{"id":23757,"date":"2016-05-05T11:02:23","date_gmt":"2016-05-05T09:02:23","guid":{"rendered":"http:\/\/www.times.mw\/?p=23757"},"modified":"2016-05-05T11:02:23","modified_gmt":"2016-05-05T09:02:23","slug":"overtrading-threatens-survival-of-businesses","status":"publish","type":"post","link":"https:\/\/archive.times.mw\/index.php\/2016\/05\/05\/overtrading-threatens-survival-of-businesses\/","title":{"rendered":"Overtrading threatens survival of businesses"},"content":{"rendered":"<p>A consulting firm has disclosed that business overtrading is the reason why some influential business entities in Malawi collapsed in the past.<\/p>\n<p>Head of Research and Consulting at Fletcher &amp; Evance, Handsome M\u2019bwana, has said that the tendency by companies with a dominant market position to take up a big share of the supply chain is killing business growth in Malawi.<\/p>\n<p>\u201cOvertrading happens when the current assets or working capital are insufficient to bridge the gap between funding new work and getting paid for invoices raised within a company. And this misconception has led most organisations to expand into new product lines or services when they do not have the necessary resources to manage the expansion,\u201d he said.<\/p>\n<p>M\u2019bwana added that overtrading often occurs when companies expand their own operations too quickly and aggressively.<\/p>\n<p>\u201cIt also means taking too much work, and providing a line of services which your company currently cannot handle due to the current capacity and resources available within the company,\u201d he said.<\/p>\n<p>But Mbwana observed that most business executives do not admit the fact that their company is overtrading which he said just serves to aggravate the problem.<\/p>\n<p>\u201cInstead, they will provide the defences from academic schools of thought that back their standard. This is a recipe for successful failure,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A consulting firm has disclosed that business overtrading is the reason why some influential business entities in Malawi collapsed in the past. Head of Research and Consulting at Fletcher &amp; Evance, Handsome M\u2019bwana, has said that the tendency by companies with a dominant market position to take up a big share of the supply chain [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":23761,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-23757","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/posts\/23757","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/comments?post=23757"}],"version-history":[{"count":1,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/posts\/23757\/revisions"}],"predecessor-version":[{"id":23762,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/posts\/23757\/revisions\/23762"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/media\/23761"}],"wp:attachment":[{"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/media?parent=23757"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/categories?post=23757"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/tags?post=23757"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}