Its personal!
It has taken me some study, many experiences, new learnings from others and a lot of reflection to understand the awesome power of the first sentence of Napoleon Hill's Master Work.
THOUGHTS ARE THINGS
I always had seen them as temporary, fleeting things. I now know I was ignoring one of the Universe's, One of God's, greatest sources of power. Why, one might ask, did HE endow us with free-will?
WHY was I ignoring this power source?
BECAUSE I did not yet understand the recipe. The other ingredients. How definiteness of purpose, persistency (of actions) and a burning desire became active ingredients when added to the mix. YES - I WAS A HOBBY COOK!
Sometimes, because by accident I had the mixture, a perfect cake came out. I married the object of my desire, the love of my life, my soulmate, the ying to my yang, Eileen. I took my passion for playing the game of soccer, nourished by 'Football taught by Matt Busby' to play at levels I 'ONLY' IMAGINED. I had not yet read and understand the teachings of the Master Chef - Napoleon Hill.
Another thought that sprang to mind when preparing for today's lesson - "How often have I been Mr. Darby. How often have I given up three feet from the gold?
But - have I truly given up. I am master minding with the Mentoring For Free master mind group. I am together with fellow Soldiers of Prosperity on the Million Mind March. Diane, Joe, Michael, Jane, Shana, Kristen have found me. Truly, when the student is ready the teacher appears - and I now know why.
BECAUSE I know my desire is pure I have kept on keeping on. God, my parents, my students and my Mastermind groups believe in and with me. I need to believe in myself more and give more of myself.
Not for nothing did the Sermon on the Mount teach 'Seek and ye shall find'. Truly, what becomes of the man who does not take the time, nor have the inclination to study in search of the knowledge that will lead to success.
I am not here for everybody. Like my fellow Masterminders I will be there to add the lessons from my experiences, my failures, to the pool from which the seekers will draw.
Thank you, Napoleon Hill, for the 25 years you spent distilling the experience of 25,000 people.
It is my obligation to repay you for this gift you truly 'PAID FORWARD'.
I invite you, dear reader, to join with us in study at 3:00PM US Eastern Standard Time. 208-936-3890 PIN 300300# . Contact me - prpocklington@gmail.com - if you can't make it. I'll be in touch to see what can be done to accomodate your needs.
Wednesday, June 17, 2009
Monday, June 15, 2009
Your Self-Talk - The Power Of Because
There are often negative signals that are hidden behind the word if. I came to realize this while my fellow Million Mind March tribe and I were Masterminding the book ‘The Power of the Subconscious Mind’ by Dr. Joseph Murphy.
You may be sending signals you do not wish to your subconscious mind - especially when if is used as an excuse, as in ‘if only I had …’ or ‘if only I could ….’
How about replacing the “if only ..” mentality with a “because“ statement.
As an illustration, consider the famous poem “IF” by Rudyard Kipling.
This goes
If you can keep your head when all about you
Are losing theirs and blaming it on you,
If you can trust yourself when all men doubt you
But make allowances for their doubting too,
If you can wait and not be tired by waiting,
Or being lied about, don't deal in lies,
Or being hated don't give way to hating,
And yet don't look too good or talk too wise;
If you can dream - and not make dreams your master
If you can think - and not make thoughts your aim;
If you can meet with triumph and disaster
And treat those two impostors just the same;
If you can bear to hear the truth you've spoken
Twisted by knaves to make a trap for fools.
Or watch the things you gave your life to, broken
And stop and build them up with worn out tools:
If you can make one heap of all your winnings
And risk it all on one turn of pitch and toss
And lose and start again at your beginnings
And never breathe a word about your loss;
If you can force your heart and nerve and sinew
To serve their turn long after they are gone,
And so hold on when there is nothing in you,
Except the will which says to them - Hold on;
If you can talk with crowds and keep your virtue
Or walk with Kings - nor lose the common touch,
If neither foes nor loving friends can hurt you
If all men count with you, but none too much;
If you can fill the unforgiving minute
With sixty seconds worth of distance run,
Yours is the earth and everything that's in it,
And - which is more - you'll be a man, my son.
Now try saying this out loud replacing the ifs with because.
