5 Savings Tips for Small Business Owners

5 savings tipsMost small business owners share the challenge of pursuing growth while on a budget. Keeping processes lean can help redirect resources to more important areas of your business. Here are 5 savings tips that any small business owner can implement.

 

1. Hiring by contract

These days, small businesses are looking for alternate options to the conventional approach of hiring employees. Full-time staff can require from the business various commitments such as paid time off, health insurance, or other benefits. Hiring independent contractors for non-core work can be cheaper, easier to source, and can require less responsibility. The main expectation is that work completed is paid for.

 

2. Outsourcing Hands-on Tasks

Setting out what should be completed in-house and what to outsource can play a major role in the reduction of costs. Outsourcing work-specific tasks allows full-time employees to spend time on more critical, strategic work – increasing overall productivity.

 

3. Telecommuting

In order to cut costs, an increasingly popular option for businesses is telecommuting. There are various benefits that can make a difference, not to mention the potential to heighten employee work satisfaction. Travel and commuting costs for employees are reduced, including the time lost during the commute. With minimal physical office space to maintain, utility costs are also reduced.

 

4. Go Paperless

Reliance on paper leads to waste and further costs such as containers and pickup. If your business is printing materials that could be viewed electronically, do so. If paper is used, having a recycling program in place, or utilize double-sided printing.

 

5. Focus Marketing Efforts

Many businesses learn about what works and what doesn’t in marketing by way of trial and error. Taking the time to review your marketing strategy can help focus on efforts that yield success faster. If a marketing effort is bringing low return, it’s time to reinvest into a better option.

 

Donald Trump’s Tax Reform Plan

donald trump's tax reform plan

During the campaign trail, President Donald Trump made many assurances to his electorates, including positive growth for small businesses across the nation. By promising that their concerns would be addressed, Trump gained the votes of many. Over time however, various concerns have been brought to the forefront for small business owners. One of the largest being a tax burden that has been affecting their business growth. This has to lead to Donald Trump’s tax reform plan proposal every business owner should know about. 

Donald Trump’s Tax Reform Plan: Good or Bad?

Trump’s popularity has been on the decline, however his proposed tax reform policy has been the focus of many discussions. With potential positive effects on tax for small businesses, this proposal is expected to pass at the end of this year. A major tax break, otherwise known as “full expensing”, allows the ability to write off capital investments as tax deductions. This includes essential purchases such as new equipment and other business expenditures. Assuming this proposal will be passed, this could accelerate the expansion of small businesses towards the direction of long-term economic growth.

From an alternate perspective, there are some parts of the tax reform plans that will not benefit small businesses. The administration’s latest proposal does not include changes to fix loopholes that give advantages to wealthier corporations, including those owned by Trump. Without closing such loopholes, it will become increasingly difficult to level the playing field between small businesses and large companies. Allowing larger firms to utilize these loopholes to avoid taxes makes it an impossible challenge for smaller business competitors to keep up.

Evening The Playing Field

Despite the odds, over one-third of small business owners neither understand, nor take advantage, of potential tax deductions. Over two-thirds depend on a CPA or outside tax assistance to bridge the gap, adding additional costs to their bottom line. Those in favor of both an affordable and manageable tax system seek to take better control over their business and sustainable growth.

While conversations about Trump and his administration mainly hover around immigration and “the wall”, small business owners eagerly await tax reform improvements. Whether the proposals will hold true to Trump’s word remains to be seen. If the current administration presses forward on economic and regulatory issues centered around small businesses, owners would feel confident in the country’s future. As large corporations continue to swallow the competition, an even playing field will help improve industries across the US. It’s important for small business owners to pay attention to changes and take a stronger stance in ensuring that their voices are heard.

 

 

 

Mindfulness Tips for Small Business Owners To Reduce Stress & Anxiety

mindfulness tipsIncorporating aspects of mindfulness and meditation into your daily work routine can benefit your business in a great way. Mindfulness is an important tool that can keep you focused and even minimize the tendency for perfectionism. Reducing stress levels and improving sleep quality with meditation practice can boost creativity and productivity. Letting go is major part of mindfulness and meditation, something that many business owners can find challenging. However once this ability has been harnessed, there opens up plenty more room for progress in self-awareness and compassion. Try these mindfulness tips each day which should only take a few moments of your time, and very well worth it.

