Low liquidity

Sometimes low liquidity reflects cash flow problems that are part and parcel of where the company is at this time; the enterprise simply needs more cash to move forward with its game plan. This demands for present Strategic thinking of the future.

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Depth of problem

This demand for present Strategic thinking of the future, sits at level 3 of the problem causality chain of the Problem Depth Chart.

What you can do now for free

Begin to free up an asset by disposing of it to give yourself the liquidity you need.

-If necessary, borrow against that asset for the short term.

-Consider selling (an asset may be) an operational group that does not really fit in with the core purpose of the company.

-Look for unused assets such as unexploited patents or ideas that may be sellable.

What you can do now for a low cost

Review strategy and planning as detailed in Volume VIII. The more basic “What is our purpose?” issue may be a concern. Address it with information from Volume VII. Getting to the grass roots of cash needs, including obtaining cash from investors is detailed in Volume XI.

What CCCC feels you should really do

Low liquidity should not be a surprise. It suggests that the organization needs to plan its future more carefully with an all-inclusive Annual Plan session.

Related Problem Domains:  Financial

Problem Depth Chart