Cash Flow is Your Company’s life-blood Business Mentors Warns SMEs
As the New Zealand’s only national, volunteer business mentoring organisation reaches its 21st anniversary, Business Mentors New Zealand warns that cash flow management is still one of the biggest issues facing small to medium sized enterprises (SMEs).
Business Mentors New Zealand CEO Ray Schofield points out that almost every one of the 250 or so requests received by Business Mentors New Zealand every month will feature to some degree problems with cash flow.
He explains: `Cash flow is the lifeblood of any small business. Regardless of how good your product or service might be, if you spend more money than you bring in your business will fail. Knowing what's coming in and what's going out is fundamental to running a successful business.
‘Of the 60,000 plus SME (small to medium-size enterprise) owners in New Zealand who have sought our help in the last 21 years, around a third of them have had serious problems with their cash flow.’
Next week, in association with BMNZ National Sponsor, Lock Finance, the mentoring organisation is hosting a special briefing meeting for business mentors in Christchurch on how help their clients better manage their cash flow.
Ray Schofield adds: `Many New Zealand businesses start up with very little in the bank and almost half will have run out of cash or come very close to it in the first years of operating. Faced with the additional burden of running a business in the aftermath of the earthquakes, many Canterbury SMEs in particular have a very narrow margin for error, so keeping an eye on cashflow is essential.’
For 21 years Business Mentors New Zealand (BMNZ) has been crucial in helping the economies of New Zealand’s communities. The nation’s only not for profit mentoring organisation, BMNZ does far more than help one business owner, in one company achieve financial success. Through the work of over 1,800 independent volunteer business mentors BMNZ enables people with recognised skills and success to put something back into their own communities.
Business Mentors provides access to a wide variety of volunteer mentors (who give their experience, skill and knowledge free of charge). The focus of the organisation is on developing capability, profitability, and employment generation. Business Mentors is funded largely by patrons from the private sector, with additional support from New Zealand Trade and Enterprise. It provides a mentoring service to any businesses that are trading with evidence of accounts.
There is no limit on the amount of mentoring sessions. The $150 registration fee allows mentoring for up to two years. The term of the relationship with a mentor depends on the objectives and goals both client and mentor jointly agrees upon. They can also contact their co-ordinator at any point for further assistance
For more information about Business Mentors New Zealand please visit www.businessmentors.org.nz