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Sara Momtaz
Built Environment Enthusiast & Innovator, FM Industry Expert at Mastermind Consultancy & Advisory
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Smart Built Environment Forum 2020
November 17, 2020, Online, Dubai, United Arab Emirates
Smart Built Environment Forum 2020
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Day 3: Cash Flow Management
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About the talk

Where do the issues of cash flow come from? How can we manage it during these pressing times? With growing cash flow concerns and a higher focus on ROI in an increasingly competitive space, how can the FM industry and building owners benefit and strive to progress?

Agenda:

- Where do the issues of cash flow come from? 

- How can we manage it during these pressing times? 

- With growing cash flow concerns and a higher focus on ROI in an increasingly competitive space, how can the FM industry and building owners benefit and strive to progress?

About speakers

Sara Momtaz
Built Environment Enthusiast & Innovator, FM Industry Expert at Mastermind Consultancy & Advisory
Bader Yusuf Salmeen
Facilities Management Consultant at Harvard University, John F. Kennedy School of Government
Indika Wijayarathne
Executive Director - Finance at Ejadah
Dilip Khatwani
CEO at Reliance FM

An effective, experienced Manager, with strategic thinking, positive attitude and a proven project management track record since 1998. Strengths lie in communicating at all levels with a non-judgmental attitude. Commercially astute, recognizing the importance of achieving business benefit from project expenditure and effective management of large budgets. With strong on the strategic objectives, productive business relationships. A self-motivated, flexible professional manager and a dynamic problem solver supported by excellent team building motivational skills. Managing the delivery of complex projects as an experienced leader of multi-disciplinary teams.

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Dilip holds a degree in Marine Engineering and has worked across various industries from marine to hotels and hospitals to building management. He has been the founding member for the facility management industry in South Asia and the Middle East. Apart from his corporate roles with companies such as CBRE, APJ Group Hotels, Escorts Hospitals, he has also been part of the academia as a visiting faculty professor to Heriot Watt University of UK in Dubai.

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Welcome back and you are here today now to present to you and last panel for the day, who will be discussing the cash flow Management in FM. Now. It says, one thing that covid-19 has taught us. And is that a single event can trigger a Cascade of risks, affecting all aspects of entity operation before we get into the discussion. I would like to introduce you to the panel started with Mr. Bother you. So mean the facilities management director of European companies from great. We also have with us

or indica Bonnie, the board member of magma and the Chief Executive Officer of line and the panel is being moderated by mr. Please do not let the cue enabled be held in the last 10 minutes of the discussion and we do have a networking on for you can take the discussion out there. But what do you mean? Thank you very much. Mega salaam, alaikum. Hello and good afternoon to you will welcome to the facilities management. Jay of the smart built environment for him as mentioned. By my cat. My name is Sarah and I'm absolutely

delighted and honored to be hosting today session all the way from Sunny Abu Dhabi here in the UAE. Again. I would like to whom we welcome. You hold whether or not you're from the SML real estate industry. I'm sure you will Saturday, enjoy today's events, particularly this session. We have a fantastic line-up of panelist sharing their expertise and knowledge on cash flow management topics. I will be cooking about how it's relevant free and poster covid-19 pandemic and basically, how to shape the future of FM by sending

through your questions or comments by the chat box option. And we will of course try not to as many of those this week and depending on how much time we have and you may even find some of the panelists was responding to you. In real time as we going through the actual session. So I'd like to take this opportunity to welcome each of my guests. So hello to buy their indica and did it. It's wonderful to have. You will join me in today session at SSM professionals a healthy. Cash flow is a huge factor in providing the best Service delivery standards and I searched want to Encompass this topic

around 390 Fashion Point. I'm so, let's get straight into it with the first one. So the first discussion Point, ready is the fundamentals if you like, where do the issues of cash flow come from? So if I can start with the butter and get his stuff you point, please, thank you for the introduction and welcome to love. When we talk about the cash flow during the pandemic. Mainly we are talking about that. He gets his old, the shortage of the cash flow, which make most of the businesses and especially

the f. I'm sick of suffering during that idiot. But if we will say from where they just started actually they should started by not being. You prepare dash of fluids part of the financial controls of any organization and the problem with men, especially the small organization. That part is left on when it's over for long. Of time because it was moving the smoothly and there was no hiccups. So, it's like when you have your building running too smoothly and you

