FUNDS UTILIZATION STRATEGY









Set Objectives and Goals
- It is important to have an outline to be able to identify which factor is needed
to be prioritized.
Budgeting
- Create a list for the budget for all expected revenues, expenditures and also
for future growth and expansion.
Risk Management
- A very important factor in a business which contains the contingency funds,
used for unexpected circumstances.
Monitoring Cash Flow
- monitoring cash inflows and outflows closely to make sure the company can
pay its short-term debts.
Optimizing Working Capital
- Managing inventory, receivables, and payables to increase liquidity and
reduce capital costs.
Benchmarking
- Comparing financial metrics against industry standards or competitors to
identify areas for improvement.
Cost-benefit Analysis
- maximizing the value derived from available resources while minimizing
waste or unnecessary expenses.
Engaging Stakeholders
- identifying and involving individuals or groups who have an interest in or are
affected by the allocation of funds such as investors, employees,
customers, local communities, and regulatory bodies.
Diversifying Investments
- spreading out investments across a variety of asset classes, sectors,
geographical regions, and financial instruments to reduce risk and enhance
potential returns.