cash flow

68As I write this I am flying to Jacksonville, Florida for three days of meetings, two of which are at an annual meeting for a large group of contractors.  Since our company deals with a lot of home service contractors, there are always a lot of contractor businesses represented at this association meeting.  Unfortunately, this year attendance is down from what was anticipated and the culprit, during these economic times, is lack of cash flow.  For nearly two years now, I have seen contractors and other businesses throughout America, and the world, continually struggle over the issue of cash flow.

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That is what is happening with businesses of every kind from retail and wholesale product lines to service companies.  They are discovering a seemingly new stream of income, which ironically, has been around a long time, in various shapes and forms. It is called “continuity income” or in many venues it is called “memberships” and consists of recurring billing. For years work out facilities and tanning salons, among other businesses, have given opportunity to join a club or facility and pay a monthly fee.  Country clubs and private golf courses are known for their monthly club fees.

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