What you will be doing:
This family-owned business was founded 21 years ago selling and providing maintenance services for a range of electric door products, including for supermarkets, retail, medical facilities, industrial facilities, apartment complexes, and residential gate and garage doors. The high-quality electric doors and motors are imported from France.
The company saw sales rise in 2020 as demand for touch-free doors increased, however, the company has struggled with cash flow as a result of lengthy payment terms with customers which are common in El Salvador. However, if the company were to reduce payment terms, they would lose business to competitors. Instead, the company has often had to offer payment discounts in order to receive the funds sooner and be able to pay their suppliers, salaries, taxes, etc. This is compounded by staffing retention challenges resulting in staff shortages to meet high demand.
The business owners, a mother-daughter team, need an expert in financial analysis who can review their financial situation and help them package the documents needed to seek bank financing. They are eager to learn how they can improve their cash flow issue and present themselves to financial institutions.
As a Bpeace volunteer Skillanthropist, you will use your financial analysis experience to:
- Review the company’s spending and cash flow and present best practices for addressing cash flow challenges.
- Conduct an analysis of the company’s profitability across products and services and help identify areas to review further for cost savings.
- Advise the business on the optimal amount of bank financing that will provide them with sufficient working capital.
- Help the leadership team prepare the proper documentation that will allow them to seek bank financing/working capital loans (taking into consideration bank requests for collateral).
The impact of your work will help the company increase sales and reduce costs so they can continue to create jobs that provide dignity as well as economic stability to their workers and community as a powerful alternative to violence.
Over the course of four months, you will:
- Provide approximately 4 days of remote consulting advice delivered via weekly Zoom calls of approximately 2 hours each (preferably the same day/time each week), based on a schedule agreed upon between you and the business.
- Validate needs with the company and draft a scope of work. Bpeace staff will facilitate the initial conversations between you and your “client.”
More jobs are critical in El Salvador right now to help stem the flow of irregular migration. Small and medium businesses account for 60% of the economy. Steady employment provides legitimate alternatives for Salvadorans who would otherwise migrate or pursue illegal activities and gangs. Your advice and expertise will help these businesses create jobs and build a stable future for their workers and communities.
Where you will be doing it:
Remotely with a Bpeace staffer facilitating each consulting session to ensure engagement and continuity.
You are qualified if you:
- Have extensive knowledge of banking and financing.
- Can apply your experience to helping analyze cash flow and prepare documentation for bank financing.
- Enjoy sharing your knowledge and best practices about what banks need and what they look for in a potential client.
- Can volunteer approximately 4 days between July and November to be a remote business advisor.
- Harbor passion for business and/or creating jobs in economically fragile El Salvador.
Starting July 2021
Discovery: 2-4 hours over the first 1-2 weeks
Project Work: 2-4 hours per week for approximately 10 weeks (32 hours total)
Follow-up: 1 hour a month for up to 4 months
Please note that this is a volunteer opportunity.