The Big Thing Holding Back Small Businesses

**Blurock** · 12-Mar-19, 08:13 AM

So True! Stick to what you know and what you do best. As soon as you start dabbling in other people's business or technologies, you will get burnt. At takes 10 years to become an expert on any skill, art or science. Years of learning and practice and just as soon as you think you know it all, the playing field changes.
Change is risk. Political change, environment, finances, competitors, logistics, automation etc etc. But these changes are also opportunities for those who keep their ears to the ground like grasshoppers. Start jumping!

**ians** · 12-Mar-19, 11:40 AM

Originally Posted by Blurock

So True! Stick to what you know and what you do best. As soon as you start dabbling in other people's business or technologies, you will get burnt. At takes 10 years to become an expert on any skill, art or science. Years of learning and practice and just as soon as you think you know it all, the playing field changes.
Change is risk. Political change, environment, finances, competitors, logistics, automation etc etc. But these changes are also opportunities for those who keep their ears to the ground like grasshoppers. Start jumping!

Some of us burn to learn.

Since 1991 ...i have seen every single one of the companies i have done work for close...but more open and close.

I have watched small companies manage for years...then get this big idea to go big and generally close within 2-5 years.

There is only one rule in business...take note..."CASH FLOW"...you can have the most advanced business plan...the biggest overdraft facility...multi million rand contracts...sub contract to the biggest companies you name it...there are thick books...gigs of info in the matrix...cash flow stops so does the business....it is that simple.

**Blurock** · 13-Mar-19, 08:03 PM

Originally Posted by ians

Some of us burn to learn.

Since 1991 ...i have seen every single one of the companies i have done work for close...but more open and close.

I have watched small companies manage for years...then get this big idea to go big and generally close within 2-5 years.

There is only one rule in business...take note..."CASH FLOW"...you can have the most advanced business plan...the biggest overdraft facility...multi million rand contracts...sub contract to the biggest companies you name it...there are thick books...gigs of info in the matrix...cash flow stops so does the business....it is that simple.

Cash flow is exactly the reason why one should pay your suppliers on time. If you have a good, reliable supplier, you should nurture him/her, because over time a relationship is built that may allow you extended FREE credit. This is much better than an overdraft with high interest and fees. (or maybe a mortgage over your house) It may also be hard to replace the supplier with someone who can deliver the same good quality and service once he has closed his doors due to late payments by debtors. A good supplier may also carry stock for you, so that you can apply the JIT principle and so be able to save on carrying stock. A local supplier is someone you can talk to, someone who has pride in his product, whereas cheap imports will not afford you the same luxury.

**ians** · 15-Mar-19, 10:57 AM

Originally Posted by Blurock

Cash flow is exactly the reason why one should pay your suppliers on time. If you have a good, reliable supplier, you should nurture him/her, because over time a relationship is built that may allow you extended FREE credit. This is much better than an overdraft with high interest and fees. (or maybe a mortgage over your house) It may also be hard to replace the supplier with someone who can deliver the same good quality and service once he has closed his doors due to late payments by debtors. A good supplier may also carry stock for you, so that you can apply the JIT principle and so be able to save on carrying stock. A local supplier is someone you can talk to, someone who has pride in his product, whereas cheap imports will not afford you the same luxury.

I dont have any 30 day accounts anywhere...i learnt the hard way...now i only have COD accounts to get the discount ( i still for the life of me cant understand why some of the companies i deal with dont offer a better for cash...it seems volume is still the deciding factor)...this way it forces me to get deposits from customers and forces me to walk off site when the cash flow stops.