Difference Between Cash Flows From Operating Investing And Financing Activities How Strategic Alliances Can Grow Your Business Exponentially (Example: Cash Flow Consultant)

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How Strategic Alliances Can Grow Your Business Exponentially (Example: Cash Flow Consultant)

The smartest marketers today form strategic alliances with other companies that sell “complementary” products or services, whose “image” fits well with their product or service.

Cross-promotions and cross-advertising can save significant marketing dollars, while creating greater awareness and an even better image for each product or service through reciprocal endorsement. Think Pillsbury chocolate chip cookies made with Hershey’s chocolate.

Sometimes the products are not so complementary and it is almost impossible to see the connection between them. But why wouldn’t macaklin advertise insurance and diamonds in the same ad, if that means co-advertising and media costs?

It is called “Relationship Marketing” and it is indeed a very powerful tool and a very smart move, as long as both products or services

• target the same customer

• do not compete

• have a compatible, positive image

How might this work in the cash flow industry? Let’s say you provide access to factoring dollars. You can “partner” with someone who specializes in financing purchase orders or leasing equipment.

You can easily sell to the same companies and customers without competing with each other, since the two of you offer different, but likely very complementary, products.

Imagine you were both doing the same amount of marketing for your own product. By cross-promoting, you would instantly double your marketing reach at no extra cost to either of you.

Now think about having another person on your team who specializes in, say, writing a business plan! Again the same target group and without competition. You just tripled your marketing reach and effectiveness.

You can probably think of other “appropriate” combinations with your business that could equally increase your marketing reach and effectiveness in the same way!

The point here is that through “team marketing”, smaller players with more limited time and money budgets can achieve faster and greater success by combining their resources and efforts.

Where to start when making such alliances? First, you have to have the right people, of course. It helps a lot when they are compatible and share the same vision and values. They should also be committed to the same goals, and each of them should “pull their weight”. Motivation and determination are the most important. No free shipping or shipping for anyone!

Of course, if you have assembled such a team, you can take it a step further and go from a “strategic alliance” to a full-fledged company formation.

Imagine, under one company’s umbrella, you could even qualify for group health insurance rates and enjoy many other cost-saving benefits (eg shared business cards, brochures, websites and other marketing support materials, etc.).

Aside from the cost savings, just think how much more you can cover with a team of like-minded people compared to what you can accomplish on your own with your own, limited resources (both time and money)!

For example, instead of allocating available hours to phone calls, networking events, preparing direct mail, attending trade shows, and participating in social media, you can divide these tasks among different team members and perform these activities simultaneously instead of sequentially.

Consider the savings options mentioned above. Let’s say you had $5,000 to build and run your business. If you do it yourself, you will almost certainly have to spend money on operating expenses and marketing just to keep the business going.

Now imagine you have three like-minded “partners” who all have $5,000 in working capital. Suddenly the “company” has $20,000 in working capital. Even if you had to spend $8,000 on operations and marketing now, the company would still have $12,000 to invest.

Now the “company” could take, say, $10,000 of its remaining “investment capital” and – instead of just brokering cash flows – actually acquire some paper!

Congratulations! You just created a double stream of income. One from brokerage and one from investment.

In other words, the portion of the “company’s” working capital that is “invested” is actually producing a direct return now, rather than merely being “spent” on activities expected to generate a return in the future.

That makes a huge difference when it comes to the bottom line.

If you put that scenario forward, any excess money the “company” generates (ie, revenue minus expenses and taxes) could now go into procuring more paper (invoices or notes or tax liens or whatever best suits the team’s short-term or long-term strategy and investment goals).

Of course, it’s quite a leap from the idea of ​​a one-person cash flow broker to a multi-member team or company that not only brokers cash flows, but also shares the risks of investing in them.

However, just like being a rocket scientist or brain surgeon isn’t for everyone, cash flow investing might not be for you.

The good news is that the barriers to entry in the cash flow investing market are much lower – unless you’re already on your way to becoming a rocket scientist or brain surgeon, that is, of course.

But if you’re intrigued by the opportunities and challenges of brokering and cash flow investing, just play it out and run the numbers (or let me know if you need help).

If you think that all of this sounds great on paper, but is too difficult to do in reality, you might be right.

However, maybe not necessarily for the “technical” reasons you probably have in mind. The really hard part of the whole thing is finding the right people with the right attitude and the right commitment to partner with.

And while it may indeed seem simple, less complicated and faster to do it alone, just remember why a team approach can be much more profitable on various levels (think time, money and motivation): Ttogether Estrong body ANDthe chiefs More!

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