Financial cycle

You will find that both income and expenditure have a cycle. For example:

• In education, it is usually annual:
• Students pay most fees in first semester for the whole year, so you are flush with money at the beginning of the year.
• Some students pay fees each semester, so there is some income at the beginning of second semester.
• In December there is no income, but you have major expenditures for materials for the next academic year. You face a cash-flow difficulty.
   
• To get out of the end of year famine, some educational organizations conduct shorter cycles to gain income throughout the year. This may include summer schools, short courses and Professional Development courses.
   
• In event management, it usually goes over the lifetime of the event. Some events require you to invest large amounts of capital for preparation before you receive anything. If you don't have the capital to start with, you have a cash-flow problem, even if you eventually make a substantial profit.
   
• You should consider longer term financial success for events and your organization.