Outline
Conference organising company
90% income from 1 conference
Pays salaries all year
Observations
- It was observed that the company has a decent cash flow two months prior to the main conference every year, and that all the payments are made 1 month after the conclusion of the event.
- Which means the company has unutilized funds in their bank accounts for at least 3 to 4 months every year.
Results
Rs. 20 lakhs earned in profits in 3 years.
By following the above-mentioned steps for a period of 3 years, the company earned Rs. 20 lakhs in profits.
Hybrid fund investments earned good returns too.
Some money from these profits were then invested in hybrid funds (equity & debt funds mix), which brought good returns.
Profits enough to pay salaries for next 2 years.
Total profits earned from interests are enough to cover the salaries and fees of the company for the next 2 years.
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