Swanand V. Samudra., Investment Consultant
When we meet Businessmen in our routine net working meetings for discussions on economic problems faced by them from time to time, we realize that many businessmen are not aware of the significance of cash flow in their financial planning.
To run a successful business every entrepreneur should know his future expenses and receivables .He should have a fair idea of funds to be received for goods sold or the services rendered. At any time contingent arrangement should be ready, if incoming funds are not received on the due date.
He should have an alternate source of income ready for payment of staff salary and other routine expenditure especially during slow down, All expenditure to be incurred should be anticipated in advance and provisioned for.
What helps in all such situations is a planning of alternative investment and source of income. If you analyses balance sheets of professional and very large companies, you will find huge sums accumulated in the column other income account, which in times of exigencies or slow down can take care of the normal dividend to be paid to shareholders to keep the investor’s faith
In slow down we can get passive Income from Rent, Interest, Dividends
new option like net metering with solar/wind energy Projects etc are also available off late.
Business has to be focused on Debt free position for long term sustainability. Entrepreneur needs to consultant Chartered accountant or a company secretary to regularly update them and align business strategy to achieve desired debt free results.
He also needs to consult a good financial advisor for understanding Opportunities available in Stock Market, commodity market, Bond market etc. Accordingly he should plan and invest in this asset with his guidelines for an alternate continuous Cash Flow.
FAILURE IS A COMMA, NOT A FULL STOP
So stay the course, Ups and Downs are part of Life & Business .But staying the course is about planning preparation & agility in difficult times,
It is about overcoming crisis of confidence, and pulling on to reach your goals.
Cut your losses if you see something is really not working In fact that’s a part of your strategy of staying the course for long haul.
Success comes thorough preparation and positioning in the early stages; absolute commitment to an idea and laser focus on your goals; the ability to build credibility for you and your team; and confidence that comes from acting with determination and with a clear, uncluttered mind.
Stay the course and overcome the slowdown.
