QUALITIES OF A STRONG MAN

Characteristics that a man should possess

First, let me start off by saying that I am in no way the authority of what a real man should be because I think that I possess every single one of these characteristics or values. Each and everyday I learn something new about myself, or even a new way of thinking.

One thing I have definitely learnt over the past year, is that life will humble you. It humbles all of us at one time or another, which is something that we either embrace, or we fight. If we resist, and we’re never humbled by ‘these moments’, we’ll never learn.

The first step we must take in becoming the man we are meant to be, is to realize exactly who we are, what our strengths and weaknesses are, and what we can offer the world. I’m not perfect. I’m terribly imperfect, and I’m reminded of it everyday, which allows me plenty of room for growth.

That being said, I’m pretty awesome, and you’re reading this blog, so you’re obviously pretty awesome as well  So, I’d love to hear what you have to say.

 what characteristics does the ideal man possess?

20 characteristics of a the ultimate man

1. A man treats women with respect. If you don’t respect women, you’re not a man. Period.

2. A man understands that greater happiness lies in helping others, not helping himself.

3. A man doesn’t stand still while the world passes him by, he continually pushes himself.

4. A man is a leader in at least one aspect of his life, whether this means his family, with his friends or just in general. But he can also follow. The world wouldn’t work if everyone was trying to lead in every aspect of life.

5. You can depend on a man. You can’t depend on a boy.

6. “You cannot teach a man anything; you can only help him discover it in himself.” ~ Galileo Galilei

A man is proud, often to a fault. He doesn’t “change” but rather evolves. Ladies, don’t try and change your man, but let him evolve into the man he’s meant to be.

7. A man doesn’t need to be able to fight or to protect himself and his family physically. But it helps. He does however need to be willing to do whatever it takes to keep his family safe and happy.

8. A man lives for something; a purpose beyond his own personal gains. This can come with time, and with family. It doesn’t always happen right away.

9. “Many of the greatest accomplishments of the world were accomplished by tired and discouraged men who kept on working.”

A man gets depressed, he gets sad, he thinks about quitting and folding, but he never does. He pushes through adversity.

10. “When a man points a finger at someone else, he should remember that four of his fingers are pointing at himself.” ~ Louis Nizer

A man has faults. It’s important to understand this.

11. A man can laugh at himself.

12. A man takes pride in how he looks and lives his life. He’s not ashamed by who he is, what he does or how he looks, even if he’s trying to change one of the aforementioned.

If you are, here’s a great resource to help you change that –

13. “Young men want to be faithful, and are not; old men want to be faithless, and cannot.” ~ Oscar Wilde

Men learn what is truly important over time. If they’re lucky, they’ll have a sense of it early on.

14. “How can a woman be expected to be happy with a man who insists on treating her as if she were a perfectly normal human being.” ~ Oscar Wilde

If a man finds someone special, he doesn’t treat her like she’s everyone else.

15. A man has fears, but he isn’t ruled by them.

16. A man learns from his mistakes. Although he might take a few cracks at it.

17. A man does what is necessary. Even if it’s the hardest decision, or the most unpopular one.

18. A man can appreciate the greatness that is ‘The Gladiator’.

19. A man thrives on competition.

20. “For a man to achieve all that is expected of him, he must regard himself greater than he is.” ~ Johann Wolfgan

MY FIRST LOVE, MY MUM

Every time, I hurt her but she always cares about me in return. Whenever I am ill, she sits behind me all the night staring at me in order to make sure that I am perfectly taken care of. She can’t close her eyes even for a little while so that when I wake up, I don't get worried by not finding her there for me. But I don’t know why, many times, I just can’t care about her feelings. Her love for me is visibly immeasurable; tears in my eyes or any bruises on my body hurt her deeply. Similarly, she loves to see a smile on my face all the time. Surprisingly, every time she already knows what is in my heart.

In my childhood, I loved to play cricket. I remember, those days she could never get relaxed until I returned home safe and sound. Till today, all my tensions vanish in her company; her kind face, knowing eyes and wise words help me to confront the issues bravely and sort them out confidently. Before every exam, contest or a tough time when I see her praying for me, I feel a lot of strength and calm inside me to meet the challenge.

