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For your business to thrive and succeed, you’ve got to get a handle on your cash flow management.

The cream of the crop learn the best ways to grow their revenue while managing the cash that goes in and out on a regular basis. Working with your cash flow will be the difference between a business that thrives and one that just survives.

To this end, keep reading to learn all that you can about managing your cash flow.

1. Get a Handle on Your Accounts Receivable

Accounts receivable refers to the money that your clients owe you for business rendered. While this is money you earned, it’s not real until the money changes hands and hits your bank account.

The way you’ll collect is by setting up a limit for how many days you’ll allow these receivables to remain outstanding. This may be somewhere between 15 and 45 days.

You can also create a credit policy for your customers and make sure that you enforce the policy. Keep track of your customer’s payments and handle them accordingly.

2. Create and Use Cash Flow Projections

To really manage your cash flow, create projections and stick to them. There are lots of cash flow worksheets you can use to make sure that these measures are handled with accuracy.

Double and triple check your projections with the actual results, and use a monitor to keep you on track.

3. Reduce Your Expenditures

Of course, one of the best ways to handle your cash flow is by cutting expenditures.

When you handle your expenses, you’ll be able to stick to your budget and stop the bleeding with all of your liabilities. Manage your utilities and get your expenditures in check and your cash flow will always be healthier.

4. Build Your Cash Reserves

It’s also important that you take your time to build your cash reserves. Set aside money for your savings and you will be in good hands when it comes to dealing with rainy day expenses.

You can also work with an investment banker that can help you grow your revenue and stash some money aside in reserves. Earmark some money in your accounts and you will be taken care of when it comes to your business cash flow.

5. Always Work on Boosting Your Sales

Take the time to improve your sales and you will always have more cash flow. This means working with your marketing company, setting pricing strategies and learning your consumer.

When you always have products that sell, you will always be able to have rich cash flow in your business.

Handle Your Cash Flow Management

As you can see, these tips will be useful when you would like to get more cash flow out of your business. By utilizing the tips presented, you’ll have a great shot at managing your finances and growing your business to the fullest.

These strategies will be helpful no matter what industry you work in.

Use these tips and contact us when you want to learn more about cash flow management.

Approximately 63% of all companies state that generating leads online or website traffic is their biggest challenge. But, why is it so challenging, and what can you do to improve results?

Before we look into how to generate leads online, let’s answer a more important question, ie. – what are leads?

There’s this common saying about how you can lead a horse to the pond, but can’t force him to drink from it.

Let’s assume the pond is your business website, the horse is your customer and water is the product you sell. Your ultimate goal is to get the customer (horse) to buy (drink) from your website (pond).

But what if you didn’t have this horse, to begin with? You’d have to go look for them or set up a system that directed dehydrated horses to your pond. That’s where lead generation comes in.

Online lead generation is all about finding these metaphorical horses and thinking of effective strategies to get them to your pond.

So, How Can You Generate Leads Online?

The virtual world literally sees 3.01 billion users. That means, 3.01 billion potential leads, waiting for you.

Here are 9 tips to help you reach them.

1. Use Social Media Wisely

Now, this might seem like it’s straight out of marketer’s 101, and who didn’t know that, right? Fair enough. But what a lot of people don’t realize is that social media is not limited to just Facebook and Instagram.

Finding the right platform to advertise and connect with prospective leads can be quite challenging.

So how do you choose the right one?

Finding Your Niche

It is of course, undeniable that those are perhaps the most effective of the platforms, in general. However, sometimes your brand might be targeting a niche audience, which would logically call for a niche platform.

To find your niche you will need to take into consideration the age groups you’re targeting, the demographic, the persona and what interests them. Millennials, for example, are notorious for their love of platforms like Instagram.

However millennial musicians might be easier to find on YouTube.

Getting Your Content Right

As a brand, you have a lot to say. You want to tell the world how great your product is, but almost nobody wants to hear that. Social media is all about finding content that is relevant and engaging to your followers, without deviating from your brand.

Timing Is Everything

Your content may now be on the right platform, targeting the right niche, but at the wrong time. Finding the right time takes a lot of research and trial and error.

