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Earn $250,000 Annual Income In The Multi-Billion Dollar Self-Improvement Industry
Wealthy and ambitious people of the world often have attributed some "indescribable secret" as the key to their success. People who desire to attain success in their own lives have spent, and will continue to spend, millions of dollars to...
Managers Who Tap Into PR's Value
Business, non-profit and association managers get a ton of satisfaction when they do something really positive about the behaviors of those outside audiences that most affect their operation. Especially when they deliver external stakeholder...
Part 5 of 5 - How "Pipe Dreams" Can Become Realities!
Take a look at yourself - inside and out. Where do you live, what job do you have, how do you relate to your friends and family? What interests do you pursue, what adventures do you have?
What do you truly want from life? Do you want...
The Effects of Consumer Debt
Consumer Borrowing
Consumer borrowing in the UK has now crashed through the £1 trillion barrier. 80% of this is due to credit card borrowing, loans and mortgages. How are people managing to handle their debt and what effect is debt having on...
The Human Side of Ad Tracking: How to Use Emails to Connect With Your Customers and Find Out Why They Really Bought
Do you know why people buy from you? What part of your offer put them over the edge? Let's face it, you worked for a long time on your sales copy. You created bonuses, designed a guarantee, sweated over the benefits and how to communicate them....
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10 Ways to Kick Start Your Cash Flow
Is your cash flowing out faster than it's flowing in? This can happen for a number of reasons and can be a sign that your business is growing at a faster speed than you are ready to handle. Perhaps your best customer has given you a $100,000 order -- but you need cash right now to buy the supplies needed to produce the product.
Challenges like this one are commonplace occurrences with businesses of all sizes. Without adequate operating capital, your ability to grow your business is limited. When this happens, you need a strategy that will either infuse your business with some quick cash or reduce your operating expenses.
Try one of these:
1. Hold a Sale. You reduce inventory while brining in some quick cash. Offer a discount or other incentive to customers who pay now.
2. Ask for Payment in Advance for Recurring Services. If you are offering web-hosting services, for example, offer one month free to customers who pay up front for 12 months hosting.
3. Lease Your Equipment. Purchasing equipment ties up large sums of money. By leasing, your money is freed up to be used for other purposes. Often it is possible to lease a variety of equipment -- including office equipment, computers, software, telecommunications equipment, vehicles and more.
4. Joint Venture with Another Business. Find a business offering services or products that are compatible with your own and offer to promote each other's business. For example, if you are selling health food products, offer to cross-promote with a business selling fitness products. You'll both enjoy increased sales.
5. Obtain a Line of Credit. Bank credit is usually subject to standard ratios of debt to equity, working capital and profitability.
6. Factor Your Accounts
Receivable. Sometimes known as "invoice discounting," factoring is the selling of your invoices (accounts receivable) for cash, instead of waiting 30-60 days to be paid by your customers. Businesses of all sizes use this tool -- which is available through various specialized financial institutions. The funder buys your receivables at a discount -- leaving you with enhanced cash flow. Not all invoices will be appropriate for factoring. The customer must be a low credit risk, there must be evidence of the transactions (such as a signed delivery waybill) and the customer must verify that the debt is owed.
7. Equipment Sale Leasebacks. You can use equipment that you already own to secure financing. By transferring equipment assets onto an equipment lease, you can recover up to 100% of the equipment's value. The equipment remains in your own premises and you can continue to use it. You must own the equipment free and clear to go this route.
8. Ask Suppliers for Credit. Or, ask them to extend your credit. Another possibility is to discuss loan or consignment shipments from your suppliers.
9. Stop Producing Dated and Low Profit Items. Stick with your core product until sales improve.
10. Cut Back on Stock or Inventory. Ask suppliers to buy back stock at cost. You will have to allow them an administrative fee. Order supplies or inventory on an "as needed" basis. Alternatively, you could contact other small businesses that stock the same inventory as you do and discuss the possibility of bulk purchasing.
About the Author
June Campbell How to Write Business Plans, Business Proposals, JV Contracts,Human Resource Package, More! No-cost ebook "Beginners Guide to Ecommerce". Business Writing by Nightcats Multimedia Productions http://www.nightcats.com
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