Like everyone else, the secret behind my peaceful life and all the success is my mom. Whoever I am today, it’s just because of my mom’s support and efforts. She is the amazing selfless soul, who scarified everything to see me happy and flourishing in my life. How can I forget that she had to lose her friendships and all the socialization time just to spend time with me in order to help me with my studies every evening. When people were enjoying beauty naps in the afternoon, she used to be in the market with me buying material for our educational projects at school or purchasing equipments for my sports and co-curricular activities. I have flash backs of my rehearsals of dramas and debates that were held and directed by her at home so that I could perform with excellence at school. I still remember how fun was her company when I used to play outdoor or indoor games with her, and every time, she, deliberately, chose to be a looser just to see me happy (I was unaware of the fact that time). Similarly, every weekend we used to watch two kids’ movies together. I have  a full fledged album of such enjoyable memories that contributed to what I am today.

Now, when I am a grown up, she thinks I am still the same young child:

"Have you taken your breakfast? Finish your milk before your university bus arrives."

"Button your cuffs. Today, you did not comb your hair well!"

"Oh, wear your sweater quickly, otherwise you will catch cold."

"My God! I can’t approve of your wearing trousers while going outside, specially with me."

"How about your studies? These days, you are spending so much time on facebook, isn’t it? etc."

Although it’s annoying and irritating most of the time, but I understand it now; it’s her way of loving and protecting me. Since I opened my eyes, I found her by my side, caring and nurturing me. With her, I experienced love first time in my life. She is my first true love.

I don’t know why, despite all the awareness, I can’t acknowledge her love, care and contribution for me most of the time.  Here, I recall a story:

While passing through a bridge, a mom said to her son,

 “Hold my hand tightly!”

The son replied:

“No mom, you hold my hand.”

 Mom asked:

“What is the difference in it, son?”

The son answered:

“ Mom, may be I leave you when I am in trouble but I am sure you can’t leave my hand under any condition.”

But now, through this article, I discovered my relationship and bonding with my mother. Certainly, her love for me is evident and matchless. And, I have no words to thank her for all that she did for me.

My mummy stories inspired me alot. Thank you my mum

This is a true story, my mom told me about it, it happened when she was young. 

There was a trash man who came everyday to her home and picked the trash and all the very dirty garbage. Everyday he worked hard and collected money, everyday now and then work work work... Then, after many years of hard work he became rich, bought a nice house and a limo.... But... his limo contained a broom hanging on it's bumper. Everyday, when he went to the city, people asked him,"Are you mad? you have placed a broom on your luxurious limo?Duh."  And everyday he replied,"I placed a broom on the bumper so that I could always remember that I was once a garbage man and that I should not have pride over my wealth and prosperity".. People became amazed...

DO YOU WANT SPIRITUAL GROWTH?????

FRIENDS, BEWARE WHEN YOU NOTICE ALL THESE IN YOUR LIFE.

1. Beware! When prayer becomes a difficult thing for you.

2. Beware! When fasting is becoming a history in your spiritual timetable.

3. Beware! When you no longer enjoy reading the word of God.

4. Beware! When attending church programme is becoming a burden rather than a blessing for you.

5. Beware! When living a life of holiness is appearing like extremism.

6. Beware! When sinful living becomes a lifestyle in the name of grace.

7. Beware! When you crave for earthly things rather than the things of God.

8. Beware! When waking up in the night to pray is becoming a thing of the past.

9. Beware! brethren, when your heart no longer desires to see the Lord Jesus one day.

10. Beware! when you eat more than pray

11. Beware! when you no longer share the word with others.

12. Beware! When u start diluting the preaching Word of God to keep people around you.

13. Beware! of all these, brethren, Satan isn't resting. We too must be vigilant.

14. Beware! When you spend more time on Facebook, whatsapp, twitter, and internet. These things become idols and take the place of God.

Perhaps you're not even interested in the contents

Lets prepare, Jesus is coming soon to take those who are eagerly waiting for him.

I LOVE YOU SWTHRT

To my Love:

Where to even begin? I am writing to you today to remind you of how much I love you.

Yes, I know it is not your birthday, or Valentine’s Day, or any other special occasion. It’s just an ordinary day; a Thursday to be exact.

I’m writing to you today because I just came to the realization that life has been extremely chaotic lately and I have been selfishly choosing to focus on myself

instead of you and our relationship.

I would first like to start off by telling you that never in my life had I thought that I would ever find someone who loves me the way you do.  Not that I believed that I was incapable of being loved, but I simply could not fathom finding someone who could ever appreciate and cherish me the way I dreamed about. That is, until you walked into my life. Even when life gets in the way, I still love you more than words can describe. You are constantly on my mind asI go about my everyday business, either directly or subconsciously in the back of my head. You are with me in every single thing I do, and everywhere I go.

You are my one and only; my past, present, and future; my soulmate.

