Are You Losing Business by Only Accepting Cash and Checks?

Many mobile business owners and professionals struggle with payment options. While on the road, moving from one job site (or client) to the next, it can be difficult to keep things organized. Most small business owners have the luxury of a storefront, cash register, and credit card processing terminal. For them, there’s no guesswork or potential “run-around” involved – either the card has funds, or it doesn’t.

Mobile business owners, such as landscapers, trades people, merchants at craft fairs, and others simply do not have these luxuries. Most are limited to accepting cash or check; the latter with no guarantee that there are funds in the account. It can be difficult for them to find a payment method that is convenient for both them and their customer, especially for big-ticket items. Unfortunately, this may often mean that the sale goes instead to the brick and mortar merchant, simply because they accept credit cards and/or provide a financing option that doesn’t involve some sort of collection arrangement.

(In other words, the credit card company acts as the “creditor” for them, in a sense, and gives the customer a self-directed financing plan on their own terms.)

Are you losing sales because you don’t or can’t accept credit cards? This is a problem shared by many mobile business owners. Imagine the sales you might have had at your last trade show or job fair, if payment of a large sum had been easier and more convenient for your customer.

Customers are carrying less and less cash around. We are quickly becoming a plastic consumer society and few people like to bother any longer with the hassle of cash or check books. They prefer the ease and convenience of their credit or debit cards. Are you losing valuable sales because you don’t accept this most convenient method of payment?

Many business owners also prefer credit cards. They offer the advantage instant approval. There is no waiting for days for a check to clear and money to be deposited in your account. Credit cards provide 24-hour payment in a 24-hour world. Payments can be processed quickly, on demand.

What if there was a way for you to accept credit cards from your mobile office or job site? This would enable you to build your business from anywhere, any time. Why should brick and mortar businesses get all the customers?

What would this do for your business? Your business could potentially grow by leaps and bounds – and you’d be making life a lot easier for both your customers, and yourself.

Here’s the good news – you do, in fact, have options. Here are two solutions you should consider:

1. Use a Wireless Credit Card Terminal.

If your typical business day consists of a large number of smaller sized transactions (for example, a pizza delivery business with an average of 40 sales under $30 a day), then you should seriously consider getting a wireless credit card processing machine.

Your monthly fees for the merchant account (and equipment, if leasing) will be average, as will the discount rate per sale, but the convenience factor in addition to the potential increase in sales from customers who don’t necessarily have cash on hand will likely more than make up for the monthly fees, and then some.

2. Accept Credit Cards by Phone

Now, if you run a business where you’re only closing on a few sales a day, but at a higher ticket ($x00 – $x,000), then you’ll want to minimize your merchant account costs because your credit card transactions will be more of an occasional occurrence – even though it will certainly impact your business in regards to convenience, efficiency and potentially even sales.

For example, if you own a landscape business where the average transaction is $600, you’ll find that quite a few clients will want to take advantage of either their card’s built-in rewards points (like “air miles”), the flexible financing – or in most cases, both of these added benefits combined.

The benefit for you is that credit doesn’t “bounce” and in most cases, you’ll have access to the funds much faster than with a check.

Now, here’s the best part – you can accept credit card payments on the spot from any touch-tone phone, including your cellular.

Also, the leading “pay by phone” services available have very low monthly fees and operate in more of a “pay as you go” fashion.

This is the perfect solution for a mobile business – or professional – where occasional credit card transactions are necessary (and profitable), but don’t quite warrant the hassle of using a traditional terminal.

Some services cost as little as a few bucks a month at about 4% per sale.

So there you have it – two very viable options for mobile business types that would otherwise have to remain stuck in the “dark ages” of cash and check payments.

Do your due-diligence to see what service might be best for you and your customers.

King Cash, Queen Cash Flow, and Prince Profit

It takes cash-on-hand to run a business. Cash allows bills to be paid, payroll to be met, and capital improvements to fuel expansion. Cash, however, depletes quickly and must be replenished by a steady cash flow stream for the business to survive, even in the most prosperous times. In the new economy, poor cash flow kills companies.

