Well the buying from their retrenchment package is not really a cashflow issue. It would be the equivalent of a loan account. Cost of business R150 000, retrenchment packages R100 000, employees take their stake as per what their package woudl be and the balnce to be paid off or what ever. The one problem is raising the issue. Once you raise the point, they are aware of everything and then if you close they will definetely be asking for their packages or equivalent piece of the pie.
Anthony Sterne
www.acumenholdings.co.za
DISCLAIMER The above is merely a comment in discussion form and an open public arena. It does not constitute a legal opinion or professional advice in any manner or form.
I am not going to argue the morals and ethics involved in the process of closing down the business.
The questions that I want you to answer yourself is:
1) How many employees do you have?
2) What is their individual monthly salaries?
3) For how long have each of them been in your employment?
With this info, one can determine the value of the retrenchment!
Then, one has to look at you creditors!!
1) Why do you owe them monies?
2) What is the outstanding amount owed to the creditors?
3) What is the current terms regarding payment?
Then , one also has to consider the debtors, and in particular how much money they owe you, for how long has these monies been outstanding, and what the chances are of recovering these outstanding debts.
Lastly, one has to consider the salary you are going to earn (I do hope that you have a firm offer of employment on the table).
With all the above info, one can maybe work out whether you can afford to pay retrenchment packages, and what to do with your creditors!!
Hope this advice helps!!
Dave A (26-Feb-10)
Hi there, I am hoping that it's not too late and you haven't closed down your business yet because there could just be a solution for you that could rescue your business.
I am working on a new reality TV series called The Business Coach which is aimed at making a real difference in the lives of South African business owners. Through its broad reach, the show hopes to help many more businesses than would be possible on a one-on-one basis. It mainly rescues small to medium South African businesses and taking them to where they need to be, by giving it a boost in terms of exposure and providing professional business advice. It also helps businesses that are struggling financially, are fighting tooth and nail to stay afloat or are seeking to take their businesses to the next level.
You definedly are a potential candidate that our new show is looking for.
The show is primarily about helping businesses that have great potential, but for some reason or other are not doing as well as they could. We also want to guide successful businesses that are trying to expand but perhaps lack the know-how.
The business Coach is himself a successful business and life coach, with vast experience in financial services. In each episode he assesses a business and comes up with a comprehensive action plan and a series of interventions to turn things around. Sometimes this may involve help with something as simple as better bookkeeping, advertising, or a shop make over. All the advice, coaching and assistance is free of charge, and comes from top professionals in their fields.
A business is a very personal thing, so asking for help can sometimes be difficult. People are often afraid of what people may think if they’re seen asking for advice, especially on television. However, compared to the prospect of losing the business entirely, there is nothing to lose by being involved with the show. Business owners can only benefit from the advice and assistance.
Whilst this is a television show, the core aim of the initiative is first and foremost to genuinely help real businesses prosper. The producers and sponsors hope that through the show, many more businesses in a similar situation will be able to help themselves.
However, the Coach is not there to do the work for you. He is there to look at your business in an objective way, and to help you make decisions you haven’t been able to, either due to your emotional connection to the business, or simply because there are solutions you weren’t aware of. Often, financial problems can affect the family, and family problems can affect the business. In these cases the Business Coach can offer guidance, support and motivation.
I’m sure as a business owner you remember the dream of opening your own business or of taking over the family business and seeing it grow and prosper. But in today’s globalised world with powerful franchises and big retail chains, it is becoming increasingly difficult for owner-run businesses to compete. Your business dream doesn’t have to die.
If you are interested, please respond and I will send you the application form, which you need to complete in full, sign and email back .
If your application is successful, The Business Coach, will do a thorough, objective analysis of your business, and find concrete, practical ways to improve things. We will send a camera crew around to film the whole process. You must be able to accommodate at least 5 filming days over a period of 4 weeks.
If you yourself are not interested, but know somebody who may be, please pass on this information to them. It could be the single change that makes the difference. Your assistance would be greatly appreciated.
Please note:
-Due to the amount of correspondence we receive, unfortunately we cannot acknowledge receipt of applications
-By submitting your application you consent to ITC and reference checks
-Contestants have to be over the age of 18
-You must ordinarily reside in the Johannesburg, Cape Town and Durban area
-You must be a South African citizen and currently live in South Africa
-Your Business has to have been running for a minimum of ONE year to qualify
-Businesses need to have been open for at least 1 year, and have an annual
turnover of between R200 000 and R5 000 000
Thanks for your time. I look forward to hearing from you.
Kind regards
Keolebogile Maphologela
The Business Coach- Researcher
Rapid Blue
Tel: + 27(11) 348 1449
Cell: + 27(82) 869 1419
Fax: +27(86) 678 6826
keolebogile@rapidblue.com
in 2009 i liquidated my company been trading for 45 years.
Do not stress , to cut overheads now notify MEIBC you are laying peoples of for 8 weeks and motivate why. let all employees not key to generating turnover go.
In cc you are personal liable for sureties you signed so sell of capital equipment and settle .
If you are not planning to restart other company Sars is not the problem.
Then like the other guy said just close and walk away.
Really ?? If you liquidate your cc SARS becomes a preferential creditor !!If you are not planning to restart other company Sars is not the problem.
Yes preferential creditor after Landlord and employees . of what is left.Originally Posted by HR Solutions
They can be preferential of what.
Each employee with 19 year services should get 23 000 max on first payment
Preferential as in SARS are the first people to get any money that is owing and then the rest will get a percentage of whats leftover.
No the First is the liquidators then landlord and then the employees and if there is anything left Sars . I owed them R600 000.00 they got nothing
Also remember that it is only assessed debt that they can lay claim to.
I thought SARS had an automatic personal surety from directors/members on debts owed to them?
Can you please explain this further. What is assessed debt and what is not?
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