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Sunday, July 21, 2019

Dam Management - Save for a rainy day

Ateneo Professor on Entrepreneurship

Rizal Philippines
July 21, 2019

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Attributed again to the founder of National  Matsushita.

Prepare for the unforeseen;  have contingency planning.  Anticipate that things could go wrong and set up system to address the possible difficulty.

1. Have cash in excess of your usual requirements so that you will not scrounge for cash to finish the project.  Keep secret cash hordes to get you by in times of crisis.

2.  Have extra staff as back up  in case somebody gets sick, or leaves.

3.  For your working capital requirements:   have cash

    1. For your usual operating expenses;

   2. Have reserve in case your payables comes due and the receivables are not paying.

   3.  Have extra cash in case the tax men suddenly comes in and ask you to pay.

   4.  Have insurance for fire and other calamities

4.  Have redundancy for your critical machinery.  Have a back up especially if they are imported.  A downtime will severely affect your outputs

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