It becomes
BECAUSE I can keep my head when all about me
Are losing theirs and blaming it on me,
BECAUSE I can trust myself when all men doubt me
But make allowances for their doubting too,
BECAUSE I can wait and not be tired by waiting,
Or being lied about, don't deal in lies,
Or being hated don't give way to hating,
And yet don't look too good or talk too wise;
BECAUSE I can dream - and not make dreams my master
BECAUSE I can think - and not make thoughts my aim;
BECAUSE I can meet with triumph and disaster
And treat those two impostors just the same;
BECAUSE I can bear to hear the truth I've spoken
Twisted by knaves to make a trap for fools.
Or watch the things I gave my life to, broken
And stop and build them up with worn out tools:
BECAUSE I can make one heap of all my winnings
And risk it all on one turn of pitch and toss
And lose and start again at my beginnings
And never breathe a word about my loss;
BECAUSE I can force my heart and nerve and sinew
To serve their turn long after they are gone,
And so hold on when there is nothing in me,
Except the will which says to them - Hold on;
BECAUSE I can talk with crowds and keep my virtue
Or walk with Kings - nor lose the common touch,
BECAUSE neither foes nor loving friends can hurt me
BECAUSE all men count with me, but none too much;
BECAUSE I can fill the unforgiving minute
With sixty seconds worth of distance run,
Mine is the earth and everything that's in it,
And - which is more – I am a man, my son.
Can you feel the power change? Can you feel the ownership change?
Use it in your self-talk. Your subconscious mind will know how serious you are. You will soon feel the difference and see the results.
You may be sending signals you do not wish to your subconscious mind - especially when if is used as an excuse, as in ‘if only I had …’ or ‘if only I could ….’
How about replacing the “if only ..” mentality with a “because“ statement.
As an illustration, consider the famous poem “IF” by Rudyard Kipling.
This goes
If you can keep your head when all about you
Are losing theirs and blaming it on you,
If you can trust yourself when all men doubt you
But make allowances for their doubting too,
If you can wait and not be tired by waiting,
Or being lied about, don't deal in lies,
Or being hated don't give way to hating,
And yet don't look too good or talk too wise;
If you can dream - and not make dreams your master
If you can think - and not make thoughts your aim;
If you can meet with triumph and disaster
And treat those two impostors just the same;
If you can bear to hear the truth you've spoken
Twisted by knaves to make a trap for fools.
Or watch the things you gave your life to, broken
And stop and build them up with worn out tools:
If you can make one heap of all your winnings
And risk it all on one turn of pitch and toss
And lose and start again at your beginnings
And never breathe a word about your loss;
If you can force your heart and nerve and sinew
To serve their turn long after they are gone,
And so hold on when there is nothing in you,
Except the will which says to them - Hold on;
If you can talk with crowds and keep your virtue
Or walk with Kings - nor lose the common touch,
If neither foes nor loving friends can hurt you
If all men count with you, but none too much;
If you can fill the unforgiving minute
With sixty seconds worth of distance run,
Yours is the earth and everything that's in it,
And - which is more - you'll be a man, my son.
Now try saying this out loud replacing the ifs with because.
It becomes
BECAUSE I can keep my head when all about me
Are losing theirs and blaming it on me,
BECAUSE I can trust myself when all men doubt me
But make allowances for their doubting too,
BECAUSE I can wait and not be tired by waiting,
Or being lied about, don't deal in lies,
Or being hated don't give way to hating,
And yet don't look too good or talk too wise;
BECAUSE I can dream - and not make dreams my master
BECAUSE I can think - and not make thoughts my aim;
BECAUSE I can meet with triumph and disaster
And treat those two impostors just the same;
BECAUSE I can bear to hear the truth I've spoken
Twisted by knaves to make a trap for fools.
Or watch the things I gave my life to, broken
And stop and build them up with worn out tools:
BECAUSE I can make one heap of all my winnings
And risk it all on one turn of pitch and toss
And lose and start again at my beginnings
And never breathe a word about my loss;
BECAUSE I can force my heart and nerve and sinew
To serve their turn long after they are gone,
And so hold on when there is nothing in me,
Except the will which says to them - Hold on;
BECAUSE I can talk with crowds and keep my virtue
Or walk with Kings - nor lose the common touch,
BECAUSE neither foes nor loving friends can hurt me
BECAUSE all men count with me, but none too much;
BECAUSE I can fill the unforgiving minute
With sixty seconds worth of distance run,
Mine is the earth and everything that's in it,
And - which is more – I am a man, my son.
Can you feel the power change? Can you feel the ownership change?
Use it in your self-talk. Your subconscious mind will know how serious you are. You will soon feel the difference and see the results.
