Free daily tips, information, advice and ideas
to help you better manage your small business.
Money is always a problem in small business. There's never enough.
So, let's see. Your business plan is in place. Things are moving in the right direction. But the business is not generating cash as fast as you would like to grow.
You need other people's money. The usual sources like banks are not interested. You don't have enough experience in what you're doing. Your business is not old enough. Whatever.
Example: Judy was renting a plot from a farmer. She specialized in growing greens and veggies for local markets. She had built up quite a clientele for her farm fresh produce, and she needed to expand. Searching around the area, she found a small farm for sale. The problem was money. Judy did not have enough cash for a down payment, and even if she did, no one would approve the loan. On the back of the property she noticed there was a fairly large grove of black walnut trees. It took some negotiating, but Judy managed to buy the farm. She knew that walnut wood went for big bucks, and she got a sizable commitment from a sawmill to buy the walnut trees. Then she got a commitment from the property owner to sell at an agreed price. With all this in hand, she approached a private lender who agreed to advance the funds and hold the mortgage on the property. It was a matter of bringing all the pieces together and closing the deal.
Example: Leland was a young man in the landscaping business. One of his on-going jobs was to take care of the grounds of a small apartment building. The owner of the property was impressed with Leland's work and asked if he wanted to buy the building. Leland jumped at the chance, but he told the owner that he could not afford it. Maybe yes, maybe no, said the owner. He showed Leland how to take over the property with two mortgages that the owner was willing to hold. They put in place a long-term large first mortgage at a normal interest rate and a short-term second mortgage at a much higher rate. Income from the rent rolls covered both monthly payments. If Leland didn't make the payments, the owner would take back the property and put it up for sale to someone else. Leland is still a landscaper, but he owns the building. The second mortgage is paid off, and he's making payments on the longer-term mortgage.
Example: Robert is in the home improvements business. He worked with his customers to finance each job. He required one-third payment upfront, one-third when an agreed-to milepost was reached, and the final one-third when the job was completed. This method can be used in other types of businesses as well. Just remember that the profit comes in that last payment.
Using other peoples' money in business is quite common. It takes many forms, but the mechanism or concept is pretty much the same. Put it to work and home in on the specific arrangement that will help you start-up, grow and expand.
When your supplier delivers and hands you an invoice dated 30 or 60 days hence, you are using other peoples' money. It is a matter of trust that you will pay your bills on time. This simple concept of trust is at the heart of using other peoples' money.
Friday, March 27, 2015
Thursday, March 26, 2015
Reaching out
Free daily tips, information, advice and ideas
to help you better manage your small business.
Managing your business means you must reach out to the community. Stay in touch with those you serve, and tap into new streams of clients and customers.
Today, reaching out has changed. Newspaper and phone book ads are no longer as effective as they once were. Ads in specialty publications, however--especially those that are locally directed--can reach out into those new communities you want to serve.
But social media has provided a quantum shift in how you reach out. Facebook, Twitter, LinkedIn, Pinterest, Instagram and others get you in front of eyeballs that no longer read newspapers and phone book ads. These are easy to use and, for the most part, free.
A Facebook page is a very effective way to reach out and keep in touch. You should be posting pictures frequently of your creations--artists and artisans, bakers and chefs, landscapers and more. Shop owners can post pictures of racks of clothing, cases of jewelry, newly arrived goods, cones of yogurt and squares of chocolate. And anyone can post photos of street scenes, parades, car shows, flea markets, and your newly decorated window.
There's more--think selfies and apps. Selfies can be fun. Pictures of yourself can be entertaining and remind clients and customers who you are and that you are there for them. Setting up your own app can make it easy for hungry customers to order ahead and have their meals ready when they arrive at your restaurant.
Emails sent to your regulars can be effective in announcing upcoming sales--and other events. Too many emails can be a turn-off, however. Emails should be about your client's and customer's interests, not yours. Keep it brief.