Mindful Tip #1 – Make it a mindful morning

Starting your day off right really sets the motion for the rest of the day. Take some time to breathe. Some advocate getting a timer, but taking a few minutes to inhale through your nose and exhale through your mouth is a good place to start. Begin by breathing in for 4 seconds, holding the breath for 4 additional seconds and then exhaling for 6 seconds. With repetition this practice this can become more natural, while safely building up to more extended breaths. Cycles of deep breathing stimulates physiological relaxation, a state of body and mind that can keep you mentally prepared. Remember, it all starts with just one breath in the morning.

Mindful Tip #2 – Take a moment to use your senses


Wherever you may find yourself throughout the work day – on a bench outside or at your desk – be mindful of the moment. Becoming mindful of your surroundings can be done anywhere. Instead of staring at your phone while having lunch, put it away – let yourself enjoy your meal. While outdoors, take a second to be aware of the scent of freshly cut grass or the feeling of a crisp breeze. If you can appreciate the small things, you will find yourself having much to be grateful for. One trick we like is called the “5 Sense Check In”. This mindfulness tip is easy – simply stop and ask yourself what you’re seeing, what are you smelling, what are you hearing, what do you taste and what do you feel (physically and emotionally). Simply being aware of this continuously throughout the day can reduce stress and anxiety tremendously.


Mindful Tip #3 – Make time to meditate

Many professionals find that making meditation a priority can be life changing. If you’re stressed, take a moment to disconnect from your devices and rebalance. Set aside 1-5 minutes to sit quietly and focus on your breathing. Thoughts will naturally come to mind, but when this happens, just observe them without judgement and let them go. A great app to have on your phone is “One-Moment Meditation”, recommended by many for its ability to get you meditating quickly. Making time for more in-depth meditation sessions will provide faster results. Take advantage of quiet spaces such as a meeting room at work, or inside your car. Make your mental balance a priority and you will find that much more gets done. Consistency is key to notice a life change; witnessing the changes that meditation brings will keep you motivated.

5 Best Smartphone Apps for Small Business Owners

best smartphone appsSmall business owners are turning to mobile apps to grow their business while on the go. With thousands of Android and iOS apps on the market, we’ve identified the best smartphone apps for improving workflow and increasing communication.

  1. Google Drive – Free (Android & iOS)

Every small business owner will find that it is imperative to keep documents organized. Google Drive has been a great solution for small businesses for quite some time due to its multi-platform accessibility and ease of use. All documents and files can be edited, stored, backed up, exported and accessed from any device with internet connectivity. In Google Docs, users can write, create presentations or fill spreadsheets. All revisions in documents are saved for future review or for any quick undos. At no cost, this app will bring a more seamless experience to document access, organization, and collaboration.

  1. Quickbooks Online – Free, plus subscription (Android & iOS)

Regarded as the best accounting software for small business owners, especially those without accounting experience, Quickbooks Online is practical to use. With advantageous tools to monitor and manage finances, this app is perfect for the need to send out invoices, or review finances. If any troubleshooting is required, there is free live support available via chat or phone. Using a well-utilized tool is another benefit, especially for bringing on accountants and bookkeepers. Other features include the creation of budgets and financial statements; inventory tracking; and payroll.

  1. Slack – Free (Android & iOS)

For keeping on top of communication with the team, Slack has become the go-to for many small businesses. Collaboration with colleagues has never been an easier task, with enhanced messaging and app integrations all in one place. Slack’s tools range from sharing to-do lists and collaborating on documents, to getting projects off the ground quickly and efficiently. Users rave about how much easier, yet more productive, their work processes have become. With availability on all devices, employees can get in touch with team members quickly, from anywhere. Integration options are available with platforms such as Google Drive, Dropbox, Salesforce and Zendesk. This is one of the best smartphone apps in our opinion.

