16 December 2017
Hansie Britz

THE IMPORTANCE OF A POSITIVE CASH FLOW

“Cash Flow” refers to the revenues a business generates (and collects) compare to the expenses it pays out over a fixed period of time. Broadly speaking, businesses bring in money through sales, financing and returns on investments. And they spend money on supplies/services, as well as utilities, taxes and other bills.

Cash Flow problems affect many businesses. And the data backs it up: According to a recent survey 3 out of every 5 businesses experience them. Still, while cash flow problems are not uncommon, business owners are better of doing whatever they can to avoid them altogether.

BENEFITS

Businesses that master cash flow management can:-

Pay their bills

Positive cash flow ensures employees get paid each payroll cycle. It also gives decision makers the funds they need to pay suppliers, creditors and the Government.

Invest in new opportunities

Today’s business world moves quickly. When cash is readily available, business owners can invest in opportunities that may arise at any given point in time.

Stomach the unpredictable

Having access to cash means that whenever equipment breaks, clients don’t pay their invoices on time or new government regulations come into effect, businesses can survive.

SYMPTOMS OF POOR CASH FLOW

If your business is suffering from any of the 5 following symptoms, cash flow problems may very well be on the horizon:-

  1. Your accounts receivables are high.
  2. You have too much inventory on hand.
  3. You’re overextending your business.
  4. Your sales are declining.
  5. Your business just isn’t profitable.

HOW TO MANAGE CASH FLOW

  • Know when to lease and when to buy.

Virtually all businesses need equipment, facilities and property in order to operate. Whether they should buy or lease those items is another question. If your business is strapped for cash, you might want to consider leasing equipment and renting retail or office space rather than buying it outright.

  • Make it a habit to shop around for better prices.

While it’s probably counter productive to shop around for new suppliers every other day, it might be worth reassessing your operations on a regular basis – whether monthly, quarterly or even yearly will depend on the scope of your business.

  • Consider increasing your prices.

When is the last time your company raised its prices? While your customers might not like it, just ensure your business is carefully planning your price increases and marketing them effectively. You’ll be able to generate more revenue – and maybe even more sales – while padding your bottom line.

  • Bill on a more immediate basis.

If you’re having cash flow problems, you, might want to consider accelerating your billing process, sending out invoices the moment when jobs are completed and orders are shipped. In doing so, you ensure that your client’s get their invoices faster – which hopefully means you’ll get paid quicker.

  • Incentivize customers to pay sooner.

To solve cash flow problems, you might want to offer customers favorable payment terms if they pay their invoices early.

  • Maintain cash flow statements.

By producing cash flow statements, you’ll be able to make the right adjustments to your business should you need to – whether that’s increasing prices, reducing expenses or embarking on new campaigns – to make sure your business always has the money it needs to thrive on hand.

  • Leverage modern technology.

Because the right technology makes your employees more productive, it follows that you’ll have more goods and services to sell than you would with employees relying on outdated technologies.

  • Focus on cash flow instead of profit.

Your business might generate a considerable amount of profit. But a good majority of that profit could be tied up in receivables., which doesn’t do you much good when it comes to you needing cash to cover your operating expenses.

Need any help with your cash flow problems. Let us help you out. Contact: (27) 84 583 3143 OR money@global.co.za

 

                              

16 December 2017
Hansie Britz

ENTREPRENEURSHIP FOR START UPS

                               

Buying your way into entrepreneurship can be an appealing option and mitigate many of the risks of “growing your own” when it comes to launching any business. Sticking your neck out to secure the startup capital, hiring the right employees, and establishing cash flow are just a few of the risks that send would-be entrepreneurs running away from the idea of starting their own business.

Buying an established business, on the other hand, comes with the potential benefit of instant growth and the ability to avoid the initial growing pains that often plaque startups. Furthermore, taking the reins of an already established and stable business can offer more personal freedom as opposed to the seemingly never-ending time and personal commitment that starting from scratch typically requires.

Should you acquire a Business instead of building it from scratch?

Here are some things you’ll want to consider before jumping into the role of business owner and operator

1.What type of business do you want to own?

Narrowing down the exact type of business you want to acquire is the first step. By identifying the business you think you want to be in doesn’t necessarily mean it will be a good fit for you. It’s important to be realistic and honest with yourself about the personal attributes, strengths, and weaknesses you bring to the table. We can help you doing a SWOT Analysis on yourself to identify those if you have trouble identifying them at first.

