North Shore Times : December 30th 2010
7 NORTH SHORE TIMES, DECEMBER 30, 2010 3338090AF 18 Piermark Drive North Harbour Industrial Estate Open between 8.00am and 5.00pm weekdays. Phone 09 415-5610 IMPORTERS FRIDGE CLEARANCE LARGE CAPACITY STAINLESS FRIDGE-FREEZERS SAVE UP TO 50% ON NORMAL RETAIL UNIT 6, 18 LINK DRIVE, WAIRAU PARK OPPOSITE FREEDOM FURNITURE, PH 09 444 4030 JANUARY CARPET Xmas New Year trading hours Dec 27-28-29 10.00am -- 3.00pm Jan 5th Normal Trading Hours All advertised prices include 15% GST Specials @ with 10mm Foam Underlay FREE per meter $119.00 100% Wool Cut Pile Heavy Duty per meter $139.00 per meter $45.00 per meter $119.00 100% Wool Extra Heavy Duty Cut Piles 100% Hard Wearing Loop Pile Carpet 100% Solution Dyed Nylons 240408AC Secure your Treework with us! • Arborists • Pruning for health, shape, light, view and safety • Tree removal • Power line clearing • Stump grinding • Hedge trimming 0800 873 396 www.treescape.co.nz 3204702AG TAKAPUNA $65 PER CAR OR VAN DEVONPORT $70 PER CAR OR VAN GLENFIELD $70 PER CAR OR VAN ALBANY $80 PER CAR OR VAN BROWNS BAY $80 PER CAR OR VAN TORBAY $85 PER CAR OR VAN All major credit cards accepted & most Taxi vouchers ($2 Surcharge applies) Private & company account available PH (09)488 99 00 Visit our website: www.presidenttaxis.co.nz Email: email@example.com AIRPORT TRANSPORT PRESIDENT-TAXI NO TRAFFIC HASSLES * TO OR FROM AIRPORT LUXURY CARS-MERCEDES-STATESMAN-FAIRLANE FOR ALL OTHER TAXI DESTINATIONS, A 20% DISCOUNT APPLIES WHEN ORDERING BY PHONE 9.99KG $ CHICKEN BREAST SCHNITZEL Bacon, Ham & Sausages made on Premises Highest Quality Meat at the Lowest Possible Price FamilyOwnedSince1995 Specialty Cuts Available ALL NZ MEAT SPECIALS END 10th JANUARY 2011 OR WHILE STOCKS LAST 575 Glenfield road ph 444-1207 Open 7 Days -- 7am-7pm • www.butcherjacks.co.nz NEW YEAR CELEBRATION SPECIALS THE MEAT SUPERMARKET FRESH / TEGEL Plain, Marinated or Crumbed 8.99KG $ BBQ STEAK FRESH NZ / QUALITY MARK Plain or Marinated ALBANY TIMBER DISTRIBUTORS DECEMBER SPECIALS - ALL PRICES GST EXCLUSIVE 100x75 Posts H4 R/S 2.4................................ $8.89 ea 75x50 Rails H3 R/S 4.8................................... $9.00 ea 150x19 Palings H3 R/S 1.8 ............................ $2.25 ea 100x25 std Grade H3 GT Decking................ $.99 Lm 100x25 Mahogany GT Decking.................... $4.20 Lm 100x25 Kwila GT Decking ............................ $4.30 Lm 100x50 Rad No. 1 H3 MG S/L 3.6 & 4.2........ $2.50 Lm Assorted Farm Packets from $50.00 Call in and see us. Prenail and Truss Specialists - Quoting Service Available Hours: 7am- 5pm Weekdays / 8am- 12noon Saturdays 66 Bush Road, Albany Phone: (09) 415 6889 Fax: (09) 415 6661 Email: firstname.lastname@example.org CALL IN AND SEE US FOR ALL YOUR BUILDING REQUIREMENTS & RECEIVE TRADE PRICES OUTDOOR SPECIALS (only while stocks last) "WE'LL SEE YOU RIGHT" 3353650AA CHRISTMAS & NEW YEAR TRADING HOURS Early closing: Friday 24th Dec 2010-1pm Closed: Saturday 25th, Monday 27th and Tuesday 28th Dec 2010 Open: Wednesday 29th and Thursday 30th Dec normal Trading hours Friday 31st Dec 2010 (closing 3pm) Closed: Saturday 1st Monday 3rd and Tuesday 4th Jan 2011 Business in Action Advertising Feature It pays to listen to gut instincts By SUE HIRST Unfortunately the story I have to tell is not a happy one. I could put a positive spin' on it, but I prefer to tell you the 'bald' truth in the hope we can all learn a lesson from it. It's a story of a client who unfortunately came to us about two years too late for us to save them from administration. The business started nearly 30 years ago and became very successful and profitable. About five years ago they branched out into a new division, complimenting their existing business. The growth wasn't properly planned and inexperienced people were put in charge of the new division and left to do their own thing'. They had no specific job descriptions and no budget and there was no communication between departments. As the owner was very hands on' himself he left them to it, presuming all was going OK because that's what he was told when he asked. It became apparent that some large jobs were finished at significant losses. Purchasing of materials etc. was done on an ad hoc' basis with no comparative quotes sought. Cost blow outs' were the norm' and no variance reporting was done. Overheads were completely out of proportion to rev- enue with too many managers who weren't income producing. It's easy to say Why didn't he make it his business to know?'' but he believed his employees. Some warning signs were apparent for some time. 1. The owners were putting cash into the business. 2. The owners sold their home to downsize and inject proceeds to cover creditor payments. 3. They borrowed cash from family members. 4. They took on more credit cards to access funds. 5. A few creditor stopped' supply, so managers shopped around to find others. 6. There were no cash flow forecasts prepared, so no understanding of cash position. 7. Cash management left to inexperienced person. The business owner knew deep down' he was in trouble, but did not face reality soon enough. What could they have done to avoid this problem? 1. Sought business advice from an independent' before embarking upon expansion. 2. Before injecting personal cash into the business test it on a financier -- if they won't lend to you, you have to ask why? 3. Checked the existing business was running properly before growth. 4. Ensure those managing/acquiring credit have training or experience. 5. Budgets for those in charge of divisions to ensure each is profitable. 6. Reporting and accountability for those in charge of each revenue/profit producing area of the busi- ness. 7. Ensure someone with experience is managing the cash and not keeping management in the dark. 8. Listen to your instincts and get help/advice quickly if you feel uncomfortable about the financial position. Sue Hirst is a director of CAD Partners, which operated CFO On-Call.
December 23rd 2010
January 6th 2011