The Principle Of The Golden Goose And The Eggs

Clearly, we all had at one point in our life a golden goose that laid eggs. It doesn’t matter if it relates to finances, relationships, business, nature or anything else; all of us have been there. We as humans are creatures which often generate an action that would destroy the profitability of this asset.But why do we act this way?We often do so out of habit, ingratitude, routine and most of all, greed. We should be satisfied by only living of the given eggs but many of us become so greedy that we kill the goose in our want for more.The summary of the story goes something like this:A man has a goose, takes care of it and before he kills to eat it, to his surprise, she lays a golden egg. He and his family are now rich and each day the goose lays a golden egg. After a while, the man and his wife get greedy and want more, so thinking the goose has a lot more golden eggs inside her, they kill it but they find nothing. Now it only became a meal.The moral of this principle is that many of us would do better if we could control ourselves knowing that greed destroys our source of good.In reality, most successful people know how to control and use this natural law to their advantage. On the other hand, average people act like the goose that lays the golden egg. In return for their hard work, they receive a low-income paycheck at the end of the month. And once they have the money, they lay their golden eggs by… buying liabilities such as gadgets, partying, or wasting it on frivolous things, etc.

The Golden Goose and its Golden Eggs
Now why is that most of us kill what inspires freedom, love, joy and having fun in paradise?The principle of the Golden Goose has many meanings, but it definitely has a primary meaning.What do you get out of it, when applied to your inner self, your personal life, or to a larger implication that focuses on your relationship, family, friends, neighbors, community, culture, state, country, or even the world?The fact is that everyone should have a goose that lays golden eggs. So my question is: Where is your goose and where are your golden eggs?The first time I read about and understood this rule, I realized that, in my life, I had lost too many goose and in consequence, the eggs that came with it. Finally, not so long ago, I began to build my golden goose in a better way and care for it.You need to understand that such a goose can keep laying golden eggs for your future, leaving a legacy for the generations to come if taken care of properly. But if you abuse the goose, starve it, or manipulate it to make more golden eggs to increase short-term profits, then suddenly she will lay no more eggs.The Teaching Lesson of this Principle
According to the principle, what you focus on is what ends up affecting you. And since you focus more on fear, ingratitude, greed, resentment and envy, just to name a few, that is what shows up more and more in your life.By focusing on fear, lack of appreciation, anger or greed as a solution, you slowly kill the goose that lays the golden eggs.For example, do you remember when your parents punished you for being too inquisitive, you believed you were bad and undeserving; or when you had a great girlfriend or boyfriend, but you lost that person because of your ingratitude. You took it personally.So today you might kill whatever gives you too much love, fun or pleasure and you envy stuff that others have as valuable, such as luxury, gold and money.The lesson here is that you must create a ‘Golden Goose’ for yourself. With your help, she is going to lay eggs. These eggs will give you a life of financial freedom when the time comes. You should live off the eggs but never, I cannot stress it enough, NEVER off your goose.Your eggs equal the interests, dividends and earnings coming from your mortgages, stocks or capital gain. You should also create passive incomes.

It is easy to know what to do but it is harder to do what you know.Take Care of the Goose
Know that you are designed to live a life that provides for all of your needs. However, you can somehow kill your golden goose and lose all of your golden eggs which life provided for you by easily focusing on greed and ingratitude.Your destiny and financial freedom is bright and full of light, love and giving. But despite this birthright and great potential, you can destroy your goose if you do not take care of it, so re-invest some of the profits you made to create more eggs.Do not forget to control your short-sighted nature which usually looks at short terms instead of long terms investments, and act accordingly.Even though you had no choice when you were a child, you are now old enough to be who you want to be. Growing up, you were trained how to speak and write your language, go to school, do your job, fix stuff, use appliances, cook, drive, swim, work a computer, etc.But now, it is time for you to get a golden goose that lay eggs, so you can live happy and healthy, even have financial freedom, travel anywhere you please, as to enjoy life and live with a great serenity knowing you leave a legacy.

Alternative Financing for Wholesale Produce Distributors

Equipment Financing/Leasing

One avenue is equipment financing/leasing. Equipment lessors help small and medium size businesses obtain equipment financing and equipment leasing when it is not available to them through their local community bank.

The goal for a distributor of wholesale produce is to find a leasing company that can help with all of their financing needs. Some financiers look at companies with good credit while some look at companies with bad credit. Some financiers look strictly at companies with very high revenue (10 million or more). Other financiers focus on small ticket transaction with equipment costs below $100,000.