Blogs and newsletters can be effective in certain markets. Blogs can be informative and descriptive. They can announce new developments in your industry. A health food store owner can discuss natural foods and the nutritional value of eating fresh. A wellness expert can explain how pain can be managed, how to lose weight, and the value of exercise on body systems.
A blog or newsletter is not a personal diary for you. It is feeding the thirst out there for the knowledge you have. Blogs and newsletters posted on your website are marketing tools, and they concentrate on subjects the reader is interested in. Attorneys, accountants, consultants, medical experts and others can explain in depth the ways in which they can help clients. And this attracts referrals.
Keep in touch, but do it smart. You don't want to come across as a nuisance. Keeping in touch with short reminders, colorful and fun pictures, and clear explanations of some aspect of your business can go a long way to get you growing.
Done right, your clients and customers will appreciate being reminded of who you are and what you can do for them. And they will refer others to you.
To grow, you want to extend your reach in the communities you want to serve. Keeping in touch using social media is a valuable method to have in your toolbox.
to help you better manage your small business.
Managing your business means you must reach out to the community. Stay in touch with those you serve, and tap into new streams of clients and customers.
Today, reaching out has changed. Newspaper and phone book ads are no longer as effective as they once were. Ads in specialty publications, however--especially those that are locally directed--can reach out into those new communities you want to serve.
But social media has provided a quantum shift in how you reach out. Facebook, Twitter, LinkedIn, Pinterest, Instagram and others get you in front of eyeballs that no longer read newspapers and phone book ads. These are easy to use and, for the most part, free.
A Facebook page is a very effective way to reach out and keep in touch. You should be posting pictures frequently of your creations--artists and artisans, bakers and chefs, landscapers and more. Shop owners can post pictures of racks of clothing, cases of jewelry, newly arrived goods, cones of yogurt and squares of chocolate. And anyone can post photos of street scenes, parades, car shows, flea markets, and your newly decorated window.
There's more--think selfies and apps. Selfies can be fun. Pictures of yourself can be entertaining and remind clients and customers who you are and that you are there for them. Setting up your own app can make it easy for hungry customers to order ahead and have their meals ready when they arrive at your restaurant.
Emails sent to your regulars can be effective in announcing upcoming sales--and other events. Too many emails can be a turn-off, however. Emails should be about your client's and customer's interests, not yours. Keep it brief.
Blogs and newsletters can be effective in certain markets. Blogs can be informative and descriptive. They can announce new developments in your industry. A health food store owner can discuss natural foods and the nutritional value of eating fresh. A wellness expert can explain how pain can be managed, how to lose weight, and the value of exercise on body systems.
A blog or newsletter is not a personal diary for you. It is feeding the thirst out there for the knowledge you have. Blogs and newsletters posted on your website are marketing tools, and they concentrate on subjects the reader is interested in. Attorneys, accountants, consultants, medical experts and others can explain in depth the ways in which they can help clients. And this attracts referrals.
Keep in touch, but do it smart. You don't want to come across as a nuisance. Keeping in touch with short reminders, colorful and fun pictures, and clear explanations of some aspect of your business can go a long way to get you growing.
Done right, your clients and customers will appreciate being reminded of who you are and what you can do for them. And they will refer others to you.
To grow, you want to extend your reach in the communities you want to serve. Keeping in touch using social media is a valuable method to have in your toolbox.
Wednesday, March 25, 2015
Using social media
Free daily tips, information, advice and ideas
to help you better manage your small business.
If you don't use Facebook and other social media to promote your business, you're missing opportunities to grow.
Facebook, Pinterest, LinkedIn, Twitter and other platforms are useful additions to your marketing tool box. Everyone who operates a small business deserves to make use of them.
First, it is easy to set up your presence on social media. Even if you are not computer-savvy, you can follow simple directions and be up and running quickly. Just go to the site, and they lead you through it.
Second, social media pages put a face on your business. Everyone snaps digital photos these days. Photos are easily uploaded to your Facebook page, for example. Social media platforms are different in their requirements, but I recommend beginning with Facebook. Get your feet wet and then perhaps move on to other platforms.