don't have an emergency plan and a place although that the emergency plans, you were going to execute. It's only when there is an emergency, but you cannot operate a building. Without it has the same situation which has happened with the cash flow because they haven't had the close monitoring and they didn't have the plans today. Would the cash dividend on their cash of clothes? That's where the problems came on and also because they haven't had past experience with that issue. They wear the Strangling you through the emergency of the lack

of the cash flow trying to find solution around. But basically it's like when you are inside the emergency, your choices are limited because you haven't done your preparation and we can go through what we could do during the normal time to be able to manage our cash flow during the difficult time. So it's that can cover the the point where the issue came on. But also to add was not with the Lost commence. It is mainly that everybody could have fixed it with their

revenues. So everybody get too scared and Then what about Cash Wise in their hand, they want to keep it within their premises and not to give it to their subcontractors over. There were lawyers because they don't have a disability. How long that was going to go to go. And also because they don't have any guarantees one that cash end will be coming from their clients. So that's the situation with not the clear how the situation we're going to end up, creating

a big mess with it at the beginning. Maybe now, Things become easier and more a smoother and some of it has been resolved. But that is mainly how they issue began and why every many organization get affected by the cash flow issues. Yeah, some some good points there by there. I mean you mentioned obviously to do that. The revenue was going to is going to have a huge impact from your perspective. What is being the the biggest cash flow challenge that you faced your feet. Pressing times, we have had

difficulties in there. It is because of the financial stability of the organization and the group. So we haven't had that the difficulties with the things, but we have seen how our clients and our subcontractors we're struggling in during that. Some of them have an immediate hit with it and some of them they know that we're not going to recover of the end of the year and maybe Tilden Middle School next year. And some of them it's might take them longer than Dan. I want

organization because as I said, Financial stability. We have not being hit by this issue and we managed it because of the control measures within the organization and the stability, we have to help ourselves the suppliers and subcontractors when they should because also their survival during dr. It is a man that has been thrust. I don't want to survive alone. And by the end of that, the issue I will find myself alone and then I have to go and look for a new subcontractors, or supplier. So, we've been worried about the

people working with us and trying to keep the whole chain of business. We're thinking you hiding that. Not walls, that mean challenge. Very interested but will coming to a little bit of Supply Chain management throughout the session. Thank you very much about their I can I bring in declaring to the conversation to get his thoughts on it, please. And thank you, Sarah, and welcome to the team for this session this evening. And let me begin with. Daddy. And I think that was a statement. That's another myth about the financial stability and in

October 2020. When the gentleman offered a property and he said two points. He said that the companies that rebuild carefully have reserved managed that very well and have acquired. The best talent will have a better chance to talk with the crisis. I think this is exactly what the Bible said. And and this is the reality and the company has also built on strong fundamentals. And then the survival, during this type of difficult time is is not, not a problem, but they're going back to the initial point. Again mentioned at the very very early stage and

let me ask to Financial in size to the to the point that bothers you had with in terms of how this gas will get prizes. It's very simple mismatch between the inflows and outflows. We talked about him in usual terms. Where are the cash inflow coming from and then what, that, what that cash is used for this out loud. How does it? How does it happen in email in a business, like a Museum Industry specifically and I'll Manpower of Manpower heavy business Facility, inmate list, and the Manpower needs to be paid at the end of the month, no matter, no matter. Whether

the cash comes in or whether he can supply a commitment, how much of that Manpower as a percentage of overall cost of the company is really Our concern. And also butter also touched upon on this point. The customer credit days was a supplier credit disk and software customers. Want more days to make the payment at the same time supplies wants to pay mediately, because we have a, we have a challenging situation, to balance these two and then that results in in the cash flow because we have to balance the budget.

Supplies for the payment at the same time. The customers, what's a certain person that cut is because they also go to the same situation as we are and they specifically the issues. And as we have seen in the first three months of Enderman and the mobilization challenge, the transportation challenges and getting things. You want to get a check sign in, in a situation which was a major, the challenge that the company's pissed and I didn't do this, the de panic attacks. I think that's something that we should also talk about and

how I want to link two batteries. Because we talked about the pool panic. When we don't plan, when we are not setting for the scenario Bennett collection and everybody's please, time to preserve as much as possible and that causes a gap in the market as well as in the company as well. I want people and Sarah is the the critical supplies and sometimes opportunities for our country and all of them together in a in a critical situation and that causes the cash flow of the crisis and if it is not ready with this type of scenario planning and then the

