Rick Meekins is the Managing Partner at Aepiphanni, a Business Consultancy, an Atlanta, GA based small business consultancy that provides Management Consulting, Implementation and Managed Services to business leaders and entrepreneurs seeking to improve or expand operations.
Slow Cash Flow? Redefine the Box!
This went rather well, except he wasn’t in the equipment reselling business. His warehouse was full. As a matter of fact, he had THREE full warehouses! What’s that about??
So, his remedy was to sell the equipment at cost, donate it and do whatever he could to simply get rid of the equipment, thinking that he was reducing his costs. He bought a machine to resurface the machines. He hired someone to work on repairing the equipment. He hired someone to assess the equipment. He set up another company to sell it. He marketed it. I think he must have spent a ton of money…just trying to get rid of it! He still couldn’t get rid of it as fast as he was getting it in.
So…he was losing money on this equipment that had little demand for the market that he served. This caused some cash flow problems and suddenly things like employee benefits, monthly meetings, etc., were a thing of the past. Office supplies and hiring enough temporary helpers became part of strained conversation.
He needed, desperately, to do something differently.
His current box said that he has to sell his product at a competitive price, provide excellent products and services, take trade-ins and scrape off enough money to pay his expenses.
A friend of his mentioned that he should try barter – buying and selling goods on trade. (I think that sometimes we forget that money is actually the standard of trade.) This sounded pretty simple, but how do you trade a large piece of equipment for something that would be of equal value.
It turns out that there are barter organizations that specialize in this. Ideally, one can trade goods and services they have that they just can’t sell at the full value for “Barter Dollars,” which can be used to purchase other goods and services, like dinner at restaurants, sporting event tickets, office supplies, marketing and consulting services, air flights, etc.
Think about his cash flow with this in mind. With it, he was able to make some major purchases that he simply would not have had the cash to do, cleaned out his warehouse, and was able to allot cash to areas that the business needed to focus on in order to grow.
So…if your box is getting to small, redefine it. Check out barter on the web.
At Aepiphanni Business Solutions, we are dedicated to serving the needs of small business owners. We specialize in helping you develop strategies for your organization, and are committed to your success. If you have further questions about creating your strategy or developing your vision, please give me, Rick Meekins, a call at 678-265-3908, or email us at [email protected].]]>