Planning, per Google, it means “a detailed proposal for doing or achieving something.”
It’s not that easy just as mentioned in a line. The plans could not be prepared overnight and requires detailed thinking and analysis. It has its relevance everywhere, no matter in which field you are!
We will not argue about the importance of planning word, we will discuss about the execution of this critical aspect in your business.
Interestingly, we talk about planning only when we are relatively free in businesses, lives, and relationships. Knowing the fact that it is a critical part of every business decision.
“Welcome to “The CaConsult Research”!
Small businesses generally lack planning! It includes not only there financial planning but it includes strategic, operational, marketing as well. These planning are generally part of every conglomerates daily activities but not followed in small business.
We have conducted a detailed research on few small businesses including Retail, E-commerce and manufacturing;
There are few common shortcomings that are learning for all of us and for our better future.
- Negligible importance to creditors;
- Poor cash management;
- Improper cash handling;
- Limited dependency of technology;
- Improper handling of debtors;
And I can go on with numerous other inadequacies.
How to save your businesses in these tough times ? How to make them survive In this tough time of COVID-19 and for being almost self-imprisoned at our own homes. It is the time for you to prepare yourself for the worst coming global financial meltdown and it’s only the PLANNING that can save!
I have a piece of advice for you and your business here, you may apply and see results in your business. Starting with a quick question, who is most relevant in your working capital cycle debtors or creditors? 70% of people will say debtors, as they are giving us money ! However, per our research, it’s the Creditor in these times.
Following an English saying “money saved is money earned.” Following the entire working capital cycle of Creditors-stock-Debtors-Bank.
Its time for you to save. You can earn/save money by renegotiating your deals with Creditors and by releasing a part payment to ensure smooth business patterns with him. So, its not the time for you to earn from your debtors but it’s the time to take initiative and re-discuss your terms with your creditor as he is will in desperate need of money as you are! Remember, you don’t have to release the whole payment BUT YOU WILL NEGOTIATE ON THE ENTIRE PAYMENT FROM HIM.
For Example:
- Total Creditor – 1,00,000
- Discount – 10% or 10,000
- Payment to be released – 10,000
- Net impact – 10k Earning
