Archive for June, 2009
Ace Hood “Cash Flow” Exclusive Triple M Interview
LoyaltyPromotions asked:
Triple M features the hottest artists of all genres and covers the most popular events. We catch exclusive interviews with the worlds most requested artists. Triple M airs every Sunday at 10pm on Channel 99 Comcast (Where available) and online on myspace.com/matrixmusicmovement and myspace.com/triplemtv. This is a portion of the episode headlining Ace Hood of “Cash Flow” Ft. Tpain and Mr Wise of I Love New York 2. Triple M is produced by Loyalty Promotional Enterprise, LLC …
Elvie Coklow
Cash Flow Management Requires Strategy
“What financial tools are available to protect my business from fluctuations in my revenue cycle since my overhead stays constant week to week?”
This question often arises as DME/HME providers strive to maintain inventory, pay overhead, expand, and even make a profit. To address this issue of “fluctuations in revenue cycle”, you must ascertain whether the financing tools available move concurrently with your revenue stream, since cash flow is determined by your revenue cycle, not your billing cycle.
Loans, including lines of credit and asset based lines, have a common limitation to solving the question. Dollar availability is fixed and cannot be reused until some portion (or all) is paid back. For example, a DME/HME company acquires a loan to upgrade equipment, pay expenses and replace inventory. A new order depletes that inventory significantly. Although payments from Medicare and other carriers may lag, expenses including loan repayment, must be paid and inventory replenished. However, additional credit is not available until the existing line has been repaid. Consequently, unless you have established a credit line sufficient to meet the cash flow requirements you might need in the future, loans won’t work because they do not fluctuate with your revenue cycle or expand with your growth.
Selling stock is another financing tool. However, equity financing addresses long term financial questions and is not typically used as a solution for short-term cash flow problems resulting from revenue cycle fluctuations.
A financial tool that directly follows the revenue cycle is Medical Accounts Receivable (MAR) funding. It provides a cash-flow solution to your working capital needs. Simply put, a specialized funding source purchases your accounts receivable and advances you cash. You deliver your product or service and get paid in 24 – 48 hours. There are virtually no limits on the amount of funding available and no requirement to repay the first MAR funding before you can receive additional funding. The more receivables generated, the more funding that is immediately available to you. This enables your cash flow to match your billing cycle…truly a revenue based financing tool that moves concurrently with your revenue cycle.
By: Michael Koslow
About the Author:
This question often arises as DME/HME providers strive to maintain inventory, pay overhead, expand, and even make a profit. To address this issue of “fluctuations in revenue cycle”, you must ascertain whether the financing tools available move concurrently with your revenue stream, since cash flow is determined by your revenue cycle, not your billing cycle.
Loans, including lines of credit and asset based lines, have a common limitation to solving the question. Dollar availability is fixed and cannot be reused until some portion (or all) is paid back. For example, a DME/HME company acquires a loan to upgrade equipment, pay expenses and replace inventory. A new order depletes that inventory significantly. Although payments from Medicare and other carriers may lag, expenses including loan repayment, must be paid and inventory replenished. However, additional credit is not available until the existing line has been repaid. Consequently, unless you have established a credit line sufficient to meet the cash flow requirements you might need in the future, loans won’t work because they do not fluctuate with your revenue cycle or expand with your growth.
Selling stock is another financing tool. However, equity financing addresses long term financial questions and is not typically used as a solution for short-term cash flow problems resulting from revenue cycle fluctuations.
A financial tool that directly follows the revenue cycle is Medical Accounts Receivable (MAR) funding. It provides a cash-flow solution to your working capital needs. Simply put, a specialized funding source purchases your accounts receivable and advances you cash. You deliver your product or service and get paid in 24 – 48 hours. There are virtually no limits on the amount of funding available and no requirement to repay the first MAR funding before you can receive additional funding. The more receivables generated, the more funding that is immediately available to you. This enables your cash flow to match your billing cycle…truly a revenue based financing tool that moves concurrently with your revenue cycle.
By: Michael Koslow
About the Author:
Sun Capital HealthCare (SCH) specializes in medical accounts receivable funding. SCH is unique being experienced in how the healthcare business works and focused solely on medical accounts receivable (MAR) funding and understands working capital needs, focusing on keeping funding costs as low as possible.
Dorian Osterhouse
Cash Flow
Cash flow is the term businesses use for the constant cycle of income and expenditures. They monitor the cash flow to ensure that there is sufficient overlap of income to cover expenditures and enable the business to meet its obligations. You can approach your cash flow problems in a number of ways that vary in complexity but accomplish the same goal. Using a pad of paper and a calculator, project your budget into the future a year or so, to show you what kind of balancing acts you will have to perform and when. Depending on your facility with computers and the software you own, easier and more sophisticated approaches are possible. Create a spreadsheet that lists your expected income and expenses in particular months or quarters of the year, you can see how the bottom line adjusts across the period. What opportunities might capture a cash reserve to get you past a future shortfall? At what time of year might you need to borrow short-term to reach the more lucrative months that will follow? Set up a checkbook accounting program in which you enter all anticipated revenues and expenses for the coming year.
