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July 27, 2010

Small Business Loans from Wal-Mart?

Filed under: Other finance programs — Tags: , , , — afp @ 10:32 pm

31-shopping_list

Shopping list:

Eggs- check

Milk- check

Bread- check

Small Business Loan- wait… what?

Are you a small business owner in need of capital?  If so, a Sam’s Club membership could open up access to it.  The warehouse shopping centers, a division of Wal-Mart Stores Inc, recently announced plans to test a small-business loan program in partnership with Superior Financial Group LLC.  Superior is one of just 13 federally licensed non-bank lenders approved to make SBA-guaranteed loans.  The program is great especially for small businesses who are getting declined at their local banks and having lines of credits pulled from them.  We have access to this program and have  been able to help several customers get the working capital they need for their business to increase inventory, expand their business or just meet operating expenses.  This program has a long amortized term of 10 years so it is affordable on cash flow and can be paid off early at any point.  This is certainly a fantastic program but the real question I have is how do small-businesses feel about Sam’s Club offering financing?  Wal-Mart/Sam’s Club is well known as a company who has been known to squash small business, driving mom and pop shops out of business due to their low prices that no one can compete with.  It will be interesting to see if businesses are in such dire need of capital that they turn to their “enemy” for financing.  I would be interested to hear from some of the small business owners out there about whether or not they would use Sam’s Club for working capital loans.  Send your thoughts to us!

Call us at 877-237-7287 for more details on this working capital loan program.

July 22, 2010

Persistence Separates Success From Failure

Filed under: General — Tags: , , , — afp @ 4:50 pm

Persistence-2

Persistence… most of the time it seems its easier said than done.  How do we embrace persistence in difficult times?  How do we still stay on the path when it all seems blurred or things don´t seem to be going as planned?

Its focusing on our desired dream or goal that helps us embrace persistence in difficult times.  It is reminding ourselves of the great reward that is to meet us at the end of the journey.  The more we can envision our desired dream or goal, the more challenges begin to appear small as opposed to being obstacles.  It is the challenges we face that make the journey of achieving a dream or goal worthwhile.  Its overcoming the challenges that strengthens us and gives us a strong sense of accomplishment.  True greatness comes from being able to stand up when we fall and continue walking.  Its usually when things get very difficult that we are actually close to achieving success .

As Calvin Coolidge said. “Nothing in the world can take the place of persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent. The slogan ‘Press On’ has solved and always will solve the problems of the human race.”

Our business has recently shown a huge influx of activity which tells me the growing stages of our economy are ahead of us.  We should all pat ourselves on the back for making it through the worst recession we have ever seen.  But let’s not forget to keep that persistence and continue to look at our goals.   It is time to grow and rebuild and we all need to keep that same persistence that kept us going over the tough times. 

I’m going to end with a success distinction from one of my favorite books, “101 Distinctions between Success and Failure” by Keith Cameron Smith and Doug Hanson.

Success if persistence.

Failure is giving up.

Persistence is one of the keys to success and there is no substitute for it.  If you know where you want to go and you don’t give up, you will eventually get there.  Giving up is not an option if you are committed to fulfilling your dreams.  Those who give up, show that they weren’t really committed in the first place. 

Most people will persist until the going gets tough, then they give up.  A few people will keep on keeping on until they reach their goals and these are the people who become successful.  There is truth in the old saying “Tough times don’t last but tough people do.”  Being persistence is being tough.  It means you are committed to doing whatever it takes to be successful.  Don’t settle for less.  That’s called giving up, and you will feel like a failure when you do.  Become a “whatever it takes” person and you will succeed. 

Success is persistence.

July 13, 2010

The Fun of Creating Your Company Name

Filed under: General — Tags: , — afp @ 8:48 am

companynames

Creating a name for a company is one of the fundamental elements to starting a business.  You want to make sure people will remember the name of your company by either making it unique or making sure it explains what you do.  I read an article recently telling how some of the most widely known companies in the World created their names and the stories behind them.  I found it interesting and wanted to share.   The full article can be found at http://bit.ly/bLOPqd. 

