Chapter 14





Chapter 14

The author offers advice about things concerning credit, explaining how people can get money for their businesses. He notes that it is important for people to have a credit base, since this will assist them when they want to get credit from the bank. The author has established a process, which will ensure that people can increase their credit resource. The process includes ensuring that the business finances are in order by recording the financial statements and ledgers. Business owners should have all the information concerning their business finances, since this will help them in managing their business by being in control. People in businesses should see bankers as partners as partners who will help them in growing their businesses. The authors has outlined some of the important things that people should consider when they are selecting the bank they are going to use for their business. He has reiterated the importance of having a credible financial advisor, who has the same vision for the business as the owner does. The author advices consultants about the procedure they should use, noting that there are obvious advantages of collecting the receivables when they are beginning the work instead of collecting the receivables once the work is completed. The author concludes the chapter by highlighting twelve techniques that people can use to manage their expenses and ensure that they grow their funds. The techniques include maximizing the bills on credit card and business accounts. He notes that contrary to popular belief, it is better for consulting to pay for things on credit instead of cash since this will help them in building a credit base. People should ensure that they pay all the vendors on time. An expense budget is necessary since it will help in calculating the average expenses, which will in turn assist the person in forecasting and managing expenses. Other techniques include using travel agents, paying bills at single settings, buying as an option to leasing or renting, looking for the best deals, and using the envelope approach.

Can I have a retainer arrangement and also charge for projects concurrently in the same account?

Yes, you can. This is because many clients often change their minds concerning the kind of service they want. Sometimes, a client can opt for retainer services yet he or she will call you when the need arises. In other cases, the client will add the work that he or she had initially agreed on, meaning that you will have to take on additional tasks. In this case, a consultant can charge for the additional projects, although he or she might have already agreed on the retainer fees. A consultant has to be flexible. Consultants should make their clients realize that the project might require additional requirements, which had not been foreseen. Although consultants on retainer agreement can charge for the projects, they should ensure that their clients agree to do this, and that they deliver.

Is it wise to invest in certificates of deposits or bonds that deliver a higher return but require minimum investment periods?

I would consider investing in the certificates of deposits or bonds because of their low risks. The main thing to remember is that one cannot withdraw the money before the term ends. This means that they are not a wise option if you will need to use the money in the near future. Certificate of deposits have low returns, and I think that you should take advantage of the high returns when you can. Certificate of deposits and bonds are usually guaranteed and you will not loose money once you decide to invest in them. You can choose to reinvest your money instead of withdrawing it once the term ends. However, this means that you will be taxed for the money that has been reinvested. Weigh all the benefits and risks before deciding to invest in CDs or bonds. Consider other investment options such as mutual funds, which can be an alternative to the CDs, before making your decision.


Use the order calculator below and get started! Contact our live support team for any assistance or inquiry.