03/09/2008 - 22:00

Cash-flow plan puts Foodline in front

03/09/2008 - 22:00

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Companies often fail because of a shortage of cash, even while they're profitable.

Cash-flow plan puts Foodline in front

Companies often fail because of a shortage of cash, even while they're profitable.
 And although profits from a business venture are a measure of its success, the constant 
flow of cash in and out of a business is vital.

Cash-flow planning is critical, therefore, to the survival and growth of a business,
 and unless cash is available at the time required, the business
 may have to close its doors.


For owner of Welshpool-based The Foodline Group, Justin Anderson,
 turning his business into a cash-flow-positive operation has been an 
immense struggle.
 A boilermaker by trade with "no idea about business",
 injecting a flow of cash into TFG has been no easy feat, particularly
 when trying to tame the company's "wild and out of control" growth at 
the same time.


TFG is among a group of four companies - Foodline WA, Austline Fabrications, 
Foodline Projects and Pumpline - providing specialised products and
 services to the food and beverages industries nationwide.


Established in 1995, the company has enjoyed rapid growth under the
 direction of Mr Anderson and his partner, Vanessa.


"We created the businesss, which stemmed from contracting to food and 
beverage companies initially in WA, and as it grew we were 
able to expand our services to customers and clients and our reputation 
within the food and beverage industry locally went from strength to 
strength," Mr Anderson said.


"From this time we developed and grew our other businesses, which would
 complement our range of services available to our clients.


"A major challenge we faced, though, was to remain cash-flow positive.
 With four companies, this was an enormous challenge.


"With rapidly growing businesses stretching our resources to capacity, 
this was a challenge we really needed to overcome to stay in business."


To overcome this challenge, Mr Anderson undertook a business course at
 Curtin University of Technology and quickly learned the importance of turning his businesses into cash-flow positive operations.


"From the knowledge gained from this process we were able to set in
 place an integrated management system (IMS) with procedures for all financial 
management tasks, followed by monthly dashboard meetings," Mr Anderson
 told WA Business News.


He said by documenting and auditing all aspects of the business, and 
comparing each of the four companies at dashboard meetings that
 documented various trends, TFG had become a profitable operation.

"All the TFG companies are cash-flow positive now and aged receivables 
are carefully monitored and analysed," Mr Anderson said.


"Through the long and tenuous journey of developing and implementing the 
IMS process, coupled with continual training and proactive management 
with a strong focus on human resources, we have achieved this outcome in 
each of the TFG companies.


"I think that our fundamental belief is that, for us, growth is a way of 
life, and we have to grow at all times.


"To grow as a company in strength, not necessarily in size; to further 
grow personally, in spirit and mind, and most importantly to further grow 
together."

Established in 1995, Foodline WA provides stainless steel pipe work,
 fabrication, machine installations and maintenance work to a wide range
 of companies, covering breweries, dairy, soft drink and food processing.
 Austline Fabrications specialises in carbon steel welding, polishing,
 pressure testing, complex pipe spooling and drafting, among other 
fabrication jobs.


Foodline Projects has built alliances over the years with companies
 in the food and beverages sectors, to manage their projects, while
 Pumpline offers surface preparation and coatings solutions to 
the spray and pump industry.

 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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