In the world of small business operations, managing cash flow can often be one of the biggest challenges. Business owners frequently find themselves in situations where they need immediate working capital to cover expenses, purchase inventory, pay employees, or invest in growth—long before customers pay their invoices. In such scenarios, accounts receivable factoring emerges as a powerful financial tool that can act as bridge financing, helping businesses stay afloat and even thrive.
This article explores the concept of accounts receivable factoring, how it works, the benefits and risks, and why it can serve as an effective bridge financing solution for small businesses.
Understanding Accounts Receivable Factoring
Accounts receivable factoring, often simply referred to as “factoring,” is a financial transaction in which a business sells its accounts receivable (unpaid customer invoices) to a third party, known as a factor, at a discount. In return, the business receives immediate cash—typically 70% to 90% of the invoice value—while the factor takes on the responsibility of collecting payment from the customers.
How It Works
The factoring process generally follows these steps:
Invoice Generation: A business provides goods or services to its customers and issues invoices, usually with payment terms of 30, 60, or 90 days.
Sale to Factor: Instead of waiting for the invoice to be paid, the business sells the receivable to a factoring company.
Advance Payment: The factoring company pays a portion of the invoice value upfront—known as the advance rate.
Collection: The factor then collects the payment directly from the customer.
Remainder Payment: Once the customer pays the invoice in full, the factor remits the remaining balance to the business, minus a factoring fee (typically 1% to 5%).
Bridge Financing Defined
Bridge financing refers to a short-term funding solution used to cover immediate cash flow needs until a business secures more permanent financing or receives expected income. It’s often used to “bridge the gap” between a financial need and a future event, such as:
Collecting on outstanding invoices
Receiving a bank loan
Closing a round of equity investment
Selling an asset or property
Bridge financing is crucial in time-sensitive situations and often carries higher costs or stricter terms due to the short-term risk for lenders.
Why Small Businesses Need Bridge Financing
Small businesses often experience erratic cash flows. Even profitable enterprises can run into short-term liquidity crunches. Here are some common scenarios where bridge financing is necessary:
Seasonal businesses ramping up for a busy season but needing cash to buy inventory.
Service providers waiting 30–90 days for customer payments while needing to pay employees weekly.
Manufacturers needing funds to cover production costs before receiving payment for completed goods.
Startups between investment rounds but needing funds to sustain operations.
For many small businesses, traditional loans or lines of credit may not be available, especially if they have limited credit history or lack collateral. This is where accounts receivable factoring can fill the void.
How Accounts Receivable Factoring Serves as Bridge Financing
Accounts receivable factoring fits the definition of bridge financing because it offers immediate liquidity based on income that is expected in the near future. Here’s how factoring acts as a bridge:
1. Accelerating Cash Flow
When a business issues an invoice with net 30, 60, or 90-day terms, the funds are essentially locked up for that duration. Factoring unlocks that value immediately, allowing the business to maintain operations or capitalize on opportunities without waiting.
2. Providing Short-Term Relief
Factoring provides funding until longer-term solutions are realized. For example, a business awaiting a loan approval can use factoring to maintain cash flow in the interim. Once the loan is secured, the business can rely less on factoring.
3. No New Debt Incurred
Bridge loans often come with interest and increase the business’s debt burden. Factoring, on the other hand, is not a loan—it’s a sale of assets. This makes it a particularly attractive option for businesses that want to preserve their balance sheets.
4. Flexibility and Scalability
Unlike bank loans with rigid terms, factoring is inherently flexible. The more invoices a business generates, the more capital it can access. This makes it an ideal bridge for growing businesses scaling their operations.
Advantages of Using Factoring as Bridge Financing
1. Quick Access to Cash
Factoring companies can often approve applications and release funds within a few days. This speed is critical in time-sensitive scenarios where traditional financing may take weeks or months.
2. Improved Cash Flow Management
By converting receivables into immediate cash, businesses can better plan and manage their operational expenses without delays.
3. No Credit Score Requirements
Factoring is based on the creditworthiness of a business’s customers—not the business itself. This makes it viable for new or struggling businesses with strong accounts receivable.
4. Support for Growth Opportunities
If a business receives a large new order but lacks the funds to fulfill it, factoring can provide the necessary capital. This allows businesses to say “yes” to growth rather than turning down opportunities due to cash constraints.
5. Outsourced Collections
Some factoring arrangements include credit checks and collections, saving the business time and resources in chasing down payments.
Disadvantages and Considerations
While factoring offers many benefits, it’s not without downsides. Business owners should consider the following:
1. Cost
Factoring fees can range from 1% to 5% or more per month. Over time, this can be more expensive than traditional financing.
2. Customer Perception
Some customers may view factoring negatively, especially if they are contacted by the factoring company. This can affect customer relationships if not handled properly.
3. Qualification Requirements
Not all invoices are eligible. Factoring companies typically only accept invoices from creditworthy customers, which may limit the amount of capital available.
4. Loss of Control
With non-recourse factoring, the factor assumes the risk of non-payment. However, with recourse factoring, the business must repay the advance if the customer fails to pay—introducing additional risk.
Types of Factoring Arrangements
Understanding the different types of factoring is important when considering it as bridge financing.
1. Recourse vs. Non-Recourse
Recourse Factoring: The business is liable if the customer doesn’t pay the invoice. This is cheaper but riskier.
Non-Recourse Factoring: The factor assumes the risk of non-payment, but charges higher fees.
2. Spot Factoring vs. Full-Service Factoring
Spot Factoring: The business factors a single invoice or a few invoices on a one-time basis.
Full-Service Factoring: The business enters into a long-term relationship with the factor, often factoring all receivables.
3. Disclosed vs. Undisclosed Factoring
Disclosed: The customer is informed that the invoice has been sold to a factor.
Undisclosed: The customer pays the business, which then remits payment to the factor (also known as invoice discounting).
Use Cases: Real-World Examples of Bridge Financing with Factoring
Example 1: A Seasonal Retailer
A toy store generates most of its revenue during the holiday season. In the fall, the business needs to order large quantities of inventory. Since customer invoices from previous sales are still unpaid, the retailer sells them to a factoring company and receives immediate funds to stock up. By December, customer payments are in, and the business is flush with cash again—making factoring a perfect seasonal bridge.
Example 2: A Construction Company
A small construction firm wins a contract to build a commercial property but needs to pay subcontractors and buy materials upfront. Bank financing is unavailable due to limited credit history. The company factors its receivables from a previous job, receives 85% of the invoice value in cash, and uses it to fund the new project while awaiting customer payment.
Example 3: A Tech Startup
A software development company with several corporate clients faces a funding gap between seed and Series A investment rounds. Though it has solid contracts and invoices pending payment in 60 days, it lacks cash for payroll and rent. Factoring those receivables helps the startup survive the interim without taking on high-interest loans or diluting equity.
When Factoring Is the Right Bridge Financing Option
Factoring may be a strategic bridge financing option if:
You have a predictable flow of accounts receivable.
Your customers are creditworthy and pay on time.
You need funds quickly to cover essential operations or fulfill new business.
You want to avoid additional debt or can’t qualify for a bank loan.
You are in a high-growth or seasonal industry that demands immediate working capital.
Selecting a Factoring Partner
Not all factoring companies are created equal. When choosing a partner, small businesses should consider:
Reputation and Experience: Choose a factor with industry experience and positive reviews.
Fee Structure: Understand all costs, including advance rate, factoring fee, and any hidden charges.
Recourse Terms: Know who is responsible in case of customer non-payment.
Flexibility: Can you factor only the invoices you choose?
Customer Service: Will the factor treat your customers professionally and protect your relationships?
Conclusion
Accounts receivable factoring is a powerful and flexible tool for small businesses facing short-term cash flow challenges. As a form of bridge financing, it offers quick access to working capital without the burden of debt or the wait for customer payments. While it comes at a cost and involves handing over some control, the benefits—especially for businesses with steady receivables and creditworthy customers—can far outweigh the downsides.
In an economic landscape where agility is often the key to survival and success, factoring can be the bridge that helps small businesses cross from financial uncertainty to stability and growth.
“The Next Conversation” by Jefferson Fisher focused on improving communication skills, particularly in challenging situations. Drawing on his experiences as a trial lawyer and his personal life, Fisher presents practical strategies for having difficult conversations with greater confidence, control, and connection. Key themes include managing emotional triggers, the importance of pausing to regulate responses, setting boundaries, and reframing conversations to achieve understanding rather than winning arguments. The author emphasizes that effective communication is about connecting with others on a deeper level and prioritizing real growth in relationships.
Executive Summary:
The provided excerpts from Jefferson Fisher’s “The Next Conversation” outline a practical and personal approach to improving conversational skills, focusing on assertiveness, self-control, and genuine connection. The author, a trial lawyer, emphasizes that the book is not about law but about speaking boldly and authentically. Key themes include understanding the “hidden conversation” occurring in others, the importance of personal values as a conversational compass, practical techniques for self-regulation (breathing, quick scans, small talks), the power of strategic pauses, building confidence through assertive language and actions, setting and enforcing boundaries, managing defensiveness, and cultivating connection. The core function for improved communication involves three steps: “Say it with control,” “Say it with confidence,” and “Say it to connect,” focusing on expressing one’s view, needs, and truth.
Main Themes and Key Ideas in Next Conversation
The Nature of Conversation Beyond the Spoken Words:
The author highlights that conversations often have a “hidden conversation” beneath the surface, driven by internal thoughts, feelings, and triggers that the other person is not expressing. Recognizing this “tip of the iceberg” is crucial for understanding disproportional reactions. As Fisher states: “Anytime someone takes a level one conversation and jumps it up to level ten, it’s telling. And what it tells you is that there’s another conversation happening inside that person’s head that you weren’t invited to.”
Communication is more than just transmission of words; it’s about connection. True connection is achieved through understanding, empathy, and vulnerability, rather than simply conveying information.
The Importance of Personal Values in Next Conversation
Values serve as a “compass” in conversations, guiding your approach and ensuring your actions align with what you find important and meaningful.
Instead of solely focusing on the other person, conversational values answer the question: “How will I show up for myself?” and “Who do you want to be seen as after the conversation ends?”
Identifying personal values can be done through self-reflection or by asking close friends or family.
Developing Self-Control and Awareness:
Lack of self-awareness during heated discussions is a significant barrier to effective communication. The author notes the physical phenomenon where the sound of our own voice heard internally differs from how others hear it, illustrating this disconnect. “The sound we hear in our head when we speak actually comes from vibrations through our bones… The sound you hear when you listen to a recording comes from sound waves through the air…” This highlights how we may not “even hear yourself right now?” as others do.
Breathing Techniques: Breathing is presented as a fundamental tool for gaining control and calming the nervous system, particularly in high-stress situations.
Nose Breathing: Encourages slower, deeper breaths by increasing air resistance and pulling airflow deeper into the lungs, preventing signs of ignition (anxiety/stress).
Exhale Longer: Techniques like the “physiological sigh” (double inhale, long exhale) are scientifically proven methods for rapid de-stressing.
Rhythmic Breathing: Patterned breathing (like Box Breathing) lowers heart rate and sharpens mental focus, a technique used by Navy SEALs in combat to control adrenaline and maintain motor skills. “The benefit of rhythmic breathing is a lower heart rate, which can sharpen a soldier’s mental focus.”
