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Number of Parts Defines Manufacturing Market Segmentation
E-Z-MRP, the leading manufacturing software system for small manufacturers, announced effective April 15th, there will be a new pricing and product structure. According to Rocky Smolin, founder of Beach Access Software, makers of E-Z-MRP, “We see a ...
Why Selling on Lease Options is Glorified Landlording
I might upset some folks with this one, but that's okay as I think it's important to get some of my experiences into the light of day. If you fully believe the hype that you won't have any landlording responsibilities by selling on a lease option, go ...
Why Small Business Must Turn to PR
Please feel free to publish this article and resource box in your ezine, newsletter, offline publication or website. A copy would be appreciated at bobkelly@TNI.net. Net word count is 670 including guidelines and resource box. Robert A. Kelly © 2003. ...
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This can happen for a number of reasons and can be a
sign that your business is growing at a faster speed
than you are ready to handle. Perhaps your best
customer has given you a $100,000 order -- but you
need cash right now to buy the supplies needed to
produce the product.
Challenges like this one are
commonplace occurrences with businesses of all sizes.
Without adequate operating capital, your ability to
grow your business is limited. When this happens,
you need a strategy that will either infuse your
business with some quick cash or reduce your
operating expenses.
Try one of these:
1. Hold a Sale.
You reduce inventory while brining in some quick cash.
Offer a discount or other incentive to customers who
pay now.
2. Ask for Payment in Advance for Recurring Services.
If you are offering web-hosting services, for example,
offer one month free to customers who pay up front for
12 months hosting.
3. Lease Your Equipment.
Purchasing equipment ties up large sums of money. By
leasing, your money is freed up to be used for other
purposes. Often it is possible to lease a variety of
equipment -- including office equipment, computers,
software, telecommunications equipment, vehicles and
more.
4. Joint Venture with Another Business.
Find a business offering services or products that are
compatible with your own and offer to promote each
other's business. For example, if you are selling health
food products, offer to cross-promote with a business
selling fitness products. You'll both enjoy increased
sales.
5. Obtain a Line of Credit.
Bank credit is usually subject to standard ratios of
debt to equity, working capital and profitability.
6. Factor Your Accounts
Receivable.
Sometimes known as "invoice discounting," factoring is
the selling of your invoices (accounts receivable) for
cash, instead of waiting 30-60 days to be paid by your
customers. Businesses of all sizes use this tool --
which is available through various specialized financial
institutions. The funder buys your receivables at a
discount -- leaving you with enhanced cash flow. Not
all invoices will be appropriate for factoring. The
customer must be a low credit risk, there must be
evidence of the transactions (such as a signed delivery
waybill) and the customer must verify that the debt is
owed.
7. Equipment Sale Leasebacks.
You can use equipment that you already own to secure
financing. By transferring equipment assets onto an
equipment lease, you can recover up to 100% of the
equipment's value. The equipment remains in your own
premises and you can continue to use it. You must own
the equipment free and clear to go this route.
8. Ask Suppliers for Credit.
Or, ask them to extend your credit. Another possibility
is to discuss loan or consignment shipments from your
suppliers.
9. Stop Producing Dated and Low Profit Items.
Stick with your core product until sales improve.
10. Cut Back on Stock or Inventory.
Ask suppliers to buy back stock at cost. You will have
to allow them an administrative fee. Order supplies or
inventory on an "as needed" basis. Alternatively, you
could contact other small businesses that stock the
same inventory as you do and discuss the possibility
of bulk purchasing.
About the Author
June Campbell
How to Write Business Plans, Business Proposals,
JV Contracts,Human Resource Package, More!
No-cost ebook "Beginners Guide to Ecommerce".
Business Writing by Nightcats Multimedia Productions
http://www.nightcats.com
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Indianapolis Business Journal |
Leases/leasing contractsIndianapolis Business Journal-The US Attorney's Office leased 44412 square feet of office space in Market Tower, 10 W. Market St. The tenant was represented by Tim Craft of CBRE. The landlord, MT Acquisitions LLC, was represented by Dave Moore, Andy Martin, Darrin Boyd and Bennett ...and more » |
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