I’ve never met a business owner that went into private enterprise with a view of failing. The vast majority of business owners are highly capable with a vision of succeeding and contributing to society through their commercial endeavours. Unfortunately, as we know, not every business makes it. Many business owners will diligently print their end of month Profit and Loss Statement and Balance Sheet, then scratch their head wondering why they are making profit but have little c
Franchisors and franchisees have an intimate relationship. In the past, there has been the analogy to a parent/child relationship. Initially, at the commencement of the business, with the franchisee adopting the role of the child, the franchisor as the parent, the franchisee looks to the franchisor for all the assistance and support they can provide to get their business up and running and generating profits.
As the child moves into their teenage years, i.e. the franchisee
Typically, the Christmas & Easter periods are a difficult time for many businesses as most industries shut down during these holiday seasons, thus having a significant impact on business cashflow. This can often put the “last nail in the coffin” of a business suffering financial difficulty of some sort. This month’s case study looks at a client who suffered cashflow issues which were brought to the surface by actions from their bankers during this difficult trading period.