  1. Trello – Free (Android & iOS)

For those looking for a greater focus on productivity, Trello is the perfect app to organize tasks from a high-level perspective. Focusing on building business rather than spending time with status update meetings is what makes Trello so beneficial. Via the use of boards, workflows can be organized independently or with team member collaboration. To-do’s and tasks can be added, assigned and commented on. Boards sync automatically, and working offline is easy. Integration with external apps make it a perfect central location for task management and project visibility. With the added ability to upload photos and videos, users can also attach files from Dropbox and Google Drive.

  1. Hootsuite – Free (Android & iOS)

Syncing all social media accounts to Hootsuite and managing them via the dashboard makes it simple to manage social media. For up to 3 social network accounts, businesses are able to benefit from its usage without any added cost. All features of publishing, uploading photos, and auto-scheduling posts are available with this free version. Another great feature is the Ow.ly link shortener, a quick way to track click-through report analytics. For both posting and monitoring, Hootsuite is the top all-in-one social media solution for smart phone apps.

 

Debt Financing vs. Equity: Which Is Best For Your Business?

debt financingWhen it comes to raising money for your small business, there are many options to choose from. Small business owners can raise money from angel investors, obtain debt financing, or invest their life savings into the business. Ideally you don’t have to put up funds to keep your business going, which brings into question, what is best for your business, incurring debt or selling equity? First, a brief overview.

 

Debt vs. Equity: High Level Overview

When you take out a loan for your business, you incur debt and must pay back your lender. When you sell equity, you give up a percentage of ownership in exchange for the funds. Sometimes equity deals require you to pay a portion of profits to the investor, but usually the investor just receives their percentage of the sale price if you happen to sell your business.

 

Debt Financing: The Good, the Bad, the Ugly

Debt financing has many advantages and disadvantages, depending on your situation. The advantages include:

  • A vast array of products to choose from
  • Non-dilutive, you do not have to give up any equity
  • Debt financing is the cheapest pricing available for small business owners – cheaper than equity, cheaper than alternative funding products like merchant cash advances, and cheaper than using your own money.
  • Although there are many covenants and promises contained within any loan agreement, there are less strings attached than those you have with an investor.

One of the main advantages of debt financing is the vast array of products you can choose from, that best fit your business. The following are all debt financing products:

  • Small business loans: general working capital for your business operations (6-18 month terms)
  • Term loans: 3-5 year loans for expansion, acquisition of a competitor or opening up a new location
  • Lines of credit: funds you can draw upon as you need them, collateralized by inventory or accounts receivable
  • Invoice financing: advances against an asset called accounts receivable
  • SBA loans: 5-10 year loans for expansion, acquisition and general working capital.
  • Equipment loans: funds from the lender are specifically used to buy equipment, which serves as the collateral for the lender (i.e. you do not have to have any collateral to obtain the loan; the equipment purchased with the loan proceeds is the collateral itself. This is called a “purchase money security interest” or PMSI deal).

The disadvantages of debt financing include the repercussions associated with default and the potential damage to your credit score. Most debt financing products require a personal guarantee, which places any personal assets you own at risk should you default on the loan. Although the lender has the right to take your business assets as well, they don’t have to go after your business assets first in the event of a default. They can go after your personal assets or your business assets in any order they choose. Additionally, defaulting on a business loan can affect your business and personal credit, thus making it more difficult to get a loan in the future.

As a general rule of thumb, you should only incur debt if you have a proven and successful business model, and a clear path to revenue with the new funds (i.e. acquiring a new business with the loan proceeds, the cash flow of which can service the debt payments).

 

Selling Equity: Good for Some, Not for Others

Like incurring debt, selling equity has its advantages and disadvantages and these depend on the business owner’s goals and aspirations. The biggest downside to selling equity is that you give up a percentage of future profits for life, including proceeds from a sale.