Sunday, June 14, 2009
How did Jesus build the family business - Reflections 05 - Expanding The Organization
DISCLAIMER. I do not profess to speak for God. Everyone's relationship with their God and their godself is personal. You were endowed with your creator with free-will. It is for you to decide the relevance to you of my words.
Biblical Source
After this the Lord appointed seventy (-two) others whom he sent ahead of him in pairs to every town and place he intended to visit. He said to them, "The harvest is abundant but the laborers are few; so ask the master of the harvest to send out laborers for his harvest. Go on your way; behold, I am sending you like lambs among wolves. [Luke 10, 1-4]
Observations
So few words, so many lessons! Is this the ultimate in leveraging and networking or what?
Business relevance:
The message is sent out entrusted to pairs. Small units that can communicate directly with each other and support each other. Low communication logistics overhead.
The pairs are sent to towns he intended to visit. Advanced Planning. Might their feedback have helped identify the most efficient travel path and schedule? Remember, they were, for the most part walking.
The pairs were not the deliverers of the message, they were the preparers of the delivery. Great division of labor. Until they better understood, who better than the visionary himself to deliver the word.
How about their simple script. The message is to the Master. Presumably the most well-connected with the ability to motivate others to execute on his decisions. It tells him what is in it for him - the harvest is abundant. It leverages the resources of the master to act on behalf of Jesus' mission - send out laborers.
He prompts action - Go on your way.
And finally He sets expectations - I am sending you like lambs among wolves. No matter how good your product or service (remember He is offering the ultimate - eternal salvation) you will be challenged on many levels. How many presentations have you made where you felt you were being eaten alive? Lambs among wolves?
Think about it!
If it was good enough for God, shouldn't it be God enough for us? Pass it on.
God Blessed You - Please Take Action On His Blessings
Love in any language, straight from the heart
Thursday, June 11, 2009
On The Value Of Your Time
There is one asset that has been gifted to every person on the planet in equally measured quantities
TODAY
It is the only non-renewable asset. You can always make another $ . You can never make another minute.
YOUR TIME HAS VALUE
What can you do with time? The answer is in our language
1. You can kill time.
2. You can waste time
3. You can spend time, or
4. You can invest time.
Todays Challenge to you.
Look at what you are doing with your time - be honest
1. Don't kill it
2. Reduce the situations where you waste it
3. Spend it on things that enrich your soul and the souls of others you love
4. Always look for opportunities to invest it.
A short exercise:
1. Write down the dollar value you would expect to be compensated for your next year on the planet
2. Divide by 200 to get an hourly rate
3. Choose a single one hour activity that you do regularly
4 Ask yourself how did that return to you a greater value than the amount you came up with in step 2.
Thank you for for the time you invested with me today in reading this,
Enjoy: Time, time, time… Look around at whats become of me - as I looked around for my possibilities - I was so hard to please.
TODAY
It is the only non-renewable asset. You can always make another $ . You can never make another minute.
YOUR TIME HAS VALUE
What can you do with time? The answer is in our language
1. You can kill time.
2. You can waste time
3. You can spend time, or
4. You can invest time.
Todays Challenge to you.
Look at what you are doing with your time - be honest
1. Don't kill it
2. Reduce the situations where you waste it
3. Spend it on things that enrich your soul and the souls of others you love
4. Always look for opportunities to invest it.
A short exercise:
1. Write down the dollar value you would expect to be compensated for your next year on the planet
2. Divide by 200 to get an hourly rate
3. Choose a single one hour activity that you do regularly
4 Ask yourself how did that return to you a greater value than the amount you came up with in step 2.
Thank you for for the time you invested with me today in reading this,
Enjoy: Time, time, time… Look around at whats become of me - as I looked around for my possibilities - I was so hard to please.
Sunday, June 7, 2009
How did Jesus build the family business - Reflections 04 - His Leadership Team
THEY WILL KNOW WE ARE CHRISTIANS BY OUR LOVE
DISCLAIMER. I do not profess to speak for God. Everyone's relationship with their God and their godself is personal. You were endowed with your creator with free-will. It is for you to decide the relevance to you of my words.
