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Ready to ignite some business inspiration for 2024? Look no further than these top podcasts, books and YouTube channels.

A new year is a great time to discover fresh sources of support and encouragement on your (or your client’s) business journey. Whether you’re looking for help setting new growth goals or staying motivated on your current path, inspirational stories and tips from other successful business professionals can give you a much-needed boost.

If you’re hoping to start 2024 on the right note, here are a few business podcasts, YouTube channels and books that might just give you some innovative ideas and on-demand inspiration.

Podcasts

Masters of Scale
	Looking to grow your business, or help your clients grow theirs? The Masters of Scale podcast, hosted by LinkedIn co-founder Reid Hoffman, focuses on how businesses scale. Hoffman’s guests share the strategies that helped them grow, the setbacks they encountered and the learnings they took from the journey. Episodes also explore topical issues for growing businesses, such as strategies for tackling challenges, ways to build your tolerance for risk, and rapid-response episodes hosted by former editor-in-chief of Fast Company, Bob Safian. Listen here
Mistakes That Made Me
	Hearing tips and advice from other successful entrepreneurs can be useful on the road to achieving your business goals — but it can also be important to know about some of the missteps they’ve made along the way! Eman Ismail, an experienced copywriter, hosts Mistakes That Made Me, where successful business owners share their biggest mistakes on the road to success. Listeners will learn very relatable lessons on pushing through and accepting failure as part of the business journey. Listen here

Books

The Diary of a CEO: The 33 Laws of Business and Life, by Steven Bartlett
	For business owners looking for more of a ‘playbook for success,’ this new book by entrepreneur, UK Dragon’s Den investor and top-rated podcast host Steven Bartlett may be a source of inspiration this year.   Based on Bartlett’s journey and those of the entrepreneurs, entertainers, athletes and other professionals he’s interviewed over the years on his podcast, The Diary of a CEO takes readers through several principles based on experience, psychology and behavioral science, designed to foster excellence and help individuals in “search of building something great.”
Hidden Potential: The Science of Achieving Greater Things, by Adam Grant
	While talents and genetic gifts can take people a long way in sports, education and innovation, author, professor and organizational psychologist, Adam Grant, argues that most people underestimate their ability to improve, learn a range of skills and see exactly how good they can become.   In his new book Hidden Potential, Grant offers a framework that allows anyone to exceed expectations through strategies like embracing discomfort, resisting perfectionism, and effective networking. Through his method, which focuses on character development, anyone can build the skills and design the systems to realize their potential and create opportunities.

YouTube channels

Marie Forleo (MarieTV)
	Entrepreneur and author Marie Forleo’s channel boasts nearly 1,000 videos aimed at helping individuals and business owners “create a business and life” they love. Through interviews with experts, authors and her own tips and advice for achieving success, MarieTV explores topics such as how to handle tough business conversations, how to silence your inner critic, steps to overcome procrastination and more.
Tim Ferriss
	Covering subjects like ‘how to master the difficult art of receiving —and giving — feedback’ and ‘overcoming self-sabotage,’ author and entrepreneur Tim Ferriss’ YouTube channel features videos from his popular podcast (with more than 900 million downloads so far!), where he has interviewed hundreds of top performers in the arts, business and sports on the tactics, tools, and routines they’ve used to achieve success. His channel also includes shorter clips on life lessons, like how to create a better morning routine, and bite-sized YouTube shorts videos, featuring actionable tips.

Whether you prefer to curl up with a good book, listen to a podcast on the go or watch videos at your desk, consider checking out one or two of the names above — it might just give you the momentum you’re looking for this year!

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Interested in discussing ways alternative funding can help you (or your client) achieve new business goals? Contact a Liquid Capital Principal today.

 

For growing businesses, having sufficient working capital is critical to take advantage of new opportunities and overcome challenges. Achieve your growth goals (or help your client reach theirs) with non-dilutive funding options.

Working capital is crucial when you’re in growth mode and looking to fund everything from an expanded payroll to supplies. But if you or your client are searching for financing, it’s clear that not all options are created equal, or best suited for all entrepreneurs — especially if you’re looking to retain full control and ownership of your business.

Non-dilutive funding 101

With dilutive funding, such as equity financing through angel investors or venture capital, business owners give equity investors a percentage stake in company ownership, a share in its future profits and in many cases, a say in decision-making.

On the other hand, non-dilutive funding solutions allow you to obtain the working capital you need while retaining ownership and full decision-making capabilities about your business’s current and future direction.  

