News
Issue No. 16 - April/May 2004
More cashflow stress for SA small business
Managing Director, Timothy Millar, says concerns over cashflow were causing the greatest amount of stress for small or micro—sized local business operators.
“Almost all businesses surveyed identified cashflow as a major area of concern,’’ Tim says. “Most businesses realise the importance of maintaining positive cashflow, however many appear to be operating with a very short—term view.
“Very few are preparing a detailed cashflow statement, instead only referring to their individual bank account balances when considering significant future purchases.
“This highlights a general lack of forecasting and cashflow projection that is vital for planning for significant purchases such as plant and equipment. By not making adequate cashflow projections many local businesses may be putting off the very strategies needed to grow their business in the future."
The Intrinsic Small Business Pressure Points report surveyed close to 100 small and micro—sized businesses across a broad range of industry.
“Our research shows that most of the essential ingredients needed for a business to succeed are being identified as important matters by small and micro—sized businesses – this is an encouraging sign," Tim says.
“Identifying issues such as cashflow, staffing, management and marketing as areas of concern is the first big step in the process of improving your business.
“However, other important issues such as quality of servi...