1. Google

The name started as a joke about the amount of information the search engine could search, or a “Googol” of information. (A googol is the number 1 followed by 100 zeros.) When founders Larry Page and Sergey Brin gave a presentation to an angel investor, they received a check made out to “Google.”

2. Hotmail

Sabeer Bhatia and Jack Smith had the idea of checking their email via a web interface, and tried to find a name that ended in “mail.” They finally settled on hotmail because it had the letters “html,” referencing the HTML programming language used to help create the product.

3. Volkswagen

Volkswagen literally means “people’s car.” Adolf Hitler initially came up with the idea for “cars for the masses,” which would be a state-sponsored “Volkswagen” program. Hitler wanted to create a more affordable car that was able to transport two adults and three children at speeds of 62 mph. He choose the car manufacturer Porsche to carry out the project, and the rest, as they say, is history.

4. Yahoo

The word “yahoo” was coined by Jonathan Swift in the the book Gulliver’s Travels. The term represented a repulsive, filthy creatures that resembled humans (think: Neanderthal). Yahoo! founders Jerry Yang and David Filo considered themselves yahoos, and thought the term would be appropriate for their joint venture.

5. Asus

The consumer electronic company is named after Pegasus, the winged horse of Greek mythology. The founders dropped the first three letters for the high position in alphabetical listings. In 1998 Asus created a spinoff company named Pegatron, using the other unused letters of Pegasus.

6. Cisco

Contrary to popular belief and theories, Cisco is simply short for San Francisco. Their logo resembles the suspension cables found on the Golden Gate bridge.

7. Canon

When Canon was founded in 1933 under the name Precision Optical Instruments Laboratory. Two years later they adopted “Canon” after the company’s first camera, the Kwanon. Kwanon is the Japanese name of the Buddhist bodhisattva of mercy.

8. Coca-Cola

Coca-Cola’s name comes from the the coca leaves and kola nuts used as flavoring in the soft drink. Eventually Coca-Cola creator John S. Pemberton changed the ‘K’ of kola to ‘C’ to create a more fluid name.

9. FranklinCovey

The planning product line was named after Benjamin Franklin and Stephen Covey. The company was formed in 1997 from the combining of the two companies FranklinQuest and the Covey Leadership Center.

10. IKEA

IKEA is simply a random collection of letters, based from the first letters of founder Ingvar Kamprad’s name in addition to the first letters of the names of the Swedish property and the village in which he grew up: Ingvar Kamprad Elmtaryd Agunnaryd.

11. Lego

Lego is a combination of the Danish phrase “leg godt,” which translates to “play well.” Initially the company built wooden toys, and later switched to making plastic bricks. Lego also means “I put together” in Latin, but the Lego Group claims this merely coincidence and the origin of the word is strictly Danish.

12. Reebok

Reebok is simply an alternate spelling of “rhebok,” an African antelope. The company founders found the word in a South African edition of a dictionary won by the Joe Foster, son of the Reebok founder J.W. Foster.

13. Sharp

The Japanese consumer electronics company is named after its first product, an ever-sharp pencil that was created in 1915.

14. Six Apart

Six Apart’s name has one of the most interesting origins. The web company’s co-founders Ben and Mena Trott were born six days apart.

15. Skype

The original prototype of the company’s flagship product had the name “Sky-Peer-to-Peer,” which was shrunk down to Skyper, then finally Skype.

16. Verizon

Verizon is a combination of the words veritas, which is Latin for “truth,” and horizon.

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July 6, 2010

Benefits of Leasing… Leasing 101

Filed under: Leasing tips — Tags: , , , , , , — afp @ 8:52 am

cash flow

I am asked on a consistent basis by customers what the benefits of leasing are and how leasing differs from a loan with their bank.  There are many differences and it is important to understand them before deciding what payment/finance option is the best for your company when looking to acquire equipment.  Here are some of the main benefits to equipment leasing:

Conservation of Working Capital:

With an equipment lease, you get 100% financing so the amount of cash needed up-front is reduced. Even if you have the cash to purchase your equipment it may not always be the best choice. With equipment leasing, cash can be used for other business uses such as expanding sales, new marketing programs, quantity discounts, increasing inventories, opening a new line of business, or simply cash reserves.