Non-dilutive funding can include business loans, crowdfunding, grants, revenue-based financing or venture debt. It can also include alternative funding options like invoice factoring or asset-based lending. Depending on the type of non-dilutive funding, loan/interest payments may be required or there may be conditions on how funds can be used. Some grants, for example, are specifically for environmental projects or employment-related initiatives.

For fans of the long-running television shows Dragons’ Den and Shark Tank, dilutive funding is what you’ll have seen most often — businesses that successfully receive funding usually give up an equity stake in their business in return for a certain amount of money. But it’s not always the case.

In select situations, Dragons and business owners have come to non-dilutive financing arrangements, usually because it was in the best interest for the entrepreneur.

 

One Dragons’ Den hopeful sought $100,000 for a 10% equity stake. Dragon Michele Romanow felt that equity was too high a cost to fund advertising and inventory. She instead offered the entrepreneur a non-dilutive ‘revenue-sharing’ deal — $100,000 for 10% of their revenue, plus a 6% fee, until the company paid back their capital.

 

The benefits of non-dilutive funding

Seeking capital that is non-dilutive, rather than an equity-based solution, can have several advantages for entrepreneurs, including:

 

Retaining control of the business: With a non-dilutive funding option, the lender will have no stake in company decisions or the future direction of the business. This can make it the preferable route for entrepreneurs seeking to follow through on a particular growth strategy without compromising or sacrificing ownership.

 

Avoiding equity dilution: Every time a business raises funds via equity financing, new shares in the company are issued and ownership percentages for existing shareholders are reduced. With non-dilutive funding, you can avoid this issue and maintain the power of your existing equity.

 

Realizing long-term value: With non-dilutive funding options, company owners retain their company’s full value — allowing them to take complete advantage of future growth.

 

Strengthening relationships: Some non-dilutive funding options provide quick access to working capital. When you can ensure your payroll or other accounts payable obligations are met on time, relationships with employees, contractors, and suppliers are strengthened. This can also help you to deliver positive customer service.

 

For tree clearing company Rayzor Edge Tree Service, a non-dilutive funding solution — invoice factoring — allowed owner Ray Bowman to not only realize his vision of expanding into the commercial market, but helped him quickly overcome cash flow challenges resulting from long invoice payment terms. By paying subcontractors in a timely manner, Ray has improved relationships with his industry colleagues, improved client service and found a supportive business partner in his Liquid Capital Principal. Read the story here

When it comes to considering non-dilutive funding options, invoice factoring is a choice that can make sense for many start-ups.

The key characteristics of invoice factoring as a non-dilutive funding option include:

Ownership retention: Invoice factoring does not involve giving up equity ownership in the business. Instead, funds are advanced based on the value and creditworthiness of your accounts receivable.

 

Avoiding debt: Invoice factoring isn’t a loan you’ll have to pay back — instead, the factor will collect invoice payments from your customers and pay you the balance, less applicable fees. The costs associated with factoring are also lower than the cost of capital or returns required by equity investors or venture capital.

 

Improving cash flow: Factoring provides your business with immediate cash flow by converting accounts receivable into liquid funds. This can help companies manage their working capital and cover operational expenses without taking on additional debt or giving up ownership.

 

Better terms for start-ups: With equity financing, companies are usually subject to rigorous legal and business due diligence, as investors want to ensure the company meets its criteria and is a good fit for their investment portfolio. Similarly, traditional lenders often also require companies to meet stringent criteria before loaning funds, emphasizing detailed financial statements, projections, your credit score or collateral. With invoice factoring, the creditworthiness of your customers’ invoices (rather than your credit or annual results) is a main consideration. Invoice factoring may be preferable for start-ups without a long financial history. Seeking working capital through invoice factoring can also help a company drive growth, build credit and become bankable over time.

 

Flexibility: Taking on an equity partner may mean another individual has a say in your company’s decision-making — ideas based on their own values and plans for your business. The funds you receive from invoice factoring come with no set purpose. Whether you choose to use your capital to fund growth, to pay suppliers, cover payroll or invest in new technology, it’s your choice, as long as invoices are paid. The length of time you need to use invoice factoring services is also flexible. Liquid Capital won’t lock you into a long-term contract. If you have months with adequate cash flow where you don’t need to factor your invoices, you can opt out of the process.

 

Quick access to the funds you need: As opposed to equity financing or applying for funding from a traditional lender, which can take months to complete, applications for financing through the sale of your credit-worthy invoices are not subject to lengthy wait times.

