Diverse Business Show Blog Talk Radio

Friday, August 27, 2010

Get ready for exciting changes and opportunity!

There are a number of exciting changes and opportunities coming to the Diverse Businesses Blog in the next 90 days. We have developed new partnerships that will provide great opportunities for our business partners.

September 1 will be the roll out. Spread the word!

Friday, August 6, 2010

Getting Paid: The Waiting Game

By Rieva Lesonsky

We all need to keep the cash flowing so we can run and grow our businesses. But, for many entrepreneurs, money is still hard to come by. And I don’t mean investment capital; it’s become a waiting game just to collect money that’s due us.

Far too many business owners have receivables they, well, haven’t received. So, how do you collect what you are owed? Call the companies that owe you money and ask when they’re planning to pay. If they can’t pay in full, try creating a payment schedule.

Going forward, try incentivizing companies you do business with to pay on time. Offer a discount if they pay within 30 days. If you want and can afford it, offer a bigger discount if they pay net 15. If you’re often paid with credit cards (and then have to pay the credit card company a few percentage points), it may help your cash flow to collect more of your bills in cash. Again, you’ll need to somehow incentivize the businesses to pay this way. Just make sure whatever you give away in discounts is worth it.

If your situation is more precarious and you need the money now, try factoring. Factors buy your receivables and immediately give you about 80 percent of what’s owed you. They keep the remaining percentage in reserve, then give it to you—minus their fees—when the receivable is paid in full. Fees generally range from 2 to 6 percent (over 30 days), which is higher than traditional loans from banks. If the factor doesn’t receive the money within the month, most charge an additional daily fee. Worst case: If the receivable is never paid you might have to pay the factor back in full. (Check the fine print in your contract with the factor.)

Some factors specialize in specific industries, while others are generalists. Do a search for factors online or check out the International Factoring Association for more information.

BizSuccessTips Editor Rieva Lesonsky is founder and president of GrowBiz Media, a content and consulting company. A nationally recognized small-business expert, Lesonsky has appeared on hundreds of radio shows and numerous local and national television programs. Read more of her insights at SmallBizDaily.com.

Tuesday, August 3, 2010

Developing Efficient Systems: Free online workshop

Not having systems in place is one of the top 10 reasons why businesses fail.

Here is a FREE resource from SCORE that will help you.

This free, online business workshop will:

  • give you direction on how to improve your biz through systemizing its operations,

  • help you give you greater control over your business,

  • provide useful downloads for frequently used document templates and cashflow forecast.

Efficient Systems

Why you should take this workshop:
If you can collect the right information during your daily business operations (without getting information overload), then you will be able to make better long-term strategic decisions. Systems help you streamline business activities and also free you up to manage the more important parts of your business, such as planning for growth.

Register (quick & easy) to get started!
If you've already registered, log in to view this workshop.