Enterprise Rich, Enterprise Poor – Synopsis
27 Jul, by
SYNOPSIS
Enterprise Rich, Enterprise Poor
The corporate finance books that focus on developing and enabling Cashflow Sustainability and Corporate Growth (the 2 key ingredients for being “Enterprise Rich”) are:
- The. Essence of Corporate Cashflow Sustainability (launched in June 2022)
Current accounting & finance practice can only project cashflows over 3 or 5 years based on realistic and defensible assumptions. But whether there are cashflows beyond projection period is largely unknown.
We need cashflows to prevail into the future ie cashflow sustainability, to support continuing corporate growth.
This book provides the new concepts, principles, tools and framework to enable cashflow sustainability!
- Corporate Growth & Cashflow Sustainability (launched in January 2024)
With cashflow sustainability as the base, strategic planning can build on it to enhance corporate growth.
Three key questions for corporate growth are:
- Where are we now?
- Where do we want to go?
- Can we get there ?
These form the Corporate Planning Framework, which this book lays out with enlightening details on how corporate growth is engendered at each stage.
- Enterprise Rich, Enterprise Poor
– A Triangulation of the Corporate Enterprise (launched in August 2025)
Recognizing that while the Board and CEO are responsible for corporate growth of the groups of companies under their charge, they need to delegate the task of developing the frameworks for cashflow sustainability and corporate planning to the finance leader and senior management team.
This book provides the step-by-step approach in developing these frameworks with such clarity that every professional can understand, appreciate and implement with much ease.
In summary, the Cashflow Sustainability Framework and the Corporate Planning Framework are the back-end systems. The front-end indicators are:
- For Cashflow Sustainability:
– Trend P&L PAT and Trend Cash PAT feeding each other
- For Corporate Growth:
– Trend sales growth
– Trend earnings growth.
– Trend total assets growth and
ultimately trend equity value growth.
These back-end frameworks and front-end indicators must work together for the company to be sustainably “Enterprise Rich” !
