FOREHANDED
Forehanded…
When managing a business, the most important thing is to have forehanded ability. But what is the forehanded?
The forehanded is to predict and plan a financial picture of at least 3 – 8 years based on historical data to anticipate:
1. Business opportunities
– Achieve business results as expected.
– Below expectations
– Higher than expectations
2. Anticipate changing cash flows with different business expectations picture.
Understand the difference between profitability and cash in the company in this item #2.
3. Anticipate the necessary working capital to proactively plan and access capital sources to complement different business scenarios at other times.
– Recession
– Season
– Mutation
Most of us are confused because we can’t … be forehanded, and always do business with the mindset that we must break even or lose first, and profit later.
Good product? Not enough.
Good sales? Not enough.
Oversupply? Not enough.
Good marketing? Not enough.
Are there many advantages in terms of internal and external resources? Not enough.
When you’re functional, you’re great. When you do business, you have to understand the big picture and the keyword ‘forehanded’.
But don’t be sad. Business is not for everyone. Hehe. I often talk to Founders.
Every morning when they wake up, they lose several tens/hundreds of millions. So don’t look at the details anymore. Just look at how to earn money to pay accounts payable and collect receivables only.
Route.
Week 1: Salary and bonus.
Week 2: Pay the supplier.
Week 3: Pay due to the bank.
Week 4: Collect debt, and use money to pay for the next 3 weeks.
Therefore, entrepreneurship and business are not for everyone. But only for the few who have the ability, enough capacity to ‘forehanded’.