What exactly is a soulmate? Does every single person in the world have one? Do each of us individuals only get one shot at being matched up with one other person in the entire world? I may not have all of the answers, but I know one thing to be true. You are my soulmate. You make my soul happy. You are my love, companion, and above all, my best friend. I truly believe that there is not one other person in the world who gets my humor, my mannerisms, and my heart like you do. If you are not my intended soulmate from the Maker, then I don’t ever want to meet the one who was instead intended for me.

I want you to know how much I appreciate you. I may not tell you enough, or show it. You do so many little things for me that go unnoticed. I want to apologize for the moments when I was blind to see what you do for me; I want to apologize if I have ever overlooked you. I want you to know that even when I am incapable of seeing how lucky and blessed I am to have you, I still am forever thankful.

I want you to know that our friendship means everything to me, and that I simply could not survive in this crazy world without you. You give me the truth when I need to hear it, courage when I need confidence, and love when I am flawed. There is no one else I would rather lay up at night and talk with about crazy things that only the two of us could even think of. There is no one else who I would rather travel with, see the world, and experience new adventures with. There is no one else who simply could ever get me the way you do.

You have given me a safe haven to be myself and not be ashamed of all of the parts that make up my soul. You give me security that makes me feel safe and centered; a shoulder to cry on when needed and a hand to hold when I am lost in the dark. I know that whatever life throws my way, I will be able to handle it because you are at my side. There is nothing that we could never face together. Without you, I am weak. With you, I am strong and capable of anything I set my mind to.

I want to thank you for giving me love when I am undeserving. For your forgiveness when I make mistakes and hurt you with my daggering words and actions; for your unwavering faithfulness to our relationship. For your kind and gentle touch when you comfort me; for your ability to apologize when you are in the wrong and take responsibility for your actions. You have taught me so much about tenderness and unconditional love, even when it is hard to give.

I want to thank you for your continued support and faith in me as I journey through my endeavors. You have never once doubted me, told me I should give up, or told me that I could not do something. Your positivity and confidence in me continues to baffle me each day. I know that if I ever need a pick-me-up or someone to tell me, “Keep trying,” or “Don’t give up,” I know I can turn to you. You are my support system and my fan club; my motivation to push myself and always reach for bigger and higher goals. You have taught me to believe in myself and to appreciate my own worth, a task that is not always easy.

If I were to suddenly leave this world sooner than later, I would be overjoyed that I experienced such a rare and honest form of love. To have been loved and cherished by someone wholeheartedly is a once- in-a-lifetime opportunity. Our relationship is my most treasured possession, and I will take this love with me everywhere I go.

If you ever feel like I am taking you for granted, please open up this letter. Let it be a reminder of how I feel about our relationship and its worth to me. Please remember how much I love you. I loved you the minute our eyes first met. I love you deeply, and I always will.

LETTER TO MY LOVER.

When I met you I wasn't planning to fall in love. I wasn't even looking for a new best friend. You changed all that. The attraction was electric and unexpected. You came into my world and turned it upside down. Our timing was lousy, but the connection was impossible to ignore. Our logical minds attempted to take control, but never had a chance......

I trusted you implicitly, and you always told me that you "trusted me, and more!". You were the first person that I showed the 'real' me to, and you appreciated me for me. In the short time we were together, you found out more about me than I had ever let anyone else know. We shared and so much, yet there was still so much to learn. I knew so much about you, and then again, so little. I always assumed that we had so much time. So much I knew, yet so much I wanted to learn. Our love was a secret, and I was happy enough to keep that secret while we tried to sort out the incredible "mess" that we had got ourselves into. I was also happy to wait until circumstances were better. A couple of years in a lifetime meant nothing. I never knew that 'time' was the one thing we did not have. You kept pointing to pot-bellied old guys and telling me "that's going to be me!". I never thought that I would not get the chance to see you as "a pot-bellied old man". 

I loved your smile, I loved your eyes, but most of all I fell in love with the person inside all of that. You made me laugh. You made me laugh a lot! You totally cracked me up. You also made me cry, and I hated that. Most of all, you made me feel alive. You were "the one". I love you, and although you have left an enormous gaping hole in my heart, I will never reget having met you and falling in love with you. If nothing else, I am glad that I made your last 10 months (mostly) happy. I would have preferred to make you last 30 years happy, but you had a time-bomb in you head. I ache, I hurt, I cry, but I will never regret loving you. 

