Your Profit Authority

Seeking $300K in Funding! Texas-based company looking for $300,000 in financing for equipment or real estate, with assets valued at double the loan amount. Secure opportunity for lenders. Interested? Let’s connect! #Opportunity #TexasBusiness #Financing

Obviously big financial mistakes can ruin a business, but what about the little ones? Most clients wave me off when I tell them their labor is 2% high, or their rent is 1.5% higher than recommended. To put this in perspective, just add those two together and that equals 3.5% of the average net profit that most businesses should expect if everything is going well. That's 35% of the reason we go into business. Usually that comes right out of the owner's pocket as they reduce their paycheck or skip it entirely. How long would an employee stick around if you cut their pay by 35% or missed periodic paychecks and never made them up??Little financial mistakes do add up to a whole lot and really quickly. Now you know.

Can a small business DIY Financial turnaround work??Yes. ? However, as in most DIY projects, they don't turn out quite as well as what a pro would do, it takes a lot more time to achieve, and they ultimately can cost a fair amount more.?Not the risk I would take with my business, kids college fund, my house, my marriage... As a DIY guy myself, I first have to spend time studying what I'm about to take on.?Good thing is that I know I'm pretty handy with mechanical, electrical, plumbing etc.?I also know I'll have to buy some tools to do certain tasks properly,?others I can substitute,?but there is usually a price to pay for that as well. I may have to start, stop, undo and redo, because I made a wrong move and put something in backwards or upside down or used the wrong screw because it was in millimeters.?I try to move slowly and thoughtfully to avoid this, but that also costs me time. How does this apply to your business??Every minute you delay improvement of cash flow and profit, it costs you dearly.?When we ask how much more a small $1,000,000 business could make if it operated at an industry standard level of profit, we hear $150,000 to $250,000, just having cash to support new business can often double sales. If you make mistakes, problems surface that you don't know how to deal with or avoid, and the benefits continue to escape your reach and dwindle. You might save the professionals fees, but at what cost? I'm sure you're thinking,?Of course he'd say that, it's what he’s done for over 40 years.? So can you trust what I'm saying, or do I have some hidden agenda??The odds of me meeting even a very small percentage of those reading this, is slim.?So why tell you this then? Because it painful to watch someone do themselves harm when you know it can be avoided. Think of standing by and watching your child, parent, or pet do something you know will hurt them.?There are times you meet people who don’t exactly draw you in, but nonetheless I feel impelled to save the business because I think its worth saving. ? So how else can this help??Imagine doing what you’re so good at!!!?While a pro is fixing the financial stability of your company, you actually take the time to sell or engineer which in 80% of small businesses is what got them into business.?While we cleaned up financials of a recent client, he went from $3,000,000 to $6,000,000 in 6 months!?Now that’s a far better use of your time then DIY stuff.?Why do you hire employees??So you can keep doing what you’re good at while they do things you aren’t as good at, don’t like or simply think your time could be used more efficiently. ? Last thought.?Owners who have tried to do some or all of a DIY turnaround, have either gone out of business or made a mess out of things that they then have to pay more to clean up and the results are inevitably less desirable then they should have been. ? Now You Know!

CASH FLOW MYTHS - DEMISTIFIED - COVID Happened - Competition - Unforeseen expenses - Rising material costs - Rising labor costs - Rising Insurance costs - Sales plummeted - Excessive Interest rates These are a few of the reasons we hear from clients to explain why they experience cash flow problems. A recent client had a dramatic drop in sales and claimed the drop to be the root cause of their poor cash flow. We discovered that direct labor was double what it should have been. He explained that he didn’t want to lose any good employees, or he wouldn’t be able to produce the work when it started coming in again. Well sure, when I phrase it like that, the problem is obvious. But when you’re up to your waist in alligators, it’s hard to remember why you were there in the first place. So how much do we cut payroll and how do we go about it? Are we priced properly in today’s market? Will cutting payroll create service problems? We all make strange decisions when we are in survival mode . AHHH the life of an entrepreneur!! Seeing the numbers, understanding what they are telling you and knowing what to do to change them, all while maintaining a clear head, are ALL necessary elements. Identifying the problem(s) is just the tip of the iceberg, knowing what to do to correct the problem and repair the damage, is an entirely different set of skills known only to a small group of specialists that represent less than 1percent of financial specialists. Then there’s the trust issue. We have been in the turnaround business for 40+ years and have thousands of successes. Beware of the “Experts” who are one trick ponies and have a resume consisting of little history, and can’t provide references of successful turnarounds. We can’t tell if there is a solution until we invest an hour understanding your situation. This is done at no cost, just to determine IF we can help. Next, make sure they can provide relief quickly when you have tight cash flow. It can take time for an entire turnaround, but there are always things that can be done early on that will enhance cash flow. You should see both short-term and long-term benefits. This extends to maintaining profit and cash flow once it is attained. There are numerous outside forces that attack even a healthy company on a daily basis. Competition, technology, new product development, changing landscapes like political issues that drive the economy. Staying the course is like the small adjustments we make while driving our car. There is no such thing as a self-driving business. According to Christine Christian, the former CEO of Dunn & Bradstreet, over 80% of small businesses fail due to not understanding their financial numbers. Taking that to the next step, even if they did understand the numbers, they don’t know what actions would produce a solution that would stick, or how to adjust the plan on the fly as new issues pop up. Knowing your numbers is THE most important first step. Now you know!

