The most critical part of an entrepreneur decision skill set is commitment towards making a payment, there will be many variables that rule and regulate the quantam of payment and it becomes burden to the entrepreneur to actually really commit to make a payment
An example of the paradoxical situation of committing to a payment can be seen in a small situation I would like to present as a case
Leonard owns a power supply company that runs on coal , it's called swetner power plant and when we look at the complexity of power generation there are some fixed parameters and there are some variable links, fixed parameters being the usual maintenance and annual maintenance and repair expenses which will be on recurring basis and variable being the procurement of coal and supply chain management of coal and other necessary raw materials for generating electricity, the problem is that most of the countries in the world are pseudo secular and pseudo socialist and mostly capitalist and hence the government administration decides the supply chain of raw materials which is coal and in any unfortunate situation if the government decision is to block at some point the supply of coal and other raw materials there's going to be a dry run or let alone some pandemic blocks the coal supply chain or due to more vibrant economic failure or poor labour management the supply of coal stops immediately the plant will go in to the state of using the reserves, well while using reserves the protocol first points to make a fresh supply chain to bring back the plant to business as usual state otherwise the plant is sitting duck, yet knowing very well the financial institutions and the labour unions start pressuring Leonard to opt for populist payment schematic rather than opting for survival schematic, Leonard may try all his ways but it's always the numbers speak, otherwise the power speak, in this case number of labour force is far beyond the number of Leonard's board of directors and hence plant eventually goes to a state where either they choose to pay the salaries and etc which come under fixed costing or go to closure, it's a do or die situation, human mind doesn't immediately choose death so it chooses to live by paying salaries and hence forcing Leonard go to again fire fighting of his own decisions with the board. This way Leonard's power plant is still unfortunately runs on ventilator type of electricity generation and eventually Leonard comes to blows by both board and workforce for the decision and late decision making respectively.
So the above example is a typical conundrum any unfortunate entrepreneur undergoes in his Life.
The solution to make payment is to maximize the value of the retractability and sweet talk the receivers be it employees or general suppliers for apt and ample time and offer them with the interest for the time that's going to accumulate, that way Leonard's plant finds basic schematic to run plant and pay the salaries and payables but it's still a time bound game... Sweet talking doesn't last long more than 3 times... Money only speaks and nothing else 🧐
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