Things You Can Do Today

Things You Can Do Today
 
One of the great business ideas of our time was a guy, actually it might have been a girl, who sent e-mails to people saying "how to earn money for nothing – send £5 today"
 
They received £14,000 and to each person they sent another e-mail "send out an e-mail saying "how to earn money for nothing – send £5 today"" Needless to say they were stopped, but why?
 
Did they break the law? Only if you think there is a proper way to do business and they did not do it. They failed to run a business like everyone else, but 96% of businesses fail to provide a return greater than bank interest.
 
Their's did.
 
The point is this, people are greedy, and the banks you use, your suppliers, your customers, your staff, you … are greedy and yet when it comes to cash, most people become a shy teenager – if there is such a thing these days?
 
Let's look at the things you can today to use this amazingly obvious piece of information.
 
A piece of information that maybe only a few people actually do know.
 
How to get cash flowing
 
• Write a plan and instead of working out your profit, do it by cash-flow. Still want to give long credit terms? Still want to pay your suppliers to their terms? Still want to pay commission before you are paid? Still want the bank to make money from your successes as well as your failure?
• Why don't you ask your suppliers salesmen for credit. Because they tell you that their accounts people won't allow it? Do not believe them and never ask accounts people for extra credit. The salesman gets commission, the accounts person does not – who should you ask?
• Ask suppliers to buy back slow moving stock at cost price, less admin costs. Why not? Your supplier has to make or buy stock, if you cannot shift it, let them. Why would they rather see you go under than buy it back, or exchange it for stuff you can shift?
• Write a new plan and approach banks constantly. Banks love planners, as a brief aside, they do not read plans thoroughly, for a simple reason, they are shocked when they get one! It would take a couple of hours to write a plan and then tell your bank once a quarter how you're doing. And why stick to one bank, bankers have to perform, they have to meet targets. If you have constant positive contacts, you will find out when their pressure points arrive. The moment your banker is under pressure to perform is the moment he turns to his best customer to offer them the earth, make that you. By the way, no more overdrafts, they cost a fortune, it costs next to nothing to write a plan and get a loan.
• Lease your machinery (or lease and buyback). If you want money, banks are just one of the options. People who work for leasing companies rely on commission, they get commission by writing deals. When you approach them imagine that they are short this month, their own bills are piling up, and you are going to allow them to save themselves by giving you money.
• Consider factoring (releasing a percentage of invoice value at invoice date) if you are not effective with your own credit control then factoring can provide all the answers. This method of finance is so under-used but so effective, particularly in growing companies, and the people who work for these companies will come in and help you. Let me assure you, this method of financing, gets you paid early, gets cash flowing and gets you tons of free advice. Personally, I have found these companies helpful and informative.
• Get a grant, now, today. You will have to write a plan, you will have to liase with the grantees, you will have to get lots of free advice. Grants are given to employ staff, occupy premises, get machinery, IT, train and … well ring around and find out – I can't do everything!
 
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