According to Sage Advice there are seven ways to avoid cash flow crisis (Alex Jordan, 2017). The first way is to keep a cash flow forecast. WD (Wyndham Destination) will based on their market research, set 12-month targets (goals) to help keep track and avoid any shortcomings financially (Alex Jordan, 2017). The next area of focus would be to set up a system specifically for the London Offices 55 locations to keep on top of the timeshare payments (Alex Jordan, 2017). The London office will need to have plans to anticipate problems before they happen (Alex Jordan, 2017). To do this WD will need to identify the potential cash flow problems in advance and stay on top of their cash flow forecast, the current marketing conditions, keep an eye on their customers, and finally taking action as soon as you see a problem (Alex Jordan, 2017).
If WD (Wyndham Destinations) wants to find funding for more timeshare building projects, they need to assess the credit needed based on the business plan and market research for their market. The timeshare market is a $9 Billion-dollar industry as of February 2019 according to ARDA. To get funding there needs to be the data showing how timeshares are growing and the market is growing. To stay ahead of the competition, WD needs to have building projects planned out in key areas of upcoming tourism and travel.
References:
Huebsch, Russell. “Cash Flow Problems in a Business.” Small Business – Chron.com, Chron.com, 26 Oct. 2016, smallbusiness.chron.com/cash-flow-problems-business-4916.html.
“Timeshares & Vacation Ownership.” Wyndham Destinations, http://www.wyndhamdestinations.com/.
“7 Tips to Avoid a Cash Flow Crisis.” Sage Advice UK, 16 Feb. 2019, http://www.sage.com/en-gb/blog/7-tips-to-avoid-a-cash-flow-crisis/.
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