Because business generally mom against risk factors, such as introducing new products not yet launched, management teams should find ways to protect its cash flow. Research suggests, in respect to new project development, that by using certain identifying techniques and analyses, that ‘financial managers need to look behind the forecasts to try to understand what makes the project tick and what could go wrong with it (Breaker, Myers, & Marcus, 2012)”.
As the SCOFF of struggling company with a newly launched, potentially stable product, grouped with a phenomenal management team, it is fundamental insider any immediate means Of raising capital-?no matter if, the current cash flow is positive. Knowledgeable that production is in work with a two year release time, it is obvious that funds will soon deplete. In an effort to retain happy stakeholders, salvage the company from demise, and prosper the new product, management must find ways to protect its current cash flow.
Many times companies attempt to raise capital by reducing costs; the can be a positive move as long as they do not slack on quality. Researcher Kaiser and Young, suggest that companies use their ideal six-stage strategy lull funds from its working capital by way of the balance sheet (Agreeable, 2009): 1. Don’t manage the bottom line 2. Don’t reward your staff for growth alone 3. Make sure customer will pay for quality 4. De-couple receivables from payable 5. Beware of bench-marking 6.
Beware of current and quick ratios “Cash is certainly important during these times, but it is even more important to make long-run decisions that generate earnings or profits (Bargeman & Blowhole, 2009)”. Importantly, there are always risks in busing and uncertainty in the success of product development. To keep consume and stakeholders interested, perhaps the SCOFF can pre-sell the new produce with a favorable discount. While discounting may not create large cash fool it will attract repeat customers.
The alternative to discounting would be etc bundle current successful products with those less profitable in an attempt minimize surplus of the latter. Last, but more imperative, is for Scoffs and their teams to realize that ironically cash is not king; Jesus is King-?the king of all kings. This does no suggest that organizations should not thrive and maintain a positive cash flow. God wishes for all to be prosperous and faithful to His covenant. The.
Scripture reveals-?in I Timothy 6:10-12, “For the love of money is a root of kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many grief’s. But you, man of God, flee from this, and pursue righteousness, godliness, faith, love, endurance and gentleness. F-eight the good fight of the faith. Take hold of the eternal life t which you were called when you made your good confession in the presser of many witnesses (Women’s Devotional Bible 2, NIB, 1995)”.