Quick Scans: A four-step process (Breathe, Close eyes, Examine, Label the emotion) for checking in with oneself emotionally and physically during a conversation to identify stress and re-align with goals and values. Verbally acknowledging the emotion identified in the quick scan injects transparency and honesty into the conversation.
Small Talks: Concrete, context-tied phrases or positive affirmations used to re-center oneself and build a confident mindset. These are more specific than abstract affirmations and are often rooted in personal history or meaning.
The Strategic Power of Pauses:
Pauses are not just silence; they are a powerful communication tool that indicates confidence and self-control. “When well timed, pauses are a sign of confidence and self-control.”
Pauses gift you with “control over time,” allowing time to reflect, choose your words, assess readiness, observe the other person, and reconsider your approach.
Short Pauses (1-4 seconds): Act like “reading glasses,” adding emphasis to specific words and conveying that what is about to be said has been thought about. Using a short pause before answering questions makes you sound “firmer. More sure of yourself.”
Long Pauses (5-10 seconds): Act as “mirrors,” forcing the other person to reflect on their own words and behavior. They are particularly effective when dealing with rudeness, insults, or dishonesty. “When someone is rude to you, insults you, or belittles you, a long pause is your greatest weapon.” Dishonest people often feel compelled to fill the silence and may unravel their own stories. “It’s in the silence that dishonest people feel as if they have everything to prove.”
Building Confidence Through Assertive Language and Actions:
Confidence is a feeling that arises from experiences and actions, not something that can be simply willed into existence. “Confidence is a feeling. It can’t be summoned at will.”
Using Assertive Language: Removing hesitant or undermining words strengthens your voice. Examples include replacing “I just wanted to touch base…” with “I wanted to touch base…” or “I’m sort of wondering…” with “I’ll…” or “I guess I’m just looking for…” with “I need…” “What assertiveness requires isn’t difficult. You can do this.”
Proving it to Yourself: Acting in line with your stated intentions builds self-reliance and confidence. Telling people what you are going to do and then doing it demonstrates that “when you say something, you mean it.” Conversely, failing to follow through can lead to being “walked over” and establishing a baseline of being “all bark and no bite.”
Expressing Needs Unapologetically: Advocating for yourself and clearly stating your needs is fundamental to assertiveness. Phrases like “I won’t accept that,” “I want fair expectations,” or starting sentences with “I need…” (e.g., “I need a moment,” “I need to speak with you”) empower you to take ownership of your wants.
Replacing Apologies with Gratitude: Over-apologizing diminishes self-worth and suggests you are an inconvenience. Replacing “Sorry I’m late” with “Thank you for your patience” or “Sorry to bother you” with “I appreciate your help” shifts the dynamic and affirms your right to occupy space.
Removing Filler Words and Underselling Phrases: “Ums, ahs, and uhs” signal hesitation, while phrases like “I hate to bother you” or “This might sound stupid” undersell your contribution and put the listener in an awkward position. Cutting these “verbal crutches” makes you sound more intentional and confident. Similarly, avoiding “Does that make sense?” prevents sounding unsure or potentially offending the listener.
Saying “I’m confident”: Beginning statements with “I’m confident” immediately signals assurance to the listener and builds credibility.
Mind Your Tone, Eye Contact, and Cadence:
Tone: Assertive communication balances respect for self and respect for the other person. It is a “steady, even tone,” distinct from aggressive communication which disregards the other person.
Uptalk: Ending declarative sentences with a rising intonation suggests uncertainty and should be avoided to sound more confident. Ending sentences with a downward or neutral inflection is key.
Eye Contact: Maintaining eye contact, particularly at the end of sentences, reinforces your message. Avoiding prolonged eye contact prevents appearing too intense.
Cadence: A measured, clear pace allows words to be fully understood and conveys thoughtfulness and confidence.
Managing Difficult Conversations and Defensiveness:
Responding to Rudeness and Dismissiveness: A strategic approach involves a short pause, followed by a question of intent (e.g., “Did you mean for that to sound rude?”). This technique redirects focus and challenges the other person’s behavior.
Addressing Bad Apologies: The author provides direct counters to common manipulative apologies:
“I was just kidding/joking/messing around”: Counter with “Then be funnier,” “Then find new material,” or “I wasn’t.” This exposes the attempt to minimize harm and shifts responsibility back to the speaker.
Stopping Interruptions: Using the interrupting person’s name loudly and clearly can effectively stop them and keep them engaged rather than defensive.
Understanding Defensiveness: Defensiveness is a natural reaction to perceived threats (social evaluation, personal identity, loss). It builds a “wall” that prevents listening and connection. “Defensiveness Builds a Wall.”
Overcoming Defensiveness:Catch Yourself: Use a conversational breath (pause) to slow down and signal to your body that there is no threat.
Let Their Words Fall: Imagine their words dropping to the ground instead of reaching you, allowing you to decide if they are worth addressing. Use the phrase “Put it down, [your name].”
Get Curious: Shift focus inward and ask probing questions about the source of their behavior or missing information.
Softening “Why” Questions: Replacing “why” with “what,” “when,” or “how” reduces the perceived challenge to autonomy. “It’s not that they’re asking you a question that upsets you. It’s that ‘why’ feels like they’re questioning you.”
Acknowledging First: Validating the other person’s feelings or perspective before presenting your own (“Acknowledge first”) keeps the door open for dialogue and avoids creating a defensive reaction like “Yeah but.”
The Power of Saying “No” and Building Boundaries:
Saying “no” is a complete sentence and a fundamental act of reclaiming your power and prioritizing your well-being. The fear of saying no can be overcome by embracing the potential consequences and trusting that others are more emotionally resilient than you imagine. “Disappointing someone often means you’re doing something right.”
A boundary is not a line, but a “perimeter” – a defined space around what you value. “If you want to know what someone values, look for where the boundary sits.”
Building a boundary involves clearly stating what you “don’t” do (e.g., “I don’t accept how you’re treating me,” “I don’t work on weekends”) or redirecting the conversation (boundaries of presence or purpose).
Boundaries give others an “operator’s manual” on how to communicate with you. Discomfort from a boundary is often a sign that it is working.
Setting Clear Expectations for Conversations:
Before engaging in a significant conversation, it’s beneficial to schedule it and set clear expectations. Ask about the other person’s “capacity” or “bandwidth” (e.g., “Do you have capacity to talk about Monday’s meeting agenda this afternoon?”).
Suggesting a narrow or specific time frame allows both parties to prepare mentally and emotionally.
Avoid vague requests like “Got a second?” as they create uncertainty about the topic and required time investment. Informing someone how much time you need sets clear expectations.
Important Facts/Statistics (from cited studies):
A 2023 study from Stanford Medicine confirmed the powerful benefits of the physiological sigh technique for de-stressing in real time.
Navy SEALs use rhythmic breathing (like Box Breathing) to lower heart rate and sharpen mental focus in combat situations.
Latest studies in neuroscience and psychology confirm that language (word choice) significantly influences emotions, mindset, and reality.
Studies show a psychological link between personal identity and concepts like competence, autonomy, purpose, and values.
Research highlights loss as a fundamental human experience with psychological consequences.
Key Quotes:
“It’s about how to speak boldly, with your chin up, to embrace the vulnerability that comes with laying all your cards on the table.”
“What I became more curious about, however, was the disproportionality of his reaction… what it tells you is that there’s another conversation happening inside that person’s head that you weren’t invited to.”
“Values in conversations serve as your compass, ensuring that your goals set the direction of what you truly find important, fulfilling, and meaningful… your conversational values answer the question, “How will I show up for myself?””
“No, I mean really. You don’t. The sound we hear in our head when we speak actually comes from vibrations through our bones.”
“To slow down your breathing, breathe through your nose… Your nasal passages are of course much narrower than your mouth, so your nose naturally encourages slower, deeper breathing.”
“A 2023 study from Stanford Medicine confirmed powerful benefits associated with a breathing technique known as a physiological sigh, noted as one of the fastest ways to de-stress in real time.”
“If you don’t think your breath has much to do with controlling verbal conflict, then it’s worth looking at what it means to those who’ve mastered it at the furthest extremes of physical conflict. The Navy SEALs consider rhythmic breathing so mission-critical…”
“According to the latest studies in neuroscience and psychology, your language—that is, the actual words you use to form your thoughts—significantly influences your emotions and mindset, and eventually your reality.”
“What’s so powerful about a pause. It gifts you with the ability to control time.”
“When well timed, pauses are a sign of confidence and self-control. More often than not, the person who controls the pace of the conversation is the person most in control of themselves.”
“When someone is rude to you, insults you, or belittles you, a long pause is your greatest weapon.”
“Honest people don’t mind the discomfort of a pause… Dishonest people, on the other hand, typically can’t stand it.”
“Confidence is a feeling. It can’t be summoned at will.”
“What assertiveness requires isn’t difficult. You can do this.”
“You’re proving to yourself that you believe in your own abilities—small, assertive actions that accumulate into experiences that build your confidence.”
“To be more assertive, set your default to stating your needs. Begin sentences with “I need.” This simple shift in language empowers you to take ownership of your wants and to communicate them clearly.”
“Whether you realize it or not, over-apologizing takes a toll on your mindset. You’ll see yourself more as a nuisance or annoyance.”
“When you use these sorts of phrases, you also put a social obligation on the other person to relieve or forgive you… It forces the two of you to have a mini conversation about your insecurity before you even get to your point.” (referring to underselling phrases)
“If I tell you only what words to use and not how they sound, I’m not keeping my promise. What exactly does confidence sound like? It’s a balance. I imagine hearing music through a pair of headphones, when it isn’t too loud in either ear. The sound is balanced.” (referring to tone)
“To sound more confident, end your sentences with a downward or neutral inflection.” (referring to uptalk)
“A boundary isn’t a line. It’s a perimeter.”
“If your boundary creates discomfort for another person, it’s not a sign that the boundary is wrong. It’s a sign that it’s working.”
This briefing document provides a comprehensive overview of the central tenets and actionable strategies presented in the provided excerpts, offering valuable insights into enhancing personal communication and building more confident and assertive interactions.\
Understanding Effective Communication
Study Guide
This study guide is designed to help you review key concepts and techniques discussed in the provided text excerpts.
I. The Nature of Conversation and Argument
Understanding the author’s background and perspective (Prologue).
The difference between winning an argument and fostering connection (Chapter 1).
The importance of values in guiding conversational goals and self-presentation (Why Your Conversations Need Values).
Recognizing and interpreting the “other conversation happening inside” someone’s head (Chapter 1).
The impact of your words on yourself and others (Mindset).
Transmission vs. communication (Transmission vs. Communication).
II. Controlling Your Physical and Psychological Responses
Understanding the physical and psychological triggers that impact communication (Psychological triggers, Physical triggers).
The concept of the “ignition phase” and its effects (Chapter 5, The Gift of a Pause).
The power of breathing to regulate your physiological response (Control the Moment, When your first word is your breath).
Nose breathing vs. mouth breathing (1. To slow down your breathing…).
The importance of longer exhalations (2. To maintain calm…).
Rhythmic breathing techniques (3. To clear your mind…).
The quick scan method for increased self-awareness in conversation (How to do a quick scan).
Steps of a quick scan (1. Breathe…, 2. Close your eyes…, 3. Examine…, 4. Label the emotion…).
Verbally acknowledging your emotional state (By verbally acknowledging…).
III. Building Confidence and Assertiveness
Confidence as a feeling, not a switch (Confidence Is a Feeling).
Strategies for building confidence through language and action:
Removing “just” and other hesitant words (Lesson 1: Cut the “just”).
