What factors affect your cash flow?

Cash flow is the measure of cash inflow and outflow from your business. Positive cash flow means that you have more money coming into the business and negative cash flow means you have more money leaving. There are several things that can affect cash flow in the business world. This article will discuss what factors affect your cash flow and how to improve your cash flow.

Cash flow is the measure of cash inflow and outflow from your business. Positive cash flow means that you have more money coming into the business and negative cash flow means you have more money leaving. There are several things that can affect cash flow in the business world. This article will discuss what factors affect your cash flow and how to improve your cash flow.

How to assess the effects of sales tax on cash flow

Everyone in the business world knows that managing cash flow can be an exhausting task. It's also important to understand that there are many factors that can influence cash flow today, sales tax being one of them. But how do we assess the effects of sales tax on cash flow? Managing your cash flow effectively and forecasting are your bets bet for planning for things such as sales tax effects on your cash flow.

Everyone in the business world knows that managing cash flow can be an exhausting task. It's also important to understand that there are many factors that can influence cash flow today, sales tax being one of them. But how do we assess the effects of sales tax on cash flow? Managing your cash flow effectively and forecasting are your bets bet for planning for things such as sales tax effects on your cash flow.

Making sure you have good cash flow

Cash flow is the crucial to your business. Cash flow is the oxygen of your business. It allows you to rest easy, and the lack of it can kill your business. The goal of good cash flow management is to have enough cash on hand when you need it. Cash flow allows you to make decisions without the fear. Cash flow helps you build good credit. Making sure you have good cash flow means your bills are paid on time, you have easy payroll, and overall better sleep.

Having good cash flow techniques ensures that your company always has enough cash to meet its financial obligations and demands. Having enough cash will help you get whatever funds are required at the right time, and in the best possible way. If you are short cash flow then this could cause a loss in business and even financial trouble and bankruptcy. Don't let that happen to you! Here are some ways to make sure you have good cash flow for your business.

Cash flow is the crucial to your business. Cash flow is the oxygen of your business. It allows you to rest easy, and the lack of it can kill your business. The goal of good cash flow management is to have enough cash on hand when you need it. Cash flow allows you to make decisions without the fear. Cash flow helps you build good credit. Making sure you have good cash flow means your bills are paid on time, you have easy payroll, and overall better sleep.

Having good cash flow techniques ensures that your company always has enough cash to meet its financial obligations and demands. Having enough cash will help you get whatever funds are required at the right time, and in the best possible way. If you are short cash flow then this could cause a loss in business and even financial trouble and bankruptcy. Don't let that happen to you! Here are some ways to make sure you have good cash flow for your business.

Why great cash flow leads to a successful business

Cash flow is the key to having a successful business. If you have poor cash flow management, you are probably not going to last long in the business world. Cash flow is the center of every business. It directly impacts every part of your company from accounts receivables to sales to your office manager.

Cash flow is essential for a growing business since it is part of your budget. If you are overspending before receiving payment from your customers, you are looking at bankruptcy or closure of your business. Many companies's make the mistake that purchase orders are part of the sales for that month. While they are counted as a sale, the actual money usually doesn't come in for 30 to 60 days. This causes many companies to overspend because their purchase orders aren't being paid in a timely matter and they think the money is already there.

Cash flow is the key to having a successful business. If you have poor cash flow management, you are probably not going to last long in the business world. Cash flow is the center of every business. It directly impacts every part of your company from accounts receivables to sales to your office manager.

Cash flow is essential for a growing business since it is part of your budget. If you are overspending before receiving payment from your customers, you are looking at bankruptcy or closure of your business. Many companies's make the mistake that purchase orders are part of the sales for that month. While they are counted as a sale, the actual money usually doesn't come in for 30 to 60 days. This causes many companies to overspend because their purchase orders aren't being paid in a timely matter and they think the money is already there.

How to increase cash flow quickly

If you are like any other business, marinating a positive cash flow is essential to operate your business. The best way to maintain a positive cash flow is staying on top of your business finances. Your account receivables department is the best part of your company that can increase your cash flow quickly. Having a quick cash flow is easy to obtain with proper invoicing procedures and good people in your accounts receivable department as well as good people in your sales department to let your customers know up front how to pay their invoices quickly.

Having poor financial management is one of the biggest causes for a business to fail. It is common for many small firms to go out of business because of poor cash flow. For a smaller company, cash flow is their lifeblood. Relying on your accounts receivable department to follow up with the invoices and paying all major expenses and debt obligations will help control the business finances. Good cash flow will assure the company that you have enough cash on hand when you need it.

If you are like any other business, marinating a positive cash flow is essential to operate your business. The best way to maintain a positive cash flow is staying on top of your business finances. Your account receivables department is the best part of your company that can increase your cash flow quickly. Having a quick cash flow is easy to obtain with proper invoicing procedures and good people in your accounts receivable department as well as good people in your sales department to let your customers know up front how to pay their invoices quickly.

Having poor financial management is one of the biggest causes for a business to fail. It is common for many small firms to go out of business because of poor cash flow. For a smaller company, cash flow is their lifeblood. Relying on your accounts receivable department to follow up with the invoices and paying all major expenses and debt obligations will help control the business finances. Good cash flow will assure the company that you have enough cash on hand when you need it.

What you can do to take advantage of your business assets to improve your cash flow

There are a number of different ways that you can take advantage of your business assets in order to improve your cash flow. Your business assets, whether they are liquid or not, can be manipulated in a way that will enable you to improve the cash flow to your company. Increased cash flow is beneficial for a number of different reasons, including an ability to free up assets in a more liquid form so that they can be accessed more quickly than assets that are in a non-liquid form, such as real estate or some other sort of asset.

One way that you can take advantage of your business assets to improve your cash flow is by using something called accounts receivable funding. Accounts receivable funding is also referred to as factoring. Accounts receivable funding is something that is the transactions of accounts receivable, also called invoices, between a third party called a factor and a business. Whenever the business bills clients, whether other businesses or the government, the business generates invoices. The factor is a source of funding that specializes in accounts receivable funding. The factor, or third party funding source, then purchases the receivables of the business at a discounted rate. Accounts receivable funding is one of the fastest and least complicated ways, along with one of the least expensive ways, for you to improve your business cash flow and also to raise working capital for your business.

There are a number of different ways that you can take advantage of your business assets in order to improve your cash flow. Your business assets, whether they are liquid or not, can be manipulated in a way that will enable you to improve the cash flow to your company. Increased cash flow is beneficial for a number of different reasons, including an ability to free up assets in a more liquid form so that they can be accessed more quickly than assets that are in a non-liquid form, such as real estate or some other sort of asset.

One way that you can take advantage of your business assets to improve your cash flow is by using something called accounts receivable funding. Accounts receivable funding is also referred to as factoring. Accounts receivable funding is something that is the transactions of accounts receivable, also called invoices, between a third party called a factor and a business. Whenever the business bills clients, whether other businesses or the government, the business generates invoices. The factor is a source of funding that specializes in accounts receivable funding. The factor, or third party funding source, then purchases the receivables of the business at a discounted rate. Accounts receivable funding is one of the fastest and least complicated ways, along with one of the least expensive ways, for you to improve your business cash flow and also to raise working capital for your business.

Using factoring as a means of improving cash flow

Factoring is a common process in the small business world. Factoring is the process of selling your accounts receivable invoices to a third party who then is in charge of collecting on the invoice. The agents in charge of collecting are called factors. Factoring for small business is a great way to provide financial growth. Since cash flow is so essential in business, factoring is the best method to expand operations.

Factoring allows a company to sell invoices at a discount and be paid a cash advance before the invoice comes due. Since many businesses monthly sales do not produce cash on time, factoring is a great method to pay wages and creditors.

One of the great things about factoring is that it does not tie up assets outside the business and does not involve repayment of debt at some future point in time.

Factoring is a common process in the small business world. Factoring is the process of selling your accounts receivable invoices to a third party who then is in charge of collecting on the invoice. The agents in charge of collecting are called factors. Factoring for small business is a great way to provide financial growth. Since cash flow is so essential in business, factoring is the best method to expand operations.

Factoring allows a company to sell invoices at a discount and be paid a cash advance before the invoice comes due. Since many businesses monthly sales do not produce cash on time, factoring is a great method to pay wages and creditors.

One of the great things about factoring is that it does not tie up assets outside the business and does not involve repayment of debt at some future point in time.

Tips for having better cash flow

The goal of any business is to earn a profit. This goal can be accomplished in many different ways. However, there are some key business principles that must be upheld in order for a business to survive. One of those is having a sufficient cash flow. For some businesses, maintaining a sufficient cash flow can be tricky. Here are a few tips for keeping cash available when it is needed most.

Lease Instead of Buy

Some companies believe that they must own their office space in order to be successful. For some this may be true, however if a business is having a hard time maintaining a sufficient cash flow, leasing can help. By leasing, a business frees itself from annual taxes, and it can often pay less monthly. This will allow for more of the money coming in to be allocated toward paying employees, stocking shelves, or reserving for emergencies.

The goal of any business is to earn a profit. This goal can be accomplished in many different ways. However, there are some key business principles that must be upheld in order for a business to survive. One of those is having a sufficient cash flow. For some businesses, maintaining a sufficient cash flow can be tricky. Here are a few tips for keeping cash available when it is needed most.

