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)
When looking for a mortgage it helps to understand the differences in each mortgage and what certain terms, like fixed rate, mean. This can help a home buyer choose the mortgage best suited for them.
Financing Your College Education (2)
Most renewable scholarships require students to maintain a certain grade point average. Otherwise, the scholarship may be lost. Grants Grants can be given out by the government or by private organizations.
What Is A CD (Certificate Of Deposit)? (3)
There are shorter term CD's as well, and there are longer term CD's, some maturing at 10 to 20 years. It is important to understand the maturity length before you sign up for one, and to understand that this money will be tied up in the CD for that length of time.
Car Loans: Finding A Financial Institution (4)
Many financial institutions all over the country will give you a choice between fixed and variable interest rates. Fixed interest rates can be advantageous to you if you are anticipating an increase in prices.
Self Certification Loans How Do They Work? (5)
Now, self cert finance are available to help those who are generally unable to provide proof of their income. If a self employed individual does not have proof of income, his or her credit history should be enough to qualify him or her for self cert loans.
Should You Re-Finance (6)
You have to look at your current rate of interest, the rate you might secure with refinancing, how long you plan to live in your current home, and the closing costs on the mortgage refinance.
Avoid The Traps Of Adverse Credit Loans (7)
However, logic would tell you that if you are looking for bad credit finance, you have not had large amounts of money to pay debts, and probably will not in the future.
What You Need To Know About Cheap Car Insurance Quotes Before You Buy (8)
Also you'll want to know that the insurance agents will be easy to contact at their office or home. Make sure to check out the online discount car insurance brokers who can give you fast online cheap car insurance quotes from several different companies.
Mortgages To Help Found Business Ventures (9)
If that is your aim, you would have to look for a prime location in a desirable place. You would also have to make sure that the area attracts the target audience that would be interested in your venture.
Information For Fast Loans (10)
In the end it is all going to come down to you and you are the only one who knows how fast you need the money. Find a loan officer who can easily help you with your fast loans.
Insurance For Your Wanderlust (11)
For starters, we become acquainted with a whole new culture, and learn about different ways of living. It allows us to understand more about the thing we call life.
Third Millennium Debt Reduction (12)
Borrowers mean business for the loan provider. Thus, the loan provider is keen to maximize their current profits. And this need not only mean large amounts. Smaller borrowers with smaller needs have also become desirable of late.
Maintaining Your Professional Credibility While Balancing Family Responsibilities (13)
This is particularly true in the male-dominated financial services industry. Establishing credibility and keeping it strong is especially important for a woman's prosperous financial services practice. Add to that the reality that women often have more life responsibilities than men.
Doing Away With Debt Repayment Anxiety (14)
Your existing loans may also charge an early payment penalty. Find out how much all these additional expenses shall add up to. Make sure that you look around extensively for the best bargains.
Wheeling Your Way To Car Insurance (15)
Check that out as well when you pay a visit to the insurance company. If this is your first car, you might find the entire task of finding the right car insurance quite a bit confounding.
House Buying For The Expecting Couple (16)
This is not to say that you will be paying the entire amount from your savings account. Most of us do not have the savings to purchase a house at any time.
Understanding The Right Way To Consolidate Your School Loans (17)
There are benefits to consolidating debt, but there can be drawbacks also. Depending on your own situation, you will need to discover whether consolidating loans or keeping loans separate is the best for you.
The Strategy Of The Master Investor (18)
Adam Khoo is an entrepreneur, best-selling author and a self-made millionaire by the age of 26. Discover his million dollar secrets and claim your FREE bonus report 'Get Out Of The Rat Race Now' at www.SecretsOfSelf-MadeMillionaires.com
The Impact Of Saving On Your Future Wealth (19)
If you cannot save ten cents out of a dollar, you will not save $100,000 out of a million. If you cannot start with a small income, forget it when you have a bigger income.
What You Should Know About International Travel Medical Insurance (20)
Domestic travel insurance plans are not designed at all to work well with hospitals and doctors overseas, which can add to your frustration if you have any medical problems while traveling.
Newer Articles Highlighter:
New Hard Rock Theme Park In Myrtle Beach Has Real Estate Investors On A Buying Frenzy! (1)
When guest arrive at the park, they can definitely expect more than just rides. The park is sure to please people of all ages and of all backgrounds. The Hard Rock Theme Park will be built on approximately 140 acres.
Bad Credit Repair-Ways To Repair Your Credit Legally (2)
Other companies often claim they guarantee to get you a credit card, regardless of your financial history. If you decide to work on improving your scores, it is absolutely in your best interest to enlist the help of a legal professional.
