Turning the Company from Red to Black
posted on 25 February 2011 | posted in
Business and Finance
One day a friend of mine asked me whether I was interested in taking charge of a company which was almost facing closure - having worked for an outsourcing services company in the past, it was a challenge I liked. I told him that I would do it. Before joining I learned as much as I could find about the company. It was a plywood manufacturing unit with almost two hundred workers, ten supervisors and an accountant. The day I took charge I called a meeting of the workers and found that a lot of back wages had to be paid. I promised them that all their wage arrears would be settled within six months. We were making quality plywood and we had a good market. We did not have enough working capital. The bank refused to advance us any money as we had overdrawn our account. I went and met five big buyers and explained our situation. Each of them agreed to pay the value of ten truckloads of plywood in advance. With each supply they will take back half the bill amount and pay only half. We worked really hard to keep to our deadline and we did it. In eleven months' we were able to pull back the company from the brink of disaster to a profit making one.
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