companies get into a short-term cash that cash Grant. And that's where the cash flow Gap comes in the in in this type of situation. Just listening to what you've been saying. Is, if I kind of combined everything that you said, do you think that the FM firms and SM managers in this region? Now, have a better understanding of the significance of cash flow management? I think it's a balance and they are awesome but there are not some as well because if it all goes with the experience, we all talked about learning through experience and

ended up that learning cycle and humidity in 2008. When the financial crisis, hit the property industry, right? And then that's the last 4 3/4 years and only one was most impacted with his property. Real estate, plus the retail to some extent of disguises, went through all the sectors of the market and but what were the managers will fit to accept the challenges? I doubt and I would say it's 82 and 80% were not ready. Maybe 20% were ready because they would have had this solid financial planning of our crew out. At the DNA, in their

business writing, many of the other managers were not ready, but going to that, that was a really good learning. Very quickly learning. Everyone has now understood What does it mean? And everyone, how is ready to accept that and everyone is in a much better knowledge about how to manage the situation? I think that's, that's, that's the, the six months of what experience has brought all managers into a much better understanding, as to what the cash flow is how to mine. Is it happening and has an industry? You we have to

always be as agile as possible and ready to provide Solutions because that's basically the fundamentals of what we do. Thank you very much and indica. Let's bring it up into the conversation. Quite interested to hear your thoughts. Alright, thank you. Sarah for inviting me, for, for the session. And And will do, I'm part of the management of the company. With basic problem. I see in crisis is a systemic problem within the company. You feel better than I do. Just fine with that protect. I want to get into the design issue of companies going through cash.

Line problem with dump. He's having chest loses control of the board is Moore married to the top-line and bottom-line. Guess that's the root cause of most companies having test. If you'll see your md is is an element of In the bank and not just money. The bank money, the bank reserve College. Am I being Amaya? Pyara. The last time, your company would be over, a few things to keep in mind is from a from a perspective that you should you should be able to get it at

bottom line and testament. That's one important ones to a specific to the air companies in smolcic. One of the challenges of management is not spending enough time on finalizing Department. If you do business in person is ready to finalize contract. Finally. It's the contract to sign without speaking enough about what the payment terms like. So that elements predicted the menu of finalizing contract, contracts. Your financial controller should be part of this contract to listen important clients,

get to keep the design 11, and we talked talked about operation policy. We talked about business development. If you if you do find them to find stakeholders within the company, for example, are the responsibility of the author of make you feel that you need to make sure the money comes in on time. I think he's on time each stakeholder within the loop of things. Everybody should be sensitive. Yeah, I mean, you're absolutely right in the ideal. Well, that would be the perfect scenario. I think a lot of the challenges we have here. I'm not

sure what, you know who companies doing times that business development, but I would assume that they would have some sort of contingency there. They would incorporate some of those costs into a mobilization kind of fee, or, you know, that they would have some kind of cost where that they can at least kind of compensated. If something like this just happened. I think the challenge we have to leave here. Is that you? Do you sign these agreements and in good faith. And there is a payment time, but if the company that doesn't pay, what do you do? This is that this is the issue where

is in some parts of the world? It might be very easy to kind of take off a legal case. It's not that straightforward here. And I think this is maybe where some of the the challenges full creeper and I couldn't agree with you more. I think you're absolutely right. The fun fundamentals of what you said, makes absolute sense, and I couldn't agree with you more. I just want to ask you if you know in terms of Expectations, from a client's perspective. Do you think that they have unrealistic expectations of the FM company's cash flow during these kind of circumstances? Just to answer,

your previous question that are about, you mentioned, is it? Yes, you do sign contracts in. Good faith. And you do that. What finally would be? Sometimes fail to realize is that we feel it's important to maintain the relationship with regards to make each other client is happy in terms of service appliance. Is that finally your we are? We are we are delivering you sell it, right? And availability operations, manager. You should feed himself accountable to get, back your kti's on that level. Is

we're trying. We're making sure that we are contractually. I'm hiding with my the process, right? But you also make sure your contract and again, like I said, I couldn't agree with you more because I think that this is where we have the shortcomings. I I've seen it time and time again where s m service providers, go above and beyond within the remnants of their of their contract, just purely for the relationship management part of it, but it's the collaborations not just from one side that both parties have to work together, but you don't, you think that we have clients? I'm

