Peterka

As a trustee of a charitable trust I have to be sure we have a secure way to control cash flow. The trust provides buggies for the mobility impaired at events around the UK.

Trustees we give their time free and the trust has three part time employees who with the support of volunteers provide the services at the events and management of all operations including cash flow.

To give an indication of scale we move the 130 buggies around the UK in 4 - 40 foot trailers as currently we attend 42 events this year. Our Operations Manager and the Administrator plan the vehicle movements and attendance at the various events with meticulous care. They control cash flow very well. The whole operation works like clockwork during the summer season, which is the busy time.

Since becoming a trustee I have been impressed by the efficient way the trust operates in providing such a worthwhile service. Which is due to the detailed planning and control. We now have to do some planning of a slightly different nature and it is testing our staff. It is interesting how much common to online and offline businesses and there is no reason why a charitable trust should be different.

Demand for attendance at more events is such that the staff may have to go to full time operation. This will come with additional costs. The decision is therefore important. Do we take on more events, buy an additional trailer and more buggies plus pay the staff more as they move to full time employment?

To be able to make this decision the staff have been asked to quantify the additional events in terms of how many, where and when will they take place, what will be the additional revenue and effect on cash flow? These same people who are so good at dealing with the operational plans and cash flow control are nervous about being able to commit to this forecast. This is what is fascinating. These additional enquiries are real. The trust will have to win the business - just as would any commercial online or off line entity.

The staff are nervous about facing the reality of what is a good business situation - an opportunity to grow. They are competent people and yet can't seem to get the importance of forecasting revenue and the effect on cash flow.

I watch these developments with interest. One thing is clear, no commitment to the forecast - no decision to proceed.

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Article by Michael Harrison, Business Consultant, Author and Publisher whose specialty is helping business owners and individuals to realize and release their full potential. He has helped many people to improve their business situations and advised and supported individuals to embark on new directions in their careers.

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