: 🧵


The cash flow statement shows cash moving in and out of a company over specific time periods.

Since it's Jan right now, the two most common will be:

■ 3 Quarters
■ 1 Year

Below, we can see CrowdStrike's cash flow over the past 9 months. The time frame is at the top $CRWD


There are three key parts to a cash flow statement:

1️⃣ Operating Activities (Running the business)
2️⃣ Investing Activities (Investing in the business)
3️⃣ Financing Activities (Paying for the business)

There's freedom in how it gets reported, but this is the basic structure


Let's specifically look at operating activities

The top line-item is NET INCOME.

You'd think this would represent the money a company puts in the bank at the end of the year.

But that's NOT THE CASE


Net Income backs out NON-CASH charges. The cash flow statement adds them back in.

Including:

■ Depreciation: Value of asset decreasing
■ Amortization: Expensing pre-paid cost
■ Stock-Based Compensation: Paying employees w/ equity
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Mungerisms \u2022 Charlie Munger Bot
Mungerisms • Charlie M...
@CharlieBot
In those days, working capital belonged to the shareholders.

If the employees were no longer useful, you just sacked them all, took the working capital, and stuck it in the owners' pockets.

That was the way capitalism worked

Nowadays, of course, the accounting is not realistic
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Shivaji, Baji Prabhu, and around 600 of their best troops, hardened mountaineers of the Maval region, would dash through the Adilshahis force at night.

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(THREAD) The Whitaker scandal is deepening, as it becomes clear that Sessions' Russia recusal was a coordinated sham and his firing an act of obstruction—and that his replacement is a White House plant inside the Mueller probe. I hope you'll retweet and read on for more details.


1/ From 2014-17 Whitaker worked for World Patent Marketing—which during his tenure defrauded consumers out of $26 million and was successfully prosecuted by the feds. His involvement in the scam confirmed he had loose morals and that the feds would never want to employ him again.

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If u are looking to enter a scrip just before the breakout
what would u look for?
How would u identify scrips just before breakout?

Here are a few pointers
Carefully understand the them and use at ur own discretion
(All comments r compiled from a question i posed)

1/23

Price is testing the same resistance repeatedly since long.
But now in recent times it's forming multiple candles near the same resistance with low volume.
Observe it and see for opposite move.
As soon as u get a positive candle, get in to it.

2/23

1. Volume buildup (vol > when resistance point created) along with, increase in OI, increase in delivery % on HTF
2. On LTF, price stalling around breakout area for at least 1-2hr.
3. No major events.

3/23

Stock reaching breakout LVL with HL-HH
Contraction of price and volume near it especially near 20 days ma.
If there is any breach of the latest HL it should be followed by a bullish candle with good volume.
Left side of the chart has a rally with a very steep slope of ma.

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Number of wide range green bars with high volumes.
If stock is at its ATH then it adds more conviction bcz there wont b supply after that point

Consolidation below the resistance, volume of the candles & strong bullish candle closing at near highs just below the resistance

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Following @BAUDEGS I have experienced hateful and propagandist tweets time after time. I have been shocked that an academic community would be so reckless with their publications. So I did some research.
The question is:
Is this an official account for Bahcesehir Uni (Bau)?


Bahcesehir Uni, BAU has an official website https://t.co/ztzX6uj34V which links to their social media, leading to their Twitter account @Bahcesehir

BAU’s official Twitter account


BAU has many departments, which all have separate accounts. Nowhere among them did I find @BAUDEGS
@BAUOrganization @ApplyBAU @adayBAU @BAUAlumniCenter @bahcesehirfbe @baufens @CyprusBau @bauiisbf @bauglobal @bahcesehirebe @BAUintBatumi @BAUiletisim @BAUSaglik @bauebf @TIPBAU

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Anu Satheesh
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@AnuSatheesh5
Puthucode Annapoorneshwari Temple,
Palakkad, Kerala 🚩
#keralatemples
अन्नपूर्णे सदापूर्णे शङ्करप्राणवल्लभे 
ज्ञानवैराग्यसिद्ध्यर्थं भिक्षां देहि च पार्वति 

Temple is also called Puthukode Bhaghavathy Kshetram
Parasurama did Prathishta of Devi here. Temple is one amoung 👇


108 Durga temples
Navarathri festival is celebrated in a grant manner here. Annadanam is done daily on these days. The Idichu pizhinja payasam/ Chathachatayam is the main nivedyam in Annapoorneswari temple during Navarathri.
In the mornings, Devi Mahatmyam and Sundarakandam are


recited here daily.
Sri Godavarma Raja gifted lots of rice fields for the maintenance of the temple.
Annapoorneshwari holds Shanku and Chakra in her hands. Puthucode Annapoorneswari Temple is managed by the Naduvil Madom Devaswom.
🙏🕉🙏
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