Cash flow is the lifeblood of any small business and how it's managed can mean the difference between your company's success or failure. Having sufficient cash on hand will ensure that your suppliers, employees and other service providers can be paid on time. It also allows companies to invest cash back into the business in order to generate additional revenue and profit and, most importantly, improve their bottom line.
Let's take a closer look at how cash flow management can affect small businesses and review how your business can take control of and better manage its cash flow immediately.
Entrepreneurial ship is truly unique in South Africa
As with all other aspects, the drive to Entrepreneurial ship is truly unique in South Africa. There are vast number of reasons for a person to become an entrepreneur rather than seeking or remaining in formal employment. Of these drives, only 5 will be highlighted in this study opinion, they are;
The social trend driving the Crafts and Tourism industry in South Africa,
the availability of information and training for prospective entrepreneurs and ready established entrepreneurs,
the technological advances that open up countless opportunities in the Tele-communications and Information Technology sectors,
early retirement of employees are the order of the day in the new South Africa, and lastly
the almost forgotten starting block for all entrepreneurs, Outcomes Based Education, as introduced in South Africa as the governments Curriculum 2005 education plan.
From these five discussion points it will be evident that South Africa is truly in the forefront of an explosion in the marketplace, if Government heeds warning signs and published reports, to fully capitalise on the potential for entrepreneurship.
Can a lack of managerial experience cause business failure
It most certainly can! Managerial experience is essential when running a business. Maybe I should clarify;
You have most likely heard of the adage : "would you like to speak to the boss, or the person running the place?" There are those managers in management positions that drive the business and the direction it should take, and those that manage or run the business. Those "boss" managers tend to be visionary and some times downright unpractical in their thinking. They are however essential to the business as they bring give the company direction and growth and expansion plans. You need these managers to drive aspects of your business such as sales and to come up with innovative ideas. They will sell the idea or product off a blueprint, and make no mistake they will close the deal with ease.
It is the other side of the coin where you need to have an experienced manager. The managers running the business needs to be a practical thinker. They need to make sure that the ideas, or direction given is executed practically. They also tend to be somewhat conservative, and will normally be seen as the balance of power needed in management. Usually they fulfill the role of Corporate Governance, Finance or sometimes Operations. You most definitely need these managers to curb overspending by the "boss".
Experience is essential. We have seen many entrants in the market, eager after completing their degree. They have wonderful ideas, and want to implement everything they have read in books. This eagerness often overshadows the elder person in a position much lower, shaking their head. Experience will teach you that even as a young graduate, middle manager, or even more senior, you will need to listen to that practical application of what is required by the visionary in your company.
Without experience you will easily bankrupt the company, and without vision you will not grow your business.
Lohesi at a glance
Premier business development and franchising consultancy, Lohesi Investments cc, was established in 2005 to develop and assist the SMME business market. During the past 6 years Lohesi has developed to be a key player as a business support and mentoring institution amongst small and medium enterprise as well as start-up businesses & joint ventures. Lohesi's head office is based in Centurion, South Africa.
Lohesi's services can be classified as must have business tools for small and medium enterprises, offering business services ranging from process analysis, business plan development, student assistance, franchising, e-commerce and much more.
Lohesi's core competencies lie in the fact that the team consists of multi-functional specialists, across a wide spectrum of business services.