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| ................ | "Operating Profits" is
not just the same as inflow of cash
If you think so, I’m afraid your business might crash! For, profits camouflage some moneys lost too, Some payments to creditors, some dividends due Increase operating profits you should, for managing cash flow Managing and forecasting your cash flow you should know Don’t treat your "stocks-in-hand" like trash Reducing them sensibly could generate cash Increase the sales of your sellable lots Or maintain sales while cutting down your costs Reap the benefits of "economies of scale" Know your markets and competitors in thorough detail Utilize to the fullest, your capacities Recap "Marketing & its 4 P’s" Organize timely purchases of raw materials of good quality And reduction of scrap and items of non-utility Quality is the watchword at every stage Which successful businessmen unfailingly leverage Do rejoice the sales levels your strategies beget But important too is the profit target!! You can minimize your interest rates and avoid borrowing By retaining your profits for self-financing Reduce your dividends and taxes paid By having your schedules and plans in advance laid Monitor your actions that impact your cash flow Evaluate overall impact and you’ll come to know That by managing your cash flow for your businesses prime You will have handy cash at JUST THE RIGHT TIME!! Reconciliation thus of PROFIT TO CASH is something Linked by this relationship called TIMING!! Vaidehi Krishnan |
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