Today I was catching up with my business partner on how we are going to move forward. The last time we have been running as a proper business was back in 2021 which sounds kind of nuts considering we are in 2023 now. I closed the warehouse down in February 2021 and we managed our stock on a order and deliver direct from factory basis with no stock holdings available. Not great as you cannot top up clients as required and this does knock your bottom line as transport is not cheap. 1 pallet being delivered compared to 30 or 40 is nearly double the price.
Why we basically went into survival mode was firstly there was a shortage of raw material and those that were supplying were running the risk of playing bank for companies. Most of the bigger accounts changed from 30 days to 60 days and even then some didn't pay and have since gone under. We saw this and would rather not be put at risk by shutting our doors servicing a handful of cash accounts.
The carnage in the manufacturing packaging industry is clear to see as the competition has more than halved in just 2 years. The good news is our first order of the year from our supplier has been delivered in full without the normal 40% with 60% short delivered.
I can hardly believe this so I am not going to my list of clients just yet and will concentrate on cash clients for January and February first. If things go well I can pull in the others who have been waiting patiently for nearly 30 months. The idea of setting up somewhere in Europe is still at the top of the agenda ,but having a constant income flowing first makes more sense. These clients and any new clients could be serviced over the phone along with a flight back and forth every two months.
One of my old friends from the Army days is currently importing courier delivery pouches from the UK as a client demanded eco friendly recycled/biodegradable. We know where the market is heading with carbon emissions etc and this will become the normal and won't be so niche. These are not cheap as no one is manufacturing locally and can get my hands on the raw material locally which is cheaper than the normal plastic. Always people have the impression going green is more expensive and this is not necessarily true. His clients are paying 3 x more for a product that should be literally the same price or less.
Still positive news as now I am move forward and start replenishing the cost of having no real income for over 2 years. I just think we are fortunate to still have a business as so many are no longer around.
