Tags |
|
|
Links |
|
|
Added for You - Having Enough Gas (Cash) For Your (Growth) Engine
No matter what your business is, you will enhance your level of success by developing a well-organized sales presentation. A good sales presentation involves two primary elements:(1) The pre-planned sales talk.(2) A carefully conceived and organized visual presentation that documents, confirms, supports, and strengthens the oral.Your visual aid can take a variety of forms. It may be a multi-page flip-over type with elaborate charts and graphs, extensive artwork, color photos, and other attention getting devices. It may be a computer driven multi-media event or a simple on-line presentation from a laptop. Or, it can be a basic set of 8 1/2 X 11 loose-leaf pages that can be arranged to fit diverse selling situations.Presentations, whether professionally designed or home made, are a vital component of your selling process. Why? Confucius put it this way: "In all things, success depends upon previous preparation, and without such preparation there is sure to be failure."
Most people have a lot of nice things to say about nursing. This could be one of the things that made nursing an interesting career option. But, did you know that there are a lot of areas of specialization in the big world of nursing?Having a career in the field of nursing can take you to a wide selection of various specialization. If you dream of becoming a nurse, then you should start choosing what to specialize on the soonest possible time in order for you to have ample time to consider where to focus on your studies. But if you are a registered nurse already, you may want to put some spice on your career and explore one of the most rewarding specialization in the field of nursing, which is telemetry nursing.Telemetry nursing is an exciting career as it allows you to use your technical skills and interpersonal skills. There is no preferred gender to this area of specialization, which means both men and women can be a telemetry nurse. For as long as you have compassion and nursi
We could get into some pretty heavy stuff when talking about properly managing cash flow and you'll likely have to do that at some point. The purpose here, though, is to highlight what happens to cash when a business experiences fast growth, why growth often leads to unforeseen cash problems, and a few things you can do about it.
The most important thing about managing cash flow is to never be surprised by what will happen in the future. This becomes critically important when a business is experiencing fast growth. However your small business does it, you need to be able to look down the road and know with some certainty what is going to happen to the cash position of the business under any foreseeable circumstances.
Some of us tend to be "linear thinkers" - in other words, we extrapolate in proportional terms where we are today with where we are going in the future. Such proportionality, however, is rarely the case when things are changing - including figuring out how your small business is going to fund accelerated growth. Change almost always results in the disruption of relationships - whether you are changing something in your personal life, or your business, or its financial structure. Old relationships and cause / affect scenarios fade and are replaced by new ones. Why would you ever think that funding fast growth is any different?
The Impact Of Growth
In general, four things happen to a business' cash flow, when it grows. The first is that its cash flow, or cash conversion cycle lengthens. Simply stated, this cycle is the timing difference between when a business has to pay its debts and when it will collect the cash it is owed to make those payments. Before you can build more of something, or provide additional services, your business goes through an expansion of its resources - it has to buy additional inventory, spend more time in the field with customers, possibly hire and train more people, etc. to prepare for the increased activity. Then, after the sale occurs, it goes through an expansion of its receivables and has to wait to cash in on the sale it has made. So, as you move to the next higher level of activity, you have to lay the money out up fr
Networking, Ugh!Mention the word and you either get these reactions:• I hate networking• Love it, it’s great. I get a lot of referral from it.To some people the thought of networking gives them the cringe. Some people think networking means getting dress up, going to a large room full of people you know has a business, getting as much business cards as possible and promising to do lunch.To me that sounds horrible, who wouldn't cringe at the thought of spending an hour or two exchanging business cards and sales pitching with a phony smile plastered on their face?Most of the time it feels uncomfortable, deceptive and self centred.Networking is not about that, but to build relationships. People like to do business with those they trust. When you don’t like someone, do you feel comfortable doing business with them? Nope, I don’t think so. It's all about connecting and sharing with other business owners, and all you have to do, to do that is to begin t
We could get into some pretty heavy stuff when talking about properly managing cash flow and you'll likely have to do that at some point. The purpose here, though, is to highlight what happens to cash when a business experiences fast growth, why growth often leads to unforeseen cash problems, and a few things you can do about it.
The most important thing about managing cash flow is to never be surprised by what will happen in the future. This becomes critically important when a business is experiencing fast growth. However your small business does it, you need to be able to look down the road and know with some certainty what is going to happen to the cash position of the business under any foreseeable circumstances.
Some of us tend to be "linear thinkers" - in other words, we extrapolate in proportional terms where we are today with where we are going in the future. Such proportionality, however, is rarely the case when things are changing - including figuring out how your small business is going to fund accelerated growth. Change almost always results in the disruption of relationships - whether you are changing something in your personal life, or your business, or its financial structure. Old relationships and cause / affect scenarios fade and are replaced by new ones. Why would you ever think that funding fast growth is any different?