Lease Instead of Buy

Some companies believe that they must own their office space in order to be successful. For some this may be true, however if a business is having a hard time maintaining a sufficient cash flow, leasing can help. By leasing, a business frees itself from annual taxes, and it can often pay less monthly. This will allow for more of the money coming in to be allocated toward paying employees, stocking shelves, or reserving for emergencies.

How to attract investors

One thing that every company dreams about doing is expanding or growing, most businesses don't want to remain where they are at even if it means just hiring an employee or two. Most owners of businesses have dreams about making more money and like most of you know in order to make money you are going to need to spend money. This is actually where investors come in. There are plenty of people who want to invest in businesses, but the problem is trying to figure out what you can do to get them to invest in your business.

Difficulty rating: Moderate to difficult

One thing that every company dreams about doing is expanding or growing, most businesses don't want to remain where they are at even if it means just hiring an employee or two. Most owners of businesses have dreams about making more money and like most of you know in order to make money you are going to need to spend money. This is actually where investors come in. There are plenty of people who want to invest in businesses, but the problem is trying to figure out what you can do to get them to invest in your business.

Difficulty rating: Moderate to difficult

Five tips for better monitoring and controlling the use of petty cash

In any business there are times that you will need to use cash for purchases or events. This is fine, in and of itself. However, cash can be very difficult to monitor and control in a business. It's hard to know where every cent of change ends up. You have to be sure to get a receipt not only for when you receive the cash, but after you've spent the cash as well. So let's discuss five tips for better monitoring and controlling the use of petty cash in your business.

Having a petty cash fund at work, or simply allowing your employees to occasionally use cash (that you give them at your discretion) can be very difficult to control. This difficulty can be amplified especially when there are several people who are allowed access to your petty cash fund. Many companies keep a small fund of cash on hand for supplies and other miscellaneous financial needs. However, you should always keep this cash in a secure location, locked in a safe. Only people who are allowed access to the cash without consulting you should be allowed to carry a key to the safe with them. Otherwise you should be the one to give out access to the cash funds. Here are five tips to better cash management:

In any business there are times that you will need to use cash for purchases or events. This is fine, in and of itself. However, cash can be very difficult to monitor and control in a business. It's hard to know where every cent of change ends up. You have to be sure to get a receipt not only for when you receive the cash, but after you've spent the cash as well. So let's discuss five tips for better monitoring and controlling the use of petty cash in your business.

Having a petty cash fund at work, or simply allowing your employees to occasionally use cash (that you give them at your discretion) can be very difficult to control. This difficulty can be amplified especially when there are several people who are allowed access to your petty cash fund. Many companies keep a small fund of cash on hand for supplies and other miscellaneous financial needs. However, you should always keep this cash in a secure location, locked in a safe. Only people who are allowed access to the cash without consulting you should be allowed to carry a key to the safe with them. Otherwise you should be the one to give out access to the cash funds. Here are five tips to better cash management:

How to produce a cash flow forecast

How to produce a cash flow forecast? In order to be able to produce the cash flow forecast, there are several financial factors that need to be analyzed. In order to have the projected figures for the next twelve months, it is important to look at what has already happened in the corporations past.

The way a cash flow is used for the overall survival of a corporation, and the overall achievement for profit and success, is by using an accurate cash flow forecast. Then, how do you produce a good cash flow forecast? That is a good question.

How to produce a cash flow forecast? In order to be able to produce the cash flow forecast, there are several financial factors that need to be analyzed. In order to have the projected figures for the next twelve months, it is important to look at what has already happened in the corporations past.

The way a cash flow is used for the overall survival of a corporation, and the overall achievement for profit and success, is by using an accurate cash flow forecast. Then, how do you produce a good cash flow forecast? That is a good question.

How to manage cash flow problems

Introduction

In many small businesses, cash flow can be quite a problem. The problem is not just as simple as more cash flowing out than cash flowing in. If that is happening consistently, you have other, bigger problems that you need to manage. The type of cash flow problem that this article will help you manage is a discrepancy in timing. We assume that overall, you are making money, however, if the cash coming in is not available when you need cash to go out, you have a cash flow problem that is manageable.

Instructions

Difficulty: medium

Introduction

In many small businesses, cash flow can be quite a problem. The problem is not just as simple as more cash flowing out than cash flowing in. If that is happening consistently, you have other, bigger problems that you need to manage. The type of cash flow problem that this article will help you manage is a discrepancy in timing. We assume that overall, you are making money, however, if the cash coming in is not available when you need cash to go out, you have a cash flow problem that is manageable.

Instructions

Difficulty: medium

How to manage cash flow problems

Introduction

In many small businesses, cash flow can be quite a problem. The problem is not just as simple as more cash flowing out than cash flowing in. If that is happening consistently, you have other, bigger problems that you need to manage. The type of cash flow problem that this article will help you manage is a discrepancy in timing. We assume that overall, you are making money, however, if the cash coming in is not available when you need cash to go out, you have a cash flow problem that is manageable.

Introduction

In many small businesses, cash flow can be quite a problem. The problem is not just as simple as more cash flowing out than cash flowing in. If that is happening consistently, you have other, bigger problems that you need to manage. The type of cash flow problem that this article will help you manage is a discrepancy in timing. We assume that overall, you are making money, however, if the cash coming in is not available when you need cash to go out, you have a cash flow problem that is manageable.

How to monitor cash flow in your business

Do you want to manage the cash flow in your business better? It is really important to monitor the cash flow so that you can close any "cash flow gap" that may be created in your business. A cash flow gap essentially happens when the cash outflows and the cash inflows don't match up with each other, which eventually leaves a business to be short on their cash. The best to way close this cash flow gap is to monitor and watch the cash flow in your business. This way, you will be aware of any potential problems with your cash flow, and you will be able to stop any shortages of cash from happening. Here are some ways to monitor cash flow in your business:

 Monthly evaluation: One of the easiest and most common ways to monitor cash flow in your business is through a monthly evaluation of the total unpaid purchases. You should compare this number of the unpaid purchases to the total sales that are due at the end of the month. For example, If you have a higher amount of unpaid purchases than the total sales that are due, you will need to spend more cash than your receive in the upcoming month. Needing to spend more cash indicates that you will probably have a cash flow problem.

Do you want to manage the cash flow in your business better? It is really important to monitor the cash flow so that you can close any "cash flow gap" that may be created in your business. A cash flow gap essentially happens when the cash outflows and the cash inflows don't match up with each other, which eventually leaves a business to be short on their cash. The best to way close this cash flow gap is to monitor and watch the cash flow in your business. This way, you will be aware of any potential problems with your cash flow, and you will be able to stop any shortages of cash from happening. Here are some ways to monitor cash flow in your business:

 Monthly evaluation: One of the easiest and most common ways to monitor cash flow in your business is through a monthly evaluation of the total unpaid purchases. You should compare this number of the unpaid purchases to the total sales that are due at the end of the month. For example, If you have a higher amount of unpaid purchases than the total sales that are due, you will need to spend more cash than your receive in the upcoming month. Needing to spend more cash indicates that you will probably have a cash flow problem.

How to double your residual cash flow:

When running a business your financial strategies that you use are very important. The more financial strategies you implement the better off your business will be. One thing that you definitely want to try to do is to double your residual cash flow. Residual cash flow is great because you can always count on it. Your other cash flow is hard to predict because it all relies on how many products you can sell or how many services you can provide. Residual income on the other hand is much more reliable.

Residual cash flow is cash flow that reoccurs month by month. It is very predictable and very constant. While the first type of cash flow depends on how many products you sell or services you provide, residual cash flow has more to do with things such as magazine subscriptions. Residual cash flow has to do with monthly payments that are being made to you that will not stop for a certain period of time. While with the other you have to sell many products, with residual cash flow you only have to sell one subscription and then you receive payments continually for a certain period of time. Residual cash flow is better because it is reliable and because it gives a more predictable idea of how much money your company will make in a given month.

When running a business your financial strategies that you use are very important. The more financial strategies you implement the better off your business will be. One thing that you definitely want to try to do is to double your residual cash flow. Residual cash flow is great because you can always count on it. Your other cash flow is hard to predict because it all relies on how many products you can sell or how many services you can provide. Residual income on the other hand is much more reliable.

Residual cash flow is cash flow that reoccurs month by month. It is very predictable and very constant. While the first type of cash flow depends on how many products you sell or services you provide, residual cash flow has more to do with things such as magazine subscriptions. Residual cash flow has to do with monthly payments that are being made to you that will not stop for a certain period of time. While with the other you have to sell many products, with residual cash flow you only have to sell one subscription and then you receive payments continually for a certain period of time. Residual cash flow is better because it is reliable and because it gives a more predictable idea of how much money your company will make in a given month.

How to Get a Cash Flow Loan

In some cases, the day-to-day operations of a business exceed the amount of money coming in. Whether it is because customers are not paying their bills on time or because your business is just starting out and isn't bringing in enough money to cover expenses, a negative cash flow can mean the end of your business soon.

If your business is experiencing problems with cash flow, it might make sense for you to obtain a cash flow loan. This sort of loan is used for the purposes of day-to-day operations of your business, such as payroll, purchasing supplies, or paying bills. Keep in mind however that cash flow loans are only a temporary solution for the problem; your company will have to find a way to bring in more money or reduce expenses if you want it to stay afloat.

