• Mybaac26
• August 24, 2026August 24, 2026
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• MANUFACTURERS & DISTRIBUTORS

Manufacturing businesses often celebrate the same milestones — a major customer signs a contract, production increases, revenue reaches a new high. Everyone celebrates. Then something unexpected happens. Cash becomes tight. Suppliers need payment. Payroll is approaching. Inventory has to be replenished. The business looks successful from the outside. Inside, cash flow is under pressure. How is that possible? Because revenue isn’t cash. And profit doesn’t automatically pay the bills. Manufacturing businesses invest cash long before they receive it back — raw materials are purchased, production begins, inventory is held, goods are transported, customers receive the product, invoices are issued. Then the business waits — thirty days, sixty days, sometimes ninety days. Every day that cash is tied up increases pressure on the business. This is the cash conversion cycle. It’s one of the most important numbers in manufacturing, yet many leadership teams barely discuss it. Instead, meetings focus on revenue, production targets, sales forecasts — important topics, but not enough. The strongest manufacturers monitor how quickly cash moves through the business. They ask: how many days does inventory sit before it’s sold, how long do customers take to pay, are suppliers being paid before customers settle their invoices, which products generate the strongest margins, which customers consume the most working capital? These aren’t accounting questions. They’re leadership questions, because every additional day cash is trapped inside the business limits your ability to grow. Working capital is often the invisible barrier preventing expansion. Many businesses assume they need more finance. Sometimes they simply need better financial visibility — reducing inventory by a few days, collecting debtors more quickly, negotiating supplier terms, improving production scheduling. Individually, these changes seem small. Together, they can release millions in working capital. That’s why great manufacturers don’t measure success by production alone. They measure how efficiently cash moves through the business. Before asking how to increase sales next quarter, ask something more valuable: how quickly does every Rand we invest return to our bank account? That answer often tells you more about the health of your business than your revenue ever will. Reflection Questions BAAC Insight: “Revenue keeps your factory busy. Cash flow keeps your factory open.”

• Mybaac26
• August 9, 2026August 9, 2026
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• MANUFACTURERS & DISTRIBUTORS

When production starts falling behind, the first instinct is usually predictable: “we need more machines,” “we need a larger warehouse,” “we need more staff.” Sometimes that’s true. But often the real problem isn’t capacity. It’s process. Manufacturers invest millions expanding production, only to discover six months later that profits barely changed — because they expanded the same inefficient system. If materials spend two days waiting before production begins, buying another machine won’t fix it. If production schedules constantly change because sales forecasts are inaccurate, a larger factory won’t solve that either. If quality issues are only discovered at the end of production, more output simply creates more defective products. The problem isn’t production. It’s the system behind production. The best manufacturers think differently. Before investing in capacity, they ask where does work stop, where are we waiting, where are errors occurring, where are we creating unnecessary movement, which process slows everything else down — because every production line has one constraint, and improving that constraint often creates more capacity than buying another machine. This is where many businesses confuse activity with productivity. A busy factory isn’t necessarily an efficient factory. Machines can run all day while profits quietly disappear. Staff can work overtime while orders are still delivered late. Production can increase while cash flow deteriorates because inventory continues to grow. Operational success isn’t measured by how much you produce. It’s measured by how efficiently you convert materials into profitable deliveries. The strongest manufacturers obsess over systems — they standardise work, measure cycle times, track quality at every stage, review downtime, monitor throughput, and improve one process before investing in the next expansion, because they know every inefficiency has a financial cost. It might appear as wasted material, extra labour, higher maintenance, customer complaints, inventory carrying costs, or delayed cash flow — but it always appears somewhere. Before expanding your factory, expand your thinking. Ask yourself: if I doubled production tomorrow, would my current processes handle it? If the answer is no, your next investment probably isn’t another machine. It’s a better system. Businesses don’t become more profitable by producing more. They become more profitable by producing better. Reflection Questions BAAC Insight: “Expanding capacity without improving processes simply scales inefficiency.”

