MCA DEBT: Riding The Dragon
MCAs make loans to companies that have no choice – they need money RIGHT NOW.
The Beauty of Factoring
If you are fortunate enough to have customers that pay within 30 days and you can invoice on a weekly basis the minimum ratio of cash needed to weekly invoice is about 5 to 1. If your customers take longer or if you can only bill monthly – the ratio goes up substantially. And – and this is very important – this ratio does not leave you any capital to grow.
Cash Management: The Hidden Ingredient
Virtually all of us start a business because we see an opportunity and a demand for something we can provide.
Let’s take what we learned in our first set of videos on profit and assume you know how to price your product and be assured of a net profit.
Business Growth and Cash on Hand Part 1
Corporate America has succeeded in making small businesses throughout the country finance its operations for the first 90 days. I know this sounds like a conspiracy yarn – but think about it for a moment.
The Mirage of a 25% Profit Part 3
If you read Part 1 & 2 of this subject series, it is now obvious that to be assured of a profit – you must plan for it. Let’s understand an important certainty.
PROFIT IS REALIZED ONLY AFTER ALL EXPENSES ARE PAID.
The Mirage of a 25% Profit Part 2
So, we have determined if you price a product at cost plus 25%, you will make a net profit of 4% to 8% if everything goes well. Profit margins this thin are the principal reason most small businesses fail – it does not take much of a loss to sink your ship.
The Mirage of a 25% Profit Part 1
US Invoice Funding is in the business of helping our clients FIND profit. The first step is to know where NOT to look. One of those places lies within your “add on” profit percentage. Many of my service business clients price their work this way – “I tally up what the job will cost and add 25%.” Then they follow up with the refrain – “I don’t know why, but I never have enough to get ahead.”