Looking to boost working capital and free up cash flow to grow your business and turn it into a cash cow? Unable to obtain a credit line from a traditional lender? Stressed because you need cash to pay suppliers, payroll or taxes?
A Business Optimization and Funding Plan and coaching may be your answer that turn your business into a cash cow. Here’s How!
Part (1): Business Optimization Plan
Business Optimization Plans are much more than a tool to obtain financing. A Business Optimization Plan is a description in full detail of any business enterprise covering operational business structure, required resources, authority, responsibilities, abilities, aptitudes, temperaments, equity, remuneration, products and services, market research and marketing strategy, complete budget and financial projections with expenses and revenue for up to five years.
A Business Optimization Plan helps clarify your company’s direction, and can give birth to a corporate philosophy.
A Business Optimization Plan provides a blueprint, describing your company, its products, the business model, management team, competition, and business risks.
A Business Optimization Plan includes: Executive Summary; Vision, Mission and Goals; Company Overview; Product Strategy; Operations Plan; Market Analysis; Marketing Plan; Financial Plan; Financial Statements, Supporting Documents and Exit/Payback Strategies. Both startups and existing businesses require business plans. Hence, developing such documents generally requires a great deal of research and number-crunching.
Elements of a Business Optimization Plan
Your Identity and Personnel
What is your company, and who are the key players? You must identify your business’ legal name and status. You must also identify key personnel – their backgrounds, their fields of expertise, and any proposed additions to the team.
Your Physical Plant
This is a description of your business location, your rent/mortgage expenses, plus your maintenance and insurance costs. You need to determine if you will require more space, and if your location gives you a competitive advantage. You need analyze current and projected machinery, equipment, product, service, etc., to see what expenses you can anticipate.
What exactly do you do? You need to examine each of your products and/or services in terms of percentage of your business and opportunities for growth. You need to formulate company milestones, including upcoming products and services in development. You need to describe your current product or service and what makes it unique and competitive.
Your Marketing Strategy
You need to examine market conditions – the nature of your customers, as well as your competitors, sales potential, and what promotional steps you plan to take to develop your business.
Your Bottom Line
This is a financial analysis – a listing of information for prior years, and projections for your future. By identifying the strengths and weaknesses of your company, certain patterns begin to emerge.
Perhaps you can identify new opportunities for growth – or areas where you can affect savings – changes that will make your company more efficient. You might effectively predict upcoming problems, or prevent them. In other words, the perspective gained through your Business Optimization Plan can make a significant contribution to your company’s success, and help you get the funding you require. In fact, most lending institutions and private investors will not even talk to you without a Business Optimization Plan.
You need to look at the loan officer or venture capital investor as someone who would write you the check you need if only he or she could see beyond your balance sheet.
One of the most important elements for business success is a detailed, well-written Business Optimization and Funding Plan. The investor’s mind is open and needs to be filled with a generous amount of knowledge about what really makes your company tick, and how they are going to get paid back (exit/payback strategy).
Part (2): Business Funding Plan.
This is the second part of your Business Optimization and Funding Plan. You need to be able to expose you to various funding resources and options and be able to communicate precisely how viable your business is before you need funding for your business.
Sometimes it is difficult to pat oneself on the back and appear credible. This should sound familiar, because you have already had these thoughts, “Even if I do find sources for venture capital, who will listen to me?
They will want more than numbers, a solid written plan, and sound reasoning, all with some sizzle. But that’s not what I do best. And if I ever need to be at my best, this is it”.
Not all companies that are good investments obtain the capital they need to succeed. That is usually because they fail to communicate precisely how good an investment they truly are. They fail in their capital quest not because of what they are, but because of what they are not. They’re just not professional communicators.
You Are the Star
For the most part, lenders want to deal directly with the owner or principal officer of the company seeking capital.
Most of the lender’s or investor’s want a good presentation and will ask you questions that will be directed at you. Every detail of your presentation must be as familiar to you as your own name. At that critical moment, there must be no hesitation in your answer to any question that is asked. You must be cool, calm and thoroughly prepared. You will obtain the capital you seek because you will have shown exactly why your company deserves it.
A Business Optimization and Funding Plan is crucial for two primary reasons:
First, spending the time researching and fleshing out such details clarifies thinking, generating information previously not considered and a workable strategy to follow for the period covered by the plan.
A sound Business Optimization and Funding Plan is a blueprint to success, outlining the steps to move from idea to success. Should due diligence reveal that an idea isn’t destined for success, then better to know now than a year later and thousands of dollars poorer. Indeed, the time saved may be invested in planning another better idea with any better chance.
Secondly, in any hope to raise funds through business loans, venture capitalists, even an angel or an incubator; never even consider approaching any sort of lender or investor without a thoroughly researched business plan in hand!
Here is a reason why a Business Optimization and Funding Plan is required for the Construction Industry.
There are 10 Reasons Why Traditional Banks Won’t Fund
Contractors and Subcontractors or the Construction Industry:
•No Clear Access to Receivables.
•Excess Owner or GC Retainage.
•Warranty Issues Regarding Performance.
•“Firing” of Contractors Can Result in Freezing of Payments.
•Joint Check Arrangements Reduces Availability.
•Cumbersome, Time Consuming, Expensive Underwriting.
•Possibility of Project Funds Running Out.
•Margins Too Thin
What if your business had these types of challenges when it comes to bank funding?
These are things you need to know before you waste time and effort trying to get funding in the traditional way for your business in your industry.
