Lady Karma and her moods...

[ians]

I think most of us little guys have the same issue. My problem is not making the R100 k, its spending or investing wisely. I tend to make that much then sit back and cruise for a month or 2 pay my bills and get by, then all hell breaks loose after the 3rd months and there is no money left to pay bills. So I go out and bust my backside off again, battle with no capital because I have used it to cruise for the 2 months and so the cycle starts again. I also get involved in a million other things which I start and try. I think it is out of boredom. I think some people refer to it as HDDDDADD or whatever, I just need a sleeping tablet every now and again to help me slow down and focus a little.

[adrianh]

We've just never had the opportunity to cruise, we are always a bit behind. We work extremely hard all the time and things are looking up. We have very good customers and they really keep us busy. The primary problem we face now is having enough cash at hand to buffer turbulent cash flow.

I must admit, I also tend to go off on missions. The name of the game of course is focus which is something that is near impossible for me to do. I'd have to shut 90% of my brain off to be able to focus on one thing. I think the trick is to position the staff so that they can focus and bring lots of money in all the time. At least that way if we do go on a mission, provided of course that we do not involve the staff, we do not upset the flow of the business too much.

My family and I were ready to go to Australia for a month from the 16th. I've pulled out and I am going to stay here to see to the business. They will still go and it will be good for them. (The trip is sponsored by a family member living in Australia - we would never be able to afford to pay for it ourselves) Doing this has dramatically resolved the extreme urgency to resolve the cash flow problem. I'll go to OZ on my own when it is more convenient to do so.

I will never let the lack of money rule my life again. It is said that money is a tool, maybe, but if you don't have enough then the tool becomes a knife that will keep on stabbing you until there is no blood left to be drained from your stone cold body.

[Dave S]

The problem we face is purely cash flow. We have enough word and our prices are fair given the markets we are in. If I had cash reserves of R100K in the bank then I would be able to buffer turbulent cash flow.

I only have one drive now and that is to make money and it fast....doing business is of secondary importance!

Cash-flow has been the downfall of many a small business, customers take too long to pay, and your cash dries up, so before long the business owes more than the business earns. It's also easy to say, "let's build a cash surplus", but the only time you can even hope for that is during the "seven-good-years" and those years just seem to be over too quickly.

What I find in my view from the sideline, a lot of small businesses grow too fast and take on bigger clients before they have a cash surplus, this means more creditors and less cash flow.

I'm holding thumbs for you Adrian, I hope you find your cash quickly.

[Justloadit]

For what reason are you so busy, yet you have no money?
There's 3 reasons that could be causing this
1. You are charging too little - simple increase your selling price - forget about losing customers you will be less busy with the same amount of cash, just ride the slow down until it settles
2. You are spending too much on other non business expenses which is draining the business working capital - Limit these expenses, or alternative stop taking money out the business to fund these expenses!
3. You are giving credit, and customers are not paying - change your policy - deposit with order, final payment with collection. Yes it is difficult in the beginning, but stick to your guns, it soon becomes second nature when a customer walks in and you request a deposit with order, and final payment on collection.

If you can not do any of the above, then you will remain in the pit of no working capital, and be for ever complaining, if I just had a R100K in the bank. Let me tell you if you do not change the way you do business, that R100K will become R200 then R300 and simply keep on growing.