Sabretooth tiger
///Member
Sorry to hear Ralf.
I am with Yaseen on this one, let the fanatics pull in, and do a event at your shop.
I am with Yaseen on this one, let the fanatics pull in, and do a event at your shop.
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Read the WELCOME ALL BMWFANATICS post.
do you pay beggars ? ......because I am now begging !
- Thread starter Ralf*
- Start date
Hugo_za
Well-known member
Ralf@Speedway Motorsport said:It is now with the most embarrasing head held low, that I am making this posting.
essentially I am now reverting to begging !
:beaten::beaten::argh:
Try as I may, I just cannot get the business to turn over enough to cover the basic costs of remaining in business, and have been going down the drain this whole year, probably around R20K per month, even though I have had some BMWFanatics support, it still seems to be around a 1% success rate of enquiries (PM's etc) vs actual trade done
and now the creditors are starting to force legal action, our stock levels are at an absolute low due to blocked accounts.
Business Rescue practitioners have quoted me in the region of R2000 per hour to work on the business when they place it in Business Rescue........how am I supposed to afford these sort of fees ? :thumbdo:
I fear that my staff will have a gloomy Festive season
Essentially I am now a plain old beggar, but if I don't ask, I will never know
I have set up a PayPal account for those who wish to use this format via an "online begging" website
http://www.cyberbeg.com/m.php?id=37941
or alternativelly our banking details are
TOWFAB cc
ABSA Cheque account
Central Ave Kempton Park
40 8089 5685
branch code 632 005
once again, to the FANATICS that have supported the shop over the last year or two, a massive THANK YOU, without you the doors would probably have closed around 6 months ago, but the bit of trade I have done with fellow BMW fanatics, has made a small contribution in keeping the business alive. :ty::ty:
right...now I am going to go and hide under the office desk with my head held low in SHAME !
Also just want to say there there is nothing to be ashamed of. Much respect for having the balls to put it out there and ask for help, rather than pretending everything is fine! The universe has a way of helping when you ask, and this will be no different. Respect and best wishes bud!
AdiS
Well-known member
I commend the fanatics community for the positive response and willingness to help, and by all means, I encourage the community to assist in whatever way they can, be it word of mouth, support through patronage or a cash donation.
I do however, have to ask the difficult questions. I will probably be chastised for this, but I think they are valid questions in this situation.
Effectively, a cash injection for this business is being requested. If the current business strategy and market conditions combined have lead to this point where the business has not been cashflow positive for months on end and the result is that the business is unsustainable right now, I have to ask what the strategy will be, following a short term cash injection, to make the future any different?
In other words, lets assume the community gets together and donates X thousand to the shop through whatever means. This might help with some immediate cashflow issues. Most economists however agree that we are in for a difficult 2015, where the economy will come under increasing financial pressure. The inference is that the market has the potential to worsen, not improve, meaning that this business will be put under further pressure in the near future.
So while a cash injection might tide it over for a month or two, it won't make the business any more viable than it currently is. Now I REALISE that I am playing devils advocate here, but rationally it seems that in order for the business to be sustainable at all, fundamental changes are necessary.
I probably seem incredibly insensitive to Ralf's situation, but if this was a business pitching to investors for additional funding, these are exactly the questions that they would be asking. So, apart form the short term cash flow issues, the REAL issue is, how does one turn this business around in a potentially worsening market to become cash flow positive and sustainable? If anything, that's where we should be focusing our efforts to assist.
I apologise if I appear insensitive or offend anyone.
I do however, have to ask the difficult questions. I will probably be chastised for this, but I think they are valid questions in this situation.
Effectively, a cash injection for this business is being requested. If the current business strategy and market conditions combined have lead to this point where the business has not been cashflow positive for months on end and the result is that the business is unsustainable right now, I have to ask what the strategy will be, following a short term cash injection, to make the future any different?
In other words, lets assume the community gets together and donates X thousand to the shop through whatever means. This might help with some immediate cashflow issues. Most economists however agree that we are in for a difficult 2015, where the economy will come under increasing financial pressure. The inference is that the market has the potential to worsen, not improve, meaning that this business will be put under further pressure in the near future.
So while a cash injection might tide it over for a month or two, it won't make the business any more viable than it currently is. Now I REALISE that I am playing devils advocate here, but rationally it seems that in order for the business to be sustainable at all, fundamental changes are necessary.
I probably seem incredibly insensitive to Ralf's situation, but if this was a business pitching to investors for additional funding, these are exactly the questions that they would be asking. So, apart form the short term cash flow issues, the REAL issue is, how does one turn this business around in a potentially worsening market to become cash flow positive and sustainable? If anything, that's where we should be focusing our efforts to assist.
I apologise if I appear insensitive or offend anyone.