If you decide not to lease, you will have to come up with the entire amount for a cash purchase OR a sizeable down payment as well as higher payments for traditional financing.

Preservation of Credit Lines:

A lease preserves bank lines of credit for working capital, seasonal requirements, other appreciating investment opportunities, or emergencies. Equipment leasing is like opening an additional line of credit.

Better Terms and Structure than Banks:

Most bank loans require larger down payments, compensating balances, additional collateral, or restrictive covenants. They may not be as flexible in their payment schedules and may tie the financing to a floating interest rate. Equipment leasing has fixed payments, flexible schedules, low down payment, and does not require extra collateral.

Off-Balance Sheet Financing:

Larger companies often have a need to maintain certain debt-to-equity ratios or comply with debt covenants. Operating leases do not show on the balance sheet as liabilities and the equipment is not counted as an asset, thereby keeping the ratios unaffected.

Tax Advantages:

Operating leases are generally treated as fully deductible direct operating expenses, which means a lower taxable income. In addition, equipment leasing can be a tool to avoid certain negative impact of the Alternative Minimum Tax. Your tax professional should be consulted to determine what percentage of other types of leases could be deducted.

Leasing Provides Sales/Use Tax Deferral:

With a purchase, sales tax must be paid in full at the time of purchase. With (most types of) equipment leasing sales/use tax is paid over time as the equipment is used (except in Illinois, Maine, New Jersey, and the District of Columbia). This can result in substantial cash savings in the first year of the lease.

Hedge Against Inflation:

With the lower, fixed-rate payments of an equipment lease, you’re protected against inflation. With equipment leasing, cash outlays are deferred as compared to an upfront purchase. Inflation will then lessen the cost of future lease payments, since the payments will be made with “cheaper” dollars. You will be making your monthly payments to the leasing company with ever-inflating dollars during the term of the lease. This actually reduces the cost of financing to you in real dollars, which is an advantage that is often overlooked.

Maintains Owner’s Equity:

Many companies in a growth phase sell stock to raise money for expansion. A well-conceived lease program can allow a company to grow while minimizing the need for equity financing.

Facilitates budgeting:

Equipment leasing simplifies accounting procedures and eliminates depreciation scheduling. A fixed lease cost ensures consistent control over equipment expenditure.

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June 30, 2010

How Fit is your customer service department?

Filed under: General — Tags: , , — afp @ 8:16 am

three_fit_people

Have you ever considered the fitness level of your customer service department?  I’m not talking about how many push-ups or sit-ups they can do.  I’m asking if the customer service your team is providing is running at full speed.  If you haven’t given this much thought, you might not be seeing the big picture issues that could be hurting your business.  There are many components in developing a fitness program to help an individual hit their peak performance.  Your customer service department also has many components that need to be maintained to make sure you are giving the best customer service you can.  The skills your customer service department needs may vary a little from business to business but I’m going to bring out a couple of main skills that are necessary for your customer service team to reach an optimal level of customer service.  Here are some of the questions you can ask to see if you are succeeding or where improvements need to be made:

How Do They Sound?

This is actually far more important than what you may think. The voices of your customer service representatives are often the first impression that a customer receives from your company. Are they positive, professional, and upbeat, or do they sound bored and disinterested?  At one of the first companies I worked for, we had small mirrors on our desks that read, “Can Your Smile Be Heard?”  It was a great reminder that the sound of your voice makes a big impression on your customer. Make some calls and find out for yourself how your team rates. If you’re hearing less than ideal voices on the line, guess what? Your customers are, too!

What Do They Say?