By: Douglas Adams
About the Author:
By: Douglas Adams
About the Author:
Douglas Adams is the owner of Home Based Business News , a website dedicated to increasing knowledge of home based business issues.
Noelia Boehning
Under what circumstances would Cash Flow be smaller than profits?
Crocodilian asked:
I’m looking at an ususual (to me) financial statement, where cash flow is dramatically less than profits. In what circumstances could this be true? I’d always seen cash flow as exceeding profits, because profits subtract out non-cash charges (eg depreciation and amortization). I don’t think I’ve ever seen profits exceed cash flow though– does this ever happen? When?
Doloris Maker
I’m looking at an ususual (to me) financial statement, where cash flow is dramatically less than profits. In what circumstances could this be true? I’d always seen cash flow as exceeding profits, because profits subtract out non-cash charges (eg depreciation and amortization). I don’t think I’ve ever seen profits exceed cash flow though– does this ever happen? When?
Doloris Maker
Kucuk Rapci – Cash Flow – Cash Kardes
oakkalp asked:
Küçük Rapçi Cash Flow – Cash Kardes
Craig Goldrup
If investors expect the same cash flow from Companies A and B, ?
katyoungkitty asked:
If investors expect the same cash flow from Companies A and B, but are more confident that Company A’s cash flow will be close to expected value, which would have the higher stock price, and why?
Shirl Shandro
If investors expect the same cash flow from Companies A and B, but are more confident that Company A’s cash flow will be close to expected value, which would have the higher stock price, and why?
Shirl Shandro
A Cash-flow Positive Business of your Own – Must Do #5
We’ve discussed the importance of using other people’s money to invest in your company, keeping your fixed costs as low as possible, keeping the ratio of direct costs to indirect costs very high, and having a profitable business model. Now, here is the final thing you must do to have a cash-flow positive business.
5. You want an impregnable niche.
You want to be in a space that is so “you” that nobody else can get into it. In Chicken Soup, nobody could compete with Jack and Mark. We took the leadership role; and although a couple of companies tried to beat us up, they couldn’t touch us. We owned the niche of self-help books that touched your heart.
How many of you would like to own the concept of YouTube or Google?
The way you get a niche is by going for something very, very narrow. Being all things to all people is not having a niche, and it is a formula for a business that will not make money. It will never make money. You cannot manage it; you cannot finance it. You don’t know who to hire, people get distracted, and you lose money. You want to have a narrow concept.
In Japan I started a company that was the first company in Japan to do high-energy, high-entertainment training. We have audio and video equipment. It is a mix between a rock concert, a Broadway musical, and having your own TV station.
But once you have the niche, you own it. It is a very narrow kind of thing.
To give you a final example, there is a piece of equipment called the video toaster. The video toaster is from the very early days of computers. The creators offered the first hardware and software that would allow you to do broadcast quality video production on a PC. They owned the space for 15 to 20 years, completely owned it. Nobody could compete with them for that time because they had taken this completely narrow space and said, “We are going to be the people who do video production on the computer.” And they still own probably half the market for personal computer video production.
It is amazing what you can do by occupying a very narrow niche; it is hard for people to come in and compete with you in that space.
If you do these five things, your business will absolutely pay you every time.
By: JamesSkinner
About the Author:
5. You want an impregnable niche.
You want to be in a space that is so “you” that nobody else can get into it. In Chicken Soup, nobody could compete with Jack and Mark. We took the leadership role; and although a couple of companies tried to beat us up, they couldn’t touch us. We owned the niche of self-help books that touched your heart.
How many of you would like to own the concept of YouTube or Google?
The way you get a niche is by going for something very, very narrow. Being all things to all people is not having a niche, and it is a formula for a business that will not make money. It will never make money. You cannot manage it; you cannot finance it. You don’t know who to hire, people get distracted, and you lose money. You want to have a narrow concept.
In Japan I started a company that was the first company in Japan to do high-energy, high-entertainment training. We have audio and video equipment. It is a mix between a rock concert, a Broadway musical, and having your own TV station.
But once you have the niche, you own it. It is a very narrow kind of thing.
To give you a final example, there is a piece of equipment called the video toaster. The video toaster is from the very early days of computers. The creators offered the first hardware and software that would allow you to do broadcast quality video production on a PC. They owned the space for 15 to 20 years, completely owned it. Nobody could compete with them for that time because they had taken this completely narrow space and said, “We are going to be the people who do video production on the computer.” And they still own probably half the market for personal computer video production.
It is amazing what you can do by occupying a very narrow niche; it is hard for people to come in and compete with you in that space.
If you do these five things, your business will absolutely pay you every time.
By: JamesSkinner
About the Author:
James Skinner is a world-renowned business man and philosopher. He is recognized as one of the world’s foremost business thinkers and appears regularly on Japanese television. He has built two global financial groups that manage billions in client assets. His success is limitless, and he can show you how to achieve your own greatness. Get his valuable insight at http://www.IdeasThatCanChangeYourLife.com.
Zandra Guillerault