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Thread: Insolvency?

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    Insolvency?

    Hi all.

    I'm a newbie here and in desperate need of any advise.
    i have a transport company situated in Cape Town. We have been in operation since 2005. It's been a real exiting journey with many challenges, especially financially.

    Although my "sales" have always been escalating, it has just never been enough. I have exhausted all of my resources and really have only one option in mind, to close down.

    Basically i was hoping if anyone could give me some advise on closing down. I'm not sure if selling is an option as the time frame is abit snug (if you know waht i mean)

    ANY help would be graetly appreciated.
    You welcome to mail me on movers@telkomsa.net

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    Gold Member garthu's Avatar
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    Hiya Mr B and welcome!
    Sorry it seems to be under stressful circumstances. There was a very specific detailed article re this which i will attempt to find as i aslo considered it one point recently!
    Garth

    Electric fence Installation : www.midrand-electronics.co.za
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    Site Caretaker Dave A's Avatar
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    It's a big subject. If I was to give any kind of over-arching advice, it would be that if possible you need to control the process. If you hand the process of winding up to liquidators... Well, they're not very good at making sure all assets realise their best value. Savvy creditors should prefer a carefully managed windup as everyone ends up getting more money than they will with a liquidator in charge.

    Getting specific, the first question is how are you structured? Sole proprietor, cc, company?
    Second - excluding monies that might be owed to yourself personally, do liabilities exceed assets?
    The trouble with opportunity is it normally comes dressed up as work.

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    Gold Member garthu's Avatar
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    I did finfd the articles but it's print! Thought it was a web.. sorry about that Mr B. You know what thought did.....
    Garth

    Electric fence Installation : www.midrand-electronics.co.za
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    @ Garthu:
    No problem, today i will also try to find some info on the site. thank you for your input and trouble.

    @ Dave A:
    I'm the sole member of the CC.
    My books fell behind abit but is up to date just need to collect my financials (and obvoiusly pay).
    But if i do a calculation, unfortunetly, yes my liabilities do exceed my assets by about 50k!!

    i am trying to control this process as far as i can, feels like i'm sinking though.

    thank you all for your input.
    any further suggstions DaveA?

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    Site Caretaker Dave A's Avatar
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    Sometimes I wonder if a business is in trouble because the paperwork isn't up to date rather than the relationship being the other way around. Whether you wind it up or rescue it, you're going to need a clear head and a crystal clear picture of the numbers.

    Stay on top of the books, no matter how uncomfortable you might feel about those numbers. Hard numbers help you make the tough decisions!

    R50k is not a lot given the likely total capital involved. A few good months could wipe that out.

    Any chance of turning the operation around to profitability?
    The trouble with opportunity is it normally comes dressed up as work.

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    i actually work those figures everyday. i also do keep track of those hard numbers, cause as i see it only working with the absolute correct amount, will bring an accurate decision.

    Dave A, this business has so much potential and not to fool myself, but i do strongly believe that it is in a position to be profitable. The problem however started with me having left my full time job and bringing all the "salary paid expenses" along. i then had to first focus on fighting off those expenses, and won. Then had a very huge vehicle maintenace account for several months, purchased something new, and and that point business was well as i bought another vehicle to service the extra business. That also helped pay the maintance owing. but did not completely finish all due yet.

    The problem came in when i lost the work given to me due to restructuring by one of my sources. Kept onto the vehicle whilst sourceing work and eventually fell deeper and deeper.

    This business suffers in the winter months so basically for 4 months we are already slow, thus the extra vehicle wanted to do distribution to warehouses, so basically the good months covers the late payments and the cycle starts all over.

    The hard part for me is knowing that if it were not for the "extra" expenses, this business would be able to cover all its expenses with profit and month end.With all the resources now exhausted, it is just getting that much harder to keep afloat.


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    Diamond Member wynn's Avatar
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    What about selling the second vehicle now to reduce your overhead, plod along with the original vehicle, then hire any extra vehicles you require during busy periods to service your extra demand?

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    Thanks for your response Wynn.

    I am trading in the one vehicle on Thursday. (But they only settling so wont have cash that i can use)
    paid up an o/d to save some bank charges. However inevitably i'll get to a point where i can only do so much. There will still be some expenses that i won't be able to get to.

    The worse thing here guys are... The state of mind one finds oneself in. Thats my worst enemy at this stage.
    If for what ever reason i cannot save this business i really do hope that there is someone out there right now finding themselves in this same situation, that was actually motivated or got something from this thread/reply's so far.

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    Site Caretaker Dave A's Avatar
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    So many thoughts come up... Here's two quickies:

    The line between success and failure is a lot thinner than most people realise.
    There are very few successful people who did not at some point along the road think they might lose everything.

    Mr. B - I see lots of positive signs.

    Don't give up. Dig in. Dig deep. Make it happen!
    The trouble with opportunity is it normally comes dressed up as work.

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