In some cases, the day-to-day operations of a business exceed the amount of money coming in. Whether it is because customers are not paying their bills on time or because your business is just starting out and isn't bringing in enough money to cover expenses, a negative cash flow can mean the end of your business soon.

If your business is experiencing problems with cash flow, it might make sense for you to obtain a cash flow loan. This sort of loan is used for the purposes of day-to-day operations of your business, such as payroll, purchasing supplies, or paying bills. Keep in mind however that cash flow loans are only a temporary solution for the problem; your company will have to find a way to bring in more money or reduce expenses if you want it to stay afloat.

How to calculate your breakeven point?

Knowing your breakeven point is crucial to any business venture it changes the risks involved with starting a company and can help you make good decisions with a company that is already running. The breakeven point is a crucial piece of information and calculating it as accurately as possible changes the future from a guess to a plan.

First let's define the breakeven point- breakeven point is when you are back to 0 in your business. Most of us know a products profit margin or the amount over the cost of the product that we make for each item that sells. Let's take a hamburger restaurant as our example. We are great shoppers and find our hamburger for $2 a pound so our ¼ pd hamburger costs .50 plus the bun and toppings lets say we are up to $1 per burger. We sell the burger for $2 and that makes our profit margin per unit $1. But we have to pay Sally and Susie to work at the hamburger restaurant and we have to pay for lights and rent on the building and energy to heat the burgers, these are all our overhead costs. Let's say all those things come to $1000 a month more. That means for our business to get back to 0. We aren't losing any money or making any money we have to sell 1000 burgers a month. That is our breakeven point.

Knowing your breakeven point is crucial to any business venture it changes the risks involved with starting a company and can help you make good decisions with a company that is already running. The breakeven point is a crucial piece of information and calculating it as accurately as possible changes the future from a guess to a plan.

First let's define the breakeven point- breakeven point is when you are back to 0 in your business. Most of us know a products profit margin or the amount over the cost of the product that we make for each item that sells. Let's take a hamburger restaurant as our example. We are great shoppers and find our hamburger for $2 a pound so our ¼ pd hamburger costs .50 plus the bun and toppings lets say we are up to $1 per burger. We sell the burger for $2 and that makes our profit margin per unit $1. But we have to pay Sally and Susie to work at the hamburger restaurant and we have to pay for lights and rent on the building and energy to heat the burgers, these are all our overhead costs. Let's say all those things come to $1000 a month more. That means for our business to get back to 0. We aren't losing any money or making any money we have to sell 1000 burgers a month. That is our breakeven point.

Free cash flow – what it means and how to build it.

Money comes and goes in a business. Equaling income and expenses, this is free cash flow. Keeping track of your cash flow and making sure you do not run out is the way to build it.

Your company will need to be able to have enough money coming in to cover the expenses going and then have a little money at the end of the month left over to build an increase in the cash flow.

Money comes and goes in a business. Equaling income and expenses, this is free cash flow. Keeping track of your cash flow and making sure you do not run out is the way to build it.

Your company will need to be able to have enough money coming in to cover the expenses going and then have a little money at the end of the month left over to build an increase in the cash flow.

Should your use factoring to finanace your business

To run a successful business you have to have very good financing. It is important that you run your finances well otherwise you will probably not stay in business for long. You need enough money to start the business as well as enough money to keep the business running for, hopefully, a long long time.

Most of the money you will receive to keep the business running is from your customers. They will buy your product and you will keep the money that they pay you with. You can use this money to keep up the business, pay employees etc. If you did not have any money coming in like this then you would not be able to stay in business at all.

To run a successful business you have to have very good financing. It is important that you run your finances well otherwise you will probably not stay in business for long. You need enough money to start the business as well as enough money to keep the business running for, hopefully, a long long time.

Most of the money you will receive to keep the business running is from your customers. They will buy your product and you will keep the money that they pay you with. You can use this money to keep up the business, pay employees etc. If you did not have any money coming in like this then you would not be able to stay in business at all.

How To Get a Line of Credit

For small businesses that are starting out and in the process of developing it is important that they get a line of credit. The expenses for staring out a business can be huge and it is almost impossible to pull that from the pocket unless you are very wealthy and are bored with life so you started a small business because you had the urge to. This of course is rare.

There are tons of expenses from salaries and rent to advertising and utilities. There are countless things to consider and countless things that are not thought of until you already have your business up and running. Because there are so many expenses and it is hard to come by money with out working your tail off, and even then you may find it impossible at first to make ends meet. A line of credit could be a great idea for you.

For small businesses that are starting out and in the process of developing it is important that they get a line of credit. The expenses for staring out a business can be huge and it is almost impossible to pull that from the pocket unless you are very wealthy and are bored with life so you started a small business because you had the urge to. This of course is rare.

There are tons of expenses from salaries and rent to advertising and utilities. There are countless things to consider and countless things that are not thought of until you already have your business up and running. Because there are so many expenses and it is hard to come by money with out working your tail off, and even then you may find it impossible at first to make ends meet. A line of credit could be a great idea for you.

Offshore Strategies & Services

Offshore strategies may or may not be right for you. Moreover, there is a right way and a wrong way (legal and illegal) to execute offshore strategies. If you choose the wrong way you may wind up worse off than if you had done nothing at all.

You need a principled, experienced offshore consulting firm to give you the right answers. There are hundreds of offshore service providers on the Internet. But who are they and, just as importantly, where are they? If you have never used offshore resources to protect your financial future because you just couldn't be sure with whom you would be dealing, you were correct to be concerned.

Many of these Internet promoters seem to exist only in cyberspace. They prey on fools with unrealistic goals. Use your common sense and choose a consultant just as you would a lawyer, doctor or accountant. Research who they are and where they are – physically, not just a domain name or email address. Get references and check for licenses or registrations.

Offshore Goals

What are your goals? If your goals are unrealistic you are a perfect candidate to get burned by unscrupulous promoters as they will be the only ones willing to promise you the moon.

Offshore strategies may or may not be right for you. Moreover, there is a right way and a wrong way (legal and illegal) to execute offshore strategies. If you choose the wrong way you may wind up worse off than if you had done nothing at all.

You need a principled, experienced offshore consulting firm to give you the right answers. There are hundreds of offshore service providers on the Internet. But who are they and, just as importantly, where are they? If you have never used offshore resources to protect your financial future because you just couldn't be sure with whom you would be dealing, you were correct to be concerned.

Many of these Internet promoters seem to exist only in cyberspace. They prey on fools with unrealistic goals. Use your common sense and choose a consultant just as you would a lawyer, doctor or accountant. Research who they are and where they are – physically, not just a domain name or email address. Get references and check for licenses or registrations.

Offshore Goals

What are your goals? If your goals are unrealistic you are a perfect candidate to get burned by unscrupulous promoters as they will be the only ones willing to promise you the moon.

Five Quick Ways to Speed Up Cash Flow

At one point or another, almost every business runs short of cash. Whether due to normal fluctuations in demand or an unexpected decline in sales, cash shortfalls are the bane of every company, and are responsible for sleepless nights for many business owners.

Yet, there are a number of simple ways that you can reduce your dependence on your company’s line of credit and increase the cash that you need. Here are five no-cost methods to try:

Increase Receivables Collection Efforts: This is the easiest and fastest way to generate cash but, surprisingly, most companies do a terrible job of it. Start by calling all customers whose invoices are between 25 and 30 days old to ensure that they have your bill and to find out when it is scheduled for payment. These are the easiest collection calls to make and they often result in faster payment. And, it allows you to quickly rectify problems that may delay your check.

Get Payment In Advance: Another often overlooked technique is to simply ask customers for advance payment, or for a partial payment for goods and services. This approach is especially valid with large purchases, or on work where you’ll incur significant expenses before being able to deliver the final product. Most customers will agree to such a request without asking any questions.

At one point or another, almost every business runs short of cash. Whether due to normal fluctuations in demand or an unexpected decline in sales, cash shortfalls are the bane of every company, and are responsible for sleepless nights for many business owners.

Yet, there are a number of simple ways that you can reduce your dependence on your company’s line of credit and increase the cash that you need. Here are five no-cost methods to try:

Increase Receivables Collection Efforts: This is the easiest and fastest way to generate cash but, surprisingly, most companies do a terrible job of it. Start by calling all customers whose invoices are between 25 and 30 days old to ensure that they have your bill and to find out when it is scheduled for payment. These are the easiest collection calls to make and they often result in faster payment. And, it allows you to quickly rectify problems that may delay your check.

Get Payment In Advance: Another often overlooked technique is to simply ask customers for advance payment, or for a partial payment for goods and services. This approach is especially valid with large purchases, or on work where you’ll incur significant expenses before being able to deliver the final product. Most customers will agree to such a request without asking any questions.

Can Walmart make you rich?

Have you ever shopped at Walmart and thought... I need to get my products on those shelves. Did you spot the perfect place for your new product and think, Bingo, that's where my product will go. I think I'll give them a call.

The truth is, Walmart receives hundreds of calls each day, asking the same question, "How do I become a vendor?" For many people getting your products on the shelves of Walmart is the pot at the end of the rainbow. Thoughts of millions of dollars race through their heads. For some, Walmart is the pot of gold they searched for. For others it will be another day in bankruptcy court.

