Marketing & Finance
I met a prospect client recently. He has been in business for 10 years.
When he started out, his business offering was relevant to the economy back then.
His service offering was nothing very special, but he could market his services easily as there were not many similar competitors in the same industry.
Lately, he is facing bad cash flows, unable to meet payment schedule to his suppliers, and his clientele has dwindled.
I was looking at his financial statements, and spotted a few glaring anomalies.
His Manpower-To-Sales Ratio is extremely high, signifying he is not pricing his services correctly.
His DSO for Accounts Receivables are high, signifying Customers are not paying even Sales have been delivered.
Then I looked at his same financial statements for last 2 years, gosh ! Showing similar symptoms !
I then asked him, have you not been looking at your financial statements all this while ?
Your company has been sick for years, and you have not noticed it ?
He then asked me what he should do, and I told him that he is at the right place now.
Will help him fix his “issues” together – ie, Pricing, Revenue Streams and Margins, Cost Control cum Cost Down, Working Capital Management, Cash Control, Gearing, etc.
Tomorrow will be better.
If you need help, feel free to contact us at :
(O) +65 63851011
(M) +65 90880669