Proving it to yourself by stating intentions and following through (Lesson 2: Prove it to yourself).
Expressing your needs unapologetically (Lesson 3: Express your needs unapologetically).
Avoiding over-apologizing and using gratitude instead (Lesson 4: Replace apologies with gratitude).
Using clear and concise language (Lesson 5: Be specific).
Removing filler words and verbal crutches (Lesson 6: Remove filler words).
Avoiding underselling yourself and your contributions (Lesson 7: Never undersell).
Cutting excess phrases that clutter assertiveness (Lesson 8: Cut the excess).
Refining your vocabulary (Lesson 9: Upgrade your vocabulary).
Using the phrase “I’m confident” (Lesson 10: Say “I’m confident”).
Mind your tone: achieving balance between respect for self and others (Mind Your Tone).
Avoiding uptalk (Mind Your Tone).
Using eye contact effectively (Eye Contact).
The importance of cadence (Cadence).
IV. Utilizing Silence and Pauses
The value of pauses in controlling the pace and impact of conversation (The Gift of a Pause).
Pauses as a tool for reflection and reconsideration (Time to reflect, Time to reconsider).
How and when to use different types of pauses (How and When to Use Pauses).
Short pauses (1-4 seconds) for emphasis and sounding deliberate (Short pauses are reading glasses).
Long pauses (5-10 seconds) for reflection and as a “mirror” (Long pauses are mirrors).
Recognizing the difference between a long pause and a time-out (Long pauses are mirrors).
V. Handling Difficult Interactions and Setting Boundaries
Responding to rudeness, insults, and belittlement (Chapter 8).
Using a short pause to weigh words (1. Give it a short pause).
Asking questions of intent (2. Ask a question of intent).
Employing long pauses as a “mirror” (Long pauses are mirrors).
Recognizing and responding to different types of bad apologies (Bad Apologies).
The conditional apology (The conditional apology).
The no-apology apology (The no-apology apology).
The no-empathy apology (The no-empathy apology).
The justification apology (The justification apology).
Dealing with interruptions (Interruptions).
Using their name to regain attention (Step 2: Use their name).
Asking for permission to finish (Step 3: Ask for permission).
Learning to say “no” effectively (Saying “No”).
Saying “no” as a complete sentence (No is a complete sentence).
Overcoming the fear of disappointing others (You get over the fear…).
A better way to say “no” than starting with gratitude and ending with “but” (Another problem is…).
Three steps for saying “no” to simple invitations (To start building your confidence…).
Building and enforcing boundaries (How to Build a Boundary).
Boundaries as perimeters, not lines (Defining the perimeter).
Communicating limits clearly (Give others an operator’s manual…).
Boundaries of presence and purpose (Here’s a good rule of thumb…).
The discomfort a boundary creates can be a sign it’s working (If your boundary creates discomfort…).
VI. Strategies for Connecting and Effective Framing
The three steps for building connection: Say it with control, Say it with confidence, Say it to connect (Say it to Connect).
Understanding the concept of “frames” in conversation (CHAPTER 10 Frames).
Identifying conversational spikes and behaviors that hinder connection (The Sound of Your Spikes).
Recognizing and managing defensiveness (Defensiveness Builds a Wall, Here’s how to stop yourself…).
Catching yourself with a conversational breath (1. Catch yourself).
Letting their words fall (2. Let their words fall).
Getting curious about the source of their behavior (3. Get curious).
Replacing “why” questions with “what,” “when,” or “how” (It’s not that they’re asking…).
Acknowledging others’ perspectives first to keep the door open for dialogue (3. Acknowledge first).
Setting clear expectations for conversations by suggesting a time frame or topic (Setting the Expectation).
The importance of meaningful time (While you may like that they suggest…).
How NOT to set aside time for conversation (By the way, here’s how you don’t want to set aside time…).
Quiz
Answer each question in 2-3 sentences.
According to the text, what is the primary difference between “winning” an argument and the approach advocated in the book?
How does the author suggest you can identify the “other conversation” happening inside someone’s head?
Explain the concept of conversational values and their purpose.
Describe the physiological benefits of breathing through your nose during a conversation, as discussed in the text.
What is the purpose of performing a “quick scan” before or during a conversation?
According to the author, how does removing the word “just” affect the assertiveness of a sentence?
Why is over-apologizing detrimental to building confidence, according to the text?
What is the difference in purpose and effect between a short pause (1-4 seconds) and a long pause (5-10 seconds) in conversation?
How does using someone’s name help to interrupt them effectively and maintain connection?
What is the author’s definition of a personal boundary, and how does it differ from simply “drawing a line”?
Answer Key
The author suggests that “winning” arguments is less important than fostering connection and understanding. The focus is on effective communication and self-control rather than a competitive mindset.
You can identify the “other conversation” when someone’s reaction seems disproportionate to the current situation. It indicates hidden thoughts or feelings driving their behavior.
Conversational values act as a compass, guiding your behavior based on what you find important and meaningful. They answer the question of how you will show up for yourself in a conversation.
Breathing through your nose increases air resistance, leading to slower, deeper breaths that prevent signs of the ignition phase. It also pulls air deeper into your lungs using the diaphragm, promoting calm.
A quick scan is used to increase self-awareness during a conversation by checking in with your physical sensations and emotions. It helps you identify tension and label your current feeling.
Removing “just” makes a sentence sound more assertive and less hesitant. It signals that you mean what you are saying and are not trying to minimize your point.
Over-apologizing can negatively impact your mindset by making you see yourself as a nuisance or annoyance. It implies that your presence or contribution is an inconvenience.
A short pause adds emphasis and makes your words sound more deliberate and certain. A long pause provides time for reflection for both parties and can act as a mirror, prompting the other person to reconsider their words.
Using someone’s name catches their attention and can stop an interruption without causing them to become defensive. It helps to maintain an open channel for dialogue compared to more confrontational interjections.
A personal boundary is defined as a perimeter, like a circle or rectangle, which is fully enclosed and represents a defined space unique to its owner. It visually communicates limits and signifies what the person values, unlike a simple line which can be perceived as an endpoint.
Essay Format Questions
Analyze the author’s argument for why confidence should be viewed as a feeling rather than something that can be summoned at will. Discuss the strategies proposed for building confidence through language and action, and evaluate how these strategies contribute to cultivating this feeling.
The text emphasizes the importance of self-control in effective communication, particularly in challenging situations. Discuss the various techniques presented for managing physiological and psychological responses to conflict, such as breathing exercises and quick scans. How do these techniques work together to help an individual regain control?
Explore the multifaceted role of pauses in communication as described in the text. Analyze how different types and lengths of pauses can be used strategically to influence the dynamics of a conversation, convey meaning, and demonstrate self-control.
The author presents personal boundaries as essential for self-respect and effective communication. Discuss the concept of boundaries as “perimeters” and how they are built and enforced. Evaluate the potential impact of well-defined boundaries on interpersonal relationships.
The text identifies several “spikes” or behaviors that hinder connection in conversations, such as defensiveness and personal attacks. Choose two of these spikes and explain the author’s proposed methods for recognizing and countering them. Discuss the underlying principles behind these methods and why they are effective in fostering more constructive dialogue.
Glossary of Key Terms
Accountability of Defensiveness: Recognizing the impulse to blame others and choosing instead to look inward at one’s own reactions and choices.
Assertiveness: The ability to speak boldly, with your chin up, embracing vulnerability, saying what you mean, and meaning what you say, while choosing courage over comfort. It’s about respecting yourself and the other person.
Autonomy Triggers: Psychological triggers related to feeling that your choices or actions are being questioned, threatening your sense of independence.
Boundaries: Perimeters that define a personal space, communicating limits on acceptable behavior and signifying what an individual values.
Boundary of Presence: A boundary that re-centers the conversation by stating why you are there when the other person brings up unrelated issues or tries to distract.
Boundary of Purpose: A boundary that corrects the focus of the conversation by stating what you are there to talk about when the other person raises past issues or attacks your character.
Box Breathing: A rhythmic breathing technique involving inhaling, holding, exhaling, and holding, each for a set count (often four seconds), to promote calm and mental focus.
Cadence: The rhythm and pace of your speech, which influences how your message is received and can convey confidence or uncertainty.
Conditional Apology: An apology that includes a condition or qualification, such as “I’m sorry if I offended you.”
Conversational Breath: A conscious breath taken before speaking, particularly in a heated discussion, to slow down and regain control.
Conversational Values: Principles that guide your behavior and priorities in conversations, acting as a compass to ensure your goals align with what you find important and meaningful.
Cooling Phase: The phase in an argument where the heart rate slows down, and logical thinking begins to return, following the ignition phase.
Defensiveness: A reaction triggered by the perception of threat, leading to a desire to fight against or run from the perceived danger, hindering open communication.
Emotional Flood: The overwhelming influx of emotions during conflict, which can make it difficult to think clearly and respond logically.
Filler Words: Words or sounds like “ums,” “ahs,” and “uhs” that fill gaps in speech, often signaling hesitation or lack of confidence in formal settings.
Frames: The underlying perspectives or structures that influence how individuals perceive and engage in conversations.
Ignition Phase: The initial phase in an argument where the sympathetic nervous system is activated, leading to increased heart rate, faster thinking, and a readiness for fight or flight.
“Just” (as a word to cut): A word that can dilute the assertiveness of a sentence and signal hesitation or a desire to minimize one’s point.
Justification Apology: An apology that attempts to minimize the impact of actions by offering an excuse, such as “I was just kidding.”
Long Pause: A period of silence lasting between five and ten seconds, used for reflection, creating anticipation, and acting as a “mirror” for the other person.
Mindset: The collection of thoughts, beliefs, and attitudes that influence your emotions and behavior, significantly shaped by the words you use.
No-Apology Apology: An apology that has the structure of an apology but lacks genuine remorse or accountability.
No-Empathy Apology: An apology that focuses on the apologizer’s discomfort or feelings rather than acknowledging the impact on the other person.
Other Conversation: The hidden thoughts, feelings, or experiences that are driving someone’s disproportionate reaction in a conversation.
Over-apologizing: Apologizing excessively, which can diminish one’s self-worth and imply taking up too much space.
Pauses: Moments of silence in conversation used strategically to control pace, add emphasis, reflect, and demonstrate self-control.
Personal Identity Threats: Psychological triggers that challenge your sense of self, worth, competence, autonomy, purpose, or values.
Physiological Sigh: A breathing technique involving a double inhalation followed by a long exhale, noted as a fast way to de-stress.
Psychological Triggers: Internal factors that evoke emotional responses in conversation, including social evaluation, personal identity, and loss.
Purpose Triggers: Psychological triggers related to feeling that your sense of purpose or goals are being questioned or undermined.
Quick Scan: A four-step process involving breathing, closing eyes, examining physical sensations, and labeling emotions, used to increase self-awareness during conversation.
Rhythmic Breathing: A method relying on a consistent pattern of inhalations and exhalations to lower heart rate and sharpen mental focus.
Short Pause: A period of silence lasting between one and four seconds, used to add emphasis, sound deliberate, and demonstrate thoughtfulness.
Small Talk (as a mindset tool): A short, concrete phrase tied to context that empowers you and re-centers your mindset, acting like a personalized affirmation.
Social Evaluation Triggers: Psychological triggers related to the fear of negative judgment, rejection, or humiliation in social interactions.
Spikes (Conversational): Behaviors that hinder connection in conversations, such as interrupting, raising your voice, or resorting to personal attacks.