 

At Liquid Capital, we offer stress-free invoice factoring services. The approval process takes minimal time — if your business and accounts receivable clients are in good standing, you’ll receive 80% or more of the value of your accounts receivable quickly and securely.

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Interested in discussing ways alternative funding can help your (or your clients’) financial stability? Contact a Liquid Capital Principal today.

 

When your business (or your client’s) needs to increase their working capital, there are options to help accelerate your cash flow.

 

Keeping profits from eroding is a tough proposition in an era of rising interest rates and persistent inflation. For many business owners, the struggle to keep up with the cost of inputs from energy to supplies can often be overwhelming. 

At the same time, healthy working capital is a must for companies seeking to weather tough economic times or follow through with their growth plans.

A recent study found that companies expect to continue facing supply chain issues, rising inflation, and the increasing cost of inputs and employee hiring and retention. In fact, nearly half of the surveyed businesses expect their operating expenses to increase, and 30% expect their profitability to decrease.

Nearly 30% of businesses planned to increase prices to respond to these challenges.  This number climbed to 50% of hospitality and food services businesses.

 

Did you know? According to one survey from late 2022, nearly one-third of companies cited a low cash flow position as a main barrier to achieving their business objectives.

 

To respond to this challenge, some organizations decided to develop new markets, increase sales, reduce expenses or seek alternative financing.

Indeed, rising above financial challenges in this economy — and continuing to meet your goals, pay staff and even grow — means finding a way to free up additional cash flow.

For many companies, this means increasing profit margins or seeking financing. Depending on your growth plans and financial situation, finding the right path will look different for each company.

Adjusting profit margins to unlock capital

Adjusting profit margins is one way businesses can unlock working capital. Often this is done by:

• Increasing prices
• Reducing expenses
• Extending the value of existing customers and relationships

 

Three ways to calculate profit margins Before adjusting your profit margins, it’s important to look at the different ways of measuring profit in a business. These include:
Gross profit margin: Your gross profit margin measures your company’s revenue after subtracting expenses (essentially the cost of goods sold) from your sales.	Gross profit margin = (revenue – cost of goods sold) / revenue
Operating profit margin: Your company’s operating profit margin will show how much revenue your business makes after subtracting the following variable expenses from your net sales:  The cost of goods sold Depreciation, amortization and selling General and administrative expenses like salaries, rent and R&D costs	Operating profit margin = operating profit / net sales
Net profit margin A business’s net profit is what is left after expenses are deducted from total revenue. This is expressed as a percentage – for example, if your net profit margin is 20%, you’re left with 20 cents out of every dollar of revenue.	Net profit margin = net profit / total revenue

What do these calculations reveal?

 Each measure of profit margin tells a different story about your business and where you might be able to make changes that generate results. 

Gross profit margin will provide a window into your company’s efficiency and the relationship between costs and profitability. Operating profit margin gives you a look at the revenue your company generates from its operating activities. Net profit margin will ultimately show how profitable your company is — and help you evaluate its overall financial health.

 

Raising equity — another way forward

While evaluating expenses is a good way to ensure efficiency, continually adjusting margins isn’t the right choice for every business.

As McKinsey explains, even though it may increase profits, excessive cost-cutting can be counterproductive at a certain point. Being too aggressive, such as laying off staff or using lower-quality supplies, can eliminate new sources of growth and may affect areas that previously benefited customers or your brand.

Similarly, raising prices may increase your profit margin per customer, but some customers may not be willing to pay the difference. Finding the right balance between the number of paying customers and the price they’re willing to pay is delicate. 

For example, if 100 customers are paying $1,000, but only 80 customers will pay $1,200, your revenue will be lower even at a higher price. Of course, if you see higher expenses to acquire and service those additional 20 customers, the math may work in your favour. 

If you’ve already calculated the optimal price and minimized expenses appropriately to maximize revenue, further measures to increase profit margins aren’t always possible

Another way to create cash flow is to consider raising equity in your business. Equity financing isn’t a loan you’ll have to repay but rather a way of raising capital for your company. It gives shareholders a percentage ownership of your business and profits. This is often done through venture capital, private equity, angel investors, crowdfunding or an initial public offering.

Raising equity is a popular option for start-up businesses that don’t want to take on debt. A company experiencing significant growth and expansion could be an attractive opportunity for potential investors. 

For organizations with a long-term growth strategy, choosing to forego debt allows you to invest more of your cash flow in the business, rather than making loan payments. The right equity partner can also provide mentorship, advice or networking opportunities from other investors and contacts.

