Accounting
Secret to Business Sustainability
Your Profits have increased, but your Bank balance has dropped!
Managing your business is an art.
You may be selling well, but you may not be collecting fast enough to pay your Vendors. Hence your cash balance drops.
Worse if you need to keep Stocks, in order to meet Sales orders. This means deploying additional Cash to bring in additional stocks to fulfill a Sale.
Hence Working Capital Management is key to increasing Cash to your bank account from the Operations.
To do that, you need both Negotiation and Persuasive skills, as well as an eye for details.
You need negotiate with your vendor for longer payment terms, as well as maintain a good relationship with your customers in order for them to pay you on time based on perceived value they get from you.
You must have an eye for details to analyze your fast running menu items to maintain only these stocks, and convince your customers to wait for you to reorder for uncommon menu items so as to avoid unnecessary stock keeping which would deplete your Cash.
Hence, doing business is an art.
A successful business man is like a Chef-at-work.
A successful chef prepares his needed food ingredients in advance, buy only fresh ingredients to avoid food wastage later, trimmed away unwanted fats, pour them into the wok at the right time, cook them at the right time, and present them to the customer very attractively when food is steaming hot.
Customers will pay happily after consumption, very willingly, perhaps leaving behind a good food review too!