Cash vs. Cash Flow vs. Profit:

The common experience of preparing to wash your face provides a simple analogy for these complicated and intertwined financial metrics. Both the spigot and the drain represent cash flow which can be further defined as inflow (spigot) and outflow (drain). The water pouring into the sink bowl is analogous to the revenue flowing into the company. For cash inflow, it does not matter whether the product/service was sold at a profit or loss, only that revenues flow in. Conversely, all of the expenses of the firm, from the electric bill to insurance to payroll to vendor charges are represented by the drain. Just as water flows out of the sink bowl, cash outflows from the firm. The water accumulating in the sink bowl represents cash-on-hand. Finally, the increases (profit) or decreases (loss) in the amount of water in the sink bowl, from one measurable time to another, represent the profit of the company.

So, for example, a firm may measure profitability monthly, quarterly, and/or annually which means they are comparing the inflows of revenue minus the outflows of expenses to determine which was greater during the period. If inflows were greater, the company was profitable. If outflows were greater, the company operated at a loss.

Each measure of financial accomplishment is necessary. What’s more, increasing each measurement is essential to continued operations and growth.

King Cash:

King Cash rules the kingdom. The larger your firm’s pile of cash, the better you can sleep at night. Though savings does not solve problems, it does give you something unattainable otherwise: time. If the firm is operating in the red (un-profitable) or cash outflows are greater than inflows (negative cash flow), cash-on-hand buys you the desperately needed time to correct these problems. They will both need to be corrected to survive; cash buys you the time to figure out how to turn it around. Ironically enough, by definition, the cash your firm has now came from positive cash flows and profitability at some earlier point in the company’s history. It was neatly gathered together annually in the Retained Earnings line item of your Balance Sheet and stored in your savings account.

Absent actual cash-on-hand, the firm must turn to debt in troubled times. Unfortunately, banks and lenders are slow to loan cash to troubled companies. Thus, if your firm is in a crisis and you did not execute a financial disaster preparedness plan when times were better; there is little you can do other than to liquidate assets. If, on the other hand, all three metrics are up, now is the time to apply for, or raise, the firm’s credit line. This is best done with a recently signed large contract in-hand and the latest financial statements neatly printed and expertly bound.

Queen Cash Flow:

King Cash rules the kingdom as its head of state; but, Queen Cash Flow is its neck. And, everyone knows the neck turns the head. Thus, assuming your firm is not cash rich, the metric that rises above the others in demand for your attention is cash flow.

Imagine a situation where the company is profitable on paper, meaning it is selling its goods/services for more than the cost of delivering them; but, cash is not flowing. This would mean revenue is due in as Accounts Receivable; yet, has not arrived at the firm’s door. How long can a company survive? Assuming the firm has no cash-on-hand and no means of acquiring a quick, temporary infusion of cash (credit line), the question can be answered with another: how long will you and your co-workers continue working for a firm after a pay date has come and gone with no pay? Suffice it to say, the company’s demise is measured in weeks not months or years.

Prince Profit:

Companies are in business to make a profit – period. Without profit, there is no growth and corporate value diminishes as assets age and depreciate. Profit, like the Crowned Prince, must be treated with respect to prepare for the future. Profit can be overlooked in dire situations to satisfy King Cash and Queen Cash Flow. If, however, this is done for more than brief periods of time, the future of the company is in jeopardy.

Financial metrics are the royalty of the company. Each must be attended to and cultivated. As cash flows are increased, cash-on hand and profit increase over time as well. Though the economic times may be desperate, the rules of corporate finance never change. As complicated as these topics may seem, they can be boiled down into a very simple principle you probably learned growing up – “if momma ain’t happy, nobody’s happy.” Look after your cash flow and that positive cash flow will look after everything else.

Brilliant Business Ideas: Turn Useless By-Products Into Cash

Anybody who is looking for brilliant business ideas needs to study the life of a man called Henry Ford, the founder of the Ford Motor Corporation.

In case you don’t know who this man is, Henry Ford was the inventor of the Ford Model T – the first mass-produced automobile in the world. The man literally invented the assembly line which is used in industries all over the world today. The assembly line invention was significant because it enabled Ford to increase production and produce many more cars than before.

But what I want to focus this post on was another business he was involved in which very few people took interest in. This business genius took the wood scraps that were left over from the production of his Model T’s and turned them into charcoal briquettes (used in cooking and heating).

This “side venture” (built off of by-products) became so profitable that he built a separate charcoal plant and founded the Ford Charcoal Company, which was later renamed Kingsford.

There are obvious by-products or waste that are generated by many enterprises. To give an example, there is saw dust which is generated by sawmills. This can be put to a lot of profitable use. For instance it can manufacture particleboard and even fireplace logs.

