-Writing the best thinking-

Sales turnover and net profits may follow a rollercoaster pattern familiar to most business but when the cash flow dries up the game is over. Urgent attention to the management of working capital can provide every business with the cash resources to exploit its potential

Most businesses will experience periods of lower sales and times when losses may be incurred as expenses exceed sales income. The situation is recoverable by producing higher sales and reducing costs and expenses. A business that runs out of cash resources is dead in the water.

Debtors and sales income management

The objective is to obtain payment from customers as fast as possible improving cash flow and minimising the risk of bad debts and not being paid at all.

Payment terms offered to customers should be clearly stated and fixed as standard accounting figures according to the amount of funding the business is prepared to offer its clients. Because that is exactly what credit terms to customers is, free cash funding in exchange for eventual sales income.

Consideration should be given to using a cash discount system to encourage sales invoices to be paid faster. In some businesses it would be appropriate to obtain up front deposits and scheduled payments. Review this practise to obtain a greater proportion of payments faster to improve liquidity.

New customers should be subjected to a strict credit check. All new customers where credit check details are not available should be invoiced by the accounting function on a pro forma basis. Any businesses who fail to meet the highest credit score required should remain on a pro forma invoice basis.

The credit control function needs consideration from the first step of issuing customers with a sales invoice, producing customer statements of the debt owed and a set procedure of credit control letters and telephone follow ups that actually achieve the end result of getting the cash in. An essential process in the credit control procedure would be to ensure the accountant or bookkeeper always issues sales invoices and customer statements promptly.

Incorporate into the terms of trade a set of rules to invoke interest payments for late payment and late payment debt recovery costs. In the UK the Late Payment of Commercial Debts (Interest) Act 1998 sets out the statutory rights of business to claim interest and costs.

Consider the possibility of factoring sales invoices due from debtors either by selling the sales invoices to a third party or raising cash on the value of those invoices pending payment. Factoring has the disadvantage of often not being cheap but does have the advantage of generating a regular stream of cash.

Bad debts have a double impact on any business and all possible steps should be taken to reduce the risk. A bad debt not only uses valuable resources in chasing the debt with the negative impact on cash flow and liquidity but also is a straight loss to the net profit and a strong indicator that the accounting function is failing the business.

Creditors and expenditure management

The objective is to extend the time allowed for payment of expenses the business incurs.

Consider the frequency of all payments made to suppliers. Small business have alternative payment terms available for the payment of taxes. In the UK value added tax can be paid quarterly or monthly, vat cash accounting can ease the tax liability due in critical periods and paye payments can be paid quarterly rather than monthly for smaller businesses.

Every opportunity should be considered to improve liquidity and that would include the frequency which employee salaries and wages are paid. A sensitive area since it involves the most important people to the business success but adopting a payment period to coincide with the receipt of cash from customers may in some circumstances balance liquidity.

General creditors are a major area to be addressed in terms of both the amount of credit received from suppliers and the time required to pay those creditor accounts. Larger orders on extended payments terms creates a risk area should the goods not be used but can greatly assist cash flow as the business is effectively borrowing free cash from its suppliers.

Stock levels are crucial to financial management of the creditor total. High stock levels use valuable working capital which is offset in part by the level of creditors. Higher levels of stock financed by free credit from creditors lowers the cash flow requirements on the other parts of the business.

Lately there has been a lot of discussion on how to make tons of money with Google Adsense. In fact, many people are making the claim that Adsense sites can earn a higher revenue then an affiliate-marketing site.

So that brings us to an important question: Which is a better online business - Affiliate-Marketing sites or Google Adsense sites? 

Let's explore each one and then find out which online business is better option:


Google Adsense

How do you like the idea of earning m*ney without dealing with customers or answering emails. This is possible when you run a Google Adsense site. With Adsense sites, you can have a virtual passive-income that requires little maintaining. But is this the best option for an online business?

Here are the positives of Google Adsense sites:

· They are perfect for people who run information sites that have no related affiliate product

· You can set it and leave it. With Google Adsense, you can create a content page, and there is little need to update the content. 


· Adsense sites are easy to scale. Since they require little upkeep, you can easily create multiple websites that each make a nice income.

Here are the negatives of Google Adsense sites:

· They are not a great long term solution. Instead of getting your visitors to subscribe to a mailing list, you are focusing on getting people to click on ads. Real online businesses concentrate on building assets that can use for long-term growth.

· These sites are dependent on search engines. Most Google Adsense sites make the mistake of depending on search engines for the majority of their traffic. If the SE algorithms change then your income might drop significantly.



Affiliate Marketing

Being an affiliate marketer is great for those who want build a theme site. With this type of business, you can easily create web pages around a topic and get people to buy products through your products. If done correctly, you can easily build a loyal following that will help you make money for years to come. 

But can affiliate marketing make you more money then Google Adsense?

Here are the positives of affiliate marketing:

· A great advantage of affiliate-marketing is that you can build a long term business that will bring in a revenue stream for years.

· With affiliate-marketers you need to focus on building an email list. This list is a major asset of your business. Every time you have an offer, you can go to your list and increase your profits..

· Unlike Google Adsense sites, which only concentrates on high paying keywords, an affiliate marketing site can be centered on a topic that you have an interest in. 


Here are the negatives of affiliate marketing:

· You have to learn how to write persuasively and get people to purchase the product that you are recommending. For many people this is a difficult skill to learn.

