wardell books

Financing System

Review the various cash resources (internal and external) you identified as important in the exercises above and list them below in order of priority. In other words, when you need cash, what will you do first? What will you do second? And so forth.

Now that you know what you will do to generate more cash, you need to clarify when and how you will go about it. For example, should your rainy day fund fall below a certain amount, you may choose to liquidate certain assets or initiate certain cost cutting measures to top it up. Or, should you begin to experience an unexpected growth spurt, you may expand your line of credit, just in case it causes an unexpected cash crunch.

Write your Financing System.

In this chapter you should have designed, shared, and made a plan to review your:

  • Financing Systems (as necessary).