The Fast Nickel Vs The Slow Dime
Topics: Business, Sales, Strategic Planning
I first heard about the this concept” early on in my investing days. Real estate people use it all the time as they would think about selling. Should I take less money now (fast nickel) or hold out for a higher price later (slow dime)?
I have applied this concept to all parts of my business life. I am always deciding between designing fast nickel models that generate immediate cash flow, or building long-term, slow dime relationships and scenarios that have a better chance of paying a much higher return over the long haul.
I decided to take a poll among some of my friends and colleagues to ask what they thought about this concept and which they preferred and why.
Boy! Talk about a loaded topic! The answers surprised even me, so I thought I’d share a few, and then chime in with my own.
“The way I see it, if your pipeline is stacked full enough, you have enough slow dimes coming in to maximize profit potential. The only reason to go for the fast nickel is out of desperation for work.” ~Pete
“For me, the fast nickel beats the slow dime any day. So buck common wisdom. Take a fast nickel over a slow dime.” ~ Judy
“Slow dime every time. Nickels usually wind up costing you a dime of effort anyway.” ~Ed
“I more often will hold out for the slow dime. It’s important to know I consciously decide with each deal what it will be. So there is not a straight answer except that I am usually looking for steady long-term residual income, so a slow dime.” ~ Ken
“A fast nickel is better than a slow dime. McDonald’s doesn’t make much profit per burger, but they sell a lot of burgers and they make a lot of profit.” ~ Jim
All interesting, right?
As for me, I have always used both concepts in my business. When times are slow, I go for the quick nickel to pump up cash flow, and when times are good I am always working on the next long term project.
I have always believed that cash flow is king and if you need cash flow, fast nickels are easier to come by than the slow dimes. I have built businesses intentionally on the fast nickel idea because it allowed us the time and good fortune to work on some longer-term opportunities. When customers have a positive experience working with you when the risk is lower, you can earn enough of their trust so they move with us into the slow dime level.
That being said, when you are able to create something of value to bring to the market place and it has long-term potential, I am a big fan of the slow dime- a return that continues to pay over and over turning lots of dimes into lots of dollars. You might ask why not go for the long term deals to begin with and forget the nickels. After all, once it’s up and running, the slow dime business seems to be much less work than chasing the quick nickel. But we sometimes forget how long it took to build that long term business in the first place.
In my opinion it is nice to have a balance of both. This allows for a much calmer ride through the business cycles.
Steve Kennedy is a successful entrepreneur and certified business coach who works with business owners and managers to achieve better results with less effort. For free small business resources and information go to: www.winningthegameofbusiness.com book:questforultimatesuccess.com
Previous Articles Highlighter:
The Benefits Of A Fixed Rate Remortgage (1)
To change a fixed rate loan to get a different interest rate would require a refinancing of the mortgage. A fixed cost remortgage can be a good idea, but it can also be a bad choice.
Financing Your College Education (2)
Student Loans Taking out a loan is one of the last ways you can fund your college education. The main drawback of student loans versus other funding is that the loans must be paid back once you receive your degree.
What Is A CD (Certificate Of Deposit)? (3)
If you are buying a jumbo CD (a CD that is over $100,000) make sure you talk about the issue of protection. The FDIC only backs up to this amount and you will want to know what the financial institution can do to help protect the money you invest above this limit.
Car Loans: Finding A Financial Institution (4)
You may want to check out the options for paying as well. Do they only take mail-in payments or can you pay online Knowing your options can help you stay on track.
Self Certification Loans How Do They Work? (5)
Obviously, since there is no way for the bank to determine what kind of income you make, self certification loans would make it easy to lie about your income. However, in the long run, the only person that these types of lies hurt is the borrower of self certification loans.
Should You Re-Finance (6)
Youll also have to have some idea of what new interest rate you are likely to get and then decide on the number of years you want to take to pay off the new loan.
