Tag: cash flow

The next few weeks (and beyond) will be a testing time particularly for smaller businesses. Best to see it as a stress test, a way to make your business stronger.

A step-by-step, practical guide on how to purchase your first investment property, written in easy-to-understand, conversational language that explains complex concepts simply. Most people believe that property is a great investment, but that in order to get into property you need money, contacts and experience.

At a time when many small businesses in South Africa are already struggling as a result of the recession, the global COVID-19 crisis is a bolt out of the blue. It is an event that has caught even the best prepared businesses by surprise, and it is a genuine existential threat for many of the small businesses we deal with in our daily lives.

Further to the fiscal package as outlined by President Cyril Ramaphosa in his speech on the Escalation of Measures to Combat COVID-19, the Minister of Finance has announced on 29 March 2020 certain exceptional tax measures to be implemented.

Findings from the pre-lockdown COVID-19 National Small Business Survey shows deep economic challenges for small businesses during these unpredictable times. The survey canvassed thousands of small businesses throughout the country, providing valuable insight into the devastating effects as a result of the COVID-19 pandemic in the sector, these effects deemed to worsen significantly over the coming weeks. 

In the midst of a recessionary domestic economy, favourable inflation outlook and lower oil prices, the South African Reserve Bank (SARB) got room to cut interest rates by 100 basis points to 5.25%. A rate cut, downside inflation outlook and supportive rand boost agriculture rebound.

During tough economic times, it arguably makes sense for businesses to simply look to buckle down and ride out the storm. However, while ‘waiting it out’ may appear to be the best practice in such times, there may be a missed opportunity for business growth in a tough economy.

An interview with Elad Smadja, Head of Financial Operations, Taurus Capital, and Dr Ivor Blumenthal, CEO, ArkKonsult, discussing how a steady flow of cash is required in order to continue functioning successfully and that this applies equally to companies both large and small, cutting across all industries including law firms.

Any business requires a steady flow of cash in order to continue functioning successfully. This applies equally to companies both large and small, cutting across all industries including law firms. While this basic principle may seem self-evident, it was one of the main reasons for the dot com crash in the 1990’s and remains a catalyst for why many small businesses get into trouble. 

The construction industry is unique in that developers, manufacturers, suppliers, contractors and sub-contractors are all in the same cash stream, and when a company at the top end of the chain becomes financially distressed it has a knock-on effect on the rest of the industry.