Tactical Breathing: The Navy SEALs’ term for rhythmic breathing used to control physiological responses in high-stress situations.
Time-Out: A period of silence longer than a long pause (over ten seconds), which is no longer considered a strategic pause but a complete disengagement.
Tone: The quality and inflection of your voice, which conveys emotion and attitude and is crucial for assertive communication.
Transmission vs. Communication: Transmission is simply sending a message; communication involves the message being received and understood.
Underselling: Using language that diminishes the value of your contributions or yourself, such as “I hate to bother you” or “This might sound stupid.”
Uptalk: The tendency to end sentences with a rising intonation, making statements sound like questions or signaling uncertainty.
How Trump’s EU Tariff Threats Will Impact Small Businesses
Trump has revived a familiar playbook—threatening tariffs on international trade partners, particularly the European Union (EU). Trump has suggested imposing significant tariffs on EU goods, which he argues would protect American manufacturing and restore trade balances. While such measures may appeal to some domestic industries and political bases, the potential ramifications for U.S. small businesses are far-reaching and complex. For many of these enterprises, Trump’s EU tariff could usher in higher costs, disrupted supply chains, and retaliatory trade measures that could severely impact their ability to grow and compete.
Understanding the Nature of EU Tariffs
Tariffs are essentially taxes on imported goods. When the U.S. imposes tariffs on EU products, the immediate effect is to raise the cost of those imports. The Trump administration previously imposed tariffs on European steel and aluminum, which led to counter-tariffs by the EU on iconic American products like Harley-Davidson motorcycles and bourbon whiskey.
Now, Trump has floated the possibility of broader and more aggressive tariffs, possibly up to 10-30% on all EU imports. This threat has sparked concerns not only among international trading partners but also within the domestic business community, especially small businesses that rely heavily on imported goods, components, or export access to the EU market.
Increased Costs for Import-Dependent Small Businesses
A significant number of U.S. small businesses depend on imported goods—either as finished products or as components used in manufacturing. These include everything from Italian textiles and French wines to German auto parts and Swedish machinery. If tariffs are imposed on these goods, their prices will rise accordingly.
Small businesses, which often operate on tight margins, are less equipped than large corporations to absorb these cost increases. Unlike multinational corporations, small firms typically lack the scale to negotiate better prices or shift to alternate suppliers quickly. The result is either a reduction in profit margins or increased prices passed on to consumers—both of which could damage competitiveness.
Take, for example, a small wine distributor in California that specializes in European vintages. A 20% tariff on French or Italian wines could significantly raise the wholesale cost, forcing the business either to raise prices or reduce offerings—potentially alienating their customer base. This sort of scenario could play out across thousands of small enterprises nationwide.
Supply Chain Disruptions
Beyond increased costs, new tariffs often lead to supply chain instability. Many small U.S. manufacturers source precision tools, machinery, and components from the EU due to their high quality and reliability. Tariffs would not only make these imports more expensive but could also delay shipments as companies scramble to navigate new regulations, customs procedures, or seek alternative suppliers.
These disruptions could be particularly damaging for startups and growth-stage businesses that are trying to scale quickly. Delays in receiving essential components could lead to missed deadlines, unfulfilled orders, and damaged customer relationships.
Furthermore, uncertainty around tariffs can be just as damaging as the tariffs themselves. Businesses may delay investment or expansion decisions due to the unpredictability of trade policy. This “wait and see” approach can stifle innovation and limit job creation in the small business sector.
Retaliation by the EU
Another major concern for U.S. small businesses is the risk of retaliatory tariffs. Historically, the EU has not hesitated to respond to American tariffs with measures of their own. During Trump’s first term, the EU targeted quintessentially American products in states with significant political influence—bourbon from Kentucky, motorcycles from Wisconsin, and jeans from North Carolina.
Retaliatory tariffs could directly affect small American exporters that rely on European markets. According to the Office of the United States Trade Representative, the EU is the U.S.’s second-largest trading partner. Many small businesses export products ranging from agricultural goods to software services to Europe.
If retaliatory tariffs are imposed, these firms could see decreased demand, increased costs for compliance, or complete loss of access to certain markets. For instance, a small cheese producer in Vermont that exports artisan products to France or Germany could suddenly find itself priced out of the market.
Increased Administrative Burdens
Tariffs don’t only increase costs—they also increase complexity. Small businesses often lack dedicated compliance departments and may struggle to navigate the paperwork, classifications, and customs processes associated with tariff changes. In a post-tariff scenario, they may be forced to hire consultants or legal counsel to remain compliant, diverting limited resources away from core business activities.
For companies that ship internationally, changes in Harmonized Tariff Schedule codes, documentation requirements, and import/export licensing can become burdensome. While large corporations may integrate these processes into existing operations, for a ten-person firm, it can be a major logistical and financial strain.
Shifting Consumer Preferences and Market Behavior
If tariffs lead to noticeable price increases on EU goods, consumer behavior may shift as well. For example, customers may move away from higher-end European brands in favor of cheaper, domestically-produced or non-EU alternatives. This shift may benefit some U.S. producers but could hurt small retailers and e-commerce stores that have built their brand identities around offering European products.
Moreover, if economic tensions escalate between the U.S. and EU, it could dampen transatlantic tourism, educational exchanges, and collaborative ventures—all areas where small service providers, tour operators, and educational consultancies may be affected.
Potential Long-Term Shifts in Global Trade Alliances
Beyond the immediate effects, Trump’s EU tariff threats could signal a long-term shift in how the U.S. engages with global trade partners. If the EU and other nations view the U.S. as an unreliable or antagonistic trade partner, they may pivot more firmly toward building stronger ties with China or other emerging markets.
This shift could isolate U.S. small businesses from future opportunities in Europe, particularly in sectors like technology, green energy, and digital services, where EU nations are investing heavily and seeking global partnerships. American small tech firms, for instance, could miss out on lucrative opportunities in digital infrastructure or cybersecurity due to strained transatlantic relations.
Conclusion
Trump’s EU tariff threats may be politically expedient in the short term, appealing to those concerned about deindustrialization or trade deficits. However, the fallout from such a policy could be severe for U.S. small businesses. From rising costs and supply chain disruptions to retaliatory measures and lost market access, the risks are broad and multifaceted.
While the rhetoric of protectionism may aim to shield American businesses, the reality is that in today’s globalized economy, small firms are among the most vulnerable to trade shocks. Policymakers must weigh the long-term economic consequences and consider the voices of small business owners when crafting trade strategies. A thriving small business sector depends not only on access to domestic markets but also on predictable, fair, and open international trade.
The core argument presented is that while Trump’s tariff threats may be intended to protect American manufacturing and address trade imbalances, they pose significant and complex challenges for U.S. small businesses. The source argues that these challenges could severely impact the ability of small firms to grow and compete.
Tariffs as Taxes on Imports: The document clearly defines tariffs as taxes on imported goods, explaining how they directly increase the cost of those imports. The previous imposition of tariffs on EU steel and aluminum and subsequent EU counter-tariffs on American products like Harley-Davidson motorcycles and bourbon whiskey are cited as examples of this dynamic.
Increased Costs for Import-Dependent Small Businesses: A major concern highlighted is the vulnerability of small businesses that rely on imported goods or components. Unlike larger corporations, small firms often lack the resources to absorb increased costs or quickly find alternative suppliers. This can lead to reduced profit margins or higher prices for consumers, damaging competitiveness.
Quote: “Small businesses, which often operate on tight margins, are less equipped than large corporations to absorb these cost increases.”
Quote: “The result is either a reduction in profit margins or increased prices passed on to consumers—both of which could damage competitiveness.”
The example of a California wine distributor specializing in European vintages facing significant price increases due to tariffs is used to illustrate this point.
Supply Chain Disruptions: The source emphasizes that tariffs can lead to instability in supply chains, particularly for small manufacturers relying on high-quality EU components or machinery.
Quote: “Beyond increased costs, new tariffs often lead to supply chain instability.”
Delays in receiving essential components can harm startups and growth-stage businesses by leading to missed deadlines and unfulfilled orders.
Uncertainty surrounding tariff policies is also presented as damaging, potentially delaying investment and expansion decisions.
Risk of Retaliatory Tariffs: The historical tendency of the EU to impose counter-tariffs in response to U.S. measures is a significant concern. These retaliatory tariffs directly impact U.S. small businesses that export to the EU, the U.S.’s second-largest trading partner.
Quote: “Another major concern for U.S. small businesses is the risk of retaliatory tariffs.”
Quote: “Historically, the EU has not hesitated to respond to American tariffs with measures of their own.”
Examples like bourbon from Kentucky and motorcycles from Wisconsin are used to demonstrate how the EU has previously targeted politically influential areas.
Small exporters, from agricultural producers to software services, could face decreased demand or complete loss of market access.
Increased Administrative Burdens: Tariffs add complexity and administrative hurdles for small businesses that often lack dedicated compliance departments. Navigating new regulations, customs procedures, and documentation can be a significant logistical and financial strain.
Quote: “Tariffs don’t only increase costs—they also increase complexity.”
Quote: “For a ten-person firm, it can be a major logistical and financial strain.”
Shifting Consumer Preferences and Market Behavior: Tariff-induced price increases on EU goods could lead to consumers favoring cheaper alternatives, potentially harming small retailers and e-commerce businesses built around offering European products. Escalating economic tensions could also negatively impact transatlantic tourism and collaborative ventures, affecting small service providers.
Potential Long-Term Shifts in Global Trade Alliances: The threat of tariffs could cause the EU and other nations to view the U.S. as an unreliable partner, potentially leading them to strengthen ties with other markets like China. This could isolate U.S. small businesses from future opportunities in the EU, particularly in growing sectors.
Quote: “If the EU and other nations view the U.S. as an unreliable or antagonistic trade partner, they may pivot more firmly toward building stronger ties with China or other emerging markets.”
Conclusion:
The source concludes that while Trump’s tariff threats may serve short-term political goals, the economic consequences for U.S. small businesses are potentially severe and multifaceted. The document stresses that small firms are particularly vulnerable to trade shocks in a globalized economy and argues for policymakers to consider the long-term impacts and the perspectives of small business owners when formulating trade strategies. A thriving small business sector is presented as reliant on predictable, fair, and open international trade, not just domestic market access.
Study Guide: The Impact of Trump’s EU Tariff Threats on Small Businesses
Quiz: Short Answer Questions
What is the fundamental definition of a tariff as described in the source material?
Beyond increasing costs, what is another significant impact of tariffs on supply chains for small businesses?
How have retaliatory tariffs from the EU historically affected specific American products?
According to the source, why are small businesses often less equipped than large corporations to absorb increased costs from tariffs?
What administrative burden do tariffs often place on small businesses?
How might shifting consumer preferences impact small retailers if tariffs are imposed on EU goods?
What “wait and see” approach can result from uncertainty around tariffs, and what is its consequence?
How could a small cheese producer in Vermont be affected by EU retaliatory tariffs?
What long-term shift in global trade alliances could result from continued EU tariff threats?
What does the source suggest policymakers should consider when crafting trade strategies related to tariffs?
Quiz Answer Key
A tariff is essentially a tax on imported goods.
Tariffs can lead to supply chain instability by delaying shipments and making it difficult to find alternative suppliers.
Retaliatory tariffs have historically targeted iconic American products such as Harley-Davidson motorcycles, bourbon whiskey, and jeans.