2. A Visible, Accessible Website

The single most important thing for an online business is having a well-optimized website. This largely includes (but is not limited to) search engine optimization (SEO) for your site.

What Exactly Is SEO?

A good percentage of online leads are generated through organic searches alone. Search engine optimization, in a nutshell, is all about making sure your website visibility is strong. It involves a lot of keyword research, well-structured content, optimized landing pages, creating strong meta tags and descriptions.

Is Your Website Mobile-Friendly?

63% of internet users access the virtual world through their mobile phones. That’s more than a billion potential leads lost.

Creating a Fantastic User Experience

This could range from writing simple, effective copy to designing beautiful graphics. The idea is to enhance the user experience in every conceivable way. While this may sound like a complex idea its really just about making a simple, uncluttered website.

Monitoring web traffic is important to figure out whether or not your visibility is improving. If you are struggling to generate traffic, you could also consider buying an established website.

3. If They Can’t Find You, Find Them!

That being said, when it comes to reaching out via email, you have to be careful. Emailing prospective clients is especially tricky. You don’t want to be dismissed as spam or go unread.

You’ll need to go beyond a conventional promotional mail while sticking to the absolute basics.

  • An effective subject line
  • A personal touch
  • Highlight your benefit
  • Keep it short
  • A non-disruptive time

This will undoubtedly take some creativity and persistence on your part. Having a dedicated outreach team to work on prospective clients is one way to ensure consistent follow-ups and effective research.

The goal should be to collaborate with high traffic sites that are relevant to your service. E-wallet sites, offer sites and other similar platforms are a few sites you can consider to access leads in marketing.

4. Promote Your Brand

Online advertising is the fuel behind the fire. The reason digital advertising is so popular is that it’s so effective. Over the years, the multiplicity of options have increased making a cost-effective option for even small business who are still finding their ground.

Social media holds a huge percentage of the virtual population. However, while your advertisement campaigns might successfully get you a huge number of leads, they can also wind up being a bit of a disaster.

A good idea would be to run tests and trial ad campaigns to measure your success in smaller groups before you take a good, strong, swing at it.

This will help you experiment with and try out new trends while ensuring that your investments are set to maximize your profits.

Pay-per-click advertising allows you to target very specific phrases, making it easier for you to access your niche audience. This form of advertising is offered by most popular search engines like Google and Bing.

5. Get the Most out of Referrals

In a world where people have such an overwhelming number of options to choose from, you can bet that simply asking a friend is going to be their go-to.

One way to do this is to ensure that you’ve built a strong relationship with your current customers. This means having efficient customer service in place. Consistently responding to feedback, loyalty perks and following up on issues regularly is just as important as any other lead generation tactic.

If your current customers don’t like you they’re not going to recommend you.

However, with marketing, you generally need to give a little to get something in return. In addition to keeping them happy, you may have to consider offering benefits to current customers in exchange for a referral or recommendation to their friends.

For example, you might offer them credit points in return for a referral, or a discount on their next purchase. What you’re doing is creating a two-way street of reciprocity.

6. An Active Blog

What your blog post needs to be is the answer to someone else’s question. Not just any answer, a really good answer in a clutter of answers. As if that weren’t enough, even if you have everything they’re looking for they may not be able to find you.

So what can you do to fix this?

Keep Your Blog Updated!

This one is simple – the more content you have the more likely you are going to be found. A blog that is regularly updated with recent trends, ideas, and relevant information is going to seem more attractive to the average user.

Writing Simple, Readable Content

You’ve probably heard about the infamous low attention span, the bane of every content marketer’s existence. This massive influx of content makes it necessary to go above and beyond to keep someone engaged for longer than a minute.

This means your blog needs a consistent tone, format, and style that makes for a quick, simple, no-nonsense read.

It’s All in the Structure

A well-structured blog can keep users on your site for hours. Once you’ve got consistent great content, you can focus on the design. Is your blog mobile friendly? How do you subtly link your blog to your business? Don’t forget – this is all about generating those leads online.

7. Pay Attention to the Details

The details here include the consistency of your brand image across all platforms. You need a consistent USP, tone, and style of communicating in order to present a truly authentic image to potential leads.

