Managing Cash Flow outside your Company hinges on 3 major factors. 1) Your bank and how well it operates for availability of funds, 2) Customers and 3) Vendors.
The bank that you decide to go with to deposit the checks you receive and how long it takes to clear could be a factor when you are opening an account. Also the rates they charge for loans, the collateral that they require, and the reputation of the bank will also be of interest. Asking the hard questions of bank representatives prior to putting your money in them, provides more leverage, than after you have an account there. You may want to make an appointment to interview the banks representatives’ and get commitments or proposals on what they are willing to do for you. Due to the influx of banks, they should be competitive.
Customers are what you are in business for. The more customers you have the more opportunity the company has for growth. Customers can be a problem to you, if they get into a cash crunch, and do not pay for the services in the terms provided. It is very difficult to collect funds when you are strapped for them. Be sure to re-iterate the terms to your customers during economic slowdowns. There is always a risk that they will go to someone else that may be cheaper, or will extend them more credit, but if they can not pay, you are better off not bankrolling them. Be sure you have a customer cash policy and that your employees know it too.
Vendors are your life line between your product and the customer. You need raw materials if you are a manufacturer or a contractor. You need supplies or parts if you perform a service to your customers. Companies are unable to create and supply all of the materials needed to customers on their own. They need vendors to help them put together the finished product. Leveraging the vendors you use may come in handy when you are in a cash crunch. Keeping in touch with vendors to update them on your situation can be very helpful in keeping them as a vendor. When vendors call for money, they do not use the strong arm tactics at first. But if your Bookkeeper continues to give excuses to the vendors, they have no other option than to cut the company off from purchasing. If a company has not planned for best practices in all departments of the firm, it can lead to some unpleasant customers and employees. Be sure you have a vendor policy and know the terms when purchasing products.
Friday, February 27, 2009
Thursday, February 26, 2009
Manage the Cash Flow Inside your Company
If your company is large enough to have employees, you will need to manage the cash flow inside your company. Who handles cash in your company? Cash comes in the form of purchase orders, check writing, c.o.d. deliveries, ordering lunch for the office, or customers, etc. The size of the company and the duties that are delegated to employees will determine who is handling your cash.
If you have budgets for each department regarding spending, it should be easy to monitor the progress. Weekly, Monthly or Quarterly reviews will help you keep the spending in line with the budget. Daily reporting of what has been purchased can be transferred to the companies cash flow forecast for future planning. These ideas can help facilitate a larger purchase of equipment if it becomes necessary.
All companies have cash intensive times when the business cycle changes with the growth cycle. The growth cycle pertains to employment, income, and purchasing of capital equipment to grow a company or a nation. The business cycle follows the growth cycle needing to keep up with growth by spending on the items that will help it grow. Once the buying stops and the growth cycle peaks, the business cycle will follow it down.
Keeping track of who is responsible in your company for cash flow forecasting and actual spending will help the company recognize when the business cycle is slowing. Company CFO’s and Owners need to be aware of the cash flow policies and practices that go on inside their company.
If you have budgets for each department regarding spending, it should be easy to monitor the progress. Weekly, Monthly or Quarterly reviews will help you keep the spending in line with the budget. Daily reporting of what has been purchased can be transferred to the companies cash flow forecast for future planning. These ideas can help facilitate a larger purchase of equipment if it becomes necessary.
All companies have cash intensive times when the business cycle changes with the growth cycle. The growth cycle pertains to employment, income, and purchasing of capital equipment to grow a company or a nation. The business cycle follows the growth cycle needing to keep up with growth by spending on the items that will help it grow. Once the buying stops and the growth cycle peaks, the business cycle will follow it down.
Keeping track of who is responsible in your company for cash flow forecasting and actual spending will help the company recognize when the business cycle is slowing. Company CFO’s and Owners need to be aware of the cash flow policies and practices that go on inside their company.
Wednesday, February 25, 2009
Monitoring the Cash Flow System - Cash is King
A positive cash flow is one of the core values you go into business. You have a trade that you excel at, and want to show the world, as well as make a profit. If you are monitoring your cash flow from the beginning, you will have more confidence when you are selling your product or service.
Company goals should include cash flow forecasts and how to manage that cash. In the last 5 parts of the Cash Flow Methods blog, we have provided ways to look at the Cash Flow and how to make it a goal in your company.
The monitoring process of any goal should be one of measurements. Your daily cash flow report can be used as a measurement of how well you are collecting outstanding monies and how you are spending them. The credit terms you have with vendors and banks can also be a measurement of how well you are paying your bills and the reputation you are creating.
How much debt and how much cash do you have should be checked on a monthly basis. This way you can determine if your note is called by the bank in these economic times, how much could you pay down? One of your cash flow goals may be to look for an investor to supplement for cash and give up some control and shares of the business.
Are you getting discounts from your Vendors? Is a goal of your company to stock up on raw materials for the idle cash you want to invest? If you do not have a large warehouse to stockpile materials, can the vendor hold on to it for you? Can you negotiate that you will pay a portion of the cost to hold it at their warehouse, and as you need it, pay down on the balance?
Are you out there networking with your customers to let them know if you can help them through these troubled times? Before you have a lost leader, you want to be sure you have a product that can sell.
What is the territory that you serve? Do you have to deliver your product to a jobsite? How much are you willing to spend on transportation? What are your actual costs?
