Wealth Coach William R. Patterson - BaronSeries.com
William R. Patterson (9)    
William R. Patterson   
The Baron Series
Posted Sunday, May 25, 2008 (179 days 5 hours ago.) Viewed 10 times.
With volatile financial markets, tight credit, rising inflation, high fuel and commodity prices, small business owners and consumers are facing what many are calling a "historic financial crisis." However, this crisis presents the opportunity of a lifetime for prepared small business owners. The decisions you make now will determine the future success of your business.
To help you protect yourself and profit in today's difficult economy, here are eight powerful tips to recession-proof your small business.
1. Get help from experts.
New risks are converging that many business owners have never experienced. All of these critical factors emphasize the importance of leveraging a range of experts from business coaches to accountants to help you anticipate, mitigate and profit from these risks. Experts can help you identify and capitalize on actionable market information, best practices and business accelerators to maximize revenue and tax-saving opportunities. For many small business owners, these things will mean the difference between severe losses and six- or seven-figure profits.
2. Avoid Big Cost-Cutting Mistakes.
Many business owners have the wrong mindset when facing a recession. They ask themselves, "How can I cut costs?" But the real question should be, "How can I increase and sustain profitability?" The answer to that question might not lead to cutting costs, but increasing them. It is important to remain focused on intelligently increasing profitability and value, not trying to cut costs and "wait out" out a recession. However, if you truly need to cut costs, you may explore restructuring or consolidating debt to lower interest rate terms. Additionally, you may try consolidating non-business critical functions and services with the same vendor or outsourcing.
3. Build Your Cash Reserve.
During an economic downturn, it is vital to have a sufficient cash reserve to handle emergencies and to take advantage of new investment opportunities. Your cash requirements will depend on your industry, access to capital, variable and upcoming non-recurring expenses, potential acquisitions and earnings predictability. Look at your financial statements over the last 2-5 years. Observe the historical business cash flow pattern and factor in any new potential risks. If you do not have a sufficient cash reserve, this is another area where experts can help you.
4. Increase the Predictability of Your Income.
Focus on increasing predictable income streams to stabilize your business, reduce risk, plan effectively and position your company for greater access to capital. Consider adopting various strategies such as a membership, subscription or licensing model that requires customers to pay regularly for your products and services. By integrating or bundling your offerings as part of a subscription service, you can create greater value for customers while increasing your revenue. Additionally, this strategy of bundling-or being a "one-stop shop"-can provide a competitive advantage if you are selling commodity products and providing services that are undifferentiated in the marketplace.
5. Create New Products and Services that Cater to Your Most Profitable Customers.
In difficult times, generating additional revenue from existing customers may be a lower-cost alternative to acquiring new ones. A simple way to identify new revenue opportunities is to survey your most profitable customers. Seek ideas to help you create new products and improve your company's service, marketing and conversion rates.
6. Optimize Staffing and Overhead.
If you have employees or use independent contractors, make sure you have the right people engaged in the most profitable activities. Cross-train personnel if you think you may have to downsize. When reducing staff, it is important to preserve the company's knowledge base in core competency areas and to maintain consistency in the quality of products and services provided. Outsourcing non-essential business functions may be an option when those functions do not distinguish the company as a business (e.g. information technology and accounting). Consider independent contractors when you have short-term projects that need to be addressed.
7. Form Strategic Partnerships.
Strengthen vulnerable parts of your business by leveraging strategic partnership strategies. Product and service exchanges, joint-ventures, affiliate programs and co-branded and private label offerings can be great ways to control costs while increasing your revenue. Have a backup for key vendors if they fail to perform or go bankrupt. The right relationships can lower your costs, shorten development time and strengthen your offerings.
8. Look for Opportunities to Expand Your Business.
Many suppliers, competitors and complementary businesses become vulnerable in a recession. Deep discounts on products and services may be available by buying in bulk or extending vendor contracts. Also, watch for opportunities to grow your business through a merger or acquisition.
Remember, down markets present unprecedented opportunities for small business owners. If you leverage experts and the right team, it will be easier to grow your business and accelerate profitability while minimizing risk. Start now by using a business coach to capitalize on these eight tips and help you implement a winning strategy.
***
William R. Patterson is CEO of The Baron Solution Group. He is an internationally recognized business coach who has been a featured guest on over 300 television and radio programs. William is an award-winning speaker and best-selling co-author of The Baron Son. He is also winner of three 2008 Web awards including Best Wealth-Building Site. His renowned BARON Coaching Program integrates over 200 business and financial accelerators and 500 wealth-building resources to help entrepreneurs rapidly achieve their goals. For information, visit http://www.baronseries.com/coaching.htm.
Permalink
Posted Saturday, April 12, 2008 (222 days 3 hours ago.) Viewed 16 times.
No matter where you are starting from, you can begin to turn your life around or dramatically improve your financial situation using The Baron Solution™ 5-Step Action Plan for Building Wealth. It is important to learn disciplined strategies of sound money management, investing, and business administration. The more you learn about these areas, the more confident you will be in selecting advisors, making investments, and handling your business and financial affairs. You can easily move forward on your journey to financial success by taking these five simple actions:
Step One - Pay Down Your Debt. It is extremely difficult to build wealth when you are paying 20-30% interest on credit cards. You should begin consolidating your debts and negotiating with creditors to lower your interest rates when possible. For some, credit counseling, debt management plans, or debt negation plans may make sense, but be careful because there are some unscrupulous services out there.
Step Two - Begin Building a Cash Reserve. Calculate your monthly expenses and strive to stash away at least six-months worth of savings for emergencies and to take advantage of investment opportunities that present themselves. This calls for a lot discipline, but as the old African proverb says "Save your money, and one day it will save you."