about to have some kind of unrealistic expectations in terms of cash flow manager, special, penile pain, you know, what rhymes with that scenario are process-oriented with men is the top to bottom process. Well, I think you're the client in touch with you. You just don't know what's going to happen when. So that that's kind of integration line is very critical to know what's going on in and more. So now, what's going on in there? If you're not coming to know. You will get your money and you need to decide what

is going to actually be a process where we don't operate on texting. Is there a cash flow issues in the market? So one has to do to ensure the micro-level suggestions? Yeah, no good. Very good points. Thank you very much gelatin and two or three of you. I'd like to move on to our next discussion points, which is, I mean, pecan a company, but we're going to look into a little bit more detail. How can we manage cash flow management during these present? I'm so, you know, what's the best way to manage it?

And if I can start with better place, if the best way to manage the cash flow during those situation needs to be prepared for it. And there are a number of tools and number of ways of handling those issues. Usually, we should be able to manage the cash flow in the normal situation when the business is not suffering from any symptoms, and still have the continuous monitoring and to do the analysis and to do the optimization. Because even though during the normal days till Don't have

to work tomorrow and your cash flow and by referring to optimization. It's avoiding the extended cash shortage and you have to do a forecasting for your cash flow because you might have a different something to certain month or during certain periods of the year. But if you are relying on, what the hell is coming monthly, and you just to spend what you do, you have to spend to you adding that the month. That's mean, you are not the planning for at least 12 months ahead and that

we should start with. Why you having all that? The planning, but now, what we have learned from this pandemic issue, we need to do more than just the planning. We have to run scenarios. Now if my income will be reduced by certain percentage knowing that my Find, we're going to have that. How long will it going? How that's what's going to expect my cash flow. And then what are my options to deal with that the shortage or deficit and debt? For example,

one of the issues, which helped many organization is getting business line of credit, but you cannot get it when you are in trouble because everyone everybody is rushing for. So basically you have to secure those, an agreement with your financial provider before you get into the financial trouble. So they had to use it. And also noticing when you are running into the cash flow problems, not to rely on only and getting your money from your clients because Most of the clients they are not paying you because they don't

have that cash or they was going to pay. What is our comes on top of their priority list for them. And the service provider or bats, in organizations, might not be on the table. They have other people's which they have to bathe them. So what are the other options and also looking into those? So don't we should not only just wait for the cash to come. It's an industrial and I've been serviceable, Vidal can help clients to pass that. And to reduce their costs because insisting and getting my whole money, without the trying to help my client. I'm not going to get it because the money is

not coming to the client. Otherwise you would have paid me on time with the same amount so far. What you going through negotiation, monitoring my client's situation? If I know my clients will not, will it be in deep trouble? And he will not going to recover from the hits of the time they make for the next with safe to? Well Mom. Will it be wise just to go and continue providing the service for that are coming it with Mom knowing that my clients might have trouble with the other suppliers

and vendors and stakeholders around his business. So we have to change the way we are thinking. It's not that. What are you should get my the contract or by the agreements with my clients, but I have to find solution for my car to polish that's. Then for both of us to survive and buy also me surviving. I should post that benefit to my subcontractors and my subsidies. Were they? Also survived. So yes, we might not all make the same profit or we might be a little lost but still

we can survive that. So there are number of issues which we have we can look at to solve the cash flow problems. Reducing operational areas by myself and my clients trying to find solution for getting the credit delaying. Some payments renegotiating with the suppliers. I know some of the supplies they are insisting now on getting 50% over the whole full payment before they deliver the services, but if you go and negotiate with them if they have that items or not the stuff already in the store. It is better for them to get it out now and

get it in the store and not be The business. So if I can do part of the payment, that's what's going to help them. And also is going to tell me to keep my client running. But if my client is indeed trouble, then it's won't help him. Buy me continuing of providing the service and hoping he was going to pay me at the end. So we have to be more flexible more resilience in this area and to be proactive with the other clients and extend our health student,

what Philip, and indica was always just previously talking about in terms of another communication and managing that relationship. But ultimately, if we're providing a service, we need to get paid for it. Because that's that's that that's the whole purpose of our business model and and and you're absolutely right. There has to be some kind of negotiation understanding on how everybody knew parties together confessed. Through this difficult time in terms of fuel supply chain. How do you have? You had any

