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7 Reasons Why Your Service Business Isn't Growing

Posted: 06 Mar 2020 01:00 PM PST

You've hustled to grow your business to six figures, possibly even seven figures, and you're working 50-, 60-, even 80-hour workweeks, stuck in the day-to-day weeds doing whatever it takes to push forward. 

At some point, you're wondering when things start getting easier and how to get there.

You can build a service-based business to multiple six figures through grit and determination, but it can seem impossible to reach seven figures (and continue to grow without burning out).

From helping dozens of businesses double their revenue in 90 days at 2X, I've seen enough to tell you the common mistakes that entrepreneurs make and how to avoid them. 

Here are the top seven challenges service-based business owners face and how to overcome them that I share in my new book, From 6 to 7 Figures.

1. You (the CEO/founder) are the bottleneck

Are you the primary person making the day-to-day decisions, giving approvals, making the sales calls, responding to support emails and so on?

If you want to build a business that gives you time freedom, money and growth, then you need to remove yourself as much as possible from the day-to-day tasks. And specifically for most service-based businesses, that means in fulfillment. 

Otherwise, your business will never scale beyond yourself and will always be limited by how much time and energy you put in every day. This is the type of mistake that traps entrepreneurs into the 60-80 hour workweek "hamster wheel."

To overcome this, you need to either eliminate, systemize or delegate these tasks so that it no longer requires your attention to be resolved.

2. You lack cash flow

Business growth requires an investment in people, inventory, ideas, projects, and all of this requires cash.

The bad news is, so many service-based businesses aren't nearly as profitable as they think! With scope creep, bad hires, not optimizing expenses and the up-and-down variability of income, most entrepreneurs struggle to ever get ahead financially. 

If you want to grow at scale, you need to pay attention and focus on growing cash flow. What I recommend is to review your top financial numbers every week. You can do this by yourself or with the top executives and partners on your team.

Some of the key metrics I review weekly include:

  • The cash balance in all business accounts
  • Forecasted revenue for this month
  • Open A/R (accounts receivable – money owed to us)
  • Total revenue received this week 

Knowing your numbers allows you to make strategic decisions, grow your cash flow and invest that back into your business.

3. You lack systems

When you're starting out or still growing at the six-figure level, you can get away with not having systems, but to scale to seven figures and beyond, you absolutely need to have systems in your business. Systems allow you to:

  • Get more done, more consistently and efficiently
  • Reduce mistakes and avoid issues
  • Cut costs and increase profits
  • Delegate more effectively

The good news is: that one, you're already doing all of the work. Now you just have to turn what you're doing into a process, and, two, you don't have to create all the systems by yourself. Start having your employees document the processes for the tasks that they do as well. 

This will allow you to standardize everything, delegate more effectively and set your business up to grow without having to constantly muscle it. 

  1. You don't have an irresistible offer Most entrepreneurs are too bland with their messaging and positioning. They are too similar to other offerings, and, as a result, get lost in the sea of competition.

To take your service-based business to new heights, you need an irresistible offer that makes it a no-brainer for your ideal prospects to work with you.

A few elements include:

  1. Pain: You understand your ideal customer's pains and challenges, and communicate these so they see that you understand them and can address these issues.
  2. Value: The perceived value and outcomes of your service is substantially higher than the price, making your offer a no-brainer for what they get.
  3. Differentiated positioning: You have strategic positioning for your company and offer showing to your ideal target audience that you are different and substantially better than any alternative.
  4. Social proof: You have the social proof, examples, and testimonials to have others show your value and benefits (instead of just you).

Improve your core offer with each one of these four, and it'll make a profound impact on your sales conversions!

5. You're stuck in the weeds

If you're stuck working "in" your business, being pulled in a bunch of directions, you won't be able to focus on growth! 

And as CEO, growth is a key part of your role. Task by task, systemize and delegate so that you can free up your precious time to take your company from six to seven figures. 

At 2X, we teach the XDS system to help executives remove low-level tasks from their plate:

  • X: Cut out 
  • D: Delegate
  • S: Systemize

Implementing this methodology will help you free your time and focus on high-level, strategic activities that drive your company forward.

6. You aren't separating personal and business expenses

This is a mistake that gets a lot of business owners in trouble. 

When personal and business expenses mix, it's hard to know exactly what's coming in and what's going out, which makes it very difficult to plan ahead to grow your business.

Separating your finances will make it much easier to do budgeting, accounting and planning. And, most importantly, doing this protects your personal funds from the worst-case scenario if your business goes south.