The road to the corporate Walmart headquarters can be a long one, it can also be the best road ever traveled. Before even approaching such a large retailer, you must do your homework. The first step to being a Walmart vendor is to go online at www.walmartstores.com and submit detailed financial info about your company. You can also call corporate headquarters in Bentonville, Arkansas at (501) 273-4000.
Operators will refer you to the appropriate department for the information you need. You also must be listed with and order and pay for two Dun & Bradstreet reports. Walmart wants to know you can handle your biz.

In addition to following these steps, you must apply for Universal Product Code (UPC), meet applicable liability and workers compensation insurance requirements, pass quality assurance testing, and meet Labeling and Packaging requirements. If you survive this round, you might just find yourself in the big ole parking lot filled with rental cars from fellow vendors... ! your competition. Don't worry, there will be many scared faces to match yours.

Have you ever shopped at Walmart and thought... I need to get my products on those shelves. Did you spot the perfect place for your new product and think, Bingo, that's where my product will go. I think I'll give them a call.

The truth is, Walmart receives hundreds of calls each day, asking the same question, "How do I become a vendor?" For many people getting your products on the shelves of Walmart is the pot at the end of the rainbow. Thoughts of millions of dollars race through their heads. For some, Walmart is the pot of gold they searched for. For others it will be another day in bankruptcy court.

The road to the corporate Walmart headquarters can be a long one, it can also be the best road ever traveled. Before even approaching such a large retailer, you must do your homework. The first step to being a Walmart vendor is to go online at www.walmartstores.com and submit detailed financial info about your company. You can also call corporate headquarters in Bentonville, Arkansas at (501) 273-4000.
Operators will refer you to the appropriate department for the information you need. You also must be listed with and order and pay for two Dun & Bradstreet reports. Walmart wants to know you can handle your biz.

In addition to following these steps, you must apply for Universal Product Code (UPC), meet applicable liability and workers compensation insurance requirements, pass quality assurance testing, and meet Labeling and Packaging requirements. If you survive this round, you might just find yourself in the big ole parking lot filled with rental cars from fellow vendors... ! your competition. Don't worry, there will be many scared faces to match yours.

Top Ten Tips for Improving Your Cash Flow

Cash is king—so they say. If you work for yourself or someone else, you need to be aware of ways to improve the cash flow. Budgeting and collecting are not glamorous but they are both key to having a successful business. Working in a successful business is much more fun than working for a struggling one!

1. Stick to your budget. (If you don’t have one, make one now.) The budget is part of a business plan. You want to know exactly how much to spend on each large item you purchase and when you will have the cash to do it. Your cash flow projection coupled with your forecast will give you the proper timing for making purchases. The items you have budgeted for should also be part of the business plan.

2. Bill your clients regularly. Many business owners are so busy selling to new clients that they forget to invoice the clients they have already worked with. Put the task of billing your clients on your calendar and then stick to that schedule.

3. Get a retainer for your services before you begin the work. If you are going to be working with a client over a period of time, you will want to request some money up front before you begin to deliver the service.

4. Give a discount for early payment. You will be able to collect the money more quickly if you offer a discount for prompt payment.

Cash is king—so they say. If you work for yourself or someone else, you need to be aware of ways to improve the cash flow. Budgeting and collecting are not glamorous but they are both key to having a successful business. Working in a successful business is much more fun than working for a struggling one!

1. Stick to your budget. (If you don’t have one, make one now.) The budget is part of a business plan. You want to know exactly how much to spend on each large item you purchase and when you will have the cash to do it. Your cash flow projection coupled with your forecast will give you the proper timing for making purchases. The items you have budgeted for should also be part of the business plan.

2. Bill your clients regularly. Many business owners are so busy selling to new clients that they forget to invoice the clients they have already worked with. Put the task of billing your clients on your calendar and then stick to that schedule.

3. Get a retainer for your services before you begin the work. If you are going to be working with a client over a period of time, you will want to request some money up front before you begin to deliver the service.

4. Give a discount for early payment. You will be able to collect the money more quickly if you offer a discount for prompt payment.

How To Get An Instant Pay Raise

As a gentleman was leaving my class recently, he wanted me to clarify something I had said. He was making sure that he should take his four or five thousand dollar tax refund and pay off debt.

I was stunned. This money represented $400-$500 that could have been in his pocket every month. A survey of my friends this week revealed one who was getting back $2800 and one getting $3300 back this year.

Getting a large tax refund (over $500) means you are having too much money withheld from your check every pay period.

Many people use this as a forced saving plan and it does not make any sense. You are loaning the government YOUR money, interest free. Every $1200 in refund is an extra $100 per month you could have used to eliminate debt or invest for your future.

I 'd venture to say that most people who do get large refunds could use this money every month to ease their debt burden. This burden frequently leads to late charges and higher interest rates. Instead, they like the feeling of getting that big check in the mail and figuring out how to spend that chunk of money.

The ideal situation is to either owe or get back $100.

As a gentleman was leaving my class recently, he wanted me to clarify something I had said. He was making sure that he should take his four or five thousand dollar tax refund and pay off debt.

I was stunned. This money represented $400-$500 that could have been in his pocket every month. A survey of my friends this week revealed one who was getting back $2800 and one getting $3300 back this year.

Getting a large tax refund (over $500) means you are having too much money withheld from your check every pay period.

Many people use this as a forced saving plan and it does not make any sense. You are loaning the government YOUR money, interest free. Every $1200 in refund is an extra $100 per month you could have used to eliminate debt or invest for your future.

I 'd venture to say that most people who do get large refunds could use this money every month to ease their debt burden. This burden frequently leads to late charges and higher interest rates. Instead, they like the feeling of getting that big check in the mail and figuring out how to spend that chunk of money.

The ideal situation is to either owe or get back $100.

The Mathematical Formula For Making Money

No matter what markets you serve; what products you sell; or what marketing tools you use, in business there's one truth you cannot escape.

Embrace this truth and profits will flood your business.

Disregard this truth and financial-cancer will eat you.

What is this truth?

Quite simply, the size and speed of your entrepreneurial success is directly proportional to your understanding of The Mathematical Formula For Making Money.

Despite serving as the corner stone of every single commercial success since the dawn of commerce most businesses neglect its power. Being so familiar with the diluted version of the formula these businesses overlook the enormous profit-potential held within.

The Formula

Mindful of this blind-spot, let's now take a close look at the Mathematical Formula For Making Money:

Leads x Conversion Rate = Customers

Gross Profits x Profit Margin = Net Profits

No matter what markets you serve; what products you sell; or what marketing tools you use, in business there's one truth you cannot escape.

Embrace this truth and profits will flood your business.

Disregard this truth and financial-cancer will eat you.

What is this truth?

Quite simply, the size and speed of your entrepreneurial success is directly proportional to your understanding of The Mathematical Formula For Making Money.

Despite serving as the corner stone of every single commercial success since the dawn of commerce most businesses neglect its power. Being so familiar with the diluted version of the formula these businesses overlook the enormous profit-potential held within.

The Formula

Mindful of this blind-spot, let's now take a close look at the Mathematical Formula For Making Money:

Leads x Conversion Rate = Customers

Gross Profits x Profit Margin = Net Profits

21 Secrets of Self Made Millionaires

Self-Made Millionaires are not smarter or better than you. They have just discovered these secrets and used them to become wealthy. You can do it too.

(1) DREAM BIG DREAMS. Thinking Big will change your life. For a crash course on this read "The Magic of Thinking Big."

(2) CREATE A SPECIFIC PICTURE OF WHERE YOU'RE GOING. The more specific you are the more likely you are to get there.

(3) THINK AND ACT LIKE YOU'RE THE OWNER OF A BUSINESS, THE BUSINESS OF EVERYTHING YOU DO. Even if you work for someone else, you're attitude will plant seeds for your independent greatness to grow.

(4) LOVE WHATEVER YOU ARE DOING NOW. If you don't love it, leave it. By saying no to doing work just for money you are magnetizing work to you that you can love.

(5) CREATE A MASTERMIND GROUP. Have a regular meeting with others who are committed to building great lives. Share what you're up to and support each other.

(6) ESTABLISH A HEALTHY WORK ETHIC. Make taking action your best friend.

(7) COMMIT TO CONSTANT NEVER-ENDING IMPROVEMENT. Every day be searching for how you can learn more.

Self-Made Millionaires are not smarter or better than you. They have just discovered these secrets and used them to become wealthy. You can do it too.

(1) DREAM BIG DREAMS. Thinking Big will change your life. For a crash course on this read "The Magic of Thinking Big."

(2) CREATE A SPECIFIC PICTURE OF WHERE YOU'RE GOING. The more specific you are the more likely you are to get there.

(3) THINK AND ACT LIKE YOU'RE THE OWNER OF A BUSINESS, THE BUSINESS OF EVERYTHING YOU DO. Even if you work for someone else, you're attitude will plant seeds for your independent greatness to grow.

(4) LOVE WHATEVER YOU ARE DOING NOW. If you don't love it, leave it. By saying no to doing work just for money you are magnetizing work to you that you can love.

(5) CREATE A MASTERMIND GROUP. Have a regular meeting with others who are committed to building great lives. Share what you're up to and support each other.

(6) ESTABLISH A HEALTHY WORK ETHIC. Make taking action your best friend.