Third, social media makes maintenance easy and cheap. You don't need an expert, like you needed to develop a website. With Facebook, for example, you simply check in, post one of those photos you've taken, and say a few words--few is the operative word here.
Fourth, social media platforms bring in new business, get referrals, spread the word. People tend to pass your photos around, getting your business in front of more eyeballs.
Keep in mind that social media is not like a brochure. It's not an ad, although they will sell you one if you want one. Social media is more like a scroll. It unfolds day by day or week by week. It is not static, it changes as you input more as the days pass. And you are making these changes yourself.
Make your photos a living record of your business. A baker photographs every cake as it is being made. A florist photographs every arrangement as it comes into view. Show before and after photos. A massage therapist photographs hands (no faces) working on a subject. A landscaper shows the hole being dug, the plant being inserted.
Don't try to be professional. Aim for being informative, humorous--and a little craziness can help. These things attract attention. You're not taking photos for display in a gallery. You're having fun, and so are your viewers.
Auto repair shops can show a mechanic's hands fiddling with something under the hood. Pest exterminators can take endless pictures of bugs. Even lawyers and accountants can take pictures of public street scenes, auto accidents, close ups of balance sheets, etc.
The purpose of the photo is to inform and entertain. They are quick glimpses or slices of life. They have something to do with your business, they are memorable, they remind your clients/customers that you are there for them, and they bring in referrals.
You can promote your business in many ways. Almost all cost you money. But social media offers opportunities that reach far beyond other means. And for the most part, they are free!
to help you better manage your small business.
If you don't use Facebook and other social media to promote your business, you're missing opportunities to grow.
Facebook, Pinterest, LinkedIn, Twitter and other platforms are useful additions to your marketing tool box. Everyone who operates a small business deserves to make use of them.
First, it is easy to set up your presence on social media. Even if you are not computer-savvy, you can follow simple directions and be up and running quickly. Just go to the site, and they lead you through it.
Second, social media pages put a face on your business. Everyone snaps digital photos these days. Photos are easily uploaded to your Facebook page, for example. Social media platforms are different in their requirements, but I recommend beginning with Facebook. Get your feet wet and then perhaps move on to other platforms.
Third, social media makes maintenance easy and cheap. You don't need an expert, like you needed to develop a website. With Facebook, for example, you simply check in, post one of those photos you've taken, and say a few words--few is the operative word here.
Fourth, social media platforms bring in new business, get referrals, spread the word. People tend to pass your photos around, getting your business in front of more eyeballs.
Keep in mind that social media is not like a brochure. It's not an ad, although they will sell you one if you want one. Social media is more like a scroll. It unfolds day by day or week by week. It is not static, it changes as you input more as the days pass. And you are making these changes yourself.
Make your photos a living record of your business. A baker photographs every cake as it is being made. A florist photographs every arrangement as it comes into view. Show before and after photos. A massage therapist photographs hands (no faces) working on a subject. A landscaper shows the hole being dug, the plant being inserted.
Don't try to be professional. Aim for being informative, humorous--and a little craziness can help. These things attract attention. You're not taking photos for display in a gallery. You're having fun, and so are your viewers.
Auto repair shops can show a mechanic's hands fiddling with something under the hood. Pest exterminators can take endless pictures of bugs. Even lawyers and accountants can take pictures of public street scenes, auto accidents, close ups of balance sheets, etc.
The purpose of the photo is to inform and entertain. They are quick glimpses or slices of life. They have something to do with your business, they are memorable, they remind your clients/customers that you are there for them, and they bring in referrals.
You can promote your business in many ways. Almost all cost you money. But social media offers opportunities that reach far beyond other means. And for the most part, they are free!
Tuesday, March 24, 2015
Handling complainers
Free daily tips, information, advice and ideas
to help you better manage your small business.
You know them. They are the complainers. They complain about you, your business, and just about anything else that strikes their fancy.
It seems that some people exist to complain. Their whole lives are devoted to finding the next thing to complain about. It borders on a mental disorder.