• Mybaac26
• August 2, 2026August 2, 2026
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• MANUFACTURERS & DISTRIBUTORS

Many manufacturing businesses believe growth comes from producing more — more products, more custom orders, more customers, more production runs, more inventory. At first this approach appears logical: if customers are asking for something, why not offer it? The problem is that every new product introduces complexity — another production schedule, another inventory line, another purchasing requirement, another quality control process, another forecasting challenge. Over time, complexity quietly becomes one of the largest costs inside the business. Production planning becomes more difficult, inventory grows, warehouse space becomes constrained, purchasing loses negotiating power because orders are spread across more suppliers, machine changeovers increase, quality becomes harder to maintain, and cash becomes trapped in slow-moving inventory. Yet revenue may continue growing, creating the illusion that everything is improving. The most profitable manufacturers often do something different. They simplify. Instead of asking “what else can we produce?” they ask “what should we produce exceptionally well?” This shift changes everything — they identify their highest-margin products, understand which production lines operate most efficiently, recognise which customers create consistent demand, and remove products that consume resources without generating meaningful returns. The result is not a smaller business. It’s a stronger one, with higher production efficiency, lower inventory costs, better purchasing power, improved quality, faster delivery times and stronger profit margins. The same principle applies to distribution. Not every product deserves shelf space. Not every customer deserves the same attention. Not every sales opportunity creates value. Growth comes from concentrating resources where they generate the greatest return. The strongest manufacturers don’t become market leaders because they make everything — they become market leaders because they become exceptionally good at producing the things that matter most. This week, challenge your leadership team to identify one product, one process or one customer segment that adds complexity without adding meaningful value. Removing it may create more growth than adding another opportunity. Reflection Questions BAAC Insight: “Complexity increases costs. Focus increases capability.”

• Mybaac26
• July 22, 2026July 22, 2026
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• MANUFACTURERS & DISTRIBUTORS

LinkedIn Thought Leadership A manufacturing business wins a major contract. Everyone celebrates. It looks like success. More orders. More production. More revenue. But six months later, the business owner is asking a different question: “Why do we have more work but less cash?” This is one of the biggest growth traps in manufacturing. Growth requires investment before it creates returns. Before the customer pays, the business may already have funded: The company can be profitable on paper and still feel financial pressure. Why? Because profit and cash move differently. Successful manufacturers understand that growth is not only about increasing production. It is about managing the entire cycle. Questions that matter: How quickly does inventory move? Slow-moving inventory ties up cash. How long does production take? Longer cycles delay returns. How quickly do customers pay? Sales are only valuable when cash arrives. Are margins improving or shrinking? More volume does not always mean more value. A larger order book does not automatically create a stronger business. The strongest manufacturers understand that every growth decision has a financial consequence. They do not only ask: “Can we produce more?” They ask: “Can we grow without damaging the business?” BAAC Insight: “Growth consumes cash before it creates cash.”

• Mybaac26
• May 20, 2026June 10, 2026
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• MANUFACTURERS & DISTRIBUTORS