Keep in mind that everything you do affects your cash flow. You may want to expand your business, but do not have the capital to do so at this time. Now is a good time to plan how much it will cost and where you will find the cash.
A monitoring system will help you see the goals you set and where they are on the yardstick. You may have your goals listed out in your business plan when you started the business. It is a common idea to have a business plan. The problem with a business plan, is how often have you read it since it was written? Do you write it yourself, or did you buy one of those programs that told you what your goals should be?
At RCM we have a different kind of monitoring system. It takes in your goals, asking questions about those goals and creates a plan to achieve them. Check out our website http://rcmorganize.com
Company goals should include cash flow forecasts and how to manage that cash. In the last 5 parts of the Cash Flow Methods blog, we have provided ways to look at the Cash Flow and how to make it a goal in your company.
The monitoring process of any goal should be one of measurements. Your daily cash flow report can be used as a measurement of how well you are collecting outstanding monies and how you are spending them. The credit terms you have with vendors and banks can also be a measurement of how well you are paying your bills and the reputation you are creating.
How much debt and how much cash do you have should be checked on a monthly basis. This way you can determine if your note is called by the bank in these economic times, how much could you pay down? One of your cash flow goals may be to look for an investor to supplement for cash and give up some control and shares of the business.
Are you getting discounts from your Vendors? Is a goal of your company to stock up on raw materials for the idle cash you want to invest? If you do not have a large warehouse to stockpile materials, can the vendor hold on to it for you? Can you negotiate that you will pay a portion of the cost to hold it at their warehouse, and as you need it, pay down on the balance?
Are you out there networking with your customers to let them know if you can help them through these troubled times? Before you have a lost leader, you want to be sure you have a product that can sell.
What is the territory that you serve? Do you have to deliver your product to a jobsite? How much are you willing to spend on transportation? What are your actual costs?
Keep in mind that everything you do affects your cash flow. You may want to expand your business, but do not have the capital to do so at this time. Now is a good time to plan how much it will cost and where you will find the cash.
A monitoring system will help you see the goals you set and where they are on the yardstick. You may have your goals listed out in your business plan when you started the business. It is a common idea to have a business plan. The problem with a business plan, is how often have you read it since it was written? Do you write it yourself, or did you buy one of those programs that told you what your goals should be?
At RCM we have a different kind of monitoring system. It takes in your goals, asking questions about those goals and creates a plan to achieve them. Check out our website http://rcmorganize.com
Tuesday, February 24, 2009
Daily Cash Flow Report - Cash is King
In order to keep up with your cash, you will want a daily cash flow report. This is part 5 of 6 in the cash flow methods article. Cash balances are the most important item on your balance sheet. Your company needs cash to pay its obligations, payroll, suppliers, loans, taxes, etc. As you sell your product or services, the money that you receive from your customers needs to pay off your expenses. The balance that is left over is your idle cash to invest as stated in part 4.
Daily management decisions are affected by the company’s ability to receive payments from its customers. Short term and long term planning is essential, and descriptions of planning is in part 2. Reporting daily cash balances can assist you in making sure you have a clear plan for collecting and spending the cash you receive.
If you are planning in advance, you will not be swayed by the squeaky wheel. If you are not planning, you will be overwhelmed by suppliers, and banks calling for money. They will also be requesting a schedule on how you will pay the balance down. You do not want to get into this predicament.
By receiving a daily cash flow report from your bookkeeper, or accounting department, you will be able to predict with better accuracy how you will be paying your bills. Wouldn’t it be better for you to call your suppliers, before they call you when it could be too late to make a deal and get raw materials?
Daily management decisions are affected by the company’s ability to receive payments from its customers. Short term and long term planning is essential, and descriptions of planning is in part 2. Reporting daily cash balances can assist you in making sure you have a clear plan for collecting and spending the cash you receive.
If you are planning in advance, you will not be swayed by the squeaky wheel. If you are not planning, you will be overwhelmed by suppliers, and banks calling for money. They will also be requesting a schedule on how you will pay the balance down. You do not want to get into this predicament.
By receiving a daily cash flow report from your bookkeeper, or accounting department, you will be able to predict with better accuracy how you will be paying your bills. Wouldn’t it be better for you to call your suppliers, before they call you when it could be too late to make a deal and get raw materials?
Monday, February 23, 2009
Investing Idle Cash - Cash is King
It may sound strange that this is part 4 of the Cash Flow methods. Who has idle cash today? With all the banks and debt that we are mounting in this country, where is idle cash?
If you are forecasting your cash flow and becoming efficient with your income and expenses, you will find idle cash. It is imperative to have idle cash to survive through the downturn in the business cycle. Businesses do not just continue to go up. There are downturns you will want to plan for.
Short term investing is an important task for the cash flow manager. By investing in Short Term investments, you can borrow back that money when your business is in need of cash, or an opportunity arises that will strengthen your core market. You will be able to take advantage of that opportunity. You will also have the confidence to negotiate better knowing that you have that backing. You will not be beholding to a bank to negotiate an interest rate. You can negotiate that interest rate with your own company. You are in control.
Short term investments would consist of money market funds, Treasury bills, commercial paper, and certificates of deposit. Another option would be to pay down any loans, or reduce accounts payable if you are receiving a discount.
