Working Capital Management

What

A module of New Venture Finance courses. Working capital is the lifeblood of any business. Working capital management is particularly important for the early-stage developing new venture. Small imbalances between cash inflows and outflows can quickly become magnified as a business grows and can lead to the unintended demise of an otherwise promising new venture. That's why you must understand the concepts of working capital and levers you need to control in the domain of working capital management. 

Learning Objectives

When you have completed this module, you should be able to:

• Understand the general concept of working capital management.

• Describe and differentiate among the different categories of current assets.

• Explain how accounts receivable are analyzed and managed.

• Understand aspects of how to manage inventory effectively.

• Explain how to manage current liabilities. 

• Incorporate working capital forecasts into pro forma financials

• Determine working capital needs for future new venture growth plans

• Understand the need to plan working capital resources in congruity with capital raising needs and cycles.

Instructions

• Watch the assigned videos and presentations; 

• Read the assigned readings; 

• Complete the practice quiz or other assigned practice activity

• Complete the assessment;

• Complete the "Mark as Complete" checklist.

Module Materials: Read and View

Practice

Use this link if the practice quiz below does not display properly

Mark as Complete

Resources

For students who want to deep dive on working capital management

OR Notes on Inventory Control - Classroom lecture-style notes with diagrams and common situations