Most of the time entrepreneurs focus only on fixed capital and concentrate on the means of arranging funds to meet the requirements. But, in this exercise, they forget to pay due attention to a very important aspect which actually acts as a bridge that connects the present and future. In other words, when you manage your day-to-day activities properly then you can hope to see a better tomorrow: like the adage goes, "Take care of today and tomorrow will take care of itself."
Every
business organization on this earth aims to reach the top
of the pyramid by expanding the size of its operations, enhancing
production capacities, installing new plants and machineries,
implementing advanced technologies, etc. In order to become
the `Pamir Knot', which is known as `Roof of the World', organizations
have generally been found investing heavily in fixed assets.
But, in this journey of moving towards the top, sometimes,
business enterprises forget to place due emphasis on the efficient
running of day-to-day activities because aiming at long-term
growth without paying heed to present needs may hamper the
progress of business. Therefore, the daily needs should be
addressed properly. Now, can you guess which component of
business takes care of matters pertaining to the efficient
running of day-to-day affairs? Yes, we are talking about the
various key components of working capital which act as wheels
in moving and providing speed to your business. You cannot
reach your destination if you don't move or travel. Similarly,
a business cannot become Numero Uno until and unless it has
a sound working capital management base. |
