Quite the opening blog post title, huh? Let’s get straight to it.
(A): Assume a business (4 equal partners) has found a way to make $20K/project. Great, right? Yes, now on to the next one–decision, that is. How much money do you need to fund the people and materials needed to execute the next profitable project (operating costs)? If you don’t know, find out. What do you do?
(B): The Answer to (A) above depends on whether you need your ~$5K share of project profit. Because you likely have suppliers, your net income may be ~$3K. If you don’t have suppliers, you should because transactions create opportunities to create and/or extract monetary value.
- (A1) If you want/need the cash now, you will ask for your ~$5K project share in cash.
- (A2) If you don’t want/need the cash now, you can reinvest your project share as a capital contribution into the next project
- (A3) If…, and so on
This hypothetical decision may seem simple enough to make. But what about the unknown, assumptions and implications of the hypothetical? Kaiban Consulting shows you how to quickly identify and extract tangible value from unnoticed opportunities. Over the next four of this five-part series, we’ll talk about:
- Contract language needed to ensure your decisions are carried out;
- Supply Chain improvements to make $5K (25%) more on the next project;
- How, if at all, you plan to finance future projects; and
- Who you need in your business network for transactions and advice