When you left, I broke your trust and told people about us. I'm sorry, I had to. I absolutely know how much your privacy meant to you, but I had to. It was the only way for me to survive. In love, keeping our secret was easy. In death, the pain of loss is so intense that I could not go through this alone. I trust that you understand. If you were here, I would talk to you. You always gave me the best advice. I don't know how you did it, but you always knew what was best for me. 

The pain I feel at losing you is intense. Unimaginable. Indescribable. Even now I still ache. It is no longer the unimaginable, indescribable pain, but there is an incredible ache nonetheless, accompanied by a huge kick in the guts when the reality hits. 

I think of everyone else I know that has died., and I feel sadness at the loss. I think of you, and how I lost you and I collapse. There is no comparison. Never again to hear your voice. Never again to see your smile. Never again to feel your touch or to laugh at something you have done or told me. Never again just quietly enjoying being together or enjoy talking to someone who understood me. None of my friends can understand the pain. I t is totally beyond understanding. I do not understand! Life protects you from imagining the pain. 

For all the times I hope for understanding of my pain, I truly hope that none of my friends ever do. I wouldn't wish it on my worst enemy. I would hate for it to happen to a friend. I am astounded that death, which is such an integral part of life, is so hard to comprehend and cope with. Death. It is inevitable for all of us. Cold, hard, scientific fact. So why is it so hard to accept emotionally? Surely something so integral to life as death should be far easier to comprehend and accept. It isn't. Losing you has left an enourmous hole. Every day I try to fill it, but it's like filling the Grand Canyon a grain of sand at a time. Before I met you, I was happy. I did not believe in "love at first sight" or any of those "stupid" love songs that talked about love. Then I met you! Suddenly I was deleriously happy. I was consumed by emotions. Death is the same. Consumed by emotions, but this time they are debilitating rather than exhilerating. Some have told me that they would not be so upset: "I would do this...". They do not realise that emotions will totally overwhelm logical thoughts. One moment I was happily planning my next trip to see you, the next I am reading a heart stopping mail entitled "Sad News". I will never, ever forget that day, or that mail even though I wish every day that is was a bad nightmare. My blood still runs cold with the memory of that moment. A secret in happiness is exhilerating. A secret in pain it is a nightmare. Although those who I have told will never (hopefully) understand the pain, I am lucky that they are there for me, and they listen when I talk. For that I am eternally grateful. No, they are not you Hector, but they care, and they are here in the physical. 

I am determined to get to a stage where 95% of the time when I think of you, I will smile at wonderful memories we shared. I am determined to make you proud of me, to live up to your expectations. I know that you always wanted me to be happy. To be satisfied. To have the best. I always wanted the same for you to. 

I know that so far I have not been doing to well. Losing you has been far, far, far harder than anything I could have ever imagined. Unexpected devistation is the only way to explain it. I cry a lot, I wail a lot and I miss you immensely. How could I not? In such a short time, you became my everything. I loved you with all of my heart and soul. Despite all of the immense pain, I still firmly believe that it is better to have love and lost, than never to have loved at all. It is still hard to imagine life without you, and I still wonder how I can possibly survive without you. I know that I will, but I also know that it will be the most demanding challenge of my life. I will succeed, because this is what I want, and it is what you wish for me. I am determined not to disappoint you. 

In closing my love, you changed my life. You expanded my horizons, you saw the real me. You were my lover, my soulmate, and my confidant. You were the love of my life. You were "the one". I will never forget you or the incredible gift you gave me just by being you. You will stay forever and always in my heart. ....

I love you now and I will ALWAYS love you. You were the most incredible person that I ever met, and I would give anything to have you back with me in the physical world that I know.

How entrepreneurship can create alternative employment opportunities for kenyan youth

Unemployment level in kenya is 40% with 75% of this population being young people aged between the age of 18 and 38. However the education prospects don't necessarily guarantee young people an entry into job market. Every year over 5000 fresh graduate mainly young people between age of 22 and 32 begin their job search but very rarely do over half of them find the jobs or even careers of their choice. Kenya,after south Africa has one of the most competitive job market in Africa. Private sector participation in creation of employment and new jobs for young people in kenya has dwindled in recent past as companies especially in manufacturing,struggling to cut down due to arising costs of production and increase in taxes. CHALLENGES Kenyan entrepreneurs face challenges on how to network and meet potential investors,penetrate new market and generally interact with other like minded entrepreneurs. This lack of know howono meet or approach potential investors,hhinders entrepreneurs from exploiting the business potential that the country has to offer and it creates a quadrupling effect on the widening unemployment gap of unempunemployability amongst the youth. Without business networking,most entrepreneurs are forced to learn though mistakes,some of which prove costly to their business. To young entrepreneurs who have got no practical know how to avoid common patholes in industry. SOLUTIONS with high rates of unemployment,many young Kenyans have taken to social entrepreneurship with a good number of them looking into e-commerce and online freelancing as a source of employment. A number of young entrepreneurs in kenya are today managing companies and businesses that started off online. As a young identity problems and seek for ways to address it technologically or otherwise. This way you will have created not only a solution to existing social gaps in the society but a steady employment for yourself and many others. BY. ELIJAH KIBE

