Page 16 - NHBRC

The National Home Builders’ Registration Council (NHBRC) is investing in emerging female
CITY PRESS, 29 MARCH, 2015
entrepreneurs in the construction industry by enabling 80 of them to attend a business
development programme at the Gordon Institute of Business Science (Gibs) in Johannesburg

I t is the lament of small businesses everywhere ... cash CASH AND THE ART OF
flow – how to get it and keep it flowing into the business,
not just out of it.
index
Managing cash flow
Portia Silinda of Tarsil Investments, White River,
Mpumalanga: You can’t overemphasise the importance
of cash flow. It can mean the difference between opening
and closing your business. FLOW
Mabel Motsifane of Mabel’s Trading Services,
Polokwane, Limpopo: In the bill of quantities contained
in a tender, it’s compulsory to fill in a summary of your
cash flow and how you plan to manage it for your project.
Gloria Senzo Madinane of Madings Business
Enterprise, Roodepoort, Gauteng: You must know your
income and outflow because you need to know how to
balance it.
Matshego Manaswe of Moselebane Outdoor Trading, Cash flow problems and mismanaged
Polokwane, Limpopo: When you go to the bank to apply
for an overdraft, they will want to see your cash flow first.
That’s how important it is. finances are the major causes of business
Tshifhiwa Mudau of East of Eden Trading 349,
Thohoyandou, Limpopo: It’s like a black line – cash must failure. One needs to plan properly, keep
keep flowing in and, hopefully, more in than out.
track of costs, chase payments due and
Chasing money owed
Sindile Hlongwane of Thirhani Nkateko Projects and
Developments, Booysens, Johannesburg: You need to set realistic goals, NHBRC delegates told
ensure your client pays you on time, because if your
expenses keep increasing, but your income dries up, you Sue Grant-Marshall
will need to start borrowing money.
Junior Baloyi of Kanjo Business Enterprises,
Polokwane, Limpopo: And you will have to pay interest should be signed by the consultant. Usually, they pay Motsifane: I once had a really big contract that generated
on any money you borrow. It’s not the best way to twice a month and you need to submit a certificate very little income. I tendered for a road in a joint venture
go. every time you send an invoice. and was ripped off. I learnt the hard way that it’s better
Motsifane: Some of your expenses are time- BE SURE It’s our right as a contractor to charge them to stick with projects I can personally manage.
bound, such as wages. You need to pay your interest for outstanding payments, but
workers’ wages when they expect it, so you Is your builder registered sometimes we’re afraid to do so in case we are
are going to need to chase that money. with the NHBRC? Check at not given another contract. Avoid stock sitting in a
Hlongwane: I always make sure I establish Silinda: It’s vital that you know upfront warehouse
a good relationship with the person handling www.nhbrc.org.za/builder-search what building contract you are signing. If you Moloko Machaka of Ntitja General Trade,
my accounts in a company. If none of my or call 0800 200 824. For other don’t, then you won’t know how to manage Polokwane, Limpopo: You shouldn’t hire a machine until
invoices are reflected in the system, then that questions, SMS 34263 with the relationship in terms of payment. the site is ready. It’s a waste of money if it just sits there.
person warns me. But I know that some people do so. Ideally, your site
opportunity
It means I can resubmit and push my invoices. the keyword NHBRC. manager should inform you when you’ll need the plant
If you only realise at the end of the month that SMSes cost R1.50 How important is an machinery.
your invoices are ‘missing’, you’re already over 30 accountant or bookkeeper? Silinda: I make sure I don’t pay for plant if it’s raining,
days. Then you need to make a plan. I backdate my Thato Mokwena of Matjitjis Business Trading, for example.
invoices and always, but always, keep a copy of them and Polokwane, Limpopo: I have a bookkeeper because I’ve Motsifane: Actually, suppliers do take unforeseen
get the project manager to sign them. never done any accounting in my life. I’ve had my first circumstances, such as bad weather, into account.
Madinane: I follow up on my invoices, asking where my exposure to it at Gibs business school.
money is because it is sometimes only then that you will My bookkeeper explains everything to me, so I am
be told you have no tax clearance or some such thing. learning all the time and he spells out how much I need Debt collecting
Manaswe: I make copies of all my invoices so that, in to pay the SA Revenue Service (Sars). Mudau: It’s really important to have systems in place
case of problems, I can take them to the office and check Motsifane: I have an accountant, even though I have to collect the money you are owed. Insist on these when
my client’s invoices against mine. This also helps them to some knowledge of accounting. This is because, with new you draw up or sign a contract. Once you have them you
see I am a determined Sars rules and legislation from next month, the accountant can refer to them all the time. I believe in writing everything
client, that I keep will know what we need to do to comply in terms of our down in black and white.
records and they business. It’s called record-keeping and it works.
cannot take me for
granted.
Motsifane: On landing a big contract …
When we invoice a Silinda: I don’t assume anything until I know the
client, we submit a money’s in the bank. I’ve heard of people rushing out and
performance-based buying a car the moment a contract is signed, but that’s
certificate that the last thing on my mind. I do my cash flow, my human
resource management, and get the latest prices from
suppliers, because they might have changed since I put in
ON THE my submission, and then I negotiate with them.
RECORD
From left
to right:
Tshifhiwa
Mudau,
Gloria
Senzo
Madinane,
Sindile
Hlongwane,
Portia
Silinda,
Mabel
Motsifane,
Junior
Baloyi,
Thato
Mokwena,
Matshego
Manaswe
and Moloko
Machaka
PHOTO:
ELIZABETH
SEJAKE

A project in partnership
with the
NHBRC