Entrepreneur: Cash flow problems can kill businesses that might otherwise survive. According to a U.S. Bank study, 82 percent of business failures are due to poor cash management. To prevent this from happening to your business, here are my 10 cash flow rules to remember.
1) Profits aren’t cash; they’re accounting. And accounting is a lot more creative than you think. You can’t pay bills with profits. Actually profits can lull you to sleep. If you pay your bills and your customers don’t, it’s suddenly business hell. You can make profits without making any money.
2) Cash flow isn’t intuitive. Don’t try to do it in your head. Making the sales doesn’t necessarily mean you have the money. Incurring the expense doesn’t necessarily mean you paid for it already. Inventory is usually bought and paid for and then stored until it becomes cost of sales.
10 Critical Cash Flow Rules [Entrepreneur]
Author: Pamela Swift
Home Based Job
AllBusiness.com: One home based business notion is that people can spend less time working than they currently do with a full time job. That’s one of those things that’s not really true but might be true after some time.
Let’s say you have a full time job of 40 hours per week. Then let’s say you spend an additional hour each day commuting to and from work. So that’s really a 45 hour week isn’t it? A week is made up of 168 hours total. Assuming you allow 8 hours for sleep per night, that would be 56 hours of sleep each week. So our ‘waking week’ is really only 112 hours. Subtract the 45 hours for the job and that leave us 67 hours per week.
Now a 30 minute commute is probably a conservative estimate when held up against reality. I know several people in my own circle of acquaintances who easily have an hour each way. Furthermore, many people with full time jobs often put in overtime each week. So in many cases, people with jobs spend half their waking hours each week attending to their job outside of the home.
It’s no wonder the idea of a home based business is so attractive! Why give all that precious time to someone else, somewhere else? Many people add up those hours and ask “Why .. oh why am I doing that?”
Home Based Business Versus a Job [AllBusiness.com]
BIZNESS! Newsletter Issue 58
Services For Seniors
You can’t read any magazine without seeing some reference to the effects of the coming retirement of the baby boom generation. That is just the type of opportunity that entrepreneurs are looking for to create a new business around. Think of all of the services these people will need. Some of them will need to have more of the work….
Continued in BIZNESS! Newsletter Issue 58 >>>
– LungAshtray
– Business Networking In Just One Website
– Go Green Christmas Tree
– Hello Kitty Gold
– ClassifEye-d
– Digital Wallet
– Fresh Water For Your Dog
Continue reading these top stories in the BIZNESS! Newsletter >>>
– What Do You Need To Pass A Franchisor’s Test
– Attitudes And Behaviors Of Successful People
– Telecommuting – Five Ways To Find Your Next Job
– TV Advertising: Not Just For The Big Guys
– 7 Sure-Fire Ways To Kick Start Your Presentation
– Dead Man Talking
– Dealing With Angry Customers
Continue reading these top stories in the BIZNESS! Newsletter >>>
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Mass produced services are only economical at a fixed location where installed equipment can be used to save time in the service. The other end of the spectrum is customized service at a location where the customer wants it to be performed.
Simple services like automotive repairs are almost always done at a garage or repair center since some of the services require lifts and special equipment. But providing some of the basic car repair services can be done with equipment in your truck and this service can be performed at a health club or a large company’s parking lot while you customer is exercising, working or at their home. Most customers will only hire this type of service if the price is about the same as what they will pay at a fixed location or slightly more. It is easy to meet this condition with certain services since your business will have no rent or utilities to pay. The market for this service may not be huge but it may be large enough to support a loan practitioner.
Computer services become difficult for the customer at a fixed location and certain system problems must be solved in place. So we are seeing a rise in the number of single person computer repair businesses.
As you go through your days and months, look for of what kind of service people or businesses hate going to a fixed location to get the service and then try to start a business around providing that service at the customer’s location. This concept is not new. I remember when I was a child, there was a person who had an old school bus and drove around neighborhoods selling groceries for people who didn’t want to run out. This may no longer be a good business but back then families only had one car and the home keeper needed this since they couldn’t run up to the neighborhood store to prepare dinner. I still have that response mechanism going for the daily ringing of the ice cream man’s bell when he drives through our neighborhood during the summer.