Money market funds would be the most liquid, and right now they are not giving a high rate of interest. They are safe and very liquid right now. Treasury bills, commercial paper and certificates of deposit will need more time to mature and are not as liquid. When starting your idle cash program, it is best to use a money market account with a sweep option with your bank to capitalize on receiving interest.
Before you can invest that idle cash, you need to find it. By having a cash flow forecast, you can anticipate that idle cash and start looking for where you want to invest it, when you see it in your checking account.
If you are forecasting your cash flow and becoming efficient with your income and expenses, you will find idle cash. It is imperative to have idle cash to survive through the downturn in the business cycle. Businesses do not just continue to go up. There are downturns you will want to plan for.
Short term investing is an important task for the cash flow manager. By investing in Short Term investments, you can borrow back that money when your business is in need of cash, or an opportunity arises that will strengthen your core market. You will be able to take advantage of that opportunity. You will also have the confidence to negotiate better knowing that you have that backing. You will not be beholding to a bank to negotiate an interest rate. You can negotiate that interest rate with your own company. You are in control.
Short term investments would consist of money market funds, Treasury bills, commercial paper, and certificates of deposit. Another option would be to pay down any loans, or reduce accounts payable if you are receiving a discount.
Money market funds would be the most liquid, and right now they are not giving a high rate of interest. They are safe and very liquid right now. Treasury bills, commercial paper and certificates of deposit will need more time to mature and are not as liquid. When starting your idle cash program, it is best to use a money market account with a sweep option with your bank to capitalize on receiving interest.
Before you can invest that idle cash, you need to find it. By having a cash flow forecast, you can anticipate that idle cash and start looking for where you want to invest it, when you see it in your checking account.
Friday, February 20, 2009
Cash Flow Forecasting - Cash is King
This is part 3 of our 6 steps to Cash Flow Methods.
Cash flow forecasting is the art of actually putting down on paper, or in a spreadsheet, what you think you are going to get in this day, week, month, quarter, or year, and what you will pay out of those funds. It is a difficult task if you have not done it before. It takes some time to review what you have spent, and what you think you will spend. Spending is secondary to what you are going to get in.
Do you know what your sales will be this month? Do you know if you have any large bills coming due? Do you need more or updated equipment to run your business? Is it getting time for Spring cleaning?
Without an adequate Cash Flow Forecast, you could find yourself with overdrafts, deficiencies, late payments and problems with your vendors. If you have taken out any loans to run your business, you will need to add them to your forecast so you can make the scheduled payments and keep your credit intact.
You need to be thinking short term and long term regarding your finances. The short term keeps you abreast of what is happening now, but the long term can show you where you will need to either get more sales, or move payments around. You are being proactive when examining this kind of detail.
When do you have time to do a Cash Flow Forecast? Once you get one in a spreadsheet, you can do a weekly cash flow listing and then put in the actual figures that occurred. This will help you see if you are running into a problem, before the problem hits.
RCM does cash flow forecasting for you. We can get you set up, so you can just enter in figures that you feel are correct. Then as the weeks go by, you will get a clearer picture of your business needs. Sign up for our free report, and we will send you a weekly tip sheet to keep you clear about what you need.
A Penny Saved is Power.
Cash flow forecasting is the art of actually putting down on paper, or in a spreadsheet, what you think you are going to get in this day, week, month, quarter, or year, and what you will pay out of those funds. It is a difficult task if you have not done it before. It takes some time to review what you have spent, and what you think you will spend. Spending is secondary to what you are going to get in.
Do you know what your sales will be this month? Do you know if you have any large bills coming due? Do you need more or updated equipment to run your business? Is it getting time for Spring cleaning?
Without an adequate Cash Flow Forecast, you could find yourself with overdrafts, deficiencies, late payments and problems with your vendors. If you have taken out any loans to run your business, you will need to add them to your forecast so you can make the scheduled payments and keep your credit intact.
You need to be thinking short term and long term regarding your finances. The short term keeps you abreast of what is happening now, but the long term can show you where you will need to either get more sales, or move payments around. You are being proactive when examining this kind of detail.
When do you have time to do a Cash Flow Forecast? Once you get one in a spreadsheet, you can do a weekly cash flow listing and then put in the actual figures that occurred. This will help you see if you are running into a problem, before the problem hits.
RCM does cash flow forecasting for you. We can get you set up, so you can just enter in figures that you feel are correct. Then as the weeks go by, you will get a clearer picture of your business needs. Sign up for our free report, and we will send you a weekly tip sheet to keep you clear about what you need.
A Penny Saved is Power.
Thursday, February 19, 2009
Cash Flow Planning - Cash is King
Cash Flow Planning is essential in maintaining a business. Cash is King. The objective in planning what revenue is coming in and what must be paid out in the same time frame is to help you establish some payment rules. This is Step 2 in our series of Cash Flow methods.
You want to be sure that you can handle the payments that come expectedly and unexpectedly. Insurance renewal is always a big payment, and if you hadn’t planned on when that payment would be due, you will be scrambling to find the money. Putting a payment on a credit card may buy you some time and get you some reward points, but it can’t hold out indefinitely.
When the insurance payments are done for the year, you get about three months before the renewal premium is due. Do you continue to put aside that payment, so that you will have a build up of cash, or do you find that you need to spend it on something else. We will always spend money if it is in our pocket and not assigned to anything.
