In: Finance
Cash Finder : In the cash finder role, the entrepreneur needs to be on toes to ensure all cash requirements are paid on time. He should be ready with funding plan for expected requirements and ensure all payments are made on time, In case of a shortfall, he should have backups ready. He should also ensure that the cost of funding is most competitive.
Cash Planner : The Planner roles ensures that the entrepreneur has estimated the cash requirements as well as cash inflows properly. This should be for immediate requirement as well as for some future weeks/ months as well. Ideally, there should always be enough cash to pay for planned requirements and contingencies.
Cash Distributor : The entrepreneur needs to distribute funds after prioritizing the requirements. Entrepreneur needs to differentiate between essential and non essential requirement of funds. He needs to be efficient and hands on in distributing funds properly. He needs to judiciously decide on clearing payables, according to importance and time. The firm need not lose credibility as an on time payer, even if it delays payments at time
Cash Collector : Entrepreneur has to ensure, receivables are in check. He needs to constantly check that no one account is delaying payments frequently. He can identify key clients and ensure they pay on time, even if he has to do followups with these key clients
Cash Conserver : This requires ensuring the most efficient use of funds. Any, unrequired or useless expense should be checked. Judicious spend is required. Working capital needs to be managed effectively with Neither receivables or inventory ever going overboard. If he can, he should try to increase payables as much, with effecting his vendor relations or reputation.