Create a business savings, checking and credit card account and have incoming revenue go directly to your those accounts. Pay yourself a salary, and create a budget and plan for how much of the profits to invest back into the business.

If you haven't done so already, get this handled today. It's simply too important and too risky not to.

7. You have too many offers

It might seem logical to create multiple, separate offerings to attract more clients, but it's the exact opposite of what you should be doing. 

With multiple offers come multiple fulfillment processes and systems. Essentially, you're creating two (or more) businesses at the same time. 

Instead, what you should do is hone in on one offer, and keep improving on it over time. Keeping it simple and staying focused is what will help you scale.

To summarize

As a business owner, it's easy to rely on the same habits, routines and mindset that helped you get to where you are today.

In the beginning, it can be necessary to hustle and grind your way to six figures. Those long workweeks are needed to put out fires, especially when things don't go 100% according to plan. But that's precisely what's stopping you from getting to the seven-figure level.

After getting to a certain point in your business, you need to shift from the operator mindset and step into the business owner role. There's a huge difference between spending a majority of your time on executive-level activities and simply making sure the gears keep turning on time.

So stop having your business built around you, start focusing on cash flow, systemize your operations, improve your core offering, and get free from the weeds. You'll soon be on the fast track to seven figures and beyond. 

13 Things I’ve Learned in 13 Years as a Business Owner

Posted: 06 Mar 2020 12:15 PM PST

Thirteen years ago this month, my brother and I launched an experimental project that quickly evolved into a full-fledged remote company. It's been an extraordinary adventure, and as entrepreneurs who started with little business experience and no funding, we never imagined our business would grow at the rate it did. In a few short years, we learned to navigate the expectations, benefits and sacrifices attached to being a business leader.

While the lessons we've learned during the last 13 years are limitless, here are the 13 that stand out most.

1. Write down your whys.

Starting a business requires a lot of hard work, time, and energy, and with that comes both highs and lows, excitement and exhaustion. Writing down the reasons you began your business – and displaying them in your office or workspace – can help you stay on track with your original goals and motivate you to keep pushing forward on those tough days. 

2. Network with others from the beginning.

It's easy to put yourself inside a vacuum, where it's only you working to get your business up and running, day-in and day-out. But as time goes on, you'll find that kind of isolation isn't sustainable for real growth. There's a lot you can learn from other business owners, so build networking with other entrepreneurs, either online or in your local community, into your day-to-day schedule from the start.

By incorporating a few emails, a phone or video chat, or even a local meet-up with other business owners into your day, you'll get the chance to learn from experienced entrepreneurs on what tools and ideas worked best, and create valuable connections you can team up with or lean on moving forward.

3. Document everything.

There are so many decisions that need to be made when running a business, it can be hard to remember all the changes that have been made and the reasons behind them. Instead of trying to recall your own thought process months or years down the line, keep a meticulous log of what changes you've made in various areas of the business, similar to a developer keeping a "changelog" of their code. Document key changes and decisions you've made, including your reasoning behind them. This "business journaling" can also help spur innovation and creativity when you look back on past projects.

4. Choose work-life integration over work-life balance.

It's nearly impossible to maintain a perfect balance between your work and personal life, and attempts to do so are often accompanied by guilt over not giving more attention to one area or another. Eliminate some of this guilt by practicing work-life integration over work-life balance; that is, blending your work, personal interests, and relationships in a way that recognizes that the time required for each will ebb and flow. As a business owner especially, there will be times when you can't just clock out and go home; you're going to have to pull some late nights every once in a while. 

During seasons when my business has called for more of my time, taking a more holistic approach has helped me think of owning a business as a family affair. I'm grateful to have a supportive partner, and I try to include him and my kids in my work by asking for their ideas and opinions. While I know the balance will never be equally 50-50, business ownership puts me in control of my time, allowing me to be there for my friends and family when I need to be.

5. Hire experts.

There are some areas of your business that you simply can't afford to mess up on – applying the trial-and-error method when you don't fully understand that area of your business can cost a lot of time and money to fix later. 

Personal experience has taught me to do my research in areas like accounting and legal requirements, and to complement my knowledge with that of a licensed professional. To this day, each time we've enlisted the help of a consultant, the information gleaned was valuable and enabled us to make decisions to improve our business process.

