Boost Your INCOME by Using Your Voice 💵 E73

Speaker 1 Imagine you ask for a raise and you get a three percent raise, and you ask for it in year one,

Speaker 1 and that happens every year for the next 10 years. You've now changed your salary from 60,000 to 61,800 to 64,000-ish to 70,000, and you have this big jump.
Boom, boom, boom.

Speaker 1 If you don't do it the first year or two because you're shy and you don't ask for that three percent increase, you are now years behind of the compounding effect of that salary increase.

Speaker 1 A closed mouth doesn't get fed.

Speaker 1 Ladies and gentlemen, welcome to the Money Mondays podcast.

Speaker 1 This will be a short format episode where I'm going to talk about a very focused topic, which is money, cash flow, loans, inventory, PO financing, factoring. There's so many ways that money moves.

Speaker 1 And I want to talk about money. As you guys know here on the Money Mondays, we talk about three core topics, how to make money, how to invest money, how to give it away to charity.

Speaker 1 But there's no guests here today so I want to get into what is money why do you need money how do you utilize money how do you get more money how do you have access to money etc cash flow is important understanding your finances is critical the main reason that companies go bankrupt is they run out of money They run out of overhead.

Speaker 1 They didn't plan correctly. They didn't forecast and things happen.
And they're not prepared for it. So I want to talk to you about all those type of things in this short format episode.

Speaker 1 Typically, our episodes are 40 minutes or less here on the Monday Mondays because the average workout is 45 minutes. The average commute to work is 45 minutes.
So we typically have 40 minutes or less.

Speaker 1 This will be even shorter because I really would just want to dive into this core topic about money. How does it move?

Speaker 1 How do you get more money? How do you get access to it for your business? Okay.

Speaker 1 First of all,

Speaker 1 money has to be talked about with your staff, with your business partners, with your investors, even with your employees, your clients, your vendors.

Speaker 1 Every part of your business is revolving around money, so it's not rude to talk about it. If your vendor owes you money, you can ask them to pay you.

Speaker 1 If you owe vendors money, you should do your best to try to pay them. And if you can't, or you're going to be late, or you need payment plans, tell them.

Speaker 1 Communication is critical when it comes to money. Are you going to be late on payroll? Let your staff know.
Are you not going to be able to make payroll? Let your staff know.

Speaker 1 You want to get a bonus because you work at a company and you want to ask your boss for a bonus or a salary increase? Tell them. A closed mouth doesn't get fed.

Speaker 1 Imagine you ask for a raise and you get a 3% raise and you ask for it in year one. And that happens every year for the next 10 years.
You've now changed your salary from $60,000.

Speaker 1 to $61,800 to $64,000-ish to $70,000. And you have this big jump.
Boom, boom, boom.

Speaker 1 If you don't do it the first year or two because you're shy and you don't ask for that 3% increase, the math, you are now years behind of the compounding effect of that salary increase.

Speaker 1 Literally changes the whole scope of your life.

Speaker 1 And it may not be you. You might want to recommend this to your 17-year-old child that's about to get a job.

Speaker 1 You may want to recommend this to your neighbor or your roommate or someone that needs to get a salary increase or needs to go get a different job or needs to get paid the correct amount or vice versa They have employees and they don't don't know what to do when they ask them for a raise

Speaker 1 it's important to have discussions about money now within a company cash flow is king the famous line by Mark Cuban is sales cures all

Speaker 1 if you can have revenue coming in and you can have someone in your office or in your team and your in your staff or you making sales calls sending out sales emails sales text messages every single day that that will help cure things in your business.

Speaker 1 The cash flow will help you with vendors. The cash flow will help you pay your lawyers, accountants, everything in between.

Speaker 1 The cash flow, the money coming in, will help you cover the rent and the staff and the shipping and the travel and the convention booths, whatever the development costs, whatever the things are, the moving parts in your company,

Speaker 1 sales cures all.

Speaker 1 Go get more sales.

Speaker 1 I've seen it happen way too many times where people are just building their business and sales are kind of happening But it's kind of just like happening because of they exist and they're just kind of growing their business Imagine if you had someone in your company that every single day all they did was outbound reach out on LinkedIn social media email sales calls setting appointments, et cetera, every day and they just made 20 or 30 contacts per day and reached out.

Speaker 1 And that's 100 plus contacts a week. And that's 100 times a week they're reaching out for sales via DMs LinkedIn Instagram email whatever

Speaker 1 and that happens every single week times that by 52 weeks they've now reached out to 5,200

Speaker 1 potential buyers of your product and even if they don't buy it now they know about you and your product or your service or your app or whatever the thing is that you sell What would happen for your business if 5,200 people were phone called or texted or emailed or DM'd about your product?