major challenges? Will Hydro supply chain being affected during the pandemic? And I said, because if our financial stability, we wear the struggling with the mystics and maintaining the size for our client. And that is where most of our winter during the specially. The full lockdown. To be honest. We haven't had that a shortage of cash to struggle with that. We haven't had that problem, but I want to clients many of them. They had that problem. So many of them, they have delayed our payments and we have to manage with our reserves and the credits, which we have with the

organization and also wouldn't know what to do. So We haven't had a great picture on that, being my suppliers and keeping them on, on the business and even and sometimes maybe we have been before the terms of the payments just to help them because we know that others are not paying them. So we are trying just to keep everybody floating within that that's good. That's great to hear. Thank you very much if I can bring into kind into the conversation and how can we best manage

cash flow management during this time? I think that I did it again the other day which is talking about the, the photos and scenario planning, as well. As being part of our customers are very important Point Dr. Many players sometimes Miss because they they they think about themselves and then they know that you're as we have we are working with the top customers in one side and supplies. In another side. I would like to bring a bit of a framework into this. I think that would do. I put some thought into that time that you can put these lying when he talked about

managing a sad situation. I think it's very important to build a Robot Framework. I think I did that and they lived very clearly mentioned. I really like that statement being a professional A collection of policy to talk about the situation and policy that applies always, we need to take into account the video. And then that way we need to have a frame book in play the preamble to talk about. And these are not talking about very technical things in a company. But within our routine, we

need to come up with this framework. And one of the key point is that is the Regency, right? And then drink and some cash flow will increase in cash flows for payroll short-term payment and then how can we sing sing, sing fence, supplier p.m. Listen to a customer collection phone. But if they come in that way, and which we have a number of ways of doing that, and that's the one another way to look into that. And also it's very important. I'd end of the day. We talk about cash to catch sight of what are the cats? Okay? Cycle mean, the cash coming into the organization

and then being being paid out the supplier and they're waiting in the business. I think most of the time that we see and didn't give a very valid point on that phone that you or the general that the management. And look at the income statement and the during the financial crisis. This tendency has to be changed. Its income statement, vs. Kyle, the balance sheet. And I think what we talked about the income statement, he always want to do to maintain our bottom line. And then also at the same time, as the management team needs to to

bring this perspective of, how do I maintain cash. How do I maintain my receiver? Listen? How do I maintain my neighbor's days? I think that's very important. And keep that in mind. And when we talked about balancing, this we also have to look at Action has a reaction as well. And if we are managing our cash and then push the apply payment and then that will have a situation of not being able to be in partnership with them. We need to maintain a population, organisations and Body

in this time, but you always say that. I think we need to be at, for the financial difficulties. We all need to think about as they forced to step down to see if and the product managers had to step up to. And that's why I think we struggle, I think after second third month, as I said earlier, we all started thinking the same. And that's Point number two activities that the other thing, you know, that's very important. We have to think out of all the books you had to think what are the ways of minimizing expenses and I want to bring one important Point here. Sarah.

We always talked about and like we all know about this being a player and the variable is something that we can always manage as and when the situations change the pixie something that that's the difficult to avoid and then it during the financial difficulties. We should try and convert some of the fridge goes into area because I don't think I have enough time to explain it in more detail later, but then it can talk to it and then we can manage the cats closed according

to the to the situation. And then you're stuck with heavy, fix coast and resilient. Facing a crisis situation is something, which is a very challenging. I think that we had more time. We can talk about this in more detail. I can decide that you were you at 6. We should be. We cannot put in place. And then that's a framework. Which I talked about having taken all of this into account, and continuous monitoring is very important. And when you talk about this, it's a variable costs avoid as much as possible

control as much as possible to minimize as much as possible. And that way, we can strike a balance between the between the frozen cow, close her and and then we can do it during difficult times. And I think that that will certainly help pay for the salad. Made a lot of friends in the past few months within your company. Is the next 6 months and it would be the same. Give us some some kind of advice in terms of what companies can do to put in the framework for you pretty much on to that. I like the fact that you mentioned. I think something that's

extremely significant and maybe at some time, Costco, open in terms of trying to change those fixed costs. So, you know, we've heard stories about some of the companies reducing those pics cuz we're even heard stories about companies that actually, you have taken. I'm reductions in their salary. So kind of senior members of the companies to try and encourage her to be a little bit more help you through this time. So thank you very much for that, Indica. Let's bring it back in and get his inside, please. Yeah, I have a great great points from Indica

