I have always said the foundation of business can be thought of as a three legged stool. Most people understand business as selling a product or a service. They can visualize two legs of the stool. The first leg of manufacturing the product or learning the service and the second leg of marketing the product or the service to generate sales. The third and the most important leg for the longevity of the business is financing. Financing is the movement of money from sales to be re-invested in the business to pay for marketing which generates sales so money is available to manufacture products. That is why they say “Cash is KING”. Cash (which can be found through financing mechanisms) is like the oil needed in a car which makes it a well running machine. The well running machine of business is called a CASH cow. Merriam Webster, http://www.merriam-webster.com/dictionary/cash%20cow, defines a cash cow as “a consistently profitable business, property, or product whose profits are used to finance a company’s investments in other areas” Our goal is to help every business owner envision a cash cow and how financing mechanisms help make that happen.
Before a business can even discuss financing, the business has to understand it’s accounting numbers and the accounting system. Newman Networks has always been a big fan of Freshbooks for it’s ease of use, it’s outstanding attention to customer service (gold winner of STEVIE awards – http://www.freshbooks.com/blog/gold-customer-service/ ), integrating a quick, simple and easy to use feedback mechanism to gather reviews (which is GREAT marketing content) . Now it’s partnership with Fundbox (financing). Freshbooks was designed by an entrepreneur for entrepreneurs!
As per the press release, http://www.freshbooks.com/press/fundbox-press-release “Freelancers, entrepreneurs and small business owners are grossly under served,” said Mike McDerment, CEO and co-founder, FreshBooks. “These people represent tens of billions of dollars in the FreshBooks economy, yet it’s nearly impossible for them to access capital for their businesses through traditional means. Thanks to our partnership with Fundbox, our customers have a way to access the funds they need to operate their business with consistent cash flow.”
Fundbox offers business owners a simple way to fix their cash flow by advancing payments for their outstanding invoices. The press release goes on to say “FreshBooks users can easily [build] a Fundbox account and connect it using their FreshBooks account credentials. Once connected, the business owner can select an invoice using the “clear this invoice” button. This prompts the Fundbox system to assess and clear the invoice, depositing the funds into the business owner’s bank account within 24 hours.” One of our clients is Liquid Capital of Greater Philadelphia which offers the same service as Fundbox but the invoice amounts must be $100,000 or more. Fundbox can offer Accounts Receivable financing on invoices as small as $500.00 through seamless integration with Freshbooks.” There is no prepayment penalty and the payment amounts are spread over weeks for quick turnaround time. Read more at https://fundbox.com/pricing
This is a huge win, through the Freshbooks – Fundbox partnership, in the financing hurdle for small businesses. Most small businesses fail because of lack of financing. Friends and family can only go so far and small businesses are not able to find financing with traditional lenders who are looking for a steady track record.
For more information: Attend “If you have no accounting system, you have no business” on July 9th, 2015 from 6:30-8:30 pm RSVP @ http://freshbooks42015.eventbrite.com. This is the first class for women business owners who are apart of Calling All Female Entrepreneurs (http://www.phillycafe.org).All attendees from the accounting workshop will receive a FREE tickets to the 6th Annual Business Technology Expo on Sunday, September 27th, 2015 from 2-6pm. All upcoming events from Newman Networks are located at http://newmannetworks.eventbrite.com