Cash Flow Tips for Companies

Improve cash flow using a Professional Employer Organization

dsimkovich@gmail.com (Don Simkovich) — Tue, 20 Oct 2009 01:09:00 +0000

Companies can improve cash flow by using specialists for tasks like human resources outsourcing which is one of the tasks of a Professional Employer Organization (PEO).

There are several strategic reasons to use a PEO:

PEOs know HR laws and the latest employee-related regulations
PEOs can steamline a HR workload for the busy owner or manager who wears many different hats in a small company
PEOs can reduce employment costs and lower insurance premiums
PEOs can offer solutions on Worker’s Compensation
PEOs can offer input on one specialty area such as retirement plans or health plans

If you’re considering the type of PEO to use, check their credentials with industry trade associations such as NAPEO, the National Association of Professional Employer Organizations, the largest nationwide trade association for professional employer organizations. The organization has about 400 PEO members in all 50 states.

If interviewing potential PEOs, ask them what clients they've had, how they operate and how much money they have saved companies.

Using a PEO can free up the tasks facing a busy owner or manager of a company even a company that has as few as 15 employees.

Most PEOs will usually give a no-cost assessment on how they'll move forward and how they'll improve efficiency. One PEO rep told me, "guess how much it would cost a company to fight a lawsuit they could have otherwise avoided" or reduced insurance expenses.

Solar energy industry associations

dsimkovich@gmail.com (Don Simkovich) — Tue, 29 Sep 2009 15:57:00 +0000

Solar energy industry associations are valuable when researching the benefits of solar energy for commercial or residential purposes. They can also help individuals interested in investing in solar energy learn about the industry from an objective perspective.

Here are a few:

Solar Energy Industries Association http://www.seia.org
SEIA was started in 1974 and provides research on expanding the use of solar technologies and provides education about solar power and the overall industry.

Visit the web site to learn about federal and state issues and upcoming important conferences.

California Solar Energy Industries http://calseia.org/
California Solar Energy Industries Association supports the widespread adoption of solar thermal and photovoltaic systems by educating consumers, supporting solar legislation and conducting business in a professional and ethical manner.

Calseia provides complete information on tax credits and complete information on home and commercial use for solar energy.

Mid-Atlantic Solar Energy Industries Association http://www.mseia.net/
This organization represents New Jersey, Pennsylvania, and Delaware. Established in 1997 by solar energy advocates, it is an historic and highly-effective membership organization that consists of solar developers, contractors, manufacturers, architects, engineers, consultants and other industry professionals.

Cash flow tip: solar energy as an investment

dsimkovich@gmail.com (Don Simkovich) — Mon, 28 Sep 2009 21:17:00 +0000

Turning to solar energy as an investment may be a personal cash flow tip worth pursuing.

Pursol Solar out of San Diego is one of the many private companies supplying residential and commercial solar applications.

Investors looking for returns outside the traditional stock market and mutual fund offerings may find investment opportunities in solar energy. The solar industry is growing about 40% per year while government incentives and mandates are strengthening the market for companies focused on supplying alternative energy.

In California, Governor Schwarzenegger recently signed an executive order that requires state utilities to get a third of their power from renewable sources by 2020.

Homeowners and commercial building owners may find that the cost of energy they’re currently paying is already higher than what they would be paying with solar.

There’s also a tax incentive for people looking to place their money in solar energy growth. This may appeal to accredited investors who want to explore profitable companies in the alternative energy industry.

To keep up with its rapid growth, the four year old company is starting construction on both a new manufacturing plant and a power plant in Q1 2010.

“Investors get to write off 30% of the investment from their federal tax bill in the year they invest,” said Steve Simkovich in investor-relations for Pursol.

Pursol is registered to go public in within 24 months, he said, and the company has had over $ 13 million in residential sales so far this year.

There’s also contracts pending with two casinos totaling $ 18 million as well as with a national hotel chain. The hotels and casinos will be able to write off the cost of converting to solar over a 5-year period and then their energy costs are free.

For more information related to investing in solar energy, contact Steve Simkovich at 818-919-3632 or email steve.pursolsolar@gmail.com.

Cash flow tip: hire HR experts to save money and time

dsimkovich@gmail.com (Don Simkovich) — Fri, 25 Sep 2009 16:40:00 +0000

A cash flow tip I've discovered is spend the money to hire HR experts in order to save money and time.