Speaker 1 You'd You'd probably convert some of them, wouldn't you? And if you didn't, well, you should probably start selling something else.

Speaker 1 If you can't sell a pretty good chunk of 5,200 potential clients and you can't sell at least a couple hundred of them, you should be selling something else. Now,

Speaker 1 that just took one person that makes, let's call it, 30 grand, 40 grand, 50 grand, 60 grand a year, 70 grand, 80 grand, or you pay them a base salary plus commission or just nothing and just pay them a good commission.

Speaker 1 Imagine that they reached out to 5,200 people a year as as potential clients.

Speaker 1 They're probably going to sell a couple hundred people, and that's going to be a really good commission, and they can live off that and make good money from that, or maybe even have a thriving income because they're selling your stuff.

Speaker 1 And that cash flow for you is very important to help run your business. Now, businesses go through ups and downs.
Vendors take a long time to pay. Clients might need 30 days, 60 days, 90 days.

Speaker 1 Things happen within your business. Sales can go up and down.
There's sales cycles. There's different times of the year that you're crushing it.

Speaker 1 Other times that you're like, ah, no one's buying my stuff because it's too hot or it's too cold or they don't want to travel or it's raining, whatever.

Speaker 1 There are always situations that arise with businesses. And so because of that,

Speaker 1 you need to forecast as much as you can based on data and information about your business. If you know that during rainy season, well, those two or three months, it's hard for you.

Speaker 1 You need to save up extra money for that time because you know it's going to happen. Rainy season is coming again next year and the year after around the same time.

Speaker 1 If you know you don't do well when it's too cold outside or it's snowing or it's too hot outside because it's whatever,

Speaker 1 because of that, you need to be prepared financially for those months so that you are not caught with having the same overhead and not having capital saved up to cover your overhead.

Speaker 1 Now, what could you do when things get hard? Well, one thing is sell more stuff.

Speaker 1 Your product, your service, your app,

Speaker 1 whatever the thing is that you do or that you sell, sell more of it, especially when times get hard. When things are going good, you should also sell more of it.

Speaker 1 But when things get hard, you should have someone buckle down and bring in revenue. It will make your employees excited, investors excited, partners excited, staff, vendors, friends, press, everyone.

Speaker 1 If you're out there selling, selling, selling, it brings in more buzz, it brings in more money, brings in more clients, brings in more relationships.

Speaker 1 Go sell more of your product, brand, service, whatever.

Speaker 1 Other thing is, when you have tight situations, I offer elevatorfunding.com. You can go to elevatorfunding.com and we loan $5,000 to $250,000 within 24 hours of approval.
It's really fast.

Speaker 1 And we can even do lines of credit up to $500,000. So think about that.
You just go to elevatorfunding.com, put in everything about your company. Hey, I've been in business for 1.8 years.

Speaker 1 and we do $1.4 million in revenue and we need to borrow $150,000. Great.
They fill all those things out and boom within 24 hours they get approval and they get the wire.

Speaker 1 If it doesn't work out, there are other services, other platforms, other programs that people can do. I just created elevator funding.

Speaker 1 We've been loaning out millions of dollars per month through this strategy to help business owners like yourself when things get tough. Or just needing some extra cash or just needing some...

Speaker 1 You know, 50 grand, 100 grand, 10 grand, whatever that number is to have in the piggy bank for the upcoming season coming up or are they going to buy more inventory or hire more team or expand their office things like that and so we created elevatorfunding.com for that specific purpose now

Speaker 1 you can go to your bank talk to them you can bring in investors talk to them you can go get partners talk to them there are different options but cash is king you need to have more capital within your business and think about it ahead of time you want to be proactive not reactive meaning you don't want to wait till it's like, oh shoot, we can't make payroll, or oh shoot, we can't pay the rent.

Speaker 1 Oh, shoot, this bill, we can't pay it. You knew that bill was coming.
You knew the first of the month that rent was coming. You knew these things were happening.
You want to get ahead of it.

Speaker 1 You want to be thinking about it ahead of time. It's really important to think about capital for your business in advance.
Give yourself more time.

Speaker 1 Remove some of the stress and think about it in advance. Now, as you have your cash flow in business, maybe you work at one as I'm talking about this.

Speaker 1 You may not own the business but you work at one or your significant other your mom dad friend buddy might you might want to send them this podcast episode so they can be thinking about cash flow sales loans Factoring.

