It’s Time to Decide: Grow or Retrench?

Right Professional - Copy  BY DAVID ELLER  |  November 4, 2016  |

Financial resources are available and easy to implement.  growth chartThe competition is paralyzed by indecision. The worst thing you could do right now is play it safe and retrench. While retrenchment is an understandable reaction to negative economic, political or security issues, many businesses are accepting it as a management attitude and habit. One of the important secrets for making it through the tough times is to downsize your cost base, increase liquidity, without downsizing your future growth potential. Retrenchment can buy you time but it cannot provide a future with growth possibilities.

Many transportation businesses are experiencing very tough times with increased competition, rising costs, and eroding cash flow. How long can a business have deteriorating growth in sales, profitability and cash flow? The good news is that this trend can, and will be reversed with a business growth plan—one step at a time.

QUESTIONS:

1. Does your business need to retrench or grow?

2. How can you increase revenue with a minimum of capital outlay?

3. Do you need to improve your management performance and satisfaction?

4. Is there a way to decrease expenses while improving cash flow?

5. When do I start my financial growth plan?

All you have to do is establish a financial growth strategy for properly focusing, organizing and directing your business, your employees, and suppliers.

Remember that financial planning for business growth is a process, not an event.

Let’s get growing!

Right Professional - Copy

David Eller is the President of Finance Guy, a company specializing in helping businesses to implement the best strategies for achieving new opportunities and growth. David is a national writer for the Association for Corporate Growth, Orlando Business Journal and others. You can reach him at deller@finance-guy.com.

Copyright © 2016 Finance Guy, LLC. All rights reserved.

Take Focused Action

Right Professional - Copy   BY DAVID ELLER  |  September 2, 2016  |

One of the important secrets for making it through

tough times is to increase your liquidity and your                      image with magnifying glass

future growth potential

 

The year 2016 has presented many management challenges and opportunities.  For example, many businesses have sluggish or uncollectable receivables.  Some businesses have been so badly wounded by the recession that they are unable to qualify for bank credit loans because of their credit issues.  How can a typical business in the transportation survive and prosper during this very bumpy time?  We can ignore the situation, hope for the best or get persistent about turning new liquidity into new money making growth opportunities.

Instead, let’s focus our attention on a new financial strategy for improving liquidity such as receivables and others.  If done correctly, this could become a powerful source of new cash flow and profitability.  The same approach could be used for other parts of the business financing plan.

How long can a business have deteriorating growth in sales, profitability, and cash flow?  The good news is that this trend can, and will, be reversed one step at a time with an integrated approach for improving each part of the business. 

Liquidity is the foundation for improving new growth.  The fundamental assumption of every business is to make money.  Money provides the grease for the liquidity engine and gears to turn.  Today,  business owners are presented with unique problems from increasing competition and rising costs to become profitable businesses.  The focus in improving liquidity is to generate money and improve profits.  All of the financial improvements will appear on the bottom line.

In our current business environment, we need to remind ourselves that we are living in a world with unlimited business development opportunities.  If you focus on retrenchment and ignore short-term cash flow improvements, your business will never emerge from the doldrums and will  continue to do business unprepared and without confidence.  Liquidity is critical!  Now is the time to perform the necessary homework to discover your issues and ideal opportunities.  Maybe it is a change of attitude –yours.

 

NEXT STEP QUESTIONS:

1. What is your plan for dealing with the sluggish economy and its future challenges?

2. What are some small steps that you can take to improve liquidity and cash flow ?

3. Are you willing to dig for measurable results?image way to growth alternatives

4.  Do you have a budget?

5.  Do you have a cash flow budget and forecast?

 

One final thought—take action.  The year 2016 has shown us that our business revolves around money.  When it becomes tougher to make money, the clue is to lean down, dig in and play a tougher game.  By taking focused action, we can make a difference in our business future financial success.  Good stewardship will all the “profit seekers” to contribute to new sources of human energy and money. 

Remember that planning for business growth is a process, not an event.  Let’s get growing! 

Look for new articles about focusing and improving your financial growth strategies.

 

Right Professional - Copy David Eller is the President of Finance Guy, a company specializing in helping businesses to implement the best strategies for achieving new opportunities and growth. David is a national writer for the Association for Corporate Growth, Orlando Business Journal and others. You can reach him at deller@finance-guy.com.

Copyright © 2016 Finance Guy, LLC. All rights reserved.

Execute The Business Growth Plan

BY DAVID ELLER  |  May 6, 2016  |

 

truck driver happy

QUESTIONS:

1. Does your business have a strategy for growth?

2. Is there a way to grow without borrowing money?

3. Do you need to overcome credit damage from the recession?

4. Do you know how to improve liquidity?

5. Have you tried?  Given up?  Want to be restored and begin again?

 

The planning process can help you view your business in such a way that you will discover your business growth opportunities and secrets for improving cash flow.  The results are  increased sales revenue, decreased expenses, higher profits, and improved cash flow.

Organizing a financial growth plan can be an effective process in discovering untapped business strengths and weaknesses in your business.  The analysis will help you identify “hidden resources” such as “sleeper financing ideas” and innovative new marketing avenues such as the Internet.  While this is happening, the problems that are causing inadequate cash flow and producing obstacles will become more obvious.  The business growth plan will also define new strategic objectives, goals, and marketing programs which will help you focus your energy and your resources.  The review of the operational and revenue collection process will reveal new management practices and systems that are draining the business. For example, there are numerous techniques for accelerating accounts receivables while reducing credit risk exposure. 

 A plan can be the most important factor in your business growth and cash flow improvement success.  The business growth plan is necessary to document your objectives, goals, sources of stress, and the need for new practices.  Your strategic growth plan should detail each step of the process.  When you apply the principles and concepts of a business growth plan to your business, you will develop a  total system for improving growth and cash flow.

 In our current questionable economic environment, we need to remind ourselves that our world has with unlimited business development and financial opportunities.  We live in a great country that will support new ideas and innovation.  If you focus on retrenchment and  ignore short-term cash flow improvements, you business will emerge from the doldrums and will continue to do business unprepared and without confidence in the future.  Now is the time to do the necessary homework to discover your “hidden financial sleepers” in a strategic audit.  Maybe you need to factor your receivables, lease equipment, or one of the other strategies.  Maybe it is just a change in attitude-yours?

 You may already have most of the resources that are required to turn your business into one that is efficient and highly profitable.

 All you have to do is establish a business growth plan..

 Remember that planning for business growth is a process, not an event. 

Let’s get growing!

 

Right Professional - Copy David Eller is the President of Finance Guy, a company specializing in helping businesses to execute the best strategies for achieving new opportunities and growth. David is a national writer for the Association for Corporate Growth, Orlando Business Journal and others. You can reach him at deller@finance-guy.com.

Copyright © 2016 Finance Guy.  All rights reserved.

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