at some point, which is fine. I'm a disagree with 206 points, which is practically expected to ideas with switches work with us, you know, and and and I I like the stone with bigger uses. The frame book is the two key elements, and probably. is to have a Have a stick with a team, which is from Williston Park, regular and there are meetings which I had as well, which is part of the operation directly in touch, with plots. And from there, right? From a cycle of indirect

stakeholders in touch with the client bar Edmond to collection to finance. They have regular meetings on a on a weekly basis to see how the process and I would have another meeting on top with my manager and see something because what happens is the more layers you have in this whole process of getting gas on time for the caskets. More cash collection gets the more you make a hierarchy on Facebook, which I feel helpless do cash flow management. You need to be very important to be in touch with your clients.

Is that relationship and it's an element? If you don't know your client? Well, you don't know what's what is going to be in that process of the business cycle. If he made a promise to give me 3 months, 6 months, you have to understand. This is business challenge relationship to understand. Oh, you would be able to give you and it's not. You need to decide in the plant, you know, some of the time you don't get deeper, understanding. The relationship are having from their businesses and for that

relationship. And I think today is is most critical to any time under percent and also, you know, that that was so brings into that, the trust Factor, you go to have that trust relationship with the, with the clients and the transparency, because you're nobody to touch upon this Saturday run automatically. We're all in this together and we go to see how we can work together to kind of, you know, make the best out of a bad situation and get. If I wanted to talk to you little bit about service

charge. I'll be interested to get your thoughts on that. This story. Have, you seen an impact against the service charge collections, that have contributed to cash flow for SM companies? Guess, you know those jobs as you know, when, you know, every unit has been properly. If you see the cycle from March onward, march to do a service charge respected because, you know, it's all shut down and, you know, how to how to collect money, transfer money. Do they sell Scotch payments app,

what's the word with that? They understood the challenge of the market and they let go of an impeachment. Best way to the trust of the of the owners within the system. The regulator went to court and if you if you don't pay, this could be the problem. So I sneaked aboard sending legal letters to people are not paying money. Now, the RTC has also come in, so you can put Roxy, taking the service that is in case the person is not paid up to the moment, this process started.

I see a big change in the past 3 months and you know, Like almonds and regulate on the steps and there's a set of chocolate and it may not be perfect. But Mr. Service providers FM service providers which which have no but I think the way the regulator and now I don't think from next year. SM companies service providers working within the scheme of the Owners Association, Willow Avenue avenue restaurant and I would say the next to collect for this portfolio of real estate would be excellent. And I would actually recommend for breakfast.

Yeah, thank you. Thank you for that. Did it. I also think we've learned a lot from the, the economic crisis that we had back. Instead of two thousand and eight times, especially around you, no service charges, but they think I agree with you. There come together very quickly, to put some kind of fundamentals in place, which has been extremely impressive. Thank you very much for that. Thank you gents. Let's go on to the third discussion point, if we can. So basically the question is with growing cash flow concerns at a higher focus on return on investment in an

increasingly competitive. How come the FM industry and building owners benefit to strive to progress. So. Soul goes into the same issues with. We have cleared before they came with this situation. Where many of the facilities you don't have to have it at the full capacity and the film industry is playing a greater role in there where they can refuse the demands on the areas and they were terrorized areas within all the facilities and the building and they should work in there because that's what's going to have them to reduce their post and be able to pass that part of that saving

today. Are they flying? The client was not going. Most of them? They don't. I'm very sources and the knowledge to determine those things. Needs little the organization of the things to make sure that weekend that you were certain areas, especially when we are talking about a production space or office space or things like that. We have to come up with those solutions to help clients. If there is no need, why should disaster space continuously maintained. As it is in full operation. That is not an

excuse for the service provider just to invoice the client. At the end of the day knowing that they were not going to be able to pay them because they utilize a shin of the space is not there and they are not good in their business. That's that's part of that element is there. And also Managing cash flow. That is not only during a difficult time. Many businesses in USA. There is a statistic saying that 82% of the businesses which pulls down it is because of our