Small businesses often operate on tight margins and lack the scale to negotiate better prices or quickly shift to alternate suppliers, making them less able to absorb increased costs.
Tariffs increase complexity and administrative burdens, requiring small businesses to navigate paperwork, classifications, and customs processes.
If tariffs lead to noticeable price increases on EU goods, consumer behavior may shift away from these products, potentially hurting small retailers that offer them.
Uncertainty around tariffs can lead businesses to delay investment or expansion decisions, stifling innovation and limiting job creation.
A small cheese producer exporting to Europe could find itself priced out of the market due to retaliatory tariffs.
Continued EU tariff threats could signal a long-term shift where the U.S. is viewed as an unreliable trade partner, leading other nations to strengthen ties with different markets.
The source suggests policymakers must weigh the long-term economic consequences and consider the voices of small business owners.
Essay Format Questions
Analyze the multifaceted ways in which potential EU tariffs under a Trump administration could impact the financial health and operational capabilities of small businesses, drawing specific examples from the provided text.
Discuss the concept of retaliatory tariffs and explain how the historical responses of the EU to U.S. tariffs illustrate the interconnectedness and potential vulnerability of small American exporters.
Evaluate the claim that while protectionism may aim to shield American businesses, in a globalized economy, small firms are among the most vulnerable to trade shocks, using evidence from the source.
Explore the non-monetary impacts of tariff threats on small businesses, focusing on supply chain disruptions, administrative burdens, and the psychological effects of uncertainty.
Consider the potential long-term consequences of escalating trade tensions between the U.S. and the EU on the ability of American small businesses to participate in future global opportunities, particularly in emerging sectors.
Glossary of Key Terms
Tariffs: Taxes imposed on imported goods.
EU (European Union): A political and economic union of European countries.
Supply Chains: The sequence of processes involved in the production and distribution of a commodity.
Retaliatory Tariffs: Tariffs imposed by a country in response to tariffs imposed by another country.
Import-Dependent: Businesses that rely heavily on goods or components sourced from other countries.
Tight Margins: Operating with a small difference between revenue and costs, making businesses more sensitive to price increases.
Scale: The size or extent of a business’s operations, often influencing its ability to negotiate prices or absorb costs.
Administrative Burdens: The requirements and complexities associated with regulations, paperwork, and compliance.
Harmonized Tariff Schedule codes: A standardized system for classifying traded products.
Globalization: The process by which businesses or other organizations develop international influence or start operating on an international scale.
Trade Deficits: The amount by which the cost of a country’s imports exceeds the value of its exports.
Protectionism: The theory or practice of shielding a country’s domestic industries from foreign competition by taxing imports.
The Small Business Administration (SBA) has historically served as a lifeline for entrepreneurs across the United States. By facilitating access to loans, offering training and mentorship programs, and providing disaster relief, the SBA has played a critical role in supporting the country’s economic backbone: small businesses. However, recent federal budgetary decisions and administrative restructuring have led to significant cuts within the agency. These changes are having far-reaching consequences for small businesses, especially those in underserved or rural areas.
Strategic SBA Reorganization or Service Erosion?
In early 2025, the SBA announced a sweeping reorganization initiative aimed at increasing efficiency and aligning the agency more closely with its core missions. Key elements of the plan included a 43% reduction in staff and the decentralization of services from the central office to regional and field locations. The agency maintained that these steps were designed to streamline operations, focus on disaster response and capital access, and eliminate redundant positions created during the COVID-19 pandemic.
While the SBA leadership emphasized that essential services would not be impacted, many stakeholders expressed skepticism. Reducing the workforce by nearly half is likely to limit the SBA’s capacity to respond to the diverse and often urgent needs of small businesses. The decrease in personnel could result in slower loan processing times, fewer outreach initiatives, and diminished ability to provide personalized guidance and mentorship.
Budget Cuts to Core SBA Programs
In addition to organizational restructuring, the SBA has faced deep funding cuts under recent federal budget proposals. These proposed reductions affect multiple programs that are crucial to the vitality and success of small businesses.
Entrepreneurial Development
One of the most significant impacts is to entrepreneurial development programs. Funding reductions threaten the future of Women’s Business Centers, Veteran Business Outreach Centers, and mentorship networks like SCORE. These programs have helped thousands of entrepreneurs gain business knowledge, refine their strategies, and connect with experienced mentors. With fewer resources, their ability to serve communities will inevitably diminish.
Access to Capital in Underserved Areas
Cuts to funding for Community Development Financial Institutions (CDFIs) represent another major setback. CDFIs provide critical capital to minority-owned businesses, startups, and entrepreneurs in economically disadvantaged areas who often struggle to secure traditional financing. Reducing this support could curtail business development in communities already facing economic hardship.
Rural Business Support
Small businesses in rural America may be among the hardest hit. Rural Development programs—formerly bolstered through agencies such as the USDA—have experienced reductions that could jeopardize initiatives like broadband expansion and renewable energy improvements. Without these investments, rural entrepreneurs may face increasing difficulty in competing with their urban counterparts.
Real-World Effects: Entrepreneurs Speak Out
The ramifications of these policy shifts are not merely theoretical; they are being felt on the ground by small business owners across the country.
Jacob Thomas, a third-generation farmer in Kansas, has seen his family’s modest farm struggle after the elimination of federal programs that once purchased produce directly from small farms. This loss of income has led to a 10% drop in revenue, threatening the long-term viability of the operation.
Similarly, small manufacturers and food producers in rural areas have made investments in energy-efficient infrastructure based on the expectation of receiving government rebates and support. With those programs now on hold or dramatically scaled back, these businesses are left shouldering costs they hadn’t planned to bear alone.
Additionally, entrepreneurs from underserved communities report increasing difficulties in accessing capital. Many relied on CDFI loans or SBA microloans to start or expand their businesses. With fewer funds and staff available to process these applications, many find themselves unable to move forward with business plans.
Political Responses and Public Pushback
These cuts have not gone unnoticed on Capitol Hill. Lawmakers from both parties have voiced concern about the potential consequences of reducing SBA resources. Some argue that in an already challenging economic environment, it is shortsighted to cut support for the very entities that generate two-thirds of net new jobs in the U.S. economy.
There is also concern about the SBA’s ability to respond effectively to future disasters. In past crises—from hurricanes to wildfires to the pandemic—the SBA was instrumental in providing emergency funding and guidance. With a smaller workforce and fewer resources, the agency’s capacity to respond quickly and efficiently to future events could be severely compromised.
In response to public and political outcry, some legislators are pushing for targeted reinvestment in programs that have shown a strong return on investment, particularly those aimed at empowering women, veterans, and minority entrepreneurs.
The Road Ahead for SBA
For many small businesses, the future is uncertain. The shift in the SBA’s priorities and the associated cuts require business owners to seek alternative support systems. Community organizations, local chambers of commerce, and state-level small business agencies may need to fill the gap left by the federal government.
Entrepreneurs will also need to become more self-reliant, utilizing digital tools and private networks to find mentorship, financing, and business development resources. However, these options are not equally accessible to all, and the risk is that the gap between well-connected entrepreneurs and those in marginalized communities will continue to widen.
At the same time, small business advocacy groups are mobilizing to push for policy reversals and increased investment. They argue that empowering small businesses is not just a matter of economic development but of social equity and national resilience.
SBA Impact Summary
The SBA has long served as a foundation of support for the entrepreneurial spirit that drives the U.S. economy. However, the agency’s recent restructuring and funding cuts are creating ripple effects that threaten to destabilize small businesses, particularly those that are most vulnerable.
Whether these changes result in long-term improvements in efficiency or lasting damage to the small business ecosystem will depend largely on how the government, private sector, and local communities respond. What is clear, though, is that small businesses are facing a new reality—one that will require adaptability, advocacy, and innovation to navigate successfully.
Is your client experiencing a working capital shortfall, unable to meet immediate funding needs for essential expenditures. With Spot Factoring, they can quickly obtain funding against a single invoice, providing vital liquidity without ongoing factoring obligations.
The provided excerpts from Sam Vander Wielen’s book offer a candid and practical guide to online entrepreneurship, heavily influenced by the author’s personal journey from a dissatisfying legal career to building a successful legal template business. The core message is that entrepreneurship is not a magic fix for personal unhappiness, but rather an opportunity for significant personal growth and the ability to navigate life’s inevitable challenges while building a thriving business. The excerpts highlight the importance of self-awareness, embracing challenges, conducting thorough research (especially regarding demand and supply), strategically building and nurturing an audience (particularly through email marketing), and fostering a strong, community-focused customer experience. Mindset plays a crucial role, with the author addressing common obstacles like perfect timing excuses, impostor syndrome, scarcity mindset, the challenges of being a beginner, and the fear of competition and comparison.
Main Themes and Key Ideas:
Entrepreneurship as a Vehicle for Growth, Not a Happiness Fix:
A central tenet is that starting a business won’t automatically solve personal problems or bring happiness. The title itself, “When I Start My Business, I’ll Be Happy,” is presented as a common misconception.
Instead, entrepreneurship is framed as an opportunity for personal development and confronting one’s “shadow side and flaws.”
Quote:“If you’re disappointed because you thought your business was going to fix your life, I’m sorry to be a downer, but it won’t. What it can do is give you the opportunity to make many facets of your life richer and fuller. It will gift you the opportunity to be a better person, one who faces their fears and shadows.”
The author emphasizes the importance of a healthy sense of self outside of one’s job or business.
Embracing Challenges and Life’s “Speed Bumps”:
The author’s narrative is punctuated by personal difficulties, including a scary flight experience, the disillusionment with her legal career, the passing of both her parents within a short period, and navigating imposter syndrome and other mindset challenges.
These experiences are presented as formative and strengthening, both personally and for her business.
Quote:“Throughout this book, I will share parts of my own story, as well as a few stories from my colleagues, to demonstrate that life’s challenges don’t just make us stronger; they make our businesses stronger, too.”
The author views painful moments as potential “fuel” for action and growth.
The Importance of “Why” – Focusing on Impact and Others:
While personal motivations exist, the author encourages entrepreneurs to define a deeper “why” that extends beyond personal gain.
This outward-focused “why” involves considering the impact on others and the people the business is intended to help.
Quote:“When it comes to defining your why behind starting and running a business, go deeper than what having a business will afford you. How will your business impact others? Who are the people you’re here to help? What do they need help with? What impact will it have on them, the people around them, and the universe as a whole?”
Strategic Planning and Preparation Before “Diving In”:
Contrary to common “start before you’re ready” advice, the author advocates for careful planning and preparation to avoid failed businesses and dashed hopes.
This includes financial preparation (personal budget, start-up expenses, saving), ensuring necessary qualifications/skills, and developing a viable business plan.
Quote:“When it comes to cold plunging, jumping in without thinking is key to success. However, the same is not true when it comes to starting your own business. In this case, it’s crucial to be as prepared as possible and do things right, even if that means going slower than you want to.”
The “foot in both worlds” phase, working a traditional job while building the business, is acknowledged as stressful but valuable for testing ideas and building readiness.
Mindset Obstacles and How to Overcome Them:
A significant portion is dedicated to addressing common “entrepreneur virus” symptoms.
Perfect Timing Excuses: Fear often manifests as believing the timing isn’t right. The author suggests asking practical questions about preparation and recognizing fear’s role in keeping one “safe.”
Impostor Syndrome: This involves doubting one’s abilities and feeling undeserving of success. It’s a recurring challenge throughout the business journey.