Financiers can finance equipment costing as low as 1000.00 and up to 1 million. Businesses should look for competitive lease rates and shop for equipment lines of credit, sale-leasebacks & credit application programs. Take the opportunity to get a lease quote the next time you’re in the market.

Merchant Cash Advance

It is not very typical of wholesale distributors of produce to accept debit or credit from their merchants even though it is an option. However, their merchants need money to buy the produce. Merchants can do merchant cash advances to buy your produce, which will increase your sales.

Factoring/Accounts Receivable Financing & Purchase Order Financing

One thing is certain when it comes to factoring or purchase order financing for wholesale distributors of produce: The simpler the transaction is the better because PACA comes into play. Each individual deal is looked at on a case-by-case basis.

Is PACA a Problem? Answer: The process has to be unraveled to the grower.

Factors and P.O. financers do not lend on inventory. Let’s assume that a distributor of produce is selling to a couple local supermarkets. The accounts receivable usually turns very quickly because produce is a perishable item. However, it depends on where the produce distributor is actually sourcing. If the sourcing is done with a larger distributor there probably won’t be an issue for accounts receivable financing and/or purchase order financing. However, if the sourcing is done through the growers directly, the financing has to be done more carefully.

An even better scenario is when a value-add is involved. Example: Somebody is buying green, red and yellow bell peppers from a variety of growers. They’re packaging these items up and then selling them as packaged items. Sometimes that value added process of packaging it, bulking it and then selling it will be enough for the factor or P.O. financer to look at favorably. The distributor has provided enough value-add or altered the product enough where PACA does not necessarily apply.

Another example might be a distributor of produce taking the product and cutting it up and then packaging it and then distributing it. There could be potential here because the distributor could be selling the product to large supermarket chains – so in other words the debtors could very well be very good. How they source the product will have an impact and what they do with the product after they source it will have an impact. This is the part that the factor or P.O. financer will never know until they look at the deal and this is why individual cases are touch and go.

What can be done under a purchase order program?

P.O. financers like to finance finished goods being dropped shipped to an end customer. They are better at providing financing when there is a single customer and a single supplier.

Let’s say a produce distributor has a bunch of orders and sometimes there are problems financing the product. The P.O. Financer will want someone who has a big order (at least $50,000.00 or more) from a major supermarket. The P.O. financer will want to hear something like this from the produce distributor: ” I buy all the product I need from one grower all at once that I can have hauled over to the supermarket and I don’t ever touch the product. I am not going to take it into my warehouse and I am not going to do anything to it like wash it or package it. The only thing I do is to obtain the order from the supermarket and I place the order with my grower and my grower drop ships it over to the supermarket. “

This is the ideal scenario for a P.O. financer. There is one supplier and one buyer and the distributor never touches the inventory. It is an automatic deal killer (for P.O. financing and not factoring) when the distributor touches the inventory. The P.O. financer will have paid the grower for the goods so the P.O. financer knows for sure the grower got paid and then the invoice is created. When this happens the P.O. financer might do the factoring as well or there might be another lender in place (either another factor or an asset-based lender). P.O. financing always comes with an exit strategy and it is always another lender or the company that did the P.O. financing who can then come in and factor the receivables.

The exit strategy is simple: When the goods are delivered the invoice is created and then someone has to pay back the purchase order facility. It is a little easier when the same company does the P.O. financing and the factoring because an inter-creditor agreement does not have to be made.

Sometimes P.O. financing can’t be done but factoring can be.

Let’s say the distributor buys from different growers and is carrying a bunch of different products. The distributor is going to warehouse it and deliver it based on the need for their clients. This would be ineligible for P.O. financing but not for factoring (P.O. Finance companies never want to finance goods that are going to be placed into their warehouse to build up inventory). The factor will consider that the distributor is buying the goods from different growers. Factors know that if growers don’t get paid it is like a mechanics lien for a contractor. A lien can be put on the receivable all the way up to the end buyer so anyone caught in the middle does not have any rights or claims.

The idea is to make sure that the suppliers are being paid because PACA was created to protect the farmers/growers in the United States. Further, if the supplier is not the end grower then the financer will not have any way to know if the end grower gets paid.

Example: A fresh fruit distributor is buying a big inventory. Some of the inventory is converted into fruit cups/cocktails. They’re cutting up and packaging the fruit as fruit juice and family packs and selling the product to a large supermarket. In other words they have almost altered the product completely. Factoring can be considered for this type of scenario. The product has been altered but it is still fresh fruit and the distributor has provided a value-add.

The idea for factoring/P.O. Financing is to get into the nuts and bolts of every single deal to ascertain if it is doable.