6. Prioritize downtime.

I'm 13 years into business ownership, and there is still always something to be done – a new idea to try, a service to optimize, a partnership to create, an email to answer. It's exciting to have creative autonomy over something and to be able to implement different business development techniques regularly, but it can quickly become time-consuming. 

Don't fool yourself into thinking you'll "take a break when…" You'll find yourself working all hours of the day and night and still having a bottomless to-do list. Instead, schedule days off, and take them. Day to day, set a general routine for when your workday will end, and stick to it. When you prioritize and follow through on taking downtime, you'll be refreshed and function better, and so will your business.

7. Provide your team with regular feedback.

Don't expect your employees to be able to read your mind and know what you want them to prioritize all the time. Regular meetings and check-ins can help make sure projects are completed on time and in the way you imagined. For remote teams, this is especially important. Without regular communication, work that is accomplished can be overlooked, and if they're working on a project that isn't at the top of your priority list, your employees may feel unappreciated, or worse, that you think they aren't working.

To mitigate this issue, update or reiterate your expectations regularly, and make sure your team members have a chance to ask questions and get feedback on what you like and what they can improve upon.

8. Let your team know how their work has helped the business grow.

People value their time and hard work, and when your team can see their "daily grind" is contributing to the success of the business, it can provide a great morale booster. Don't be afraid to let your employees know how much the business has grown and how their daily efforts directly impact the business. An annual company newsletter is a great time to share this information, but you can also give individual updates during employee reviews.

9. Listen to your customers.

Customer feedback is one of your most valuable resources as a business owner. Happy customers leave great reviews, and word-of-mouth is still the best form of advertising, especially online. But feedback from unhappy customers can also be extremely valuable in terms of identifying how to improve your service or product. 

Our company has implemented a final email upon cancellation with a link that allows our job seekers to send us detailed feedback on their experiences. We have also made it a point to be very responsive to all customer emails and requests for information we receive, no matter how small of a matter. This helps keep an open line of communication between us and our customers. 

It's also important to us to let our customers know we've heard their feedback. Make it visible to your customers either through an email announcement or another form of outreach when you make a change that was requested, specifically based on customer communication. 

10. Base business development decisions on data, not feelings.

As a business owner, it's easy to become emotionally invested in your company; after all, you've likely spent countless sleepless nights building it to what it is today. But even when it's difficult, in most cases, it's best to rely on data rather than your own emotions when making crucial business development decisions or implementing changes.

For example, it can feel like a crushing blow when customers don't share your enthusiasm for a particular new service, product, or feature. Avoid running into this problem by implementing testing, such as the A/B method, to help you get a clear, numbers-based view of what changes and features customers are using and purchasing. This will tell you what is valuable, without your emotions getting in the way.

11. Make exercise a routine.

This advice may sound strange coming from a business owner, but it's become clear to me over the years that working out can help melt away some of the stress that comes with running a company. When I have a regular exercise routine and stick to it, I am more productive at work, more focused on the tasks at hand, and more excited and open to new opportunities. Even a brisk, 20-minute walk in the afternoon can do a lot to get my creative juices flowing and keep me going throughout the day.

12. Employ ergonomics and healthy office habits.

With most business-related work being done on the computer nowadays, having a workspace that is ergonomic and supports good health is essential, and can reduce stress and save you money down the line. Years of sitting with bad posture or staring at a screen without computer glasses can take their toll on the body, and medical interventions to correct these problems can be painful and costly. Designing personalized ergonomic workspaces helps prevent that.

I also like to keep a supply of healthy snacks that aren't carb-based at my desk. This helps curb mindless eating throughout the day and reduce that afternoon slump. I also house indoor plants and items like a salt lamp and positive quote-of-the-day calendar in my workspace to help ease stress and boost creativity.

13. Enjoy the ride! 

Running a business, whether you're an owner or a manager, is challenging work. Offset the intense demands of the job by intentionally creating more fun, light-hearted moments with your colleagues, whether that's just chatting for a few minutes before meetings or planning regular get-togethers and holiday events.

Remember, your employees have interests and lives outside of work. Investing time into developing a personal relationship with your staff members will help them feel like they're part of a team – and having some fun at work is never a bad thing.

Final thoughts

The last 13 years have been as much a learning experience as they have been a rewarding one. My brother and I never imagined our small, family business would grow to what it has today, but being able to help job seekers while providing real remote jobs to our team and supporting our families has been nothing short of a dream come true.

