Gryphon launches new business initiative
Business Cluster Breakfasts is a new initiative hosted by Gryphon Enterprise Development.
The programme was launched at Marechelle Country Estate, in Kempton Park, on February 24.
Jacques van Heerden, CEO of Gryphon Enterprise Development, led the meeting, explaining the process behind it.
“With these breakfasts, we’re going to give each table a different topic to discuss,” van Heerden said.
“Instead of one speaker, everyone at each table will be given an opportunity to discuss the topic from their point of view.”
At this inaugural meeting, where there was only one table, the topic was positive cash flow, and its definition, the negative impacts on it and solutions to its hindrances were discussed.
Positive cash flow was eventually defined by those seated at the table as a sustainable surplus of income which allows you to cover all the necessary costs and have enough to be prepared for unexpected expenses.
The attendees next listed the reasons why there might not be positive cash flow in a particular business.
Unexpected costs for the business or in the owner’s personal life were mentioned.
Others said the cancellation of a big contract, the arrival of a new competitor in the market and other changes in the market, such as technology, are strong factors in reducing positive cash flow.
The group also agreed the so-called PESTLE – political, economic, social, technological, legal and environmental reasons have a big impact on cash flow.
Another point made was the collection of monies owed by debtors.
“We often gloss over it but why do we have such a problem with collecting money from our clients?” van Heerden asked.
Uncommitted staff and incorrect planning were also named as stimulants of negative cash flow.
Finally the dialogue moved towards solutions to the obstacles of positive cash flow.
The team concurred that coaching staff and yourself as a business owner, investing in bookkeeping systems and staff, and saving money where you can, will help improve cash flow.
Furthermore, they said a business has to run efficiently, including cutting products that don’t sell well or clients who never pay on time, and more attention should be given to pricing.
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