It is said that every art of creation has a byproduct which means that whatever business you are doing or want to do is sure to generate “waste” which is actually a byproduct that you can turn into huge profits.

A few of the brilliant business start-up ideas in my book involve making huge profits from byproducts and they don’t have to be your own byproducts. I hope that gets you thinking in the right direction.

But let me tell you another true story from right here in Kenya about a company that made huge profits from the waste it was generating.

Everybody knows about Nation newspapers. The company publishes the highest circulating daily newspaper in the region. A few years ago they had a serious problem. The price of oil, as always was on the rise and the cost of distributing their newspapers was growing alarmingly. The waste they generated was the extra space in the huge pick up vans that remained when the newspapers were packed to be delivered to various towns and destinations. There was even more “waste” when the van came back from delivering the newspapers virtually empty. What a waste.

And so they devised a way to turn the “waste” or by-product into huge sums of money. They launched a courier service to deliver letters and packages all over the country. They called the company Nation couriers. Immediately they had a huge advantage because newspapers are delivered daily and they usually have a very tight delivery schedule because daily newspapers are perishable products that must be delivered on time. Today’s newspaper cannot be sold tomorrow. It has to be sold today and preferably early in the day. And so Nation courier could promise it’s customers that the package will reach it’s destination without fail the next morning.

This brand new overnight courier service created from a “waste product” has made huge profits for the Nation media group and also makes their newspaper delivery very efficient.

Take a closer look around you.

What is being wasted?

Can you turn it into profits?

Wondering How to Make Money Online? Learn 5 Ways to Earn Online Cash

If you are considering to starting your own internet business to earn money online, there are many types of internet business that you can choose from to earn online cash. Below is a brief explanation of 5 of the best ways to make money online.

Blogging

Blogs started out years ago as some sort of online personal diary as a means to connect with people, share pictures, stories and experiences.

Today, blogs have evolved to become excellent marketing tools as well as a medium to make money from.

You can make money online with blogging through running Google AdSense ads, writing product reviews, placing advertisements, or even selling your own products! Blogging can be an easy way to earn some extra cash if you work hard at marketing it. You should learn all the ways to get your blog well known in the internet communities. You can only make good money with blogging if you have a blog that receives high traffic.

Selling on eBay

Selling on e-Bay is an excellent way to start your own online business. In fact, many people made their first make-money-online attempt with eBay. E-Bay is a popular online auction website that millions of people use every day to find good deals on items they are looking for.

If you don’t wish to sell items using a drop ship method, just sell anything you have at home, which could be used items or brand new items that come from wholesalers. You can also buy items from flea markets or garage sales at a low price and resell them on eBay for a profit. As long as you are offering people what they are looking for, they are willing to pay good money for the items.

Service-based business

If you have experience in a particular area, you could offer it as a service by starting your own business. For example, if you have some writing experience and can write well, you can offer writing services to companies who need writing done for their company websites, or to business owners who want their marketing materials written within a tight time frame.

Other types of service-based business that can be run online are such as:

  • Web designing;
  • Accounting or bookkeeping; and
  • Wedding planning.

Service-based businesses are in demand because there are many small business owners out there having a difficult time getting all of their business tasks completed by themselves. As such, they outsource some of their projects to someone else who can offer the relevant services.

Affiliate Marketing

Affiliate marketing is an online business where you, as an affiliate, promote a product from a merchant’s site, and earn commissions from sales generated by you. Sometimes you can also earn money by just getting customers to sign up for things on the merchant’s site, such as newsletters etc.

Affiliate marketing is one of the best ways to make money online. Today there are many people who are earning a decent online income by running affiliate marketing business full time from the comfort of their home.

You can start this business any time, as it requires only a very small start-up capital, and you can do it part timely at home (e.g. 2 hours after work everyday).

Selling informational-type products

There are many people searching the Internet for information; this makes the web is a great place to sell your knowledge. When people are desperately looking for a very crucial piece of information to solve their problems, they are willing to pay anything to grab the solution.

If you have the knowledge or skills or experience that people are looking for, you could earn a substantial income by selling them in the form of:

  • E-books;
  • E-courses;
  • Tutorials;
  • Guides; and
  • Podcasts.

Creating informational products cost you very little, but you can sell them for a nice profit, since the product is in a digital format that can be delivered electronically (e.g. PDF file sent via e-mail). This is definitely an excellent way to make money online with while you can still enjoy spending time with your family.

So, which of the 5 ways do you prefer to use to start making some online cash?

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