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5 Places to Find Cash for Your Business Today

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We have a friend who is setting sales records in her business. However, she recently faced a severe cash crunch. She felt overwhelmed and discouraged, to the point of giving up. She was scared. What should she do?

We told her to find the low-hanging fruit!

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When you’re faced with a cash crunch, think about all the places, prospects, and possibilities where you could get cash today. Then spend your time on the things most likely to pay off TODAY.

5 things to understand about this strategy

#1 – Long-term strategy
This is not a good long-term strategy – in fact, it distracts from it! However, when survival is the issue, who cares? Survive today so you can thrive tomorrow.

#2 – Perceptions
This strategy can create misperceptions with customers, employees, vendors, and investors. For example, customers may expect discounts if you offer them frequently. They’ll sit back and wait for the next one.

#3 – Frequency
If it happens occasionally, perhaps seasonally, that may be okay. Even then, you should plan for those occasions in advance. If you’re in this position frequently, it’s probably a sign of a bigger problem.

#4 – Financial statements
To find the real problem, understand your financial statements. What are the numbers telling you? How can you prevent this from happening again? Is it a short-term problem? Or do you need to make some adjustment for the long-term?

#5 – Mindset
Get over any reluctance to cut special deals. Some people really struggle with this. For example, they find it hard to sell inventory at less than cost. But if it’s not selling at its current price, it’s not worth its current price! Mark it down so it moves and you get the cash you need!

5 places to find cash today for your business

#1 – Call people who owe you money.
See when they will commit to paying. Consider a discount if your situation is severe enough.

#2 – Contact customers.
Find the customers who are the far along in the sales cycle. Follow up on proposals you’ve already made. Once again, if your situation dictates, offer them a discount for signing on the dotted line and paying today.

#3 – Work your contacts for referrals.
Who do they know that might do business with you? Tell them you have a special deal that you want to share with as many people as possible.

# 4 – Sell assets you don’t need any longer.
They’re costing you money sitting around. This includes inventory as we discussed earlier. Also think about your receivables. If you have customers with good credit, you may be able to sell your receivables to a factoring company.

#5 – Borrow.
This is similar to #4, only here you use your assets as collateral for a loan. You have a short-term problem; get a short-term loan!

One final tip – don’t appear desperate. People do business with successful people. So don’t present it as your problem; show them an opportunity.

Our bigg quote today is unclaimed, but still good.

“Money is not the most important thing in the world. Love is. Fortunately, I love money.”

And absence makes the heart grow fonder!

Next time, we’ll discuss six factors that will help you succeed when opportunity knocks. Until then, here’s to your bigg success!

 

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How Do You Determine the Asking Price for Your House?

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By Bigg Success Staff
03-11-08

Life Changes

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Determining the initial asking price for your house is an important decision. If you set it too low, you may leave money on the table. If you set it too high, potential buyers may just pass you by.

We’ve said before that we highly recommend selling your house through a good realtor. They’ll earn every penny you pay them. Helping you determine your asking price is one of the ways they’ll do it.

5 things you need to know to determine your asking price

#1 – Time on market
Your realtor will know about how long it takes, on average, to sell a house in your market. This is good information to have. If it fits with the schedule you have in mind, you can price with the market. If you want to sell it faster, consider setting your asking price a little lower than you otherwise might.

#2 – Spread between ask and sell
Most buyers assume that your asking price is not your selling price. Your realtor should be able to give you an idea of how much sellers are reducing their asking prices to move their home. If you set your asking price much higher than that assumed spread, buyers will move on without even looking at your place.

#3 – Comparable transactions
How much are sellers getting for houses like yours? Your realtor will look at actual sales of houses like yours so you get a feel for the market in which you’ll be competing. This is probably the single most important thing for you to understand to set your price appropriately.

#4 – Comparable listings
You also need to understand how listed houses like yours are currently priced. That’s what your buyers will see. Buyers see a lot of houses; you only see one. They get to know the market relatively quickly.

Also, try to get a feel for who the sellers are. If there are a lot of empty houses on the market, you’ll know that you’re competing with investors, homeowners who have already moved on, and financial institutions who have repossessed the house. They are likely to discount more heavily than your typical homeowner.

#5 – Price levels
Finally, talk to your realtor about strategies. Sometimes there are price points that heat up – houses selling in a certain price range are in demand. This will help you determine if you should put your house on the market at it is or if it might pay to do a little work before you list it.

Your realtor works for you. They are in the market every day. They know it. However, they can only make recommendations. You have to make the final decision on price.

Hear today's lesson and laugh on The Bigg Success Show.

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Be Dashing While Dining

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Bigg Challenge: We recently received an e-mail from one of our newsletter subscribers. Brett is raising money for his business. He’s planned a dinner meeting with some potential investors. He wants our tips to make sure his dinner is a bigg success.

Bigg Advice: Let’s start with two pieces of general advice on how to be dashing while dining.

  • Do the little things well. Above all else, be yourself. That’s assuming you are respectful and sincere!
  • Be the leader. You’re the host; they’re the guests. Lead them through the evening.

Now, let’s look at some specifics.

  • Before dinner
    You should choose the restaurant. Try to determine their preferences – favorite restaurant or type of food. But if you can, balance that with your own. If you have a place you know you’ll get great service, go for it!

    Get there early. You set the appointment, so don’t be late. If you’re late, you’re saying to your investors that your time is more valuable than theirs.

    Arrange to pay the bill away from the table. Yes, you’re paying the bill. After all, you’re the one trying to make the sale!

    On the show, George talked about a businessman who wanted to buy a company. The businessman met the seller and they began negotiating. As day turned to night, they reached an impasse. They were $100,000 apart.

    They decided to go out for dinner so they could come back fresh.

    During dinner, the businessman decided that he would pay the extra $100,000 IF the seller paid for dinner.

    You see the businessman had bought breakfast and lunch. He thought it only fair for the seller to buy dinner! The server presented the bill. It sat on the table … and sat … and sat. Finally, the businessman pulled out his credit card.

    That dinner cost the seller $100,000, even though he didn’t pay for it!

  • During dinner
    You set the agenda. Start off with some small talk, while you’re all looking at the menu. Once you’ve placed your orders, get down to business. You want time at the end for their questions or to just build your relationships.

    After dessert, excuse yourself and take care of the bill.

  • After dinner
    Walk them out. You’ll often find that your best conversations occur once you’re away from the table. There’s pressure to discuss follow-up because the night is drawing to an end. Don’t miss this great opportunity! Make sure that you follow-up. Thank them again for meeting with you. Be positive – reinforce that you look forward to working with them.

Thanks for sending us your bigg challenge, Brett. We hope our advice helps you be dashing at your upcoming dinner!

Do you have a bigg challenge? We’d love to help. E-mail it to bigginfo@biggsuccess.com.

For our Bigg Quote today, we felt obligated to defer to Emily Post.

“Manners are a sensitive awareness of the feelings of others. If you have
that awareness, you have good manners, no matter which fork you use.”

Mind your manners and the world can be your oyster!

Next time, we’ll offer some tips to cope with information overload. Until then, here’s to your bigg success!