A Publisher’s Cash Management Plan
Part 5–Risk Management

March 2003
by Howard Fisher & Dan Siburg

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This is the final installment of the Publisher’s Cash Management Plan series that began in October 2002 with “Managing Your Cash Flow” and continued in succeeding months with “Managing Your Accounts Receivable,” “Bridging the Cash Gap with Asset-Based Lending,” and “Managing Your Inventory.” To consult earlier installments, visit the PMA website.


Publishers, like many other businesses, need to manage various forms of risk, including the basic business model, financial operations, contingency planning, insurance coverage, and succession planning. When you manage your company’s risk, you are managing for its future. Managing risk is always a question of balance.


Business Model

Reviewing your basic business model involves scanning the environment to identify and quantify the markets and niches you are in, evaluating how they are changing in terms of current and future needs, and then assessing your company’s mission to see if it needs to be revised. Prepare a financial model with operating percentages and rules of thumb, and compare your figures against industry norms such as the Huenefeld survey. Will your current financial model work? What risks do you face with regard to revenues and expenses? Does your model work under adverse circumstances?

An annual business plan and/or strategic planning session based on your answers to these questions…IBPA Members – Click here to view the full article (login required).

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