Losing profits

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.

Banking is essential to our businesses, with funds deposited and withdrawn for payments of goods and services purchased.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.