Just got off the phone with bill collectors both of them are named Michelle.. Anyways, some of you readers may not have had to deal with such people. But I see it as a skill that alludes people that have to deal with survival to get anything done, especially when they are tugging on you from both sides. Lesson: Pay the Interest account first when your settling a claim. This is why I’m championing the need for understanding what Cash Flow in personal and corporate finance and especially how interest on credit cards can eat up and cause a catastrophe very quickly. Especially in the beginning of start ups. This is why you hear Mark Cuban and some other well to do businessmen not ask for business loans or anything of the sort and grow internally through direct sales. Because it becomes profit and adds to CF than the interest accruing on your Amex Small Business Card or whatever that these banks do not tell you about. Interest is the Devil, and especially to CF. As it is an expense I have several pin ups on my board under is the chapter by Dan S. Kennedy’s No B.S. to Business Success “How to Manage Cash Flow.” I really recommend the book and most of Dan’s books. So I will not write all that is written. But will be referencing him throughout my writings. But use your imagination for actual clients that you don’t check their credit rating in credit bureaus. You have to be your own collection agency in the real world of business. Seeing and being on both sides is illuminating.
- How to Reduce and Control Expenses (but not kill quality.)
- How to Get Financing Leverage
- How to Get Paid (this is a big one and you have play collection agency – Imagine dealing with a client with a bad credit rating, no credit check, no enforcement of credit limit, late invoicing, giving credit to people who still owe you money, no standardized collection procedure, unwillingness to get tough) I have a great book on this entire subject and will expand on this in another post.
- Increase Cash flow by Increasing Sales – Philip Campbell on his site has this wonderful “Understanding Cash Flow in 10 minutes with Apple’s Year in 2012) It is polarizing what Sales are and what Cash Flow numbers are like. Sales aren’t the end all be all. Profit management and Cash Flow are apart of the pruning that not only your employees get richer, but you do as well.
- How to Find or Invent a “Slack Adjuster” – the term “slack adjuster” is the occasional great buy “diamond in the rough” for ex. A ten year old car in mint condition for $1500 that can you can sell for $6,000. In short, it’s something you can sell that gives you a surge in extra profit to help pick up the slack. Don’t give up equity!
I would like to close with something I read early this morning by an author named Robert Ringer, the book is titled Action:
In simple terms, a big part of getting what you want in life is a result of taking actions that give other people what they want.
1. If you want more, make yourself worth more.
2. Concentrate on quality and service first, and profit will follow almost automatically
3. Always give people more than you expect to get in return.
Alot to crunch? Get used to it. There’s a lot of information I will be sharing with you. Don’t be scared to drop a comment or a like or a subscribe on below.