Victim of his own success
Victim of his own success
“I started my own business about 18 months ago. It was fairly slow going at first but in the last 7 or 8 months business has really picked up.
Initially I used by savings to finance the start-up and subsequently I have ‘raided’ my pension fund that I had built up while working for someone else and prior to opening my own business. What I’m seeing is that as my business grows it needs more working capital to constantly fuel that growth.
Recently I have even resorted to financing some business purchases with credit cards and now I find that I have some permanent credit card debt. I was somewhat reluctant to call my bank for help as I didn’t know what sort of reception I would receive. In the end I made the call only to find out that I didn’t really qualify for any programs, seems that I don’t have enough track record and naturally my financials don’t meet the bank’s criteria at this point in time. They suggested that I slow down my expansion plans, reject some of the orders and basically plateau out my business at a lower level.
They did suggest that most banks would take the same position as theirs and that I should explore the secondary finance market place. They talked about such things as factoring, purchase order financing, invoice discounting and venture capital. I don’t know too much about any of these areas so I did the research and found out that I’m too small for the factoring companies that I contacted. My business, it seems is not well suited to using purchase order finance as a growth approach.
The venture capital people that I spoke to all wanted a business plan, several years’ financial statements, cash flow projects and more-none of which I had. For me it turned out that invoice discounting- a service that I had never heard of- was the only viable solution.”
That’s how many of our clients arrive on our doorstep-either through patient research or because their bank recognized their need and our ability to help and so made the introduction.
Invoice discounting allows small growing companies the luxury of basically turning their business into a ‘cash on delivery’ business. Once the cash flow is accelerated the growth of the business can easily be handled and financed.
In the current economy made small and medium sized businesses will become victims of their own success. They can create the product or service, they delivery it but as the order book grows they can’t finance the growth and either have to slow down or go out of business.
With services such as invoice discounting there are options to help small businesses climb to the next plateau.
Victim of his own success - To learn more about this author, visit David Banfield's Website.
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This is a scenario we hear many times every week from our potential clients. The story goes something like this.
“I started my own business about 18 months ago. It was fairly slow going at first but in the last 7 or 8 months business has really picked up.
Initially I used by savings to finance the start-up and subsequently I have ‘raided’ my pension fund that I had built up while working for someone else and prior to opening my own business. What I’m seeing is that as my business grows it needs more working capital to constantly fuel that growth.
Recently I have even resorted to financing some business purchases with credit cards and now I find that I have some permanent credit card debt. I was somewhat reluctant to call my bank for help as I didn’t know what sort of reception I would receive. In the end I made the call only to find out that I didn’t really qualify for any programs, seems that I don’t have enough track record and naturally my financials don’t meet the bank’s criteria at this point in time. They suggested that I slow down my expansion plans, reject some of the orders and basically plateau out my business at a lower level.
They did suggest that most banks would take the same position as theirs and that I should explore the secondary finance market place. They talked about such things as factoring, purchase order financing, invoice discounting and venture capital. I don’t know too much about any of these areas so I did the research and found out that I’m too small for the factoring companies that I contacted. My business, it seems is not well suited to using purchase order finance as a growth approach.
The venture capital people that I spoke to all wanted a business plan, several years’ financial statements, cash flow projects and more-none of which I had. For me it turned out that invoice discounting- a service that I had never heard of- was the only viable solution.”
That’s how many of our clients arrive on our doorstep-either through patient research or because their bank recognized their need and our ability to help and so made the introduction.
Invoice discounting allows small growing companies the luxury of basically turning their business into a ‘cash on delivery’ business. Once the cash flow is accelerated the growth of the business can easily be handled and financed.
In the current economy made small and medium sized businesses will become victims of their own success. They can create the product or service, they delivery it but as the order book grows they can’t finance the growth and either have to slow down or go out of business.
With services such as invoice discounting there are options to help small businesses climb to the next plateau.
Victim of his own success - To learn more about this author, visit David Banfield's Website.
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Dianne CramptonDianne Crampton is an executive leadership coach, team consultant, author and president of TIGERS Success Series, Inc. Dianne has been helping CEO's and Executives connect their employees to their core values and goals for over 20 years using the trademarked TIGERS team culture process, which stands for trust, interdependence, genuineness, empathy, risk and success. To download a free white paper on behaviors that build strong teams and behaviors that will predictably tear them down go here. - Visit Dianne Crampton's Website |
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Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
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Linda RichardsonLinda Richardson is the Founder and Executive Chairwoman of Richardson, a global sales training and performance improvement company. As a recognized leader in the industry, she has won the coveted Stevie Award for Lifetime Achievement in Sales Excellence and she was identified by Training Industry, Inc. as one of the “Top 20 Most Influential Training Professionals.” Ms. Richardson is credited with the movement to Consultative Selling and is the author of ten books on selling and sales management, including Sales Coaching — Making the Great Leap from Sales Manager to Sales Coach, and Stop Telling, Start Selling. She teaches sales and management at the Wharton Graduate School of the University of Pennsylvania and the Wharton Executive Development Center. Linda is a frequent speaker at industry and client conferences, has been published extensively in industry and training journals, and has been featured in numerous publications, including The Wall Street Journal, Forbes, Nation’s Business, Selling Power, Success, and The Conference Board Magazine. Learn more about Richardson's sales training and performance improvement solutions at http://www.richardson.com web - Visit Linda Richardson's Website |
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