Published by: Julia
Understanding how corporate finance works is essential for any business owner. It is that enables them to secure the funds they need, plan ahead and manage cashflow. This Wharton Business School Coursera review covers all of this, and more, in detail.
Why understanding business finances is crucial to success
According to the U.S Bank, 82% of small firms go bust because of cash management issues. So, this Coursera corporate finance course is a must.
People go into business to make money. often, they are successful. At least at first. They build up a few customers and the money starts to come in. At that point, they have a profitable business. So, understandably, feel that they are successful.
Unfortunately, once they start to grow fast, things go wrong. At that point, a lot of firms run into cash flow problems and end up folding instead of growing as they should.
It is important to understand that this course is not about business accounting. If you want to know how to set up processes that enable you to keep track of the cash flowing in and out of your business, it is the Introduction to Business Finances Coursera course you need. The name of the two courses are similar, but they cover two related but very different subjects.
This course is all about making sure that your business has enough cash to stay in the red, while still being able to grow and thrive. It teaches you how to manage the fact that cash rarely flows through a company at a steady rate.
As well as understanding how corporate finances work. Knowledge that will ensure that you can make the most of the cash that is available to you and know how to get more when you need it.
The course covers the following subjects;
The Time Value of Money
This is a vital concept for anyone involved in business to understand. When you use it properly it has earning capacity, which means the money you have now is worth more than an identical sum in the future is.
How interest rates work
It is not enough to simply understand what compound interest is and how it works. Understanding how the banks set them and how they decide who gets which rate can be helpful. It enables you to arrange your finances to secure the lower interest rates and increase your chances of securing the loans you need.
The impact that inflation has on businesses and how to mitigate it
Understanding how inflation works will enable you to recognize when and how to invest and manage your assets. You need to know how to track it and read the impact it is likely to have on your market. If you know that your prices are going to have to go up to the point where imported products are going to be considerably cheaper, you can potentially diversify before you lose your market. Or improve productivity.
Discounted cash flow analysis
The subject of discount cash flow analysis is covered using a case study that you follow along with. It demonstrates how to value claims, manage cash flow, make sound financial decisions and track compound interest. The lessons learnt in this class can also be applied to your personal finance.
What free cash flow is and how it helps you
Understanding free cash flow and how to apply it to a set of forecast drivers enable you to work out the potential return you can give investors. If you are looking for a cash injection this can be important. During the course, you will also learn how to analyze your free cash flow to spot potential problems early.
What other students thought of the course
The reviews for this course are mixed. Most students found the professor to be very good and supportive. But, some felt the pace was too slow. However, that said, others felt things moved too fast, in particular in the last two modules. Mixed reviews don´t necessarily mean a bad course. Usually, it is due to the fact that we all have different expectations.
Want to learn about accounting processes? – try this course
If you are looking for a more basic business accounting course, take a look a the Introduction to Financial Accounting Coursera course. I review it here. It covers things like setting up proper accounting procedures, interpreting your balance sheet and other basic reports. As well as managing cash flow.
Who is this course for?
This is an excellent course for any business owner and of course, it is ideal for anyone who is studying for a business degree. The subjects covered are quite complex. But everything is presented in a clear and concise way, which makes it accessible to all.