Ups and downs are part of the business cycle, there are many distractions while achieving the goal. But while achieving business goals say sales figures, increase in capacity, promotions etc, one should not lose focus on cash. If there is no cash then one is up against the wall. While achieving some goals one day management may realize that there is no cash flow or cash is stuck in credit sales. In such cases management will end up raising money at wrong time or will have to walk away from the business. Keeping positive cash flows is very important during crisis as well. If there is down turn in economy then nothing is worth than having positive cash flow.
If there is recession then the product which brings in customers good value for money will only survive. Its better to have products which are quality and able to satisfy customers' needs. Along with this if cash flows are positive and management is able to control inventory and other costs then surviving in recession or any bad time of business becomes more easy.
While doing business, never put all money in export oriented units, it exposes the investments to huge global risks. During global recessions such units are the first one to get affected. To keep cash flow positive, there should be good balance between exports and domestic market to manage the risk. Many times to get more cash or income management keep exposing the risk to foreign markets, forgetting potentials of domestic market. Keeping track of both markets is a good strategy to keep positive cash flow.
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