Need a masters level 200 word response to the following post. The response must include 2 scholarly references and Bible references. References utilized by the original poster are below.
How would you propose obtaining the funds needed to keep the company alive and thriving for the next 2 years until you are able to see a return on the product development?
Steps that leadership could take to keep the company afloat for the next two years until the new product succeeds is by considering pricing discounts for the current products if clients pay early. Often it affects the overall profit margin but significantly increases early cash flow. Care must be taken to ensure that not too much of a discount is given to prevent going in the red. Securing loans for the business can help with short term cash flow issues that will undoubtedly be able to repaid once the new product starts selling. Pressure should be placed on employees to increase possible sales for current products sold by the company. According to Boex (2015), “Another important consideration is that profit reports are based on sales income. The main issue here is that the recorded revenue is often greater than the amount of actual cash received from sales.” Any possible receivables that are outstanding should be collected. Any possible customer credit issued should be strictly scrutinized and only extended in a case by case basis. Failure to do so only puts more pressure on the existing problems that the company is facing in regards to cash flow. According to Masters (2017), “With your budget as the foundation, work with your CPA to create a cash-flow statement. The purpose of this document is to report the net increase or decrease in cash for your business.” Doing this will help with sharing information with key decision-makers within the company and stakeholders as well.
How would you keep the stakeholders happy?
Besides profit communication with stakeholders should be one of the primary objectives if the organizational leadership is to keep them happy. Concerns that the stakeholders have must be actively listen to so the organization can address in a timely fashion or provide feedback or feedback as needed before issues manifest into larger unintended problems. Making sure everyone is on the same page and understands what the short and long-term goals are. With this done, everyone can see the same picture and understand how the company will get there. In times of great doubt, the Bible in the words of God have never rang so true as in the following verse: “And a great sign appeared in heaven: a woman clothed with the sun, with the moon under her feet, and on her head a crown of twelve stars. She was pregnant and was crying out in birth pains and the agony of giving birth. And another sign appeared in heaven: behold, a great red dragon, with seven heads and ten horns, and on his heads seven diadems. His tail swept down a third of the stars of heaven and cast them to the earth. And the dragon stood before the woman who was about to give birth, so that when she bore her child he might devour it. She gave birth to a male child, one who is to rule all the nations with a rod of iron, but her child was caught up to God and to his throne, …” (Revelation 12:1-17, English Standard Version)
Boex, A. (2015). Why cash flow is more important than profit. Retrieved February 18, 2021, from https://www.unomaha.edu/nebraska-business-development-center/_files/publications/cash-flow.pdf
Masters, C. (2017). Fundamentals of cash flow management. Houston Business Journal. Retrieved February 19, 2021, from https://www.bizjournals.com/houston/news/2017/10/31/fundamentals-of-cash-flow-management.html
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