REPLY CHRISTINA ANDERSON
Ka’iulani Kini K. Talbot
Liberty University Online
BUSI530-B07: Managerial Finance
Dr. Stephen Lacewell
September 25th, 2022
Author Note
Ka’iulani Kini K. Talbot
I have no known conflict of interest to disclose.
Correspondence concerning this article should be addressed to
Ka’iulani Kini K Talbot.
Email: kktalbot@liberty.edu
Reply to Christina Anderson, Discussion Thread: Company Cash Flows
1
REPLY CHRISTINA ANDERSON
2
Christina, I enjoyed reading your ideas, as they were more in a positive outlook rather
than some easy way to improve cashflows. They are creative solutions and are presented in a
way that can be achieved depending on the size and type of organization. I was especially
intrigued by crowdfunding, and I want to develop a possible scenario on how to raise additional
income.
The advantage of crowdfunding is the ability to raise external financing from a larger
audience in which everyone provides a minimal amount instead of soliciting a small group of
sophisticated investors (Belleflamme, Lambert, & Schwienbacher, 2014). Crowdfunding has
become a more popular alternative source of increasing cash flow, especially when profit sharing
is offered to ask for more significant amounts of money to be founded for the firm. More
considerable amounts induce the entrepreneur to solicit more individuals to participate in the
financing with little effect on the fraction of profits they need to give up obtaining financing
(Belleflamme, Lambert, & Schwienbacher, 2014).
To expand your idea on how to generate additional income, I suggest that the
crowdfunding amount gets most of the budgeted amount from that funding into the new project,
and a fraction of the amount is invested into developing a complementary project for the firm or
a product that can add into diversification of the inventory. This new project will have to be a
small project where it can be manufactured quickly and have a short life of maturity and sales. If
the product is successful, it can continue to fund the larger project. The performance outcome of
product diversification depends on the net result of the collaboration effect on coordination costs
and adjustment costs resulting from a firm’s diversification strategy (Chen, 2017;2015;).
Your positive ideas are related to the way of thinking that Romans 8:28 teach us “And we
know that all things work together for good to them that love God, to them who are the called
REPLY CHRISTINA ANDERSON
3
according to his purpose” (KJV, 2016). Having you as a CFO for this company shows that you
know your purpose for your work and remember your assignment to continue doing good for
your firm, employees, and stakeholders.
REPLY CHRISTINA ANDERSON
4
References
Belleflamme, P., Lambert, T., & Schwienbacher, A. (2014). Crowdfunding: Tapping the
right crowd. Journal of Business Venturing, 29(5), 585-609.
https://doi.org/10.1016/j.jbusvent.2013.07.003
Chen, C. (2017;2015;). Supply chain strategies and carbon intensity: The roles of process
leanness, diversification strategy, and outsourcing. Journal of Business Ethics, 143(3), 603-620.
https://doi.org/10.1007/s10551-015-2809-8
King James Version (2016). The holy bible. Christian Art Publishers