Step Three - Develop a Long Term Investment Portfolio. By taking advantage of the power of compounding, you can earn hundreds of thousands of dollars, if not millions, by the time you retire. Keep in mind, you should never invest money that you cannot afford to lose, or invest in things you do not understand or feel totally comfortable with.
Step Four - Create a Cash Flow Portfolio. It is important to learn to generate income from your investments rather than your physical labor. This will enable you become financially free long before retirement. Rental real estate, business and insurance income streams, and royalties from intellectual property such books, music, inventions, etc., are great way to go. Mastering these areas may take quite a bit of work up front, but are well worth it on the back-end. When it comes to cash flow strategies, think "outside of the box." If a particular strategy won't work in your area, than think nationally or internationally and establish local partnerships.
Step Five - Start Your Own Business. It has become essential for individuals to not only diversify their investments, but also their sources of income. Since wages increase at about 3.4% and expenses rise at a much faster pace, the average person today is working harder and getting poorer. Every person has a great untapped business idea that can generate millions of dollars if properly executed. You just need to leverage The Baron Solution Four Keys for Building a Successful Business: a proven business model, experienced management, access to capital, and strategic partnerships.
Remember, becoming wealthy is not difficult; it just takes time and focus. Unfortunately, most people do not focus on becoming wealthy, until they do not have much time. Know that you can always change the condition of your life financially; you just have to be willing to think differently, more creatively, and strategically.
William R. Patterson is CEO of The Baron Solution Group and The Warcoffer Capital Group, LLC. He is an internationally recognized wealth coach and media expert who has been a featured guest on over 300 television and radio programs. William is a two-time award-winning lecturer and national best-selling co-author of The Baron Son. His Web site, BaronSeries.com, is winner of three 2008 Web awards including Best Wealth-Building Site. For information and coaching on THE BARON SOLUTION Strategies for Wealth and Business Success, visit http://www.baronseries.com/coaching.htm.
Permalink
Posted Saturday, March 22, 2008 (242 days 23 hours ago.) Viewed 37 times.
In February through April of every year, millions of Americans will be filing their taxes and receiving sizeable refunds.
Here are seven smart ways to make best use of your tax refund:
- Reduce your credit card debt. It is difficult to build wealth if you are paying 20-30% interest on credit cards. There are few better uses of your tax refund than paying down your high interest rate debt. You can use the Resources section of The Baron Series Web site to obtain your free credit report and find the fastest way to pay off your debt.
- Contribute to a Roth or Traditional IRA. Through April 15th, individuals are allowed to contribute up to $4,000 ($5,000 if you are age 50 or older) to an IRA for tax year 2007. If you are unable to make the April 15th deadline, you can make your 2008 contribution with it instead. For 2008, individuals are allowed to contribute up to a $5,000 ($6,000 if you are age 50 or older).
- Fund a 529 plan. For many parents and students, the cost of higher education has become increasingly difficult to manage. According to the College Board, tuition and fees at public colleges and universities have increased 51 percent on an inflation-adjusted basis over the last 10 years. A 529 plan can be a great way to begin saving for your children's college educations. Some states even offer an income tax deduction for residents who contribute to one.
- Build up your cash reserve. The average person should have enough cash to cover at least six- to 12- month's worth of living expenses to handle emergencies and to take advantage of new investment opportunities. You can use the Resources section of The Baron Series Web site to help you find many of the highest interest rate checking, savings and money market accounts in the country to help you fight inflation.
- Start saving for a down payment on a house or investment property. The government rewards property owners, so real estate can be a helpful way to build wealth while generating more tax deductions and tax credits. The sub-prime mortgage crisis and weak real estate market have created some great buying opportunities for those with the proper training and knowledge.
- Start a home-based business. Starting a home-based business can be a smart way to supplement or multiply your current income while generating additional tax write-offs. Facing a recession, it has become essential for individuals to not only diversify their investments but also their sources of income. On The Baron Series Web site, you will find the top 20 part-time and home-based businesses that you can start today and business coaching to help you succeed.
- Invest in your financial education. The more you know, the fewer mistakes you will make and the more opportunities you will find. Inadequate financial education exposes you to risks that can cost you tens of thousands of dollars and can create a paralyzing fear and lack of confidence in your ability to build significant wealth.
It is important to remember that receiving a large tax refund is not a good thing. Rather than allowing the government to hold onto your money throughout the year and pay you nothing in interest, you should work with your financial advisor, tax preparer, or accountant to adjust your withholdings so that you receive only a small refund after you file your return. This will allow you to free up more cash flow throughout the year to invest or pay down debt.
Lastly, beware of the real cost of expedited and rapid tax refunds. Generally, the few days you will save are not worth the cost, particularly if you file your return electronically. Patience always pays!
William R. Patterson is CEO of The Baron Solution Group and The Warcoffer Capital Group, LLC. He is an internationally recognized wealth coach and business coach who has been a featured guest on over 300 television and radio programs. William is a two-time award-winning lecturer and national best-selling co-author of The Baron Son. His Web site, BaronSeries.com, is winner of three 2008 Web awards including Best Wealth-Building Site. For information and coaching on THE BARON SOLUTION Strategies for Wealth and Business Success, visit http://www.baronseries.com/coaching.htm.
Permalink
|
|
Archives:
November 2008
| M |
T |
W |
T |
F |
S |
S |
| |
|
|
|
|
|
1 |
| 2 |
3 |
4 |
5 |
6 |
7 |
8 |
| 9 |
10 |
11 |
12 |
13 |
14 |
15 |
| 16 |
17 |
18 |
19 |
20 |
21 |
22 |
| 23 |
24 |
25 |
26 |
27 |
28 |
29 |
| 30 |
|
|
|
|
|
|
|
|
|
All Posts by William R. Patterson
|