Quote:“I still have a little impostor syndrome… It doesn’t go away, that feeling that you shouldn’t take me that seriously. What do I know? I share that with you because we all have doubts in our abilities, about our power and what that power is.” – Michelle Obama (quoted in the text)
The concept of “future-proofing” (acting like the person who runs the business you aspire to have) is offered as a strategy.
Scarcity vs. Abundance Mindset: Scarcity focuses on lack and conservation, while abundance sees limitless possibilities and resources. Recognizing scarcity patterns and practicing gratitude and admiration are suggested for shifting.
Being a Beginner Sucks: Acknowledging the discomfort of being new and emphasizing the value of learning and continuous improvement.
Fear of Competition and Comparison: Discouraging excessive focus on competitors (“cloudy competitors”) as it hinders creativity and fosters comparison.
The Importance of Uniqueness (Personal and Business):
Standing out requires embracing personal quirks and unique business approaches, products, vibes, or methodologies.
Quote:“Honestly, it’s just flat-out boring to see the same person, voice, personality, and viewpoint expressed on the same issues online… Most people don’t want to dress exactly like my mom. But people were envious of how confidently she carried herself. That’s what got people’s attention…”
Businesses should highlight their unique selling propositions, whether it’s a specific skill set, a named methodology, a distinct vibe (e.g., “unstuffy lawyer”), or an innovative product.
Educating the audience on the value of qualified professionals (if applicable) is also a form of differentiation.
Researching Demand and Supply for Business and Product Ideas:
Thorough research is crucial for both the initial business idea and specific products.
Demand research involves confirming that others need and want the product or service, not just the entrepreneur. Methods include online searches (forums, social media), conversation analysis, and attempting to beta sell.
Supply research means understanding existing competition. While competition indicates demand, entrepreneurs must identify their unique differentiators or “hole in the market.”
Quote:“To determine if outside demand exists ask yourself these questions: Are people asking for it? Are people searching for it? Are there conversations happening about it? Are there already other people out there doing something similar (indicating a market exists)?”
Building and Nurturing an Email List as a Core Asset:
Email marketing is presented as a crucial strategy for building an audience and fostering connection.
The author emphasizes the value of data derived from email engagement (open rates, click-through rates, unsubscribes) for informing future content and targeting.
Welcome Sequences: Automated email series are vital for setting expectations, providing immediate value, and sharing “hero stories.”
Weekly Emails: Consistent, valuable content is key to staying “top of mind” and earning trust. These emails should provide value while also centering products as solutions and encouraging engagement.
Quote:“I see my weekly email as a way to stay top of mind and continue earning their trust, respect, and time.”
Branding newsletters with themes and pitching them based on the value provided is recommended.
Creating and Selling Products (including a “Million-Dollar Product”):
The concept of a “million-dollar product” is introduced, emphasizing that success is defined on one’s own terms and doesn’t have to reach that revenue mark.
The process involves researching demand and supply specifically for the product, even if the business is already established.
Minimum Viable Product (MVP): The approach of launching a basic version of a product to test viability before investing heavily in design and features.
Beta Testing: Selling the MVP to a small group at a discount in exchange for feedback is a key step in refining the product.
Analyzing Results: Tracking the tangible outcomes customers achieve with the product is vital for marketing and improvement.
Pricing: Calculating costs, desired profit margins, and the number of sales needed to cover expenses and pay oneself.
Promotions and Sales (Live Launches): Complementing evergreen sales funnels with time-bound promotions or launches using urgency triggers (time, money, bonuses).
The “Olive Garden Effect” – Prioritizing Customer Experience and Retention:
Nurturing existing customers is highlighted as a high-ROI strategy that leads to repeat business and referrals.
Quote:“Treating your customers like they’re the most special part of your business community is crucial to long-term business success. It is so easy to get trapped in a cycle of thinking about how to get new or more clients. But in my experience, nurturing the heck out of your current customers is a strategy that reaps a higher return on investment…”
The “Three R’s” of customer focus are: Retention, Referrals, and Revenue (generated from repeat customers and referrals).
Providing excellent service and creating a sense of community makes customers happy and motivates them to share their positive experiences.
Financial Literacy and Discipline:
The author stresses the importance of understanding business finances from the outset, including tracking expenses, saving for taxes, and building a “business war chest.”
Saving consistently, even small amounts, is emphasized.
The decision of when to pay oneself (“owner’s draw”) and the importance of reinvesting profits are discussed.
Navigating Criticism and Building a Strong Sense of Self:
Receiving feedback and criticism, especially online, is inevitable.
Developing a strong sense of self (“deepening roots”) helps entrepreneurs withstand negativity without being derailed.
Recognizing that harsh criticism often reflects more on the giver than the receiver is a key takeaway.
Taking time for personal interests, setting internal boundaries (regarding self-judgment and comparison), and finding humor are coping mechanisms.
Most Important Ideas/Facts:
Entrepreneurship itself does not guarantee happiness; it’s a vehicle for personal growth.
Embracing life’s challenges strengthens both the individual and the business.
Defining a “why” that focuses on helping others creates a deeper and more connected business.
Careful planning and financial preparation are crucial before launching fully.
Common mindset obstacles (timing, imposter syndrome, scarcity, beginner struggles, comparison) are normal but must be addressed for growth.
Authentic uniqueness (personal and business) is key to standing out in a crowded online space.
Thoroughly researching both demand and supply is essential for viable business and product ideas.
Building and nurturing an email list is a foundational strategy for audience connection and sales.
Adopting a Minimum Viable Product (MVP) approach and conducting beta testing saves time and resources while refining offerings.
Prioritizing existing customers and fostering a community-like experience (the “Olive Garden Effect”) drives long-term success through retention and referrals.
Financial discipline, including saving for taxes and building a “war chest,” is non-negotiable.
Developing a strong sense of self is essential for navigating criticism and maintaining resilience.
In conclusion, Sam Vander Wielen’s book, based on these excerpts, offers a realistic and empowering perspective on online entrepreneurship. It acknowledges the personal and professional challenges inherent in the journey while providing practical strategies for building a sustainable and impactful business grounded in self-awareness, audience connection, and a strong customer focus.
Study Guide: When I Start My Business, I’ll Be Happy
What major life event spurred the author to reflect on the trajectory of her life and career?
How did the author’s boss react initially to her leaving the law firm, and what did she overhear shortly after that impacted her?
What was the author’s first business “misfire” before starting her current legal templates business?
What was the “dreamlike state” the author experienced during an acupuncture appointment that led to her legal templates business idea?
How did the author financially prepare for her exit from her nine-to-five job?
According to the author, why should entrepreneurs aim to define their “why” beyond personal gain?
What is the author’s definition of a “Business War Chest” and why is it important for entrepreneurs?
How does the author define the “entrepreneur virus” and how does she suggest dealing with its symptoms?
What is the “Minimum Viable Product (MVP)” theory in the context of developing a product?
What is the “Olive Garden Effect” and how does the author relate it to business success?
Quiz Answer Key
The author’s near-death experience on a turbulent flight from Amsterdam to Philadelphia caused her to deeply consider her life choices, particularly her dissatisfaction with her legal career.
Her boss initially seemed supportive and congratulated her, but she then overheard him mocking her decision to start a health coaching business, which deeply stung her but also became a catalyst for her.
Before her legal templates business, the author started a health coaching business, which she later shut down after realizing her legal business idea was more viable.
During the acupuncture appointment, the author had a vision of doors flying open, symbolizing the opportunities that would await her if she pursued the legal templates business idea.
She created a detailed financial plan that involved saving for both personal and start-up expenses, and budgeting carefully during the period she worked both her legal job and her business.
Defining their why beyond personal gain helps entrepreneurs create a deeper, more connected business that focuses on the impact they will have on others and the wider community.
A Business War Chest is money set aside from revenue after taxes and expenses, dedicated to reinvesting in future projects and growth within the business.
The “entrepreneur virus” refers to common mindset obstacles like impostor syndrome and scarcity mindset that affect business owners, and the author suggests recognizing them as opportunities for growth and using prescriptions like gratitude and future-proofing.
MVP is the concept of releasing a basic version of a product to the market quickly to test its viability and gather feedback before investing significant time and resources into developing all features.
The “Olive Garden Effect” describes the phenomenon where creating a positive and welcoming customer experience makes customers happy, encourages retention, and naturally leads to word-of-mouth referrals.
Essay Format Questions
Analyze the significance of the turbulent plane ride and the “cheeseburger comment” in the author’s entrepreneurial journey. How did these difficult moments act as catalysts for change and growth?
Discuss the different “mindset obstacles” presented in the text. Choose two that resonate most with you and explain how an entrepreneur can actively work to overcome them based on the author’s suggestions.
Explain the author’s approach to balancing her full-time job with starting her business. What were the key strategies she employed during this transitional period, and what lessons did she learn?
Evaluate the importance of market research (demand and supply) in the author’s process of developing both her initial business idea and her specific products. How did her research inform her decisions and contribute to her success?
Describe the author’s philosophy on providing value to her audience, particularly through email marketing and freebies. How does she strategically use these elements to nurture leads and build a community?
Glossary of Key Terms
Impostor Syndrome: The feeling that one’s successes and achievements are due to luck rather than skill or qualification, often leading to a fear of being exposed as a fraud.
Scarcity Mindset: A belief that there are limited resources (money, time, opportunities) and that one must conserve and be stingy, even if basic needs are met. Can be a self-fulfilling prophecy in business.
Abundance Mindset: The belief that there are more than enough resources available, leading to optimistic, open, and curious decision-making.
Future-Proofing: Making decisions and taking steps based on an imagined ideal future state for your business, rather than solely based on its current size and success.
Hummingbird (Entrepreneurial Trait): Describes an entrepreneur with lots of ideas and a tendency to move quickly from one thing to another.
Jackhammer (Entrepreneurial Trait): Describes an entrepreneur with a focus on sticking with and deeply developing a single idea or project.
Business War Chest: Money set aside from business revenue after taxes and expenses for reinvesting in future projects and business growth.
Gross Revenue: The total income generated by a business before deducting expenses.
Owner’s Draw: Money taken from a business’s profit by the owner for personal use, which is taxable income and not considered a business expense.
Minimum Viable Product (MVP): A basic version of a product released to the market quickly to test its viability and gather feedback before full development.
Beta Testing: Releasing an initial version of a product to a small group of buyers to gather feedback and assess demand before a wider launch.
Content Pillars: Categories or themes an entrepreneur focuses on when creating content for social media to maintain organization, intentionality, and hit different touch points for potential customers.
Live Launch: A real-time sale or promotion in a business with a defined start and end date.
Evergreen Sales Funnel: A continuous, automated sales process that is always available to potential customers, unlike a limited-time live launch.
Welcome Sequence: An automated series of emails sent to a new email subscriber to introduce them to the brand, set expectations, provide value, and share core stories.
Content Upgrade: A freebie offered within a specific piece of content (like a blog post) that is highly relevant to the topic of that content, giving readers a reason to opt-in to an email list.
Olive Garden Effect: A term used to describe the positive cycle generated by creating a great customer experience, leading to customer retention, positive results, and word-of-mouth referrals.
Scope of Practice: The procedures, actions, and processes that a healthcare practitioner is permitted to undertake in keeping with the terms of their professional license. (Used in the text to highlight the importance of staying within one’s qualified area of expertise).
Social Proof: Evidence, typically from customers (testimonials, case studies), that shows potential buyers the effectiveness and value of a product or service.
