One decision can cause a chain reaction in the business ecosystem.. At Gokafoods our biggest market are schools. For now we made a decision to avoid supermarkets because of our low operational capital. Supermarkets hold out capital for long periods you may end up cash strspped if your operating with little running capital. This can drastically affect cash flows.
For example, if a super market with a 30 payment period took stuff for 100,000 they would hold that 100,000 for 30 days straight meaning you make only 10,000 in that time. If you gave products worth 20,000 to 5 retail shops daily you’d make 10,000 daily. Thats 300,000 in 30 days over 100,000 in 30 days. the science of revolving capital. So for that reason school canteens and retail shops have been our priority target market. In brief, cash sales.
Now this is what closing schools does. It closes our main target market. some will say but the retail shops are open. Yes, they are open but when schools are closed demand reduces greatly because parents nolonger buy daddies, doughnuts and other things kids take to school. When at home the kids are given home cooked breakfast like fried irish, matooke, boiled cassava and potatoes. No family has daddies for breakfast daily.
Now get me right, am not making a case for the justification of closing school or lack of justication. All am saying is one decision can kick start a chain reaction of many other situations hence decisions have to be with thorough examination of the chain of situations a particular decision may generate and a clear plan to should be put in place to mitigate the impact of these out comes. The domino effect has to be taken care of.
In the mean time let’s continue to survive through the storm. Lets continue to stay safe and stay alive.
Jaluum Herberts Luwizza is a Speaker,Writer, Columnist with the C.E.O Magazine and Contributor with the Nile Post.He is also a Business Consultant with YOUNG TREP East Africa’s No.1 Business Management and Consultancy firm that helps people start and grow profitable businesses.twitter:jaluwizza
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