i'm jordan belfort and this is sales school i was talking about the two things of failure castro i was telling this story with my friend in australia right and the problem was he made his decision based on cheapest price versus on what allowed him to retain his cash he figured that by going with the chinese company he was doing himself a very big favor going to make more money and more margin what happened was though he had himself in this constant cycle of scrounging for cash now that was in a developed company but still even
then that whole idea of like just you know cash as king he ignored it and what happened was he had a bad downturn in his business and boof just like that out of business and a great company when you're starting up your business when you're testing out a new leads new idea okay if you can structure it in a way that let's say there's two lead sources that you can use one of them you have to pay up front and buy a lot let's say i can get one lead source i have two possible vendors
one will make me buy twenty thousand dollars worth of leads up front or ten thousand dollars on the front the other one will let me buy fifty dollars a day or a hundred dollars a day in other words i can buy them as i go maybe even give me terms i don't care if i have to pay three times as much money for the leads during the test phase i want to keep hold of my cash i don't care what i pay for something it doesn't matter what my margin is i can normalize my margins
i can use economies of scale as i grow the point is when i'm testing something when i'm just getting started cash flow is king okay so number one step one over keep your overhead as low as possible step number two focus on business practices that conserve cash flow use just-in-time inventory don't buy large you know amounts of leads up front okay outsource whenever possible okay those are just two distinctions there's 10 distinctions i don't want to overwhelm you i don't have time for them all but i will give them all 10 to you see unlike
a free webinar i'm not holding them back so i can sell you the program that's why free webinars suck right i just want to keep going here i'll give them to you next time we have to pay extra funds you