Customer Retention: The ability of a business to keep its existing customers over a period of time.
Discussion about this video
CommentsRestacks
What Every Small Business Should Know | Chris Lehnes | Factoring Specialist
Questions? Contact Chris Lehnes | 203-664-1535 | clehnes@chrislehnes.com | www.chrislehnes.com
Small Businesses face numerous challenges, among them is the ability to have access to sufficient working capital to meet the ongoing cash obligations of the business.
While this need can be met by a traditional line of credit for businesses which meet all traditional bank lending criteria, many businesses do not meet those standards and require an alternative.
One such option is accounts receivable factoring. With factoring, a B2B or B2G business can quickly convert their accounts receivable into cash.
Many factoring companies focus exclusively on the credit quality of the customer base and ignore the financial condition of the business and the personal financial condition of the owners.
This works well for businesses with traits such as:
Losses
Rapidly Growing
Highly Leveraged
Customer Concentrations
Out-of-favor Industries
Weak Personal Credit
Character Issues
Listen to this podcast to gain a greater understanding of the types of businesses which can benefit from this form of financing.
Versant Funds $30 Million Non-Recourse Factoring Facility to Furniture Manufacturer and Distributor
(May 13, 2025) Versant Funding LLC is pleased to announce it has funded a $30 Million non-recourse factoring facility to a company that manufactures and distributes furniture to major brick-and-mortar as well as on-line retailers.
The factoring company this business had relied upon for many years to meet their working capital needs had decided not to renew their facility. At the time, there was a significant balance outstanding that placed the transaction outside the funding capabilities of most factors. In addition, due to an imminent corporate restructuring, a short-term facility was required.
“Versant’s ability to fund larger transactions than most factoring companies was instrumental in structuring a facility to meet this client’s needs,” according to Chris Lehnes, Business Development Officer for Versant Funding, and originator of this financing opportunity. “Our capital base as well as our flexibility to craft a bespoke factoring solution set us apart from other funding options the company considered.”
About Versant Funding Versant Funding’s custom Non-Recourse Factoring Facilities have been designed to fill a void in the market by focusing exclusively on the credit quality of a company’s accounts receivable. Versant Funding offers non-recourse factoring solutions to companies with B2B or B2G sales from $100,000 to $30 Million per month. All we care about is the credit quality of the A/R.
This document summarizes the key information from a press release detailing Versant Funding LLC’s provision of a $30 million non-recourse factoring facility to a furniture manufacturer and distributor. The facility was established to replace a non-renewed facility from a previous factor, addressing a significant outstanding balance and the need for a short-term solution due to an upcoming corporate restructuring. The press release highlights Versant Funding’s capacity for larger transactions and their flexible approach to tailoring factoring solutions.
Main Themes and Key Ideas/Facts:
Significant Factoring Facility: Versant Funding has provided a substantial $30 million non-recourse factoring facility. This indicates a significant financial commitment and suggests the furniture manufacturer has a substantial volume of accounts receivable.
Addressing a Funding Gap: The facility was necessitated by the previous factoring company’s decision not to renew their agreement. This created a funding challenge for the furniture manufacturer.
Large Outstanding Balance: A crucial factor in this transaction was a “significant balance outstanding” at the time the previous facility was not renewed. This balance was too large for “most factors” to handle, highlighting the scale of the furniture manufacturer’s funding needs.
Need for a Short-Term Solution: The timing of the facility was influenced by an “imminent corporate restructuring,” requiring a short-term financing solution. This suggests the facility serves as a bridge during a period of transition for the furniture manufacturer.
Versant Funding’s Competitive Advantages: The press release emphasizes Versant Funding’s ability to handle larger transactions and their flexibility in structuring solutions. As quoted from Chris Lehnes, “Versant’s ability to fund larger transactions than most factoring companies was instrumental in structuring a facility to meet this client’s needs.” He further adds, “Our capital base as well as our flexibility to craft a bespoke factoring solution set us apart from other funding options the company considered.”
Non-Recourse Factoring Focus: The press release explicitly states that Versant Funding’s facilities are “custom Non-Recourse Factoring Facilities” designed to “fill a void in the market by focusing exclusively on the credit quality of a company’s accounts receivable.” This means Versant assumes the credit risk of the furniture manufacturer’s customers.
Target Market: Versant Funding offers non-recourse factoring to companies with B2B or B2G sales ranging from $100,000 to $30 million per month. The press release reiterates their core focus: “All we care about is the credit quality of the A/R.”
Industry of the Client: The client is identified as a company that “manufactures and distributes furniture to major brick-and-mortar as well as on-line retailers.” This provides context for the type of accounts receivable being factored.
Key Contact: Chris Lehnes, Business Development Officer for Versant Funding, is identified as the originator of this financing opportunity and the contact person for more information. His contact details (203-664-1535 | chris@chrislehnes.com) are provided.
Date of Press Release: The press release is dated May 13, 2025.
Important Quotes:
“Versant Funds $30 Million Non-Recourse Factoring Facility to Furniture Manufacturer and Distributor”
“At the time, there was a significant balance outstanding that placed the transaction outside the funding capabilities of most factors.”
“In addition, due to an imminent corporate restructuring, a short-term facility was required.”
“Versant’s ability to fund larger transactions than most factoring companies was instrumental in structuring a facility to meet this client’s needs,” – Chris Lehnes
“Our capital base as well as our flexibility to craft a bespoke factoring solution set us apart from other funding options the company considered.” – Chris Lehnes
“Versant Funding’s custom Non-Recourse Factoring Facilities have been designed to fill a void in the market by focusing exclusively on the credit quality of a company’s accounts receivable.”
“All we care about is the credit quality of the A/R.”
Conclusion:
The press release highlights Versant Funding’s successful deployment of a significant factoring facility to a furniture manufacturer facing unique funding challenges. The transaction underscores Versant’s capacity to handle large deals, their flexibility in structuring solutions, and their focus on non-recourse factoring based on the creditworthiness of accounts receivable. This appears to be a strategic move by Versant Funding to address a specific market need for companies with substantial accounts receivable that may require more tailored and larger-scale factoring solutions than typically offered.
Understanding the Versant Funding $30 Million Facility
Quiz
What is the primary service that Versant Funding provided to the furniture manufacturer?
What is the maximum monthly sales volume that Versant Funding considers for its non-recourse factoring solutions?
Why did the furniture manufacturer need a new factoring facility?
What was a key challenge in providing the factoring facility to this specific furniture manufacturer?
Who is identified as the Business Development Officer for Versant Funding and originator of this transaction?
What type of factoring facility did Versant Funding provide?
What kind of customers does the furniture manufacturer and distributor sell to?
What does Versant Funding primarily focus on when considering a factoring solution?
According to Chris Lehnes, what sets Versant Funding apart from other funding options?
What was the required term for the facility due to an upcoming corporate event?
Quiz Answer Key
Versant Funding provided a non-recourse factoring facility. This service involves purchasing the company’s accounts receivable to provide immediate working capital.
Versant Funding offers non-recourse factoring solutions to companies with B2B or B2G sales from $100,000 to $30 Million per month. This range defines the scale of businesses they typically serve.
The furniture manufacturer’s previous factoring company decided not to renew their facility. This created a need for the business to find a new source of working capital.
A significant balance outstanding from the previous facility and the need for a short-term facility due to an imminent corporate restructuring were key challenges. These factors required a large and flexible funding solution.
Chris Lehnes is identified as the Business Development Officer for Versant Funding and the originator of this financing opportunity. He was the point person for structuring and facilitating this deal.
Versant Funding provided a non-recourse factoring facility. This means Versant assumes the credit risk of the accounts receivable they purchase.
The furniture manufacturer and distributor sells to major brick-and-mortar as well as on-line retailers. This indicates their customer base consists of established businesses.
Versant Funding primarily focuses exclusively on the credit quality of a company’s accounts receivable. They assess the likelihood of their clients’ customers paying their invoices.
According to Chris Lehnes, Versant Funding’s ability to fund larger transactions and their flexibility to craft a bespoke factoring solution set them apart. These capabilities allowed them to meet the furniture manufacturer’s specific needs.
Due to an imminent corporate restructuring, a short-term facility was required. This timeframe was dictated by the furniture manufacturer’s internal business plans.
Essay Questions
Analyze the strategic advantages for a furniture manufacturer utilizing a non-recourse factoring facility versus traditional bank financing, based on the information provided.
Discuss how Versant Funding’s focus on the “credit quality of a company’s accounts receivable” specifically addresses the needs of businesses like the furniture manufacturer described.
Evaluate the significance of Versant Funding’s capacity to handle a “$30 Million facility” in the context of meeting the working capital needs of larger companies.
Explain the implications of a “short-term facility” requirement for both the furniture manufacturer and Versant Funding in this transaction.
Compare and contrast the challenges and opportunities presented by working with “major brick-and-mortar as well as on-line retailers” from a factoring perspective, as suggested by the source.
Glossary of Key Terms
Factoring Facility: A financial arrangement where a business sells its accounts receivable (invoices) to a third party (a factor) at a discount in exchange for immediate cash.
Non-Recourse Factoring: A type of factoring where the factor assumes the credit risk of the factored invoices. If a customer fails to pay an invoice, the factor is responsible for the loss, not the selling business.
Accounts Receivable (A/R): Money owed to a company by its customers for goods or services that have been delivered or provided but not yet paid for.
Working Capital: The difference between a company’s current assets (like cash and accounts receivable) and its current liabilities (like short-term debts). It represents the funds available for a company’s day-to-day operations.
B2B Sales: Business-to-Business sales, where a company sells its products or services to other businesses.
B2G Sales: Business-to-Government sales, where a company sells its products or services to government entities.
Corporate Restructuring: A significant alteration in a company’s structure, operations, or debt to improve its business or financial situation.
Bespoke Factoring Solution: A factoring arrangement that is customized or tailored to the specific needs and circumstances of a particular client.
China Exports to U.S. Plunge, an Impact From Trump Tariffs
In a development that underscores the shifting dynamics of global trade, China’s exports to the United States have plunged sharply in recent months, a clear sign of the lingering impact from the tariff policies first enacted under Trump.
According to the latest trade data released by China’s General Administration of Customs, Chinese exports to the U.S. fell by over 18% year-over-year in the first quarter of 2025. This marks one of the steepest declines in bilateral trade in recent memory and reinforces the long-term effects of the tariff war initiated during the Trump administration, many of which remain in place despite subsequent leadership changes in Washington.
The Lasting Legacy of Trump-Era Tariffs
The Trump administration, beginning in 2018, imposed a series of escalating tariffs on Chinese goods, citing concerns over intellectual property theft, forced technology transfers, and the growing U.S. trade deficit. In response, China retaliated with its own tariffs on American products, sparking a protracted trade war that disrupted global supply chains and roiled financial markets.
While the two countries signed a “Phase One” agreement in early 2020 to ease tensions, much of the tariff framework has persisted. Over $300 billion in Chinese goods remain subject to elevated U.S. tariffs, creating long-term cost pressures for importers and shifting trade patterns.
“Even though the most aggressive rhetoric has died down, the structural barriers are still very much in place,” says Dr. Karen Lin, a senior fellow at the Peterson Institute for International Economics. “These tariffs are now embedded into the operating assumptions of many multinational firms.”