We live in an age where the littlest things can put people off. However, the good news is the littlest things can also bring people in. Sometimes a single Star Wars reference might get someone to subscribe or follow you. A silly pun might get them to click on a link.

Simple phrases, or particularly creative design, a bit of authentic charity might earn you the trust of your audience. The point is, the world is an unpredictable place with impulsive consumers.

Online reputation management is also something you will need to consider. A single bad review can put off a hundred potential leads.

8. Embrace the World of Influencer Marketing

This works in a very similar way that referrals do. While a lot of people are wising up to marketing gimmicks, this new-age form of marketing seems to produce very real leads online for businesses.

Brands don’t really inspire trust anymore. However, trust remains a huge factor that determines whether or not people want to buy from a business. However, people have a fair amount of trust in people they know, respect and follow.

Hence, you may be able to leverage some leads by associating your brand with an influencer your audience trusts.

You’re most likely to find your influencer on social media and blogging sites than any other place. Your next dilemma might be choosing the right influencer for your brand.

In a lot of ways, micro-influencers might get you better leads than their big-name counterparts. The reason being, micro-influencers usually nurture their personal relationships with their followers, thereby, presenting themselves as more authentic.

As a business, your relationship with your influencer is crucial to the success of your campaign. Audiences often pick up on friction between brands and their influencers which does nothing to help you with your business.

9. Consider Hosting Your Own Webinar

Let’s face it, everyone loves free stuff. People love to feel like they’re getting something at a bargain. While this has to be a measured investment, if you’re somewhat of an expert in your fields, a successful webinar can substantially increase your chances of getting leads online.

Why?

Well, for one, it shows the world that you genuinely know what you’re talking about. For another, it can help you access people who are looking for answers that you can provide.

A lack of funds or budget constraints can sometimes make it difficult to invest in more effective lead generation strategies. In such a scenario, time management is especially essential to be able to appropriately analyze your results and figure out a cost-effective way to carry out your business.

All This Means Nothing Without Patience and Persistence

To be able to generate leads online, you need to be able to play the waiting game. For most people its the result of a consistent, collective effort to grow a business.

Some of you might subscribe to the idea that it is about having that one great idea that sets things in motion. However, while this may not be entirely unfounded, most “big ideas” come after years of deliberation, which goes to show that you do need some consistent effort to make it as a business.

Following these nine tips are a great way to start, and master, lead generation marketing. If you can pair these ideas with the right offline strategy, you’ll be well on your way to tapping in those leads online.

Like what you read? Check out our blog for more top-notch content on finance, investments, digital marketing tips, and all things corporate!

The American corporate debt is a staggering figure of $9 trillion. US companies borrow money on a regular basis and there’s a negative connotation attached to the word ‘debt’.

But there’s another side of the picture. If the companies don’t borrow money, nor take on a private equity investment, then they won’t be able to continue their operations and sustain the business for long and as a result, the national economy will collapse. So it’s basically debt that’s keeping the corporate world and the national economy going.

Now that we’ve established that debt doesn’t have to be necessarily bad, let’s dig deeper and take a look at good debt:

Understanding Good Debt

Taking debt is usually a burden for people because they’re worried about repaying it. But when you take debt to invest in assets that can yield profitability, your debt becomes good debt. You can earn from trading assets and make it a means of additional income. For example, if you buy stocks from the amount borrowed, you can earn dividends as well as profit when you sell them.

Here are some top ways you can convert debt into profit:

Invest in Leveraged ETFs

Leveraged Exchange Traded Funds (ETFs) are marketable securities that use debt to enable traders and investors to multiply the returns on a particular index fund. They’re traded on the stock exchange and amplify the returns by 200% to 300%. You can use these funds to invest in commodities, indexes, and bonds across different sectors.

However, ETFs can also work in the opposite direction and result in huge losses. But if you use a good strategy and knowledge about the financial markets, you can convert them into extraordinary profits.