Cash management

Tips on cash management By ELIJAH Presented on the CEOs HUB Kenya group, 7th of April 7, 2016 “I will be taking us through some tips on cash management now that it's a great concern.. Cash is the most liquid of assets and it represents the lifeblood for growth and investment. In order to generate cash, we must efficiently and effectively manage the activities that provide cash. These activities include billing customers as quickly as possible, disbursing payments only when they come due, collecting cash on overdue accounts, and investing idle cash. Therefore, managing cash flow involves several objectives: √Accelerating cash inflows wherever possible. √Delaying cash outflows until they come due. Investing surplus cash to earn a rate of return. √Borrowing cash at the best possible terms. √Maintaining an optimal level of cash that is neither excessive nor deficient. We will attempt to outline how these objectives can be met by trying to answer the following questions: *How much cash do we need to run our business? *How much cash is locked-up in other current assets? *How long does it take to collect our cash from customers? *How much cash should we hold? *How do we cover cash deficits? *How do we identify problems with cash flow? The 2nd cycle is.. Receipt Cycle: The total time between when products or services are delivered and when payment from the customer clears the bank. Lesson 2. Cash flow management consists of several activities: Collecting accounts receivable, processing vendor payments, etc. We need to understand the time involved with each of these activities before we can properly plan our cash flows. Since cash consists of disbursements and receipts, we can think of cash flow in terms of two cycles. Disbursement Cycle: The total time between when an obligation occurs and when the payment clears the bank. The overall objective within the Disbursement Cycle is to increase the cycle time; i.e. delay making payments until they are due. We can delay payments by: >Mailing checks from locations not close to customers. This will increase the mail time or mail float within the disbursement cycle. >Disbursing checks from a remote bank. This will increase the time required for the payment to clear the bank; i.e. clearance float. >Purchasing with credit cards so that the time required for making payment is much longer. By using a credit card, you will receive a bill at the end of the month payable in 30 days. This creates more processing time or processing float. Therefore, when we manage cash flow cycles, we try to control three types of float times: •Mail Float: Time spent in the mail. •Clearance Float: Time spent trying to clear the bank. •Processing Float: Time required to process cash flow transactions. NB. By increasing the float times within disbursements, we have the use of cash for several more days. This is a source of spontaneous financing and we can measure our cash savings. The overall objective within the Receipts Cycle is to decrease the cycle; i.e. shorten the time necessary to collect and have use of cash. We can shorten the receipt cycle by: √Invoicing customers as quickly as possible. √Taking immediate action when a customer becomes delinquent. √Rewarding customers for making early payment by offering a discount. √Imposing a finance charge on customers that are seriously delinquent. √Evaluating the financial soundness of customers before extending credit. √Accepting credit cards for payment. √Issuing monthly statements to remind customers of amounts owed. √Placing collection centers near customers and/or having banks control deposits. **** You may also adopt : A lockbox system is an example of placing control with the bank. Under a lockbox system, customers send payments to a lockbox which is cleared daily by the bank. This can reduce processing time for deposits and reduce clearance float. Before adopting a lockbox system, you should weigh the costs versus the benefits MONITORING CASH FLOWS. Measuring Cycle Times In order to monitor progress in managing cash, it is useful to understand how much cash is locked-up; i.e. not available to us. We can get an idea of cycle times by looking at average days in inventory, average days in receivables, and average days in payables. These three components cover the two basic cash flow cycles, disbursements and receipts. a: Average Days in Inventory = Average Inventory Balance / Average Daily Cost of Goods Sold b: Average Days in Receivables = Average Receivable Balance / Average Daily Credit Sales c: Average Days in Payables = Average Payables Balance / Average Daily Purchases on Account The overall cash flow cycle time is calculated as: a + b - c; i.e. inventory and receivables tie up cash receipts less payables for disbursements Lesson 3. Failure to PLAN,is PLANING to fail, this brings us to next very important aspect of managing cash,ie PLANING. Cash Flow Planning One of the objectives of cash flow management is to hold the right amount of cash. If we hold too much cash, we lose the opportunity to earn a return on idle cash. If we hold too little cash, we run the risk of not making timely payments to suppliers, banks, and other parties. We want to have an optimal cash balance that is neither excessive nor deficient. The optimal cash balance is determined by looking at the four reasons for holding cash: =Transaction Amounts: We have to hold enough cash to cover our outstanding payments or transactions. In addition to transaction amounts, we should add any compensating balances required under loan agreements. Therefore, the amount of cash on hand must be transaction amounts + compensating balances. =Precautionary Amounts: We need to maintain cash for unexpected disbursements. This is the precautionary amount of cash. =Speculative Amounts: If we are anticipating making an investment, we will hold a speculative amount to take advantage of opportunities in the marketplace. =Financial Amounts: In order to acquire assets, retire debt, or meet some major event, we will accumulate and hold a financial amount of cash. NB. Key Point (The minimal cash balance is usually equal to the total transaction amount (includes compensating balances) + total precautionary amount. #Cash Flow Forecasting One of the best ways to determine the optimal cash balance is to fully understand cash flow patterns. This requires that we plot cash flows and prepare a forecast. A cash flow forecast gives us a detail projection of future cash inflows and outflows. This will help us avoid cash deficiencies as well as excessive cash balances. A cash flow forecast also answers several questions, such as how long can we invest idle cash, when will it be necessary to borrow cash, and when can we purchase new capital assets? A typical cash flow forecast will include: Cash on Hand, Expected Receipts, and Expected Disbursements. Each major receipt and disbursement should be listed as a separate line item. Finally, consider the following points when preparing cash flow forecasts: 1.Prepare cash forecasts for shorter periods of time (weekly or daily) if cash flows are tight. 