May 26, 2015 by
Tiffany C. Wright
Whether or not you sell with a tenant depends on who your intended buyer is, investor or occupant.
If selling as a rental, keep the tenants.
If you want to sell a rental property as rental, you should definitely sell it with the tenant in the property, preferably with at least six more months before the lease ends. Because a long-term tenant ensures that the new landlord does not have to immediately tend to a vacant property and search for tenants, you will sell your property sooner. This, of course, assumes that you have a good tenant who pays rent timely and takes care of the property.
If selling to a homeowner, have the tenants move.
If, instead, you intend to sell to an owner-occupant, you should take immediate steps to get your tenant to move. The fastest way to do this is to ask the tenant to move out so you can move in. In some jurisdictions, you must actually move in (partially is fine) or your former tenant can accuse you of fraud. Typically, you’ll need to clean, paint, etc. to restore the home to its full glory as a primary residence.
Determine who your target buyer is, in advance.
Because of the distinct differences between selling to a landlord and selling to an owner-occupant in how you approach a sale, you must determine who your target is in advance, based on the market information, and act accordingly. Does the area have a high number of renters or does the house produce above market rental income? Sell to a landlord. Is the rent you command low or is your home the only or one of few rentals in the area? Sell to an owner-occupant.
Encourage your tenant to cooperate.
To get your tenant to cooperate: If you have a great tenant, offer to extend the lease at the same rent for a few months, offer to provide something for free that the tenant has requested in the past, offer free lawn care or a housekeeping service for 2-3 months. Be creative and provide solutions to your tenant’s concerns that get you what you want – in other words, a win-win situation.
February 27, 2015 by
Tiffany C. Wright
You want to have the money (well in advance!) to meet payroll and pay your valuable employee.
A big issue for many small business owners and entrepreneurs is finding the funds for marketing. Many business owners treat marketing as a variable expense (which, technically, it is). However, marketing should be viewed as an investment, which is required to meet certain standards in terms of return on investment (ROI) and effectiveness. When you think of marketing as an investment, you can begin to creatively approach the financing of that investment. In the new free ebook, “5 Ways to Get Enough Money to Market Effectively and Meet Payroll: Have Cash, Not Just Paper, Profits“, I discuss 5 ways to creatively finance your marketing and access the cash you need to pay your employees – and to know where that cash is coming from well in advance of the pay date!
Below is an excerpt, method # 2, from the ebook:
2. Form marketing partnerships.
Sales and marketing are how you grow your business. Your marketing must be effective, otherwise highly ineffective marketing can become a money pit. You must clearly identify your target customers and determine what marketing works best for your company and your staff. One way to drastically reduce or even eliminate your out-of-pocket marketing expenses AND significantly increase the effectiveness of your marketing is to enter into marketing partnerships.
The optimal way to enter into the market or to drive an increase in sales in your market niche is to partner with a firm that already dominates your niche. Ask yourself: What companies reach your current or targeted customer base? Does your firm offer services or products targeting the same customer base that are complementary or supplementary to what these companies offer? (i.e., You want to avoid direct competitors.) Is the prospective customer sufficiently large to cover the additional marketing costs?
For example, you sell remote IT services to small businesses, nonprofits and local arms of larger companies. You could partner with a larger database maintenance firm or a software services provider. By adding your service to their general offering through a co-marketing arrangement, the database or software company appears to have a broader range of service offerings, which helps it further differentiate itself from its competitors. You get your marketing; your partner gets an additional competitive advantage. Win-win.
Do you want to know what the other four ways are? Download the free ebook, “5 Ways to Get Enough Money to Market Effectively and Meet Payroll: Have Cash, Not Just Paper, Profits“.
September 05, 2014 by
Tiffany C. Wright
Tallmadge, OH – Below are three of the numerous ways business owners can obtain financing, taken from the informative new book, The Funding Is Out There! Access the Cash You Need to Impact Your Business. These three business funding sources apply to companies whether they have $250,000 in revenue or $25 million. Businesses currently seeking funding can put these sources to immediate use. Otherwise, use these sources to generate ideas and spark your creative thought process to access the cash you need to impact your business.
Barter/Swap. As a business owner, you have a product or service that someone wants — and therefore something to barter or swap — or you would not be in business! When I was at Enron, we entered into swaps to trade space on one telecom network for space on another. And yes, GAAP recognizes barters and swaps as a legitimate revenue source or expense. Bartering positively impacts your bottom line and conserves your operational cash flow.
Find a strategic investor. Strategic investors invest actual funds into your business, while generally operating as a strategic partner. Ask yourself: “Is there at least one Fortune 1000 or other large company that could benefit directly from my company’s product or service offering?” If so, reach out to those companies. It is often less risky for those companies to invest in smaller companies developing a new technology, service, methodology, or procedure than to attempt to do it in-house.
Tap your suppliers. For most distribution and manufacturing companies and certain service companies, payments to suppliers are one of the largest expenses the company incurs. If you are rapidly expanding and need funds to pay suppliers, ask your suppliers to advance you the money. If you can successfully make the case that your expansion will significantly increase your supplier’s revenue, you may induce your supplier to provide a short-term or mid-term loan. At the very least, you can negotiate extended payment terms.
For more tips on financing your business, information about The Funding Is Out There! Access the Cash You Need to Impact Your Business, or speaking to your organization, please visit http://www.thefundingisoutthere.com or contact Trevor Wright at 404-642-0509. The Funding Is Out There! is also currently available on Amazon and will be available everywhere on October 1.
About Tiffany C. Wright
Tiffany C. Wright is the president of The Resourceful CEO, a company that delivers informational products and services to provide business owners with a de facto member of the executive management team. In addition to helping former clients obtain funding, she has helped companies in various industries significantly increase revenues and improve profitability. She has an MBA from the Wharton School at the University of Pennsylvania in Finance and Entrepreneurial Management.
July 27, 2009 by
Tiffany C. Wright
The thing entrepreneurs and businesses must do when it comes to financing is to take the same creative approach they do when addressing issues in other parts of their business. For example, for a company with minimal funds for a marketing and public relations campaign, guerilla marketing or PR tactics can vaunt the knowledge of the company and the company’s standing among its target audience. Guerilla marketing requires a highly creative approach and a decent amount of effort. Take the same perspective with financing your business.
To get creative, focus on WHAT you need the money for, not the money. Write down your uses of the funds. For example: Employ a general manager – $100,000; Marketing campaign to increase exposure to target customers – $50,000; Deferred maintenance on office and production area – $150,000; Software – $15,000. Then begin to brainstorm ways to get what you want and need. Do NOT focus on the money. Some creative financing options to acquire all of the above are as follows:
- Co-branding -Combine efforts with a company offering a complementary service or product to reach your target market.
- Co-operatives – Pool funds with other business owners.
- Customer deposits or pre-pays
- Employees (Employee Stock Ownership Plans or ESOPs) – Sell the company or a portion of the company to the employees. This can help you raise funds plus engender strong employee loyalty.
- Equity as payment – Obtain management and other highly skilled personnel at below market rate pay by offering an ownership stake in the company either outright or via stock options.
- Economic development grants – These are available in urban and rural areas typically through municipalities that have received federal redevelopment funds.
- Licensing – Instead of providing your service directly, license it to a company or other entity that serves your market. Let them expand your market reach and absorb the cost.
- Self-directed IRAs – Place your money into an IRA that allows you to invest directly in private companies.
- Swaps or bartering – Barter your product or service with that of another company. Bartering exchanges exist that enable you to move beyond a one-to-one exchange.
These are just some ideas to get your creative juices flowing. There are many more options available.