From Professional Employment companies to HR consultants and placement companies, spending the money can help an executive avoid hours sifting through resumes trying to determine the best fits for a company.

Claudia Shah of EE Connections, LLC in Glendale, California says those who use her agency and agencies like hers will save time and money.

“When a company used to advertise for a position they could get 5 – 10 resumes. But with unemployment in Los Angeles County reaching 12% companies who advertise for positions will now get 500 resumes,” she said.

“With that volume, how do you know how to screen the good candidates?”

She described how a person who was vice president of operations in a company eliminated the HR department. The VP thought she could handle the HR load.

Ms. Shah says what looks like a cost-savings may end up costing the company more money and take a qualified person away from what she does best.

“Why should an executive of a company spend 8 hours a day for 1 to 3 days when an outsourced staffing firm or other human resource firm can step in and handle the job in a more cost-effective manner?”

Consider outsourcing HR or hiring functions as a strategic cost of doing business. Outsourcing HR or hiring could save money in the long-term.

Health care issues for small business

dsimkovich@gmail.com (Don Simkovich) — Thu, 10 Sep 2009 04:53:00 +0000

Health care issues for small business are articulated clearly by the National Federation of Independent Businesses (NFIB).

They refer to the three C's of health care: cost, choice and competition.

When the NFIB refers to competition, I think of a comment by a health practitioner and executive who told me "the government shouldn't be in health care and large insurance companies shouldn't be in health care. The hospitals, physicians, and related services should be the ones in health care."

Cost: We must bring down the cost of insurance for small business and their employees. Currently, they pay 18% more for healthcare than big businesses. Creating an equal playing field starts with improving the small group insurance markets.

Choice: Small business owners and employees need more choices when shopping for insurance plans. Healthcare reform needs to expand the number of providers and affordable plans available to small businesses and their employees.

Competition: Lack of competition makes it easy for insurers and providers to raise their prices. In many states, small business owners have only one or two choices of insurance providers. A recent study shows that in most states, the five largest insurers control 90 percent of the market. We need more competition in the marketplace and access to larger purchasing pools to help lower the costs of insurance for small businesses.

For a related article on the NFIB visit Health mandates will hurt small business

Visit the NFB site at www.nfib.com

Business Funding 101: 10 resources to find money in Los Angeles

dsimkovich@gmail.com (Don Simkovich) — Fri, 04 Sep 2009 15:21:00 +0000

Business Funding 101: 10 resources to find money in Los Angeles

Posted using ShareThis

Jobs in Los Angeles and Southern California

dsimkovich@gmail.com (Don Simkovich) — Mon, 24 Aug 2009 15:13:00 +0000

Job creation and potential job loss news in Los Angeles and Southern California.

Reviving the economy through jobs is the message from chambers of commerce throughout the State and the California Chamber of Commerce.

Los Angeles Chamber president Gary Toebben wrote this in a blog several weeks ago about jobs and the economy in Los Angeles.

"The L.A. Area Chamber and other business groups have long argued that L.A.'s business climate, unlike our weather, is not conducive to business growth and job creation. As one local executive wrote in the Wall Street Journal this weekend, Los Angeles "is fast becoming a job-killing machine." It should pain every elected official and resident of Los Angeles to read these words. Unfortunately, the proof is in the pudding. L.A.'s business tax is among the highest in the state. The city's permitting process is lengthy and cumbersome. Business regulations are frequently changed, making it difficult for businesses to plan for the future. "

He stated five rules for job creation in Southern California:

Do No Harm
Customer Service
Don't Change Rules in the Middle of the Game
Leverage Private Sector Expertise
Keep Sights on Emerging Industries

Click here to read the complete blog post and how he elaborates on the five points above to keep businesses healthy and growing.

Here is another news item about SB 696 that focuses on Southern California Air Quality Management District blocking emissions permits for businesses:

Will blocked emissions credits in Los Angeles cause job loss?

A state senate committee votes on Wednesday. SB 696 has passed one committee.

Webinar: Outsourcing to Ease Economic Woes

dsimkovich@gmail.com (Don Simkovich) — Wed, 19 Aug 2009 19:06:00 +0000

Webinar: How HR Outsourcing Can Ease Your Economic Woes.

Please join us for our August Webinar as Ari Rosenstein, Director of Marketing at CPEhr, reviews the challenges facing employers today, and how HR Outsourcing can help.

