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Maxing Out on the Minimum: Don’t Get Trapped Making Minimum Credit Card Payments
It’s an easy trap to fall into: you get that pre-approved credit card offer in the mail, most likely with an appealing introductory interest rate for the first six months. You feel like you deserve a little extra spending money, and the minimum...
No Money Down Loans
You want to buy a home but you do not have money for a down payment or for closing costs? Well, just forget it. At least that is what you have probably been told by people who think they know what they are talking about, but simply do not.
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What Are Internet Radio Hosts Looking For In Their Guests?
Copyright 2005 Black Butterfly Press
http://www.maxinethompson.com
As an Internet Radio Host of On The Same Page on www.voiceamerica.com, over the past three and a half years, I have interviewed such illustrious guests as Haki Madhubuti of...
What Does It Take To Succeed Online?
The one basic you need to succeed in an online business is simply the decision... to... do.... it.
Not to "try"....not to "see how it goes"....
Almost anyone can be successful online....yet the vast majority of those who start an online...
Work-from-home Office Policies
It has come to our attention that self-employed people have somehow escaped the burden of "office policies". No longer. Now even work-from-home hermits can revel in the burden of "office policies." (This is part three of a series that began...
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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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