Business Bankruptcy Don’t do it! It’s a trick!! ... unless you know exactly what to expect and ALL related costs and time. Why you might contemplate bankruptcy and what you expect to get by filing one, can easily be a LOT different than what you actually end up with. There are various types of bankruptcy filings, but the common two for a business are Chapter 7 and Chapter 11. The newer one on the scene is a Subchapter 5 and falls under an 11. Chapter 7 liquidates and closes the business, while Chapter 11 attempts to reorganize the business. However, the greater amount of Chapter 11 filings end up in a Chapter 7 liquidation. The cost, the work, and the accounting involved in an 11 is overbearing, especially for a small business. Not to mention, unless you find out what caused the business to amass excessive debt, there is no way to move forward and meet all your operating expenses, which is a requirement in a Chapter 11 and a Subchapter 5. The nasty truth is the vast majority of bankruptcy filings end up closing the business, selling off assets and triggering personal guarantees that will linger long after the business is gone. Are there alternatives? So glad you asked! There are numerous alternatives in fact. Ways to settle debt, reduce debt, eliminate debt AND all while making the company profitable. Can you do this yourself? With over 40 years of doing just this professionally, I would not suggest it. In the many times I have seen well intentioned business owners attempt to take this on, I have seen many make mistakes that made the situation much worse. The overwhelming response we hear is, “but I can’t afford to hire someone to do this”. In fact, you can! If the right provider can make the company cash flow, or even qualify for lending, you start making money right away. In the great number of instances, this profit is many times the cost to create the profit. In other words, you spend $1 and make $10. That’s not brain surgery. Why don’t entrepreneurs do this more often? Simply because they become fixated on getting money via a loan, convince themselves that they cannot afford help, and pay no attention to fixing the true problems that is causing the losses. I believe that is referred to as “A Recipe for Disaster”. Our experience creates cash flow within WEEKS. Yes, you have to bite the bullet to get started, but a deer in the headlights is likely to be run over. Now You Know!

We have quoted for years that 87% of businesses convert from a Chapter 11 (and subchapter 5 now) to a Chapter 7 liquidation and the 13% remaining are either big companies that were split up and sold off piecemeal, or big companies that built up a war chest of cash prior to filing a reorganization. The attached article further articulates this. Don't file business bankruptcy! Go to https://lnkd.in/gmVfWDVG FIRST! https://lnkd.in/eTDU-_5J

DIY Business Financing In my first business, I set out to find $300,000 to buy much needed equipment.?I went through 26 banks!?Each time I tried to learn why I was turned down and made adjustments in my business plan for the bankers.?It finally took, after 26 banks and close to a year of learning, before I met an old-fashioned banker who based his decisions on gut instinct and approved my loan.?Yeah for me!!! Here's the takeaway.?I found a needle in a haystack by tripping over it.?I patted my own back for tenacity, but it was pure luck finding a banker who believed in me and believed in my business.?Now, having done this professionally for over 40 years, I have eleven different ways to get funding for this type of project that can be done within a week. What it cost me in lost time that could have been used growing my business, and lost revenue opportunities over that year, was freaky scary.?Easily in the hundreds of thousands of dollars. I could have paid off the equipment I had just purchased with what I could have earned off it in that one year.?Even then, finding that one banker out of 26 was probably more dumb luck than a fine-tuned proposal. Most larger businesses sub out anything that doesn't focus on as their business model.?Now you know why. They have the resources to focus on their core business while someone else tackles these mundane tasks. Your Profit Authority was established with the understanding that most small businesses do not have that luxury.

Do you have a cash flow problem? Take this simple test.?Look at your company balance sheet.?(If you don’t have one, call us.) Take your Accounts Receivables and divide that number by your Accounts Payable.?If the number is .70 or lower, you are most likely having cash flow problems that need to be resolved.?Not sure what to do??Call us and we will help.?

If you need to improve cash flow for your business, as an expert for over 45 years in business finance I strongly recommend consolidating or eliminating current debt such as MCA loans or the SBA EIDL loan.?According to the Wall Street Journal, the SBA just turned over 860,000 delinquent EIDL loans for collection. You need cash flow to survive and NOT with more high interest charges!?You have 5 options to choose from. Which of the options below appeals to you the most? 1. ?Get a short-term loan to buy time and make a long term plan 2. ?Find an Investor 3. ?Restructure the business finances 4. ?Sell the business and protect your personal assets 5. ?Do nothing and hope for the best Comment or DM us for how we can help or go to https://lnkd.in/gtZsDcKB for more information.

Does your business have an EIDL loan? The SBA is stepping up action against companies and we can help! There are over 860,000 EIDL loans due and owing as stated by the Wall Street Journal. https://lnkd.in/gqujnHrT