In a weak economy, employers must learn to cut-costs, decrease overhead, and reduce unnecessary expenses. But limited time and financial resources makes that an impossible task. However, thousands of employers are turning to outsourcing alternatives to assist them in these efforts. Businesses are not only surviving in today's economy, they are thriving, with Human Resources Outsourcing.

In this 60 minute webinar you will learn:

What are the primary employment concerns in today's economy
How a weak economy can affect turnover and employment risks
Why a weak economy increases employment costs
The definition of HR Outsourcing and PEOs (Professional Employer Organizations)
How HR Outsourcing can reduce employment risks and employee turnover
Secrets to improving employee morale and productivity

The Webinar is hosted by CPEhr serving companies throughout the greater Los Angeles area.

To register, go to http://www.cpehr.com/webinar-registration.html

CPEhr works with companies of 10 employees to hundreds of employees on assisting with issues related to employment law, benefits, workers comp issues and more.

Cash flow begins with people

dsimkovich@gmail.com (Don Simkovich) — Tue, 18 Aug 2009 15:59:00 +0000

Cash flow in a company begins with employees, owners, managers and stockholders.

A company that has people who feel included will be more productive and, in our legal climate, will become less litigious.

I'm going to write a series of articles on diversity in the workplace after speaking with Dr. Sangeeta Gupta who helps companies "achieve cultural competency."

She told me that diversity means more than racial and cultural acceptance. It includes gender and generational acceptance, too. Think of mid-career workers who change jobs and start over at the lower half of the corporate ladder. They may have to report to someone 10 or 15 years younger (or even younger).

Sangeeta also mentioned that young professionals coming out of college and entering the work force need to learn why appropriate dress is important.

In her work, she equates handling a diverse workforce will lead to greater profitability.

I'll be quoting important lessons learned from Dr. Gupta and how she assists companies in manging a diverse workforce to achieve inclusion and continue on a healthy pattern of cash flow which benefits all involved.

Reduce Bills to Increase Cash Flow

dsimkovich@gmail.com (Don Simkovich) — Wed, 12 Aug 2009 15:20:00 +0000

Reduce bills to increase cash flow came to me as I spoke with a business consultant who told me she saved a company $ 12,000 a year by reviewing the credit card processing fees at their bank and negotiating lower fees.

Reducing the fees associated with the cost of doing business is possible.

Eva Marie Beisner, of On the Books in the Black, told me that was one of many case studies where she has identified ways to help businesses save money. Eva works with businesses in the Riverside-San Bernardino area of Southern California -- the Inland Empire.

She'll review processes and set benchmarks for performance as well.

In the day-to-day running of operations, it never seems convenient to take time to pay bills or let alone study the statements to find what might seem like small savings.

Hiring a company to come in and review areas of possible savings may make sense.

Some service companies will do so on a performance-only basis. It's a win-win for both parties involved.

In Eva Marie's case, she'll meet with a company a few different times at no charge prior to performing any service or charging a fee in order to understand their greatest need. In her assessment, if she can't provide the help they're looking for then she'll "make a friend" and not charge for her initial consultations.

Her projects will include spending time getting the financial statements in order or hiring and training the staff necessary to properly do the bookkeeping or accounting.

A cash flow tip for a company who suspects their fees may be too high is looking on the calendar when the utility bills or other statements arrive and then taking a few hours to review the statements.

Finding a way to save even $ 200 or $ 300 a month could equal the cost of a small project brought in the door.

For companies wanting to learn more about their internal needs, call Eva Marie Beisner at 909-282-0925 or visit www.onthebooksintheblack.com.

Cash Flow Tip: Filing for a Productive Office

dsimkovich@gmail.com (Don Simkovich) — Mon, 03 Aug 2009 14:47:00 +0000

Filing and organizing an office reduces time and factors in to the time=money equation.

Filing requires self-discipline, a vision for categorizing information specific items, and the courage to throw away pieces of paper or magazines that aren't going to be read anymore or haven't been read in months.

Here are some tips:

#1 The files accessed most frequently should be the ones closest to the desktop and given priority on being kept up to date.

#2 Toss out excess information. Make it easier by reminding yourself that most magazine articles or newsletter articles you might want to keep are found online or in the library. A really good article that sits buried under piles of paper may be well written and contain useful information, but how much good is it doing you?

