BONUS TIP 1
REVENUE IS KING, EXPENSES ARE A CLOSE SECOND, BUT DO NOT FORGET TO FOCUS ON CASH FLOW!
How quickly you get paid for the work you complete is vital. This is a game that many large shippers play…how long can they string you out before paying you?
Will you be paid in 30, 60 maybe even 90 days? This is a vital question you need answered, because you don’t have the luxury of waiting that long to pay your employee’s, taxes or vendors. Think creatively when working out your cash flow situation by asking these questions:
1. Do I have enough working capital set aside to handle tight cash flow?
2. If I offer a small discount, can I get paid faster?
3. If I set up automatic payments, can I get paid faster?
4. Should I factor my invoices, in order to get paid faster?
A note about factoring: Factoring is an excellent way to improve your cash flow, but it can also be expensive. Some of our best customers use factoring to get paid quickly, and they are able to increase their rates to cover the factoring cost. Take the time to learn about factoring, and use a trusted and reputable factoring company. We have listed a few in the reference section of these blogs, but do your own homework.
Matt Manero combines his business brilliance with more than 20 years of hands-on experience in transportation equipment finance. Today, he is a CEO leading four companies that generate over $100,000,000 per year in business with a base of more than 10,000 clients.
Matt launched his first business, Commercial Fleet Financing, Inc., in 1995 with a phone, a folding table and the unyielding confidence of a single client, a trucker. Fast forward 20 years: Commercial Fleet Financing, Inc. made Inc. magazine’s Top 500/5000 list of fastest growing companies in America in 2014. Matt is the creator and personality behind CFFnation.com, the first and only online video network featuring original programming for and by innovators, operators, movers and shakers of the transportation industry.
His companies have been recognized in trade publications such as Overdrive, Transport Topics, Commercial Carrier Journal, and Dealer Solutions Magazine. Matt hosts his own weekly Radio Show aptly named, “The Grit” which airs on lifestyletalkradio.com and also on CFFnation.com. In addition to “The Grit,” Matt has authored a series of quick read books entitled “Tower, Mover and Construction Co. Need to Know NOW”, and also a forthcoming book, “I NEED MORE MONEY,” which reflects his battle to build his business and guides readers in creating their own future and financial success.