How Can The Financial Aid Office Can Be Your Best Friend (3)
Most financial aids will work with you to help reduce the impact of the outside policy. Inquire about the school's Federal Work-Study jobs. The Federal Work-Study Program provides jobs for students with financial need.
Student Loans And Financial Hardships (4)
Most student loan lenders are aware of this and have options available to you during times of financial hardship. Deferment and forebearance options may be available to you depending upon your circumstances.
Tulsa Stands Strong In Face Of Bad Real Estate Market (5)
Eric Bramlett is the broker & co-owner of One Source Realty, a downtown Tulsa real estate company - www.onesourcetulsa.com. All of Eric's Tulsa web design is performed by www.winstonwd.com.
Discover How Financial Literacy Can Help You In Your Home Business (6)
Rich Dad's Cashflow 101 is a financial education board game that teaches you financial literacy. I really had so much fun learning playing the game with others that I felt that it has been one of my best investments in purchasing the board game.
Indexing For Passive Aggressive Investors (7)
These funds are particularly suited for fixed income investments (Treasury, corporate or muni) because they can buy and sell bonds at much lower spreads than individual investors. The proliferation of index and exchange traded funds means you can construct an entire portfolio of these funds to meet almost any investment strategy and risk level.
Oklahoma Home Foreclosures Continue (8)
Foreclosures are often a sign of a struggling market, but they are also often a sign that there are bargains to be had in the market. Oklahoma may be seeing its share of home foreclosure problems but it's hardly the only state in the nation facing this issue.
Real Estate Financing - Get The Facts First Before You Commit To A Home Mortgage (9)
You'll more than likely get a conventional loan with a fixed rate mortgage. A fixed-rate mortgage means the interest rate and principal payments remain the same for the duration of the loan.
Downtown Tulsa Goes Green (10)
Topics: tulsa real estate, tulsa oklahoma real estate, tulsa web design, downtown tulsa real estate The skyline of Tulsa's downtown skyscrapers may be a beautiful architectural sight but it has left some people in the area wanting more.
A Guide To General Car Insurance (11)
Once you have gotten a few quotes, you want to compare these, as well as other important factors about each company, such as their history, service offerings, and general car insurance prices.
Top Investments And Stock Picks For 2006 (12)
A solid performer that tends to buck the economy. 4) Banks and financial institutions - BPOP, Popular Inc. The main latino bank of Puerto Rico and expanding into the U.S.
How To Quickly And Easily Improve Your Credit Score (13)
4)Give Payments On Time You increase your chance of improving your credit score when you are eager to meet your deadlines. Not only is it a good practice, which will benefit other areas of your life as well, but also it is a critical step if you would like to take out loans.
What You Really Need To Know About Adjustable Rate Mortgages Now (14)
Topics: mortgage, refinance mortgage If you are looking for a suitable mortgage, you may not know it, but there are many available to homebuyers. Between banks, lending institutions, and brokers, you can find the one right for you: short term, long term, fixed rate, adjustable rate or whatever you need.
Read The Small Print And Avoid Extra Costs At The End Of Your Lease (15)
You need to make sure it is spelled out in the contract what the definition of excessive wear and tear is. If there is no description telling you what the standards are that they go by then it will be up to the leasing company and the person inspecting the car when you turn it in and you will left holding the bag.
If You Have Debt Problems, Consider These Tips (16)
In an effort to help people with their debt problems, many creditors will now try to work with you to help you resolve the debt, by offering lower payments that you may be better able to afford.
What Is The Real Difference Between A Deed Of Trust And A Mortgage (17)
Trustees are not the ones who take over your property. Deeds of trust are only revoked once the debt to the lender is paid off. In which case, the trustee issues a release of the deed, and the new record is made that the loan is paid, and the lender surrenders its interest.
How To Choose The Correct Forex Trading Software For You (18)
I recommend broadband. If you have dial up just forget about it. I will tell you again that you need the fastest Internet connection you can afford. Another really important issue when considering a Forex software program is security.
What Are Seasonal Loans And What Are Some Of The Common Difficulties With Them (19)
Sometimes the lender may be able to catch potential problems before they become real troubles. Companies are the same as an individual in that they are responsible for fulfilling the terms of all loan agreements and promissory notes.
Questions You Need To Ask To Insure More Sucessful Stock Purchases (20)
Simply stated, the more honest that management is within any company, the more investors they will attract and retain. For example, creating false rate return reports on company stock in order to increase sales and make money would seriously strain relations between the company and its shareholders.