When I was growing up, my Father used envelopes when he cashed his check and wrote on the outside of the envelope how much money needed to go in each pay period. He was very good at making sure the money was there. He was disciplined to keep the cash in the envelope. Now that might have worked for him, and I believe you need to be disciplined to do that, and I was not so fortunate. I would borrow the money from one of the envelopes, and somehow it would never get back in there. Even if I told myself it would. Then when the money was needed, I have to rob another envelope to pay the bill.
Having a plan and a savings or money market account will save you from taking out of an envelope when you shouldn’t. You will also get interest on the money in the money market account. I agree that it is not much right now, but it grows while you are sleeping.
Making a cash flow plan will enable you to see where you are headed. At RCM, that is what we provide in our 7 step Cash is King Process for ongoing companies. Our website is at http://rcmorganize.com
You want to be sure that you can handle the payments that come expectedly and unexpectedly. Insurance renewal is always a big payment, and if you hadn’t planned on when that payment would be due, you will be scrambling to find the money. Putting a payment on a credit card may buy you some time and get you some reward points, but it can’t hold out indefinitely.
When the insurance payments are done for the year, you get about three months before the renewal premium is due. Do you continue to put aside that payment, so that you will have a build up of cash, or do you find that you need to spend it on something else. We will always spend money if it is in our pocket and not assigned to anything.
When I was growing up, my Father used envelopes when he cashed his check and wrote on the outside of the envelope how much money needed to go in each pay period. He was very good at making sure the money was there. He was disciplined to keep the cash in the envelope. Now that might have worked for him, and I believe you need to be disciplined to do that, and I was not so fortunate. I would borrow the money from one of the envelopes, and somehow it would never get back in there. Even if I told myself it would. Then when the money was needed, I have to rob another envelope to pay the bill.
Having a plan and a savings or money market account will save you from taking out of an envelope when you shouldn’t. You will also get interest on the money in the money market account. I agree that it is not much right now, but it grows while you are sleeping.
Making a cash flow plan will enable you to see where you are headed. At RCM, that is what we provide in our 7 step Cash is King Process for ongoing companies. Our website is at http://rcmorganize.com
Wednesday, February 18, 2009
Cash Flow Efficiences - Cash is King
Cash flow efficiences is a big word for measuring a company's liquidity. Cash is King in todays economy, so finding ways to be efficient with each dollar is on the top priority of business owners' minds. If you are a small to mid-size company, as the owner you are the cash manager. You are concerned about when the dollars are coming in, and how they will be spent.
6 different medthods to help you keep on top of your cash flow will be discussed over the next 5 days. Today we will concentrate on getting your customers to pay you on time or up front. Cash management involves making sure the products that you are sending out are getting paid for by your customer. Some customers who are not being watched, can rack up a pretty high receivable before you try to collect the money. They have reasons - they have policies, but in a small business, you can not wait for 90 days to get paid, if you are having to pay your suppliers in 30. You need to be sure there is a direct connection between the sales payment and the supplies payment.
Review your customers open balances, and see how much did it cost you to deliver the finished goods. Can you take the funds from another customer to pay the vendors, until that customer can pay you? Do you know how much it is costing your business by not collecting the money within your terms? Can you afford to drop some customers that do not pay regularly? Do you have someone calling those customers frequently to be sure you are on the getting paid list? Does that customer have cash flow problems of their own?
Concentrating on your customer base and who is paying you, is your first priority of the six steps. Find vendors that may deliver the same materials for less cost, or different payment terms that fit in with your customer base. Do you accept credit cards? Can you offer a cash discount for early payment? Can you give an even bigger discount if they paid by cash, not check or credit card?
Analyzing your cash flow system is what RCM does on a day to day basis. We evaluate your customers and their payment habits to help you form a better relationship between your customer and your supplier.
Sign up for the Cash is King, Build Your Kingdom report and receive weekly tips regarding how your business can survive in this economy.
6 different medthods to help you keep on top of your cash flow will be discussed over the next 5 days. Today we will concentrate on getting your customers to pay you on time or up front. Cash management involves making sure the products that you are sending out are getting paid for by your customer. Some customers who are not being watched, can rack up a pretty high receivable before you try to collect the money. They have reasons - they have policies, but in a small business, you can not wait for 90 days to get paid, if you are having to pay your suppliers in 30. You need to be sure there is a direct connection between the sales payment and the supplies payment.
Review your customers open balances, and see how much did it cost you to deliver the finished goods. Can you take the funds from another customer to pay the vendors, until that customer can pay you? Do you know how much it is costing your business by not collecting the money within your terms? Can you afford to drop some customers that do not pay regularly? Do you have someone calling those customers frequently to be sure you are on the getting paid list? Does that customer have cash flow problems of their own?
Concentrating on your customer base and who is paying you, is your first priority of the six steps. Find vendors that may deliver the same materials for less cost, or different payment terms that fit in with your customer base. Do you accept credit cards? Can you offer a cash discount for early payment? Can you give an even bigger discount if they paid by cash, not check or credit card?
Analyzing your cash flow system is what RCM does on a day to day basis. We evaluate your customers and their payment habits to help you form a better relationship between your customer and your supplier.
Sign up for the Cash is King, Build Your Kingdom report and receive weekly tips regarding how your business can survive in this economy.
