Our mission

We aim at rescuing companies, businesses and individuals to prevent liquidation and / or sequestration.

Financially sound solutions

Enco administrators employs a professional and dedicated team which is able to handle all aspects of business recovery and insolvency with empathy.

 

Discussions

We always advise our clients not to lose focus. By not losing focus, making tough decisions and exploring all options, you can save your business, even from the verge of collapse.

Firstly we will assess and assist you to weigh up all the options before deciding to save your business. The risk assessment will include inter alias the following:

  • Financial risks
    • Do I throw good money after bad?
    • Is it really money that caused the business to get to this point?
    • Do I take the risk and what is my realistic potential return?
  • Market risks
    • What is the realistic marketing position of the business?
    • Is there really enough potential to warrant me keeping the business alive?
    • What are the underlying dynamics within the market, such as monopolies?
  • Legal risks
    • Is there legislation that will have a negative impact on my business?
    • What about contractual obligations?
  • Competitive risks
    • Does the business have what it takes to compete with other players in terms of quality, service and price?

    Once we have weighed up all the positives and negatives and feel comfortable that the business can and must be saved, drastic action needs to be taken.

    • Step one: what are your assets?

      First ascertain what kind of assets your business has.

    • Balance sheet assets
      • The people within the business.
      • The product or service offered.
      • The reputation of the business and its owner/s.
    • Step two: what are your liabilities?

      The next step is to look at all the liabilities, including non-financial ones. It is important to look at the biggest balance sheet liability first and to verify if it can be rescheduled.

    • Step three: take drastic action

      When you are on a sinking ship and have to exercise your options for survival, the only thing you can do is to take the bare minimum and get onto the life raft.

      In business the same principle applies - To keep a business afloat in such critical times, you have to do what's necessary to ensure survival. "The business owner will have to ensure that cash outflows are slowed down dramatically, if not stopped, and speed up the cash inflows. The call is for drastic action."

    • Step four: turn to specifics

      Rescuing a business presents various challenges. At Enco, we would start analysing and defining the root causes and match possible solutions with decisions that can be taken to yield the desired turnaround.

    • Marketing:
      • Is there a definite focus?
      • Is there a clearly defined target market?
      • Is the advertising effective?
    • What do the key customers say?
      • List and categorise the A, B and C customers.
      • What are the purchase patterns of these clients?
      • How can sales be accelerated?
    • Tight cash flow management

      It is imperative that the daily cash outflows be monitored and controlled very tightly.

    • Step five: dealing with the competition

      Business owners have to make sure they understand who their competitors are. You should also determine what their competitive edge is - if they have one. If they do not have one you need to determine what it might become.

      It is important to ensure your business situation does not reach the ears of the competition. Do everything to minimise the possibility of the opposition capitalising on your organisation's demise.

    • Step six: restructuring to survive

      Stay with your core business and with what you are good at.

      A business rescue plan incorporating all the key business functional areas should be drawn up. To this extend, it would be very important to determine what the business should carry as overheads in order to survive.

      Stop all unnecessary business activities that will cost you money where there are no returns for the business.

    • Step seven: dealing with the bankers

      Try to see the situation from the banker's point of view.

      When faced with this situation a banker would look at the following:

      • Who am I dealing with? What is the credibility of the people involved?
      • What is the capacity of owners to turn this around? Is it more of the same or have experts trusted by the banker been called in to turn the situation around?
      • What are the terms and conditions, should a banker want to make any concessions?
      • Do the business owners have any collateral to fund the rescue plan?
      • What contingency plans have been put in place that would make a banker feel at ease and comfortable?
    • Step eight: considering selling or merging

      The following is what you should consider when looking to sell or merge:

      • It is all about the value of the business. Is there any value left?
      • What about ensuring I get the right partner for a possible merger?
      • How do I keep this confidential in the marketplace?

      When all options and possibilities have been exhausted and nothing seems to work, it really is pointless trying to hold on to the dream. "Cut your losses and minimise your risk".

      It is important to remember that the most successful people in the business world today were not instant successes when they initially started. Their successes came about by taking the lessons learnt from the past and by starting again.