Losing profits

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It is obviously hard enough to generate profit, but to lose profit is undeniably unacceptable! And yet most of us do not realize we actually lose profits, whether unwittingly or simply because we are not paying attention. Of course, there is the issue of identifying profits, to be able to manage the funds properly in advance. With inflation at 4 percent per annum, we lose by parking our funds in Philippine banks, whichever way one looks at it. Many will say, this is the job of finance, and possibly accounting, but as managers they should know where profits are measured and generated. After all, who in their right mind would allow themselves to lose funds? For every P100,000 of profit we lose P4,000 and for every million, P40,000. Should we then park these funds in savings? It may not sound like much to some but multiply this with more millions and the amount becomes staggering and worrisome.

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Banking is essential to our businesses, with funds deposited and withdrawn for payments of goods and services purchased. Our operating funds necessarily have to be managed with the help of banks. However, having identified profits, the process will require prudent management as to how to maintain the value of our peso. We, as marketers, get so involved in generating sales and profits that we tend to forget how we lose substantially even when we achieve stellar sales and profit.

This comes to mind when we are presented with the opportunity—most would initially listen to presentations when funds are readily available, but trivialize the presentation as they get busy exploring ways to generate funds. Ironic, isn’t it? Many explore the idea of proprietorship, and most would commonly venture into the restaurant business and the like, thinking that is the way to maximizing profits even when that is not their area of core competence. So they end up losing even more funds. Many bankers in this country call themselves professionals with fancy titles, such as investment portfolio managers. But if they are competent, why are they employed in banks with rank-and-file wages? In some countries a bare trustee is in place, regulated and secured not only by the bank but by the state itself. Interestingly enough, no regulations exist and investments, more often than not, become expensive. Our poor overseas Filipino workers, who we hail as heroes, are oftentimes harassed by investment peddlers on the streets selling condominium units for “investment.” In fact, these buildings have high vacancy rates and maintenance fees, including prohibitive association dues.Learn of these investments and stop losing your profits. Call on Superbrands.

Harry.tambuatco@superbrands.com
Harrytambuatco@gmail.com

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