#3 Set aside one hour per week to read outside of normal work assignments. Skim through articles and either file them right away or toss them.

#4 Ask for help - this may be difficult to ask a colleague. For the home office, the cost of hiring some one to come in help may be an expense that pays off in the long run.

#5 Archive old files and projects. Put them in a box, label them and take them out of an active file drawer.

While there may be many other tips for a productive office, these five are basic and easy to follow on a regular basis.

dsimkovich@gmail.com (Don Simkovich) — Sun, 26 Jul 2009 16:16:00 +0000

Business news on federal spending in 2008 from the California Real Estate Journal:

Federal domestic spending increased 9.3 percent to $2.79 trillion in fiscal year 2008, plus $1.62 trillion in direct loans, guaranteed loans and insurance, excluding monetary obligations resulting from the Recovery Act.

Insurance comprised 78 percent of federal assistance.

Guaranteed or insured loans accounted for $314 billion, led by home mortgage insurance, which made up $172 billion.

Nearly 21 percent, or $575 billion, went to federal grants, particularly for health and human services, transportation, and education.

Direct payments for housing assistance reached $11 billion across the U.S. and $934 million in California.

California expenditures neared $300 billion after a $260 billion commitment in FY 2007.

The government backed more than $26.5 billion of loans in the state. More than $12.1 billion of that total was for mortgage insurance for homes, while more than $1 billion was for mortgage insurance for condominiums.

Los Angeles Companies and Stimulus Funding

dsimkovich@gmail.com (Don Simkovich) — Fri, 17 Jul 2009 14:54:00 +0000

Companies in Los Angeles wanting a share of federal stimulus money will need to work through the State, some county entities and Los Angeles City Hall. At the end of this post are resource links.

The Los Angeles Chamber of Commerce sponsored a business luncheon on July 15 featuring Larry Kosmont, CEO of Kosmont Companies, and Diego Alvarez, Deputy Mayor of Los Angeles who explained how the stimulus money will filter into the greater Los Angeles area.

The funds are actually ARRA funds -- The American Recovery and Reinvestment Act.

The overall spending plan will address needs of federal agencies including the Veteran's Administration and Public Housing Capital Fund. In Los Angeles, Alvarez said the large VA Hospital on the city's west side will receive funding for projects while the capital fund will be used to repair, rehab, and improve public housing in Los Angeles.

LA will touch at least 17 of the 119 different accounts funded in the stimulus bill.

In Los Angeles, there is currently $ 289 million dollars allocated for the local area.

That includes $ 118 million for transportation projects including street resurfacing and left-hand turn signals.

The Public Capital Housing Fund has $ 25.5 million for public housing rehabilitation.

Web resources for the stimulus money are:
www.LACity.org/recovery
www.Recovery.gov

Additional posts over the next few days will point to additional uses of the ARRA funds and views of the Los Angeles Chamber of Commerce on the local business climate.

Cash Flow Tips: Employee 401K Alternatives

dsimkovich@gmail.com (Don Simkovich) — Thu, 16 Jul 2009 01:03:00 +0000

Companies watching employee 401K savings dwindle do have alternatives for retirement plans.

This post examines investing via insurance vehicles. I recently spoke with investment advisor Idelle Steinberg serving South Pasadena and the greater Los Angeles area and why she offers insurance-based products as alternatives to the 401K.

Cash Flow Tips: Describe the type of retirement investing you’re promoting and the vehicle that makes it possible.

Idelle: About five years ago the federal government changed regulations for financial institutions (banks, brokerage firms, insurance companies) creating a level playing field. The Insurance companies are now able to do what the brokerage firms were doing but with more financial safely, and they are vying for the business.

Properly set up, a retirement plan through an insurance policy contract will produce income that is totally tax free and IRS approved. The fees are level and will not go up regardless of how high the balance accumulates on the account.

And since the principal is never directly invested into the stock market, there are no losses to principal, guaranteed. But you have the opportunity to earn market like gains.

In sum, there are:

Low Fees

Zero Stock Loss

No Taxes

Cash Flow Tips: I believe most people think of insurance companies as offering low yield annuities that aren’t suitable for investors seeking growth. How is your investment program different?

Idelle: Annuities are a different subject, but a good one. People are leaving the stock market in droves as they realize that money efficiency and safety is at least 3x more effective than chasing higher returns.