Does your team have the necessary training, keywords, or call guide so that they’re prepared and know what to say? If not, you’re making it more difficult for your team and creating an environment where miscommunication is likely to occur. You don’t want your customer service team giving mixed messages to customers as it will lower your credibility and cause you to lose customers.  Take the time to provide them with the words to guide them through their phone calls. No, they don’t need to recite a script, but an outline or suggestions of what to say will go a long way to making your customer service consistent and clear.

What is Their Attitude?

Are your customer service reps happy with their job and with your company?  Do you offer incentives and recognition for jobs well done?  If not, I would recommend making some changes.  Employee dissatisfaction can dramatically affect a company’s customer service and ultimately its bottom line. If your team feels underappreciated or negative, your customers will know.  Whether they communicate this directly or indirectly, a negative attitude of an unhappy worker can not be masked. 

Is Their Workspace Pleasant?

Is your customer service team in a nice area?  Do they have comfortable desks, sunlight and good lighting?  Or do you have them shoved into a dark corner?  It always amazes me when companies choose the worst location for their customer service team.  These are the individuals who are on the front-line talking to customers on a daily basis.  It is important to make sure they are happy in their work environment!  If you need to make some changes, get your team involved and ask them for tips in enhancing their working environment. 

Are You Hiring the Right People for the Job?

Who you hire can make all of the difference. A good customer service rep should give each customer a warm greeting, not allow prejudices to influence their quality of service, be a good listener and always keep the conversation on a professional level.  You may have other important traits for your company but just make sure your reps mesh well with the company’s image and philosophy. 

Are You Keeping Them Fresh and Updated?

Training your customer service team and all employees in general should not be limited to when they are first hired.  Enhancing your employees skills throughout their career with your company is important and makes sure your team is knowledgeable and up to date on everything they need to know. 

Are They Cross-Selling and Up-Selling?

Your customer service department should be an extension of your sales team.  They may be the only people talking to your current customer base outside of the sales team.  Can you find ways for them to increase your ROI?  In one of my former companies, we would ask the customer if there was any financing or leasing we could help them with each time they called into customer service.  Even if the sales person had talked to them 3 weeks ago sometimes we would just catch that customer at the right time.  Give your customer service team the ability to cross-sell and up-sell and then give them incentives for making any additional sales.  You will see your sales and bottom line increase.

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June 14, 2010

Tips to Get Rid of the “Ums” When Presenting

Filed under: General — Tags: , , , , — afp @ 11:13 am

presentation

All of us have listened to a presentation before and have been distracted by the speaker constantly saying “um.”  Odds are that at one time or another you’ve been that presenter.  We use these fillers for a lot of reasons, for one we think that filling the dead spaces with “um” sounds smarter than saying nothing at all.  We’re wrong, of course.  Filling in silence with “um” does nothing more than annoy your audience and may reduce your credibility as a speaker.  It may leave people questioning your grasp of the subject or your credibility to be speaking on it.  This doesn’t come to play just in face-to-face presentations, but also online presentations. It can be even worse to use fillers online since the audience can not see your physical presence and relies solely on your vocal quality. 

Here are some tips to help you be aware of the fillers you use (doesn’t have to be “um”) and how to correct them. 