Speaker 1 You know what factoring is? All right

Speaker 1 Let's say you have a business like BLK water or rise coffee some of the brands you see me post about icon meals some of the companies that we've been investing three four five six million dollars into these companies.

Speaker 1 Let's walk through reality.

Speaker 1 Let's say they go get BLK water rise coffee is in whole foods or airwan and things are going really good and they want to go from 100 stores to 500 stores that sounds cool but that means that an order can go from like 500 grand to 2 million

Speaker 1 well if all of a sudden you get a two million dollar order you need like 600 000 to a million dollars to make that product and let's call it january 1st the order comes in hey we want to buy $2 million of rise coffee or $2 million of BLK water.

Speaker 1 That sounds cool that means you need six hundred thousand dollars to a million dollars to make that product on January 1st so you submit your orders with the manufacturers start to make the product by the way your shipping date isn't going to be till February 1st or March 1st one or two months later

Speaker 1 so let's call it March 1st which is typically it's gonna be about 60 days you now ship

Speaker 1 $2 million of retail worth of product of let's call it rise coffee or BLK water in this example

Speaker 1 March 1st at lands lands.

Speaker 1 That chain store, let's call it Whole Foods, now will pay you on net 30 or net 60 day terms, sometimes net 90. Typically net 30 to net 60.
What does that mean for you?

Speaker 1 You spent $600,000 to a million dollars manufacturing this, you know, rice coffee or BLK water in this example.

Speaker 1 March 1st, you ship it. You got to pay for shipping and trucking and all those things.

Speaker 1 The product gets there, you got to spend some money on marketing and merchandising and posters on the window and buying ads and to help sell through the product in that store.

Speaker 1 Let's call it Whole Foods in this example. They're not going to pay you some net 30 or net 60.
So let's call it April 1st or May 1st when they're going to pay you.

Speaker 1 Remember the order was on January 1st when you had to come up with that money? $600,000 to $1 million that you had to come up with to make this $2 million worth of retail amount of drinks.

Speaker 1 Well, holy smokes. It does really, really well.
Man, this rice coffee, it's a nitro-cold brew. This is turning, this is great, and it does really well.

Speaker 1 And Whole Foods coming back and saying, you know what? We want to order you for even more stores. Here's another $4 million order.

Speaker 1 That sounds cool, but did I mention they still haven't paid you on the $2 million order that you put up $600,000 to a million dollars for and paid for the manufacturing, the shipping, the trucking, the insurance, the liability, the marketing, and all those things.

Speaker 1 And you haven't got paid yet because they're on net 30 or net 60 terms. And you did so well that now they want $4 million.

Speaker 1 So now now you got to come up with another 1.5 to 2 million dollars to make that product because you're not going to turn them down where do you get this money from

Speaker 1 where does this money come from well factoring is one way to do it you can get a line of credit from your bank or from someone that offers lines of credit like elevatorfunding.com we offer lines of credit up to five hundred thousand dollars we'll do higher if we have to for something that's like you know a million dollars for someone like whole foods we would definitely loan a million dollars because you know whole foods is going to pay

Speaker 1 so

Speaker 1 The first order that you had to come up with the money from let's say you scrap that money together the 600,000 to a million bucks to make all that product but the second order that's a lot four million dollar order means you got to put up around 1.5 to 2 million bucks to make that more product having got paid the first time you can do what's called factoring factoring the paper is the way the kind of the slang for it is where you can go to someone and say hey I've got a $4 million order from Whole Foods.

Speaker 1 This is a big chain. It's a trusted, this is trusted paper.
It's safe.

Speaker 1 they will loan you the money the 1.5 to 2 million dollars and buy the note buy the paper that chain store will now pay in this the factor who put up the money for the manufacturing and then they will pay you the balance they will pay you the profits back to you after keeping their interest rate

Speaker 1 this can get expensive they could charge you two percent Doesn't sound like a lot, but it could be two percent a week, two percent a month, depending on the type of company.

Speaker 1 They can charge that because they know that they need, you know, you need them for that capital.

Speaker 1 But it's something to consider because you're not going to want to turn Whole Foods down and their paper, the invoice, the shipping, the purchase order is qualified. It is not a risk.

Speaker 1 Now, again, can Whole Foods not pay? Sure, of course they can. Something could happen.
An emergency can happen or a situation can happen. It's very unlikely with a household name like

Speaker 1 Walmart, Kroger's, Rouse, Vaughn's, Albertson's, Whole Foods, Erewhon, et cetera. These are household name grocery stores.
They're going to pay. Now,

Speaker 1 you do really well and now you sell through and rise coffee sells a bunch more bada bing bada boom 10 million dollar order comes in

Speaker 1 you need four million dollars to make that ten million dollars a product you got to go back to the same factory and be like hey can i borrow some more money and of course they're going to want to give it to you and of course you're going to need it and you're willing to pay the high interest rate because the greater good

Speaker 1 The whole point of these stories that I'm trying to walk you through, because this is real life. It happened with my energy drink.
My energy drink was in 55,000 retail stores.