If you’re looking for an investor, make sure they’re a strategic investor that is going to create value for your company – by doing things like introducing you to potential customers and referral partners. What you don’t want is an investor who doesn’t contribute anything. These are normally called “silent investors”, and you effectively work for them because a percentage of your profits is theirs forever (technically).

However if you have investors that are increasing the size of the pie for everyone – including your share – then it becomes far more palatable to give up a portion of profits for life.

Also, another downside to investors is that they often want control. Be careful when reading the legal documents to make sure that you will still have the freedom to operate with discretion in the day to day of your business. The last thing you want is to have to run everything by your investor, as they can severely hinder your growth if they try to protect their money with an iron fist. You need an investor who trusts you, believes in you and your business model, and will give you the freedom to operate (within reason, of course). The upside is that if things go south, that’s the risk the investors are willing to take (unlike a lender, who will take your assets).

You must weigh these options and interview both lenders and investors as if you’re interviewing a new hire. Drill them with questions to find out if they’re the right fit for you.

Slow Season Survival Tips for Small Business Owners

slow season survival tipsSlow seasons can be difficult for small business owners. Seasonal setbacks can arise that take a toll on stretched budgets and exploring new growth opportunities. Below are some slow season survival tips for small business owners used by various clients of ours. We hope you find them just as useful!

1. Offer products/services that are applicable all season

A good way to generate extra revenue is to bring on new products/services that extend beyond the seasons. Many business owners can find consistent sales difficult when certain products or services are seasonal. Services such as tanning salons find a higher uptick in the winter, with less volume in the summer; similar can be said about selling patio furniture in the winter months.

In order to circumvent a drop in sales over seasonal products and services, small business owners have traditionally used creative ideas to keep sales up during the off-season. Landscaping business can turn to tree and snow removal services in the winter to keep things running, and food trucks and seasonal restaurants can introduce new menu items to reflect the change of season. Retail stores can rotate new product lines, putting their off-season products in storage (or sell them to resellers and off-price stores) to make way for the upcoming months.

It’s important for small business owners to listen and learn about their customer’s habits. By identifying new areas of opportunity in their daily routine, businesses can sell new seasonal products and services to keep the revenue balanced throughout the sales year.

2. Spread operating costs and other expenditures out.

Seasonal businesses usually find finances to be most strained just before the prime season begins. It is always good for business owners to make a calendar-based budget to keep track of all steps along the way. Points to note should include personal tips such as the best times to hire staff, make business purchases, etc. This allows the business to allot necessary funds proportionately based on prior knowledge, efficiently and with ease. Viewing the budget on a monthly basis, or only focusing annually, is not the best way to ensure a business’ cash flow runs smoothly. Rather, budget for the year ahead, with view of the years to come – as this way the business owner can keep funds in their pocket to buffer any slow seasons ahead.

3. Try to negotiate contract terms with suppliers

It can benefit to speak with suppliers and make an attempt to negotiate contract terms. Talking to suppliers and vendors can help create more favorable credit terms, or to even modify existing contracts so that they work better for the business.

An example would be changing annual advertising contracts to seasonal contracts – saving a lot of money and giving more control over finances. Remember, it doesn’t hurt to ask! Many businesses find that suppliers are willing to grant seasonal businesses extended payment terms or offer similar arrangements to assist during slower business periods. Good relationships with vendors can help make this a possibility, especially when payments are made on time, sales volume is high, and when there has been a long history of business together.

4. Secure flexible working: #1 of all slow season survival tips

My financing institutions prefer to fund businesses just ahead of their busy season, because they know they will collect their money. Similarly, business owners prefer to have funds available just prior to busy season because they can deploy funds into revenue-generating activities. This allows the business owner to pay the financing institution back with new customer money (instead of having to tap into existing cash flow). Please let us know if we can do anything to secure you flexible working capital.

Top 6 Accounting Software Programs for Small Business Owners

accounting software programsThe search for the right accounting software can be tedious. As the choice depends on company needs, assessment includes company size, cash flow, accounting experience and company budget. Here are 6 top accounting software programs small business owners can turn to:

Wave Accounting

Wave has come a long way since 2010 as a free, cloud-based program. Now supporting 2.5 million users, the software provides free standard features, with a visually pleasing interface. Tools include billing/invoicing, estimates, expense tracking, and advanced sales tax settings. Available on Android and iPhone, Wave has added extra features for contact management, bank reconciliation, and lending.