  • As my piano teacher used to say “practice makes perfect.”  Record yourself, notice how many times you use fillers and find a way to stop using them. 
  • Practice pausing or using silence instead of saying “um”.  The pause is never as long to the audience as it feels to you.  The fact is that time is relative (Einstein once said that a second with your hand on a hot stove feels like an hour, an hour with a pretty girl feels like a second- and he should know about relativity). It is okay to take a moment to stop and think.  You will be amazed at how little time it takes your brain to process all the information it needs and come back with an intelligent response.
  • Practice with a friend and find a creative way for them to communicate each time you use a filler.  Examples could include throwing a marble into a glass jar, ringing a bell, or yelling out the filler word each time you use it.  I’ve personally had someone throw marbles in a glass jar each time I said “um” and it is amazing how quickly you recognize it and correct it. 
  • Videotape yourself and write down how many times you use a filler word.  The first time I did this I was dumbfounded at how many times I used “um.”
  • If you don’t know the answer to a question, instead of using a filler, say, “I’m not sure; let me look that up for you.”  It is okay not to know all of the answers.
  • Always prepare for your speeches by writing them out first (when it is possible).  Do not attempt to deliver a public speech without writing it out and practicing it several times beforehand.  Many times fillers are used when you are not prepared, so be prepared and know what you want to say and when.
  • Break your notes into small sections.  Even good speakers can use fillers when they lose their place in their notes. 
  • If your speech is lengthy, try getting your audience to give feedback or get them involved.  After so long, your brain will demand a time out.  Make your presentation more conversational than presentational if possible.
  • If you are using any tools during your presentation, practice giving your speech with them.  Make sure you are comfortable with any tools you utilize and with the presentation platform so you can concentrate solely on your presentation.

You will be amazed at the increased impact you will have on your audience by simply removing the fillers.  Ummm.. good luck!

June 1, 2010

May 24, 2010

Have Fun and Watch Your Profits Increase!

Filed under: General — Tags: , , , — afp @ 8:18 am

increasing-profits

Success is having some fun every day.

Failure is being serious all the time.

Having fun every day is the best way to live life.  Fun is defined differently for each of us, so it’s important you know what would bring you happiness today- and then make it happen. 

We all need something to look forward to.  Remember when you were a kid and you were going to summer camp the next day?  You could hardly sleep the night before, in anticipation of the fun week ahead.  Even though you only got a few hours of sleep, when your parents woke you up, you sprang out of bed, eyes wide open, full of energy, and ready to seize the day!  Compare that to how you woke up for an ordinary day of school.  If you were like most kids, your parents had to drag you out of bed.

What is the main reason for the different energy levels?  It’s the fun you associated with the coming day.  We are no different as adults.  We need something to look forward to. 

I’ve found that most people don’t create fun in their day.  Instead, they are waiting for something or someone fun to appear.  How could you bring some fun into your life today?  Tomorrow?  This week?

If you’ve having trouble thinking of something, then you’ve probably been taking yourself a little too seriously.  Think about what fun means to you and make sure you build in some things to look forward to every day.

Success is having some fun everyday. 

(Above taken from 101 Distinctions between Success and Failure by Keith Cameron Smith and Doug Hanson)

Having fun in your business does not mean acting unprofessional and not servicing your customers.  Having fun in your business means challenging your employees to bring energy, passion and a positive attitude  with them each day.  It means having an environment where your employees are truly connected to their work, to their colleagues and to their customers.  This brings me back to the FiSH! Philosophy book I read years ago where their four steps include Play, Make Their Day, Be There and Choose Your Attitude.  Thousands of organizations worldwide have adopted the FiSH! Philosophy and learned how to incorporate the four FiSH! principles into their organization’s every day life.  Find ways to keep the passion in your organization and that will flow through to your customers and your bottom line.  Find ways to Have FUN every day.

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May 17, 2010

Growing Your Business Through Referrals

Filed under: Sales Tips — Tags: , , , , — afp @ 2:57 pm

referral_program

Every professional sales person knows that one of the greatest ways to grow a business is through referrals.  Getting referrals isn’t something that only the sales department should be responsible for though.  Many levels of employees usually deal with a customer and sometimes it is the front line employees who have the most contact and strongest relationship with the customer.  A lot of people teach you that if you take good care of your customers they will automatically give you referrals, but that is not necessarily true.  I’ll bet some of your very best customers haven’t given you one referral.  Why?  Because they are busy and have a thousand other things on their mind, just like you do.  The key to getting a consistent stream of referrals is to build the referral process into the transaction.  Asking for referrals as a sales person can be uncomfortable and can make non-sales people prefer to get a root canal at the dentist.  But, it doesn’t have to be that way.  People often make referrals difficult and uncomfortable because they ask for them at the wrong time. Wait to ask for a referral when the client is happiest, shortly after they’ve received the product or service. It is also important to remember that the sales person shouldn’t always be the person who has to ask for the referral; the sales person is not always the individual who has built a rapport with the client. The person delivering the product or service is usually the person who has built a relationship with the client. By developing a cross-functional team of sales, service, and product delivery people, you can develop a referral process that is a win-win for everyone.

