All companies ranging from sole-proprietors to large corporations both small and large can benefit from the concept of introducing "new money" into their business.
A friend and business associate of mine has coined this phrase.
This concept will work during both good and bad economic times, an out of the box way of thinking.
So, what does the phrase "new money" mean? The owner of the business must look at new ways of providing more revenue streams for their existing operation, services or manufacturing.
In other words, consider alternate ways to generate cash flow that may not be your existing business model.
This concept is extremely important during tough economic downturns due to the normal retraction of the economy.
"New money" is a way to generate new dollars that would never been considered through conventional thinking.
For example, consider how many businesses are not utilizing all of their office space within their facilities.
If all your offices were taken then this would not work.
However what is being done with the empty offices, chances are nothing.
As a business, you are still paying for all the overhead associated with the offices with no revenue being generated.
This needs to be treated as idle inventory that needs to be moved.
If you have one or two offices that are not being used then why not create "new money" by sub-leasing the space to someone needing an office with all the necessary technological hookups such as internet, phone, fax, etc.
that you are providing in your complex.
The "new money" created now will offset your fixed overhead cost.
This becomes a win-win situation for the individual or business needing some office space at a reduced cost of a regular office.
It is also revenue for your businesses not previously considered by thinking outside the box.
What if your main business is catering for various types of events? Each week, time is required to cook and prepare for each event.
You already have to utilize several food preparation appliances in preparing orders for the catering business so why not offer a retail counter open during the same time for unexpected walk-ins.
Once people know they can buy your products on an individual basis, they will drop by.
This is one way of generating additional sales but does not require any additional time on your part.
Let us consider that your primary business is manufacturing various original equipment parts.
Your business model is based on selling all new manufactured parts.
However, would your customers consider buying used or refurbished parts at a much-reduced price for a cost savings? Some businesses focus is selling refurbished equipment and parts.
This is not your business plan but an addition to your product line.
However, if it creates additional cash flow then "new money" is generated for your business.
This method can in be applied in most all types of businesses but you as the owner must be creative, forward thinking and consider options that are different from your conventional practices of doing business.
Do you have idle time on your manufacturing machines used in your business? Do you have delivery trucks not utilized several hours during the day? Do you have warehouse space that is not being used or empty? Consider your hours of operation for your business.
Can your business be used for other operations when you are not using the business? Can you create additional business by offering more choices to the end customers? If you can think of other ways to generate cash flow that is not part of your normal way of doing business then you are generating "new money.
" In today's competitive market, it is critical to consider ways to create that edge over your competition.