Contractors and Subcontractors Turn Your Business into a Cash Cow
Eliminate Your Funding Problems
Micro Loans: You can eliminate funding problems with Micro Loans. Approval is made in as little as 2 to 3 days so you can focus on what you do best, running your business. You must understand that bank loans are tough to get, even for healthy small businesses. There is an easy application process. A simple one page application, 4-6 months bank statements are required plus your profit and loss statement. There are no hassles and no long waits for a response.
Features of the Micro Loan are:
1. Loans from $5,000 to $250,000
2. Terms from 3 to 18 months
3. Fixed interest and fixed payments
4. Easy daily ACH repayment
5. Approval in 2 to 3 days
6. Funding in as little as 7 to 10 days
7. Qualifying credit scores 500+
According to Bernard Samuel, Jr. MBA, of Sunovis Financial Services, says, “we don’t want to brag but we are among the few companies that fund progress payments owed to construction industry. We have been providing secured financing for the Construction Industry, Architects, Engineers, Contractors, Subcontractors and high-end Home Improvement contractors for many years.”
He says, “We understand the importance of caring for the customer and providing the financing needed to fund your transactions. Because we understand you and the credit markets and know what is acceptable to complete each transaction, we do it right the first time. Our attitude has always been to do it better, faster and leave the customer smiling.”
The Benefits You Receive are Immediate Cash That Allows You to Compete.
1. Unlike conventional lending sources, you get money when you need it. As a result, you have the funds needed to finance your next project immediately – not 30 to 60 days later – and/or to take advantage of vendor discounts (by paying earlier or buying larger quantities). This way you can increase your sales and revenue, accelerate your growth and lower your costs, increasing your profitability. Moreover, our solution allows you to compete on the basis of payment terms (and not just price) – a particularly profitable strategy as you can build in some of the costs of our solution into your pricing structure.
2. You get a funding solution for your business that has sales and generates accounts receivable from other businesses and from governmental authorities. Unlike many banks or factors, we do not flatly reject you as a potential client merely because you have not been in business for at least two years.
3. You get review and approval process does not focus exclusively on your credit history. We do not flatly reject you because you have a weak balance sheet or because you have experienced a negative credit event in your recent past. We focus more on the financial strength of your customers.
4. You get experienced executives who respond to the needs of their clients personally. There are no layers of bureaucracy or lengthy review and approval processes. We are interested in our client and your business, so expect us to call and meet with you to create a personal relationship.
Construction Industry is only an example.
Bernard Samuel says, “We do business with only those proven owners of exceptional reputation and we have long standing relationships that confirms how we conduct business. Your client is our client! We only deal with the most reputable investors in the market. Our relationship with our contractors and their clients depends on it. The one feature that is an absolute is that we say it the way it is. In most cases, if we cannot finance a transaction, no one can. If you are interested in a risk-free, no obligation pre-approval, please contact me. I look forward to getting you the best loan with the best possible rate. I can send an application and discuss how we can help you.”
Contractors and Subcontractors Turn Your Browsers into Your Buyers
Customer Funding Construction Program:
According to Mr. Samuel, “this financing is to help you fund your construction projects through your clients. Turn browsers into buyers by offering installment payment plans. Affordable monthly payment options combined with interest-free term promotions. This will not only help to increase the first purchase amount but will bring your customers back for repeat purchases. These customer financing solutions are designed to drive more traffic to your business, improve sales and build customer loyalty.”
You’ll get a network of lenders we work with to obtain the best solutions for you. We finance residential and commercial construction projects with flexible financing options. Our program is not a “home equity line of credit” or a loan secured by property. We give unsecured loans up to $30,000+ for residential projects and much higher for commercial projects.
Customer Funding Construction Program benefits include: (1): Maximized customer credit limits; (2): Financing options for prime, near-prime and sub-prime applicants; (3): Interest-free term promotions; (4): Online merchant center that provides instant decisions* and document generation; (5): Collection of innovative e- tools such as price calculator and payment estimator; (6): Excellent customer support and training.
According to Barnard Samuel, his company offers a variety of funding programs to help any business turn into a “Cash Cow.” The funding from his company is not only limited to the Construction Industry. He can be reached by phone at 415-678-9965
We hope you enjoyed this article on “How to Turn Your Business into a Cash Cow.”
If you are in need of “Business Optimization and Funding Planning please know that we provide construction small business coaching and consulting to assure your business is growing so the loan gets repaid quickly. For $1 for one month we’ll work with you and your business to generate at least $10,000 so you know we are cable to do all that we say. This is a limited time offer.
What is the single most important problem facing your business today?
Tell me and we will help you solve it. I am a Consultant, Coach, Mentor Speaker, Author and Entrepreneur. I started working as an apprentice carpenter, journeyman, foreman, superintendent and contractor. I spent the last 20+ years of his life creating fascinating Client and Profit Doubling programs that have helped thousands of small businesses across America.
I am a former 20+ year business professor at three leading California Universities, and a small business analyst, coach and consultant. I have taught more than 10,000 students around the country.
I am an experienced Off-line and On-Line marketer business developer, public speaker and a popular Bay Area professional. I work with many of the top small businesses in America. I am the author of over 850 top rated business and marketing articles. Contact me and get ready to discover this amazing gold mine!
Check me out on LinkedIn. URL: http://www.linkedin.com/pub/michael-kissinger/4/b21/a66 I have posted many articles on getting working capital and funding on LinkedIn. I am sure they will also help you fund and grow your business. Give me a call if you would like to discuss how we can work together.
Please let me know what I can do for you.
The Business Doctor
Business Development Director
Profit Builders Inc.