2.Use available data as much as possible to prepare cash flow forecasts. 3.If necessary, prepare two forecasts: Early 4.Warning Forecast for longer periods of time (six months) and Targeted Forecast for shorter periods of time (weekly). 5.Be advised that cash flow forecasting is extremely difficult in periods of rapid growth. 6.Special Bank Accounts NB. One method for maintaining an optimal cash balance is to use Zero Balance Accounts, Sweep Accounts, and Investment Accounts. These accounts will automatically invest surplus cash while still serving as your main transaction account. Disbursements are cleared through a special account which has just enough cash to cover all transactions. The Bank makes a "sweep" of the account and takes any surplus cash and places it into a money market account. Money market accounts are one of the most popular accounts for investing surplus cash. Brokerage houses also offer investment accounts which sometimes earn slightly higher rates than money market accounts. When deciding which types of accounts to use, consider the following guidelines: >If your average daily surplus cash exceeds $ 500,000, setup a direct overnight investment program with a brokerage house. >If your average daily surplus cash exceeds $ 50,000, but is well below $ 500,000, setup a sweep account with your bank. >If your average daily surplus cash is below $ 50,000, consider using a regular investment account with a brokerage house. Note. The above figures are estimates.. The overall collection process should be pro-active and preventative. For example, wherever possible try to collect payment immediately as products or services are delivered. This eliminates the need for invoicing and follow-up collection. Require deposits from customers that have a history of late payments. Use credit applications to weed-out bad customers. Include a clause in the credit application that states all collection costs are reimbursed by the customer on delinquent accounts. Finally, if you receive payment in the form of a bad check, retain the check as evidence that you have a valid claim. Disbursement Practices How you manage various disbursements and current assets can have a big impact on cash flows. There are several problem areas to watch-out for, such as payroll, purchasing, inventories, and insurance. Payroll: Payroll is a large cash outflow and requires special attention. One obvious trend in payroll is to implement a flexible workforce since the flow of work fluctuates. Outsourcing and temporary workers are often part of a flexible workforce. Retain a full-time workforce for core activities. You can also increase payroll float times by simply distributing payroll checks after 2:00 p.m. Banks will not clear payroll checks until the following week. Purchasing: Flexible purchasing can help cash flow. Consider renting certain items as opposed to purchasing. Ask yourself do we really need this item and how often will we use it? If practical, order items out-of-season when prices are low. Finally, consider using credit cards to make purchases since this will give you more time for making payment. Inventory: Inventories have several hidden costs that can drain cash flow. These costs include storage, insurance, spoilage, handling, taxes, and financing. Get rid of inventory that is not moving. Obsolete inventory should be removed immediately. Find new ways of disposing of inventory. For example, it is better to sell inventory at costs than not at all. Your overall objective is to maintain inventory levels at a profitable level. Insurance: Make sure you do not over insure your business. Purchase insurance in group packages to obtain the lowest premiums. Start by covering your largest risks first. Structure as high a deductible as you can afford. Avoid duplication and excessive insurance. Shift certain costs, such as health insurance to the employee through higher payroll deductions. Insurance should be used to cover risks that are material, but occur infrequently. Warning Signs One important element in cash flow management is to fully understand the warning signs of cash flow distress. Some early warning signs include: Cash balances are low compared to historical balances. Inventory is not moving. Vendor payments are made late. Banks are requesting financial statements. Major purchases have to be postponed. Management has become very risk adverse; i.e. overly cautious about spending money. One way to monitor cash flow is to track liquidity ratios and compare these ratios to historical ratios and/or industry averages. Some examples include: Current Ratio = Current Assets / Current Liabilities Acid Test = Cash + Accounts Receivable + Marketable Securities / Current Liabilities Cash Flow to Debt Ratio = Cash Flow / Total Debt Cash Flow to Income Ratio = Operating Cash Flow / Net Income Another warning sign is an unfavorable Z Score. The Z Score is about 90% accurate in predicting bankruptcy in the first year and about 80% accurate the second year. The Z Score combines five ratios and compares the result to a scoring scale. A weight is assigned to each ratio. The Z Score is calculated as follows: Z = 1.2 (A) + 1.4 (B) + 3.3 (C) + .6 (D) + .999 (E) A: working capital / total assets B: retained earnings / total assets C: earnings before interest taxes / total assets D: market value of equities / book value of debt E: sales / total assets The scoring scale for the Z Score is: If the Z Score is 1.8 or less, there is a very high probability of bankruptcy. If the Z Score is 1.81 to 2.99, we are not sure about bankruptcy. If the Z Score is 3.0 or higher, bankruptcy is unlikely. In addition to bank financing, you can borrow against your assets from a financing company. Accounts Receivable is a liquid asset that provides a form of financing. In order to borrow against your accounts receivable, you must meet the following criteria: Receivables are related to the sale of merchandise and not services. Receivable customers are financially sound and there is a high probability of payment. Receivable customers obtain title to merchandise when it is shipped. Your overall receivable balance is at least $ 50,000 with sales that are substantially higher than your receivable balance. There are two forms of receivable financing, factoring and assignments. 