When evaluating specific businesses, it’s a good idea to consider the following important factors:-

  • Is the business established and is there an existing customer/client base?
  • Is the business profitable with healthy revenues and cash flow?
  • Are the ownership and business demands a good fit for your lifestyle?

If these 3 criteria aren’t in place, you may not end up reaping the benefits you envisioned.

2. Are you ready to learn and devote adequate time?

In your role as CEO, you’ll need to develop expertise in many areas of the business. You’ll have to seek knowledge and recognize what areas you need to dive deeper into in order to learn more. You’ll also need to recognize professional weaknesses in order to quickly hire positions to bolster these areas where you maybe lacking.

3. Are you ready to be in charge?

Acquisition entrepreneurship means you’ll hit the ground running. This is a stark difference from traditional entrepreneurship where owners tend to “grow up” with their business, easing into its nuances and demands along the way, and bringing on team members one at a time. In the acquisition scenario, you’re immediately in charge. This means running the business and managing any existing employees from day one.

4. How to set yourself apart from other potential buyers?

If you’ve found a business that is truly successful, a good fit for your skills and lifestyle. and that is for sale, you won’t be the only interested buyer. It’s also important to remember that a successful business owner probably doesn’t need the sale. So if its not a numbers game, how will you set yourself apart as the best buyer for this successful business? You’ll need to persuade the seller that you’re the right buyer.

Often this comes down to showing that you care about and believe in the business itself. If it comes down to you, someone who believes in the culture and values of the existing business and infrastructure, and another buyer that is immediately looking to overhaul the business and change its culture, you may have an advantage. This, of course, depends on the mindset of the seller.

If you need help in setting up a successful business or don’t know how much to pay to buy a business contact us NOW:-

(27) 84 583 3143 or email us: money@global.co.za

ALSO CHECK OUR SERVICES PAGES FOR ALL OUR SERVICES.

                                       

 

 

 

15 December 2017
Hansie Britz

CATTLE & SHEEP FARMING

                                                                                          

CATTLE FARMING

Beef farming slots in well with other agriculture enterprises, especially grain. Cattle can feed on resources that have little other use, such as crop residue and land not suitable for crops.

Before entering the cattle business, though, you should consider your resources, the land available and your level of interest and skill. You should know why you want to rear cattle, and be able to set yourself goals to achieve the most constant economic return or personal satisfaction.

A small-scale cattle enterprise can involve a growing and feeding system (calves or weaners are either raised or bought and then fattened for slaughter), breeding herds, or a combination of growing, feeding and breeding herds.

Growing/ Feeding

In a weaner operation you acquire calves after weaning at 10 to 15 months of age. They can then be fed and marketed in less than a year from the time of purchase. Thus, the investment on each calf is returned within a comparatively short time. This type of operation not require much land, but you will need adequate facilities to keep the animals comfortable and under control. Working with calves requires a good deal of patience, as they are easily excited and stressed, and a health program should be discussed with a vet.

Commercial or Registered?

Establishing a breeding herd is a long-term objective. You need to decide whether to run commercial cattle or registered purebred cattle. Income from a commercial beef herd comes mainly from the sale of calves and old or cull animals, whereas income from registered cattle comes mostly from sale of breeding stock.

Breeding registered cattle to supply breeding animals to other cattle producers usually needs a large capital investment in stock. You also will have to keep accurate records and register the purebred calves retained for breeding stock.

SHEEP FARMING                                  

 

Sheep husbandry is mainly practiced in the Eastern Cape, Northern Cape, Free State and Mpumalanga, with the other provinces having smaller numbers. The domestic sheep is produced for its wool, meat and milk. Other byproducts are:-

  • Clothes, footwear, rugs, and other products are made from sheepskin.
  • Sheep tallow can be used in candle and soap making.
  • Sheep droppings, which are high in cellulose, have even been sterilized and mixed with traditional pulp materials to make paper.
  • Of all sheep byproducts, the most valuable is lanolin: the water proof, fatty substance found naturally in sheep’s wool and use as a base for innumerable cosmetics and other products.

Small can be profitable

A small sheep farming operation calls for dedication, discipline and a genuine concern for the animals. Sheep farming is not simply about numbers. A small number of well-managed, productive animals may make you more money than a larger number of animals on poor condition.

GENERAL

Inoculation

It is crucial to follow a proper inoculation and dosing program. Keep record of the dates of dosing or inoculation and the quantity used on each sheep.

Hooves

Trim the animal’s hooves regularly, especially if they have to walk long distances to and from grazing.