An alternative solution for boosting cash flow

If you don’t want to give up ownership of your company, and you’ve adjusted your margins as much as possible, what can you do if you need to accelerate your cash flow?

You could seek funding from traditional sources, such as a bank, but this strategy is becoming increasingly difficult as financial institutions tighten their lending criteria and interest rates remain unstable.

With alternative funding options, such as invoice factoring and asset-based lending, you can leverage the power of your outstanding invoices and company-owned assets to inject your working capital with a reliable source of cash. You’ll not only access the funds you need quickly, but you also won’t need to give up equity, cut costs or raise prices.

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Discover how Liquid Capital can help you or your client access the working capital needed to achieve greatness. Contact a Liquid Capital Principal today.

 

When the success of your (or your client’s) business depends on complex logistics, these top supply chain trends can help you remain agile and competitive.

A dependable supply chain is critical to seamless operations for companies in sectors like manufacturing, wholesale, retail and even transportation. When it’s working well, you can better control your costs, turn over inventory quicker and increase your speed of delivery to customers.

When disruptions do occur, they can dramatically impact supply chains. The past few years showed us how global events out of businesses’ control can cause severe interruptions in the global supply chain, requiring companies to adapt, pivot and problem-solve.

Although supply chain woes have eased in 2023, with only 10% of businesses in the first quarter saying they expect maintaining inventory levels to be an obstacle over the next three months, supply chain issues are still top of mind in certain industries.

For example, a quarter of businesses in retail and wholesale trade expect maintaining inventory levels to be a challenge in Q1. According to a Q4 survey from the U.S. National Association of Manufacturers, 65% of manufacturing leaders say supply chain disruptions continue to be a business challenge.

For those who want to navigate today’s market successfully, managing your supply chain is vital to mitigating potential risks.

Here are three of the top supply chain trends that can help you or your clients ease bottlenecks and improve cash flow:

 

1. Increase technology investment

One trend that accelerated in 2022 was investing in cloud-based digital transformation, says KPMG. A recent survey shows that some 43% of U.S. businesses planned to build supply chain resilience through automation and robotics.

Companies can continue to automate their supply chain this year by adopting AI and machine-learning technologies to boost analytic capabilities, increase visibility into all parts of the supply chain and enable access to real-time data. Continuing your shift to adopting new technologies will let you anticipate challenges and risk areas, make decisions quickly and connect instantly to your supply chain partners.

2. Evaluate the elements of your supply chain

As recent trends have shown, potential disruptions to the supply chain can include anything from a supplier’s financial health to changing regulations or geopolitical conflict, according to Moody’s Analytics.

With the market recovering from the pandemic, the conflict in Ukraine and transportation issues exposing vulnerabilities in the global supply chain, Canadian and U.S. governments have already taken steps to ‘friend-shore’ strategic supply chain areas to economic partners with shared values. This also involves a move away from areas where the supply chain is unsustainable or uses forced labour.

In a business context, moving parts of your supply chain closer to or within your local jurisdiction (often referred to as near-shoring or re-shoring) can work to reduce risk, minimize disruptions and increase efficiency and flexibility. Part of this may also involve creating a larger, more diverse network of suppliers to increase your supply chain’s resilience.

3. Optimize your working capital

When the supply chain is disrupted, it’s not only your inventory levels and the end customer that feel the effects. Regular payments are often negatively impacted, affecting your cash flow. This can strain your ability to cover your financial obligations and take advantage of opportunities to grow.

 

To see the effect of supply chain disruptions on your cash flow situation, start by looking at your cash conversion cycle (CCC) — the number of days it takes to sell your inventory, minus the days it takes you to pay your suppliers, plus the days you need to collect on your invoices.

 

If supply chain challenges are making your cash conversion cycle longer than you’re normally used to — either because your customers are taking longer to pay invoices or you need more time to settle your accounts payable — consider options to shorten it.

Reducing your payment terms or improving supplier relationships are two ways to do this — but these may not be possible when supply chain conditions are challenging.

Another alternative is to consider taking control of your cash flow through a solution like invoice factoring. When you factor your invoices, your outstanding accounts receivable are quickly and securely converted into cash so that you can maintain a healthy cash flow. 

 

By actively managing the parts of the supply chain within your control — including ensuring you have enough working capital to meet your obligations when unforeseen challenges hit — you’ll be on your way to minimizing disruptions to your business and can move forward with confidence.

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Want to learn more about how invoice factoring can help manage working capital and overcome supply chain challenges? Contact a Liquid Capital Principal today.