1.Factoring: Under this form of financing, you sell your receivables to the financing company. You receive the face value of the receivable less a commission charge. The financing company assumes responsibility for collecting the receivable. Factoring gives you immediate cash and freedom from collecting from customers. However, it is costly and it sometimes confuses customers since they now make payment to a financing company. 2.Assignment: Under this arrangement, you transfer or assign your receivables over to the financing company. However, you still retain ownership of the receivables. The financing company advances 60% to 80% of the receivable balance. You continue to collect the receivables and the financing company charges you interest and service fees on the borrowed funds. Inventory Financing: Inventory financing is similar to receivable financing. Inventory financing has the following requirements: Inventory must be highly marketable. Inventory is non-perishable and not subject to obsolescence. Inventory prices are relatively stable. There are three forms of inventory financing: *Floating or Blanket Liens: The financing company will place a lien on your inventory; i.e. they obtain a security interest in your inventory in exchange for lending you cash. You continue to manage and control the inventory. Warehouse Receipts: The financing company obtains an interest in a certain segment or part of your inventory. You will have to separate the inventory that you use for financing from the inventory not used for financing. This may require physical separation as well as separate accounting. *Trust Receipts: The financing company lends you money for a specific item in your inventory until you are able to sell it. When you receive cash for the inventory sale, you pay the financing company. For example, car dealerships often buy automobiles by financing the purchase. When the car is sold, they payoff the financing company. Lesson 4 SHORT TERM FINANCING. Part of managing cash flows is to understand how to finance operating cash flows. We previously discussed how to predict cash deficits with forecasting. We now have to understand how to finance our cash flow deficits. Whenever we use short-term financing to cover cash deficits, we must consider costs, risks, restrictions imposed upon the organization, financing flexibility, our current financial situation, and other factors. Some of the questions we need to ask include: *How long will we need financing? *How much cash do we need? *How will we use the borrowed funds? *When and how will we repay the borrowed funds? The first and most practical source of financing is spontaneous financing or trade credit. By lengthening the disbursement cycle, we obtain additional cash. Once we have exhausted spontaneous sources of financing, we than use conventional sources of financing, such as bank loans, lines of credit, and asset based borrowing. Bank Financing One of your key partners in business should be your bank. Therefore, it is essential that you establish a good working relationship with a bank officer. This relationship is the basis for how you will obtain bank financing. For example, a line of credit is one way to address recurring cash deficits. You can also arrange a revolving loan. Under these arrangements, you borrow as deficits occur up to a maximum amount. Unless you have excellent credit, you will be required to put up collateral (such as receivables, inventory, etc.). The bank may also require a commitment fee or compensating balance (percentage of loan). Some key points about bank financing are: √Make arrangements to borrow when you least need it. This is the best way to obtain favorable terms and conditions for short-term financing. √Borrow more than you think you will need. Many organizations under-estimate the amount of borrowing required for short-term financing. √The moment you think you will need short term financing, begin preparing immediately. √Bank financing takes time to arrange and execute. √Borrow to meet your strategic plans, not to avoid possible bankruptcy. Banks are much more receptive to financing when it fits with some type of long-term plan. √Make sure you maintain the best possible relationship with the bank. Send regular reports and information to the bank officer. Summary Managing cash flow is a major balancing act between making sure all obligations are paid on time, doing everything you can to collect cash as quickly as possible, and not holding excessive cash balances. An understanding of cash flow cycles is an important first step in managing cash flows. Once you understand the cycles, you want to lengthen the disbursement cycle and shorten the receipt cycle. Controlling float times is a common way of adjusting cash flow cycle times. In order to understand the magnitude and timing of cash flows, you need to plot cash flows. This leads to the use of cash flow forecasts. Cash flow forecasts help optimize the amount of cash that should be held. Cash flow forecasts also help identify when short-term financing will be required. Finally, be aware that cash flows are influenced by many factors, ranging from payroll to inventories. A static workforce and runaway inventories can be detrimental to cash flows. You need to be aware of the warning signs of cash flow distress, such as late vendor payments and delayed purchases. Finally,I'll share one of my favourite quotes bout money..hope u will like it too.. “Dogs have no money. Isn’t that amazing? They’re broke their entire lives. But they get through. You know why dogs have no money? .. No Pockets.” – Jerry Seinfeld Thank you so much for your time, in case of any questions, I can answer them in the evening. Good afternoon..” Yours ELIJAH, ENTREPRENEUR, FINANCIAL ANALYSIS STUDENT.te

