NEWS

March 16, 2020

According to statistics published in 2019 by the Small Business Administration, about 20 percent of business startups fail in the first year. About half succumb to business failure within five years. By year 10, only about 33 percent survive.

It’s not enough to just deliver what you delivered last year. There is no normal anymore. To evolve and grow, keep in mind the following:

  • Disruption is the new normal. No matter your business, assume that it will be disrupted by a trend, technology, consumer or competitor. Pay attention to what your current or future customer will need and begin to test or offer that service or product now. Disrupt yourself before someone else does.
  • Niche expertise becomes more important. As ecommerce and services become more competitive, you will need your product or service to have specific capabilities or expertise. For example, rather than offering accounting advice, consider services related to the coming transfer of wealth from baby boomers to their Gen X or Millennial children.
  • Remote work. With competition comes higher costs. Consider hiring a talented remote employee without the resulting overhead expenses.
  • Data analytics are becoming critical. The hidden value of your company is the data it generates or the data you can acquire to better understand your customer. How do you know what to offer your customers next if you don’t really know what problems the customer is really trying to solve?
  • Automation/outsourcing of redundant tasks. How much of your employees’ time is spent on redundancy or repeating their tasks each week/ Outsource or automate those tasks and have employees focus on increasing your current customer service levels or generating new sales.
  • Population is aging. Over the next 15 years, 70 million baby boomers will hold tremendous financial and real estate wealth. Most will want to spend their wealth trying to live an amazing life as they try to avoid death. Analyze the research data on this group. What product or service can you offer them to help them achieve their goals?

 

SOURCE: forbes.com, 2/24/2020

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.    A factor pays you – advancing up to 100 percent of the invoice value, upfront – and collects from your customer on the invoice du
September 12, 2015

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.    In sales, discounts are a time-honored tradition, with sellers shaving a little off their price to sell more, or meet a specific cash flow target. It is cu
September 07, 2015

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.      You go see your banker, who applauds your succes
September 05, 2015

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.

 

 

I didn’t get into business to chase money, but for awhile it seemed as if that was all I was doing – calling and emailing customers to check on the status of payments. I stalked the mail carrier every day, watching for the truck and racing to the mailbox only to find a whole lot of empty.    Don’t get me wrong. Business was good – I was making more than I ever had working for somebody else. And my customers always paid – eventually. But I had one customer stretch me out over three months to the tune of $21,
August 26, 2015

I didn’t get into business to chase money, but for awhile it seemed as if that was all I was doing – calling and emailing customers to check on the status of payments. I stalked the mail carrier every day, watching for the truck and racing to the mailbox only to find a whole lot of empty.

Looking for ways to get customers to pay faster?  You may have heard the expression “2/10, Net 30.” That’s biz-speak for: “Hey, if you’ll pay me in 10 days I’ll knock off two percent – or pay me the full amount in 30 days.”  A lot of big companies offer these kinds of early payment discounts. Studies show, however, that only a fraction of offered discounts are taken. Turns out even big companies like to hang on to their cash as long as possible.  At TBS Capital Funding we’ll take those terms. We’ll pay cash
August 21, 2015

Looking for ways to get customers to pay faster?

You may have heard the expression “2/10, Net 30.” That’s biz-speak for: “Hey, if you’ll pay me in 10 days I’ll knock off two percent – or pay me the full amount in 30 days.”

A lot of big companies offer these kinds of early payment discounts. Studies show, however, that only a fraction of offered discounts are taken. Turns out even big companies like to hang on to their cash as long as possible....

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