Tag: Business
You may feel that you’re billing enough each month to be satisfied that your business is well and truly solvent. However, a project is not completed or a product sold until you have that customer’s money in your bank account.
Unpaid customer invoices are proving to be a huge headache, more now than ever, for UK SMEs. A staggering cashflow often means you are unable to pay your own debts as they fall due, incurring more fees. It’s a vicious circle.
There are ways, however, to maximise your cashflow and ensure that it runs as smoothly as possible, without impacting on your business processes:
1. Ensure you invoice the client as soon as the work is completed.
If necessary, particularly when working on a longer project or contract, bill intermittently or ask for a deposit up front.
2. All outstanding invoices need to be chased as soon as possible
Write to the customer approximately a week before the terms of the credit agreement are ending and telephone them the day before. This may seem aggressive but will convey to the customer that your processes and procedures are in place and you will chase any outstanding payment. If invoices are now classed as unpaid, a failure to communicate on your part will simply mean you will be waiting a considerable length of time until you finally recover your money.
3. Ensure that you don’t have excessive stock
A stock reduction programme will release funds and ensure that you’re making your cashflow work harder for you. Order additional stock only when you know it is definitely going to be required – don’t let your money gather dust in a warehouse.
4. Try negotiating credit limits and payment terms
On the other side of the coin, try liaising with your own suppliers to raise credit limits and extend payment terms. They are facing the same problems as you and if you are offering to pay their invoices, just requesting more flexible terms, it makes more sense for them to agree to your terms rather than spend time and money chasing your payment.
5. Speak to your bank
Your bank may agree to extend the term of your overdraft or business loan. However, maintain a good relationship with your bank manager or you may find facilities being withdrawn at short notice.
6. Factoring and invoice discounting
For a small fee, specialist factoring and invoice discounting companies not only offer to release up to 90% of the value of your customer invoices, often on the day you issue them, they may also agree to take on your credit control function, chasing customer payments and allowing you to get on with the running of your business. Customers often suddenly manage to find lost invoices and cheque signatories when contacted by a debt collector rather than a small business owner.
7. Sell off your least-used assets
You need to do your sums carefully on this one to ensure you’d obtain a profit by selling individual assets, but you can put them to best use, raising cash and even leasing them back if necessary.
Touch Financial is the UK’s leading independent online commercial finance broker. If you are having difficulties with an intermittent cashflow, have a turnover of at least £50,000 per annum and issue credit terms of between 30-90 days, give us a call on 0845 388 9725 or visit our website to instantly compare quotes from the UK’s leading lenders. Your call will be dealt with in the strictest confidence and our advice is impartial. Initial business finance consultations are free.
October 9, 2009
We have all been burdened by the Recession News. Every type of media touts the damage to the market and joblessness. You might have considered self employment, but want to know what business does well in a recession or better yet, what business does well in This Recession?
The writing is on the wall, all is lost; right? Of course not. The recession is kind of like a controlled forest fire. A controlled forest fire is used to clean out the old and make room for the new. The new comes back stronger and with more life. This is not the first time in our countries history we have taken a break for a change, nor will it be the last. We should be happy to find the changes in our economy because those that take advantage of the times, will come out of this era with a new attitude and a new look.
I spoke to a the new owner of a z pizza franchise last week and I asked him how it was going. He says they are having the best start of any franchisee in his business. He is doing well and is hiring the best employees he has ever seen. That doesn’t necessarily mean that z pizza is the choice for you, but the message is in his comments.
What businesses work in this recession? Here is the answer:
- The business you like
- The business you have capital for
- The business that offers the public what they want
- The business that the Owners have the best attitude and look for the positive
My personal favorite is the stay at home, work from home make your own hours business. These type of businesses are growing like wild fire. (Or a controlled burn). The Internet is here to stay and growing. I still remember a gentleman coming to me and asking me to join him in selling a new type of business machine. He explained to me that it sent letters through the telephone line. I explained to him that there was no way anyone would use that! I asked him what it was called, and he answered the facsimile machine.
Opportunity is here and now. You only need to take a few short steps to achieve success in business. I have a great online business to share with you, or if you prefer a traditional business give one a try.
September 20, 2009
Once you have obtained the entrepreneurial mindset, you want to ensure that you never lose it. After living with it for so long you always run the risk of taking it for granted. Never forget how important it is to maintain your success in the business world.
In order to secure the entrepreneurial mindset for the long-term, you need to occasionally re-examine your business. Pose a series of questions to yourself like, why did you get into your business? What did you hope to achieve in the first place? Are you still providing the services you hoped to offer when you initially started? What spurred your passion then and are you still passionate about your business today? Ask yourself these questions as a way of reminding yourself of your company’s chief purpose.
Even those who have achieved the entrepreneurial mindset can occasionally lose sight of their original goals. If you manage to stick to a strong business model however, over the course of time, your company will be viewed as the ultimate example of steady consistency and success.
You must try to remain positive as well in spite of whatever circumstances you may be experiencing. This cannot be stated enough times. All businesses suffer moments of great change or financial unrest. While you do not want to behave as though your problems are not happening, you must do everything in your power to prevent from entering a state of alarm. The only possible solution is to address these problems straight on. The alternative, to run and hide in sheer panic, can lead to the downfall of your business and the soiling of your reputation as a subscriber to the entrepreneurial mindset.