When a complainer gets you in the cross hairs, it's time to go into action. You need to summon all your abilities to defuse the situation. You need to turn the complainer into an advocate who will spread good words about you and your operation.
Example: Bill runs a restaurant and is active on social media. When a customer posted a negative review of the restaurant on Facebook, Bill went into action. He commented on the complaint on Facebook as well. "We love complaints. It tells us how we're doing. And we use every complaint to improve and provide better meals, better service, and better lives for the people who visit us." It worked. The person who complained returned to the restaurant and identified herself. Bill gave her a free lunch.
Social media provides people with opportunities to comment on--everything. Suddenly, everyone is an expert. They get carried away in the moment. When called to account in a non-combative way, sometimes you can turn them around.
Example: Carole runs a small boutique offering women's accessories, purses and caps, jewelry and scarves, and fun things that delight her female clientele. Many of the items she makes herself, using discarded blue jeans and denim. She cuts up the materials she finds at thrift shops and re-fashions it into bags and purses, even pins and belts. Shoppers love the big bags she creates, leaving the original pockets on the sides of the bags. Carole hates to see some shoppers arrive and begin complaining that the shop is too small, or that this bag is too big, or that denim is not appropriate for this hat. And, "Where are the tee shirts?" Carole took the initiative one afternoon, complimenting a complainer on the choice and design of coat she was wearing. This launched a conversation about the shopper, and with attention turned away from the shop and to the shopper, the woman relaxed into selecting several items for purchase.
In business, you meet the general public in person or on line. Complainers are everywhere, and you must meet them and turn them around. Keep it positive.
Example: Joseph does landscaping for several regular customers. One of his workers reversed a planting--setting out petunia plants where the marigolds were meant to be, and vice-versa. The customer called to complain. Joseph went to the home, apologized, and reversed the plantings. A simple mistake, a simple solution, and a happy customer.
Never leave a complainer to their own devices. It will only get worse. You must address the situation and turn a complainer into a satisfied customer. Your future depends on it.
Success in business means taking care of business. And that means you must keep your own personal feelings and judgments to yourself. Handling complainers will help you grow and expand.
to help you better manage your small business.
You know them. They are the complainers. They complain about you, your business, and just about anything else that strikes their fancy.
It seems that some people exist to complain. Their whole lives are devoted to finding the next thing to complain about. It borders on a mental disorder.
When a complainer gets you in the cross hairs, it's time to go into action. You need to summon all your abilities to defuse the situation. You need to turn the complainer into an advocate who will spread good words about you and your operation.
Example: Bill runs a restaurant and is active on social media. When a customer posted a negative review of the restaurant on Facebook, Bill went into action. He commented on the complaint on Facebook as well. "We love complaints. It tells us how we're doing. And we use every complaint to improve and provide better meals, better service, and better lives for the people who visit us." It worked. The person who complained returned to the restaurant and identified herself. Bill gave her a free lunch.
Social media provides people with opportunities to comment on--everything. Suddenly, everyone is an expert. They get carried away in the moment. When called to account in a non-combative way, sometimes you can turn them around.
Example: Carole runs a small boutique offering women's accessories, purses and caps, jewelry and scarves, and fun things that delight her female clientele. Many of the items she makes herself, using discarded blue jeans and denim. She cuts up the materials she finds at thrift shops and re-fashions it into bags and purses, even pins and belts. Shoppers love the big bags she creates, leaving the original pockets on the sides of the bags. Carole hates to see some shoppers arrive and begin complaining that the shop is too small, or that this bag is too big, or that denim is not appropriate for this hat. And, "Where are the tee shirts?" Carole took the initiative one afternoon, complimenting a complainer on the choice and design of coat she was wearing. This launched a conversation about the shopper, and with attention turned away from the shop and to the shopper, the woman relaxed into selecting several items for purchase.
In business, you meet the general public in person or on line. Complainers are everywhere, and you must meet them and turn them around. Keep it positive.