Biblical Source
These are the twelve he appointed: Simon (to whom he gave the name Peter. James son of Zebedee and his brother John (to them he gave the name Boanerges, which means Sons of Thunder. Andrew, Philip, Bartholomew, Matthew, Thomas, James son of Alphaeus, Thaddaeus, Simon the Zealot [Mark 3: 16-18]
Observations:
I am fascinated, not only by the who, but also the how. As a successful carpenter Jesus would naturally have interacted with fishermen, since they would have been thriving businessmen in the Galilee of the time. Armed with his vision "Come, follow me,...and I will make you fishers of men." he gets them to leave a presumably thriving business on a bigger mission - to carry a message of Love. How powerful is that?
Business relevance:
As the president has his cabinet, successful people have their mentors, businesses have their Leadership teams. Many business owners I encounter choose to believe that they are their business. In that sense they then do become their business and it can get very lonely. More to the point, how is it supposed to survive and flourish when its creator is not there - for any reason.
Jesus instead built to last. From the beginning he selected and inspired leaders. While I have been unable to identify the professional qualifications of all the members of his team (can anybody help me out?) , one story stands out to me.
'Jesus, while teaching, encountered a tax collector (known as Matthew by some, Levi by others) and asked him to become a disciple. M/L accepted and invited Jesus for a meal with his friends. Since tax collectors were seen as villains in the society Jesus was a part of he was asked why he was having a meal with such disreputable people. I love his reply. "It is not the healthy who need a doctor, but the sick. I have not come to call the righteous, but sinners" [Mark 2:17].'
This story leads me to believe his team was selected from a variety of professions, a variety of social strata, and, most importantly, in touch with and from the target audience. Not for Jesus was the corner office, the ivory tower, the security cordon. How can anyone connect when they choose to be disconnected?
Oh, and by the way, this trait is a trait shared by the greatest creators of lasting value endeavors. Buddha, Mohammed, Ghandi, Mother Teresa, the Dalhai Lhama. The list goes on. Name your own.
If it was good enough for God, shouldn't it be God enough for us? Pass it on.
God Blessed You - Please Take Action On His Blessings
Friday, June 5, 2009
Network Marketers Special - Bruce Lee level 5 Marketing Strategies - Free
Don't take it from me - take it from Jim Rohn
Successful people invest at least four (4) hours a day working on improving themselves.
Don't take it from me - take it from Tony Robbins
You are only a minor adjustment away from the success in life that you feel is eluding you - see video
Don't take it from me - take it from the ultimate authority - Jesus Christ - to whom you should need no introduction.
Therefore I say to you, all things for which you pray and ask, believe that you have received them, and they will be granted you. - Mark 11:24 .
Many of you may have heard of my mentor, Industry Giant Joe Schroeder. If you haven't heard of him, you may have been living under a rock. I was told the same thing months ago.
He was mentor to many industry giants like Mike Dillard, Mike Litman and many others. He also created the famous "Funded Proposal" that many are using online.
If you want to learn more about Joe Schroeder feel free to google him or Click Here to learn more.
Joe has asked for my help in giving away a "SAVE ME" package FREE.
This is what you will receive
It's one booklet + CD + report and you pay only $7.87 s&h when ordering in the US. Naturally s&h is slightly more when shipping internationally.
You will be introduced to Bruce Lee level 5 Marketing Strategies.
Click here to listen now to a free call about the SAVE ME package.
If you learn by reading - just have fun with the Mechanics of Wealth Booklet and Report.
If you love listening - listen to the mind-boggling CD we threw in for fun.
ORDER HERE today
I still can't believe he's giving it away. It is such a cornucopia of creativity, such a wealth of wisdom, such a plethora of prosperity. YOU are so lucky!
Send me an email after you have devoured the feast. If it's to your taste I need to know. If it's not to your taste, I still need to know.
One last thing - since this information may well rock your world, enjoy this in preparation.
Successful people invest at least four (4) hours a day working on improving themselves.
Don't take it from me - take it from Tony Robbins
You are only a minor adjustment away from the success in life that you feel is eluding you - see video
Don't take it from me - take it from the ultimate authority - Jesus Christ - to whom you should need no introduction.
Therefore I say to you, all things for which you pray and ask, believe that you have received them, and they will be granted you. - Mark 11:24 .
Many of you may have heard of my mentor, Industry Giant Joe Schroeder. If you haven't heard of him, you may have been living under a rock. I was told the same thing months ago.
He was mentor to many industry giants like Mike Dillard, Mike Litman and many others. He also created the famous "Funded Proposal" that many are using online.
If you want to learn more about Joe Schroeder feel free to google him or Click Here to learn more.
