Page 17 - Newsletter July - Sep 2020__

PERSPECTIVES BY SKC
4. Create investment pools
For most businesses, a lot of expenses would be deferred this year. But this would not mean that these expenses will not be required to be made in the coming months.
Pools would need to be created for those from today so that financial burden can be spread
over months. These pools can be in areas of investment in technology, capacity building, employee bonuses and so on.
Set a goal for each pool of investment with a timeline, and then identify how much you
would need to save for each on a monthly basis in order to reach your financial goal at the
end of the desired time.
Just think from the perspective of homemakers who would continue to save for the special occasions and festivals throughout the year.
5. Funding strategy
Besides other things, any growth initiative would need funds to act as bloodline for any organization. Thus it is essential to keep your funding options open and evaluate them.
Knowing your capacity to raise funds is not the same as actually raising them. It would be useful if you have evaluated areas like:
a. Bank funding - short term against inventory, collaterals, professional loans, cash credits, overdraft facilities, etc.
b. Project funding from private financial institutions or government-backed.
c. Venture capital or private equity investors
d. Personal savings
e. Creating saving pools within the business from profits
The intent of doing above is two folds:
a. To evaluate how much capacity expansion can be done so that you could pitch for orders accordingly;
b. Give you peace of mind that all is not lost.
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