Cashflow crises constrain your abilities and frustrate the desire to grow your business. For many business owners, the first impulse for resolving cashflow crisis is to borrow from the Bank. Unfortunately, the cost of capital in many African countries easily range from 25 to 35%. It’s hard not to default!
When businesses borrow from the Bank, servicing the debt often keeps the company more focused on paying the Bank than growing the business. On a daily basis, entrepreneurs who struggle to service their debt lose their businesses to the Bank.
Successful Inventory Control
Enhanced Supplier Credit
Most companies capture only a fraction of the value they create. The rest is lost to suppliers, competition and customers. There’s also the problem of ‘muda’ – many items in the company’s cost structure that don’t add value – from the customer’s point of view.
At the end of this 2-day in-company workshop, your team would:
(1) Uncover and fix the bottlenecks in your current inventory, credit and receivables management
(2) Implement the process to slash your cash conversion cycle (CCC) to margin scaling levels.
(3) Free up cash for investing in your growth without needing to go to the Bank to borrow.
In addition, you will be able to make more strategic decisions regarding unprofitable margins, as well as, ‘toxic’ customer segments. In some African countries, the government is notorious for breaching contractsand delaying payments for years, creating cashflow trauma for businesses.