Entrepreneur Bible: use others' money to do your own things

It is basically impossible to find a bank loan before you start famous. The bank's money is used to generate money. You are clearly on the back of their list.

It seems that the only way is to borrow money from friends and family.

In fact, borrowing money from other companies is far better than borrowing money from individuals. If you are able to charge fees from customers in advance and pay the fees to the suppliers, then they will use their money to expand your own business.

It is better to discuss with your suppliers and customers than to ask the bank lenders who have doubts, because the success of your business is directly related to their vital interests.

Assume that you are a single publisher and are dealing with a printer facing sales pressure. He has squeezed out the full potential of all old customers. To achieve additional performance, he can only find new customers.

You are the new customer. It is true that you do not have many credit records or a decent office environment, but your publications are your most promising assets. Who dare say it will not become the next Time magazine?

Now the printer is online with you. He needs your business. He will try to persuade his company to give you credit. In the final analysis, if you are developed, the benefits will be indispensable.

Establishing good relationships with large suppliers is one of the keys to success. It puts you in a favorable position: You can save valuable cash from your inventory and use it where you need it more.

In the best case, the supplier even allows you to pay the bill later without additional fees. That's right. It's like a zero-rate loan!

An entrepreneur once persuaded a printer to print a publication worth $2 million without a deposit, with a grace period of 200 days. During this period, she was able to build her own reputation and get enough advertisement to achieve a positive cash flow. This story also shows that you must take the initiative to fight for it.

In a highly competitive market, suppliers often seek customers by providing credit. Taking the typographical industry as an example, the service providers in this industry are full of streets, and their equipment and technical conditions are similar. Despite the high margin profit, it is very difficult and expensive to win new customers.

A company once promised to bring a new business of $4 million to a typographical merchant, provided that the typographical merchant had to give the company a 90-day grace period. As a result, the company saved millions of dollars in interest payments, and the typographical merchant won a new customer. The ending is naturally a joy.

Another key step for Building credit is to treat customers honestly and provide services in a professional spirit. Your credit history is an important basis for other companies to measure you.

Once the foundation is laid, you can start dealing with large suppliers. At the beginning, it would be helpful to contact sales people and they would teach you a lot.

When you create a license for your supplier, it is important not to pay a penny for a long time. You should pay a certain amount every month, so that even if they think your debt is a little too high, it is difficult to give up your master account.

Customers are another important source of funds. That's right. The objects you sell are also your gold owners! You must know that you can sell the product to the customer because it solves the customer's problem, otherwise the customer will not buy it.

Sam invented a vending machine and soon became a hot spot. A nationwide chain store needs to order 500 units and is in a hurry. (This is a big deal !) However, there is a problem: Each machine requires a manufacturing cost of $10 thousand.

Sam was eager to raise the $5 million billion. At that time, interest rates were high, and most banks and investors were reluctant to take such a big risk on a startup company.

Someone suggested Sam talk to the chain store and ask for half of the deposit. This is against the Convention (the chain stores usually pay within 60 days after the arrival of goods, for Sam, the money is obviously far from thirsty ).

However, the chain stores realized that if they did not pay a deposit, they would not be able to get the machine, and the loss was obviously much greater than the deposit. Therefore, they paid the deposit.

In this way, Sam got $5 million in cash and didn't have to pay any interest.

Of course, it is not always so easy. Sometimes, you have to give customers some sweetness to make payments in advance, such as discounts, gifts, and so on. However, please remember that if you do not open your request, the customer will not take the initiative to give you an advance payment. Therefore, you must take the initiative to appeal!

Source http://www.yeeyan.com/articles/view/little/360