Wednesday, March 30, 2016

SINGAPORE - financial company principle

Being in Singapore as financial company is expecting you to be conservative. Reason for being so is the amount of cash to such projects (incoming). Once we consider the volatility of the company together with future cash flow it will be always preferred to seek a stable year per year cash flow. Every time you exceed the profit by 5% and than later u keep the profit on previous amount it will be foreseen the decline of the profit in next years. Only if you are able to increase the profit by 5% every year that formula will be followed. Therefore, before spending too much time on a artistic financial planning keep your data, webpage for investors, financials stable and try to find the answer on the future problem before the problem happens. Cash flow problem happens. It might be a good idea to separate risky project to new company or deal with the additional cash flow need by payment terms of suppliers. Keeping stable, keeping foreseen is always a sign of management.

Building a webpage
Building a webpage for your investors is an amazing example of that. No fancy adds, no crazy moving pictures, half naked women. You may keep that for customers. Investors deal with cash and everything trying to distract them will be kept as a bad sign. Telling, that u want to hide something, or even worse, wasting the resources on contra productive action. If you are not sure of the numbers it will be better not to show the number. Or just describe them as the numbers changing in time. Try to focus on BEPs, so called points of chance. Where my profit will become negative, what is the main value to influence cash flow, why my plan for future is to grow, what is it dependant on. You would need to use Excel. Use it wisely to find key points. And than you will, on your own, see the future challenges.

Amount of data on webpage
Webpage for investors has to be factual. Numbers need to correspond to each other. Be careful of changing one table but leaving old data in text. Provide Assets, Liabilities, Profit and Loss. Add cash flow. Use percentages to influence the outcome. Use year to year comparison to see the trends. Use deltas to see absolute value. And use nice, soft colors. This is not a flower shop to collect all the colours. The main idea is to be correct and simple to observe.

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