Clean Wool

To ensure good clip prices, keep the wool on the sheep free from thorns and grass seed.

Keep Records

In addition to keeping records of inoculations, newborn lambs, the sale of ewes and so on, it is extremely important to keep proper records of expenses and income to determine the profitability of the operation. Without this, you cannot run a business successfully.

IF YOU NEED HELP IN ANY OF THESE AREAS OR A PROFESSIONAL FARMING BUSINESS PLAN CONTACT US NOW: (27) 84 583 3143 or email us at: money@global.co.za

 

 

6 December 2017
Hansie Britz

SUCCESSFUL PECAN NUT FARMING

                                                       

 

Pecan Nut production is a lucrative industry. “Income harvested from 2 pecan nut trees is equivalent to that from 1t of maize” says Phillip Antrobus pecan nut farmer. Pecan nut trees are fast growers and can become very tall. The nut has a high nutritional value because it is rich in protein, vitamins, carbohydrates and nut oil.

Climatic Requirements

  • The pecan nut tree is well adapted to subtropical areas.
  • It also grows well in areas with short, cold winters and long very hot summers.
  • Low temperatures and even frost during June to August are required for successful budding and flower formation.
  • During the summer months (October to April) the tree requires high temperatures for fruit growth.
  • Trees are successfully established in valleys and along rivers where the winter temperature is low and frost occurs.

Soil Preparation

Examine the soil regarding depth, drainage and compacted layers.

* The soil should be at least 2m deep.

* The physical suitability of a soil can only be evaluated by digging holes in the ground and examining the soil profile.

* The soil should be prepared carefully and well in advance of planting.

Planting

The pecan nut tree is deciduous and can therefore only be transplanted during winter. The best results are obtained when establishing orchards with trees planted during July and August.

Planting in Orchards

  1. Loosen the topsoil to a depth of 1m before planting.
  2. The depth of the hole must be deeper than 1m, or at least 200mm deeper than the length of the tap root.
  3. Some loose soil should be replaced, so that the cut end of the tap root is in loose soil. This promotes vertical root growth during the first season of establishment.
  4. Well-rotted compost (plant material) can be added to the hole.
  5. Zinc fertilizer (22%Zn) should be added and mixed well with the topsoil. No other fertilizer should be applied at planting.

Aftercare

  • Newly planted trees must be irrigated immediately.There after, irrigation should be applied carefully because too much water given before the tree start growing, may cause the roots to rot.
  • They should be treated against possible termite attacks by timeously destroying all termite nests in the vicinity.
  • The trees should be white-washed to prevent sunburn damage. It is advisable to put a straw mulch around the base of the young tree for better moisture conservation and to protect the roots against high temperatures. After planting , the trees must be topped to encourage branching to form a framework. A height of 1m is recommended.
  • Inspect young trees regularly during the first season after planting.

To set up a successful pecan nut farming operation you’ll need a professional and well- written farming business plan.

Want to know more or need help in setting up or expanding any type of farming operation contact us NOW!!

Contact: (27)84 583 3143 or Email – money@global.co.za

 

                                               

5 December 2017
Hansie Britz

THE ART OF RAISING CAPITAL

                             

 

A start-up business is usually on a constant look out for capital from outside investors. Investors include banks, venture capitalists, private investors, government, foundations and even family members.

Although “pitching” plays a major role when you are trying to raise capital, the realities of your organization are so much more important. You need to offer a product or service that is meaningful and long lasting.

Here are some tips you can use when raising capital:-

1. Build a Business.

The best way to get investors is to build a business immediately.

2. Get an Intro.

Have current investors, lawyers, consultants, accountants and other entrepreneurs introduce you to investors. This way, they will learn about you from sources they respect.

3. Clean up your act.

Get rid of obvious flaws in your system. Flaws often occur in your intellectual property, capital structure, management team and stock offerings.

4. Disclose Everything.

Don’t attempt to hide problems that can not be cleaned up immediately. Do not allow anything to damage your credibility.

5. Acknowledge, or Create an Enemy.

Believe it or not, investors do not want to hear that your business has no existing competitors. This only tells them that there is no existing market out there for your product or service, or that you are too stupid to use GOOGLE.

6. Don’t use old Lies.

Here are some examples of lies start-ups tell Investors. Refrain from using them and be prepared to come up with new ones:-

  • Our projection is conservative.
  • All we have to do is to get 1% of the total market.
  • Several investors are already in due diligence.
  • Key employees will join as soon as we get funded.

                                            

 

Thinking about setting up a business?

We have the know how to get you going!