(7) COMMIT TO CONSTANT NEVER-ENDING IMPROVEMENT. Every day be searching for how you can learn more.

Does Money Grow On Trees?

"Money Doesn't Grow On Trees."

Some of us even believe it. An orchard owner would say the statement is wrong.

His profits grow on trees…

As small business owners we are similar to tree farmers. We plant and nurture trees knowing that they will bear fruit. Some business owners grow trees with the idea of selling them when they start to produce fruit, but most of us build our orchards with the intention of selling the fruit.

In the early stages the trees require much tending. Later as the trees mature, they require less effort and produce more fruit.

How many trees are in your orchard?

My trees are designed to produce a constant stream of fruit with little oversight. This means once I have planted the tree I can move on to the next project.

Here's an example. I write ebooks. These are simple, tightly written reports on specific subjects. People buy them and then download them to read them. Each ebook explains a solution to a problem or a outlines a method to accomplish something.

"Money Doesn't Grow On Trees."

Some of us even believe it. An orchard owner would say the statement is wrong.

His profits grow on trees…

As small business owners we are similar to tree farmers. We plant and nurture trees knowing that they will bear fruit. Some business owners grow trees with the idea of selling them when they start to produce fruit, but most of us build our orchards with the intention of selling the fruit.

In the early stages the trees require much tending. Later as the trees mature, they require less effort and produce more fruit.

How many trees are in your orchard?

My trees are designed to produce a constant stream of fruit with little oversight. This means once I have planted the tree I can move on to the next project.

Here's an example. I write ebooks. These are simple, tightly written reports on specific subjects. People buy them and then download them to read them. Each ebook explains a solution to a problem or a outlines a method to accomplish something.

Treat Money Well To Attract More

Your ability to attract money has a lot to do with how you behave toward it.

The Law of Attraction works to send you more of what you think, feel and do. So the way you deal with money has a direct relation to how easily and abundantly it comes to you.

Imagine that money is a guest in your home and ask yourself: Would I treat a guest the way I treat money? Here are three ways we can show hospitality to guests - and money.

First, welcome your guests. Truly appreciate, from your heart, each visit and every visitor. A friend of mine welcomes money to his home by displaying each check he receives on a coffee table in his living room. He spends a few days appreciating his "guest" before depositing it into his bank account.

Since I receive most of my income electronically, I keep a spreadsheet of every transaction that comes my way. I love watching the total grow and I appreciate each person through whom the money came to me.

Second, remember that guests like to go places and do things and buy stuff. Money loves to go to restaurants, amusements and specialty shops. But money doesn't discriminate between pleasurable and "have to" activities. It also enjoys visits to the power corporation, the phone company and the firm that holds your mortgage. Money simply loves to be in circulation. It looks for people who understand that the more money you circulate, the more money you attract to circulate.

Your ability to attract money has a lot to do with how you behave toward it.

The Law of Attraction works to send you more of what you think, feel and do. So the way you deal with money has a direct relation to how easily and abundantly it comes to you.

Imagine that money is a guest in your home and ask yourself: Would I treat a guest the way I treat money? Here are three ways we can show hospitality to guests - and money.

First, welcome your guests. Truly appreciate, from your heart, each visit and every visitor. A friend of mine welcomes money to his home by displaying each check he receives on a coffee table in his living room. He spends a few days appreciating his "guest" before depositing it into his bank account.

Since I receive most of my income electronically, I keep a spreadsheet of every transaction that comes my way. I love watching the total grow and I appreciate each person through whom the money came to me.

Second, remember that guests like to go places and do things and buy stuff. Money loves to go to restaurants, amusements and specialty shops. But money doesn't discriminate between pleasurable and "have to" activities. It also enjoys visits to the power corporation, the phone company and the firm that holds your mortgage. Money simply loves to be in circulation. It looks for people who understand that the more money you circulate, the more money you attract to circulate.

Bankruptcy Myths Busted

The average American knows very little about bankruptcy. Most people probably are aware of bankruptcy’s ability to dissolve debt and give the debtor a fresh start. Some of the information you might have heard is correct, but some is not. The purpose of this article is to dispel some of the most common bankruptcy myths.

1. Even if I file for bankruptcy creditors will still harass me and my family.

This is absolutely false. Bankruptcy law provides for an automatic stay. Simply, as soon as you file for bankruptcy a hold is put on all your outstanding debts and any creditor attempts to collect those debts. The law prohibits a debtor to attempt to collect, possess, or even contact the debtor in regard to the debt. If a creditor does not follow the rules, the debtor may have an action in the form of punitive damages. Basically, punitive damages are meant to punish a creditor for not following the procedures set out in the bankruptcy code. Whether a debtor has a cause of action against a creditor should be left to an attorney to answer. However what you need to know is this; once you file for bankruptcy, creditors must leave you alone or suffer the consequences.

2. If I file for bankruptcy it may cause more family troubles than I already have, maybe even divorce.

This is also false. There are two ways a debtor can file for bankruptcy voluntary and involuntary. Voluntary filing is done by the debtor. The debtor talks to an attorney or files a petition pro se and gets the bankruptcy process started. In an involuntary bankruptcy, the creditor forces the debtor into bankruptcy often times unwanted by the debtor. Voluntary filing is the result of a family discussing their options with each other and possibly an attorney and making an informed decision on the merits. Divorce is often associated with a bankruptcy with the latter filing. Voluntarily filing for bankruptcy gives the debtor a chance to set his terms and allows the debtor a free choice for the bankruptcy.

The average American knows very little about bankruptcy. Most people probably are aware of bankruptcy’s ability to dissolve debt and give the debtor a fresh start. Some of the information you might have heard is correct, but some is not. The purpose of this article is to dispel some of the most common bankruptcy myths.

1. Even if I file for bankruptcy creditors will still harass me and my family.

This is absolutely false. Bankruptcy law provides for an automatic stay. Simply, as soon as you file for bankruptcy a hold is put on all your outstanding debts and any creditor attempts to collect those debts. The law prohibits a debtor to attempt to collect, possess, or even contact the debtor in regard to the debt. If a creditor does not follow the rules, the debtor may have an action in the form of punitive damages. Basically, punitive damages are meant to punish a creditor for not following the procedures set out in the bankruptcy code. Whether a debtor has a cause of action against a creditor should be left to an attorney to answer. However what you need to know is this; once you file for bankruptcy, creditors must leave you alone or suffer the consequences.

2. If I file for bankruptcy it may cause more family troubles than I already have, maybe even divorce.

This is also false. There are two ways a debtor can file for bankruptcy voluntary and involuntary. Voluntary filing is done by the debtor. The debtor talks to an attorney or files a petition pro se and gets the bankruptcy process started. In an involuntary bankruptcy, the creditor forces the debtor into bankruptcy often times unwanted by the debtor. Voluntary filing is the result of a family discussing their options with each other and possibly an attorney and making an informed decision on the merits. Divorce is often associated with a bankruptcy with the latter filing. Voluntarily filing for bankruptcy gives the debtor a chance to set his terms and allows the debtor a free choice for the bankruptcy.

Do You Make These 7 Deadly Cash Flow Mistakes?

Managing cash flow is every small business owner's most important function. Avoid these seven deadly mistakes to make sure you aren't creating cash flow problems in your business.

1. Using the "Fly By The Seat of Your Pants" Accounting Method.

When tax time rolls around do you find yourself pawing through piles of paper on your desk looking for credit card receipts from your business trip? Or are you upside down digging under the seat of your car trying to figure out where all your gas receipts are? Are you wondering if that coffee stained piece of paper is an invoice from a supplier? Do you have a vague feeling that someone, somewhere owes you money but, you just can't remember who it is? If so, you're probably guilty of operating with the "Fly By the Seat of Your Pants" accounting method.

Using this accounting method has a tremendous impact on your business's cash flow. Unless you have a system to track your business finances, you'll always be operating in the dark and in danger of imitating George of the Jungle as he slams into a tree.

2. Not Knowing What the Numbers Are All About.

Once you have a real honest to goodness useful accounting system that's where the real fun starts. You've got a bunch of numbers but what in the world do you do with them?

Managing cash flow is every small business owner's most important function. Avoid these seven deadly mistakes to make sure you aren't creating cash flow problems in your business.

1. Using the "Fly By The Seat of Your Pants" Accounting Method.

When tax time rolls around do you find yourself pawing through piles of paper on your desk looking for credit card receipts from your business trip? Or are you upside down digging under the seat of your car trying to figure out where all your gas receipts are? Are you wondering if that coffee stained piece of paper is an invoice from a supplier? Do you have a vague feeling that someone, somewhere owes you money but, you just can't remember who it is? If so, you're probably guilty of operating with the "Fly By the Seat of Your Pants" accounting method.

Using this accounting method has a tremendous impact on your business's cash flow. Unless you have a system to track your business finances, you'll always be operating in the dark and in danger of imitating George of the Jungle as he slams into a tree.

2. Not Knowing What the Numbers Are All About.

Once you have a real honest to goodness useful accounting system that's where the real fun starts. You've got a bunch of numbers but what in the world do you do with them?

Six Critical Steps in the Turnaround Process: An Owner’s Viewpoint

Step 1 – Recognize the Problem for What it Really Is – A MAJOR CRISIS

The undeniable temptation of the business owner seems to be conveniently blaming one major event for the company’s problems: Perhaps it’s just another low point in the regular cycle. Perhaps it’s just one bad management decision on extending credit or investing heavily in a new product that failed. Perhaps it’s just a couple of new orders that cost you more money than anticipated.