Tuesday, February 17, 2009
U.S. Spending Habits
According to the U.S. Department of Labor Consumer Expenditure Survey, the average amounts consumers spend on different categories are the following:
Savings 10%
Healthcare 6%
Entertainment 6%
Food/Beverage 15%
Transportation 20%
Housing 33%
Clothing 5%
Misc. 5%
I was surprised when I saw the savings rate at 10%. I had heard that we didn't save very much as a nation, The BEA, or Bureau of Economic Analysis is showing the savings rate of disposable income at near 3%.
Saving is a very good habit to get in to. Developing a budget first to find out how much you can save is a good first step. Looking at where you spend most of your money, and find out if there is a less expensive way to get the same items, or if it is your house, you may be able to qualify for re-financing as the stimulus bill has passed. If you get money as gifts, try to save that instead of buying the latest gadget that is on the market. The price of new technology does come down eventually, and then if you still want it, you could get it. You might find that you don't really need it after all.
Set some savings goals from the budget you created, in order to motivate you to save the money. Seeing your savings account grow, will be as rewarding as buying the new Iphone. Check out your local banks and credit unions for money market rates and CD's. You could transfer money that you saved to those investments that will provide more interest.
This is no get rich quick scheme. You will see your hard work pay off in your bank statement.
Savings 10%
Healthcare 6%
Entertainment 6%
Food/Beverage 15%
Transportation 20%
Housing 33%
Clothing 5%
Misc. 5%
I was surprised when I saw the savings rate at 10%. I had heard that we didn't save very much as a nation, The BEA, or Bureau of Economic Analysis is showing the savings rate of disposable income at near 3%.
Saving is a very good habit to get in to. Developing a budget first to find out how much you can save is a good first step. Looking at where you spend most of your money, and find out if there is a less expensive way to get the same items, or if it is your house, you may be able to qualify for re-financing as the stimulus bill has passed. If you get money as gifts, try to save that instead of buying the latest gadget that is on the market. The price of new technology does come down eventually, and then if you still want it, you could get it. You might find that you don't really need it after all.
Set some savings goals from the budget you created, in order to motivate you to save the money. Seeing your savings account grow, will be as rewarding as buying the new Iphone. Check out your local banks and credit unions for money market rates and CD's. You could transfer money that you saved to those investments that will provide more interest.
This is no get rich quick scheme. You will see your hard work pay off in your bank statement.
Monday, February 16, 2009
As Soon As.....
I heard As Soon As.... when I was in a bank recently. The teller asked the customer if she wanted to open a savings account. The customer was apparently cashing a check for cash. The customer replied As Soon As I get my tax refund I will open one, with a laugh. She then stated "Don't I need $500 to open up the Account?" The Teller replied that you can open the account for $25.00, and you have 30 days to fund it up to $400.00. The customer again replied "As Soon As"....
Unfortunately, the customer may never save the tax refund. Without a real plan of action, action will not occur. A core value of "Saving" may never have been instilled in this customer, when she was young, or as she is getting older. Accountability to yourself, and others can expose your inner thoughts and feelings. Maybe she wants to spend the tax refund on something else, and doesn't want to admit that to the teller in a bank. She may have debts that need to be paid, but doesn't want to reveal that either.
Don't get caught in "As Soon As...." thinking. The time is now to do the right thing. You may not get another chance. The thought of regret for not doing something you said, may cause you to do other things that are not good for you.
How do you get away from "As Soon As....." thinking. Take time to plan your day. Take time to say to yourself, what is it that I want for myself and my loved ones today. Maybe you can only do for yourself, that is okay. You must start somewhere. YOU MUST START. Do not get tossed around by whatever comes your way. Make your life the way you want. Nothing is impossible. Keep an open mind. Write down what you want, and then take time to find a way to get it.
At RCM, we coach small business owners, who have gotten caught up in the daily grind of business to step back, and use the 4 R's of Accountability. This method is not just for business, it is for personal lives too. Enjoy the time it takes to plan your life. Do not look at it like it is a chore. Many great thinkers and successful people have taken the time to reflect on your roles, review your action steps, reiterate the goals you have to others and yourself during the day, and reward yourself for taking the action, not just completing a task.
Turn As Soon As into I am going to do it TODAY.
Unfortunately, the customer may never save the tax refund. Without a real plan of action, action will not occur. A core value of "Saving" may never have been instilled in this customer, when she was young, or as she is getting older. Accountability to yourself, and others can expose your inner thoughts and feelings. Maybe she wants to spend the tax refund on something else, and doesn't want to admit that to the teller in a bank. She may have debts that need to be paid, but doesn't want to reveal that either.
Don't get caught in "As Soon As...." thinking. The time is now to do the right thing. You may not get another chance. The thought of regret for not doing something you said, may cause you to do other things that are not good for you.
How do you get away from "As Soon As....." thinking. Take time to plan your day. Take time to say to yourself, what is it that I want for myself and my loved ones today. Maybe you can only do for yourself, that is okay. You must start somewhere. YOU MUST START. Do not get tossed around by whatever comes your way. Make your life the way you want. Nothing is impossible. Keep an open mind. Write down what you want, and then take time to find a way to get it.