Currency Trading

Currency trading—also known as Forex or foreign-exchange—is known as the buying and selling of currencies in foreign exchange markets for a profit. Two of the biggest benefits of currency trading are that you can convert a very small amount of money into significant profits in a relatively short period of time and the liquidity of Forex market, which means you can withdraw your investment any time.

Forex market is the largest capital market in the world with a daily turnover of $3 trillion and a number of people take debts for currency trading.

Real Estate

Real estate is an appreciating asset, which means its value always tends to increase over time. Many people borrow money to buy real estate, sell it at a profit, repay the debt and use the return on their investment to buy another property. They keep on repeating this cycle and earning increases profits.

You can buy a property that has a high return potential at a low price and sell them at higher prices. Real estate auctions organized by local or state governments are a great place to buy undervalued properties.

Visit our website, Money Cash and Value to explore about leveraged finance and value creation. Our educational resources will help you understand the concepts in detail so you can use debt as an investment to yield profitability.

Considering how extensive they are, it’s difficult to know the ins and outs of all the laws pertaining to managing and operating a business.

However, effective and well-planned legal strategies are the key to maximizing success in the corporate world. The law can often be limiting and restrictive, but when used to one’s advantage, it’s incredibly rewarding.

It’s not enough to treat local and international legal policies as mere parameters within which business is conducted. These days, law firms are facing intense competition as corporations invest in internal legal teams and strategists. These experts are hired by companies who are looking to seize and maintain a long-term competitive advantage.

According to researchers, there are five legal pathways that companies can take when it comes to shaping their policies. They are:

(1) avoidance—wherein companies avoid paying heed to the law and the consequences of their decisions

(2) compliance—this approach leads to companies working within the limits of the law, which is considered unwelcome and restrictive, but also necessary

(3) prevention—here, the law is viewed as guidance, with companies and executives actively seeking legal counsel. MIT Sloan refers to this as a “proactive instead of reactive” approach to law

(4) value—the law in this pathway is essential when trying to add value to a company’s products or services. That is to say, the company’s legal teams work to maximize return on investments through the use of law, factoring in important stakeholders—both internal and external. In fact, the legal team itself becomes a stakeholder in this approach

(5) transformation—this is when companies successfully integrate legal frameworks into their corporate strategies and business models. It can be a tricky transition to make, especially for companies that have operated for a while without following this model, or have no resources to do so.

It’s about figuring out your company and its executives’ understanding of legal models and frameworks to see which pathway suits your organization more. To learn more about what legal strategy works for you, get in touch with me through my website.

Fiscal policies refer to how governments spend and employ taxation to influence economic conditions, such as demand for employment, goods and services, economic growth, and inflation. The government’s decisions are aimed at regulating business cycles and balancing the economy in a way that allows them to create favorable conditions that align with their overall policies and goals.

When a government uses fiscal policy to increase economic growth, it’s known as an expansionary fiscal policy. In such cases, the government runs on a deficit, meaning their spending is greater than their revenue. This is done by giving consumers and business owners tax cuts, hence encouraging them to make investments and spend more.

On the other hand, a contractionary fiscal policy involves the government decreasing spending and increasing taxes to slow economic growth and control inflation.

What does any of this have to do with me?

Fiscal policies that are made at federal levels have an impact on the decisions and day to day lives of everyone in the economy—from ordinary people to large corporations and, of course, the state itself. All economic endeavors depend on such policies, making them incredibly relevant to all stakeholders.

Fiscal policy has an effect on share markets because it impacts rates of interest, taxes on income and investment, and given the nature of fiscal policies, the decision to invest may be inhibited or encouraged. Be aware of the current government’s policies before buying shares since your personal interests may not align with the federal policy.

As investors, it’s helpful to know what your government’s current policies are in order to make decisions that could end up either making you a lot of money, or costing you heavily.

Learn more about how financial decisions are made by reading our other blogs and articles.

Economic instability, political unrest, devaluation of currencies, and the on-going US-China trade war signals that we aren’t very far from a global economic crisis. Organizations seek to explore alternative investment options to keep the business functions going and to integrate some level of sustainability.

But if we’re heading to an economic downfall, is it sane to risk your investments in commodities? The answer is, YES!