Ralf@Speedway Motorsport said:
The underlined observation points to the likelihood that the value proposition is simply too low to be attractive. Predictions for growth in GDP for SA next year are in the region of 1.3%, where in other emerging economies similar to ours it's closer to 6.5%. It means that next year will be worse than this year as people have even less disposable income. Without having sight of a balance sheet for this business it's not prudent to just say that it should be wound up, but you have zero option other than to immediately and ruthlessly cut overheads. Staff need to be retrenched or put on short-time and every expense examined to see if it can be eliminated completely. However, when suppliers are refusing to deliver, the writing is usually on the wall. You'll have to consult with your major suppliers and convince them to stick with you to allow you to trade your way out of trouble. And that you can only do if you have up to date financial statements. Don't waste any time in getting your financial data up to date and consult with your suppliers. All it takes is one court application by one creditor and it will be game over; it won't be easy to stop the tidal wave of similar applications by other creditors after that.
I would seriously look at where you can cut on overheads as suggested... this year has most definitely not been great for me but I survive because of very low overheads
if it means you are on the floor mounting tires when the shop is busy to save when the shop is empty then do it (maybe some part time staff for busy days)
also maybe some transparency with your staff would help motivate them to work harder and better to improve trade
if it means you are on the floor mounting tires when the shop is busy to save when the shop is empty then do it (maybe some part time staff for busy days)
also maybe some transparency with your staff would help motivate them to work harder and better to improve trade
Auditor said:
You know in a little bit more than a month its Christmas right? You know these "staff" you are talking about are humans with real families and mouths to feed... I presume like your nick suggests, you are an auditor...
I feel very sorry for Ralf but my heart bleeds just as much for the people around him that is being affected by this. And that is why I said, yes help Ralf, but don't forget about the staff...
Don't be mislead my my forum name. I'm not an auditor, I'm something far more sinister. But the business owner is facing the choice of liquidation or retrenching staff. Clearly he'll have to make the painful decision which option to choose; himself being left with nothing or staff being paid salaries for no work. It's an extremely painful decision, but it has to be made either way.
andre320D
New member
Well here is my 2c..
I suppose there are many business fanatics who could offer to take a look at the business(obviously with Ralf's permission) on all angles and give ideas/suggestions to the way forward.
I think it is very brave of Ralf to lay it out on a "table" such as this.
All the best man. If I lived in GP I would popped in.
I suppose there are many business fanatics who could offer to take a look at the business(obviously with Ralf's permission) on all angles and give ideas/suggestions to the way forward.
I think it is very brave of Ralf to lay it out on a "table" such as this.
All the best man. If I lived in GP I would popped in.
interesting thread. if i can chime in my 2c.
obviously, hosting some events to raise funds will help, if only in the immediate short term.
however, if you can combine this with those that could possibly pro-bono consult with Rolf on his business... perhaps someone with a process engineering background, perhaps someone with a fin background..
pm rolf, offer some time as a favour, i think ultimately, it might not be rolf and or his business thats lacking but perhaps just a poor market, independant outlets are suffering as the big franchises are just killing the market.. but perhaps a angle or 2 from those with the right credentials might just shed some light on a adoptable approach that might turn the business around...
obviously, hosting some events to raise funds will help, if only in the immediate short term.
however, if you can combine this with those that could possibly pro-bono consult with Rolf on his business... perhaps someone with a process engineering background, perhaps someone with a fin background..
pm rolf, offer some time as a favour, i think ultimately, it might not be rolf and or his business thats lacking but perhaps just a poor market, independant outlets are suffering as the big franchises are just killing the market.. but perhaps a angle or 2 from those with the right credentials might just shed some light on a adoptable approach that might turn the business around...
zaleonardz
Well-known member
The issue is not Ralf's business model.
The issue is that there simply is no trade, the consumer is under a world of pressure, the economic outlook is bleak.
Therefore people are not spending money,
While you can look at your overhead structure to a point, you cannot get past things such as rent, levies ect.
The salary bill in Ralfs case, is obviously a lot of money, but its not massive,
I economical barromoter is not the news paper, or what the radio says, its my little local spares shop.
You can instantly gauge the market activity by how busy Wayne is, its been so for years, if wayne is busy, the retail sector is busy.
Go walk in the malls at the moment, its near deserted, buddy of mine at branded dealership on the east rand says where they usually move beween 300 and 500 vehicles through their workshop every month, they are currently doing 100.
I have been there myself with Dent Doctor, there just simply is no business, and because there is no business competitive industry becomes violently competitive, so folks are slitting each others throat to make a sale.
You cannot illuminate the rent component, nor the salaries, because if you do, you close your doors.
You cannot REALLY market what Ralf is offering to the public because it is hyper competition, there is a tyre place on every corner.
The only way to drastically change would be to obtain a revenue stream independent of the retail sector, such as an AVIS or something that is moving volume, but that's not easy to get, and you kinda have to have an uncle or someone giving you the business, because in this country even if you tender, and come in cheapest, business is going to be given to cousins/relatives anyway.
