note: hunting cloud in September 2014, used car online auction platform done optimal letter take announced a new round of about $260 million in financing. Recently, chief financial officer, she worked as a true oral CFO position, he believes, a good CFO should have two duties: internally, through the establishment of data control system, do service for operating decisions, complete control of the financial level sublimation; Abroad, to become the biggest sales, through financial sold the company to capital, for more and more investment.
oral: truly optimal letter’s chief financial officer,
sort: more than one entrepreneur press
financial development should also be planning company
financial today is more than the concept of responsible for three pieces of paper. company, especially the Internet, pure financial data doesn’t make sense, the Internet company not manufacturing enterprise, not so long production chain, analysis of a lot of data.
all the best and I believe make financial personnel have repeatedly stressed that to forward inference on the financial statements, see what front operation data and action in the change, after the financial statements. do financial statements must be extended, the line is write the company’s account, at the same time the company’s tax right. The second line is FPMA, do financial planning and analysis, to a line, controls and services.
in the beginning, I was holding the financial personnel only need to deal with the idea of financial statements, and don’t care about on other business. My hair because of this thing is optimal letter small chairman Dai Kun strike table for the first time with me.
when Dai Kun let me something about the situation of the company recently, asked some more in-depth business data, I didn’t answer. He said very not happy, why you don’t even know these. But at that time, I feel very normal, I am doing financial, why want to understand the business data, business seminars I didn’t attend at a time, how can you know. When Dai Kun made a big fire, to say you don’t even do the CFO.
this strike table events, caused me very deep thinking, I think Dai Kun said is very right. CFO as decision-making, management, do not understand the company’s business, how to stand in the Angle of the company’s operating to make financial decisions, especially the financial management system development is so important to the company, is more in need of financial department managers include every financial personnel positioning itself on the planners for the development of the company.
this point is very liberal, every time meeting and decision, will let all people including the personnel and administrative participation, all management need to know the trend and problems of the company, this time you can set a real management system can be realized. he will let me from the beginning to enter all of the business discussion, rather than become a independent financial standing at the door. The boss is a big challenge to many traditional businesses, but today is very important.
a CEO often stitching to make a decision, the company is easy to die; A CFO stitching to make a decision, he is easy to die. to participate in the company’s business, locate in planners, finance can rationally read data before and after. When the CEO to stitching, financial CEO is rationally through the analysis of the digital stitching.
don’t let the front high death himself
financial internal mainly two functions, first is controlled, the second is the service, two functions to parallel relationship, there is no difference between what does light or heavy.
that controls the financial data analysis result feedback to the front, let them know the actual status of the operation now. front easy because today sell-through rate is good, the 4 s shop level is quite good, everybody is very high, they judge it is good condition. The financial need to do is to see clearly number, put the results in front of them, they found the problem to find feel, because all the front end of the performance will be reflected in the report.
control specific to a line of words, is to set KPI index, personnel in performing the goal of turning it into a line. you easy to think to set KPI is a very simple or very basic thing, actually it can rise to the strategic level.
best letter before setting of KPI, for example, that 80% of the time a line of workers in the new customer development. In the actual operation level, employees will try to turn old customers into new customers, to change a name change the identity is very normal. But back to the strategic level, you will need to think about the company?
the customer a month ten volumes, optimal take the three of them got the first letter, so how to get to the next? Is the first group of customers are from 3 to 10 units, or stay at three levels, all people are developed. two direction is completely different, KPI also need to service the strategy, ensure fulfillment of it.
but to internal controls and services, simply by traditional financial analysis is difficult to do, should do a good job in three levels of data control, financial data, business plans and analysis data analysis and industry and competitor analysis. a really good financial planning analysis system, and also should be determined by the financial, operational, and market and strategy of three parts.
financial planning and analysis of data, is at the report level forward inference, which activities data will directly affect the financial statements, in terms of optimal letter clap, conversion rates, bicycle price can directly affect the income. Is indirect but there are some factors, such as buyers to participate in the activity, time and price offer hand attention, these things will affect the front line operation state, which requires a team to do operation data analysis, the boundary between the two, of course, not so clear, sometimes financial analysis, operations will analyze some partial financial things.