Why Your Business Should Switch to Cloud PBX

Posted: 06 Mar 2020 11:00 AM PST

Business revolves around your power to communicate fast, effectively, and efficiently. For you to be able to do this and ultimately have a phone solution for your business, a cloud PBX (private branch exchange) system is what you need. 

Cloud PBX is growing into one of the most popular telephony systems on the market and any business that really wants to stay competitive must go cloud-PBX. 

Based on the Rightscale's 2018 State of the Cloud Survey, it was discovered that 81 % of enterprises already have a multi-cloud strategy in place, this stemmed from the fact that clouding computing went mainstream in 2018. The survey also discovered that 96 % of organizations use it in one way or another. 

Also, the Statista reports that In 2018, approximately 3.6 billion internet users were projected to access cloud computing services, up from 2.4 billion users in 2013. Since cloud PBX is based on cloud computing technology, this colossal migration by enterprises to cloud-based technology is a clear call-to-action you must heed to and a pointer to you that it makes a lot of business sense.

The expression "cloud" probably correlates to the representations of clouds used by its program developers to express the concept of the Internet. The symbol was used to signify the division between the liabilities of the service provider company and the responsibilities of the client.

Cloud technology means that your business can access the data and services of the cloud from any of your devices connected to the Internet. Hence, if you have a cloud PBX provider, you will be able to use all the standard PBX features without having to resort to an actual PBX in your home or office.

The essence of setting up your business should be all about satisfying your customer or client and making a return on your investment. In order to achieve this, you must factor in and prioritize all the processes and efficiencies that are necessary to make things run smoothly and reach the endgame.

This becomes more relevant as technology keeps on advancing and new innovations are flooding the marketing landscape on a regular basis. Any attempt to stick to your old and probably antiquated ideas can be harmful to your business and may even cost you your fair share of the market.

The most potent means of communication within and outside any business setup is the telephone. It's quick, fast, prompt, effective, efficient and in real time. 

The question, however, is what type of telephone system are you using for your business? Is it a cloud PBX? If it's not, you must switch to cloud PBX.

Why cloud PBX?

A private branch exchange (cloud PBX) which is also known as an Internet phone system is based on a provider who has the responsibility of housing the IP-PBX as well as managing the technology needed to make sure that the services to the phone system are made available. Usually, you plug the desk sets into a router and this ensures that your calls, signaling, and devices are handled by an IP-PBX server at the provider's location. 

The two basic ways of charging by the provider of cloud PBX could be on a monthly basis that includes a minute package and possibly certain specialties or a per-minute calling cost. Whichever of the two options you want to go for depends on the rates. 

Inasmuch as you are able to determine the minutes you spend on the phone in a month, you can easily make comparisons to determine which package is best for your organization. If you want extended features, that means you have to pay more.

On-premises, on the other hand, is also known as an IP-PBX phone system. It is not much different from the traditional PBX system that resides at a location, such as a computer equipment room or phone closet. 

What you may consider the difference between them is the technological advancement that is involved in IP routing. You will have to send signals through an IP phone to the IP-PBX server using a LAN. 

Calls may have to go through a traditional phone company as well as voice over the Internet (VoIP) using SIP trunking. You make use of gateway cards to connect the system to the traditional phone company provider. 

The cumbersomeness of on-premise is definitely the reason why a study revealed that 50% of IT leaders have stopped using on-premise communications tools in 2018, however, this is expected to increase to 90% by 2021.

How cloud PBX works

All cloud technologies are reliant on the Internet. For your cloud PBX to work, it must be connected to your IP, or internet phone, for its internet connection. 

It is, therefore, necessary that you have a VoIP or other IP system in place in your office in order to use a cloud PBX. There are a lot of VoIP service providers who will gladly include their PBX options at little or no extra charge.

Your cloud PBX can be accessed with a personalized account from any equipment that can run the cloud PBX's interface software. This implies that you will be able to access your cloud PBX from even remote areas inasmuch as it has internet or device that you have accredited for use with your system. 

What you simply need to do is to log in with a password, means of authentication, or answer a security question from that device. The multiple devices are able to communicate with each other through middleware, a software that allows your cloud to have various means of access.

When you use your office phone and cloud PBX, you have greater mobility and freedom. Even when you are out of the office, you don't have to miss your calls since you can stay connected through your cloud PBX.

Your cloud PBX service provider stores and manages all the data that you want your cloud PBX to hold. This ensures that your calls are routed to their recipients over the Internet by the service provider. 

Your service provider is also able to back up all the useful information that you want it to store in case of a loss of data especially when your computer packs up. The ability to replicate data in this form is known as "redundancy."