The Impact Of Growth
In general, four things happen to a business' cash flow, when it grows. The first is that its cash flow, or cash conversion cycle lengthens. Simply stated, this cycle is the timing difference between when a business has to pay its debts and when it will collect the cash it is owed to make those payments. Before you can build more of something, or provide additional services, your business goes through an expansion of its resources - it has to buy additional inventory, spend more time in the field with customers, possibly hire and train more people, etc. to prepare for the increased activity. Then, after the sale occurs, it goes through an expansion of its receivables and has to wait to cash in on the sale it has made. So, as you move to the next higher level of activity, you have to lay the money out up f
How important are staff to your practice? That’s sort of a basic question, because everyone knows that without staff you can’t do your own job. But really, how important do we consider our staff? After all, they haven’t been to school as long as we have, they don’t know as much, they don’t make the money we do. Shouldn’t it be easy to replace them when we need to?It’s easy to fall into the trap of under-rating the importance of staff to a practice; but it’s at least as bad to have the wrong staff in your practice. Who are the ‘wrong’ staff? Most of us would say those who don’t work hard, or take too many breaks, or don’t know what they’re doing, or who don’t take initiative. Now, these are serious defects, but the problem goes deeper – are we hiring staff who really complement the practice?When you opened your practice you had an ideal in mind. Most likely it included doing the right thing with patients, providing top-notch care, having patients excited enough to tell others
Some of us tend to be "linear thinkers" - in other words, we extrapolate in proportional terms where we are today with where we are going in the future. Such proportionality, however, is rarely the case when things are changing - including figuring out how your small business is going to fund accelerated growth. Change almost always results in the disruption of relationships - whether you are changing something in your personal life, or your business, or its financial structure. Old relationships and cause / affect scenarios fade and are replaced by new ones. Why would you ever think that funding fast growth is any different?
The Impact Of Growth
In general, four things happen to a business' cash flow, when it grows. The first is that its cash flow, or cash conversion cycle lengthens. Simply stated, this cycle is the timing difference between when a business has to pay its debts and when it will collect the cash it is owed to make those payments. Before you can build more of something, or provide additional services, your business goes through an expansion of its resources - it has to buy additional inventory, spend more time in the field with customers, possibly hire and train more people, etc. to prepare for the increased activity. Then, after the sale occurs, it goes through an expansion of its receivables and has to wait to cash in on the sale it has made. So, as you move to the next higher level of activity, you have to lay the money out up f
Recruitment advertising is a continuous activity for a growing company, particularly when the economy is doing well. Also, companies operating in specialized or niche areas and doing well are constantly on the look out for job applications from suitable staff as the availability of quality manpower will be limited. So how do companies recruit new staff? There are 3 ways of recruitment advertising...1) Advertise in news papers in employment opportunities columns2) Contact manpower agencies3) Look through their file for previous job applications - if there is any previous history.However, none of them are quick or inexpensive. Hence, if there is a way that cuts down on recruitment expenses or time for employers, they would go for it.When you apply for a job as a prospective candidate in response to an ad, you are one among thousands of applications that the employer receives. Your chances of selection are as good as anybody else and it does not in anyway help you
The Impact Of Growth
In general, four things happen to a business' cash flow, when it grows. The first is that its cash flow, or cash conversion cycle lengthens. Simply stated, this cycle is the timing difference between when a business has to pay its debts and when it will collect the cash it is owed to make those payments. Before you can build more of something, or provide additional services, your business goes through an expansion of its resources - it has to buy additional inventory, spend more time in the field with customers, possibly hire and train more people, etc. to prepare for the increased activity. Then, after the sale occurs, it goes through an expansion of its receivables and has to wait to cash in on the sale it has made. So, as you move to the next higher level of activity, you have to lay the money out up f
Universal Funnel Law #3 – Every business must have sales. A sales plan along with a sale model or process works to convert prospects into actual sales.Leo Burnett, a pioneer American in advertising, said “Plan the sale when you plan the ad.” His comments reinforce that your sales plan must follow your marketing plan. Universal Funnel Law #3 follows these wise words.(Read the #2 Universal Funnel Law at http://ezinearticles.com/?id=89742Sales plans need to start at the top with who is responsible for pricing and profitability. Again, the importance of a strategic business plan once again is evident. Additional analysis may include some of the following questions:What specific sales strategies will be available?How will the sales efforts be supported?What customer services will be available?How are our sales goals set mutually within the company?
Second, when you are growing, this becomes an accelerating and self-perpetuating cycle. You don't catch up; things keep getting worse and you need an ever increasing amount of cash to support the growth. If the sales gains are coming quickly, you are collecting cash based on the previous level of sales - you haven't collected (or maybe even generated) the receivables from the higher level yet, but you have incurred the production costs to "build" whatever you are selling.
For example, assume that $50m of cash on hand would normally support an annual sales rate of $1mm - in other words, a cash / sales ratio of 5%. When your annual sales rate moves to $1.2mm, you need $60m in cash to maintain the same relationship; then its $70m if sales go to $1.4mm. And these numbers assume a linear relationship between sales and the cash you need to support it. Again, this rarely happens. During the growth period - when things are changing - you just won't be able to operate as efficiently and your business will burn through proportionally more cash to support a higher level of sales, at least for a while.
Third, when a business is growing, there inevitably are things happening that affect its natural "economies of scale" and "diminishing returns." You may benefit from improved economies of scale, for example, because you can buy inventory at a quantity discount. On the other hand, you may well see diminishing returns from your employees, because they can't work as efficiently at a higher level of activity, or because you have to hire new employees and give them time to come up to speed.
Finally, the margins of the business are likely to change in a fast growth scenario for a variety of reasons. If you are selling a new product, or service to generate the growth, or changed your pricing to get the business in the first place, or need to change your overhead structure to handle the increased activity, or need to hire inexperienced people, margins will not be the same as they were at a previous activity level. This affects cash levels, because, ultimately, the profits that you generate will turn into cash (if the owners leave them in the business) and lower margins mean proportiona
HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.added4u.com/article/44934/added4u-Having-Enough-Gas-Cash-For-Your-Growth-Engine.html">Having Enough Gas (Cash) For Your (Growth) Engine</a>
BB link (for phorums):
[url=http://www.added4u.com/article/44934/added4u-Having-Enough-Gas-Cash-For-Your-Growth-Engine.html]Having Enough Gas (Cash) For Your (Growth) Engine[/url]
Related Articles:
Procurement and How It Relates to Office Furniture
What To Do When You Can't Find That Perfect Prospecting List
Bookmark it:
|