Xero

Used by both small business owners and accountants, Xero offers over 500 tools to provide customization for company needs. Supporting multiple currencies, Xero revolves around handling payroll and payroll taxes. Optimized for collaboration between users and accountants, data is processed through a single ledger. Users can speed processes by creating invoices via preset templates, or by sending billing or invoicing statements directly online.

SlickPie

Suited for small businesses, SlickPie’s cloud-based platform brings an invoicing feature for online billing and document management with pre-set themes. Financial reports provide users with business growth analytics, and automates invoicing and payment reminders. It’s free to use, and provides an additional free tool called MagicBot for automated data entry.

QuickBooks Online

Commanding as one of the most recognizable software applications, QuickBooks offers both licensed and online versions. Invoices/billing can be electronically sent to customers, and accountants can find collections, fixed asset management, and cash management tools helpful. QuickBooks provides a 30-day free trial to see if it matches company needs.

Kashoo

Available on iOS and web, Kashoo’s cloud-based accounting software is priced at $12.95/month (free trial available). Online training webinars as available as well as support during business hours. With the ability to track expenses and income, users can invoice customers online and access payroll and tax management features. Kashoo stands out for its ability to deal with multi-currency expenses easily.

Sage 50

Popular amongst small to medium-sized businesses, Sage 50 include features for accounts payable, accounts receivable, bank reconciliation, and cash management. The payroll and employee management features makes it a unique option amongst competitors. Priced at $29.95/month.

Which accounting software programs are best for my business?

Start with free trials and find your optimal comfort level. It helps to obtain a list of requirements from each of your stakeholders so you know what to look for. Reviews online can be helpful, but view them objectively. Finally, remember to consider tools that other businesses in your industry are using.

 

Marijuana Financing for Legal Cannabis Businesses

marijuana financingAs of mid 2017, medical marijuana is legal in 29 states and 7 states have legalized recreational use. This has resulted in a “pot rush”, where many enterprising individuals are entering the market to somehow capitalize on marijuana. Successful existing cannabis businesses are growing tremendously, the weak ones are getting shaken out, and new players are stepping on the scene. All of this has resulted in a tremendous need for marijuana financing, namely working capital.

Marijuana Financing and Working Capital

A great working capital product for cannabis businesses is the “future revenue advance”. This product is structured as a purchase of future bank deposits (not a loan) so it complies with — and does not fall within the reach of — state regulators. Before we get into the details of how it works, here is a quick summary of the highlights:

  • Cheaper than investors – scale growth without giving up profits forever
  • No collateral required – business or personal
  • No personal guarantee – operate with the freedom to know your personal assets aren’t at risk
  • Often unsecured by funder – some funders don’t even ask if you have collateral
  • Funding in 24-48 hours – great for emergency or opportunities
  • 4 month revenue history – just getting started? No problem.

How it works

This type of funding requires no collateral and is often unsecured. The way it works is that the funding institution will “purchase” a chunk of future revenues from the business, in exchange for a fixed payback. Payment amount is determined by past bank deposit activity, and is often represented as a percentage of historical average deposits. Basically, payback is a fixed royalty (i.e. 10% of revenue) for a fixed period of time (until paid off).

Why It Works

The future revenue purchase is ideal for cannabis businesses for a few reasons. First, the time to receive funds is usually 48 hours. Second is that it is way cheaper than investors. A relatively new cannabis business might pay a lender 20-30% over 6-18 months, but that same business would pay an investor 20-30% for life for the same amount of money. Also bear in mind that this is more expensive than a traditional product like a loan because it is often unsecured, no collateral is required, nor is a personal guarantee. Lastly, there are no limitations for which the funds can be used.

