Today I was catching up with my business partner on how we are going to move forward. The last time we have been running as a proper business was back in 2021 which sounds kind of nuts considering we are in 2023 now. I closed the warehouse down in February 2021 and we managed our stock on a order and deliver direct from factory basis with no stock holdings available. Not great as you cannot top up clients as required and this does knock your bottom line as transport is not cheap. 1 pallet being delivered compared to 30 or 40 is nearly double the price.
Why we basically went into survival mode was firstly there was a shortage of raw material and those that were supplying were running the risk of playing bank for companies. Most of the bigger accounts changed from 30 days to 60 days and even then some didn't pay and have since gone under. We saw this and would rather not be put at risk by shutting our doors servicing a handful of cash accounts.
The carnage in the manufacturing packaging industry is clear to see as the competition has more than halved in just 2 years. The good news is our first order of the year from our supplier has been delivered in full without the normal 40% with 60% short delivered.
I can hardly believe this so I am not going to my list of clients just yet and will concentrate on cash clients for January and February first. If things go well I can pull in the others who have been waiting patiently for nearly 30 months. The idea of setting up somewhere in Europe is still at the top of the agenda ,but having a constant income flowing first makes more sense. These clients and any new clients could be serviced over the phone along with a flight back and forth every two months.
One of my old friends from the Army days is currently importing courier delivery pouches from the UK as a client demanded eco friendly recycled/biodegradable. We know where the market is heading with carbon emissions etc and this will become the normal and won't be so niche. These are not cheap as no one is manufacturing locally and can get my hands on the raw material locally which is cheaper than the normal plastic. Always people have the impression going green is more expensive and this is not necessarily true. His clients are paying 3 x more for a product that should be literally the same price or less.
Still positive news as now I am move forward and start replenishing the cost of having no real income for over 2 years. I just think we are fortunate to still have a business as so many are no longer around.
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Sounds like it has been a rough time. I am glad that you are still getting by and things are still moving forward though. Hopefully you can be no your way to your new location sooner rather than later!
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I hope so as the plan was always to fly back and keep the current clientele happy and on board. Having an income source is vital and why throw it away when it is available.
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Yeah, at least until things are in full swing with the new side of things. There might be a point where it doesn't make sense anymore to keep it up. As long as you can find away to make sure your customers are taken care of.
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There are two dates in business: the first when you sign up and the second when you decide to run it properly. It really seems you have just encountered your second one! Best wishes for this boosted restart and best wishes for a shining 2023 either
Thanks for that as I have no idea what to even expect this year as I am hopeful the supply issues have gone for now at least.
Happy to hear you're still soldiering on.
Such a tough situation in SA right now!
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Yes, sadly you are right as there is always something fighting against you.
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Well done on sticking it out! Good luck going forward now!
Thanks we should be good for now though as long as the raw material doesn't dry up like before.
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Oh yes, this sounds as great as a breath of new air flowing through. I like the idea of bio-degradable material and it will become a flooded market of demand to supply.
Good going and we wish you all of the best in this recovery!
!BEER
Still very niche however this should start to become the normal and only supply as the trend is going to move away from normal plastics. I hope so as the aim is to rebuild and move at some point.
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We simply cannot wait for plastic to be replaced by bio-degradable materials, as our rivers and oceans will stopped to be littered with the stuff.
I think that you have a good idea and I also think that that it might become a massive market.
All strength to you guys.
I hear you loud and clear, although this year will be my hardest year I think. Funny I also had a meeting with my partner today to see how to move forward, but if we can make it this year, we should be good
Lets hope we we are all good this year as the rough stuff is far from over still. I am still reluctant to jump straight in as I am worried I will lose the clients I have worked so hard to keep on hold. Thankfully they are adamant they want to be on our listing as we do do things other companies don't do and that is provide a genuine service with an open book policy. If the price is up 20% this month and drops back down next month you get the price we pay and why our price fluctuates along with the market.
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BEER.I mean, the way things are going and getting expensive, doing business has also become very difficult. Like it takes two to three months to run the business and we have to pay rent and everything out of pocket. And even after that if the business is not giving you profit then it is better to close it and move on to the next one. And maybe our destiny is written on the place where we are going and our business starts going there very well. We will pray that you make great progress in the coming days.
Thats great news, back to the grindstone for you!
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2021-2022 was hard for everyone, I hope this new year will bring more revenue to your business and give you chance to scale your business more. Many businesses have shutdown due to inflation and many people have become jobless due to this, this is alarming. Yes you are right, your business is standing and running. Wish you best of luck with the upcoming challenges in your business.