Avoid The Traps Of Adverse Credit Loans (7)
A prepayment penalty basically means that if you try to pay off the balance of your bad credit finance earlier than planned, you will be charged fines or fees. Obviously, this is not a wise move as far as motivating someone to get out of debt, and there should be adverse credit finance available without this stipulation attached.
What You Need To Know About Cheap Car Insurance Quotes Before You Buy (8)
With the ease these days of being able to go online anytime and get these free, cheap car insurance quotes in a matter of minutes shouldn't prevent anyone from finding out what's is available at the best price.
Mortgages To Help Found Business Ventures (9)
The business mortgage is truly a blessing for people looking to make inroads into the business world. The business mortgage is perfect for those who would like to purchase office space.
Information For Fast Loans (10)
Sometimes banks will give loans as fast loans, but these are going to be loans that have a very high interest rate, so you might want to think about whether or not you want your fast loans, or if you are content to wait for the loans to process.
Insurance For Your Wanderlust (11)
Life is never as exciting as when one is on a vacation taking in the sights and sounds. The highs of traveling to a new place are many. For starters, we become acquainted with a whole new culture, and learn about different ways of living.
Third Millennium Debt Reduction (12)
However, we should not take this to be a permanent condition. If you are wishing that you could reduce your current debt, stop wishing! With the boom in the world of loans persisting for a while, switching from a more expensive to a less expensive loan might be an effective solution.
Maintaining Your Professional Credibility While Balancing Family Responsibilities (13)
~ Do what you can to keep yourself physically strong and emotionally sound. Take time to eat nourishing meals and exercise regularly. Get as much sleep as you can.
Doing Away With Debt Repayment Anxiety (14)
We were taught never to lend or borrow. However, the current state of affairs seems to suggest the contrary. Nowadays, the feeling is: If you have the need, avail of a loan.
Wheeling Your Way To Car Insurance (15)
Topics: car insurance, cheap car insurance, compare car insurance That first drive in your own car can be thrilling. With the world moving at a super-fast pace, we cannot afford to loll about or stroll here and there.
House Buying For The Expecting Couple (16)
To watch as your bundle of joy wriggles his tiny toes and crinkles his little eyes is sheer bliss. Other more experienced parents and loved ones come up with all kinds of tips that young parents could use.
Understanding The Right Way To Consolidate Your School Loans (17)
It would be best not to touch loans such as the Perkins Loans. Consolidation lowers monthly payments, it also means more interest will be accrued over the life of the loan, and significantly increase the loans' total cost.
The Strategy Of The Master Investor (18)
It is under these circumstances that the irrational short-term orientated market will panic and sell the stock until its price is way below its intrinsic value. The master investor, knowing the true value of the stock, will buy as much as he can at such times, thereby getting a huge 'discount'.
The Impact Of Saving On Your Future Wealth (19)
That is the power of consistent saving and investing. Most people feel that they do not have enough income to invest so they procrastinate by saying, 'I will start when I earn more!' Trust me, this is impossible.
What You Should Know About International Travel Medical Insurance (20)
Whatever compromise in the plan you choose to make between the risks and costs, shop around not only for cheap international travel medical insurance plans, but also for a reputable company that gives you total information, has open view functioning and is not evasive about any of your questions.
Newer Articles Highlighter:
New Hard Rock Theme Park In Myrtle Beach Has Real Estate Investors On A Buying Frenzy! (1)
Myrtle Beach has a variety of attractions that draws people near and far to the beach. The Hard Rock Theme Park is soon to be one of Myrtle Beaches' newest attractions.
Bad Credit Repair-Ways To Repair Your Credit Legally (2)
Repairing your credit helps consumers who are being denied or do not qualify for the best interest rates, because of negative information on their reports. Although not known as a priority for some, credit repair is not just helpful for those who have bad financial history.
How Can The Financial Aid Office Can Be Your Best Friend (3)
Find out the schedules, be sure to attend and ask questions that are important to you. Ask your financial aid about the outside scholarship policy that states what happens to your need-based financial aid package if you win an outside scholarship.
Student Loans And Financial Hardships (4)
When this happens, it is addded to the balance of the loan, making the amount owned higher. 2. Extended payments will lengthen the term of your loan, thereby making the monthly payments lower.