At RCM, we coach small business owners, who have gotten caught up in the daily grind of business to step back, and use the 4 R's of Accountability. This method is not just for business, it is for personal lives too. Enjoy the time it takes to plan your life. Do not look at it like it is a chore. Many great thinkers and successful people have taken the time to reflect on your roles, review your action steps, reiterate the goals you have to others and yourself during the day, and reward yourself for taking the action, not just completing a task.
Turn As Soon As into I am going to do it TODAY.
Friday, February 13, 2009
The Price of Unanticipated fees
Legal fees can become an unanticipated expense to your bottom line. Especially when you are emotional about the matter. You pay for emotional urgency to any lawsuit. Legal services are there to help you stay within the law when you have a new business idea or an action that may come back to bite you.
Before you jump into the next acquisition, or agreement, check to see if there is a real need for the lawyer at this time. Are you able to handle the objections and questions that come up in negotiations without having a lawyer? Can you work out some of the details first, then just have the lawyer review it. It might save you time and money.
Before you jump into the next acquisition, or agreement, check to see if there is a real need for the lawyer at this time. Are you able to handle the objections and questions that come up in negotiations without having a lawyer? Can you work out some of the details first, then just have the lawyer review it. It might save you time and money.
Thursday, February 12, 2009
Food Allergies can cost your business money
Entrepreneurs are rarely sick. This comes from a book - The Entrepreneurial life, 1983, by A. David Silver. Psychological and physical profiles of these people, show that they can't afford to be sick. They are constantly thinking about their business, how to make it grow, how to achieve their goals, and how to keep down the competition.
When food allergies enter the picture, the thinking about growth can turn to anger, frustration and they may not know where it came from. Food allergies are not talked about much, but there are a lot of them out there. A blog that discusses allergies everyday is http://allergiesonyourplate.com/blog Food can affect more than just digestion, it affects the brain and how we put two and two together. Some days when you just can't think, write down what you ate. You might find that the best days you have are when you are eating a certain food, like fruit in the morning. That would help digestion.
Food allergies of the boss, affect the employees. Employees don't always know why they are having a bad day. Sure, they can surmise it to something that happened, but why did that something happen? Reviewing and looking into what you are eating, could be a life saver.
Food allergies can affect your customers and how you communicate with them, if you are feeling the affects of the allergy. You may not call someone back because you are irritable, but waiting may cost you the business.
Take time to review food and how it affects your body and mind. That is what the http://allergiesonyourplate.com/blog is all about. It just might save you money.
When food allergies enter the picture, the thinking about growth can turn to anger, frustration and they may not know where it came from. Food allergies are not talked about much, but there are a lot of them out there. A blog that discusses allergies everyday is http://allergiesonyourplate.com/blog Food can affect more than just digestion, it affects the brain and how we put two and two together. Some days when you just can't think, write down what you ate. You might find that the best days you have are when you are eating a certain food, like fruit in the morning. That would help digestion.
Food allergies of the boss, affect the employees. Employees don't always know why they are having a bad day. Sure, they can surmise it to something that happened, but why did that something happen? Reviewing and looking into what you are eating, could be a life saver.
Food allergies can affect your customers and how you communicate with them, if you are feeling the affects of the allergy. You may not call someone back because you are irritable, but waiting may cost you the business.
Take time to review food and how it affects your body and mind. That is what the http://allergiesonyourplate.com/blog is all about. It just might save you money.
Wednesday, February 11, 2009
Clutter costing you time
Clutter in business can be found in different ways: Unwanted emails, faxes, telephone solicitation that does not pertain to your industry. Not having a system for filing and retrieving papers.
Time costs you money. Where do you want to spend your time? Looking for a file that is urgent that may have only been important a month ago, but you didn't have a retrieval system, so it is lost, when you need it the most?
Another clutter and time waster is email that does not pertain to your business. Somehow they got your email address and now you have to sift through looking to see if you got anything important. Like and order, or a request for quote.
The unwanted vacation and healthcare faxes that cost you the phone call, the paper and the ink. Hopefully, you have a bin next to the fax for junk faces, so you can use the opposite side of the paper for a fax cover. When you are in a hurry and don't have time to print one out, or can't find the pre-printed ones that should be by the fax. You may have a folder that says fax cover sheets, but when you reach in, it is empty.
Save time, save money, create a way to handle clutter before it becomes a problem. If you have a clutter issue and want help, write a comment, and I will give you some suggestions.
Time costs you money. Where do you want to spend your time? Looking for a file that is urgent that may have only been important a month ago, but you didn't have a retrieval system, so it is lost, when you need it the most?
Another clutter and time waster is email that does not pertain to your business. Somehow they got your email address and now you have to sift through looking to see if you got anything important. Like and order, or a request for quote.
The unwanted vacation and healthcare faxes that cost you the phone call, the paper and the ink. Hopefully, you have a bin next to the fax for junk faces, so you can use the opposite side of the paper for a fax cover. When you are in a hurry and don't have time to print one out, or can't find the pre-printed ones that should be by the fax. You may have a folder that says fax cover sheets, but when you reach in, it is empty.
Save time, save money, create a way to handle clutter before it becomes a problem. If you have a clutter issue and want help, write a comment, and I will give you some suggestions.
Tuesday, February 10, 2009
Franchise Strategy
If you have the money to pay the franchise setup fee, you could use franchising as a finance strategy.