the data analysis of the competitors in today is also very important. Although for the management, to set the next year or the next three to five years plan is used only when such, but it must be someone to help you stare at the behind each directly or today think nothing of competitors’ data, because they may one day becomes you turned around, and even turned in any position to replace you.
when doing data analysis, optimal letter of the whole data analysis experience is cut into three degrees – size, dimensions and frequency. Granularity refers to disassemble to what position do you want to the whole business, the more fine. best letter will initially set up large granularity, in the city. To all the regional bosses of requirement is that a 10% drop in monthly bicycle subsidies. This 10% comes from the regional director for smaller granularity and dismantling, apart from the perspective of customers, points base plate and the new and old customers, the development of new customers and increment of the market, all apart to the finest level, to do well each particle unit.
then step into the second dimension. what are you going to do dimension of integration. Today want to see the point of view, it bring out this part of the data integration, establishes a set of statements, eventually establish is the proportion of the data analysis, otherwise you don’t know you say what is the report of . Real concerns the operational data of enterprise survival, must carry out in-depth analysis integration. The third is a frequency, there is something that is weekly, or monthly, different data are not the same.
I and Dai Kun cooperation is , on the job through data I tell him now the actual circumstances of the business, and after he get feedback, do integration in a line, driving the growth of the enterprise. for enterprise management, stitching, strategic level is must sometimes, but not at the tactical level, must be thinking of the enterprise is very clear, find the key points, and then execute them.
number is not feasible to impress smart investors
in addition to internal control services, financial foreign services should also be good board and the capital market. CEO finished direction and strategy, but the board of directors and the capital market from the Angle of the CFO, still hope to know what is the situation, company financial data and the CEO’s business logic is consistent or not.
in the level of the board of directors, the you need is the state of the CEO and CFO is absolutely independent completely. Dai Kun now and I formed a good consensus, it from the operational and strategic level, cognitive state of the development of the whole company, I was standing in a complete financial management control and data level to view state of the company.
in the strategic level, the directors will communicate with the CEO, but after the communication, will have to find the CFO, asked whether that is. CEO gave the general direction, but come back to the board of directors or want to learn about the company from the perspective of the CFO what situation. financing, CEO finished his story, need to show the CFO data to verify whether consistent.
today, all of the financing, it seems to me that have been listed and is very close. capital market investors, especially the top is absolutely smart and savvy investors , but they, after all, much depends on the industry, enterprise, vertical degree not so deep. So the cognitive understanding of their good or bad, an enterprise is in two dimensions, the first company to see if there is a clear business logic, can from beginning to end, from the market to operate, the business logic to figure out what; Second enterprise is matching all the business logic, digital is feasible or not.
for example, the structure of the budget unit apart, now budget is absolutely not just earn much money, how much money. All the business logic are marked out. You say today have volume, volume come from? Is using your hair rate by your sell-through rate get volume, then your hair shoot rate where you come from?
corresponding to each customer unit, what’s the matter with your customer unit are analyzed. A customer how many car one month, how much a month now, can do, and how many new customers ready to prepare for next month’s growth? actually behind all digital statements, where is exploring how is your business, find didn’t find your business growth. All of which have a calculation, the business logic is right, prove you truly can convince the board of directors and the capital market .
in addition to the communication process and investors, can also help financial understanding business more clearly. Finance their enterprise is a point of view, but investors and potential investors will according to different industries, different companies, they think of and the company of different time periods, ask different questions to you, let you to answer you now state, this is a very big for financial help.
like letter on the second board, a director ask me, do match between customers? I said we don’t have done such studies, it is the past, until today, I found that this is a very important point. when you do platform, how to in the process of burning money, don’t burn point can be found, even find don’t burn condition profit, really is a business matching, matching for the client. for a start-up, not to say that an enterprise when it really should be big enough to make FPMA.
from $30 million to $260 million, optimal letter taken constantly refresh record, second-hand car trading industry financing in the behind, the CFO who really want to say, for startups, finance is very important, otherwise easy to themselves in the front high death!