5 benefits of cloud PBX to your business

You will not want to sink in resources into a venture that will eventually not yield dividends for your organization, it's, therefore, necessary you consider these five benefits of cloud PBX before switching from either the traditional phoning system or on-premise PBX.

Ability to scale, improve customer service and save cost 

Probably, the most important benefit you will derive from a cloud PBX  system is its low cost. A cloud PBX comes as a service, therefore, you don't need to spend any extra cash to purchase any new form of physical equipment. 

If you, however, deem it necessary, you can purchase VoIP-enabled desktop phones, alternatively, you can have your system go through mobile phones. Cloud PBX systems can offer even more value by providing near-infinite scalability and lower costs, breaking free of the constraints of on-premises which means that at all times, you have precisely the capacity you need. 

If your business experiences a sudden growth, you can quickly provision PBX services for each new employee. Along the same line, you can de-commission them when people leave. 

If you have an unexpected upsurge in inbound calls, probably as a result of a successful marketing campaign, you don't need to fret about it, the cloud can take care of it. And everything's far more manageable. 

You can set up and scale down services for employees instantly, via user-friendly web interfaces. You pay only for what you use – as a simple, monthly, per-user subscription – and can see your billing info at any time.

This also enhances your customer service since you won't have to source for funds to buy and install any new equipment when you experience an upsurge in your business, all you need is for the employees you must have onboarded to just carry on from what you have on the ground.

Finally, as well as no bulky hardware or infrastructure block sums, your overall costs will be lower since you won't be paying for installation and maintenance. Cloud PBX providers are able to keep prices down because they buy resources in bulk, at relatively low rates, and also run their platforms more cost-efficiently.

Outstanding characteristics

There are ample benefits derivable from cloud-based PBX systems due to its outstanding characteristics. The global trend is to shift from a traditional working environment and focus more on the ability to be flexible. 

It has, therefore, become germane for large businesses to prioritize the ability to communicate in real-time. The availability of the internet has made it possible for you to conduct your business through your computer or even smartphone with cloud PBX systems. 

All the employees on your payroll can also go ahead to personalize their phone settings to whatever is suitable and comfortable for them. They will have the ability to channel all their calls to their phones, computer, and even their mobile phones as the case may be.

All the essential ingredients you require to effectively run your modern-day business such as texting, voicemail with transcription, call recording, and integration with vendor services, abound on cloud PBX. There is no particular order in which a cloud PBX must come with features, it's your responsibility as the user to know what you want and then ask your vendor for it.

Sometimes, you may even have to purchase extra add-ons to make up for what your system lacks.

Improved collaboration and productivity 

Business just got better. You can do a lot much more with a cloud PBX than with an on-premises PBX. There is a great opportunity to improve internal collaboration and productivity.

As everybody will be on the same page with cloud PBX, there is ample opportunity for understanding and harmony which will eventually translate to greater yields and greater ROI.

Powerful communication tools

Before venturing into cloud technology, modern PBXs had a lot of communications tools, like voicemail, call groups, and conference calling among others. Cloud PBXs have, however, taken all these to an entirely different dimension, they now have features such as: 

  • Presence, so you always know when colleagues are available
  • Audio and video calling and conferencing, enhancing in-depth communications
  • Real-time messaging and chat, prompt responsiveness
  • Unified messaging, so you can see all your e-mail, text- and voice-messages together
  • Means of easily accessing the global corporate phone directories, eliminating inconveniences, and saving time
  • Globally availability of single extension dialing 

Dependable service

Undoubtedly, you need phone communication to efficiently carry out your day-to-day business transactions, it's, therefore, compulsory that you must have a dependable means of communication. This is where cloud PBX systems are heads and shoulders above the traditional public switched telephone network lines, which are not hosted on the internet and also don't have backup methods in place to fall on.

Businesses are moving away from the cumbersome copper cabling of the traditional phone. They are shifting focus away from vulnerabilities to natural disasters and the cost of replacement occasioned by acts of vandalism and so, should you. 

Why must you be bogged down by unnecessary wears and tears that will eventually lead to unwarranted downtimes? With cloud PBX, all of your information will be in the cloud and you may only have to suffer little to no stoppage or time out if an issue develops.

Conclusion

Since the usage of cloud PBX is expected to hit 90% by 2021, it definitely means that businesses are yielding returns on revenue from it and you should follow suit. However, you must note that most technological advancements have one or two shortcomings and that may also be the case for cloud PBX. 

