Find where the playing field tilts in your favor - You can gain a competitive advantage in many ways, from selling at a cheaper price point to marketing a breakthrough technology. Sometimes, when your offering is very similar to a competitor’s, starting a campaign to donate a percentage of profits to a charitable cause your audience cares about can make all the difference. Or you could offer educational opportunities for your clients on unexplored topics.
Remodel the business - In well-established industries, major players tend to rely on the same basic business model for two reasons. The first (and most obvious) is that it works, but there’s something else at play. In large companies, people are often disincentivized to innovate. Would you want to be the executive who sticks with what works or the one who suggests taking a major risk that ultimately fails? That’s good news for new companies trying to enter an established industry: They’re free to chart a course instead of changing one.
Align yourself with a worthy cause - Consumers expect brands to take a stand on major issues facing society, and brands that don’t speak out will quickly fall behind their socially conscious competitors. Brand activism, whether by speaking up or taking solutions into your own hands, will give your business purpose even in its early days. Aligning your brand with a cause is a great way to connect with your consumers on a deeper level and, ultimately, make it harder for your small business to disappear.
At a recent global factoring conference in Poland, a report placed the global market for invoice factoring at $3 trillion. Almost two thirds of those transactions originated in Europe, while less than 10 percent came from the United States.
The global popularity of factoring, and its relative obscurity here in the United States suggest that the practice – that is, getting cash by selling the value of what your customers owe you before they pay it – might...
Let’s say you’re handy and you’ve got $10,000 saved up to start a company. You’ve invented a life-changing business tool called the Really Cool Thing that you can sell for $1,000. You rent a small production space, pay $2,000 for first and last month’s rent and pay yourself a $1,000-a-month salary.
In your first month you make and deliver four Really Cool Things – enough to cover expenses. Your product’s a hit and you get orders for twelve more, to be delivered in the next 30 days.
A lot of people are talking about factoring these days. But if the Internet has taught us anything, it’s that a lot of people don’t know what they’re talking about.
Factoring is often confused with accounts receivable financing, a loan secured by customer invoices – with all of the closing costs and paperwork that implies. With a loan, you pay the money back, plus interest.
Search for the term “factoring” online and you’ll inevitably find an article or two suggesting that factoring is expensive. The question to ask yourself is: compared to what?
If the article tries to compare factoring fees to loan interest rates, you can tell right away that they’re comparing apples to oranges. Factoring is not a loan, it is a sale.
Has this ever happened to you? Your sales team lands you a nice big order. You check inventory and realize you’re going to have to short ship and disappoint a potentially lucrative customer, or crank up the assembly line to meet your delivery deadline.
Business is good, but most of your cash is tied up in orders that have been delivered but are awaiting payment. It’s going to be at least 30 days before you see that money, and you need to get busy now.