Let’s understand how:

Their value rises when stocks and bonds fall

Commodities like precious metals, crops, and oil are negatively correlated with bonds and stocks, which means during a period of inflation when interest rates rise and the value of stocks and bonds fall; the value of commodities increase.

So if you’re worried about inflation affecting your investments, commodities are an ideal way to hedge against it and balance the overall value of your organizational portfolio. According to an article published in Forbes, the value of commodities will see an impressive increase by the end of this year.

They provide a store of value

A store of value means that the asset can be sold at a later time with its original value intact, which means if you invest in commodities, there’s a high probability that you’ll get an equal or higher return when you sell them.

Let’s imagine a scenario where the global economy stabilizes and there’s no inflation; the value of stocks and bonds increases. What will happen to the value of commodities? Will you lose your investments?

In such a situation, your investments might not yield high levels of profitability but they’ll retain their original value and if you choose not to sell them immediately, their value will increase over time because they survive all sorts of economic shocks. Precious metals, especially gold, is said to be an excellent store of value.

They’re liquid assets

Liquid assets can be converted into cash easily and quickly with no or low loss of value. Commodities are liquid assets and you can be sure that there will always be buyers for it. So if you need extra cash for addressing a financial emergency in your organization, you can always sell the commodities.

If you want to learn more about investing in commodities, visit our website. We have a number of informative resources that can help you to balance your organizational portfolio and increase its overall value.

In December 2017, President Trump signed the Tax Cuts and Jobs Act (TCJA) that amended the Internal Revenue Code of 1986 and altered the tax framework in the United States. Since then, there has been a lot of speculation and debate on how the Act is affecting and will continue to affect the business world.

Let’s understand how the tax cuts can affect your business:

What are Tax Cuts?

Tax cuts are deductions in the tax rate by the government. The government lowers the tax rates for businesses as an incentive for their owners and investors to encourage them to do more business, which strengthens the national economy.

Revised Corporate Tax Rate for C-Corporations

The U.S. has one of the highest tax rates in the world but most of the big corporations aren’t the highest paying tax entities because they navigate their ways around it. TCJA lowered the corporate tax rate from 35% to 21% and introduced a flat-tax rate for all the C-Corporations.

The act also changed the U.S. tax system from global to territorial so if your business is legally registered in another country, you no longer have to pay taxes according to the U.S. tax rate. Instead, each of your business’ subsidiaries will pay the tax rate of the country it’s incorporated in. This will encourage business owners who offshore their companies in other countries to bring some of their business operations back to the U.S.

New Tax Rate for Small Businesses

Most small businesses in the U.S. don’t structure themselves as C-Corporation but they can still benefit from the tax cut. Most small businesses are organized as pass-through entities and unlike C-Corporations, they aren’t taxed entities themselves but their owners pay taxes on their profits at their individual tax rate.

So, if you’re the owner of a small business, according to the new act, you can deduct an amount up to 20% of your company’s net income in addition to all other deductions.

You can learn more about taxation and different tax reforms on our website. We post about the latest news pieces from the financial world and help our readers understand how these developments can affect their business.

Leveraging is a way to generate capital using borrowed money. Most of the time, it entails using loans or ‘borrowed capital’ to invest in potentially profitable assets with high returns.

There’s definitely risk involved when leveraging, since it’s possible to drown in debt and suffer from losses that are impossible to recover from. However, the potential payoff can make the risk worth it.

Is it a smart idea?

All’s fair in love, war, and finance—since there’s no guarantee regarding any decisions made in these situations. You can make an educated and calculated guess and more often than not, fortune favors the brave.

Using borrowed capital to invest in assets is often done in the hope that over time, the asset will pay itself off. That is to say that the asset will increase in value and generate recurring revenues instead of becoming redundant.

Think of leveraged assets as a one-time or initial investment that’s going to be around for a while.

But how will these assets be of any use if they drive you into debt?

Well, an asset’s value is determined on how its leveraged: the more debt than equity it has, the more leveraged it becomes. Typically, assets purchased using leverage are high-value assets that can help with a business’s operations and profitability. For instance, a company that wants to retain control of its assets and operations can opt for leverage instead of selling shares on the stock market.

