PANKAJ KUMAR JOSHIGeneral Manager| Transrail Lighting LimitedNainital, Uttrakhand, India
Sometime you have projects in which you have to invest money to get work done. What is the best possible strategy to keep your investment low in negative cash flow situations? Saving Changes...
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Sergio Luis ConteHelping to create solutions for everyone| Worldwide based OrganizationsBuenos Aires, Argentina
It is not my investment. Is the organization investment. So, because each project is started for an strategic reason the situation you mentioned must be defined before the project starts because a strategic demand. Saving Changes...
PANKAJ KUMAR JOSHIGeneral Manager| Transrail Lighting LimitedNainital, Uttrakhand, India
Yes It is not our investment so I am not worried about how much it will finally return. I only try my best to improve margins.But you have limited money in organisation which is distributed among multiple projects so you face the heat from every place whether from supplier, subcontractor or contract staff. When we become part of such projects we should have some win win strategy for it. Sometime delaying expenses help but it increase the chances for project delay. Saving Changes...
Under business conditions, one expects a project to have a break even period.
With proper financial evaluation the project sponsor would be able to ascertain to some degree what the cash flow will be over time and what should be the proper cash injection as the project proceeds. Saving Changes...
Stéphane ParentSelf Employed / Semi-retired| Leader MakerPrince Edward Island, Canada
The best possible strategy is: get your revenue as quickly as possible (low DSO) and pay your expenses as late as possible (high invoice terms). An easy example, is to not schedule a milestone payment at the exact end of the month, if your project accounting is month-bound.
For capital investments, there are creative ways to account for them so as to minimize the impact on the project cash flow and the client. Your corporate Finances should be able to help you there. Saving Changes...
PANKAJ KUMAR JOSHIGeneral Manager| Transrail Lighting LimitedNainital, Uttrakhand, India
I agree with you Stephane. We did the same in our projects. It needs a high degree of planning & cost control. Saving Changes...
Dipak JaniPM Specialist| U.S. Department of Energy SRSAiken, Sc, United States
Continue project with assumptions and Risk... Saving Changes...
