How will inflation force you to change your business

How will inflation force you to change your business? Inflation is a funny thing. You can’t pinpoint the exact day it impacted your business. You can only look back and notice the changes it made. As an entrepreneur there are two paths you can choose: 1) let inflation happen and watch your business slowly fade, or 2) get out in front of inflation and watch your business take market share from businesses that follow the first path. Whether you understand inflation or not, every business is faced with the decision to be proactive or reactive. Cash flow is the single largest reason businesses fail and inflation can accelerate cash flow challenges if not managed properly.

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Are you stressed or scared about your business finances?

Are you stressed or scared about your business finances? Business finances are a consistent point of stress for entrepreneurs. Sleepless nights. Panic attacks. Ignoring voicemails and emails. Fear produces action and there are only two: failure or profit. There is nothing in between. As an entrepreneur, you have the choice of taking actions that can produce either result.

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Is your business grabbing #EasyMoney?

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There is no such thing as easy money right? Are you sure? There are really only two ways to grow your revenue: cut costs or sell more. There is a limit to how much more revenue your business can earn by cutting costs whereas selling more is limitless. If you only had time to do one thing in your business it should be focusing on how to sell more. There is no easy way to do that then by figuring out how to sell more to existing clients either directly or indirectly. The more systematic you can make this the more profitable your business will be and ultimately your business will be worth more.

So how do you sell more to existing clients or customers?

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There is #NoFreeMoney for your business (ever)

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It’s going to cost how much!!! You must be crazy!!!

That comment is made by entrepreneurs and business owners after hearing how much it costs to borrow money from either a mid market or private lender. The comment is usually followed by a series of expletives that I won’t type here but needless to say the cost of capital is something that can scare or upset someone who maybe hasn’t thought through the opportunity cost (see past blog post here). There is no such thing as free money when it comes to business but more importantly the money your business is using has a cost to it that you may never have thought about but you might want to.

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What is opportunity cost?

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“…the loss of potential gain from other alternatives when one alternative is chosen.”

Running a business comes with an never ending series of trade offs and there are times when critical decisions need to be made that seem to have greater trade offs than what you may be accustom to. This can be particularly agonizing when a decision involves needing expertise that you may not have access to – like financing. When given an opportunity to profit from a decision that involves needing to find capital, often times entrepreneurs and business owners will either lean in and commit or miss the opportunity as a result of their lack of knowledge. Opportunity cost is a real concept that impacts many businesses but here are some things that might help you if you find yourself in a position where a gain to your business will involve being creative with how you find the capital to take advantage of it.
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Do you know who to #getmoney from for your business?

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Let’s face it. Entrepreneurs and business owners are always looking for money. I find it interesting that many folks running a business who need money don’t take the time to really understand how much money is actually out there and available to them. When words like “money, financing and capital” are used they can cause someone’s eyes to glaze over as these terms are associated with confusing and uninteresting concepts. The truth is that money can be complicated and boring to understand but it doesn’t have to be.

Here is what you need to know about how your business can #getmoney. Continue reading “Do you know who to #getmoney from for your business?”

Is your business an artist or a thief?

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I have been paying attention to some of the news and the interviews surrounding the upcoming Snap (Snapchat) IPO and found one with Jason Calacanis particularly interesting (click here to watch). He mentioned that the story of Snap is akin to the story of the artist and the thief placing Snap as the artist and Facebook as the thief. Snap creates and innovates great products and features while Facebook steals them and incorporates them into their own products and features. I was interested in the comment for other reasons. I think its important to know if your business is an artist or a thief because I believe it impacts the financial results and expectations for your company.
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Don’t be fooled by #fakemath

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I was listening to a podcast by Gary Vaynerchuk this morning as he was giving a keynote speech and he mentioned the term “fake math” to define a concept related to marketing and advertising but it stuck me as being completely appropriate for entrepreneurs and business owners. #fakemath tends to be a real problem for businesses that generate less than $25,000,000 in gross revenue. What I mean by #fakemath is the difference between what a business expects to make or achieve and what they are actually making and achieving. Continue reading “Don’t be fooled by #fakemath”

$60 billion tells us there is a market somewhere

We all know that money doesn’t disappear it moves. Right now the price of oil is sinking which means that money is moving from one side of the market to the other. But what is the other side? If you follow the movement of money you will inevitably hit one spot along the way that cannot be missed – the consumer. With low energy prices consumers will have more disposable money to spend. This is a simplistic observation of a complicated shift in the market but does provide start-ups and growing businesses with something to talk about and respond to.

How is your business going to take advantage of consumers who have more cash?

An easy question that might not have an easy answer.  Continue reading “$60 billion tells us there is a market somewhere”

Equipment leasing – things you always wanted to know

Have you ever wondered about what is involved in leasing (or financing) equipment?  I chatted with Danilo (Dan) Terra of Leasex Financial this morning and we covered lots of ground.  Dan is quite optimistic about the current economy here in Alberta and is excited to see the growth that is happening with his clients.  Having been an ex-banker Dan has been able to become a specialist in equipment leasing and financing and he shares his opinions, thoughts and advice on our Google Hangout.

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