Tulsa Stands Strong In Face Of Bad Real Estate Market (5)
Not too many places have been unaffected by this trouble. But Tulsa is one place where the American Dream may still ring true. Unlike the rest of the country, Tulsa hasn't seen a significant decrease in the local housing market.
Discover How Financial Literacy Can Help You In Your Home Business (6)
In developing a home business, the game enabled individuals like me to understand the importance of starting small but dream big to reach your goals. The factor that I like most about Cashflow 101is I am able to play and learn together about financial education through this game.
Indexing For Passive Aggressive Investors (7)
The first cousin of index funds, Exchange Traded Funds (ETFs), do the same thing-they track indices. Between index funds and ETFs you can mirror any major index, small index, industry sector, industry sub-sector (i.e. , biotech or software), global region or individual country.
Oklahoma Home Foreclosures Continue (8)
In fact, Oklahoma is ranked 26th in the nation for states in terms of the highest foreclosure rates, placing it right about in the middle of the list. This is an improvement from July's rankings in which Oklahoma placed 22nd.
Real Estate Financing - Get The Facts First Before You Commit To A Home Mortgage (9)
Insiders know that the advertised mortgage rates you find are not always what you'll get from the lender; market fluctuations, economic news or many other reasons can influence the interest rates throughout the day.
Downtown Tulsa Goes Green (10)
The major bulk of that revitalization comes from the entire Centennial Walk which will connect all of the major points of interest in downtown Tulsa with safe sidewalks. The new park, called H.A.
A Guide To General Car Insurance (11)
This will enable you to get a better idea on what the more popular companies are and why, as well as give you a firsthand opinion on the different companies, other than people who work for the company itself.
Top Investments And Stock Picks For 2006 (12)
They are a definite ace in the hole and a runaway favorite. Great, solid management and a definite winner. I also like PNY, Piedmont Natural Gas. They are very consistent and produce very solid yields that they are always increasing.
How To Save Big On Life Insurance In Four Easy Steps (13)
Therefore, you won't see much in growth for 15 - 20 years. You would do 10X better with any good mutual fund. Don't let them fool you with claims that your investments are tax free.
How To Quickly And Easily Improve Your Credit Score (14)
To check the accuracy, check it about year before applying for a loan. There are sometimes blunders such as a late payment stated, when, in fact you paid on time which can take about anywhere from 30 days to 3 months to process!
What You Really Need To Know About Adjustable Rate Mortgages Now (15)
Hence, you may risk higher payments, but you receive a lower interest rate when your loan reaches its fullest point. It is likely this advantage will save you more money than with a fixed rate mortgage, unless interest rates dramatically rise.
Read The Small Print And Avoid Extra Costs At The End Of Your Lease (16)
My suggestion as a former automobile sales manager is that if you are stuck on leasing that you make sure you stay under the mileage allowed, keep maintenance records, repair any damage, and get the vehicle looked over and appraised before turning it end at the end of the lease.
If You Have Debt Problems, Consider These Tips (17)
The problem with bankruptcy is that it will appear on your credit report for 7 to 10 years, making it very difficult to restore your credit rating. There are also income limits and credit counseling classes that have to be taken, as well as costly attorney fees.
What Is The Real Difference Between A Deed Of Trust And A Mortgage (18)
The trustee should be a neutral party favoring neither the borrower nor the lender, in case a problem arises. Common third parties are attorneys, title insurance companies, or an escrow company.
How To Choose The Correct Forex Trading Software For You (19)
With web based software programs the majority of the security and maintenance issues will be taken care of by the software provider. Internet based Forex software systems are hosted on secure servers with the most secure encryption technology available.
What Are Seasonal Loans And What Are Some Of The Common Difficulties With Them (20)
The problem will only be further when the trade is not paid as well thus dropping the company into a danger zone making repayment even more difficult than previously. Sometime incidents can occur which are beyond the companies control causing them to be unable to complete the repayment.