Cashflow 101, Part 4: Factoring VS. a Loan
Factoring isn’t a loan, and the difference shows up on your books in a way most business owners never see.
Cashflow 101, Part 3: You're Undercharging and You Don't Even Know It
Your barrel costs $150 to make, so you’re making $150 a barrel, right? Not once you count the software subscriptions, bank fees, insurance and all the other costs that slip your mind. Here’s why your competitor’s price is no guide to what you should charge.
Cashflow 101, Part 2: The Importance of Pricing
A 5% price change doesn’t sound like much. But in our barrel business, raising prices by 5% added $61,425 to the year, and lowering them by 5% shrank it from $614,400 to under $200,000. Here’s why you should never, ever lower your prices.
Cashflow 101, Part 1: The Importance of Payment Terms
Most of us copied our payment terms from someone else’s invoice and never thought about them again. Here’s why that one small choice can be the difference between turning $150 into $9,600 or into $614,400.