Franchises were created with the fast food industry. Companies who wanted to give the same service and purchase the same type of raw materials, and to have sources for both, created the franchise idea.
For a one time fee, monthly royalty payments on sales, the company gets branding and visability that could take years to obtain. If you have a highly visible and profitable company, you could receive those royalty payments to add to your cash flow. By turning into a franchise, by thinking out of the box, you could create passive income for your company and yourself.
Working on best practices and accountability systems are the first steps in creating a franchise that could turn out to be your next biggest customer.
At RCM, we specialize in best practices and accountability systems to get your franchise idea started. Go to http://www.rcmorganize.com and sign up for a free report to get you started.
Franchises were created with the fast food industry. Companies who wanted to give the same service and purchase the same type of raw materials, and to have sources for both, created the franchise idea.
For a one time fee, monthly royalty payments on sales, the company gets branding and visability that could take years to obtain. If you have a highly visible and profitable company, you could receive those royalty payments to add to your cash flow. By turning into a franchise, by thinking out of the box, you could create passive income for your company and yourself.
Working on best practices and accountability systems are the first steps in creating a franchise that could turn out to be your next biggest customer.
At RCM, we specialize in best practices and accountability systems to get your franchise idea started. Go to http://www.rcmorganize.com and sign up for a free report to get you started.
Monday, February 9, 2009
Prepaid Subscriptions
Generate cash flow by providing subscriptions to Newsletters, Videos, Consulting Services, Audio Interviews, Audio Teachings, Industry Magazine, Monthly Instruction Report.
Leverage your core business to customers by providing information that your customers can benefit by subscribing to them. Your customers trust you, so they will be interested in how you can enhance their business.
By providing educational material for a fee, you can increase your cash flow and keep in touch with your clients. Email letters are plentiful and sometimes daunting to read, print and file, (even if you do it electronically). Most inboxes have numerous email in them due to overload, and taking the time to separate them seems to be at the bottom of the important and not urgent pile. A mailed newsletter or CD would help your clients separate you out from your competition.
Keep in contact with your customers by providing prepaid subscription items on a regular basis.
I heard on the www.blogtalkradio.com/theaffiliatereporter that you can use http://www.elance.com/ to find a professional to help you write what you need. The blogtalkradio website can help you have a radio program and a podcast to send to your customers.
If you have other ideas, please comment here. Thanks
Leverage your core business to customers by providing information that your customers can benefit by subscribing to them. Your customers trust you, so they will be interested in how you can enhance their business.
By providing educational material for a fee, you can increase your cash flow and keep in touch with your clients. Email letters are plentiful and sometimes daunting to read, print and file, (even if you do it electronically). Most inboxes have numerous email in them due to overload, and taking the time to separate them seems to be at the bottom of the important and not urgent pile. A mailed newsletter or CD would help your clients separate you out from your competition.
Keep in contact with your customers by providing prepaid subscription items on a regular basis.
I heard on the www.blogtalkradio.com/theaffiliatereporter that you can use http://www.elance.com/ to find a professional to help you write what you need. The blogtalkradio website can help you have a radio program and a podcast to send to your customers.
If you have other ideas, please comment here. Thanks
Friday, February 6, 2009
Macy's Crunch
I heard on Tuesday, Feb. 3rd, that 5,100 employees at Macy's are on the chopping block due to slower sales and less profitability.
The United States has become a conglomerate nation. Companies who saw competition as a way to add profit to their bottom line by purchasing them.
In the 1980's Companies were not just buying their competition, or a product that would increase their market share. They bought companies that were not part of their Industry. Quaker Oats bought Brookstone, Eyelab and Jos. A. Bank Clothiers. They later sold them. Avon Products bought Tiffany, Mallenkuot Chemical and Foster Labs. Sara Lee bought Electrolux, then spun it off.
As we continue to go through the economic slowdown, some companies who cannot sustain the expenses that increased during the boom years in the 1990's (mostly the stock price, if the company was public) will be open to Raiders who will leverage the brand to create cash flow and profit.
The United States has become a conglomerate nation. Companies who saw competition as a way to add profit to their bottom line by purchasing them.
In the 1980's Companies were not just buying their competition, or a product that would increase their market share. They bought companies that were not part of their Industry. Quaker Oats bought Brookstone, Eyelab and Jos. A. Bank Clothiers. They later sold them. Avon Products bought Tiffany, Mallenkuot Chemical and Foster Labs. Sara Lee bought Electrolux, then spun it off.
As we continue to go through the economic slowdown, some companies who cannot sustain the expenses that increased during the boom years in the 1990's (mostly the stock price, if the company was public) will be open to Raiders who will leverage the brand to create cash flow and profit.
Thursday, February 5, 2009
Identifying your Principal Strengths
What is your Company's principal strength? Have you ever done a S.W.O.T. analysis on your Company? S.W.O.T. stands for Strengths, Weaknesses, Opportunities and Threats. You may have done this for your business plan, which you may or may not have looked at lately. The S.W.O.T. analysis changes with Industry and Personal changes.
The strengths reflect what your Company can do with the product sales, branding, competition, cash flow, best practices, accountability systems, etc.
These core principal strengths will assist you in leveraging your strengths against your weaknesses. Your focus can be directed in promoting those strengths to cusotmers, creating a niche market that you can capitalize on.
