The Merriam-Webster Online Dictionary defines “secret” as:
“1 a: hidden from knowledge or sight: hidden b: marked by the habit of discretion: quiet c: working with hidden goals or methods: undercover (a secret agent) d: unrecognized: unconfessed (a secret girlfriend) e : conducted in secrecy (a secret trial) 2: kept from human habitation or notice: 3: revealed only to the initiated: esoteric 4: designed to evade observation or detection (a secret panel) 5: containing information the disclosure of which is not authorized could endanger national security.”
As used in this article, secret means: revealed only to the insiders; kept out of sight or knowledge; and designed to study observation or detection.
The first secret, “revealed only to the insiders,” relates to the fact that most schools, even business schools, don’t teach factoring or purchase order financing; most banks do not offer these financing facilities as products. So it’s not surprising that many businesses are unaware of the potential for cash that lies dormant in their business invoices.
Let’s say you own a small or medium-sized business and depend on customers paying invoices within 45-60 days for your working capital. In essence, you are extending credit to your customers like a bank. During that time period, your cash is tied up in your invoices, your accounts receivable. This limits growth and can create problems meeting payroll and paying your vendors. Accounts receivable financing is the process of selling your invoices for cash as soon as they are issued, allowing you to make more effective use of your assets. Purchase order financing is the process of obtaining a commitment from a third party to pay your suppliers as soon as your customers receive the products (before you or your customer pay in advance), based on the guarantee of an agreement. financing accounts receivable.
All businesses are limited in their growth and profits by the amount of capital and cash flow available to take advantage of business opportunities. The availability of virtually unlimited cash creates a powerful paradigm for potential growth. You can also broaden your thinking about what businesses are possible and how you might go out and develop new businesses.
The second secret, “hidden from knowledge or sight,” relates to the practice of factoring without notice. Some business people worry that working with a factor, an accounts receivable financing company, will not be viewed favorably by their clients. In many cases, it is possible to legally structure a transaction so that the financing of accounts receivable is transparent to the end customer.
The third secret, “designed to evade observation or detection,” has to do with your business plan and how the way you think about the world can affect your success. In 2006, Prime Time Productions produced a movie and a book called “The Secret.” The film dramatically portrays the “Law of Attraction,” which states that people’s feelings and thoughts attract real world events into their lives. Can your feelings and thoughts attract more business and success? Is the visualization of what you want a help in manifesting your business objectives? Is The Secret “just a new twist on the very old (and decidedly not secret) The Power of Positive Thinking (a Norman Vincent Peal book written in 1952) married to ‘ask and you shall receive’ – in Karin Klein’s opinion, Los Angeles Times Editorial Writer? Did The Secret Fail To Uncover The True Roots Of Powerful Thought?
In the book, “The Diamond Cutter”, Geshe Michael Roach examines The Budda on how to manage your business and your life. Roach graduated from Princeton University with honors, studied the ancient wisdom of Tibet, and traveled to the Tibetan Lamas at the seat of the Holiness of him, the Dalai Lama. In 1983 he took the vows of a Buddhist monk.
His teacher encouraged him to enter the business world. Mr. Roach chooses the diamond business. He hid the fact that he was a monk and maintained the facade of a normal American businessman on the outside. The business grew from nothing to a hundred million dollar a year business.
The original book, “The Diamond Cutter” is the “oldest dated book in the world to have been printed rather than handwritten. The British Museum has a copy dated AD 868.” It is a written record of the Buddha’s teachings from over 2,500 years ago. In summary, the core principles are: 1) the business must be successful and make money fairly and honestly; 2) you must enjoy money and keep yourself in good health; and 3) you must be able to look back on his business and say that his years of doing business had some meaning and left a mark on the world. I highly recommend “The Diamond Cutter” vs. “The secret”.
The bottom line: Accounts Receivable Financing and Purchase Order Financing may be the secrets to your company’s financial success. By reading and following the principles of “The Diamond Cutter,” you can expand your opportunities for exponential growth based on the 2,500-year-old teachings of the Buddha, as explained by Mr. Roach.
Copyright © 2007 Gregg Financial Services