Wait for the lord

I was blessed by this piece so I decided to share. One day a local evangelist bragged during a crusade that his God was more able than all the other gods in the town and the powers of the universe that the villagers worshiped put together. Just then, rainstorm sounds started sounding overhead, threatening the progress of the crusade. The evangelist lifted up his voice and declared with confidence that if the rains fell, then he wasn't a man of God; he would stop preaching! Before he could finish his bluff, the rains began to hit the crusade grounds so vehemently, apparently in disregard to his declarations. The whole town left the crusade grounds to their houses, shaking their heads in disappointment and dismay. The evangelist, so distraught and angry, packed his belongings and left the town the next day. On his way through the next town, he checked into a local drinking spot and drank himself to stupor. As he laid on the ground cursing God, an old seedy looking man tapped him gently on the shoulder. "Man of God", the old man began. But the evangelist quickly cut in, "don't mention the name of God to me. He is fake. He is unreliable. I am no longer a believer in this God. A God who chooses to disgrace his servants. Leave me alone!" But the old man would not let him be. He continued,"I am the fetish priest in the village you just preached at. During your one week stay in that village, you destroyed all the charms I had made on the people for 45 years. Your prayers and your words always came with some fearful fire and power. I tried so many times to eliminate you but i couldn't. My last chance came yesterday. I had loaded my gun with gun powder lying wait on the mountaintop where I had a very clear view of you. My plan was to shoot you from a distance since I couldn't get close enough to you due to the fire around you. But just when i lifted the gun, the rains came from nowhere, wetting my gunpowder and covering you in a cloud so that I couldn't even see you. All I saw was a bright man holding a sword in front of you. I was so terrified. I concluded that your God was indeed all powerful and Almighty. That is why I've been looking for you since then. I want to follow this your God!" The ex-evangelist bowed his head in shame! Dear friends, sometimes, it is just wise for us to believe that our Father knows the way He is taking us. We should just trust His leading. Let our boast be in the Lord, not in ourselves. If we decree a thing and it doesn't happen, let us not see it as disappointment or dishonor from the Father. Let us just believe that the Father wants his perfect will to be done in all things no plus ones

Self realization

When I realised who I am I analyzed all my weaknesses and strengths. My strengths motivate me while am working day to night to change my weaknesses into strength. I can't change my yesterday but I can change my tomorrow.