Example: Joseph does landscaping for several regular customers. One of his workers reversed a planting--setting out petunia plants where the marigolds were meant to be, and vice-versa. The customer called to complain. Joseph went to the home, apologized, and reversed the plantings. A simple mistake, a simple solution, and a happy customer.
Never leave a complainer to their own devices. It will only get worse. You must address the situation and turn a complainer into a satisfied customer. Your future depends on it.
Success in business means taking care of business. And that means you must keep your own personal feelings and judgments to yourself. Handling complainers will help you grow and expand.
Monday, March 23, 2015
Start and grow
Free daily tips, information, advice and ideas
to help you better manage your small business.
The mechanism of starting up and growing a business has long fascinated me. And it came quite naturally.
I grew up in a family business. My two sisters and brother established businesses. Being the youngest, it took me longer to get there. Just out of college, I started off in corporate America. Disgusted, I left and started my first business. There have been four or five, depending on how they are counted.
A business can be set up using any idea. Of course, some ideas are bigger than others. The marketplace and how you structure your business determines your success.
The marketplace is big enough to accommodate that idea you are passionate about. If you are interested in something, others are as well. They are your target market. How you reach them will determine your success.
Example: A lady once asked me how she could increase her sales in her small pet store. When I asked her what she was doing to promote her place, she said she took ads in the local paper. I suggested she use social media, post pictures of pets, and begin reaching out. "But I don't sell pets," she objected. "And I know nothing about social media." We talked it through. Later, she realized how easy it was to attract attention with pictures of puppies and kittens. She emailed me that sales had more than doubled in a relatively short period of time--she had set up on Facebook, Pinterest, and LinkedIn. Hers had been a simple question, and it was solved with a simple answer.
Social media makes it simple, easy, and inexpensive to get the word spreading in your community. It's even more productive when your business offers services and products that appeal to a wide spectrum of the marketplace. Everyone has a pet. Everyone has alternative health issues. Everyone needs help around the home and yard.
Example: A young man once asked what business he should go into. He wanted a business of his own, but he was perplexed as to the type of business he could pursue. Unfortunately, public school had not prepared him to make a business decision. In a quick back-and-forth, I helped him realize that he already had the answer. "Look inside," I told him. "Find the thing that you are most passionate about, and set up your business around that idea." Today, he owns a small construction firm--renovations and additions to homes. Occasionally, he tackles whole structures. His passion for building has become his business.
A career can be built on your passion. Artists and authors, therapists and tradespeople, landscapers and lawyers, shopkeepers and specialists--no matter your interests, you can build your business to serve that market. Start and grow.
And don't neglect the use of today's social media. The marketplace is continually changing. To a great extent, social media is leading the way. Find your place in it. It can reward your business with growth.
to help you better manage your small business.
The mechanism of starting up and growing a business has long fascinated me. And it came quite naturally.
I grew up in a family business. My two sisters and brother established businesses. Being the youngest, it took me longer to get there. Just out of college, I started off in corporate America. Disgusted, I left and started my first business. There have been four or five, depending on how they are counted.
A business can be set up using any idea. Of course, some ideas are bigger than others. The marketplace and how you structure your business determines your success.
The marketplace is big enough to accommodate that idea you are passionate about. If you are interested in something, others are as well. They are your target market. How you reach them will determine your success.
Example: A lady once asked me how she could increase her sales in her small pet store. When I asked her what she was doing to promote her place, she said she took ads in the local paper. I suggested she use social media, post pictures of pets, and begin reaching out. "But I don't sell pets," she objected. "And I know nothing about social media." We talked it through. Later, she realized how easy it was to attract attention with pictures of puppies and kittens. She emailed me that sales had more than doubled in a relatively short period of time--she had set up on Facebook, Pinterest, and LinkedIn. Hers had been a simple question, and it was solved with a simple answer.
Social media makes it simple, easy, and inexpensive to get the word spreading in your community. It's even more productive when your business offers services and products that appeal to a wide spectrum of the marketplace. Everyone has a pet. Everyone has alternative health issues. Everyone needs help around the home and yard.