Use of Funds

Funds can be used for whatever you want, however you want to deploy them in a way that makes sense, to either exploit an opportunity or prevent a disaster. Popular uses of funds include:

  • Expansion financing – we’ve had many clients use the funds to make a down payment on a new leasehold for expansion of their growth operations. Many cannabis businesses are on the hunt for new, bigger locations and are being outbid by their competitors. Having the capital in hand to back up your bid goes a long way. Funds can also be used to purchase heat lamps.
  • Acquisition financing – now that the market is becoming (relatively) more mature in states like Colorado and Washington, smaller players are realizing the struggle and offering their businesses up for sale. This is allowing the bigger players to capture more market share at scale. The revenue advance can be used to acquire existing businesses or assets from a business.
  • Working capital – sometimes businesses simply need the extra cushion in their bank account to bridge them to busy season. Or to hire new staff. Whatever the reason may be, this is a great marijuana financing solution provided however you have the margins to support the payback.
  • Emergency capital – as a business owner you know things can go wrong and fast. Having access to liquidity can help you prevent disaster by affording you the ability to remedy the situation as needed, and in a timely manner.

Example Marijuana Financing Deal

A typical revenue purchase for a cannabis business that averages $100,000 in deposits would look like this: the funder would purchase $125,000 of future revenues in exchange for $100,000 up front. Viewed differently, the amount the cannabis business would receive is $100,000 and the payback would be $125,000. Payments are usually 10% of average monthly deposits, or $10,000 in this case. So the payback time would be slightly over a year ($125,000 divided by $10,000 = 12.5 months).

Minimum Requirements

The revenue purchase is fast and flexible, so it is not overly burdensome for a cannabis business to obtain marijuana financing. Usually, here are the requirements to obtain a quote:

  • 1-page application – business name, Federal EIN #, etc. must be a business entity applying
  • 4 month revenue history – evidenced by bank statements, deposited into a business checking account, not a personal account

After you’ve obtained a quote, and you’d like to proceed with funding, the following is required:

  • Proof of ownership (i.e. tax return schedules)
  • Copy of a voided check
  • Bank statement and account verification
  • Copy of owner’s drivers license
  • If over $75,000, financial statements (P&L and balance sheet)

Contact us today if you’d like to learn more!

 

What is a Merchant Cash Advance (“MCA”)?

For a quick, one-time capital infusion into your business, the merchant cash advance (“MCA”) is an excellent option. MCAs, also known as credit card receivables funding, are a form of cash flow financing. The structure of an MCA is a lump sum of capital up front, in exchange for a fixed payback amount. Payments returned to the funder are received in the form of a fixed dollar or percentage of revenues (effectively a royalty) until the agreed upon repayment amount is met.

Payments are withdrawn directly from the bank account, on a daily or weekly basis, or remitted directly by the credit card processing company. The business’ cash flow (bank deposits or credit card processing volume) is the basis for funding as an option for short-term financing. As collateral is not required with a MCA, it is a suitable option for companies with few assets.

With same-day funding available, the typical turnaround for an advance is 2-3 business days. Often, deals under $100,000 are funded on the same day.

Benefits of an MCA

Merchant cash advances have many benefits. First off, MCAs are highly flexible, accommodating cash flow needs. Lower credit scores are not an issue, as the minimum FICO requirement is 500. Securing an MCA also helps re-establish and improve your credit score. Funding is secured by future cash flow, so if you have a solid cash flow but no assets, you can still qualify. Additionally, securing an MCA requires little stipulation compared to bank financing.

To obtain an offer, an application and four months of bank statements are required. If you process credit cards, your merchant statements will be requested as well. The financing company will require minimal documentation in order to close: a driver’s license, proof of ownership, and a void check. For larger deals, additional information such as your financial statements will be required.

MCA versus other options

When considering funding, it is good to bear in mind that equity is the most expensive option. Equity requires that a percentage of profits and losses are shared with your investor indefinitely. For MCAs, payback is provided as a fixed royalty for a fixed period. It’s perfect for high growth companies, capitalizing on opportunity, preventing disaster, or bridging your business to busy season. However if you are simply delaying the inevitable and your business is in a downward spiral, an MCA can hurt your cash flow significantly. So be careful!