Take time to review your Company's S.W.O.T. characteristics and concentrate on your strengths and opportunities while making a plan to remove weaknesses and threats.
The strengths reflect what your Company can do with the product sales, branding, competition, cash flow, best practices, accountability systems, etc.
These core principal strengths will assist you in leveraging your strengths against your weaknesses. Your focus can be directed in promoting those strengths to cusotmers, creating a niche market that you can capitalize on.
Take time to review your Company's S.W.O.T. characteristics and concentrate on your strengths and opportunities while making a plan to remove weaknesses and threats.
Wednesday, February 4, 2009
Networking with the Competition
To continue with the theme of Keeper of the Jewels, networking with the competition mindset may help you to learn more about your business tactics.
Some industries have associations that solicit competitive firms to join. The association provides speakers at their monthly meetings to assist the entire industry. These associations also work with Legislators regarding laws that affect the industry. What you do with that information is up to you.
Affiliate Marketing on the internet can be applied to your industry. If you are new to Affiliate Marketing, please visit www.blogtalkradio.com/theaffiliatereporter to listen to how you can participate in this cash generating system.
If you provide a service that one of your competitors do not, this could be a valuable and profitable way to network with the competition. When writing your business plan, one of the sections you wrote about is the competition. Use that information to your advantage by networking with your competition. If you didn't write a business plan and need help to get a competitive advantage, write to us at rcmorganize@comcast.net.
Some industries have associations that solicit competitive firms to join. The association provides speakers at their monthly meetings to assist the entire industry. These associations also work with Legislators regarding laws that affect the industry. What you do with that information is up to you.
Affiliate Marketing on the internet can be applied to your industry. If you are new to Affiliate Marketing, please visit www.blogtalkradio.com/theaffiliatereporter to listen to how you can participate in this cash generating system.
If you provide a service that one of your competitors do not, this could be a valuable and profitable way to network with the competition. When writing your business plan, one of the sections you wrote about is the competition. Use that information to your advantage by networking with your competition. If you didn't write a business plan and need help to get a competitive advantage, write to us at rcmorganize@comcast.net.
Tuesday, February 3, 2009
Keeper of the Jewels
A business owners mindset of "Keeper of the Jewels" may inspire them to view their company as a diamond in the rough, and find ways to polish their cash flow techniques to make their company shine.
How owners and CEO's view their company in their industry can filter to their workforce. The image that the owners' present to their customers needs to be upbeat and believable. They need to project that there are solutions and they are presenting those solutions to their customers.
Owners who have a "Keeper of the Jewels" mindset will search for ways to build a strong plan for their core business. They will plan for the downside, having contingency plans to get them through the tough times.
Owners who forecast their cash flow can see ahead of time if they need to barter for some work done, or subcontract the work out instead of paying payroll and payroll taxes. The Keeper of the Jewels mindset will help you think out of the box for your company.
How owners and CEO's view their company in their industry can filter to their workforce. The image that the owners' present to their customers needs to be upbeat and believable. They need to project that there are solutions and they are presenting those solutions to their customers.
Owners who have a "Keeper of the Jewels" mindset will search for ways to build a strong plan for their core business. They will plan for the downside, having contingency plans to get them through the tough times.
Owners who forecast their cash flow can see ahead of time if they need to barter for some work done, or subcontract the work out instead of paying payroll and payroll taxes. The Keeper of the Jewels mindset will help you think out of the box for your company.
Sunday, February 1, 2009
Payables Crunch
Who would you pay first in business when money is in short supply? The order of prime importance would be taxes, loans and employees.
there are all kinds of taxes - income and wage taxes, sales taxes, RE taxes (if you own a building), business priviledge taxes, annual tax to states you are licensed in. Scheduling tax payments early enough will hellp you see what you owe and how to schedule these payments. Do not wait until the letters come in the mail to do something about it.
RCM can hellp you forecast. One product we have is a Cash is King Checkup system that will help you see how and when you can make these payments, so you won't be blindsided.
Loan payments are very important to make on time. Depending on your cash flow you may choose to make payments to financial institutions earlier than is required. If your interest is based on daily compounding, then paying early could save you interest on the life of the loan. The bank will be able to provide credit history in your favor for new credit that you apply for.
Employees are the life blood of your company. Sure, you could try to to it all during an economic downturn, but where are you going to find these employees once the economy turns. And do you know when that will be? Employees can help you do the tasks that need to be done, while you are investing your time to finding more and faster paying customers.
there are all kinds of taxes - income and wage taxes, sales taxes, RE taxes (if you own a building), business priviledge taxes, annual tax to states you are licensed in. Scheduling tax payments early enough will hellp you see what you owe and how to schedule these payments. Do not wait until the letters come in the mail to do something about it.
RCM can hellp you forecast. One product we have is a Cash is King Checkup system that will help you see how and when you can make these payments, so you won't be blindsided.
Loan payments are very important to make on time. Depending on your cash flow you may choose to make payments to financial institutions earlier than is required. If your interest is based on daily compounding, then paying early could save you interest on the life of the loan. The bank will be able to provide credit history in your favor for new credit that you apply for.
Employees are the life blood of your company. Sure, you could try to to it all during an economic downturn, but where are you going to find these employees once the economy turns. And do you know when that will be? Employees can help you do the tasks that need to be done, while you are investing your time to finding more and faster paying customers.
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