This way, you’re paying off people, banks, and firms you’ve borrowed from but not paying long term dividends or facing interference from investors. This can actually increase shareholder value because fewer people will be receiving dividends from the company.

The asset acts as a safety net too; if things don’t turn out as planned, the company or business owner can sell off the asset and recover part of their costs instead of losing out completely.

Want to learn more about leveraging assets and how leveraged finance works? Read our blog!

The trade war between China and the US has had wide-ranging repercussions. The tensions between both countries led to a drop in business growth, economic instability, and alarm among investors, business owners, and the general population.

Increased tariffs and taxes on Chinese goods increased prices significantly and caused the tech industries in both countries to suffer. Important technology, hardware, and software were unable to be exchanged and the trickle down effect was felt across the globe.

What this means for investments…

The trade war directly affects profits from investments. And while investors are looking hopeful, watching the economy continue to grow, there’s still a push towards preventing further tariffs. However, even increased tariffs and uncertainty didn’t seem to faze investors, with both Microsoft and Oracle stocks rising in value.

The Federal Reserve is predicted to cut interest rates considering the prevailing conditions. The war seems to be intensifying, but corporations like Apple have pushed for a truce, given the impact on taxes and rebates.

Signs of worry?

There’s no being certain that a deal will be struck, but between last month and now, the chances of some mutual ground being found are higher. Both economies have suffered, as have stock markets and financial hubs such as Wall Street, and businesses are concerned about the long-term effects these tensions will have.

It’s difficult to ascertain exactly what direction this modern warfare will take, but analysts are hopeful and expectant of positive outcomes. We can only wait and watch now.

To know the latest news and happenings in the finance world, log onto our website and stay informed about the things that could affect your life as a consumer or a business!

Investing in a startup company can be a risky business. The truth is that a significant percentage of startup companies fail within a short period of time. In fact, independent analyses show that between 60 to 90 percent of startups fail.

With these type of odds, you may be hesitant to invest in a startup. While there is great risk in the world of startups and seed capital, there is also the opportunity for lucrative returns.

Read on to learn how to invest for equity in a startup company. Explore tips for investing in startups and methods that are certain to yield a return on investment (ROI).

What Does Invest For Equity Mean?

For a startup, equities refer to ownership shares of a company. It is highly unlikely that a startup company will be publicly traded.

This means that the startup is privately owned. Ownership of a startup company primarily consists of a small number of investors.

In the absence of an independently wealthy owner, startup companies require a cash infusion to become operational. Each investor purchases a percentage of the startup’s equity.

How Does an Investor Make Money?

One of the key details in an equity investment is how and when will you see a return. Most equity investments come with selling restrictions. For example, you are legally required to hold the shares for a fixed duration of time.

How you make a profit depends on the investment details. Some equity stakes provide investors with an annual dividend. In other cases, investors see a distribution of the profit in set intervals.

Bottom line is that you need to calculate your equity ownership percentage. This calculation is performed by dividing your shares by the total outstanding shares. At a minimum, the profit you take in should be proportionate to your equity ownership percentage.

What Are Some Key Components of an Equity Investment?

There are a number of things that need to be considered before investing in a startup company. For starters, are you appointed to an ownership board with voting rights?

Another factor to weigh is what happens during major transition periods for the startup company. Consider a situation in which the company decides to go public.

What if the majority owners decide to sell or merge with another company? In order to make a sound investment, it is imperative that you factor in these scenarios and prepare accordingly.

What Are Some Other Things to Consider Before Investing?

First, you want to see how the startup plans to spend your cash infusion. It is important for the company to wisely spend a capital infusion.

Second, take a look at the company’s future sales and profit projections. If the forecasts are unreasonable, perhaps it is not a wise investment.

Lastly, the startup company should brief investors on a risk assessment. Before investing cash, you have to understand and accept the risk level.

Wrapping It Up

Equity group investments provide you with an opportunity to make sizable returns. They also allow you to invest in a company that you believe in and help it reach new heights.

If you enjoyed this article about how to invest in startups and for equity, check out our corporate finance blog for other great content.