I was recently speaking with a business owner who had a problem and he didn’t even realize it. He was telling me how sometimes they were late to pay their contractors because sometimes their vendors didn’t pay them on time. I asked him how his contractors responded, and he confided that some of them would sometimes come to him and tell him they could not go to a job site because they did not have gas money due to the late payments. He also told me about the stress he was carrying knowing that these hard working people’s families were suffering due to the dilemma.
I told him I was sorry to hear that this cash flow problem was causing him so much stress. He responded by saying that “he really didn’t have a cash flow problem… that’s just how it was”. I explained to him that when a business cannot pay its employees or contractors because a client had not yet paid their invoices, that constitutes a cash flow problem. He really had not seen it that way because that was all he know.
I asked him if he realized he could get paid for his pending invoices and he did not. He had not heard of factoring, so I went on to explain to him what a powerful business strategy factoring is. He kind of got the picture but then said that he probably not get the buy in of management because they did not really care about the employees as much as he did.
So what is the moral of this story? Many times businesses have a problem that they do not realize is a problem because it’s just what they are used to. If there is a better way to do business, doesn’t it make sense to give it a try? I know for me when I have implemented some of the most simple systems in my business, I have been so blessed by the outcome; usually increased productivity, lower stress, and more revenue.
If you are experiencing a cash flow problem or any other operational dilemma in your business, give my team a call today. If we can’t help you, I am confident that we know someone who can. Our strength is not always in what we know, but who we know.
Wishing you success and prosperity!
Anthony

April 4th, 2010 at 2:42 pm
[...] part series designed to illustrate how invoice factoring can sustain and grow businesses in variousDoes Your Business Have a Cash Flow Problem? | Finamark FundingI was recently speaking with a business owner who had a problem and he didn't even realize it. He [...]