Date: 2004/08/08 Source: http://www.91px.com author Zhou Lingfeng
When I arrived in the book city, Xiao to the street bookstand, "Fu Dad, Poor Dad" book is popular in the country with its purple cover, is said that one of the authors of this book Robert Yichi also comes to China. This book teaches tens of millions of people to reveal the secrets of the rich; overthrow the "high-pay = get rich" wealth law; advocate stable "cash flow" to protect your life; teach you to truly divide assets With the liability, calmly face the tide of personal finance. The poor father earns money by frugal, and Dad rely on investment gathering wealth; how to make money using business? I believe that as a modern person living in realities, I must learn to wealth management and master the necessary financial knowledge. The author of this book is nothing more than how to build a valuable "wealth concept" through teaching people, and to guide life with this concept, making life more valuable. So, does the company have the same situation? Of course there is. There are also "rich enterprises and poor companies" in the business community. They have a poor division, which is the difference between their financial management concepts, or further, from their business philosophy and way. As a profitable organization, the organization exists in the "market" market. Its ultimate goal is to increase the value of the company, which is reflected in the value of shareholders, while balancing customers or consumers, employees in the enterprise, The relationship between the stakeholders of the company. Pursuing corporate value, that is, "how to operate can maximize corporate value?", Answering this question is a lot of academic achievements. But "Is it considered successful companies really practiced academic achievements of these enterprises financial theory?" And "Is there a low operating company from the success of the company's financial theory?" I am in consultation. Or companies in different industries of different business philosophy or corporate culture, listened to the company's experience in the company's "old" or management. It is not difficult to find such an empirical conclusion: enterprise operations in accordance with the theoretical results of enterprise finance, is a shortcut of success. This kind of business philosophy and way can be described as "rich father-in-law". So what should the corporate value of corporate value? Should be free cash flow. Only free cash flow is the only indicator of the entry of the company. Free cash flow represents the situation of cash investment and recycling, and accounting profits can't hold the actual situation of business operations, often fail. For this reason, the United States's Calorland Norton invented and using the "Balanced Scorecard" to evaluate the business status of the company from the level of corporate strategy. More importantly, only free "cash flow" can play a key evaluation index in business management, play the tool role of overall management. The creation of corporate value is to pay attention to the operation of cash flow. An increase is for purposes. To achieve successful value management, naturally begins with the appropriate business sector. Then, how to choose the business area from the perspective of corporate value, first of all, the most important thing is to choose high growth performance. Because long-term cash flows obtained from this business have the highest growth rate. Second, "stability" should be considered. The so-called "stability" is high, in other words, it is a business of risk. If the business is small, the lowest necessary income of the capital provider investing in the business is small; that is, the capital cost means that the present value of free cash flow from the business will be large, and the corporate value will be high. The secret of "invisible champion" or industry giants in various industries in the world is that only monopolism or may become a monopoly. There is absolutely not the second place below the industry, which is also to improve the stability of the business, reduce capital costs, and ultimately improve the value of free cash flow from this business.
