Tag: Hoarding-Installation-firm-Pune

Credit Cards Filling the Cash Flow Gap for Small Businesses

Last week the House Committee on Small Business examined the role of credit cards in financing small business. Without capital, small businesses can’t grow, and the American economy loses out on their important contributions.  In the current economic climate, however, small firms are finding it difficult to secure affordable financing. And the reality is that if you don’t look for cash when your business is flourishing, you sure won’t find it during a downturn which could cause you some serious cash flow problems.

“When a small firm can’t buy equipment, or has to lay off its workers, our entire economy suffers,” said Chairwoman Nydia M. Velázquez. “These businesses are the principal drivers of our economic growth, but without capital they can’t lead us back to recovery.”

In a recent Federal Reserve survey of senior loan officers, 65% of respondents reported tightening lending standards in the first quarter of 2008.  The impact of this move is compounded by federal loan programs — such as the SBA’s 7(a) initiative — which are increasing fees and making it more difficult for entrepreneurs to get financing.  Witnesses at the hearing noted that because SBA’s programs are falling far short of their intended purpose, they are having to turn elsewhere to meet their capital needs.  This has contributed to small firms’ increased use of credit cards — up 14% in the past five years alone.
 
“With fewer options in the private market, and in the midst of an economic downturn, it is inexcusable for SBA to make it tougher for small firms to get capital,” said Chairwoman Velázquez. “Affordable financing means access to opportunity.  No one understands that better than a small business owner.  That’s why many are turning to plastic — to keep their businesses and our economy going.”
 
Credit cards have always been a convenient means of payment for small firms — expediting transactions and allowing for considerable ease and security.  Witnesses also discussed how entrepreneurs leverage use of these financial tools, and said they are an increasingly important part of their financial strategy. The testimony also underscored that 70% of small businesses pay off their full balance each month. That gives them the equivalent of 30-day interest-free loans, which makes charging purchases all the more practical. (That’s a good thing!) Witnesses stressed that this is just one example of how credit cards give them the flexibility they need to run their businesses.
 
“Our small firms are facing a considerable financing gap. Viewing credit cards as the tools they’ve become for small firms just makes sense,” said Chairwoman Velázquez.  “We must strengthen what is working in the current system and correct what is not.”

What about you? Have your financial sources dried up? Are you using your credit cards for business cash flow purposes? Leave me a comment. 

The Value of Management Consulting

Explaining a complex issue in a straightforward way is a management consultant’s value. Making the complex more so is not. Sometimes we see this. Additionally, taking something simple and making it a Gordian knot is what our politicians do, certainly a management consultant should not.

The goal of our firm is to keep its owner (me) mentally engaged in assisting contractors while providing for my loved ones. It is our informal mission statement. Not complex but then again, see the first paragraph.

What Stevens Construction Institute Inc. does is not a mystery, it shouldn’t be. We are not “cool” consultants. We are “good” consultants. Our heart is in this business for the correct reasons. We love it and we like to be helpful.

What is interesting is that all our clients are people of good character. We don’t work with anyone who is continuously angry, contemptuous or is a detriment to people around them. As you know, I don’t choose the clients, but I think the (point of the) previous paragraph helps (Yes, I have fired a couple over the years). However, all of our clients are good contractors and people.

What is also interesting, I don’t know why this is so, all of the construction firms we work with are first generation contractors. These established firms are not ones started by a previous generation and now are controlled by another one. Don’t ask me why but, I find it interesting.

One of our services is process improvment. Our consulting and subsequent documentation of process re-engineering is based on the Lean Approach. Again, no mystery. Lean works well when contractors and their staffs try to improve their business operations. As I don’t work as a technical building consultant, I strongly believe any business benefits from Lean. As in all models, it doesn’t fit our industry exactly, but it is the best. I don’t know of an equal.

If you have read any writings on Lean and you have read my book, Managing a Construction Firm on Just 24 Hours a Day, (McGraw Hill, 2007), you can see the parallels. When I wrote the book in 2005-2006, it was more intuitive and observation based from my years in construction. A few friends have suggested that the book “is the practical Lean approach to construction contracting”. Once I read all I could on Lean, I agree.

You are probably curious about one question: Yes, I bought a 2008 Toyota Tundra. How can you not be a fan of the company after you have read about Lean? I don’t sell for Toyota, I just love the truck. To appreciate this fully, you have to also know that both my grandfather and great grandfather were plant managers for General Motors. Yes, I believe in Lean.

More tangibly will be my 2009 book that will be my interpretation of Lean for construction contracting. Accordingly, we use established and well accepted tools in our consulting work. Effective ones such as Moveable Type, Tool Book, WebEx, Zoomerang, Constant Contact, DISC, Media Temple, Lombardi Blue Print, SecureWebs and the like. Less mystery for my clents. Remember, it is the content or knowledge that makes a consulting firm a value, not the presentation (sizzle). Addtionally, if (and when) I die, my clients can pick up where I left off. This is the spirit of Lean.

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Reasons why your business needs direct mail advertising 

Home » Business Tips » Reasons why your business needs direct mail advertising 
June 25, 2016 Frank Bullock Business Tips
In such a competitive market, it is tough for businesses to reach a higher level of success and to exceed competitors. Among the various advertising strategies you can use to push your business in the right direction, direct mail advertising is certainly one of the best, and not the most expensive one. By resorting to one of the many Orange County advertising agencies, you can take one step towards increasing your number of clientele, and thus profits. If you are wondering why this strategy is more beneficial than other marketing methods, then here are the top reason why you should give this option a try:

There is a higher chance people will use your coupons

When you are just starting out, you need to use every strategy possible to gain customers. Offering coupons and discounts is a smart move to make, because people are always hunting for a good bargain. However, sending online coupons via e-mail is not always successful, and this is why you should use direct mail. When people receive a coupon in their mail, the chances of them using it are much higher. Take Ozen Sushi coupons, which have are always more than welcomed by their customers.

Inbox overload

Nowadays, when everybody is with a smart device in their hand, sending advertising e-mails might seem a good idea at first, but in reality, this strategy is not as effective as expected. Because people receive countless emails daily, there is only a slim chance they will read yours. Your customer’s inboxes are overloaded with different offers, news and personal communication, so your opportunity lies in physical mail, which offers a greater chance for your piece to be read.

Express the reliability of your business

When using direct mail advertising, you will show prospective customers your reliability and professionalism. Because you are investing in advertising, people will be more prone to trust you, and perhaps resort your services. Direct mail advertising gives your business a personal trust and increases customer trust.

As you can see, direct mail advertising can prove to be extremely advantageous for your business. Because this option gives you the possibility to attract more prospective customers, it is imperative to do everything by the book. It is recommended to work with an advertising agency that can offer you the high quality advertising services you require. Give this method a go, and see how fast your profits will increase.

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