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  @TheSuccessKing : Who would you have a conversation with if it could be anyone? https://t.co/STTPKRqKal 27 minutes ago
  • #AwesomeAccounting - Is your #Business a Small Business Corporation (#SBC)? Follow the chart ⬇️or contact… https://t.co/DwcDpqcUJ7 7 hours ago
  • #WednesdayWisdom - Focus on those things that bring you joy, hire or outsource for everything else. https://t.co/gzTQacQBJk 11 hours ago
  • RT  @SiMODiSA_SA : #CellC #Hangman is calling all #Innovative #Entrepreneurs - R1 Million is up for grabs! For more info visit: https://t.co/… 1 day ago
  • RT  @ProcessMechanic : Who owns the #NationalDatabase with our phone & ID numbers - I want to understand why this information is for sale to… 1 day ago
  • RT  @TheLaunchLab : another LaunchLab company making news! #AzargenBiotech, based in Stellenbosch, granted euro patent! https://t.co/yELStNnl… 1 day ago
  • #AwesomeAccounting - We're 25 days into #taxseason2017 - have u submitted your return? Read our blog for more info… https://t.co/UnenaWL3VQ 1 day ago
  • #TuesdayTip - It's only by pushing ourselves to the limit, that we discover what our true limits are! Go there, fin… https://t.co/a6XfJCdhVl 1 day ago
  • RT  @Smith_JeffreyT : "Africa has success models ... Let's cut out what does not work, let's keep what does work." - @nj_ayuk  https://t.co/RDE… 2 days ago
  • RT  @ProcessMechanic : 🤔 I need 2 more speaking gigs in other African countries. Then I'll have achieved my speaking goals for 2017. 2 days ago
  • #AwesomeAccounting - Still not convinced you can get afforadable monthly accounting? Chat to… https://t.co/9FFy5ZG2AP 2 days ago
  • #MondayMotivation - In case you need a little help getting started this morning.... Coffee is a good idea 😉 https://t.co/7RqfGNX2TG 2 days ago
  • RT  @OnOpennetworks : #tgif  @OnOpennetworks   @AngelHubZA  thanks everybody #amazing #team! https://t.co/5RNZsGfeua 5 days ago
  • #AwesomeAccounting - Always keep your eyes on your costs! Frugal businesses are profitable businesses. https://t.co/BuVzZ68fsK 5 days ago
  • #FridayFun - What's the one thing you can't do without during your work day? #lovecoffee https://t.co/JZPYsR1Z8n 5 days ago
  • RT  @ProcessMechanic : When start/started your business, did you take into account the sort of lifestyle you want to live alongside growing y… 6 days ago
  • RT  @uctgsbsolutions : "The Solution Space Philippi hub is the first community hub to be established by UCT in its 178-year existence." - Pro… 6 days ago
  • #AwesomeAccounting - We're 20 days into #taxseason2017, read our blog ➡️https://t.co/ApsUOQDHU5 & get prepared 🤓 https://t.co/IliEeVuL7n 6 days ago
  • #ThursdayThoughts - There is only 1 way to get ahead in life - add an action component to your dreams! https://t.co/GBKze09hJR 6 days ago
  • RT  @Seedstars : Deadline EXTENDED: FinTech Startups can still submit an application for  @bbva  Open Talent 2017 till FRIDAY:#FinTech https://… 1 week ago
 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