cash flow management. So on ebooks the businesses profitable minutes,. So I cash a flu, they cannot continue their business because the lender will not going to give them any more money and their clients, they are not paying them and he cannot pay his install for what to go to the zoo on him. And then the whole thing was going to collapse, and he have to declare bankruptcy. Doctors on the normal situation. So just imagine when you have a cash flow problems with, I would say eighty or ninety percent of the stakeholders around the business. Then that has been a

time where we have to find solution ounce of the books. Not only just wait for our money to come from our flying not. This is where we have to focus on and there are many solutions. But the main issue that everyone is trying to get his music from his clients and the tractor trying to get their money from me. And then the whole world changed stuff from Richard Branson, the founder of Virgin group of the business, so, It is important that is when we are

talking about it and then order my life. So if you don't want to tell, if you don't tell me long as you don't understand how with the critical and you have different scenarios to deal with it and you have an emergency plan to recover from any deficiencies in there. You will not be able to survive on the business and the situation of the covid-19 have a proven that knows who they didn't have a plan, they suffered more. And those who had a plan, they managed to survive and will continue and will have the chance to recover. Many businesses

have diminished because of that situation because they have a stage three or four months after they have today off their stuff. They have to sell their assets and still, they're not covering their day. So they have gone from the night. So we have to Edna from this difficult lesson for the future. How to handle it. I think there are many lessons in there, but managing our financials, in during the crisis, is one of the important you think it should be a collaborative

approach where we can have everybody needs to get in together. Not just from that the interdepartmental side of it within the company, but also you will supply chain your clients. And, you know, from a very holistic view, of course, ya will situations that has. I think key elements on helping everyone and then just insisting and getting you a ride, send your full payments, but think of it all together, helping you reply, until bring your subcontractor and making everybody survived that.

But you made a reference to Richard Branson. I'll bet he's a bit upset about his current cash flow circumstances, but thank you very much for that. I bring Indica back into the conversation. I just want to let the audience know you still do have time to send us. Some questions will be taking some questions off the this particular discussion points. So feel free to drop them in the yard in the chalk box. And like I said, we'll try and get through as many as we can. Some of them had a look at. We have kind of covered

in the conversation. So I'll just take some of the questions that we haven't actually touched upon rights, Indica, please you'll run your thoughts, please. I think I oughta be thankful organizers for having this balance of three different players in the discussion. We always linked to each other and I want to gain linked to what the other side into three fundamental. I think that that drives into a, into a letter o in the business and the door 3. If I want to go to summer, I said that is Top Line growth vs. Bottom line. Do we delete mention that at very first beginning, we need to defeat the Top

Line growth vs bottom line growth and strike a balance between these two. And if we stay right, balance between the two, and then we can win the game. And the second point. Is that the prophet Moses, cash flow. And this this to where we are two different points, which we need to distinguish the Top Line vs bottom line, which is the revenue versus profit and the profit. Vs. Cash flow. And I think, I think it was Billy Paul mentioned earlier that you have a very good profit or the bottom line, and then, that means the fundamentals,

what does not not working in that organization. And therefore, it's very important to her to strike a balance and I can have it. If I knew, if I don't have cash for them to the company and they forgot their the third point is, is, is this a very kind of a very famous words and the same as weddings coming up in in financial difficulties and during crisis. And we have witnesses twice in the last decade. In 2008 SLS, 2019 and 2020, which is the lean business model. I think we cannot ignore this principle because this

principle is really important and in, in a, in a, in a financial crisis situation with fundamental, and that will allow you to, to sustain in an email in a difficult situation like this and Willie without going into detail. I will summarize few areas that with industry fundamentals. What business can try this again. No, no. Tokos time. We talked about the efficiency efficiency and we have to put the driver and then do some studies. And then come up with the areas where they

can be, can be implemented. And then pirate, I spending what is important at this point in time and spending balance between marketing, vs. Business Development, versus fundamentals of enhancing business business growth. Where should I put the money and this other thing that we Look into during a situation like this and that will help us to preserve gas. And then that can be used at the right time. For I tell you as a business, but lost all of these, especially being a feminist. We all know that how much opportunity is the current kind of drink has

created for the same player and then grab them and get them and then monetize them. And that's very important. And then go out of the non-conventional do not turn on traditional way of Revenue generation and also very important. We have the grocery list and then we will be happy. If you don't think about. During pandemic, when we, when the Titanic is over, I understand that the delete mention that if you do longer. And it has lasted for more than that, what you think. But that asked me, how long do we have to look for the growth of business? And we have

