A small business lost many clients in 2008 after the market crashed because the crash affected the firm's clients. This is beginning of the inspiring story of how a coaching firm makes a comeback in Rallying the Team for a Recovery.
For eight years, the firm saw growth every year and lost revenue totaling more than $600,000 for the first time in 2008. The money losses didn't stop there. The company had $100,000 less cash than originally believed when it found bookkeeping errors.
27 percent of workers have not taken personal time or a sick day in the past few years according to the 2010 CareerBuilder work/life balance study. And that's in spite of over half saying their workloads have grown. You'd think people would use their personal days to relax with the extra hours they're putting in.
A colleague told a story that reminded me that we all need to review our expenses to make sure we're not overpaying for anything. His company discovered that some employees had very high cell phone bills. The executives tasked him with a project to review the bills.
Before digging into cash flow statements, let's quickly touch on cash flow. At its simplest, cash flow is the movement of cash in and out of the business.
Cash flow falls into three categories:
Before you meet with a financial institution to ask for working capital to support and grow your business, be prepared by having the answers to these common questions. Even if you're not looking for financing, answering these questions verifies you're on track with your company's goals and growth plans.
Sending email blasts and making cold calls can and do work well for reaching out to prospects -- when you do it right. They key to getting results is to target the right people. If you're in the business of serving oilfield companies, calling or emailing someone in the banking industry would waste time.
So how do you find the right prospects? The first step is to identify your ideal prospect and work from there. Once identified, the other steps can vary.
Naturally, companies put off paying bills as long as they can while they expect to receive payment ASAP for services rendered or products delivered. That's the way the business machine works with most businesses require payment within 30 days. Holding off payment until the last minute allows your company to continue collecting interest on the money it has in the bank.
However, it's dangerous to play the late payment game especially when going past 30 days and doing that too often. This can lead to:
How She Does It by Margaret Heffernan reveals that successful women entrepreneurs don't let the money control how they run their businesses. Most of them do it because they're passionate about the business. While passion may be a driver, they still watch their companies' finances closely like any other owner and CEO.
Women-Owned Business Statistics
Do you ask, "How much is a customer worth to me?" "How much should I spend to acquire them?"
You may rely on your gut feeling as to what is too much, just right or too little. Can you count on your gut feeling even if it's come through for you before? What if you spend more than what your customer is worth to you or too little and leave business opportunities on the table for your competitors to take?
The only way to answer that question is by determining how much an average customer is worth to you.
Now that you've had time to enjoy the holidays and get the New Year off to a strong start, you're ready to tackle taxes and deductible expenses from all the parties, meals and gifts. You can deduct all of these expenses, but the IRS has a few confusing rules.
What Our Clients Are Saying
- George Del Toro,
We were funded [in 10 days] (the approval process was very smooth). The way I spend my time has changed dramatically since then. I can spend as much time as I need visiting with customers and out on the field... In closing I would like to tell you that Capital Solutions has made it possible for GDT Well Service, Inc. to triple (300%) its business in the last year, without any of the "growing pains".
GDT Well Service
- Keri Gray,
The HUGE difference I found since we are working with you... is in the day-to-day life... Since Capital Solutions is funding us there is no "fear"... when I talk to a vendor or need to make payroll. You guys have also bent over backwards... to make it work for us. I really appreciate that.
- Brenda and Mark Neufeld,
In our very first conversation I noticed that you not only understood our situation, but also the Oil & Gas trade. Capital Solutions has been an invaluable help... We have grown our business exponentially thanks to you. I can now probably qualify for a traditional line of credit (...but I'm not sure I want to).
B.N.M. Piloting Services