Two areas that you must focus seriously on before subscribing to any service provider are security and the availability of the internet. Where you suffer from poor internet connections or you are not able to properly secure your connection, cloud PBX may be frustrating. 

You need strong connections to function properly and as it is based on the internet, cybercriminals may capitalize on that to wreak havoc on your business. Any vendor you want to enter into any form of cloud-PBX based agreement with must show you the proof of having both physical and network security, session initiation protocol endpoint security, toll fraud tracking and identification, and a customized monitoring system that gives you a signal as to any questionable conduct.

If you are able to ascertain these, you don't have any reason not to switch to cloud PBX inasmuch as you have the mindset of enhancing competitive advantage for your business.

How Partnerships Can Help Your Business Grow

Posted: 06 Mar 2020 09:00 AM PST

  • Partnerships are an essential part of taking your business to new heights.
  • Jersey Natural Farm leverages partnerships to expand its mission of using regenerative, organic farming to promote the health and wellness of its community.
  • By working with healthcare professionals, Jersey Natural Farm hopes to reach new audiences to spread the word about building a healthier planet and society through diet and lifestyle.

Everybody has goals, and so does every business. Whether your business is driven by a mission, a strategy or an idea, it can be hard (or even impossible) to go it alone. Effective, strategic partnerships are a critical element of running a business successfully.

To learn how to creatively establish and navigate partnerships, it can be useful to examine other companies doing just that. Jersey Natural Farm is one example of a company relying on like-minded partners that buy into its mission and philosophy to extend its impact well beyond the confines of its own business model.

A business with a mission

Source: Jersey Natural Farm

Jersey Natural Farm was founded in 2017 with a simple philosophy: Healthy people and a healthy planet start with healthy farming practices. That means relying on small-scale, restorative, organic agriculture, rather than industrial farming operations that rely on monocultures and pesticides.

Regenerative, organic farming all starts with a healthy soil, said founder and farmer Andrew Patterson. Fresh, nutrient-dense produce in an ecologically diverse environment can thrive from there, feeding healthy communities and establishing a resilient, local food system.

"Off of an acre we can sell six figures worth of produce [per year]," Patterson said. "We do that by supplying the demand for our onsite farm market. The other part of that is we're trying to tie [our produce] into medicine."

The first Jersey Natural Farm location is in Long Valley, New Jersey, where the farm sits on an acre alongside Ethos Health, a medical practice dedicated to treating and preventing health conditions with a whole food, plant-based diet and active lifestyle. It is aptly known as JNF @ Ethos.

"We're teaching people not only why they should be eating this stuff; we're teaching them why our produce is better than what you get in the supermarket," Patterson said. "Not only is it 40% to 50% more effective from a nutrient standpoint, but there are no environmental externalities because we're organic, regenerative and small-scale. We don't want to be just sustainable, but regenerative; we want to sequester carbon and be carbon negative as a farm."

Thus far, Jersey Natural Farm has been successful. It's growing fresh produce on an acre of land, both revitalizing the ecology and contributing to the health of its community. It is profitable and has the ability to support its operations into the future. However, there is a problem.

"We're pretty much maxed out in our own market as far as quick growth goes," Patterson said. "It's hard to get a foothold or compete with the prices of larger-scale farms that have more efficient systems or have had more time to implement infrastructure. It costs them $2 to grow a carrot, but it costs me $3."

To compete and expand into new markets, Patterson is leaning into the mission. He wants to bring the JNF model to new locations while conducting community outreach and education throughout the Garden State.

But he can't do that alone.

Achieving business goals by establishing partnerships

Source: Jersey Natural Farm

While Jersey Natural Farm is driven by its mission, achieving its goals requires more than just a strong set of values. By leveraging partnerships with landowners and other businesses, Jersey Natural Farm plans to expand its ecologically friendly and wellness-centric philosophy throughout New Jersey.

The first step is to expand beyond one location. Jersey Natural Farm keeps its costs low and stays competitive mainly by hosting a farm market on its property, rather than going to farmers markets to compete with larger, more established farms. Since JNF @ Ethos is operating at capacity, it's time to branch out.

"The conventional way to grow is going to more farmers markets, but then you have to grow more produce, add more infrastructure and spend more time sitting at the market," Patterson said. "So what we're trying to do is expand our farm as a whole into different areas of the state. We'll have onsite farm markets in each location, with the actual farm at those locations as well. It's the same as JNF @ Ethos but replicated in other spots."