But your business advisors (lawyers, accountants, etc.) have got to help you accept the fact that your business is, in fact, in a Life Threatening Major Crisis, and the sooner you accept and acknowledge that you are in a crisis, the sooner you can take appropriate steps to deal with it.

Step 2 – Recognize the Need for Outside Help The problems you have dictate the type of outside help you should seek. If you are in a true crisis or near one, you are likely faced with dwindling cash, little time to act, and decreasing options still available to you. It’s critical to seek help from outsiders, turn-around consultants, who have “been there and done that.” Most owners have never even heard of turnaround consulting, let alone witnessed a turnaround specialist in action; therefore, the concept of “real economic value” they can provide seems vague and abstract.

The cost of the turnaround consultant or team is usually a huge shock to the entrepreneur. Having one or more full-time consultants on the expense ledger, charging several hundred dollars an hour for several months, can be very expensive. Although, frankly speaking, what does it matter? Your alternative is almost certainly losing your company, your investment, your career and your status.

Step 1 – Recognize the Problem for What it Really Is – A MAJOR CRISIS

The undeniable temptation of the business owner seems to be conveniently blaming one major event for the company’s problems: Perhaps it’s just another low point in the regular cycle. Perhaps it’s just one bad management decision on extending credit or investing heavily in a new product that failed. Perhaps it’s just a couple of new orders that cost you more money than anticipated.

But your business advisors (lawyers, accountants, etc.) have got to help you accept the fact that your business is, in fact, in a Life Threatening Major Crisis, and the sooner you accept and acknowledge that you are in a crisis, the sooner you can take appropriate steps to deal with it.

Step 2 – Recognize the Need for Outside Help The problems you have dictate the type of outside help you should seek. If you are in a true crisis or near one, you are likely faced with dwindling cash, little time to act, and decreasing options still available to you. It’s critical to seek help from outsiders, turn-around consultants, who have “been there and done that.” Most owners have never even heard of turnaround consulting, let alone witnessed a turnaround specialist in action; therefore, the concept of “real economic value” they can provide seems vague and abstract.

The cost of the turnaround consultant or team is usually a huge shock to the entrepreneur. Having one or more full-time consultants on the expense ledger, charging several hundred dollars an hour for several months, can be very expensive. Although, frankly speaking, what does it matter? Your alternative is almost certainly losing your company, your investment, your career and your status.

Mediating out of Financial Crisis: Negotiation with an “open book” policy can mean the difference between financial stability and bankruptcy

We’ve all experienced conflict in our lives, from schoolyard spats to the power play with the ambitious coworker. But when a company experiences a financial crisis, the conflicts that erupt can mean corporate extinction.

According to Dan Dooley, partner with corporate turnaround consultancy Morris Anderson & Associates, negotiation between all business parties is especially important when a company is in financial crisis. “Fundamentally, he says, “a workout is a multi-layered negotiation, because you’ve got multiple stakeholders, including senior debt, meaning the bank; the people who own the company, often many layers of equity owners; the people who manage the company, and on top of that usually unsecured or trade creditors.

“What often happens during crisis is the CFO or other C-level manager is trying to contain the news that the company’s in distress,” he says. “But the funny thing is that the vendors, creditors, employees and bankers already sense the distress. Hiding the trouble is the wrong thing to do—it only damages management’s credibility.”

So what’s the first step? Dr. Beverly Potter, author of From Conflict to Cooperation: How to Mediate a Dispute, recommends that the mediation process begin with information gathering. All parties involved need to openly discuss the issues one at a time. For management at a financially distressed company, this means looking beyond the numbers to the consequences.

We’ve all experienced conflict in our lives, from schoolyard spats to the power play with the ambitious coworker. But when a company experiences a financial crisis, the conflicts that erupt can mean corporate extinction.

According to Dan Dooley, partner with corporate turnaround consultancy Morris Anderson & Associates, negotiation between all business parties is especially important when a company is in financial crisis. “Fundamentally, he says, “a workout is a multi-layered negotiation, because you’ve got multiple stakeholders, including senior debt, meaning the bank; the people who own the company, often many layers of equity owners; the people who manage the company, and on top of that usually unsecured or trade creditors.

“What often happens during crisis is the CFO or other C-level manager is trying to contain the news that the company’s in distress,” he says. “But the funny thing is that the vendors, creditors, employees and bankers already sense the distress. Hiding the trouble is the wrong thing to do—it only damages management’s credibility.”

So what’s the first step? Dr. Beverly Potter, author of From Conflict to Cooperation: How to Mediate a Dispute, recommends that the mediation process begin with information gathering. All parties involved need to openly discuss the issues one at a time. For management at a financially distressed company, this means looking beyond the numbers to the consequences.

Turnarounds and Workouts: What's the 2005 Forecast?

Clearly, the trend of large company insolvencies that started in 1999 has come and gone. Most of us in the turnaround industry expect the next few years to have much slimmer pickin's.

We won't spend much time explaining why the cycle of distress has ended. It's clear to industry insiders that: 1) big company bankruptcies, which drive the turnaround industry, are way down; 2) non-performing assets (NPAs) of most lenders are again within fully reserved levels; 3) bank workout staffing is down 25-75%; 4) capital funding returned to the market in late 2003 in all segments—equity sponsors, high-yield bonds, M&A activity, even cash-flow lending; 5) the U.S. economy is expanding in almost all sectors, and; 6) the boom-to-bust cycles of "hot" industries (internet, telecom, energy) driven by technology or regulatory changes have mostly run their course.

So what's a turnaround consulting firm to do when near-term business is likely to drop by 50% or so? The obvious solutions are being worked by many of us: skill redeployment to front-end M&A work; diversification into services such as M&A and litigation support; and geographic expansion, mostly to Western Europe, where local laws are evolving toward debtor-friendly rehabilitation.

That said, there are numerous structural changes in the U.S. economy making turnarounds a growth industry for decades to come. Consider the following phenomena.

1. Interest Rates

Many people believe interest rates are about 200 basis points (or more) too low based on history. Greenspan's dilemma is to move rates up gradually without stalling the economic recovery or unduly harming President Bush's re-election bid. When interest rates rise, any struggling company now paying more than 5% of net revenue in cash interest will suffer a body blow to its meager profitability and liquidity.

Clearly, the trend of large company insolvencies that started in 1999 has come and gone. Most of us in the turnaround industry expect the next few years to have much slimmer pickin's.

We won't spend much time explaining why the cycle of distress has ended. It's clear to industry insiders that: 1) big company bankruptcies, which drive the turnaround industry, are way down; 2) non-performing assets (NPAs) of most lenders are again within fully reserved levels; 3) bank workout staffing is down 25-75%; 4) capital funding returned to the market in late 2003 in all segments—equity sponsors, high-yield bonds, M&A activity, even cash-flow lending; 5) the U.S. economy is expanding in almost all sectors, and; 6) the boom-to-bust cycles of "hot" industries (internet, telecom, energy) driven by technology or regulatory changes have mostly run their course.

So what's a turnaround consulting firm to do when near-term business is likely to drop by 50% or so? The obvious solutions are being worked by many of us: skill redeployment to front-end M&A work; diversification into services such as M&A and litigation support; and geographic expansion, mostly to Western Europe, where local laws are evolving toward debtor-friendly rehabilitation.

That said, there are numerous structural changes in the U.S. economy making turnarounds a growth industry for decades to come. Consider the following phenomena.

1. Interest Rates

Many people believe interest rates are about 200 basis points (or more) too low based on history. Greenspan's dilemma is to move rates up gradually without stalling the economic recovery or unduly harming President Bush's re-election bid. When interest rates rise, any struggling company now paying more than 5% of net revenue in cash interest will suffer a body blow to its meager profitability and liquidity.

Moving from Defense to Offense

It’s time to do M&A deals. Equity funds are under strong pressure to deploy committed capital or return the dough to the investors. Deal multiples are increasing, and serious bidders for distressed and profitable businesses are driving up prices. “Distressed Asset” investment bankers are shifting resources back to more traditional M&A because deal flow is back.

Although the lending environment has only loosened up moderately in the last two quarters, one can almost feel the pressure starting to increase “to grow that portfolio.” The signs include a major decrease in Fortune 500 bankruptcy run-rate, improved loan quality ratings across the board, bank workout group sizes being reduced, loan portfolios down 10% to 20%, major workout consulting firms rediscovering the middle-market, and BofA buying Fleet, an action that will likely reignite what Ted Koenig of Hilco Capital calls “The Great Bank Consolidation.”

The big questions: Will we repeat the sins of past? And what should be the lessons learned?

Sins of the Past

1. Industry roll-ups are not necessarily accretive to value Simply putting together a group of similar businesses—in terms of market and industry—to form a bigger business doesn’t create accretive value unless more cash is generated by the new business. We have witnessed too many roll-ups with somewhat similar businesses where no cost takeouts were planned, cross-selling between the businesses was unrealistic, and roll-up management was only capable of adding overhead—and not up to the task of managing the much larger and diverse business resulting. Typically, these roll-ups have failed, with many of them “un-rolled” and the original sellers buying them back at a fraction of the sell price.

