A. Ability to raise short-term capital.
At the current moment Timberlake has no ability to liquidate assets or increase cash on hand in any meaningful way. Their budget offers little room for flexibility and their existing contingency regarding short-term capital falls on the current member’s generosity. This is an obvious limitation in their current business structure and needs to be addressed promptly in order to adequately deal with potential disaster. If an event occurs where Timberlake would need quick capital they would be in a dire situation with nowhere to foreseeably turn. We would suggest that Timberlake emplaces a viable contingency plan to increase their margin of safety. An example of this would be to increase cash on hand or investment in a fund that can be quickly liquidated.
B. Ability to raise long-term capital.
At the current moment Timberlake has a lacking ability to generate long-term capital. Most of their long-term capital arises in the form of debt in which they must co-sign for with property owners. I view this as limitation because they have one major method of acquiring funds and even that method is limited with their need for a co-signer. We suggest that Timblerlake focuses …show more content…
Although they have a working budget, their ability to reduce cost when needed is relatively low. We view this as a negative because of their inability to reduce cost in a bind. A business must be flexible when it comes to controlling costs and preparing for periods of low revenue volume. Timberlake is certainly on the right track in terms of budget control, but there is still room to improve. We suggest that Timberlake implement processes that allow them to better control costs, such as evaluating current facilities in order to eradicate costly items and replace them with profitable
At the current moment Timberlake has no ability to liquidate assets or increase cash on hand in any meaningful way. Their budget offers little room for flexibility and their existing contingency regarding short-term capital falls on the current member’s generosity. This is an obvious limitation in their current business structure and needs to be addressed promptly in order to adequately deal with potential disaster. If an event occurs where Timberlake would need quick capital they would be in a dire situation with nowhere to foreseeably turn. We would suggest that Timberlake emplaces a viable contingency plan to increase their margin of safety. An example of this would be to increase cash on hand or investment in a fund that can be quickly liquidated.
B. Ability to raise long-term capital.
At the current moment Timberlake has a lacking ability to generate long-term capital. Most of their long-term capital arises in the form of debt in which they must co-sign for with property owners. I view this as limitation because they have one major method of acquiring funds and even that method is limited with their need for a co-signer. We suggest that Timblerlake focuses …show more content…
Although they have a working budget, their ability to reduce cost when needed is relatively low. We view this as a negative because of their inability to reduce cost in a bind. A business must be flexible when it comes to controlling costs and preparing for periods of low revenue volume. Timberlake is certainly on the right track in terms of budget control, but there is still room to improve. We suggest that Timberlake implement processes that allow them to better control costs, such as evaluating current facilities in order to eradicate costly items and replace them with profitable