Fill in your details below and one of our friendly consultants will call you back as soon as possible.
  • This field is for validation purposes and should be left unchanged.

Follow us on Twitter

  • RT  @TyronneNel : #SME Advice - It might be late but just remember success doesn’t keep office hours! 2 hours ago
  • RT  @TyronneNel : #SME Advice - Dear entrepreneur, employ the most skilled employees you can afford! Poorly skilled staff are worse for your… 1 day ago
  • Is your business idea viable⁉️ Is there anything you can do to improve my idea’s chances of success⁉️ ✅✅YES! Find… https://t.co/6cxu1bBdJq 2 days ago
  • Owe money to SARS for inaccurate or non-submissions? SARS has become more "friendly" that will help you come right.… https://t.co/EbTCjUXkor 4 days ago
  • Always at the forefront #innovation https://t.co/OXuRCgl5bB 5 days ago
  • RT  @TyronneNel : #SME Advice - Dear entrepreneur, the quickest way for you to become a big business, is to be a BETTER business! Do your ad… 6 days ago
  • RT  @capetownoffice : Tune in to Mix 93.8 FM at 13h30 today & give a huge shout out to Roland Albertson who'll be taking over! #coworkers #… 7 days ago
  • RT  @ProcessMechanic : Ditch the paperwork & start using an online platform to plan and manage the growth of your business. Sessions cover #… 7 days ago
  • RT  @capetownoffice : The latest The Office ! https://t.co/sq8r8ZPb7A Thanks to  @TyronneNel   @carlo_petersen   @harry_kane1  #coworking #capetown 7 days ago
  • Government needs to create an enabling environment for entrepreneurs by developing policies that GROW businesses, i… https://t.co/HPulS5CXJg 1 week ago
  • RT  @BonganiNtuli : Three weeks from opening my spot in Bryanston, kinda scary cos Im not a social person, but ill get it done nonetheless. 😊… 1 week ago
  • RT  @innovsummit : Monday is the last day to catch your ticket to THE leading innovation & entrepreneurial ecosystem platform! Will we see y… 1 week ago
  • RT  @capetownoffice : My fellow South Africans... I feel we need more discussion on this new reality. Holy shit. #PetrolPrice #PetrolPriceHik… 1 week ago
  • RT  @ProcessMechanic : If you're going to pitch or present & your audience is given the opportunity to ask questions, make sure you listen to… 1 week ago
  • RT  @TyronneNel : #SME Advice - Dear entrepreneur, make time for family and friends, don’t forget, they’re walking this road with you 😉 2 weeks ago
  • RT  @Workshop17za : Workshop17 Firestation in Rosebank will welcome more than 300 members to our space opening in November! Reserve your offi… 2 weeks ago
  • RT  @ProcessMechanic : If you're about to launch an app/web service, make sure you have a strategy to grow an audience that you will direct t… 2 weeks ago
  • RT  @TyronneNel : #SME Advice - Dear entrepreneur, the one characteristic that separates successful from unsuccessful businesses is the unrel… 2 weeks ago
  • RT  @TyronneNel : #SME Advice - The Customer is Not always right.... but it’s probably your fault for making them believe they always are.😉 3 weeks ago
  • RT  @TyronneNel : #SME Advice - Customers might pay for your product/ service, but what they are buying is confidence that it will solve a p… 3 weeks ago

Subscribe to our mailing list

* indicates required
 In News

Piggy Bank Floating in Water on Blue BackgroundYou’ve been trading for several months now and your income statement is showing that you are making a profit, nothing spectacular, just nice profits. While you feel good when you see this, it always bothers you that you never seem to have any money at the end of each month.

How is it possible, you wonder, that you are making profits but do not to have any money in the bank?

What you are experiencing is the effects of cashflow, in this case unfortunately, negative cashflow.

What are the circumstances that cause Cashflow to be a problem?

 

Rapid or Unplanned Expansion

Very often businesses that are going through continuous expansion find that they will experience cashflow issues due to more and more of their money being tied up to pay for the expansion (more stock, new staff, more desks, etc.).

 

Incorrect Costing

Many Start ups often find themselves facing this issue. Due to inexpereience, they have calculated a profit margin that does not allow them any room to manuver when sales slow down, so find out they do not earn enough to cover their operating costs.

 

Slow or Non Paying Debtors

The biggest cause of poor cashflows are slow or non paying customers! All to often small businesses give very generous payment terms (and don’t check credit histories) to secure work and then find themselves scrambling to pay the bills when they realise the client is not going to pay or is going to pay in instalments.

 

Unproductive Staff

Unproductive staff are just as bad as slow or non paying debtors! Every time your staff miss a production deadline or need to redo their work because of sloppy workmanship, it is negatively effecting your cashflow. Regardless of the quality of their work, your staff are still expecting to get paid each month, even if you have not earned an income yet.

 

The above are examples of the most obvious causes of poor cashflow, there are many more, but get a grip on these and you will see your bank balance grow.

If you would like PheZulu to do an analysis of your businesses cash flow issues, please contact Tyronne Nel to set up an appointment. 0879450449

PheZuluBusinessManagement

Recent Posts

Leave a Comment

Start typing and press Enter to search

2014 Tax Season is open - South AfricaPhezulu VBO - Partners and your business