03 Feb

Sunday Summary - what a week! Featured

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We’ve had a very positive and engaging week, and in this post we’d like to summarise some of the business advice we’ve been giving via our Facebook page .  The advice is basic and we have undertaken to answer any question for free.  We are encouraged by the interaction with our posts. Our purpose is to keep the content relevant, inspiring and make a difference wherever possible.

 

Below are some of the posts:

 

We will be posting some basic business advice that you might find useful. The Cabanites are prepared to give some advice for free. Here is the first from TBL Capital.

 

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If you have reached your credit limit with your suppliers and they will not supply you anymore until you have settled their overdue account, we have found the following works more often than not:

 

·         Tell your suppliers the truth about your cash flow situation. The risk is that they might get spooked, but generally they will be understanding, after all they still want your business

 

·         Come up with a realistic plan in paying off the account. Don’t over commit in an effort to please the supplier. Offer to pay interest. Try to get the best possible terms. Nothing infuriates a supplier more than reneging on negotiated terms.

 

·         Once terms have been negotiated, ask the supplier to ring-fence the old debt
Show your supplier your business plan and how you plan to get out of the cash flow situation

 

·         Request a new account at say 14 days to continue supply. If you’re a good negotiator you might be able to get better terms if you’re prepared to cede your new orders as security.
We’ve had a 70% success rate with our clients. Let us know if this has worked for you.

 

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Being an entrepreneur is a lonely path. Yes, your friends, family and partner will listen to you but mostly don’t understand. As entrepreneurs, we have a certain challenges that only other entrepreneurs understand. The reason is that they have probably gone through what you might be experiencing. For this reason, one should have a mentor and have a platform to share these challenges. Caban is a platform for sharing. If you don’t want to share on an open forum, inbox me and I undertake to answer all emails, regardless of the problem. I am prepared to mentor a few people online, This email address is being protected from spambots. You need JavaScript enabled to view it. . We would encourage you to share on an open forum, it inspires and helps other people with similar problems

 

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You have decided that you want to start your own business. So you tell your family and friends about your idea. Invariably you will get mixed reactions, but your instinct tells you that it will work. Doubt creeps in and you procrastinate. This is the most critical point. You either overcome your fear or you do nothing at all. We say don’t put yourself in a position where you look back and say” if only I took the step”. That is much worse than trying and failing. By overcoming your fear, you’re 50% there. Be courageous, take the step. Be an entrepreneur.

 

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One of the biggest challenges any entrepreneur encounters is obtaining funding for new ideas or for the development of existing business. Investors look at the following key issues before making a decision: Who am I investing with, is there a market for the product or service, is the value fair that has been placed on the business, is the money been asked fair in comparison to the history of the business, will the business need more money in the future, what has the entrepreneur put in themselves either time and/or money, how much money am I going to make and what is the exit strategy.

 
If you can answer the above questions properly and with conviction, most Angel Investors will back your project. SA Investors Network is one of the Caban Service Providers. We have over 6,000 Angel Investors. If you need free advice on how to go about it, please contact us

 

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All concepts or great ideas start in one’s mind - we have a brainwave and, rightfully so, think we have come up with a concept that will work. The big difference between a concept ever getting anyone else to buy into it, is people that just verbalise their amazing concept versus those that put pen to paper first.

I’m a Caban entrepreneur and I'm in the Film, TV and Media industry. As the saying goes "if I had a rand for every call, meeting or email with people trying to sell their concept to me", I'd be very rich. 99% of those calls go nowhere when I ask for their one page synopses.

The best way to realise your idea is to put it on paper. In the beginning you won’t know where to start, what formula or document to use etc. Just start writing the idea down and how you see it working. By doing this you will find yourself asking yourself many questions, and by answering and working through it till you get to a point of it still looking viable (which doesn't happen that often) you will have your basic document which you can now edit into the correct format to present.

If your initial document contains lots of pages, that’s a good thing. The more the better; it means you have put the correct amount of time and thought into it. Then break it down to no more than a 2-page document with all the correct headings. You don't want to give too much away up front; just enough to spark interest - but have all the verbal answers ready too.

Key issues to think of while writing :

·         Your target market - age groups - money spend

 

·         Will I need a sponsor? - who would be ideal? - then slant towards their return on investment

 


Caban can help with the correct format and writing the pitch document after you have all the information on paper.

  

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Sometimes you encounter business problems that seem difficult to solve. When this happens, leave the problem for a while. Go for a walk, gym, have a nap, relax your mind. Your subconscious is constantly working on the problem. After a while, go back to the problem, you will find it easier to solve than the first time round. If after a few attempts you cannot solve it, contact your mentor or Caban, we will do it for free.

  

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I’m all for MBA programmes. There are some awesome programmes which I got involved in. But what I found lacking in every programme? What does an Entrepreneur do when things go wrong. It fine to say how to operate when things go according to plan. But what do you do if it starts falling apart? How do you get out of it? How do you sort your cash flow problems? How do you re-strategise? We don’t have all the answers but we certainly have the experience. Contact us with your problems, we can help.

 

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The way we assist Entrepreneurs is by providing services to Entrepreneurs or companies at risk. What we mean by that is when a company needs services like business plans, websites, logos, brochures, videos, corporate presentations, motivational talks for staff, business mentoring, financial statements, submission tax returns etc. but cannot afford it, we do all the work but don’t initially get paid. We charge the client but the client only pays when they can afford it. For this risk, we take a share in the business. Therefore Caban will have shares in a string of business and still ultimately be paid. This is a huge boost for Entrepreneurs and companies.

 

We think it’s a good idea to do this on a weekly basis and would appreciate your feedback on this initiative.

 

Stay positive
Dave Romero

 

your cash flow situation. The risk is that they might get spooked, but generally they will be understanding, after all they still want your business;
• Come up with a realistic plan in paying off the account. Don’t over commit in an effort to please the supplier. Offer to pay interest. Try to get the best possible terms. Nothing infuriates a supplier more than reneging on negotiated terms;
• Once terms have been negotiated, ask the supplier to ring fence the old debt;
• Show your supplier your business plan and how you plan to get out of the cash flow situation;
• Request a new account at say 14 days to continue supply. If you’re a good negotiator you might be able to get better terms if you’re prepared to cede your new orders as security.
We’ve had a 70% success rate with our clients. Let us know if it has worked for you.

 

 

 

Read 15585 times Last modified on Sunday, 24 March 2013 19:59

2 comments

  • Comment Link Wednesday, 06 February 2013 07:22 posted by samuel Motlhakane

    can you please give me for information about Angel Investers. i manufacuture furniture on a small scale and need a start funding and i don't hev a collateral,can help me please.

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  • Comment Link Wednesday, 06 February 2013 00:00 posted by si

    Great summary Dave, well done and to all the Cabanites. Si.

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