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Further
Reading ...
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The Chicken or the Egg? - Nan S Russell
Even before I checked my calendar on Monday morning, I knew the appointment would be there. Passed over for promotion again, Ralph wanted specifics on why I hadn't chosen him for the position. This was not a new conversation. I thought of Ralph as...
Home Office Tips (Part 1) - BB Lee
Home Office Tips by BB Lee(C)2003 Tip One: Welcome To Part One In A Series Of "Home Office Tip Articles." Most will find the following Home Office Tips very practical and effective if they take them into due consideration, and use these basic...
Check Yourself for Outstanding Customer Service - Ed Sykes
How many times have you heard something similar to this in a customer service situation? Customer: “Why don’t you just do it this way, and it will take care of the situation.” Customer Service Person: “I understand what you are saying, but we can...
Money Making Tips - Richard Low
I know you've seen the advertisements. They are everywhere that you look: newsgroups, email signatures, web site articles, press releases and even in your own inbox (in the form of spam). It can be especially overwhelming to a newbie (someone new to...
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10 Ways to Kick Start Your Cash Flow
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Written By:
June Campbell
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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 - continued below ...
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continued ...
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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| _Additional Resources ... |
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e-commerce The BOP approach - Arvind Kumar
E-commerce The BOP Approach by: Arvind Kumar This research work for this report is done by Mr. Arvind Kumar, founder, www.Nuttymarketer.com You may reach him at arvind@nuttymarketer.com . For centuries and most of the decades in the 20th century...
Top Ebay Selling Tips - Ebay Steve
Hey kids - EbaySteve here again! I just want to share with you guys'n'gals a few little tip-ettes and tricks that I personally have always found to be Steve-tasticly good for pulling in the greenbacks with the help of the mighty Ebay. Number one on...
WHY BAD THINGS HAPPEN TO GOOD BUSINESSES - Cathy Bass
You've seen it a thousand times. Maybe it's happened to you. An excellent idea carried out by someone totally committed to the idea's success and yet they fail. Six months later somebody who could care less (but likes to make money) steps up and...
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