Making or having lots of money is not equal to making a profit in business. Most businesses close because of different cash mirages that occur leading to failure to optimise their business. In this article, we are going to identify three different mirages that can occur to a business which then obstruct its ability to operate as it should. The efficiency with which cash is used in a business will also determine the effectiveness of its operational optimisation and the ultimate value a shareholder will receive.

Winston Zvirikuzhe

Lots of capital trap
When a corporate starts, it normally has a lot of capital at its disposal, which can seem like a lot of money. So a company could start with $200 million and the managers may believe that they…

Read the full article at: http://www.thestandard.co.zw/2016/02/28/how-to-avoid-cash-mirage-when-running-a-business/