Speakers: Take the next step:, www.beaconfunding.com. Jack Piazzi, Senior Financing Consultant
How to Use Your Revenue in Order to Grow Your Business
Jack Piazzi: Hi, my name is Jack Piazzi. I'm a Senior Financing Consultant here at Beacon Funding. One of the most important things I've learned during my years here is that every business needs to understand how to use their revenue in order to grow their business for the future. Now to help facilitate that, I'd like to break down the time value of money. The time value of money is the concept that the money you have on hand now is worth more than the identical sum you're doing the future. That is because the potential earning power. Now, you don't need to be an expert on this concept. But with the awareness of it, you can apply it to operate a more successful business. There are a few main takeaways that are important for any business owner.
1. Cash Now is Worth More Than Cash Later
Jack Piazzi: Point #1, cash now is worth more than cash later. If you don't have cash now, you can't use that money to spend in other areas to grow additional profit. Now, you're always going to have to spend money on your business, but don't necessarily do that as a bad thing, view that as an investment in your business, because maintaining available liquidity for things like repairs, payroll, marketing or even product development allows you to invest in your business and generate additional profit.
2. Liquidity is Key
Jack Piazzi: Point #2, liquidity is key. If you don't have cash in the bank, you won't be able to effectively operate your business. One thing every business owner learns is to expect the unexpected. No matter how great or well thought out your business plan is, and you're applying to allocate your funds. Things don't quite go according to plan now, while when you finance, you can save that money in the bank to invest in your business.
3. Financing Can Decrease Risk
Jack Piazzi: Lastly, financing can actually decrease risk. And here's what I mean, a fixed payment structure is designed so that you can spread that risk out over a long period of time, which helps avoid the risk of running out of money all at once. Now, for example, I actually did have a customer who had a truck break down. The repairs were a little over $10,000. In this case he wasn't able to, he didn't have the liquidity available to pay for it. I was able to help him out with the working capital loan, but I think it's safe to say he learned his lesson and he has a rainy day fund for the future. Now for more information on how to invest in your business, you can call me at 312-224-2587 or you can email me at firstname.lastname@example.org email@example.com firstname.lastname@example.org
Jack Piazzi: email@example.com firstname.lastname@example.org