It’s really easy to be unsuccessful – just keep on doing what you’ve been doing.
Not all sales growth is good – in fact, some of it is toxic to businesses and will cause business failure and loss to the bank. Very often, a business owner will chase revenue (or turnover) because he or she sees it as a sign of success and, to be fair, when the sales graph is […]
In our Business Insight for Bankers course we emphasise the importance of a business having a sustainable competitive advantage and, more importantly, that a lending banker needs to understand what that advantage is and determine whether it is, in fact, sustainable and one that will enable the business to generate future cash flow to repay […]
“I want a business with a moat around it. I want a very valuable castle in the middle. And then I want…the Duke who’s in charge of that castle to be honest and hardworking and able…” So said Warren Buffet, addressing MBA students at the University of Florida in 2007. The concept of a […]
As has been mentioned in earlier posts on this blog, effective working capital management is all about keeping the investment in the current assets under control so as to minimise the amount of funding required. But what if it the business is doing well and more working capital in the form of current assets such […]
We again plundered the Suitegum blog for some extremely useful insight into supply chain management which is especially important for smaller businesses when they rely on only one supplier of a key input. The following is taken from the Suitegum blog and you find more business insights on that blog here. The risk of supply failure […]
Effective working capital management is all about keeping the investment in the current assets under control so as to minimise the amount of funding required. But what does “keeping the current assets under control” actually mean in practice? In this context there are really only two current assets that can be managed and which have […]
This post from the Suitegum blog (a business that sells businesses) provides interesting insight into how a small issue in a business could have caused it to lose significant amounts of money and how it was rectified.
The business rescue process is an important element in managing credit risk in South Africa. The ability to liquidate or to take legal action in the event that a business that fails to repay is no longer the simple option that it used to be. For that reason, it’s critical that lenders have a good idea […]
Any time you have an opportunity to talk to clients about their businesses there are some key questions that you should ask to get to the core of what makes their business tick. The questions really are quite simple; What do you sell? Who do you sell it to? Who do you compete with? Why […]