They are not budgetting well? Cash management is in shambles?

Ateneo Professor on Entrepreneurship

I was conversing last night with a relative who works in a Makati CBD company, engaged in real estate development.  She joined the group because the pay was good, the business model and the visioning was OK.

However, last night, she remarked if ever the company will continue to survive.

I asked why?

They only have one on going project;  the houses to be built with full dp are not being built, cf from take outs are not being delivered on time.  Senior management rewarded themselves up front;  they had instant gratification and did not wait for obligations to be paid first.

Some reperrcussions:  agents are not being  paid commissions on time and are leaving in droves;
cp bills are not being paid on time, they could not get gas on credit;  investments are coming in and are being spent for opex (not capex) and appears like a Ponzi scheme.

While we a small set up in the province have sufficient dam management to see us for the next five years.  It takes some kind of training to have stiff cash flow control and budgetting.

Yes, cash is still king

Some and maybe many companies maybe in Makati or Ortigas,  may be lacking in managerial competence.