Wednesday, February 13, 2008

Virtual Office: Understanding Procrastination or Poor Cash Flow

Virtual Office: Understanding Procrastination or Poor Cash Flow!
 
One of the biggest business problems that exist in business today whether it be on-line or off-line, is business owners who are inexperienced in running a business. Now you probably are saying "If they are running a business then they must know what they are doing?" Not True!
 
Many businesses are run by people who have gotten into the business under the following several methods.
  • One they inherited it from a family member and are running it like the family member ran it years ago.
  • Two they started it small and spent money to grow it. The money coming from personal assets, not business cash flow. In other words they are spending money that is either equity in their house, savings, or other money that is non company generated revenue.
  • They just simply are gutting it through on sheer brute strength to burn out later.
These business owners are enamored with the idea of running a business and talk about it like they are Bill Gates, or Donald Trump, but in fact they are totally unclear how to perform the task efficiently. What runs the business is their personal "ego" and because of it they don't listen to constructive criticism and end up pumping their "life's savings" into the business.
 
Where does the money go? When they pump their life savings into their business it is over time which doesn't seem to be a whole lot since it is added to the little cash flow the business generates. These business actually generate cash flow but the expenses are always higher than the cash flow. "Parkinson's Law" your expenses will always equal of exceed your income. They are always behind the "eight ball" and to get out they put their money into the business. This cash infusion is done gradually so as to not be terribly noticeable to the business owner. All of a sudden the business owner wakes up and says where did all my money go?
 
Every one else got it, dumb ass!
  • Your vendors got it.
  • Your employees got it.
  • Your accountant got it.
  • Your Lawyer got it.
Get the picture! Everyone got it except you! I have seen highly intelligent people do this and end up with nothing. The public thinks the business owner is wealthy because they only see the outside of the business. The employees think the business owner is wealthy because even though the see low sales they don't quite understand the whole cash flow picture, and as long as they get their paychecks then they are happy. The same thing goes to your accountant, who you would think would tell the business owner of the problem but they are only accounting for the cash coming in the door, and how to deduct the cash infusion that the business owner is making out of his or her pocket. The may say get sales up and get the remark back " I am running my business you just do the accounting". The accountant is collecting their fees so they keep quiet. [Does anyone remember Enron! This is what happened on a massive scale and an accounting firm folded because of it.] See most of the problem businesses are small and don't have staff that will take the owner to task. If they do the owner's "EGO" is so big that they bully the people and get their way.
 
So when anyone is asked to do business with these types of businesses, these business owners leave people with a bad taste in their mouth. What happens is the business owner try's to go cheap and get everything for nothing because they have such horrible cash flow. So doing business with these types of people causes poor cash flow for the other business because of the slow pay of the problem of the bad business owner. Take a business owner who runs an efficient business, and they end up doing business with the slow pay, [Vendors don't always know about the cash flow of these business so they end up doing business with them until they discover that they don't pay or are a slow pay then they discontinue their business connections with the poorly run business. The incompetent business is then off to the next vendor to cheat.] This vicious cycle is pervasive in business and puts lots of lawyers to work which makes the situation worse.
 
These businesses are common and employee many people who when they fold, lose their jobs or leave and go to another one of these shaky operations. I have to tell you I see them all the time. This is why we have established "A Virtual Office" and the "Partner Development Program". We can take these people and restructure their business to make it into a profitable, cash machine. The problem is that the "EGO" of the business owner has to be removed otherwise the old habits will continue to occur.
 
We have found that most of these problems are out of incompetence, and not procrastination But when you couple the two together you have a recipe for disaster. We usually get our clients from "foxhole conversions" [During World War II the soldiers would dig what was commonly called a foxhole so sit in. When bullets were flying all around the G.I.'s even atheist were praying to God, thus the term foxhole conversions.] When times are the toughest we end up getting clients, and then are expected to perform miracles. That is why it is refreshing to get someone as a blank slate and mold them. But many times we have to live with the disasters. This is why we do what we do! We have to work with the problem cases.
 
If you have a business that fits into this article we can help you, or if you want to start a business and need a mentor that will give you results call us. I would like to invite you to a free seminar called Virtual Office: International Seminar where you will be sitting at your computer with people from all over the world learning how about business and how to run them. We will also teach you how to set up A Virtual Office and market internationally. This is a power packed information session so you don't want to miss it. It was the creation of Mr. Butch Hamilton, Global SEO Master and Me [Dr. Raymond Jewell, Economic Advisor] to answer the call for good truthful information to actually help people and not just take their money. Spaces are going fast so go to http://AVirtualOffice.com  and sign up. Also if you would like to take a look at a system to attract people to your business go to http://coop.virtual100.com and check out the system to bring in constant customers or leads for your business.    
 
Thanks for reading,
 
 
 
 
 
 
 
 
 
 
 
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