When I went through these tough times, I put my wife in the shop, and I went and got extra work.
But retail sector is only going to get worse.
Does any of the fanatics hold a power of a fleet or a couple of fleets that can divert requirement his way.
Ralf, maybe you can leave Jackson in charge, and go pick up a few flights or something.
The issue is that there simply is no trade, the consumer is under a world of pressure, the economic outlook is bleak.
Therefore people are not spending money,
While you can look at your overhead structure to a point, you cannot get past things such as rent, levies ect.
The salary bill in Ralfs case, is obviously a lot of money, but its not massive,
I economical barromoter is not the news paper, or what the radio says, its my little local spares shop.
You can instantly gauge the market activity by how busy Wayne is, its been so for years, if wayne is busy, the retail sector is busy.
Go walk in the malls at the moment, its near deserted, buddy of mine at branded dealership on the east rand says where they usually move beween 300 and 500 vehicles through their workshop every month, they are currently doing 100.
I have been there myself with Dent Doctor, there just simply is no business, and because there is no business competitive industry becomes violently competitive, so folks are slitting each others throat to make a sale.
You cannot illuminate the rent component, nor the salaries, because if you do, you close your doors.
You cannot REALLY market what Ralf is offering to the public because it is hyper competition, there is a tyre place on every corner.
The only way to drastically change would be to obtain a revenue stream independent of the retail sector, such as an AVIS or something that is moving volume, but that's not easy to get, and you kinda have to have an uncle or someone giving you the business, because in this country even if you tender, and come in cheapest, business is going to be given to cousins/relatives anyway.
When I went through these tough times, I put my wife in the shop, and I went and got extra work.
But retail sector is only going to get worse.
Does any of the fanatics hold a power of a fleet or a couple of fleets that can divert requirement his way.
Ralf, maybe you can leave Jackson in charge, and go pick up a few flights or something.
ChefDJ
///Member
I also agree with Leonard, which is why I said the fleet maintenance isn't easy to get into unless you offer the fleet manager a little something for his back pocket. That, I'm afraid, is dirty business in my eyes.
And yes, people aren't spending money, especially on vehicle maintenance. So what does it help throwing money into the account to ward off the debt collectors and sheriffs if the same is going to happen again next year, when people spend even less, and the business is in debt once more? I know Ralf has committed his life's savings and all for the business, and so it makes it difficult to just up and leave, but maybe he can instead close the door to doing tyres and alignment, and open a door to a new venture? Start something that people will indeed spend money on. He already has a team of staff to follow him and help him in a new venture. He doesn't necessarily have to let them all go.
His shop is massive and so rent must be high. Move the business, and start something else possibly. It's an option.
And yes, people aren't spending money, especially on vehicle maintenance. So what does it help throwing money into the account to ward off the debt collectors and sheriffs if the same is going to happen again next year, when people spend even less, and the business is in debt once more? I know Ralf has committed his life's savings and all for the business, and so it makes it difficult to just up and leave, but maybe he can instead close the door to doing tyres and alignment, and open a door to a new venture? Start something that people will indeed spend money on. He already has a team of staff to follow him and help him in a new venture. He doesn't necessarily have to let them all go.
His shop is massive and so rent must be high. Move the business, and start something else possibly. It's an option.
prado
Active member
One idea I can add is to mail me a flyer, ad or details of your business. I will post it on my Facebook page. PM me for my email address. Or simply contact me through my FB Page, Bavaria Art Studio and please post as much as you like on there!
I have many family and friends in the motor trade - Revo, VAG Café, S & T Auto Services, etc. who have many facebook friends they will share your information with.
Maybe those of us who are Facebook addicts can do the same - share your business on their page and hope the advertising will help.
I have many family and friends in the motor trade - Revo, VAG Café, S & T Auto Services, etc. who have many facebook friends they will share your information with.
Maybe those of us who are Facebook addicts can do the same - share your business on their page and hope the advertising will help.
Hey guys,
A few fanatics have come together to assist Ralf with turn around and assessment of his business case.
The group, comprising of a few business owners, finance professionals and a few business / management consultants, are willing to advise Ralf.
This is all subject to Ralf's willingness to participate as well as transparency for the entire venture to work as a sustainable turn around.
If this all goes according to plan, then there will be an improvement.
The first meeting is scheduled for the weekend, so let's all hold thumbs.
A few fanatics have come together to assist Ralf with turn around and assessment of his business case.
The group, comprising of a few business owners, finance professionals and a few business / management consultants, are willing to advise Ralf.
This is all subject to Ralf's willingness to participate as well as transparency for the entire venture to work as a sustainable turn around.
If this all goes according to plan, then there will be an improvement.
The first meeting is scheduled for the weekend, so let's all hold thumbs.
