Understanding business revenue streams…

Even in a small business there may be multiple revenue streams.    Revenue streams are derived from different market segments or they can come as an additional revenue stream from an existing customer segment. In examining revenue streams it is important to remember that cost must be subtracted from revenues in order to determine earnings. Too often owners tell me about a great revenue stream that is generating great cash flow for the business, but when we analyze the stream and subtract the … [Read more...]

Debt is poverty….Cash is king…..

The financial crisis of 2007 – 08 saw a lot of business owners lose their borrowing power from their “bank” the equity in their homes. The drop in value of the real estate market stopped the lending institutions from lending more “working capital,” but they still demanded payment on what was previously borrowed.  The crisis was caused by individuals who borrowed large amounts on their credit cards and took out 100% loans on their homes. The economy went into a “freefall mode”, and … [Read more...]

Financial strategy for business survival

It’s easy for a business owner to get “lulled” into a belief that by increasing their marketing efforts more business would come their way and all problems will be solved. That type of thinking results in spending most of the business hours marketing and very little to the rest of the vital business components. With this type of mentality most business owners start their business and remain a small business in size, income and vision. I have experienced so many occasions where the check … [Read more...]

Ways to increase cash flow

For many businesses cash flow is a major hindrance to achieving the hoped for growth. My first question to a new client is “what is the biggest problem you are currently facing?” Often times the answer is “cash flow, lack of working capital, or survival funds.” I know that unless that crisis issue is solved first, it will be in the way of every other thing that needs to be achieved to bring a business to profitability and sustainability. Asking hard questions and expecting honest … [Read more...]

Business development, another look…………..

Marketing has a purpose, and that is to sell a business’ core products or services to their target market. The term marketing is often interchanged with business development.  I want to introduce another definition for business development:  “business development allows businesses to profit by doing something that is tangential to their core mission.” Let me share an example; Starbucks licenses their name to a maker of ice cream and generated millions in royalties. That is the type of … [Read more...]

Find something you can monetize…..

Doing what you love to do does not necessarily mean that there will be cash rewards.   A person may like to volunteer at a local charity, so much so, that the majority of daily effort, both in work and in “mind” is used up on this project. If you are retired and have unlimited resources for your current and future living needs, then go ahead and enjoy your volunteer efforts. I was invited by a new acquaintance to attend a networking session. During the course of the meeting he shared … [Read more...]