Cash Management Plan Memo

CashManagement Plan Memo

CashManagement Plan Memo



Cash Management Plan

Thecash management plan aims at ensuring that the needs of all partnersare put into consideration. The business requires expanding, and atthe same time, there is the need for all the stakeholders to feelthat they have to benefit something from the same. As a result,several suggestions are put forth to aid in such a case. Given thefact that the entity generates about $8,673,000 each year, this moneycould be split into proportions and each directed towards variousventures. Under all factors remaining constant, thirty percent of therevenue generated may need to be ploughed back into the business soas to ensure that it continued growing (Stulz, 2014).

Notably,such money could assist in putting up new business ventures as wellas boosting the one that already exists through enlarging its scaleof operation. Ten percent of the revenue could be put intomaintaining the building that houses the physicians and otherstructures that the group owns so as to make them appealing andhabitable. Besides, the funds will cater for any replacements thatmay be deemed necessary for the venture.

Fortypercent of the proceeds can be shared among the partners by theamount of shares held. Such a measure will help ensure that there isan equitable distribution. The group could save about ten percent ofthe revenues realized in a fixed account that offers very minimalrisk. Thereby, this will ensuring that the partners would be able tocollect some profits at the end of a given period (Mengel, &ampWouters, 2015). The remaining ten percent could be left to handle anyemergencies or miscellaneous activities, including deeds in communitysocial responsibility that may come up.

Someof the issues that could face the financial landscape may include thedifferent views that each member has, which are quite varying. Themembers may, therefore, need to reach on some form of agreementregarding the said issues (Nguyen, Locke, &amp Reddy, 2014). Otherscomprise the modalities of disbursing dividends will be released tothe partners as a piecemeal of in lump sum. Additional matters couldalso touch on the amount of money that may need to be plowed back tothe business (Giacosa, Broccardo, &amp Rossi, 2016). Such issuesshould be addressed more deeply by members.


Giacosa,E., Broccardo, L., &amp Rossi, M. (2016). The financial leverage inmedium-sized companies: an Italian survey.&nbspInternationalJournal of Globalization and Small Business,&nbsp8(2),101-116.

Mengel,S., &amp Wouters, M. (2015). Financial planning and control in verysmall start-up companies: antecedents and effects on companyperformance.&nbspInternationalJournal of Entrepreneurship and Small Business,26(2),191-216.

Nguyen,T., Locke, S., &amp Reddy, K. (2014). A dynamic estimation ofgovernance structures and financial performance for Singaporeancompanies.&nbspEconomicModelling,&nbsp40,1-11.

Stulz,R. (2014). How Companies Can Use Hedging to Create Shareholder Value(Digest Summary).&nbspCFADigest,&nbsp44(7).