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Liquidity10/1/2018 A friend came by and we had tea. He asked how am I doing and I replied I'm doing well and getting busier. He said it will be good if daily sales would be equivalent to cards bought but I responded by disagreeing as I thought it would jeopardize liquidity as there will almost never be cash available only increase in cards. Can't buy a plate of chicken rice with cards and I don't wanna have a chopper in my face.
I think the gauge for cards bought be put around 30 to 40% of card sales as I believe it would provide sufficient stats and information on how the business is doing and plan my next step on buying and selling. If money goes down I will be more aggressive in selling and same goes to buying. Have more cash will buy more aggressively to restock to attract more customers. I have a simple structure. 50-50. Whatever money I have I spend 50% to buy and keep the rest in case a collection comes in. Money from sales, minus cost of cards and overheads, will be split 50-50 then rinse and repeat. I started with not much money had to be prudent and careful. The limitation allowed me to handle situations in differently. There is no right or wrong. Pick up and learn from it. Part of a lesson. AuthorLaid back and enjoys a good laugh. Archives
March 2021
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