Other companies require much smaller amounts of capital to finance their ongoing operations. Save your best material for the words you speak. You're in the People Business! This discrepancy exists because our unconscious, intuitive mind is aware of things our conscious mind is not.
Some of those who come later will fall by the wayside
Only
after you know
the exact amount of your company equity or capital investment can you determine the return on investment you want to shoot for. In
your company, in
your production or field crews, a similar huddle is a must if you want your teams to be winners. Tell
the investor why
you need the money. Your
job is to
explain what's expected and then provide feedback regarding their progress.
What are your gross and operating margins?
Once
upon a time
suppliers were often happy to extend credit to new businesses; in other words supply them with the product they needed to buy and then invoice them for payment thirty days later. Or
you can make
people your top priority. Looking
at things in
your plan through rose-colored glasses may even doom your business to failure if it causes you to seek insufficient startup capital, underprice your product or service, or expect unrealistically rapid growth. Ordinarily
this would be
a given and not necessarily a matter of grave concern.
Your most unhappy customers are your greatest source of learning
They
are a great
low-cost alternative to hiring a real receptionist and installing him or her in a real office, and they give a much better impression than you wheezing down the phone while running for a bus. Leverage
ratios measure the
financial risk in an organization by comparing debt to equity or debt to assets. Passive
assets can include
owning stock in growing and successful public or private companies. Eventually,
the consumer may
face financial ruin and have to make a major correction by selling off assets or declaring bankruptcy.
Is your production crew cost rate accurate?
BUT,
are you making
enough money on your equipment to make it worth your while? You
ll detect and
understand their problems, goals, and motivations, and then be better suited to create the best solution (product) for them. There
is no money
in competing for the middle of the triangle. The
justification of interest
lies in the fact that men prefer present goods to future goods--a bird in the hand is worth two in the bush--and interest is the difference in value between the two at the present moment; it is time value.
Cracking the customer service secret
Human
capital consists of
talents, skills, and knowledge residing among employees. And
the really successful
ones fall down a lot! Command
decision making is
the traditional top-down, hierarchical management model. The
old-fashioned way of
doing everything yourself, working hard, and using your own money isn't always the fastest way to grow your net worth and cash-flow.