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Winning Business
and Loyal Clients in Invoice Factoring - # IV, Part 2
(cont'd) Advice Desk
How to drive long term value in your firm
The stated goal of our strategic invoice factoring
marketing process is to accomplish the heading of this
paragraph on a daily basis, namely: How do we drive value into
our accounts receivable factoring firm? |
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Toll Free Phone
877.894.UCFC (8232)
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 I
would suggest that there are only 2 viable ways to drive value
[or drive it back, if it is not present or has been negated]
into your invoice factoring company or firm. These 2
approaches work whether you are a funding source, marketing
firm, broker, intermediary or vendor in the cash flow and
invoice factoring industry.
The 2 ways to drive value are through the effective use of a
strategy and operational effectiveness. Think about these 2
tools best characterized by the Chinese symbol of ying and
yang, pictured below. |
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 It
might be a great idea to quickly review how the ideas of
strategy and operational effectiveness are exactly like this
symbol. As outlined at www.wikipedia.org/wiki/Yin_yang, the
concept of yin and yang originates in ancient Chinese
philosophy and metaphysics, which describes two primal
opposing but complementary forces found in all things in the
universe. Yin, the darker element, is passive, dark, and
corresponds to the night; yang, the brighter element, is
active, light, upward-seeking and corresponds to the day; yin
is often symbolized by water, while yang is symbolized by
fire.
Yin and yang are descriptions of complementary opposites
rather than absolutes. Any yin/yang dichotomy can be seen as
its opposite when viewed from another perspective. The
categorization is seen as one of convenience. Most forces in
nature can be broken down into their respective yin and yang
states, and the two are usually in movement rather than held
in absolute stasis.
When you consider strategy, or creating what is new, and
operational effectiveness, or improving what is there, the
ying yang principles apply perfectly. What are the principles
of ying yang?
Quickly, they are:
1. They are opposites.
2. They are interdependent.
3. They consume and support each other.
4. They can transform into one another.
Strategy, or creating what’s new, provides the opportunity for
breakaway success while exposing your company to more risk.
Strategy would include new product offerings, new operational
strategies and new distribution schemes. |
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Operational
effectiveness, on the other hand, speaks to improving what’s
there already. Operational effectiveness is safer, but is
easily copied and limited in its ability to continually create
new value. Operational effectiveness includes obvious steps
such as reduction in product costs, labor expenses, and
automation.
Although both are needed to drive value and competitive
advantage, it is pretty clear that strategy defines
leadership. Conversely spoken, you cannot shrink to greatness
by using a plan focusing exclusively operational
effectiveness. Unfortunately, too many industry segments
[perhaps the United States automobile manufacturers?] have
embraced this concept, attempting to compete in a global
environment filled with challenges.
The ability to drive value and competitive advantage not only
requires both an effective accounts receivable factoring
marketing strategy and operational effectiveness, but from my
perspective, a totally different, new marketing model for your
invoice factoring company. I will outline in the next series
of Articles what this new Marketing model is, and how it can
be successfully used in the Specialized Financial Services
Industry.
The most important thought to remember is that the process of
self assessment and the journey in preparing and implementing
an effective Marketing Strategy is this: No one else can do it
for you. You must do it yourself. You will make mistakes and
get frustrated. This is part of the process.
Our process took us awhile to figure out, and every day, it
needs to be adjusted or “tinkered with”. This is the exciting
part of working in an economic environment and industry that
is growing and evolving right in front of us.
As once noted by Marcel Proust, the famous 20th century French
writer, “We don’t receive wisdom; we must discover it for
ourselves after a journey that no one can take for us or spare
us.”
Feel free to contact me with questions, observations, comments
or if you need any additional information on the discussed
topics. I can be reached via email at mark@ucfunding.com.
United Capital Funding Corp. is an invoice factoring company
serving business finance clients within the U.S.
View and Print this entire Article, both parts 1 and 2 (pdf version):
Winning Business and
Loyal Clients in Invoice Finance (part IV)
In this
series of articles to assist you in winning business and loyal
clients, Mark Mandula offers his guidance from the viewpoint
of an experienced business finance professional based in the
US.
Winning Business and
Loyal Clients in Invoice Finance (part I)
Winning Business and
Loyal Clients in Invoice Finance (part II)
Winning Business and
Loyal Clients in Invoice Finance (part III)
Winning Business and
Loyal Clients in Invoice Finance (part IV)
Winning Business and
Loyal Clients in Invoice Finance (part V)
Winning Business and
Loyal Clients in Invoice Finance (part VI)
Winning Business and
Loyal Clients in Invoice Finance (part VII)
Winning Business and
Loyal Clients in Invoice Finance (part VIII)
Other Invoice Factoring Articles of Interest
Trust Based Financial Services
in Factoring of Accounts
Receivables:
How to build a sustainable
trust based financial services firm
Winning Business
and Loyal Clients in Accounts Receivable Factoring "How to Sell More to Your Existing Clients"
Winning Business
and Loyal Clients in Accounts Receivable Factoring "Work
Smarter, Not Harder"
Factoring: Fact vs.
Myth: What types of companies use factoring?
Factoring: Fact vs.
Myth: Will factoring negatively affect your
customers perception of your company?
Factoring Company
Corporate Overview
Apply for Factoring Online
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