Joe has asked for my help in giving away a "SAVE ME" package FREE.
This is what you will receive
It's one booklet + CD + report and you pay only $7.87 s&h when ordering in the US. Naturally s&h is slightly more when shipping internationally.
You will be introduced to Bruce Lee level 5 Marketing Strategies.
Click here to listen now to a free call about the SAVE ME package.
If you learn by reading - just have fun with the Mechanics of Wealth Booklet and Report.
If you love listening - listen to the mind-boggling CD we threw in for fun.
ORDER HERE today
I still can't believe he's giving it away. It is such a cornucopia of creativity, such a wealth of wisdom, such a plethora of prosperity. YOU are so lucky!
Send me an email after you have devoured the feast. If it's to your taste I need to know. If it's not to your taste, I still need to know.
One last thing - since this information may well rock your world, enjoy this in preparation.
To Buy or not to buy ... that IS the question
As their company grows, most business owners are faced with requiring additional equipment to support this expansion. So the question becomes, what is the best way to acquire this equipment? Let’s look at this from a balance sheet perspective.
There are three ways to acquire equipment.
One is to buy it from cash-on-hand. This simply depletes your cash assets, with the equipment value being added to its line item.
If you are not going to use your cash, the second way is to get a bank loan. When you do, two things happen. Firstly, the bank requires a down payment of, say, 20%. Using a $50,000 Backhoe as an example, you use $10,000 from your cash and increase the equipment assets by the $50,000. Finally, you add liabilities of $40,000 owed to the bank, with the payments you make to the bank showing up on your P/L as an expense to the business. That expense is deducted from your growth rate, but it is deductible on your taxes. So you have an asset, a liability and an expense. Why would anyone do anything else?
What if you don't want to use, or do not have, the cash for a down payment? You need another alternative.
The third alternative is for the business to lease the equipment. The parties that are involved in a lease-purchase transaction are the vendor, the lessors and the lessee. Let's first consider their roles. The vendor is the supplier of the required equipment. The lessor is going to fund the purchase and is not necessarily a bank. It could be an Insurance Company, a Pension Fund, or an individual or group of private investors. The lessee is the business with a need to make use of the equipment.
The business will first call the vendor to see how much the equipment would cost them, in our case $50,000. They can then contact a Funding Source and within a few days receive a quote as to what it would cost to lease the same equipment. Upon agreement of terms and completion of the necessary documents: the payment schedule, UCC filings etc., the lessor writes a check to the vendor for the entire cost of the equipment and the vendor is now out of the transaction. The lessor gets paid by the lessee according to the terms of the lease, which may run for 36, 48, 60 months or even longer. Using 60 months at a 10% interest rate, $925 per month is paid to the lessee.
Back to our Balance Sheet. The business is required to come up with $1,850 for the first and last payment, compared with the $10,000 required when using the bank. The $925 monthly payments show up as an expense on the P/L, just as when the money was being borrowed from a bank and are, just like a bank loan, deductible.
So what happens at the end of the lease? One common misconception is that the equipment is given back. This is not the case. Leases are frequently written such that at the end of the lease there is what is called a “put”. A “put” is a single additional payment. The “puts” can be as low as $1. You do have to make this payment, however, according to the legal lease terms. When the lessee writes that check for one dollar, the equipment is legally theirs. The equipment now becomes an asset that is paid for, free and clear, with a current value of, say, $30,000. From a tax perspective, this equipment can now also start to be depreciated.
This is a strategy that works in good economic conditions – through the limiting out-of-pocket expenses while allowing additional equipment to be available and used to accelerate the business’ growth.
The strategy also works in poor economic conditions - where often a business needs to get its equipment upgraded in the least expensive way possible in order to continue with its operations. Small wonder that in 2003 there was $223 billion worth of leasing done by American businesses, large and small.
So what is the bottom-line? Consider all your alternatives, consult with your financial professionals and let the numbers and your business plan be your guide.
There are three ways to acquire equipment.
One is to buy it from cash-on-hand. This simply depletes your cash assets, with the equipment value being added to its line item.
If you are not going to use your cash, the second way is to get a bank loan. When you do, two things happen. Firstly, the bank requires a down payment of, say, 20%. Using a $50,000 Backhoe as an example, you use $10,000 from your cash and increase the equipment assets by the $50,000. Finally, you add liabilities of $40,000 owed to the bank, with the payments you make to the bank showing up on your P/L as an expense to the business. That expense is deducted from your growth rate, but it is deductible on your taxes. So you have an asset, a liability and an expense. Why would anyone do anything else?
