All traders know how important liquidity is to their continued success. It is the lifeblood of every business, and yet many Internet entrepreneurs do not understand how to make it fit into their business plans. You cannot operate a business without money; real cash, ready to be used. Money-making ideas come in all shapes and sizes, but not all will give you cash fast enough, even if you make the sales immediately. Because as you already know, sales does not mean cash.
Whenever you evaluate money-making ideas, there are at least two or three critical components that you should look for to qualify those business opportunities. Whether you operate on the Internet or not, your new business should pass these three tests. Keep in mind, many strong businesses today are not judged by this criteria, but for a new entrepreneur without a large budget, these two things are crucial.
1. Your Business Must Generate Immediate Cash Sales, not Accounts Receivable:
Look at it this way. If you are starting with a budget of $ 200.00 and expect to make a profit in the first 30 days, your business is going to have to generate usable cash in those 30 days. This is not unrealistic, as there are many feasible business models on the Internet that will generate money in one to three days. Accounts Receivable, even from the most trusted debtor, is a huge liquidity killer and not a money-making idea to consider in this business model.
Your business should generate enough sales to replenish your original cash in that short time. This means that your business should pay your money immediately when generating sales, and that money should be able to be transferred to your bank account, be it PayPal, AlertPay, SafePay, or any other bank account immediately. Many affiliate programs do not qualify as a feasible model in this regard because many affiliate managers will not pay you immediately. You usually have to wait 30 days or more, and then you will only receive a check. That is not enough when you need cash quickly.
2. You Should Be Able To Convert Your Money To Usable Cash Immediately:
There is no point in having sales without having access to cash. This means that when you get paid, you should be able to convert those sales to cash within a few days at the most. Many large companies can generate huge cash movements for your business, especially those Network Marketing companies. The downside is that you will have to wait a whole month to get paid and then another two to four weeks for that money to be converted into cash in your bank account. That is not good liquidity. If you are depending on this type of business to put food on the table, you will have serious problems.
Even the great ClickBank does not qualify as a liquidity facilitator in this regard. The reason is simple. They will pay you with a check every two weeks. Where I live, those two weeks turn into four weeks due to mail delays, and then it takes another four weeks for my local bank to make that cash available to me. ClickBank can be part of a great business model, as it is for me, but a poor facilitator for quick cash movements.
Here’s a better scenario. What if you could go into a business that allows you to put your money directly into your bank account on the Internet, and then transfer that money to your local bank whenever you want, with only a 3-5 day delay?
This would provide a better solution for the many people who want to start Internet businesses without a lot of money. The other benefit of using one of these money-making ideas is financial risk reduction. It is not a great financial risk to put $ 100 to $ 250 into a business to test whether or not it works. That’s a much better proposition than investing $ 600 to $ 1000 in a multi-level marketing company for three months before finding out that you can’t make it work.
There you have it. These are two things you should consider when evaluating money making ideas. Find a business that will generate immediate cash in your online bank account. Make sure your money can be transferred to your local bank in a matter of days. It’s easy to check these things out before you start your business, by going to the online processors and reading their frequently asked questions.
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