2. Weak or non-existent operating due diligence It is amazing how little due diligence investors and lenders were performing on deals in the late ‘90s. Just because the numbers add up on an Excel spreadsheet doesn’t mean that a management team can execute a business plan.

It’s time to do M&A deals. Equity funds are under strong pressure to deploy committed capital or return the dough to the investors. Deal multiples are increasing, and serious bidders for distressed and profitable businesses are driving up prices. “Distressed Asset” investment bankers are shifting resources back to more traditional M&A because deal flow is back.

Although the lending environment has only loosened up moderately in the last two quarters, one can almost feel the pressure starting to increase “to grow that portfolio.” The signs include a major decrease in Fortune 500 bankruptcy run-rate, improved loan quality ratings across the board, bank workout group sizes being reduced, loan portfolios down 10% to 20%, major workout consulting firms rediscovering the middle-market, and BofA buying Fleet, an action that will likely reignite what Ted Koenig of Hilco Capital calls “The Great Bank Consolidation.”

The big questions: Will we repeat the sins of past? And what should be the lessons learned?

Sins of the Past

1. Industry roll-ups are not necessarily accretive to value Simply putting together a group of similar businesses—in terms of market and industry—to form a bigger business doesn’t create accretive value unless more cash is generated by the new business. We have witnessed too many roll-ups with somewhat similar businesses where no cost takeouts were planned, cross-selling between the businesses was unrealistic, and roll-up management was only capable of adding overhead—and not up to the task of managing the much larger and diverse business resulting. Typically, these roll-ups have failed, with many of them “un-rolled” and the original sellers buying them back at a fraction of the sell price.

2. Weak or non-existent operating due diligence It is amazing how little due diligence investors and lenders were performing on deals in the late ‘90s. Just because the numbers add up on an Excel spreadsheet doesn’t mean that a management team can execute a business plan.

Building Wealth by Paying Yourself First

When I look around at all of my friends, and a lot of my family, I see a lot of people living from pay check to pay check, under monetary stress. These same people watch the Calendar for payday like a hawk. Pay their bills, and then open up the spending flood gates, before they know it, they are itching for their next pay check. These same people are the people who don't think they make enough money to build future wealth. They are wrong.

The way I save money, is by paying myself first. I have automatic deductions come out of my bank account on the 15th and 30th of every month, which I put directly into a mutual fund for safe keeping. I take a small portion of my pay check, roughly 10% and put it away. This may not seem like much, but over time it adds up.

In addition, with mutual funds you will have the benefit of compound interest on your side. You should EASILY be able to achieve 8% interest on average in a good a mutual fund, often times more. That’s $800 a year on $10000!

Once you start, you will be addicted. Watching your funds grow is incredibly addictive and will inspire you to invest a larger percentage as your income rises. If you have debt, put a portion of this percentage towards the debt and a portion into your mutual fund, so you have something positive to reinforce your automatic deductions.

When I look around at all of my friends, and a lot of my family, I see a lot of people living from pay check to pay check, under monetary stress. These same people watch the Calendar for payday like a hawk. Pay their bills, and then open up the spending flood gates, before they know it, they are itching for their next pay check. These same people are the people who don't think they make enough money to build future wealth. They are wrong.

The way I save money, is by paying myself first. I have automatic deductions come out of my bank account on the 15th and 30th of every month, which I put directly into a mutual fund for safe keeping. I take a small portion of my pay check, roughly 10% and put it away. This may not seem like much, but over time it adds up.

In addition, with mutual funds you will have the benefit of compound interest on your side. You should EASILY be able to achieve 8% interest on average in a good a mutual fund, often times more. That’s $800 a year on $10000!

Once you start, you will be addicted. Watching your funds grow is incredibly addictive and will inspire you to invest a larger percentage as your income rises. If you have debt, put a portion of this percentage towards the debt and a portion into your mutual fund, so you have something positive to reinforce your automatic deductions.

Investing Online Has Its Rewards: Find Out How To Take Advantage Of Them

Computerized investing. Online investing. Have you taken the next step yet? These days among savvy investors, online investment resources are synonymous with opportunity.

The capabilities that we currently have at our fingertips were unavailable just ten years ago. The speed at which you can invest with an online broker, along with ease of use (you can trade in your underwear), makes traditional local brokers seem obsolete.

More and more people are taking to “active investing” rather than just sticking money in mutual funds recommended by their advisors. This means atypical investors are now taking active roles in their portfolios and seeing greater returns, if they know what they are doing.

In order to become an active investor, you must know what you are doing. It is your money we are talking about here. The thing is, once you know that there are ways to net up to 18%+ returns on investments that are hardly more risky than what most people consider safe today (mutual funds, diversification), you can hardly live with yourself by leaving your money in a “safe” 4% fund.

I work with people to change their perceptions about what is possible with investing today. The tools available online for investors are simply incredible when you think about the fact that investing news and the latest trends would have to wait to reach you until they were printed and flown to whatever part of the country you live in.

Computerized investing. Online investing. Have you taken the next step yet? These days among savvy investors, online investment resources are synonymous with opportunity.

The capabilities that we currently have at our fingertips were unavailable just ten years ago. The speed at which you can invest with an online broker, along with ease of use (you can trade in your underwear), makes traditional local brokers seem obsolete.

More and more people are taking to “active investing” rather than just sticking money in mutual funds recommended by their advisors. This means atypical investors are now taking active roles in their portfolios and seeing greater returns, if they know what they are doing.

In order to become an active investor, you must know what you are doing. It is your money we are talking about here. The thing is, once you know that there are ways to net up to 18%+ returns on investments that are hardly more risky than what most people consider safe today (mutual funds, diversification), you can hardly live with yourself by leaving your money in a “safe” 4% fund.

I work with people to change their perceptions about what is possible with investing today. The tools available online for investors are simply incredible when you think about the fact that investing news and the latest trends would have to wait to reach you until they were printed and flown to whatever part of the country you live in.

10 Days to Making More Money

Most of us overcomplicate things. Selling is pretty simple. True we need systems in place, support materials and a contact manager, but when all is said and done what stops us from selling is usually in our head, not in our office.

There are 4 actions when taken everyday for 10 working days with unswerving commitment will increase your sales and put more money in your pocket. Guaranteed!

1 - Set Your Intention There is absolutely no substitute for knowing what you're going after. Research clearly indicates when we set an intention or a goal we subconsciously as well as consciously align our actions and resources to attain that goal. What some folks find as lucky and coincidental is actually the power of intention at work. Few things are as powerful as our thoughts and if our thoughts are not aligned with our actions our thoughts always win. When you set a strong intention it gives your actions a path to follow instead of the other way around.

How many prospects will you contact each day? How many sales will you make? It is important to keep your intention clearly in front of you throughout the day. Don't worry how all the details will come together just keep focused on what you want to accomplish. Intention does not take the place of action, but action alone can often result in activity and no sales.

Most of us overcomplicate things. Selling is pretty simple. True we need systems in place, support materials and a contact manager, but when all is said and done what stops us from selling is usually in our head, not in our office.

There are 4 actions when taken everyday for 10 working days with unswerving commitment will increase your sales and put more money in your pocket. Guaranteed!

1 - Set Your Intention There is absolutely no substitute for knowing what you're going after. Research clearly indicates when we set an intention or a goal we subconsciously as well as consciously align our actions and resources to attain that goal. What some folks find as lucky and coincidental is actually the power of intention at work. Few things are as powerful as our thoughts and if our thoughts are not aligned with our actions our thoughts always win. When you set a strong intention it gives your actions a path to follow instead of the other way around.

How many prospects will you contact each day? How many sales will you make? It is important to keep your intention clearly in front of you throughout the day. Don't worry how all the details will come together just keep focused on what you want to accomplish. Intention does not take the place of action, but action alone can often result in activity and no sales.

Mediating Out of Financial Crisis: Negation with an "Open Book" Policy Can Mean the Difference Between Financial Stability and Bankruptcy

We’ve all experienced conflict in our lives, from schoolyard spats to the power play with the ambitious coworker. But when a company experiences a financial crisis, the conflicts that erupt can mean corporate extinction.

According to Dan Dooley, partner with corporate turnaround consultancy Morris Anderson & Associates, negotiation between all business parties is especially important when a company is in financial crisis. “Fundamentally, he says, “a workout is a multi-layered negotiation, because you’ve got multiple stakeholders, including senior debt, meaning the bank; the people who own the company, often many layers of equity owners; the people who manage the company, and on top of that usually unsecured or trade creditors.

“What often happens during crisis is the CFO or other C-level manager is trying to contain the news that the company’s in distress,” he says. “But the funny thing is that the vendors, creditors, employees and bankers already sense the distress. Hiding the trouble is the wrong thing to do—it only damages management’s credibility.”

We’ve all experienced conflict in our lives, from schoolyard spats to the power play with the ambitious coworker. But when a company experiences a financial crisis, the conflicts that erupt can mean corporate extinction.

According to Dan Dooley, partner with corporate turnaround consultancy Morris Anderson & Associates, negotiation between all business parties is especially important when a company is in financial crisis. “Fundamentally, he says, “a workout is a multi-layered negotiation, because you’ve got multiple stakeholders, including senior debt, meaning the bank; the people who own the company, often many layers of equity owners; the people who manage the company, and on top of that usually unsecured or trade creditors.

