Article September 1, 2003 Issue

We put our business IN GOD'S HANDS

By Usha Zaveri

A FEW YEARS AGO, my brother, sisters, and I started a new business, and of course, we were hopeful that it would have good prospects. However, slowly we began seeing inefficiency in every department. We would receive orders and accordingly order supplies and materials required to finish and deliver the goods. But often the suppliers would delay; and so our employees would sit idle, and we would be unable to make our deliveries. Idle capacity is the most depressing sight in any work.

Finally the materials would arrive, but to our dismay we would find that they were not to our specifications. Consequently, we would have to request that our buyers extend our delivery time, and this delay would cause them to become quite annoyed. These delays affected our turnover and eventually caused our cash flow to dry up. Then we had to borrow.

We began a vicious cycle. Unreliable suppliers, insufficient orders, shortage of cash flow, and piling up of interest, then borrowing again. It was difficult to continue the business. Yet, it would be much more difficult to close it. We knew that the moment we closed, the banks and our private lenders would be demanding payment.