Oil changes and lubrication for cars, computer repair, dry cleaning and laundry delivery services to health clubs or office buildings, personal training at home, lawn mower and snow blower repair in your garage and computer printer inks refills in a truck outside large office buildings on a fixed weekly schedule are all lucrative areas to explore. But don’t let this small list limit your ideas. Think of other ideas. There are hundreds. If you think of a good one, go to the forum on my web site and let me know your ideas so I can spread the word around.
This new weekly column, 101 New Business Ideas for Retirees, is compiled specially for GetEntrepreneurial.com readers by Stan Spector. View all articles in this column by Stan Spector.
Stan Spector is the author of “Baby Boomers’ Official Guide to Retirement Income – Over 100 Part-time or Seasonal Businesses for the New Retiree”. The book’s website can be found at StanSpector.com.
Dead Man Talking
If you are in sales and you just keep on talking instead of listening, you’re a DEAD MAN! Well, not literally, I hope. But as far as getting that sale, you might as well be walking among the non-living because chances are you won’t win over that client. They say that if you cross Selling with Talking, you get Stalking. So let’s not stalk our customers. Your goal should be to ask the right questions in order to get the prospect to talk as much as possible. The more they’re talking, the more you’re learning – learning about their needs, pains, requirements, and what it is that you might be able to help them with.
Listening is not something that comes natural for many people since it is human nature to prefer talking. And when people talk, their favorite topic is…you guessed it… THEMSELVES! People love talking about themselves. If you don’t believe that, try this little game next time you’re on a cross-country flight. Try asking the person sitting next to you open-ended questions such as, “What kind of work are you in?” and “What made you decide to go into that field” and “What sort of challenges do you find are most common in the work you do?” Watch how quickly they jump all over those questions. Why? Because they get to talk about their favorite subject – Themselves. I used to do this when I flew cross-country for a couple of years and would actually say nearly nothing the entire 5-hour flight, while my seating companion blabbered on the entire trip. It’s fun to do this, albeit rather trying on the nerves. But it is an excellent example of my point, not to mention excellent practice to help improve your listening skills.
So why is listening so important? Well, for one, we already mentioned that people prefer talking to listening. So, as a sales person you are actually letting them do what they want to do the most. Second, listening builds trust by showing you have respect for them. Also, listening compliments people by showing that you care. These are all reasons for listening that benefit the talker, or your prospective client. But what about you — the sales person. How can listening help you?
The secret to getting your prospect to tell you everything is to simply listen. Acquiring the skill of good listening will increase the amount of money you earn, period…end of story. As I mentioned earlier, you have to ask the right kinds of questions first in order to get them to talk to begin with. Ask open-ended question, or questions that don’t require a simple yes or no response. Open-ended questions typically begin with the words Who, What, When, Where, Why and How. Build more questions based on the responses you receive from your previous questions. Ask questions about their company, their customers, their plans, what sort of challenges they are experiencing, what they did in the past to try to resolve those problems, and more. Get them to open up, then shut up and listen. You will gather very valuable information that will help you to better qualify your prospects and make the sale by getting them to purchase the exact solution to the problems they just described. But how do you listen?
A very good listening technique is called “Active Listening”. Active listening involves a bit of body language and verbal queues. When they are speaking, respond to certain points or topics with comments such as, “Really!”, “No kidding!”, “Wow!”, “What happened then?”, or “Tell me more.” This creates an interaction, but without you having to actually say anything. It also shows that you’re paying attention and interested. Also, listen with your body. Lean forward and toward the client to show you are interested. Never slouch or sit back looking too relaxed, else it will appear that you are bored and disinterested. Take notes. Even if they are not very meaningful or helpful to you later, taking notes shows that you are interested enough to log parts of the dialog for future reference.
Practice this at home. No, I don’t mean talk to yourself in the mirror and wait for an answer. I mean try this out on your family and friends. Try these same techniques on them and two things will happen. First, you will hone your skills for when you are in a selling situation, and we now know how that will help you. Second, your family and friends will realize that you really care and may actually say, “Wow, you are such a good conversationalist.” when ironically, you were just being a good listener. So don’t be a “dead man” (or woman) – Be a good listener and watch your sales increase.
Russ Lombardo is President of PEAK Sales Consulting, LLC and an experienced CRM and Sales consultant, trainer, writer, speaker and radio show host. Russ works with businesses to help improve their customer acquisition and retention for increased revenue and success. Russ is author of the books, “CyberSelling”, “CRM For The Common Man” and “Smart Marketing”. He can be reached at 702-655-5652 and emailed at russ@peaksalesconsulting.com.