In this video about the basics of the financial structure of a company, Mike Koedinger talks about his personal experience on the topic:
- when to consider it
- how to come to it
- is it compulsory
Mike Koedinger is the founder of Maison Moderne, the leading independent media company in Luxembourg, since 1994. Find him on maisonmoderne.com.
Subtitles are in english and french.
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When to consider it?
I’ve always taken interest in the financial and accounting aspect of the company although it doesn’t come naturally to me, I’m more in creative, journalism and publishing. I did however realize it was important to have a handle on it, at least at a non-expert level. And I’ve always taken interest in how to structure a company and a group, perhaps the caution of an entrepreneur. So you ask questions! When you don’t know, you ask questions and when you’re young, people answer with goodwill.
How to come to it?
It came about naturally. Over the past 10 years, we experienced a lot of growth completely out of proportion with the first 15 years. So at first it wasn’t as necessary, revenues were smaller. I think our initial ambition was to break even, or make a small profit. Then you carry out projects to grow your revenues, you look more into margins, you analyze the different services and operations in greater detail… It’s more about analysis.
Is it compulsory?
But you can’t forget, no matter if you have a staff of 20 or 115 like us, that you’re responsible for the incomes of 115 households. 115 families are expecting their next salary and you can’t toy around with that. So there comes a time when you have to manage your treasury responsibly.