Queen Essays

Classmates Discussion thread Company Cash Flow

Roxann

Discussion Thread: Company Cash Flow

Vision for our Revolutionary Product: Our groundbreaking product is still tow years away from profitability, but this period is our “appointed time” to build a foundation of demand and anticipation. Leveraging strategic marketing now will prepare the way for it’s release and sustain momentum to launch. This pivotal moment reminds us of Queen Esther’s story where she was placed in a position of influence Esther 4:14 NLT “for such a time as this” (Patterson 2018). Just as Esther was called to step boldly into her purpose, we are presented with a unique opportunity to steward our resources wisely and position ourselves for the success of this revolutionary product.

Proposed Strategy:

1. Create Buzz and Anticipation:

· Launch a marketing campaign that highlights how life-changing and innovative this product will be. The goal is to establish it as a “must-have” before it even hits the market.

· Draw parallels to how impactful innovations shape lives, sparking excitement and emotional connection.

2. Encourage Preorders:

· Offer pre-sale options, including deposits or payment plans, to build cash flow in advance. This will provide concreate numbers on demand. “Preselling is proposed as a means to raise the necessary cash for production with long production lead times” (Xiao 2018).

· Use these preorders to affirm market interest and provide forecasts.

3. Additional Considerations:

· Evaluate inefficiencies: Utilize Break-Even Analysis to determine whether a product line is meeting or exceeding its break-even point when product is launched.

· Consider liquidating underperforming assets to boost cash flow.

Through bold action and faith in this pivotal moment, we can steward this opportunity wisely and achieve the breakthrough we’ve been working toward. Just as Esther’s obedience led to the salvation of many, our strategic efforts can lead to the success of the transformation this product is destined to bring.

· Seek external investors willing to provide capital in exchange for equity or other arrangements.

 

References

Patterson, D. K., & Kelley, R. H. (Eds.). (2018).  New international version The woman's study bible. Thomas Nelson.

Xiao, Y., & Zhang, J. (2018). Preselling to a retailer with cash flow shortage on the manufacturer.  Omega,  80, 43–57. Retrieved November 20, 2024, from  https://doi.org/10.1016/j.omega.2017.09.004Links to an external site.

Andrew Ahigian

The phrase "cash is king" is certainly true, so the ability for a company to gain cash, maintain it, and use it properly is crucial to the survival of a business. The CFO of company has the responsibility of managing the businesses money and cash flows. In the hypothetical scenario, this CFO is struggling with cash flow issues before a major product release. There are several options and strategies a CFO could use to address their short-term financial problems. 

The first option I would explore is to find a partnership to enter into with an already established company. With a business partnership, a company can help financing the product and raise capital for this product that will be released. I would explore how a partnership may also be able to "speed up" this two year product timeline so that the product can be released sooner. 

I would then look into the potential for a short-term loan. According to Corporate Finance Institute, a short term loan is a type of loan that is obtained to support a temporary personal or business capital need". In this scenario, it is said that my businesses new product would save my company from financial demise, however, the issue is that the product is two years away from release. A short-term loan would help fill the gap between financial cash flow issues and the 2 year release roadmap for my product.

Lastly, I would explore ways that my company could reduce expenses. Scott Beaver recommends against businesses reduce expenses by inventory, marketing, and labor costs. Instead, Scott discusses cutting nonessential expenses such as landscaping or housekeeping first, followed by overhead such as rent and utility costs. These expenses add up over time, and would save a significant amount of money if I were able to find ways to reduce costs of these expenses. 

Proverbs 21:20 says "Precious treasure and oil are in a wise man's dwelling, but a foolish man devours it." This verse tells us that a wise man saves their goods instead of using them. In business, we should always look to save money rather than spend it. Using money wisely will help up in both our personal and professional business careers. 

 

NetSuite.com. (n.d.).  13 ways to improve cash flow. Oracle NetSuite. https://www.netsuite.com/portal/resource/articles/financial-management/cash-flow-problems-solutions.shtml

Short term loan. Corporate Finance Institute. (2024, July 12). https://corporatefinanceinstitute.com/resources/accounting/short-term-loan/#:~:text=of%20each%20course.-,What%20is%20a%20Short%20Term%20Loan%3F,year%20from%20gettin