That will keep costs lower for both the farm and its customers, but even more importantly, it will help foster the type of community that Patterson believes is essential to making small-scale, regenerative, organic farming most effective.

"It just boils down to having a relationship," he said. "It's not just about buying produce; it's about being connected to your food and the people who grow it. And their support is important for us to have a resilient food system." 

Building on success with a cross-industry approach

Source: Jersey Natural Farm

Jersey Natural Farm began as a cross-industry venture between a medical practice and a young farmer. Perhaps it is because of that origin that Patterson seeks further cooperation with healthcare professionals. Health and wellness are in Jersey Natural Farm's DNA, he said, so it makes sense to work alongside nutritionists, dietitians, and doctors to help educate people on how to improve their diet and lifestyle.

"People have kind of forgotten how to live a healthy life, be mindful and eat right," Patterson said. "They don't know cooking with these foods can be pleasurable. We try to teach ways to use our seasonal produce to make delicious, healthy meals and show them it's no so hard.

"If you stick with it, you actually change your taste buds," he added. "You don't need all this salt and sugar to make food taste good; you don't need added fats to make food taste good. It tastes good on its own because it's nutrient-dense, and that's where flavor comes from."

Spreading the word has been a challenge, though, so Jersey Natural Farm is working to assemble a board of healthcare providers and wellness professionals to establish an education curriculum and event programming for patients. Patterson said they are starting by targeting a major condition affecting Americans: diabetes.

Patterson envisions the program working through simple relationship building. Doctors see their patients suffering from a chronic condition, and when they give them a prescription, they also offer them a pamphlet that introduces them to a comprehensive wellness program available through Jersey Natural Farm. That program consists of educational programs, events and, of course, the farm market itself.

"We're trying to have health professionals – nutritionists, dietitians, medical doctors – be ambassadors of a whole food, plant-based lifestyle and give patients an option … that gives them the tools and education to help them on their journey to living a better lifestyle and not needing those prescriptions anymore," Patterson said.

"We want patients to know, 'You're not in this alone. We're here to support you,'" he added.

How partnerships can help your business grow beyond itself

Source: Jersey Natural Farm

When you develop effective partnerships in any business, your impact becomes greater than the reach of your business alone. It also contributes to a healthy, expanding bottom line. For JNF, that means building a community that furthers its mission of building a healthier world and healthier communities through the way food is produced and distributed.

"We're trying to build a community on our farm," Patterson said. "It's not just going to a farm market to buy produce from your local farmers; it's about being part of the local farm, seeing how your food is grown and knowing who grows your food."

Jersey Natural Farm promotes health, wellness, and vitality for both people and planet. By partnering with like-minded landowners and healthcare professionals, Patterson is expanding the model that has already revitalized an acre of property in Long Valley, New Jersey.

For any business, whether it is mission-driven or not, partnerships are an essential part of driving growth. Sometimes thinking creatively and developing cross-industry partnerships that might not be immediately obvious can help you forge the most effective path to success.

How a Cash Advance Works

Posted: 06 Mar 2020 08:00 AM PST

  • A cash advance is based on a credit card or future paycheck, not your credit score.
  • Cash advances provide fast, short-term financing at a high interest rate.
  • Cash advances are very expensive and can be dangerous if used recklessly.
  • A cash advance should be your last resort as a financing option.

If you've ever needed cash quickly, you know how much pressure it can be. Nobody likes having financial obligations they aren't sure how to meet, so many turn to a type of financing known as a cash advance.

A cash advance is a short-term loan that doesn't require an application or a credit check, so it seems like a great option in a pinch. However, cash advances aren't always as helpful as they seem. In many cases, they can even exacerbate an already-difficult financial situation.

How do you know when to consider a cash advance and when you should leave it alone? This guide will introduce you to the concept of a cash advance, as well as the pros and cons associated with it, so you can make an informed decision as to whether a cash advance is right for you.

 

Editor's note: Looking for a small business loan? Fill out the questionnaire below to have our vendor partners contact you about your needs.

 

What is a cash advance?

A cash advance is a particular type of short-term loan that an individual can take out of an ATM or bank branch with an eligible credit card (not all credit cards are eligible for cash advances).

"A cash advance is basically where you borrow money from your credit card and pay a pretty exorbitant interest rate upon repayment," said Andrew Schrage, co-founder and CEO of Money Crashers. "It can be also qualified as a payday loan in some instances, which in some ways acts in the same way, although not completely."

