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Wednesday, May 9, 2018

3 smart strategies to solve your cash issues once and for all [Part 1]

Play smart, play to make your cash work for you, cash, cash management, www.davidibrahim.net, smart, play smart, Touché!, Mayotte, Doulah Management Expertise, Expertise, Expert, Consulting, Consultant, 3 smart strategies to solve your cash issues once and for all
Play smart, play to make your cash work for you.


"Turnover is Vanity, Profit is Sanity but Cash is King!" (Tim HAN, Success Insider) When talking about how well a company is doing, most of the time, people give out the turnover. The fact of the matter is that this is not the first reason leading companies to failure. Did you know that most of the time, a company goes under because of a failure in managing its Cash...? Let me introduce you to 3 smart strategies enabling you to keep your company running as well as having a healthy bank account.


1. Anticipate your future investments

3 smart strategies to solve your cash issues once and for all, Your investments are to be anticipated, investments, anticipate, anticipation, www.davidibrahim.net, Doulah Management Expertise, Expertise, Expert, Consulting, Consultant, Mayotte
Your investments are to be anticipated


You know the old saying: "If you fail to plan, you are planning to fail." (Benjamin FRANKLIN) 

If you do not want to spend most of your time putting out a fire, you have got to try and anticipate the money coming out of your bank account. You should at least have an idea of what will be your spendings for the upcoming year. Of course, the more ancient your company is, the easier it will be to do so. In any case, any information (from your providers and clients, your locality, your country or even the global markets) you can put your hands on is to be used to be as accurate as possible. In doing that task, you will surely identify issues that might occur down the road. Ahead of time, it will be possible to prioritize meaning to:
  • Cut back on a few spendings
  • Use your money more wisely through reallocation
  • Adjust your goals for the upcoming year.

2. Make sure you have the required financial resources

What are my financial resources?, financial, resources, Cash, Cash management, financial resources, Mayotte, www.davidibrahim.net, Doulah Management Expertise, Expertise, Expert, Consulting, Consultant, 3 smart strategies to solve your cash issues once and for all
What are my financial resources?


At this point, you need to work on raising the funds necessary for the upcoming year. You should at least have enough money to pay for the spendings you have anticipated. If you have a hard time matching your spendings with your resources, you will only have 2 possibilities:
  1. Reflect on new ways to get additional funds
  2. Cut back some more on your spendings.
At the end of the day, the main point is not to amass a huge amount of money so that you can pay for everything. Rather, you should try and optimize your use of what you do have on your hands. Without getting into too much details when it comes to Cash Management, the 2 main items you should focus on are:
  1. How long does it take to get paid by my customers?
  2. What is my profit margin for the year that is ahead of me?

3. Maintain a balance between your investments and your financial means 

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It's all about maintaining balance


It will not come to you as a surprise that you should at least have a perfect match between your spendings and your resources. As you can see in the table here below, having a mismatch will get you into unfortunate situations :


Resources Versus Spendings: What should you expect?, resources, spendings, Mayotte, www.davidibrahim.net, Doulah Management Expertise, Expertise, Expert, Consulting, Consultant, Touché!, 3 smart strategies to solve your cash issues once and for all
Resources Versus Spendings: What should you expect?


Last but not least, you should pay attention to having coherence between the term of your financing and your investments. Any long term investment should be financed by long term means whereas any short term spending should be paid for by short term funds. This will drastically reduce your default risk.

I strongly advise you to enroll to my new upcoming business course "Roadmap to Cash Management efficiency". If you want to get a FREE access to the very 1st session, let me know it by sending me an email at david.ibhm@gmail.com. Please find here below my selected book for you to go further on the topic. 


International Cash Management, www.davidibrahim.net, Touché!, Doulah Management Expertise, Expertise, Consulting, Consultant, 3 smart strategies to solve your cash issues once and for all, cash issues, solve cash issues, Mayotte
International Cash Management
(Willem van Alphen, Carlo R. W. De Meijer, Steve Everett)



Written by David IBRAHIM.
Mayotte

1 comment:

  1. If you have any question and/or comment, feel free to leave it to me down below.

    ReplyDelete