“What often happens during crisis is the CFO or other C-level manager is trying to contain the news that the company’s in distress,” he says. “But the funny thing is that the vendors, creditors, employees and bankers already sense the distress. Hiding the trouble is the wrong thing to do—it only damages management’s credibility.”

How to Increase Your Profits Without Spending a Dime!

Whatever the purpose of your web site you have to pay for certain services. As a bare minimum you will need to pay for hosting, for traffic and for an autoresponder account. The costs of these services are fixed irrespective of the number of sales that you can make.

lets say that your total fixed costs for these services are $500 a year and that you sell 50 eBooks a year at $27. That means that your income is $1350 and, after paying your fixed costs you are making $850 profit each year. So your profit represents about 63% of your sales income.

Now, lets say your current conversion rate of unique visitors to sales is about average at 2%. So to get 50 sales you need 2,500 unique visitors.

To boost their sales income, most people will try to increase the traffic to their web site by spending money on Pay Per Click campaigns, advertising in ezines or by investing in banner adverts. If you don't want to spend your hard earned cash, then you will need to invest a lot of time on article writing and other "do it yourself" promotional activities.

What if you could nearly double your profit in a few easy steps?

Whatever the purpose of your web site you have to pay for certain services. As a bare minimum you will need to pay for hosting, for traffic and for an autoresponder account. The costs of these services are fixed irrespective of the number of sales that you can make.

lets say that your total fixed costs for these services are $500 a year and that you sell 50 eBooks a year at $27. That means that your income is $1350 and, after paying your fixed costs you are making $850 profit each year. So your profit represents about 63% of your sales income.

Now, lets say your current conversion rate of unique visitors to sales is about average at 2%. So to get 50 sales you need 2,500 unique visitors.

To boost their sales income, most people will try to increase the traffic to their web site by spending money on Pay Per Click campaigns, advertising in ezines or by investing in banner adverts. If you don't want to spend your hard earned cash, then you will need to invest a lot of time on article writing and other "do it yourself" promotional activities.

What if you could nearly double your profit in a few easy steps?

Reverse The Risk And Boost Your Profits

As a business owner or marketer, if you don't reverse the risk in your product and/or service offerings, you're really missing out in what can be one of the most powerful weapons in your marketing arsenal.

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Risk Reversal Defined
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Risk Reversal, in essence, means that you, the business owner, assumes all the risks associated with the business transactions, and your customers none.

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Why Reverse The Risk?
---------------------------

The main reason that you'll want to reverse the risk is so that you may boost your sales and profits.

Risk Reversal can easily be achieved by providing an Extraordinary Guarantee. An example would be an iron-clad, no-questions-asked money back guarantee.

As a business owner or marketer, if you don't reverse the risk in your product and/or service offerings, you're really missing out in what can be one of the most powerful weapons in your marketing arsenal.

--------------------------
Risk Reversal Defined
--------------------------

Risk Reversal, in essence, means that you, the business owner, assumes all the risks associated with the business transactions, and your customers none.

---------------------------
Why Reverse The Risk?
---------------------------

The main reason that you'll want to reverse the risk is so that you may boost your sales and profits.

Risk Reversal can easily be achieved by providing an Extraordinary Guarantee. An example would be an iron-clad, no-questions-asked money back guarantee.

What Does Financial Freedom Mean To You?

Most working people dream of this thing called financial freedom. It certainly sounds like something we'd all want. But have you ever stopped to really think about what it means? It can mean different things to different people, so before you spend time looking for it, maybe it's worthwhile to examine what the concept really means to you. After all, it's hard to find something if you don't know exactly what it is!

Time and money are inversely related. This means that in most cases, one can be traded for the other. And if you think of how that applies both to your everyday life and to the way business is conducted, it's true. For example, you can spend your own time cleaning your house or mowing your lawn, or pay someone to do it for you, and free up the time for yourself. You can spend time researching on your own, or you can pay some money for someone else's specialized knowledge in that same field.

With that idea in mind, financial freedom may be defined broadly as reaching the point where you no longer have to trade your time for money in order to provide for what you want in life. There are two key phrases in that idea - "no longer have to trade" and "what you want". These are what you have to define for yourself, in order to determine what financial freedom means to you.

Most working people dream of this thing called financial freedom. It certainly sounds like something we'd all want. But have you ever stopped to really think about what it means? It can mean different things to different people, so before you spend time looking for it, maybe it's worthwhile to examine what the concept really means to you. After all, it's hard to find something if you don't know exactly what it is!

Time and money are inversely related. This means that in most cases, one can be traded for the other. And if you think of how that applies both to your everyday life and to the way business is conducted, it's true. For example, you can spend your own time cleaning your house or mowing your lawn, or pay someone to do it for you, and free up the time for yourself. You can spend time researching on your own, or you can pay some money for someone else's specialized knowledge in that same field.

With that idea in mind, financial freedom may be defined broadly as reaching the point where you no longer have to trade your time for money in order to provide for what you want in life. There are two key phrases in that idea - "no longer have to trade" and "what you want". These are what you have to define for yourself, in order to determine what financial freedom means to you.

10 Days to Making More Money

Most of us overcomplicate things. Selling is pretty simple. True we need systems in place, support materials and a contact manager, but when all is said and done what stops us from selling is usually in our head, not in our office.

There are 4 actions when taken everyday for 10 working days with unswerving commitment will increase your sales and put more money in your pocket. Guaranteed!

1 - Set Your Intention There is absolutely no substitute for knowing what you're going after. Research clearly indicates when we set an intention or a goal we subconsciously as well as consciously align our actions and resources to attain that goal. What some folks find as lucky and coincidental is actually the power of intention at work. Few things are as powerful as our thoughts and if our thoughts are not aligned with our actions our thoughts always win. When you set a strong intention it gives your actions a path to follow instead of the other way around.

How many prospects will you contact each day? How many sales will you make? It is important to keep your intention clearly in front of you throughout the day. Don't worry how all the details will come together just keep focused on what you want to accomplish. Intention does not take the place of action, but action alone can often result in activity and no sales.

Most of us overcomplicate things. Selling is pretty simple. True we need systems in place, support materials and a contact manager, but when all is said and done what stops us from selling is usually in our head, not in our office.

There are 4 actions when taken everyday for 10 working days with unswerving commitment will increase your sales and put more money in your pocket. Guaranteed!

1 - Set Your Intention There is absolutely no substitute for knowing what you're going after. Research clearly indicates when we set an intention or a goal we subconsciously as well as consciously align our actions and resources to attain that goal. What some folks find as lucky and coincidental is actually the power of intention at work. Few things are as powerful as our thoughts and if our thoughts are not aligned with our actions our thoughts always win. When you set a strong intention it gives your actions a path to follow instead of the other way around.

How many prospects will you contact each day? How many sales will you make? It is important to keep your intention clearly in front of you throughout the day. Don't worry how all the details will come together just keep focused on what you want to accomplish. Intention does not take the place of action, but action alone can often result in activity and no sales.

Do You Make These 7 Deadly Cash Flow Mistakes

Managing cash flow is every small business owner's most important function. Avoid these seven deadly mistakes to make sure you aren't creating cash flow problems in your business.

1. Using the "Fly By The Seat of Your Pants" Accounting Method.

When tax time rolls around do you find yourself pawing through piles of paper on your desk looking for credit card receipts from your business trip? Or are you upside down digging under the seat of your car trying to figure out where all your gas receipts are? Are you wondering if that coffee stained piece of paper is an invoice from a supplier? Do you have a vague feeling that someone, somewhere owes you money but, you just can't remember who it is? If so, you're probably guilty of operating with the "Fly By the Seat of Your Pants" accounting method.

Using this accounting method has a tremendous impact on your business's cash flow. Unless you have a system to track your business finances, you'll always be operating in the dark and in danger of imitating George of the Jungle as he slams into a tree.

Managing cash flow is every small business owner's most important function. Avoid these seven deadly mistakes to make sure you aren't creating cash flow problems in your business.

1. Using the "Fly By The Seat of Your Pants" Accounting Method.

When tax time rolls around do you find yourself pawing through piles of paper on your desk looking for credit card receipts from your business trip? Or are you upside down digging under the seat of your car trying to figure out where all your gas receipts are? Are you wondering if that coffee stained piece of paper is an invoice from a supplier? Do you have a vague feeling that someone, somewhere owes you money but, you just can't remember who it is? If so, you're probably guilty of operating with the "Fly By the Seat of Your Pants" accounting method.

Using this accounting method has a tremendous impact on your business's cash flow. Unless you have a system to track your business finances, you'll always be operating in the dark and in danger of imitating George of the Jungle as he slams into a tree.

7 Cash Flow Secrets Your Accountant Never Told You

Looking for ways to boost your cash flow? As a small business consultant, I make these recommendations to my cash strapped small business clients:

1. Shoeboxes are for shoes, not business records.

Pardon my candor but, you will never have a successful business if you don’t systematically track your income and expenses, who owes you money, and who you owe money to. This is absolutely crucial. You don’t have to have a big expensive computerized system, although a computer program like QuickBooks certainly does a beautiful job. You can keep track of everything with a pencil and paper if you like. But, you’ve got to track basic information in a systematic manner. Without this vital information your business cannot flourish and your cash flow will always keep you up at night.

2. G