identified opportunities. And then when the pandemic is over, we are ready to go to the next place of business. I think these are the two point which I would like to add to the brothers and how we can add value and then type in this type of a difficult situations and then and maintain our high in cash. It's very interesting what you said and I mean dinner. Mentioned it earlier on in to in terms of some of the initiatives or some of the enforcement initiative. Should I say that that the

government has has provided in relation to service, charge the finance guy amongst us. All you aware of any kind of support that's being provided by the government, or any kind of financial institution to support the effects of Flonase. If you like, In different countries, it works in different way and the uae's Heavenly depending on the depart fiber sector and then and also we also understand that the private sector is mostly expected date. And then mostly local business

lines. And what day what day do mostly is that they create the tax forms and rather than encouraging business? Because in, in in European countries, all the developed countries, we see that load of garbage in traction is happening during the financial crisis, but what we have done, I think Billy mentioned that when it comes to the blood system and then the support that was given variable of late payment for house owners to have some flexibility of the payment. At the same time. They open up the economy before, anybody else. And then they make sure they can always

moving. And then this is, this is how I see what the government or the Did they have done to support this? I remember yesterday or 23rd. I want my flight was ready to leave the country on 24th of March, in the hotel, open on 26th of March, Libra, call back into hotel room in. This is just imagine the population that were said to leave the country. And now, it is back in business. I think that we should value as a citizens in this country is what the government has done. Put to make these economies movie.

Make all the operational activities and make all the elements of economy moving much faster speed than any other any other. But he's operating in the market with with independent. I think that's a fantastic thing for us. Rather than looking from garments to do subsidies or go. There is no pictures of when it comes to the financing facilities. With, he's entering Bank supporting, but more than that. I think we should all be proud of the opening up of the economy at that fast pace. Indeed. Thank you

very much, Indica. Let's bring the Lapine and get his thoughts on this place. It's it's a bit of a long question with with the growing cash flow concerns and a higher focus on return on investment in an increasingly competitive space. How can FM in the history on building out its benefit and Stripes Progressive. so I personally feel that I want to do better wait for the, you know, I know they have compared to last year the expensive under control and A kind of

emphasis to getting the process right within your company during the process of getting ready to process a live. And I made a comment about three months back, taking away positions and defining people with jobs scripture. What are the processes within organization? Is the baggage of position that I'm actually what we're supposed to be doing. I understand those bottlenecks and you better do it. Otherwise, otherwise around. It's just going to be a life-sustaining. You know, I could tell you that if he if you don't want no part of businesses with technology and

second. If you don't, if you don't get out of these positions of the Rockies, I think we can sustain our beer that some companies you can add. You can ask if you're able to do it to get into. More smarter time to get more businesses and I can also see a lot of money. I know, I know what's happening in the UK. I know as going on here as well, but some property just people together. So so I think I think the industry will get more sharper and absolutely will

thank you very much. Did it for for your insides on the future of Berserk. Ash Crow Management in a semi? I really enjoyed that we went down with the discussion points chance. I'm looking at the questions. We've actually answered all of the questions. Interesting me enough that come in which is a testament to how fascinating our discussion was and how so, Self-etching. It was recovered. A lot of points. There's an interesting statement here that's coming from. I believe, it's Abraham. I just want to read it out. He says cash flow should not be a problem. What you need to work is to

identify revenue, leakages, and Implement practical strategies action, such as energy, and sustainability, accounting are very important in finding a break-even point with clients, which kind of like very articulate, these sums up. What we've all been discussing this afternoon. So I want to thank him for his comment and thank you. All three of you gentlemen for your time today. Unfortunately, we've actually sadly come to the end of the session and it's truly been an absolute pleasure more, the right thing, this panel discussion and thank you to see him today for inviting me to do you

say I hope everyone watching has enjoyed it as much as I have. Please be sure to follow CM today's website and for the latest news and their social media platforms. Come on today's events and the overall smart, built environment, Forum. Where are the details? Of course, will be published and into, cuz I don't got no type like to sincerely. Thank will be 10 days in the participants and thank you for your questions and your comments in the chat box, and of course a huge. Thank you to the wonderful panelist indica and did it for sharing their expertise and knowledge on such a captivating

subject. So with all that said, I would like to bid you all a very good rest of the day. I stay safe. Stay well at all the best and a good. Bye. Have a good day. Thanks, everyone.

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