So many people are turning to annuities for building retirement that inventory has diminished and some insurance companies have temporarily closed their doors to new business.

As far as yields, annuities can presently offer guaranteed 8% fixed, something you would only dream about in today's stock market. There are many different types of annuities available, making it possible to find something for almost everyone.

Annuities offer safety and protection against stock market loss, no fees, and when done as ROTH, they can also be tax free.

Cash Flow Tips: What are minimum investment amounts?

Idelle: We have two different subjects going here. One is building retirement through an insurance account which can yield income tax free, level fees and no loss to principal through market volatility. The amount invested can depend on several factors, but usually on how much someone wants to invest.

Minimum investments in annuities can start as low as $1000.

Cash Flow Tips: Is this something companies can use to offer their employees as part of a benefits package?

Idelle: These are great as part of a benefits package because the employee is in control, there are no adminstrative costs as fiduciary fees, and it can be taken intact with the employee if they ever leave the company.

Readers may call Idelle Steinberg (Ca Lic. #0E18530) for additional information: 626-441-7332.

This is not a sponsored post nor an endorsement of services. However, cash flow -- whether for companies or individual employees -- deserves research into the best vehicles and strategies for preserving or building capital.

Will TARP Money Provide Cash Flow for Small Business?

dsimkovich@gmail.com (Don Simkovich) — Mon, 13 Jul 2009 05:16:00 +0000

Loans to small businesses are now the focus in Congress. This post is courtesy of Commercial Debt Solutions operating in Southern California.

“In response to growing criticism from the Republican Party members and increasing dissatisfaction of the U.S. citizens with the administration’s handling of the country’s economic crisis, on Monday, July 13^th, the House and Senate will start debating a proposition to use up to one hundred billion of the TARP dollars as guaranteed, minimal-interest loans for small businesses.

"As being proposed, the U.S. Government will guarantee 100% of these loans to the lenders for up to ten years; loans are to be made available to businesses that have less than 250 employees total, or less than 100 full-time employees; and funds are to be distributed through a special program through the Small Business Administration. If approved, funds might become available as early as this fall.

"As a strategic partner with SCORE and a resource partner with U.S. SBA, Commercial Debt Solutions will remain current on all developments related to this proposal and will be equipped to assist its qualifying clients in securing these loans, should they become available.”

For more information, contact Commercial Debt Solutions directly at 1-877-684-3631.

Commercial Debt Solutions, headquartered in Beverly Hills, is a performance-based firm working to assist companies in Southern California with their financial needs.

Reasons to Form a Business Entity

dsimkovich@gmail.com (Don Simkovich) — Sat, 11 Jul 2009 01:17:00 +0000

This Cash Flow Tip is for sole proprietors considering reasons to form a business entity.

The information comes from VCorp Services and shows how forming the correct business entity can impact the cash flow and tax structure of an individual starting a business -- from brick and mortar stores to individual consultants.

VCorp is a leader in turnkey state corporate filing services and a member of BDO Seidman Alliance, a nationwide association of independently owned local and regional accounting, consulting, and service firms with similar client service goals.

Reduces Personal Liability

Incorporating helps separate your personal identity from that of your business. Sole proprietors and partners are subject to unlimited personal liability for business debt or law suits against their company. Creditors of the sole proprietorship or partnership can bring suit against the owners of the business and can move to seize the owners' homes, cars, savings or other personal assets. Once incorporated, the shareholders of a corporation have only the money they put into the company to lose, and usually no more.

Adds Credibility

A corporate structure communicates permanence, credibility and stature. Even if you are the only stockholder or employee, your incorporated business may be perceived as a much larger and more credible company. Seeing "Inc." or "Corp." at the end of your business name can send a powerful message to your customers, suppliers, and other business associates about your commitment to the ongoing success of your venture.

Tax Advantages - Deductible Employee Benefits

Incorporating usually provides tax-deductible benefits for you and your employees. Even if you are the only shareholder and employee of your business, benefits such as health insurance, life insurance, travel and entertainment expenses may now be deductible. Best of all, corporations usually provide an increased tax shelter for qualified pensions plans or retirement plans (e.g. 401K's).

