Frequently Asked Questions
“We are getting by pretty well. Why do we need to change the way we have been doing things?”
To increase net profit and cash flow, avoid making costly mistakes, increase your personal wealth and the value of the business, make your business more attractive to lenders and investors, to enable you access commercial credit facilities at the lowest possible interest rates and retain them year to year, reduce your stress level and allow you to spend more time with your family, enjoying recreational pursuits. There are many more. If you are tired of watching your business perform marginally or just get by and want to change that picture, you will want to strengthen the financial foundation upon which the company can grow.
Lack of strategic planning and proper implementation in this highly competitive and swiftly changing market environment might result in the loss of your company, your livelihood and all of the investment you have made to date. When you reach retirement and want to sell your business to fund your retirement, what if no one wants to buy it?
“Why do I need a business plan and a balanced management team?”
If you were a football coach, would you ever conceive of entering a game with members of the front line missing, without having scouted your competition, without having created a game plan, designed plays and practiced them beforehand? If your game plan was not working as successfully as you hoped, would you not make adjustments at half time to achieve better results? If you do not have a “game plan” as a road map to follow to get you from point A to point B, operations can get off course. Side trips can be costly and delay arrival at the desired destination on time.
Having a balanced and competent management team in place allows owners to delegate with confidence. They can concentrate on the parts of the business they enjoy, knowing that the others parts of the business they are maybe not so strong with, receive balanced attention too.
“Why should I have my loan applications pre-underwritten and packaged?”
To increase the speed with which the transaction is approved and funded at the lowest possible interest rate.
Picture yourself back in school and there is a final examination to take in order to pass the course. Would you not study and prepare beforehand? Would you not want to know the answers to the test questions ahead of time? How much better would you feel if you could walk in to take the test, confident that you were going to receive an “A”? Submitting a loan request to a lender is like going in to take that final exam. You want to be fully prepared.
“Pre-Underwriting” and packaging saves time. The work of calculating cash flow and identifying adjustments to cash flow numbers is already laid out for the underwriter. This allows them to approve the application package in days rather than weeks and book more quality business faster. This preparation helps them achieve their production goals faster and improves your working relationship with your credit provider. It also reduces or eliminates the tedious back and forth process during underwriting that stresses both parties. Would you rather have your loan request approved in six days or six months?
“How do I strengthen my team if I have a limited number of managers and cannot afford additional staff at this time? ”
By outsourcing many of the vital functions to companies that specialize in the tasks you neither have the time or expertise to do and accomplish them more economically than you can. A good example of outsourcing is a company called Transworld Systems which for a small fee, between $10 to $12, will take your receivable and collect it as a first party representative. If you are using your A/R as collateral for a line of credit, timely collection of receivables is critical. Young business cannot afford expensive attorneys but can obtain cost effective legal support from an excellent firm locally using Legal Shield. This coverage can be leveraged nationally as well. Go Small Biz is another very cost effective means to obtain administrative and technical support for your business. learn more about these resources by contacting Wiley Consulting, Inc.
Monetary and other benefits:
The savings in interest and fees for services with credit providers usually pays for the professional consulting services rendered many times over. Add to those saving the increased profit you will enjoy by improving the way your business runs and the cost vs. reward equation improves even more. Another benefit is the time saved while accomplishing your financial goals. There is also piece of mind knowing that the administrative aspects of the business are strengthened and better managed. The fees charged are an investment in you and your business which is not only your livelihood but perhaps your legacy to be passed from generation to generation. Those are very good things in which to invest.