Bringing Value to The Table... Issue 12.09.22
Fernando Lopez
CHIEF FINANCIAL OFFICER AND OPERATIONS | GLOBAL LEADER specializing in forward-thinking Finance, Operations and leading People to transform into excellence. Building companies to thrive even through stormy weather.
Have you ever got a punch in the face? First of all it hurst a lot then you wait until the black eye naturally heals, from there you have options such as i) Go back and review the past and try to make sense out of it, ii) Go back and remain there with the sour feeling iii) Go back briefly, take ownership of the situation and MOVE ON.
?We are literally in year-end mode and with inflation and other challenging factors in the economy -not to mention weather conditions- will affect your business, in other words you may get a punch in the face.
I know, this is not something we want to here, however, it may help you a lot when the actual situation occurs.
What can you do? There is a number of things you can do but there is one that gives you a lot of room for decision making and options, bottom line, PROTECT YOUR CASH!
Few weeks ago, we talked about cash conversion cycle, review it one more time and keep track of it. Use it reasonably based on your business needs since you don’t want to create a new problem you don’t need. Another thing you can do, is to ask for advances or extended terms without interest (you don’t know if you don’t ask).
Again, this is a simple rule that will always help you to weather a storm until your business “naturally” heals. One last note though, I mean naturally expecting that you are taking immediate action to correct (i.e. new procedures, submit a claim, file a lien, etc.) a situation that created the punch in the face.
Of course, you don’t need to wait until you get a punch in the face but you sure can prepare in advance at least to have your guard up!
领英推荐
Don’t get ready, stay ready!
(Thanks to our friends at VectorStock for the image)