Speaker 1 And I would have Costco's and Walmart's and Ralphs and Target and all these type of stores buying my energy drinks. And oh my gosh, the cash flow was a headache all the time.

Speaker 1 Albert Sins ordered like $2 million. Smith's grocery store ordered like $2 million.

Speaker 1 Sounds cool. Except we had to always be getting money left and right.

Speaker 1 That's why it was an advantage being a publicly traded company because you had stock and other things to work with and you had assets to work with.

Speaker 1 Every time you got an order for $2 million,

Speaker 1 well, we need to to come up with a million bucks to go make that and ship that product and be prepared for it.

Speaker 1 So I want you to be thinking about it, whether it's for you, significant other, friend, family, buddy from school that has a big company now. You can share the podcast with them about money.

Speaker 1 You can go to your bank and have a real discussion. Say, hey, we're going to do a million dollars this year.
Let's say you own a salon or you do...

Speaker 1 You're a makeup, you know, makeup and hairstylist or you're a fashion photographer.

Speaker 1 Whatever the thing is, you do truck repairs, whatever your business is

Speaker 1 talk with your bank in advance don't go to your bank when things are super super tough it's harder for them to loan you money when things are going good you can pay really low interest rates on your capital meaning

Speaker 1 you go to a bank and things are really tough they're gonna charge you a lot you go to a bank say hey we're doing a million dollars in sales Now we're going to do $3 million the next year and things are going good and you have no debt, they're going to offer you money at a really low interest rate because you are safe for them.

Speaker 1 And so you will have a huge advantage if you try to go borrow money when things are going good. Now, do you have to borrow money when things are going bad? Of course, the cash flow helps.

Speaker 1 If you believe that it will help you succeed more,

Speaker 1 you're going to want to go out there and borrow that type of capital or bring in investors, partners, etc. The point of this episode is for you to be thinking about money.

Speaker 1 Again, whether it's for you or someone that you know, be considering all options, banks, loans, investors,

Speaker 1 sales, sales, sales, sales, sales, sales, sales, sales, like, ah, get as many sales as you can, get as many people selling as you can, because sales cures all.

Speaker 1 The point of this, I want you to think about,

Speaker 1 is how can I prepare myself to not go broke?

Speaker 1 How can I prepare my business, or again, whether it's your friend, someone else that has a business, or you work for a company, how can you have a blunt discussion about the finances so that they don't be reactive, but they are proactive.

Speaker 1 The point of this is, is for you to talk about money with your staff, with your employees, with your investors, with your friends, family, coworkers, etc. Have blunt discussions about money.

Speaker 1 There's nothing rude about making sure the payroll is made. There's nothing rude about talking about money when you got this big order and this big chain store wants to buy your products.

Speaker 1 There's nothing rude with talking with your investors and say, hey, I know you invested $100,000, but man, this company has been scaling a lot.

Speaker 1 Maybe you could help us get more investment capital because we are crushing it and here's why. Or hey, we're going through a tough time.
We need to have some extra capital.

Speaker 1 Do you know someone that might throw in some extra capital to help us through the tough time? When things are good, go try to get money.

Speaker 1 Loans, investments, et cetera, if you need it or if it'll help you scale.

Speaker 1 When things are going bad, you should be thinking about money because if it can fix it, but keep in mind, you don't want to not pay that debt.

Speaker 1 So make sure that you're taking on good capital, good money, not just taking on debt, just to take on debt.

Speaker 1 Think about for your business or for someone in your world what can you do to prevent going bankrupt when things are good think about getting money when things are tough think about getting money when things are just kind of getting by think about getting money but in between all those things of loans investors partners things like that get more sales because sales cures all appreciate you guys go visit the moneymondays.com i go live every monday at four o'clock on the moneymondays.com four o'clock pst and I teach people a lot of things that we talk about.

Speaker 1 And then we do a live QA session. It's really fun in there.
You can network with other people that are part of the moneymondays.com.

Speaker 1 And it's really important for you guys to have these discussions about money with your friends, family, and followers.

Speaker 1 Share, comment, subscribe, like, keep us up there in the top of the rankings in the podcast world. It helps us spread this discussion so that we can make this world a better place.

Speaker 1 I appreciate you guys, and I'll see you guys next Monday.