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SHOULD YOU SEEK FURTHER FUNDING WHEN THE PROJECT OR BUSINESS RUN OUT OF FUNDS: OUR CHIEF EXECUTIVE’S PERSPECTIVE.

Businesses often find themselves requiring more funds either to continue funding a project or for the day to day running of the business. Management often find themselves scrambling on the decision on how to raise the additional funds rather focusing on trying to find out how the business or project ran out of funds in the first place. oHhffdfg 

Was it an underestimation of the cashflows or failure to negotiate terms with creditors or that the people making the decisions on the project or business do not really understand what they are doing? It’s like a bucket with holes, no matter how much water you pour in it, it will quickly run empty.  

Until the holes that are draining cash from your project or business are fixed, plenty of funds can be raised but there will still be cash flow problems in the business or project. Doing the same thing over and over again but expecting a different result is the definition of insanity.  

Sometimes a different eye is required to conduct a professional and objective root cause assessment and analysis to find out what are the main causes of the problems in the business. The results of that assessment must be presented to you in the best way you understand which reveal the cause and effect approach. Otherwise the whole exercise is worthless.  

Once the causes and effects are understood, rational decisions will be made to improve the cash flow of the project or business to save the project from cost overruns or save the business from a total collapse. A pure understanding that cash flow is the heartbeat of a project or business is the beginning of making the right choices in project and business management. 

Choosing to start making the right choices is the beginning of wisdom!!! 


Eliah Mutaviri

Portfolio Financial Director at Hudaco Industries Limited
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