What if you don't want to use, or do not have, the cash for a down payment? You need another alternative.
The third alternative is for the business to lease the equipment. The parties that are involved in a lease-purchase transaction are the vendor, the lessors and the lessee. Let's first consider their roles. The vendor is the supplier of the required equipment. The lessor is going to fund the purchase and is not necessarily a bank. It could be an Insurance Company, a Pension Fund, or an individual or group of private investors. The lessee is the business with a need to make use of the equipment.
The business will first call the vendor to see how much the equipment would cost them, in our case $50,000. They can then contact a Funding Source and within a few days receive a quote as to what it would cost to lease the same equipment. Upon agreement of terms and completion of the necessary documents: the payment schedule, UCC filings etc., the lessor writes a check to the vendor for the entire cost of the equipment and the vendor is now out of the transaction. The lessor gets paid by the lessee according to the terms of the lease, which may run for 36, 48, 60 months or even longer. Using 60 months at a 10% interest rate, $925 per month is paid to the lessee.
Back to our Balance Sheet. The business is required to come up with $1,850 for the first and last payment, compared with the $10,000 required when using the bank. The $925 monthly payments show up as an expense on the P/L, just as when the money was being borrowed from a bank and are, just like a bank loan, deductible.
So what happens at the end of the lease? One common misconception is that the equipment is given back. This is not the case. Leases are frequently written such that at the end of the lease there is what is called a “put”. A “put” is a single additional payment. The “puts” can be as low as $1. You do have to make this payment, however, according to the legal lease terms. When the lessee writes that check for one dollar, the equipment is legally theirs. The equipment now becomes an asset that is paid for, free and clear, with a current value of, say, $30,000. From a tax perspective, this equipment can now also start to be depreciated.
This is a strategy that works in good economic conditions – through the limiting out-of-pocket expenses while allowing additional equipment to be available and used to accelerate the business’ growth.
The strategy also works in poor economic conditions - where often a business needs to get its equipment upgraded in the least expensive way possible in order to continue with its operations. Small wonder that in 2003 there was $223 billion worth of leasing done by American businesses, large and small.
So what is the bottom-line? Consider all your alternatives, consult with your financial professionals and let the numbers and your business plan be your guide.
Wednesday, June 3, 2009
How do YOU define wealthy
As the founder of M7Enterprises, with a mission "to build health wealth and wealth health in the communities we serve" I have frequently been asked to define wealth. In a recent Master Mind session with Joe Schroeder and my Million Mind March colleagues the following definitions were postulated:
1. You are wealthy when you have a harsh resistance both to laziness and to a lack of momentous increase.
2. You are wealthy when you can become more life, inspire more life, sell more life.
3. You are wealthy when you are in progressive forward motion toward acquiring the luxury of environment.
4. You are wealthy when you have the freedom to express yourself naturally and add lucid and concentrated value to thousands of lives.
5. You are wealthy when you believe that you don't have to get it right, you just have to get it going.
I wanted to share them further since I found them applicable to wealth in all its forms - spiritual, health, financial etc.
Please feel free to contact me with any additional insights.
1. You are wealthy when you have a harsh resistance both to laziness and to a lack of momentous increase.
2. You are wealthy when you can become more life, inspire more life, sell more life.
3. You are wealthy when you are in progressive forward motion toward acquiring the luxury of environment.
4. You are wealthy when you have the freedom to express yourself naturally and add lucid and concentrated value to thousands of lives.
5. You are wealthy when you believe that you don't have to get it right, you just have to get it going.
I wanted to share them further since I found them applicable to wealth in all its forms - spiritual, health, financial etc.
Please feel free to contact me with any additional insights.
Monday, June 1, 2009
Is your business cashflow clogged. Thinking of banks, venture capital? ... There is another way!
Historically, when businesses are in need of cash they have turned to traditional funding sources. The most common of which being a bank loan or line of credit. Many otherwise viable companies are, however, turned down by conventional lenders due to their limited credit history, lack of personal or corporate net worth, excessive outstanding debt or their assets being encumbered by liens. This is especially true in their first four years of business, which is, coincidentally, their time of greatest growth.