Opting for a MCA is popular for many reasons. Purchasing inventory at volume in order to receive discounts can be completed quickly with an MCA. Having a short-term financing option on-hand for emergencies such as equipment failure can keep operations running smoothly.

An Entrepreneurial Profile: The Digital Media Publisher

factoring for openxThe digital publishing landscape is filled with opportunity, across so many different verticals. Publishers can include aspiring Buzzfeeds, in the business of creating “media” like content, or smart phone apps. Both publisher models earn money via advertising, and also drive revenue with advertising.

Digital Media Publishing

Successful publishers know exactly what type of media (i.e. free apps, articles) will be appealing to what audience. They spend dollars promoting certain articles or apps in front of certain audiences that will interact and eventually click on ads, in turn earning them revenue. Publishers use one to many vendors like Facebook, Google, AppNexus and others, that provide content promotion services across desktop and mobile. This digital publishing business model requires multiple skill sets and “whole-brain” thinking. By whole brain thinking, we mean that the publishers must be able to hone in on their intuition, and analyze it to make the right decisions.

Creativity: Required

Here is an example. First, a publisher must be creative in what type of theme they decide to build a business around. As a content publisher, the theme can be articles about lifestyles of the rich and famous, cool history facts, or photo galleries. For apps, it can be a utility such as a PDF scanner, or fun media like a face-filter app. The underlying commonality is that the creative ones will generate interest, eyeballs and ad revenue.

Second, after determining the theme, the publisher must make the interface (website or app) easy and smooth to navigate, and also continuously generate creative media to be consumed by the masses.

Third, for an audience to see an article or an app, publishers have to put it in front of them via advertising. This in turn requires more creativity because the ads must be creative to get people to the website.

Lastly, a publisher must know — or figure out — which audiences to place certain articles or apps in front of, and on what device. This requires a tremendous amount of creativity.

factoring for appnexus

In reality, a publisher can have the most genuine, entertaining and interesting media, but without good ads, it will never be seen by a huge audience. To get the media in front of the masses, digital publishers spends money via platforms Google, Facebook and MobX. Those firms take the publishers ad creative (ads about a publisher’s content or app), and they place those ad creatives in front of very specific audiences chosen by the publishers themselves.

Digital Media Requires Analytics

Promoting content in turn creates data for a publisher to analyze. What articles are working in front of which audience, on what platform and what devices? Are both desktop and mobile generating an ROI? Are winning campaigns from Facebook failing on Outbrain? What’s the download rate if a publisher changes the catch phrase on an ad creative? These questions and more must be analyzed with hard, firm numbers.

The ability to analyze results of ad creative and promotion is the compass for successful publishers.

Publishers must also know what tools to equip their website with to make sure it loads fast, looks nice and creates a residual revenue generating asset.

The n30, n60 and n90 issue

Unfortunately for publishers, they pay media promotion platforms much sooner than being paid advertising revenue. Average time to pay is 15 days, but average time to get paid is 50 days. Without access to cash, publishers often run up balances on credit cards to fill the gap, continuously paying it off as soon as they get paid ad receivables. This allows them to grow, but keeps all their profits tied up in the business — especially if they are hiring staff, content writers, and increasing ad spend on successful campaigns.

Invoice Factoring for Digital Media

Invoice financing is a great solution for digital media publishers for a couple of reasons, mainly because it provides publishers with liquidity to grow, enabling them to plow revenues into content marketing or paid user acquisition campaigns. For app and game developers, this is called “revenue recycling“. By obtaining an advance of outstanding advertising receivables, publishers have the necessary capital to plow into their growth initiatives. Publishers earning ad revenue from DoubleClick for Publishers, OpenX, Matomy, sovrn, MobX, Teads, Google Adsense, Criteo, Sulvo and others may qualify.

Are you a digital or traditional publisher? We’d love to see if we can help you grow by finding a partner to help manage cash flow. Contact us today at 1-833-Buy-My-AR.