Invoice Factoring, Debt and the Printer Finishing Business (video)
We talked to Keith last week, and in the above video he makes the following points:
Keith’s background is that he has been in the printing industry for 20 years. He originally started off as a printer then went to pre-press then went out on his own into his own printing company.
He now runs a print finishing company, where he takes finishing work from customers, then folds, stitches it and trims it ending up with the finished product. So when a printer prints something, they give Keith the flat sheets and they then give it back to them folded and stitched as the finished product.
Keith has had businesses in the past with 35-40 staff with huge turnover and huge expenses. Along with all of this goes the worry and stress of a big business. The reason for AR Cash flow was when they started they never had a lot of cash flow.
In the printing industry most of his customers tend to pay on terms. They found that to get the invoices paid earlier allowed them to buy new machinery.
The big challenges are: competition (people cutting prices), surviving in the current economic climate. In order to survive service is the most important thing along with quality. Cost is important but service and quality is number 1.
In the recent market conditions we have all learned that if you get into too much debt, it is good when things are booming, you can get lots of staff, buy new machinery and get a big factory etc. However, if things start to slow then it is a real problem. It is a big temptation to grow and over commit to debt.
Keith’s goal now is to have a small lean mean machine that is run with a handful of staff, that provides a good service that is not too big and gives him his weekends off. Keith can sleep of a night.
If you would like to use Keith’s services you can phone him on 02 9905 0300 or email [email protected]
If you are like Keith and would like a story done on your business, contact us today on 130o 651 243 or email [email protected]