The Chi Of Home Staging
June 9, 2020Sufficient cash flow is essential to your success and well-being. Every businessperson learns, usually the hard way, that there is a big difference between assets and cash flow. You can have massive assets – large companies might have hundreds of millions in assets – and still go out of business because you lack cash flow. It’s something about which businesses and families must be constantly diligent.
For example, if it is your best friend or other close person, you may just want to inform them of your business and what your plans are so they can share the news with everyone that they know. If the person is a formal business valuation contact who may be an investor down the road, you will probably want to lay the groundwork by giving them more details about your business and get them excited about the future possibilities.
Receivables are loans your company provides to your customers or clients. Unless you really want to be a banker, develop a protocol for your collection effort that begins the moment a bill leaves your company. History has demonstrated that the lack of a well-developed collection protocol is the primary cause of poor cash flow.
Imagine this scenario. Sales are down so far this month and your sales people know it. One of your sales people, let us call him Harry, has been speaking to a new customer about buying your products however price has been an issue. Harry wants to make his sales target for the month and offers the customer a discount if he buys today. The customer is still not certain and hesitates. So Harry closes in and offers extended terms i.e. pay us in 60 days rather than 30 days! The deal is done. A special price and extra time to pay.
Understanding what the numbers mean is crucial to your cash flow. Are sales trending up or down? Are expenses rising faster than sales? Is one product more profitable or better selling than another? How much do I need to sell to meet expenses each month? Can I take a paycheck this month? The answers all lie in the numbers.
Although it is important to work hard at your business, it is equally important not to burn yourself out. Know when it is time to give yourself a break. Make sure that you find time for family, friends, and relaxation. And do what you know that you need to do to keep yourself healthy and physically fit.
The Option Lease – This is a rental lease that gives the tenant the option to purchase the property within a certain amount of time. For example, if the tenant usually pays $400.00 per month in rent, the landlord can offer the tenant an option lease for an extra $150.00 per month. This means that for the time period specified on the lease, the tenant has the option to buy the property from the property owner for a specified amount.
6) If possible, draw on experienced people in the recruiting industry. There are many forms of compensation plans and different structures to consider. Be open to working with others who have the potential to get your business up and going.