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Solid Finance
Definition of Finance Component
This component
[finance] defines
the way in which the company manages, monitors and utilizes capital
resources for its growth. It includes the quality of systems and
skills for accounting, budgeting and financial management, cash and
credit management, control over purchasing and inventory, access to
capital.
Strategies for Improving Finance
Here are a
few finance strategies for improvement:
-
Determine of our company is exploring and taking advantage of
every conceivable source of finance to make our business grow.
-
Determine what can be done to improve accuracy and timeliness of
accounting so that information on performance is available as soon as possible after the
day, week, the month, or the job is over.
-
Determine how our company can utilize financial information as a
positive instrument for tracking and monitoring performance on key activities.
-
Determine what type of indicators we can develop as positive
motivating tools to help managers and employees evaluate their own performance.
-
Determine what are the key areas in which the company can save
money by improving performance. Determine what can be done to raise performance in those
areas.
-
Determine what can we do to generate a more positive attitude in
our company regarding the way money is used to motivate employees and vendors?
-
Keep expenditure within or below budgeted levels.
-
"Attract" money to us - by immediately implementing
cleanliness & organizing work to the next highest level; and by managing our finances
better. (This can invoke a response and make money come to us.)
-
Review
some personal growth,
"inner strategies" that can help you attract money.
Collecting
Serious Amounts of Money Owed
Arrears can be of any description
-- arrears of work, duty, or
uncollected outstanding of money. People in business sometimes
come to a standstill. Money dries up or the market deserts. One
contemplates closing the operations. It can be of several types.
One type is because of accumulated arrears. Here we come to a
vicious cycle. We know if the arrears are fully collected, the
business will be viable. Again, we know unless the business is
viable and is running, those arrears cannot be collected. At
such points, one finds his prayers at a dead end, evoking no
response. Sometimes the losing company may not have the energy
or the means of collecting the arrears. Still, when a determined
effort is made, we get vague promises, evasive answers, taunting
replies or even ridicule.
What really matters is a DECISION to make oneself a success. It
is sincerity. The truth is that these arrears have collected
gradually because of our laziness and neglect. Now we have to
reverse the laziness into dynamism, neglect into responsibility.
Collect as much as you can. Even Rs. 100 out of a few thousands
collected will break the impasse. Don't go into the market for
collection until you see the determination inside. The inner
determination is preceded by a decision. That decision is by our
will. Our will is enlightened by our knowledge. Know that you
can collect this money, as it is yours. Also know, if you fail
to collect this, you are over. That knowledge is the key. Let
that knowledge fortify your will. Take a decision based on it.
That decision is the knowledge of our will.
Let your WHOLE mind accept that decision. Then it becomes a
determination. Add the emotional passion to it. The
determination becomes a commitment. It is powerful. Once such a
determination is arrived at, go out to collect. There will be a
positive response. Absence of positive response means absence of
positive determination. Know uncollected arrears is closed
business. Out of other favourable circumstances, uncollected
arrears now may not hurt you, but they will certainly erode your
company and later your life; it will be your undoing. To collect
every $ owed to you is your responsibility. You might have
collected 9500 out of 10,000, but left 500 uncollected. As the
company grows, you will see that a bill of 100,000 leaves 5000
uncollected. The arrears have SUBTLE life. Not only your
company, but also your personal life will be undone by that 500
uncollected. To collect it is essential. (MSS, slightly
modified)
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