How to Build a High-Tech Contracting Business without Loads of Cash.
 |
Free Download - How is the Attitude – Have you Amazed those around you yet? By Manny Nowak |
Now I want you to try and explain this simple concept to the large companies in America and world wide. They cannot seem to understand that as a small business I need to get paid faster. As a small business I need to turn my money quicker. As a small business I am not their bank.
The answer from them, however, is simple, “if you cannot hang, then we have many people knocking at our doors every day”. You either deal with the terms we give you, or you drop out.
As a small business, we love large clients. The work is plentiful, the rates are great, they keep asking for more. Yet as a small business we only have so much cash.
In the high tech contracting business this can be a total nightmare. You can have great big contracts, many sub-contractors and not enough cash. It really stinks when you have to turn down work because you know you cannot pay the sub-contractor in the time they need to be paid. Your bank will not give you any more on you credit line, your credit cards are maxed out. And you just cannot handle anymore debt.
So how is a small business to grow? Is this why so many small businesses never do grow, they stay small forever. Do you have to let the work go to some other, large firm? The answer should be, “no way, I am a business person and I want to make money, I have to find a way to make this happen”.
In comes factoring. The knight on the white horse. For many years it was not thought of well, it was the first step to bankruptcy. But not anymore. Now for a minor fee you can complete. You can get the cash you need. You can keep on growing.
Very simply put.
You hire a new sub-contractor at $75 an hour, billing her at $100.
She works for you 40 hours a week, billing $4000.00
She gets $3000 a week.
She bills you every 2 weeks with a 2 week due date.
You bill your client every 2 weeks and he takes 60 days to pay.
No problem
You take your invoice and factor it, getting 80% of the invoice in a week.
That covers your cost and you still have a little left.
With factoring, you can grow your business to great new levels of success.
Let’s look at another simple example:
If you contract people at $75 and hour and bill them at $100 an hour
You bill the client $4000 a week and it costs you $3000 a week.
You make $1000 per person per week.
If you can get 10 of these on board you can be generating 10k a week.
But you have to pay 30k a week to them.
Now if your client pays in 60 days and you have to pay in 15, you are in trouble and you cannot grow.
But, it you factor, you get your money in plenty of time to pay the people and just wait on the profit.
If you want to grow your business, and money is an issue, you need to look at factoring. Simply put, this is a great tool to help you grow.
Manny Nowak is a developer of tools to help the entrepreneur and business owner to grow and build their business. To learn more, click here.
How to Build a HighTech Contracting Business without Loads of Cash - To learn more about this author, visit Manny Nowak's Website.
Like this article? Share it with your friends
| Article Tags: |
 | |
 |
No article feedback found. |
| |
Leave Your Feedback |
 | |
| |||
|
I've created this section on my site to share some of the incredible tools that I've used to build my business. I hope you too can benefit from them and look forward to hearing your feedback on the reviews! - Visit Evan Carmichael's Website |
|||
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 |
|||
Dianne CramptonDianne Crampton is North America's leading authority on team culture. She is an author and professional speaker and president of the leading team culture consultancy, TIGERS Success Series, Inc. Crampton 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 or to subscribe to TIGES Free monthly e-newsleeter go here. Dianne's contribution to the 2010 Pfeiffer Consulting Journal (an imprint of John Wiley and Sons Publishers) entitled TIGERS Hearted Teams is available in November 2009. Her new book TIGERS Among Us: Winning Business Team Cultures And Why They Thrive, Three Creeks Publishing will release in March 2010. To receive publishing discounts, subscribe to the free TigerTracks Newsletter here. - Visit Dianne Crampton's Website |
|||
Michiel JonkerAs a Certified Information Systems Auditor, Michiel assists businesses in a professional capacity by evaluating the threats to their businesses. He acquired the necessary knowledge, skills, and techniques to minimize a business owner’s risk of business failure and to maximize his chances of high growth and success. He strongly believes that you CAN maximize your chances of business success, by implementing the business solution he has advocated for more than 12 years in your business plan and planning. Michiel has decided to share his experience with business owners by putting almost everything he knows in a business plan and survival guide (compiled in an e-book format) and written as a high growth SMB coaching course for SMB business owners, directors and managers - titled as the “Survival Kit for Small and Medium Businesses - Profit from your Business Risks!” According to Michiel, his goal was to add new techniques to a business owner’s business planning survival kit and instruct him or her in using these in the future - without any help from a consultant! For more information about the benefits of implementing profit protection planning in your business, please visit: http://www.business-around-the-globe.com - Visit Michiel Jonker's Website |
|||
David BarrDavid Barr is the President of Venture Opportunities, Inc. David has been a professional business broker/intermediary since 1980 focusing on General Business Brokerage and Mergers and Acquisitions representing client transaction value from $400,000 to $20,000,000. Mr. Barr has handled the sale of over four hundred and fifty companies. David earned a university degree from the State University of New York majoring in economics and business. David holds the Mergers and Acquisition Master Intermediary and the Certified Business Intermediary designations from the International Business Brokers Association. He is also a Senior Business Analyst and a Texas licensed Real Estate Agent. For more information about David and Venture Opportunities, visit www.bizdealmaker.com. - Visit David Barr's Website |
|||
Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
|||
Casey GollanCasey Gollan, Business Coaching & Mentoring Programs. Add $1 Million to $10 Million in the next 1 to 3 years. Since 1996 Casey has to added hundreds of millions of dollars to businesses. Watch a free video see client results Business Coaching website. - Visit Casey Gollan's Website |
|||
Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
|||
|
To learn more about the Evan Elite Author Program please contact us. | |||
 | |
|  |
Subscribe to Manny's articles
 | |
|
|  |
 | |
|
| |
 | |||||||
|
 | ||
 |
||
|
||
 |
||
| ||
 |
| Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details. |
|
|
 |
| Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media |
|
|
 |
|
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
|
|
|
 High Quality Sales Leads How To Win New Business Power of Concentration Business Financing Future Networking |
|
 | ||
 |
Fortune Hunters
CBC Entrepreneur TV | |
 |
Top Social Business Blogs
Top Social Entrepreneur Blogs | |
| ||
 | ||||
| ||||
|
 | ||||
| ||||
|
|
 | ||||
| ||||
|
 | ||||
| ||||
|
|
|
|||||||||
 |
|
|
|