Easier Access to Capital Funding

Capital can be more easily raised with a corporation through the sale of stock. With sole proprietorships and partnerships, investors are much harder to attract because of the personal liability. Investors are more likely to purchase shares in a corporation where there usually is a separation between personal and business assets. Also, some banks prefer to lend money to corporations.

Contact www.vcorpservices.com or call 1-888-52-VCORP.

Cash Flow: Price and Value Lesson

dsimkovich@gmail.com (Don Simkovich) — Tue, 07 Jul 2009 23:49:00 +0000

Making decisions with cash flow includes deciding whether to buy on price or value. Often, customers (clients) try to combine both.

Here's a price and value lesson I learned today when stopping for a quick afternoon lunch on the way home.

I saw a Quizno's restaurant and stopped in for a quick sandwich to take with me. I paused because I knew Subway has $ 5 footlong sandwiches. I ever stopped at a Subway because I felt their sandwiches were overpriced. I still rarely stop at one but once in a while when driving on the road I feel they're a good option.

But I didn't want to drive around looking for one. So I walked in to the Quizno's and saw they had 3 sizes with the middle size being a regular for just over $5.

I selected that one based both on price and value. The picture looked like a footlong sub. It looked a bit smaller when the person behind the counter sent it through the oven. And when I paid for it (with tax it was over $6) and then opened it up, it certainly looked less than a foot long.

The price increased and the value decreased in my opinion.

While the sandwich tasted fine, I was disappointed in the value I received for the price I paid. I told myself I could have bought a Chinese meal, a filling Mexican burrito, or a few hamburgers from Wendy's with a side salad for the same price.

How is your price and value proposition? Do customers (clients) appreciate what you offer for the price they pay and the value they receive?

Evaluating Cash Flow and Profitability

dsimkovich@gmail.com (Don Simkovich) — Tue, 07 Jul 2009 02:58:00 +0000

Take time to evaluate your cash flow by looking at business profitability for the remainder of the month.

Here are four main categories to evaluate your cash flow and corporate fiscal responsibility.

Admin
Are corporate goals in alignment with available resources?
For larger companies, do department heads know what is expected of them, their teams and what obstacles are they encountering?

How were finances in the previous quarter?

If you've made financial commitments or investments, do you know when a profit will be realized?

Are your taxes and payroll needs in order?

Tax alert for the month: Third quarter estimated taxes are due September 15.

Production
Are there any expected delays in production? Does the team work smoothly? What do you expect to achieve in production during the upcoming quarter July - September?

Is there a smooth workflow or if bottlenecks are discovered what can be done to alleviate them?

How is overall morale?

Marketing and Sales
Are marketing goals clear?

Is the right message being used in the proper media and sent to the right audience?

Is the marketing department excited about social media and really using it effectively?

Is the sales cycle lengthening or staying consistent?

Pause while its early in the month to review and tackle challenges that can derail profitability.

Cash Flow through Debt Collection

dsimkovich@gmail.com (Don Simkovich) — Fri, 03 Jul 2009 16:32:00 +0000

Generating cash flow through new business has its own challenges. But an important part of cash flow for any business operation is collecting debts owed.

However, for companies that are in debt they, too, can convert short-term debt into a manageable long term plan.

The Small Business Administration reports that approximately 40,000 businesses a month close their doors or file for bankruptcy. These companies didn’t have a solid and proven plan to get out of debt; all they had were hopes and dreams.

If more than 30% of your payables are over 90 days old, you are taking chances with the future of your company unless you have a realistic plan to satisfy your creditors. Without a practical and affordable plan your company can sink deeper into debt, and it may only be a matter of time before creditors seize your assets and put you out of business.

Debt restructuring is not limited to credit cards, loans, and secured and unsecured lines of credit, but can also include equipment and commercial leases, liens and judgments as well. During the past several weeks, I've learned about a performance-based company called Commercial Debt Solutions based in the Los Angeles area.

Commercial debt restructuring is not for everyone. However, a structured program could work if you want to pay your creditors but are unable to establish affordable settlement terms.

Commercial Debt Solutions offers a free consultation for companies in Southern California either by phone or in person. For more information call 1-877-684-3631.

Cash Flow Opportunity in India

dsimkovich@gmail.com (Don Simkovich) — Fri, 26 Jun 2009 23:48:00 +0000

Generating cash flow for companies includes expanding into areas of opportunity while negotiating the inherent risks.