· Each affiliate marketing site requires a lot of effort. You must spend a lot of time writing product reviews, building your email list and creating web content.


So which is better: Affiliate marketing or Google Adsense?

The answer is that both are great solutions for an online business. Instead of choosing one over the other, you should create websites that can take advantage of both.

Here is how you can do this:


1) Create a content site on a topic that you are interest in, while paying a good amount per Adsense click.

2) Integrate your Adsense into the menu bars and the top of your web content.

3) Add web pages for affiliate-products and your opt-in email list. But, make sure that you leave out the Adsense blocks on these pages. This way you are ensuring that you are building your long-term assets.

4) Create optimized web page articles that focus on a specific keyword phrase. Place your Google Adsense in these blocks.

5) Provide your email list with good content and product recommendations. Once in awhile, email your list and provide a link to some of your web articles. That way, you can earn a little bit of m*ney from your subscribers while giving them good content.

By focusing on both affiliate products and Google Adsense, you will be building both short-term and long-term profits.

If you want to get more traffic to your website, here are 5 invaluable tips and tactics to transform the number of visitors you get each day. 4 of them are absolutely FREE, whilst the 5th. involves only a small outlay for potentially enormous profits.


FOUR NO COST TACTICS:

1. Articles - 

One of the easiest ways to get increased website traffic is through the promotion of articles. Write a series of short pieces, of anything from 350 to 750 words of highly specific text to the product or service you want to promote. Include a byline containing your name and credentials, along with a link back to your site. You may want to supply a link to a special page where visitors can get more information, rather than a direct link to a product or service being promoted. Make sure you read the terms and conditions of each article directory you use to ensure you comply. 

2. News Releases -

A great way to draw attention to your website is through online (and offline) Press Releases. Put together an 'event' in order to target the launch of your website, or a new product, or the re-branding of an existing product. The text should be specific to the occasion and aimed at conveying information to potential prospects, rather than a direct sales pitch. 

3. Newsletters and Ezines -

Ask most established business owners where most customers come from, and they will all tell you 'word of mouth'. If you provide good quality products, lots of information about them BEFORE your customers make a purchase, and you have a generous customer service policy, your customers will want to buy more products from you. And they will recommend you to others. The result: increased website traffic. A regular newsletter or ezine is a perfect way to provide your website visitors with general information about your niche and specific information about your products and services. 

4. Blogging - 

Another great way to 'connect' with your customers and prospects is to set up a blog. This is so easy to do and, if you do it properly, can produce a huge amount of additional interest in your website, resulting in still more increased website traffic. As with all the other tactics described in this article, your aim is not to do a sales pitch, but to provide information about your products and your market in general. Include links back to your website.

ONE LOW COST TACTIC: 

1. Start An Affiliate Program -

Whether you are looking for a means to market a new product, or you have well established products and want to increase sales, a powerful way to drive increased website traffic to your sales page is to set up an affiliate program. This can transform the performance of any web based business - but it has to be done properly, e.g. generous commissions and a good support system for your affiliates. This can mean the difference between a handful of affiliates generating a few extra visitors, and an army of hungry affiliates spreading the word and transforming your sales figures. 

An good affiliate program may cost a little to set up, but the potential rewards can be huge. 

All these strategies will take time to achieve results. But they are all extremely effective in producing increased website traffic, if done correctly.

Internet Marketing Plan for Internet Home Businesses

Every time I try and tell people about the potential of Internet marketing, the reaction I get makes me wonder if I am going 'batty'. 

I am speaking the Queen's English, yet, it is as if I am speaking in a foreign tongue.

My audience? The well read educated kind, of course, yet I cannot help feel I am fighting a losing battle talking to the illiterate uninformed.

The most frustrating element of it all is that the huge potential of 'Internet Home Businesses' is going untapped.

There will never be enough 'Internet Home Businesses', nor will the World Wide Web get saturated with 'Internet Home Businesses'.

I have done my research , and I can prove beyond all realms of doubt that the ordinary man, yes the ordinary person, who might say he has trouble sending an email, can become a successful Internet Marketer, and have a few successful 'Internet Home Businesses'

All that is needed is a working 'Internet Marketing Plan'

It does not cost a ton of money. If done the proper way, Internet Marketing can be a success and anyone can have a successful 'Internet Home Business' with as little an investment that one would spend on a yearly vacation on a shoe string budget.

Like every business it needs the proper attributes of dedication and perseverance.

I am a successful Internet Marketer. with a few 'Internet Home Businesses'

• I sell other people's products. • I do not have a brick and mortar land store, nor do • I carry an inventory, yet • I sell physical goods and • I sell digital products, 

and am making a living from it.

I have my own digital products, and to prove a point, I am putting my money where my mouth is, and giving away FREE, the first CD of three of my products.

The first product is called:

• 'FAST CASH FOR NEWBIES'

It is a step by step comprehensive course on Affiliate Marketing.

The second product is called:

• 'BIG LIST BUCKS'

this is a tried and tested approach to list building.

The third product is called:

• 'SOCIAL TRAFFIC EXPLOSION'

this is an exercise in understanding the potential of the social networks as a source of targeted traffic.

These three products form the master plan to successful Internet Marketing and 'Internet Home Businesses', and I am giving away the first CD of each product FREE, to help you get an understanding of Internet Marketing, and prepare you towards creating your very own Internet Marketing Plan.

Go to my site www.dcostandcosta.com and enter your name and email address and you have instant access to these FREE videos.

To your success.