The importance of having a structure.
In football, we are used to hear that structure don’t win matches, they win championships.
In companies and hotels, it is quite similar. Those who think they can win without being professionally supported are experiencing ephemeral days of illusion.
Entrepreneurs certainly have their creative, visionary, and motivating role. But it is necessary to rely on a “third partner” who contributes to the achieve the true “walk the talk”. Otherwise, we can have a day of happiness, trust in a stroke of luck, but we end up deluding ourselves.
On a more financial level, the illusion usually ends, as Margaret Thatcher would say, “when other people’s money ends.” And ours, I would say.
Here, I point out some hints as an example of how having a slightly professional structure makes all the difference:
• Know how much I’m doing – how much the operation costs, how much
revenue I generate.
• Forecast cash-flows, preventing treasury constraints.
• Dialogue with financers in their own language and ensure conditions are
proportionate to access finance – cost and guarantees.
• Increase alertness and internal controls
• Manage payment terms to suppliers, so that we are seen as reliable people.
• Ensure competitive purchases – objectively speaking.
• Avoid fiscal contingencies, but also understand which possibilities are
fiscally more interesting, within fiscal regulation limits.
• Ensure access to public or community incentive systems.
In these themes, it is clear to me that the cheap often ends up being expensive. Anyone who advances with poor consulting or support team should not be surprised by the time bad luck knocks at the door.
ABC Sustainable Luxury Hospitality