Situations like this also serve as a great opportunity to learn from your mistakes. A large percentage of business is trial and error so encountering the occasional blunder is not the end of the world. If nothing else it reminds you to be fearless and to try new innovations like marketing tools, sales pitches or advertising devices. Remember that the entrepreneurial mindset encourages us to test the boundaries of the business world.
George Saenz is a business coach and mentor based out of Canby OR, that assists serious entrepreneurs in building a profitable online business with multiple incomes streams. George and his team have assisted hundreds of people, from doctors and nurses to high-school drop-outs and single parents in creating successful online businesses.
August 21, 2009
Business Woman
Did you know that one in every eleven adult women owns a business?
Did you know that women entrepreneurs are starting new businesses at twice the rate of men?
Did you know that women entrepreneurs are generating nearly $3.6 trillion in revenues to the US economy?
These eye-opening statistics from the Washington DC-based Center for Women’s Business Research paint a clear picture of a rapidly growing trend.
I’ve heard it referred to before as a “revolution” and I think that’s right on the money! Are you part of this trend?
Women business owners are critically important to the American economy. America’s 9.1 million women-owned businesses employ 27.5 million people and contribute $3.6 trillion to the economy.
The world of business and entrepreneurship is no longer comprised of men in suits. The changing landscape of the world and the economy are opening more doors for women now than at any other time in history, and without question, women are charging through those doors in ever increasing numbers.
Women are taking control in the business world, and entrepreneurship through a business marketed on the Internet should be no exception! It doesn’t matter where you are in your life, or where you have been. Neither your education level nor your job experience has anything to do with what drives you or what you are capable of achieving.
There are amazing opportunities for women to start a business right from the comfort of their home and build it into something that can take care of their life, their family and their future retirement as well.
There are women taking the plunge into entrepreneurship each day. Although the concept of starting a business may seem daunting, there are many tools and resources available to guide you. Desire and the passion to flourish are the key building blocks to success.
A successful home-based business can go a long way towards eliminating the stress of making ends meet and lacking the luxury of free time.
Your business can be your outlet for self-expression. It can lead you towards contentment, confidence, and self-worth… things even more important than the almighty dollar.
Come on ladies! This article is a call to action. You can take advantage of the endless possibilities that entrepreneurship has to offer. The Internet needs women to lead the way. The opportunity is there and all you have to do is take the initiative to get involved.
Let’s take a look at what you can do to get yourself moving successfully down the path of starting and operating your own business:
Choose a business that has the potential to provide you with the financial rewards you require to live the lifestyle you desire.
Avoid a business that will ultimately turn into a job which you must work 80-90 hours per week in order for it to succeed. Your goal is to make money, but also be able to enjoy your life and have time with your family and friends.
Learn everything you can about the type people you will be marketing to. Make them feel comfortable about working with you; relate to their current situations.
Have a marketing plan in place. Don’t just start your business without planning. Get a good understanding of what is involved in your advertising and promotional efforts, and find professionals to help you where needed to make sure you get things done efficiently.
Don’t give up before you give your business a chance to prosper. Very few businesses come rushing out the gate successfully, but that does not mean that they will not succeed in time. Give your business a chance to grow. Success does not happen over night, and a new business needs time to establish itself.
Work from home to keep expenses low. If your business can be operated from home, then definitely take advantage of that luxury.
Be persistent and stay focused on the task at hand. Learn from your experiences and stay committed to what is working for you. Avoid repeating mistakes and you will save yourself valuable time and money.
Use technology as a tool for building your business. You can be on the cutting-edge by using telephones, computers, the Internet, and fax machines to keep your business running. More importantly, using technology can also allow you to operate your business from anywhere that you want to be, and that is the definition of true freedom.
Right here at this website, I am offering you information about a business that you can operate from the comfort of your own home that is truly changing lives, including my own. I have taken the initiative and have taken steps towards changing my future.
August 10, 2009
Radio interviews are a great way to reach listeners with your messages. But many guests miss their opportunity to connect because they fail to follow these 3 critical rules.
1. It’s all about energy!
Speaking on the radio (or almost anywhere else for that matter) is all about energy. Your energy will translate to the listening audience as enthusiasm, excitement, commitment and/or belief in your topic.
Energy does not mean you have to be yelling or shooting. On the contrary, radio is a very personal medium. It’s like having a conversation on the telephone. But it does mean an intensity in the voice that projects, “this matters.”
One way to achieve this when interviewing over the phone is to stand up and walk around while talking.
2. Word pictures give the picture.
Use word pictures when discussing your topic. Involve the listeners’ minds with details that allow them to create movie scenes of your examples in their heads.
The challenge is to keep your examples short. That means as part of your preparation, you need to think them out and refine them. Writing them out (or recording and transcribing them) enables you to look at each word and see which can be eliminated. Radio is characterized by a crisp flow of thought, not rambling.
3. Use the host’s first name.
A radio interview is a conversation between two friends. So occasionally use your “friend’s” first name. This warms up the interaction and projects you as the interviewer’s friend, which in turn makes you a friend of the listener.
August 9, 2009
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