Example: A young man once asked what business he should go into. He wanted a business of his own, but he was perplexed as to the type of business he could pursue. Unfortunately, public school had not prepared him to make a business decision. In a quick back-and-forth, I helped him realize that he already had the answer. "Look inside," I told him. "Find the thing that you are most passionate about, and set up your business around that idea." Today, he owns a small construction firm--renovations and additions to homes. Occasionally, he tackles whole structures. His passion for building has become his business.
A career can be built on your passion. Artists and authors, therapists and tradespeople, landscapers and lawyers, shopkeepers and specialists--no matter your interests, you can build your business to serve that market. Start and grow.
And don't neglect the use of today's social media. The marketplace is continually changing. To a great extent, social media is leading the way. Find your place in it. It can reward your business with growth.
Friday, March 20, 2015
Looking ahead
Free daily tips, information, advice and ideas
to help you better manage your small business.
Are you in the business you want to be in? Does the market support this? What are some directions you can take to better address current and emerging market trends? Are your original goals outdated? What are some ways you can head off in different directions? Do you have the resources to support new goals? Are you comfortable using social media in managing your business?
All businesses drift. They take on a life of their own. Maybe this is a good thing, maybe not. Every now and then, you need to step back and take a hard look. You might find that your business has grown stale.
You need to get yourself in that quiet place where you can think about where you are and where you are going. Only you can evaluate where you are in relation to where you want to be. You know the possibilities. Now sift through everything.
Clear thinking can turn today's hunches into tomorrow's realities. Clear thinking can turn around a failing business, and it can expand a business that's just stumbling along.
Always keep you eye firmly fixed on the marketplace. It's the marketplace that will make your business successful--or support a new direction. The marketplace is continually changing. Stay on top of it.
Example: My older sister operated a florist shop back in the 1950s through the 1980s. When I was a teenager, I helped her--delivering orders, picking up flowers at the distributor, cleaning up. Hers was a very successful business. Looking back, I wonder what her reaction might have been to today's communications technologies. Today, people dial an 800 number, order flowers, and they're done. My sister had to answer every phone call. Or, they click on a website and order what they see there. There were no websites back in her day. Or, they would have found her on social media sites--had the sites existed then. I know that she would have taken advantage of all of today's technologies. Why? Because she was always looking ahead.
While business is all about the marketplace, the marketplace has many new ways to reach you today. Technology moves at a very rapid pace. When you're looking ahead in your own business, keep your eye on technology. It can have a major effect on the market and on your business.
Looking ahead means juggling three things. Match your thinking to the marketplace, to technology, and to your dreams. This is basic business planning. If you have learned anything in business, you have learned to juggle.
So, get yourself into that quiet place and begin looking ahead. You might already be on the right track, but you might not. Only you can answer all the questions when you start looking ahead.
to help you better manage your small business.
Are you in the business you want to be in? Does the market support this? What are some directions you can take to better address current and emerging market trends? Are your original goals outdated? What are some ways you can head off in different directions? Do you have the resources to support new goals? Are you comfortable using social media in managing your business?
All businesses drift. They take on a life of their own. Maybe this is a good thing, maybe not. Every now and then, you need to step back and take a hard look. You might find that your business has grown stale.
You need to get yourself in that quiet place where you can think about where you are and where you are going. Only you can evaluate where you are in relation to where you want to be. You know the possibilities. Now sift through everything.
Clear thinking can turn today's hunches into tomorrow's realities. Clear thinking can turn around a failing business, and it can expand a business that's just stumbling along.
Always keep you eye firmly fixed on the marketplace. It's the marketplace that will make your business successful--or support a new direction. The marketplace is continually changing. Stay on top of it.
Example: My older sister operated a florist shop back in the 1950s through the 1980s. When I was a teenager, I helped her--delivering orders, picking up flowers at the distributor, cleaning up. Hers was a very successful business. Looking back, I wonder what her reaction might have been to today's communications technologies. Today, people dial an 800 number, order flowers, and they're done. My sister had to answer every phone call. Or, they click on a website and order what they see there. There were no websites back in her day. Or, they would have found her on social media sites--had the sites existed then. I know that she would have taken advantage of all of today's technologies. Why? Because she was always looking ahead.