By Mike Anderson (NSBC Founder & CEO) There’s a narrative I hear all the time in the SME space, that funding is scarce. That there’s no money.That lenders aren’t backing small businesses.That the system is stacked against entrepreneurs. I understand why people feel this way. But after more than three decades working alongside entrepreneurs, funders, and policymakers, I’ve seen a very different reality: Funding is not the problem. Readiness is. The great misalignment Every day, thousands of small businesses are actively looking for funding. At the same time, billions of rands sit within the financial system – allocated, available, and ready to be deployed. And yet, deals are not happening at the level they should be. Why? Because what SMEs present and what funders require are often two very different things. Funders are not looking for risk – they are trying to reduce it.They are not looking for hope – they are looking for evidence.They are not backing potential alone – they are backing structured, credible opportunities. And in my experience, this is where most businesses fall short. The cost of being “almost ready” I’ve seen many businesses come incredibly close to securing funding, only to fall short at the final hurdle. In funding, almost ready is the same as not ready at all. These may seem like small gaps. They are not. They are deal-breakers. And every rejection carries a cost: This is not just frustrating, it’s economically damaging, both for the business and for the broader economy. From funding-seeking to funding-ready One of the most important mindset shifts I encourage is this: Stop chasing funding. Start becoming funding-ready. The businesses that consistently get funded operate differently. They know their numbers.They understand what funders are looking for.They prepare before they apply.They remove uncertainty from the decision-making process. And when that happens, something interesting occurs. Funding doesn’t just become easier. It becomes far more likely. The infrastructure gap South Africa doesn’t have a funding shortage. What we have is a readiness gap. We need to move beyond conversations about funding, and start building the infrastructure that supports it properly. That means: This is not about another application portal. It’s about creating a national funding readiness engine – one that turns demand into real, fundable opportunities. Why this moment matters Right now, small businesses are under real pressure. Costs are rising. Markets are shifting. Competition is intensifying. But I’ve also seen something else. The businesses that position themselves correctly – those that focus on visibility, credibility, and readiness, are not just surviving. They are moving ahead. They are accessing capital faster.They are scaling with confidence.They are creating jobs. And they are doing it consistently. Now is the moment to become funding-ready If there’s one thing I would say to every entrepreneur reading this, it’s this: Don’t wait until you need funding to start preparing for it. Build your business as if a funder is already reviewing it.Operate as if the opportunity could arrive tomorrow.Position yourself so that when it does – you are ready. Because in the end, funding doesn’t flow to those who need it most. It flows to those who are ready for it. “Funding doesn’t follow need. It follows readiness.” This is the shift If we can shift the mindset from funding scarcity to funding readiness – we unlock something far more powerful than capital. We unlock momentum. And that is how we build not just stronger businesses, but a stronger South Africa. That thinking is exactly what sits behind Access to Finance – an initiative we are launching to help SMEs become funding-ready and connect with the right funding partners. If you’re serious about growth, it makes sense to position yourself early. Register to be notified when Access to Finance launches. Funding. Fast. Simple.

• Mybaac26
• May 8, 2026May 8, 2026
• 0 Comments
• MANUFACTURERS & DISTRIBUTORS

Where Your Cash Is Really Getting Stuck In manufacturing and distribution, cash flow pressure is common—even in profitable businesses. The reason is simple:Cash gets tied up in operations. Typically, in three places: On paper, the business looks healthy.In reality, liquidity is tight. We often see businesses with strong sales struggling to fund growth—not because they’re unprofitable, but because cash is locked inside the system. Once you start analysing working capital properly, patterns emerge: Unlocking even a small portion of that cash can make a significant difference: Because cash flow isn’t just about profit—it’s about timing and control. If you want to identify where cash may be stuck in your business, we can help you uncover it. 👉 Identify where your cash is stuck with our Working Capital Audit

• Mybaac26
• May 8, 2026May 8, 2026
• 0 Comments
• MANUFACTURERS & DISTRIBUTORS

Why Profit Doesn’t Always Mean Strong Cash Flow It’s one of the most common frustrations: The business is profitable—but cash is tight. This usually comes down to timing: Profit is measured over time.Cash flow is about movement. We often see businesses focusing on profitability—while overlooking cash flow structure. When both are aligned: Because a profitable business without cash flow control can still struggle. 👉 Analyse your inventory impact with our Working Capital Audit

• Mybaac26
• May 8, 2026
• 0 Comments
• MANUFACTURERS & DISTRIBUTORS

The Hidden Cost of Excess Inventory Inventory is necessary—but too much of it comes at a cost. Excess inventory: We often see businesses holding more stock than needed “just in case”. But that safety comes at a price. When inventory is managed properly: It’s not about having less inventory—it’s about having the right inventory. Because every unit sitting on a shelf is cash that could be used elsewhere. If you want to understand how inventory is impacting your cash flow, we can help you analyse it. 👉 Identify where your cash is stuck with our Working Capital Audit