|"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
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
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
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
Linked by this relationship called TIMING!!