While business is all about the marketplace, the marketplace has many new ways to reach you today. Technology moves at a very rapid pace. When you're looking ahead in your own business, keep your eye on technology. It can have a major effect on the market and on your business.
Looking ahead means juggling three things. Match your thinking to the marketplace, to technology, and to your dreams. This is basic business planning. If you have learned anything in business, you have learned to juggle.
So, get yourself into that quiet place and begin looking ahead. You might already be on the right track, but you might not. Only you can answer all the questions when you start looking ahead.
Thursday, March 19, 2015
Future income
Free daily tips, information, advice and ideas
to help you better manage your small business.
Many small businesses can increase sales and future income by offering to help clients and customers with partial or extended payments. This can be for products as well as services.
Partial payments, as work progresses, can assure income as work is being done. Layaway plans help buyers purchase items they otherwise might not buy. Retainers and maintenance agreements provide a business with on-going income.
Examples: (1) Massage specialists, lawyers, computer experts, landscapers and others offer on-going retainers or maintenance agreements, assuring future income for the business. (2) Electricians, plumbers and other tradespeople can realize a better bottom line by quoting the overall jobs in pieces for homeowners and other businesses--breaking up big jobs into components, each billed as it is completed. (3) Jewelers and furniture stores can offer layaway plans, breaking up a large expenditure into monthly payments. Layaway was once very popular, especially in large department stores. Recently, it has enjoyed a resurgence in popularity. (4) Printers, consultants, wedding providers and construction specialists can set up projects to be paid in thirds--one third upfront, one third when a critical milestone is reached, and one third at completion. (5) Any small business doing work for larger companies should be aware of approval authorities. A manager might be able to approve up to $500 while a senior vice president might okay a $50,000 project. By knowing who can approve what and for how much, you can structure a project accordingly--doing it in pieces that can be approved. Nobody's hiding anything here. It's just taking advantage of authorities of clients. Both sides win.
Look for ways to guarantee future income for your business. Start by understanding the needs of your clients and customers. Help them solve their problems, and you help yourself. It all goes to the relationship you have with them.
Looking to your future income can help you sleep at night. It's not the whole answer to the cash flow problem, but it might help in your business. And we all know how critical cash flow can be.
to help you better manage your small business.
Many small businesses can increase sales and future income by offering to help clients and customers with partial or extended payments. This can be for products as well as services.
Partial payments, as work progresses, can assure income as work is being done. Layaway plans help buyers purchase items they otherwise might not buy. Retainers and maintenance agreements provide a business with on-going income.
Examples: (1) Massage specialists, lawyers, computer experts, landscapers and others offer on-going retainers or maintenance agreements, assuring future income for the business. (2) Electricians, plumbers and other tradespeople can realize a better bottom line by quoting the overall jobs in pieces for homeowners and other businesses--breaking up big jobs into components, each billed as it is completed. (3) Jewelers and furniture stores can offer layaway plans, breaking up a large expenditure into monthly payments. Layaway was once very popular, especially in large department stores. Recently, it has enjoyed a resurgence in popularity. (4) Printers, consultants, wedding providers and construction specialists can set up projects to be paid in thirds--one third upfront, one third when a critical milestone is reached, and one third at completion. (5) Any small business doing work for larger companies should be aware of approval authorities. A manager might be able to approve up to $500 while a senior vice president might okay a $50,000 project. By knowing who can approve what and for how much, you can structure a project accordingly--doing it in pieces that can be approved. Nobody's hiding anything here. It's just taking advantage of authorities of clients. Both sides win.
Look for ways to guarantee future income for your business. Start by understanding the needs of your clients and customers. Help them solve their problems, and you help yourself. It all goes to the relationship you have with them.
Looking to your future income can help you sleep at night. It's not the whole answer to the cash flow problem, but it might help in your business. And we all know how critical cash flow can be.
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