When these newer businesses must seek other financing, the next most common option is the search for venture capital. This may be as simple as taking on a silent partner, or locating an active partner through so-called ‘Angel Capital’ networks. In this case the owner is selling a piece of their business and their control in exchange for working capital.
Both the use of banks and of venture capitalists create debt and involve a decision process that is based on the companies credit-worthiness and can take anywhere from 60 to 180 days to secure funding, during which the owners’ focus may be taken away from their core business.
The good news is that the above-mentioned funding sources are not the only options. There is another way. Record numbers of fast growing companies are turning to funding sources offering alternative programs to solve critical cash flow problems, problems that can effect or prevent contract execution, business and/or facilities expansion, meeting payroll, taking advantage of cash discounts on purchases and even for acquisitions.
One example of such a program is the selling of a company’s interest in invoices to a private funding source at a discount, which is known as a factoring. Factoring’s roots are in the garment and textile industries, however, since the 1990s there has been a rapid growth in such factoring companies – resulting in increased price competition and making this form of increasing working capital efficiency available to small to medium sized businesses in nearly all industries that may not qualify for traditional loans or grants.
The most important aspect of this method of financing is that the credit criteria are based not on the company’s ability to pay but instead on the credit worthiness of their clients. Through the utilization of this method of financing these businesses can compete for large contracts and business that might otherwise have been beyond their reach.
Consider, for example, the case of a manufacturing company purchasing the raw materials for production on a just-in-time basis. Its sales department is rapidly increasing orders, the manufacturing division is cranking out the product and the freight handler is delivering the orders on time. If the customers, however, are not paying in a timely manner, this will result in a large portion, if not all, of the cash flow being tied up in receivables and therefore limiting growth.
In cases such as this, the businesses are turned down by traditional lenders due to their lack of lienable hard assets and they find themselves searching for the funds needed to continue their growth.
By using the services of a factor they can get what amounts to a continuously expanding line of credit, continue to take on and fill orders, and expand as planned. By combining their bank line of credit with this factoring line of credit, a business can be optimally positioned to take advantage of opportunities that present themselves in their marketplace and therefore accelerate their growth.
If you know a business that is experiencing clogged cash flow call me at 610-781-2392 or email prp@m7enterprises.biz because adding value is what we do.
When these newer businesses must seek other financing, the next most common option is the search for venture capital. This may be as simple as taking on a silent partner, or locating an active partner through so-called ‘Angel Capital’ networks. In this case the owner is selling a piece of their business and their control in exchange for working capital.
Both the use of banks and of venture capitalists create debt and involve a decision process that is based on the companies credit-worthiness and can take anywhere from 60 to 180 days to secure funding, during which the owners’ focus may be taken away from their core business.
The good news is that the above-mentioned funding sources are not the only options. There is another way. Record numbers of fast growing companies are turning to funding sources offering alternative programs to solve critical cash flow problems, problems that can effect or prevent contract execution, business and/or facilities expansion, meeting payroll, taking advantage of cash discounts on purchases and even for acquisitions.
One example of such a program is the selling of a company’s interest in invoices to a private funding source at a discount, which is known as a factoring. Factoring’s roots are in the garment and textile industries, however, since the 1990s there has been a rapid growth in such factoring companies – resulting in increased price competition and making this form of increasing working capital efficiency available to small to medium sized businesses in nearly all industries that may not qualify for traditional loans or grants.
The most important aspect of this method of financing is that the credit criteria are based not on the company’s ability to pay but instead on the credit worthiness of their clients. Through the utilization of this method of financing these businesses can compete for large contracts and business that might otherwise have been beyond their reach.
Consider, for example, the case of a manufacturing company purchasing the raw materials for production on a just-in-time basis. Its sales department is rapidly increasing orders, the manufacturing division is cranking out the product and the freight handler is delivering the orders on time. If the customers, however, are not paying in a timely manner, this will result in a large portion, if not all, of the cash flow being tied up in receivables and therefore limiting growth.
In cases such as this, the businesses are turned down by traditional lenders due to their lack of lienable hard assets and they find themselves searching for the funds needed to continue their growth.
By using the services of a factor they can get what amounts to a continuously expanding line of credit, continue to take on and fill orders, and expand as planned. By combining their bank line of credit with this factoring line of credit, a business can be optimally positioned to take advantage of opportunities that present themselves in their marketplace and therefore accelerate their growth.
If you know a business that is experiencing clogged cash flow call me at 610-781-2392 or email prp@m7enterprises.biz because adding value is what we do.
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