[jhb_airlines] Re: FPI tonight

  • From: FrankTurley@xxxxxxx
  • To: jhb_airlines@xxxxxxxxxxxxx
  • Date: Sat, 15 Jul 2006 04:45:57 EDT

In a message dated 14/07/2006 23:33:14 GMT Daylight Time,  
pdodds@xxxxxxxxxxxxx writes:

> An  accountant.
It's strange how that is often relevant in making judgements!  


Just a short story -
I once worked for a thriving business where the 4 of us sat down to do the  
The Sales Director had wonderful plans to increase sales, which included  
more sales people, more advertising, but would increase sales by 30%
The Production Director said for that he would need to build a small  factory 
extension, buy new machinery, hire more staff, but he would be able to  
produce the extra required.
The Managing Director thought this was wonderful, and asked me to put  
together the budgets for the year, thinking about how successful the business  
This was in the days before spreadsheets, so armed with large sheets of  
paper, a pencil and a calculator, I first did the profit and loss account  
forecast, and sure enough they showed vastly increased profits for the  year.
I then did a cash flow forecast, and this showed we would run out of cash  in 
month 3! We were planning to spend money faster then we earned it.
When I went back to the others we had to settle for a much reduced  expansion 
plan which was affordable, and which we acheived successfully.
However, you can guess who got the blame for denting everybody's  
aspirations. I guess it goes with the territory!
Frank T.

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