Here are a series of tips that you can share with your team to help get referrals and build your network.

  • Listen and remind the customer of benefits that are important to them- be aware when clients tell you benefits during a phone call or general service call so that you can bring those benefits up during a request for a referral.
  • Describe your ideal customer- Describe some other solutions that you have provided for other companies or organizations.  It will help them start to think of other people they could refer to you.
  • Give a benefit for giving a referral- Create some form of thank you or recognition for giving referrals and make sure your clients know about it. Examples could be movie tickets, flowers, thank you notes and, of course, cash, go a long way towards motivating folks. Don’t worry so much about what, just realize that appreciation goes a long way with people.
  • Suggest They Already Know Someone- If you know of a specific person or client that you would like to be referred to, provide your client with the opportunity to mention them. Just try to avoid putting the person on the spot. Instead, bring it up and give them time to consider the referral.
  • Ask for an Introduction- Asking for an introduction is a great way to break the ice with the client and also gives you a real example of someone who has benefited for your product or service.

Just constantly remind yourselves and your employees of the benefits of asking for the referral and then just ask for it.  

Now once you have the referral, you have to know how to turn them into a client.  Make sure that even though you were referred to them by another customer or friend that you just don’t assume that they know about your business and how you can help them.  People want to buy from businesses and individuals they know, like and trust.  The referral may have some trust for you since they know the person who referred them, however, they need to fully understand what benefit you can offer them.  The greatest way to turn a referral into a client is through education.  Take time to understand their business and their needs and educate them on how they can benefit from your product or service.  Trying to close a prospect, even a referred prospect, before they really understand the value you can provide them is like asking someone to marry you without going on a date. 

Create a referral system in your business for who and how you ask for referrals and then once you have a referral in your hands, educate them on how your product or service can benefit their company.  And once they have become a happy client, ask for a referral!

Visit our website at www.financewithafp.com or call us at 877-237-7287 to learn about our Friends & Family program.  We’ll give a $100 cash referral gift to anyone who refers a customer to us that results in a closed deal!

May 10, 2010

Tell me a little about your company…

Filed under: Sales Tips — Tags: , — afp @ 9:00 am

salesman-431

How do you answer a potential customer when they say, “Tell me a little about your company.”  If you are like most salespeople, you view this as an invitation to rattle off your 35 minute PowerPoint on your history, management, value propositions, and top it off by giving them several reasons why they should work with your company.   When your customer asks you this question, they are not really interest in hearing what you have to say.  They aren’t lying to you or having bad intentions, the problem is they never learned how to buy and they just don’t know what else to ask you.  When they are asking this question, they aren’t at all interested in your story, they want to hear their story.  How your company is going to help their company.  This mid-understanding can send many a sales person down the path of literally talking their way out of the sale. 

So the question is how do you answer their questions by bringing them back to their own company?  You shouldn’t embarrass a customer by ignoring their questions or refusing to answer the question, but you should find a way to quickly turn the conversation back to them.  Once they start talking about themselves and their company, you have the opening to show them how you can help their business.  This is similar to product selling where you give the customer a sample versus telling them of the product’s features.   Examples include having them lay on the mattress if you are selling mattresses or giving them a chip if you are selling salsa.  Actively listen when they are telling you about their company and their issues, include examples of how you have helped other customers in their same situation.  Show them why they should do business with your company, don’t tell them.  Actively show the customer how your business and/or product can fit into their company. 

Let your competitors sell by telling their story.  It won’t work very well because the only story the customer is interested in is their own.  Find a way to work your company into their story.  Don’t talk your way out of the sale.

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