India presents an opportunity for many U.S.-based companies large and small across a variety of industries including telecomm, alternative energy, aerospace, and the auto industries. During the next 15-20 years, projections state that up to 40% of families in India will move into a middle class lifestyle.

India is also a young country with 71% of the people younger than age 35.

Those figures were quoted by Julie Anne Hennessy, director, U.S. Commercial Service in Los Angeles County speaking at the India Trade Conference held today in Irwindale, California at the Southern California Edison (SCE) CTAC Conference Center.

The 2nd annual conference was sponsored by SCE, Quanta Consulting and the Port of Los Angeles.

Pictured are: Jim MacLellan, Director of Trade Services Port of Los Angeles; Daphe Ng Southern California Edison; R Sampath, Quanta Consulting; Gene Rodrigues, Southern California Edison.

The gathering gave a macro-view of reasons to enter the India market while offering an overview of tapping into relational networks to create successful business strategies.

Conference moderator R Sampath, Quanta Consulting, Inc., said companies should definitely look at the opportunity that's offered by the vast India market, improved infrastructure, and the rising level of education.

"But there are also risks," he said. "Part of the cost of doing business in India is its going to take time of the executives to map out a strategy and make the needed contacts to plug into the right networks."

The focus of the morning keynote addresses and afternoon break-out sessions was to help companies begin the process of discovering how to get started in doing business in India and how to generate revenue.

The costs and risks can be worthwhile. While China is the world's 2nd largest economy in terms of purchasing power, India is the world's 4th largest economy.

Commerce Minister Banashri Bose Harrison, Minister of Commerce, from the Indian Embassy in Washington, D.C. told attendees that India is a natural partner for U.S. companies.

“There is a degree of comfort level people in the U.S. feel when they go to India,” she said. “They feel at home and one of the reasons why is that English is so widely spoken and since both countries are democracies there is a shared value.”

She remarked that in developing innovative technology, India is a perfect place since testing is less expensive making the country a good R&D partner.

Information on doing business in India is available through the following sources:

Quanta Consulting, Inc.

“Crafting Your India Strategy”

The US Commercial Service, U.S. Department of Commerce

http://www.export.gov/india/

http://www.buyusa.gov/india/en/

The third annual conference is scheduled for June 2010 in Cerritos, CA.

Additional, upcoming posts from the June 26, 2009 conference on doing business in India to generate cash flow will focus on brand building, cultural differences and key challenges facing business ventures.

Stress in Running a Business

dsimkovich@gmail.com (Don Simkovich) — Fri, 26 Jun 2009 14:22:00 +0000

Running a business means facing challenges at each stage of the business life cycle.

But it also means for the person or people running the operation, to let go of controls and provide internal control throughout by helping key individuals self-manage to the greatest degree possible.

Read here for more . . . http://tinyurl.com/mfcx7e

Job Opening New York City - Business Development

dsimkovich@gmail.com (Don Simkovich) — Thu, 25 Jun 2009 21:16:00 +0000

Business development experience is sought for this position in New York City.

"We-Care.com is hiring an experienced Business Development Director to work out of our Midtown Manhattan office. We’re looking for someone with experience closing large organizations. (Experience selling to large nonprofits is a plus.)"

The posting came from Kevin Lee, author of "Truth about Pay Per Click Advertising."

And now a bit about Kevin as summarized on his LinkedIn profile:

My goal is to help organizations leverage search marketing, particularly paid search. My weekly column in ClickZ.com has helped thousands, as have my 300+ speaking engagements. My company Didit has demonstrated that we can maximize PPC profits. If you feel your campaign has plateaued, reach out.

Forward the post on the business development opening to the appropriate people.

There's also the chance to network for job opportunities via Pink Slip Parties in New York and Los Angeles.

If you have news of a job opening, or cash flow tips for companies, let me know and you can be featured.

Cash Flow in Recession

dsimkovich@gmail.com (Don Simkovich) — Fri, 19 Jun 2009 18:40:00 +0000

Cash flow in a recession poses challenges: how many employees can we manage? how do we make new sales? how is our credit line?

Here's another way to think about cash flow in a recession: what's new with your company?

James Ellis, dean of the Marshall School of Business at USC, urged companies to think about "what new things are coming out of your company" when he spoke to business owners, employees and consultants gathered for a Los Angeles Chamber of Commerce Power Hour on June 16.