Cash advances are an expensive way to borrow money quickly. They typically carry a higher interest rate than normal credit card purchases, often around 25% or higher.

What is a payday loan?

A payday loan is very similar to a cash advance, with one major difference: what you are borrowing against. While cash advances are based on your credit limit, payday loans are based on your future expected income.

"[A payday loan] is a type of cash advance that borrows against your income and expected check," said Chane Steiner, CEO of Crediful. "Again, these have high interest rates and unfavorable terms, but they are approved quickly, without considering your credit score."

Payday loans are the personal equivalent of a type of business funding known as the merchant cash advance.

What is a merchant cash advance?

Merchant cash advances are distinct from personal cash advances and payday loans. While personal cash advances involve the use of a credit card to withdraw cash at a high interest rate, merchant cash advances are instead based on the future revenue of a business. For example, if a lender provides a merchant cash advance of $20,000 to a business, the business will then repay the advance with a percentage of its monthly revenue until it is repaid in full, plus fees.

Merchant cash advances are generally employed by businesses with established cash flow that can't obtain a conventional bank loan. They are among the most expensive business financing options out there, but they still require significant evidence of existing revenue to secure. Personal cash advances simply require an eligible credit card.

What are the pros and cons of a cash advance?

A cash advance is one of the easiest methods of financing to obtain, which explains the exorbitant cost. There is very little involved in the process, Schrage said.

"The only real requirement to receive a cash advance is that the credit card with which you are requesting one offers cash advances," he said. "There's typically no credit check required."

This makes cash advances an extremely flexible source of financing for individuals. Of course, that flexibility comes at a steep cost.

"Your issuer will charge a cash advance fee, which is typically 3% to 5% of the transaction with a minimum of $10," said Kevin Chen, a credit cards writer at Finder.com. "Even more dangerous, perhaps, is the steep interest rate you'll pay on your cash advance. It's very common for cash advance APRs to be above 25%.

"In addition, cash advances don't come with a grace period – that is, the window after each billing cycle during which you can pay off your balance in full to avoid interest. Each cash advance will start accruing interest immediately."

Finally, just because you make a hefty credit card payment doesn't mean you'll be paying off your cash advance. Any lower-interest credit card balance is paid off before a cash advance, which means a cash advance could still accrue interest at an excessive rate even after a significant credit card payment. If you carried a balance of $500 on your credit card, for example, and then took a cash advance of $100, you would pay off the $500 before any payments were applied to the higher-interest cash advance of $100.

The resounding advice from the experts we spoke with? Don't take a cash advance unless it is your only option.

"Your best bet is to avoid needing a cash advance at all costs," Schrage said. "Instead, you could borrow money from a family member or friend [or] take out a personal loan …" [Read related article: Loans You Can Get With Bad Credit]

If things are desperate, Schrage even suggested withdrawing more money from your checking account than your balance reflects.

"This obviously isn't ideal, because you'll pay a fee, but it is usually less costly in the long run, since you would not be paying interest," he said.

Is a cash advance bad for your credit?

Cash advances don't require a credit check, so they do not necessarily impact your credit score. However, a big factor in your overall score is your credit utilization rate. Your credit utilization rate compares your total credit limit across all credit cards to your total outstanding credit balance. Experts recommend maintaining a credit utilization of no more than 30%. That means, at any given time, 70% of your total credit limit should be available. Because cash advances use a portion of your credit limit, excessive withdrawals can ultimately drag down your credit score, especially as interest accrues on a cash advance.

"The dangers of a cash advance usually involve revolving utilization debt," Steiner said. "You borrow against your check or your credit card, and because of the high interest rates, it takes a significant amount to pay this back, which often requires you to take out another advance. This is a slippery slope in terms of debt."

Cash advances are a financing option of last resort

Cash advances are extremely expensive and potentially dangerous entryways into a vicious cycle of high-interest debt. The best option is to avoid a cash advance altogether. However, if you find yourself in an emergency situation with no other form of fast financing available, a cash advance could help you out of a jam. Even then, it is best to only accept a cash advance if you know you will be able to pay it off quickly, without succumbing to the never-ending trap of taking advance after advance to cover your debts.

Ultimately, especially for the aspiring business owner, debt should be a tool, not a necessity. If you can't survive without high-interest financing like a cash advance, it might be time to question the viability of your business model. In some cases, it could be better to close your doors, reassess and relaunch your business in a new way than to take on a heavy burden of debt.
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