Dean Ellis spoke about changing corporate thinking from survival mode to an optimistic view "to look at everything positively including change."

He said that innovation and creativity doesn't just have to focus on products but to say instead everything is fair game.

"We need to review all critical areas of our business," he said as he mentioned that creative ideas come from process. Ellis said it's possible to take a dumb idea and improve it through a process that involves input from everyone in a company.

He also stressed the need for constant communication.

"We have to be smart managers focused on the future and over-communicate. Communication of any type is critical to facilitate change and help build a positive environment."

The advice contains basic business fundamentals to succeed and generate the cash flow that companies need to make profits and keep a workforce employed.

"Focus on the core competencies and ask 'what are we good at doing?'" he advised.

Ellis mentioned people in Human Resources (HR) should especially be good listeners since they come into contact with executives, managers and hourly employees.

He also mentioned it's important to benchmark the successful practices of competitors and non-competitors. "Go outside the world you're competing in and find good companies to benchmark. What do they do well?"

Ellis said it's worth the time to benchmark even though many ideas and practices may get thrown out in order to adapt select practices.

He gave this summary of advice:

Focus on the core business
Protect it
Invest in it
Benchmark
Think about people

Looking for a Job in Los Angeles?

dsimkovich@gmail.com (Don Simkovich) — Fri, 12 Jun 2009 19:35:00 +0000

BCS Staffing decided to take action regarding unemployment in the Los Angeles area.

They host Pink Slip Parties which allow people who are unemployed to network with others and meet top recruiting firms in addition to Time Warner Cable and Colonial Life will showcase openings in a variety of industries and positions including:

accounting & finance
human resources
administrative
real estate
healthcare
entertainment
hospitality
legal

The next Pink Slip Party is Tuesday, June 16 from 6pm to 8pm at the Blue Velvet Lounge, 750 S. Garland Avenue, Los Angeles 90017.

RSVP at www.pinkslippartyla.com

The event is hosted by BCS Staffing.

There is a $5 cover charge, parking is $6 and there is a cheese pizza special for $5.

BCS Staffing president Beryl Smith said pink slip parties actually started in 1910 in New York when they met in taverns and provided a grass roots movement for the unemployed in that era.

BCS Staffing is a boutique firm built on trust and experience. BCS Staffing, Inc. was founded in 2006 by Beryl Smith, a staffing professional with sixteen years of experience matching the right candidate with the right position.

Business Cycles and Recessions

dsimkovich@gmail.com (Don Simkovich) — Tue, 02 Jun 2009 23:49:00 +0000

Business cycles and recessions go together just like business cycles and profitable times.
Whether you're starting a business, expanding a business or managing a business, here are some ways to make sense of the current business cycle and recession.

#1 You control your cash flow
Whether you like federal economic policies or dislike them, there's not much you can do to impact the day to day decisions made in Washington, D.C. Yes, you can vote, write letters to your congressional representative and write opinion pieces but don't think your success or failure is completely dependent on forces beyond your control.

Think about what you can do to increase your customer base, cut expenses, manage your cash flow effectively.

#2 Sweat the Small Stuff
The reality of recession is the businesses in the middle hurt worst. That statement is according to Dan Kennedy in his December 2008 newsletter. However, he writes that all businesses are impacted by the need to retain customers. The big chains may lose customers because of the small stuff such as the counters at Starbucks cluttered because of the clutter from impule purchase items. Small stuff matters a lot.

A company that sweats the small stufff and is managing their business cycle well in the recession is Chik Fil-Et even though they're closed on Sundays.
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#3 Educate yourself
Learn some key economic terms and a bit about history. Here's an excerpt from an online article about recessions and business cycles by Christina Romer.

Burns and Mitchell defined a recession as a period when a broad range of economic indicators falls for a sustained period, roughly at least half a year . . . .

expansions and recessions occur at irregular intervals and last for varying lengths of time. For example, there were three recessions between 1973 and 1982, but, then the 1982 trough was followed by eight years of uninterrupted expansion.

The 1980 recession lasted just six months, while the 1981 recession lasted sixteen months. For describing the swings in economic activity, therefore, many modern economists prefer the term “short-run economic fluctuations” to “business cycle.”

Finally, to navigate the current recession, make sure your skills are sharp, fix the snags in your business operation, and concentrate on offering value to customers and those who work with you. That's the best way to move through this business cycle and the current recession.