Supply Chains Are Moving—But Not Always to America
The decline in Chinese exports to the U.S. is not solely a matter of reduced demand. Many U.S. companies have shifted their sourcing strategies, looking to diversify away from China due to both the tariffs and broader geopolitical risks. Countries like Vietnam, Mexico, and India have emerged as alternative manufacturing hubs, absorbing business that once flowed almost exclusively through Chinese factories.
Data from the U.S. Census Bureau shows a corresponding uptick in imports from Southeast Asia and Latin America. For example, imports from Vietnam have surged by over 30% since 2021, while Mexico has become the U.S.’s top trading partner in goods for the first time in decades.
“Supply chains are sticky, but they are not immovable,” notes James Weston, head of global trade strategy at FreightScope Analytics. “The Trump tariffs were the wake-up call. The pandemic and the U.S.–China tech decoupling accelerated the pivot.”
Implications for Chinese Manufacturers
The plunge in exports to the U.S. is placing added strain on Chinese manufacturers, many of whom are already grappling with slowing domestic demand and rising labor costs. While China continues to maintain strong trade ties with other regions—including the European Union, ASEAN countries, and Africa—the U.S. market was historically among its most lucrative.
To mitigate the impact, some Chinese companies have relocated production offshore, either directly or via subsidiaries in tariff-exempt countries. Others are investing in higher-value goods and services to move up the global value chain. Still, the short-term disruptions are palpable.
“Chinese exporters are under pressure from multiple directions,” says Li Zhang, a trade consultant based in Shenzhen. “The U.S. tariffs, while not new, have fundamentally altered expectations and forced a strategic reset.”
A Shift in the Global Trade Order
The plunge in exports also reflects a broader recalibration of the U.S.–China economic relationship. What began as a tariff skirmish has evolved into a multifaceted rivalry encompassing technology, investment restrictions, and national security concerns. Washington’s efforts to limit China’s access to advanced semiconductors and Beijing’s crackdown on foreign businesses have only deepened the divide.
As both countries double down on self-sufficiency—exemplified by China’s “dual circulation” strategy and America’s push for domestic industrial policy—their trade interdependence appears to be waning. This decoupling, though partial, is reshaping global supply chains in ways that will be felt for years.
Looking Ahead
While the Biden administration has maintained most of the Trump-era tariffs, a formal policy review is ongoing. Business groups and economists have urged a reassessment, arguing that the tariffs hurt U.S. consumers and importers more than their intended targets. However, with bipartisan support for a tough-on-China stance, any rollback is likely to be incremental, if at all.
For now, the data tells a clear story: the Trump tariffs have not only endured but fundamentally altered the contours of global trade. The drop in China’s exports to the U.S. is not an isolated incident—it is a bellwether of a new, more fragmented era in global commerce.
Factoring: Working Capital to Survive a Summer of Tariffs
Are supply chain disruptions causing your clients to become hungry for working capital going into the summer months?
Our non-recourse factoring program can quickly advance against Accounts Receivable to provide the funds needed to help absorb the impact of tariffs on all of America’s trading partners.
The Problem: Supply chain disruptions and the impact of tariffs on “America’s trading partners” are creating a need for working capital among businesses.
The Solution: Factoring, specifically non-recourse factoring, is presented as a method to quickly acquire needed funds.
Mechanism: The factoring program involves advancing funds against a company’s accounts receivable.
Target Audience: The program is suitable for Manufacturers, Distributors, and most Service Businesses.
Flexibility and Accessibility: The program is designed to be flexible, with no long-term commitments, and is particularly focused on helping businesses facing challenges that might make traditional financing difficult.
Most Important Ideas/Facts:
Factoring as a Response to Tariffs: The core argument is that factoring can help businesses “absorb the impact of tariffs” by providing necessary working capital.
Non-Recourse Factoring: The program specifically offers non-recourse factoring, which means the factor assumes the risk of non-payment by the client’s customers. This is a significant point for businesses concerned about customer creditworthiness.
Range of Funding: The program offers funding from “$100,000 to $30 Million,” indicating it can cater to a variety of business sizes.
Focus on “Challenging Deals”: Lehnes explicitly specializes in and lists several types of “challenging deals” that they are willing to consider. This is a key differentiator and suggests the program is aimed at businesses that may not qualify for conventional loans.
Quick Access to Funds: The phrasing “quickly advance against Accounts Receivable” implies that accessing funds through this program is a relatively fast process.
Supporting Quotes:
“Are supply chain disruptions causing your clients to become hungry for working capital going into the summer months?” (Highlights the problem)
“Our non-recourse factoring program can quickly advance against Accounts Receivable to provide the funds needed to help absorb the impact of tariffs…” (Presents the solution and its mechanism)
“No Long-Term Commitments” (Emphasizes program flexibility)
“We specialize in challenging deals:” followed by a list of specific difficulties (Highlights the target demographic and program focus)
“…use factoring to survive a summer of tariffs.” (Reinforces the program’s purpose in the context of the prevailing economic climate)
Further Considerations:
While the source is brief, it effectively communicates the value proposition of Lehnes’ factoring program for businesses under pressure from tariffs and supply chain issues. It specifically targets companies facing financial or operational challenges, positioning factoring as an alternative funding source when traditional options may be unavailable. The emphasis on “non-recourse” is a crucial selling point for potential clients. The document is primarily promotional and would require further inquiry to understand the specific terms, fees, and application process.
Factoring: Working Capital to Survive a Summer of Tariffs Study Guide
Quiz
What specific financial challenge facing clients does this article highlight as a potential reason to consider factoring?
What type of factoring program is specifically mentioned in the article?
What is the range of funding typically offered by this factoring program?
Does this factoring program require long-term commitments?
What types of businesses are listed as potential candidates for factoring?
What specific types of “challenging deals” does this factoring specialist claim to handle?
How can factoring help businesses absorb the impact of tariffs?
What is the primary asset advanced against in this factoring program?
Who is the contact person mentioned for inquiries about factoring?
What is one example of a “challenging deal” related to a company’s financial statements?
Quiz Answer Key
The article highlights supply chain disruptions causing clients to be in need of working capital, particularly going into the summer months.
The article specifically mentions a non-recourse factoring program.
The factoring program typically offers funding ranging from $100,000 to $30 million.
No, this factoring program does not require long-term commitments.
Manufacturers, Distributors, and most Service Businesses are listed as potential candidates.
This specialist claims to handle challenging deals such as new businesses, fast-growing companies, leveraged balance sheets, reporting losses, customer concentrations, weak personal credit, and character issues.
Factoring can help businesses absorb the impact of tariffs by providing quick access to funds advanced against Accounts Receivable.
The primary asset advanced against in this factoring program is Accounts Receivable.
The contact person mentioned for inquiries about factoring is Chris Lehnes.
Reporting Losses is one example of a “challenging deal” related to a company’s financial statements.
Essay Questions
Analyze how supply chain disruptions can create a need for working capital and explain how factoring can address this need, particularly in the context of increased tariffs.
Compare and contrast recourse and non-recourse factoring based on the information provided in the article and discuss the potential advantages of a non-recourse program for businesses facing economic uncertainty.
Discuss the types of businesses that are likely to benefit most from factoring, citing examples from the article, and explain why factoring might be a suitable solution for these specific business models.
Evaluate the significance of a factoring specialist’s willingness and ability to handle “challenging deals.” How does this broaden the potential pool of businesses that can utilize factoring?
Explain the process by which factoring provides working capital to a business, focusing on the role of Accounts Receivable in the transaction and how this differs from traditional forms of financing.
Glossary of Key Terms
Factoring: A financial transaction where a business sells its accounts receivable (invoices) to a third party (a factor) at a discount. This provides the business with immediate cash.
Working Capital: The difference between a company’s current assets (like cash and accounts receivable) and its current liabilities (like accounts payable). It’s the capital available to a business for its day-to-day operations.
Tariffs: Taxes imposed by a government on imported or exported goods. Tariffs can increase the cost of goods and impact supply chains.
Supply Chain Disruptions: Events that interrupt the normal flow of goods and services from the point of origin to the point of consumption. This can include issues with production, transportation, or sourcing of materials.
Accounts Receivable: Money owed to a business by its customers for goods or services that have been delivered or rendered but not yet paid for.
Non-recourse Factoring: A type of factoring where the factor assumes the risk of non-payment by the customer. If the customer fails to pay the invoice, the business that sold the invoice is generally not obligated to repay the factor.
Recourse Factoring: A type of factoring where the business that sells the invoice is still responsible for payment if the customer fails to pay. The factor has “recourse” back to the selling business.
Leveraged Balance Sheets: A balance sheet where a company has a significant amount of debt relative to its equity.
Customer Concentrations: A situation where a large portion of a company’s revenue comes from a small number of customers. This can be a risk if one of those major customers experiences financial difficulties or leaves.
Paul Arden’s “It’s Not How Good You Are, It’s How Good You Want To Be” is a provocative and unconventional guide to success, framed through the lens of creative advertising. The core message is that ambition and desire are far more important than innate talent or conventional qualifications. The book champions a mindset that embraces risk, challenges norms, learns from mistakes, and actively seeks criticism. It argues against the pursuit of mediocrity dictated by conventional business practices and encourages individuals to push beyond perceived limitations, not just for the benefit of their work, but for their personal growth and influence within their organizations. The book emphasizes the importance of clear communication, strategic thinking, and understanding underlying motivations (both client’s and one’s own) to achieve impactful and memorable results.
Main Themes and Key Ideas:
Ambition Trumps Talent: This is the central tenet of the book, echoed in the title itself. Arden argues that “Nearly ail rich and powerful people are not notably talented, educated, charming or good-looking,” but rather “aecome rich and arful by wanting to icli and powerful.” The desire to be great is presented as the ultimate driver of success.
Quote: “Talent helps, but it won’t take you as far as ambition. Everybody wants to be good, but not many are prepared to make the sacrifices it takes to be great.”
The Power of Vision and Goals: Having a clear picture of where you want to be is highlighted as a significant asset. The book encourages setting ambitious goals, even those that seem unachievable based on current abilities.
Quote: “Your vision of where or who you want to be is tlie greatest asset you bave.”
Quote: “FIRSTLY you need to aim beyond what you are capable of. You must develop a complété dis regard for where your abilities end. Try to do the things that you’re incapable of.”
Embracing Mistakes and Criticism: Failure and being “wrong” are presented as essential components of the creative and successful process. Seeking criticism rather than praise is advocated as a way to improve and uncover truth.
Quote: “The person who doesn’t make mistakes, is unlikely to make anything.”
Quote: “DO NOT SEEK PRAISE. SEEK CRITICISM… if, instead of seeking approval, you ask, ‘What’s wrong with it? How can I make it better?’, you are more likely to get a truthful, critical answer.”
Quote: “Start being wrong and suddenly anything is possible. You’re no longer trying to be infallible.”
Taking Responsibility: Regardless of external factors, taking full ownership of outcomes is crucial. Blaming others prevents the ability to act and improve.
Quote: “IF YOU are involved in something that goes wrong, never blâme others. Blâme no one but yourself… If you accept responsibility, you are in a position to do something about it.”
Generosity with Ideas: Hoarding knowledge and ideas leads to stagnation. Giving away ideas forces replenishment and attracts more in return.
Quote: “Give away everything you know, and more will corne back to you.”
Quote: “The problem with hoarding is you end up living off your reserves. Eventually you’ll become stale. If you give away everything you hâve, you are left with nothing. This forces you to look, to be aware, to replenish.”
Maximizing the Present Opportunity: Don’t wait for the “perfect” brief or project. The current task at hand is the opportunity to demonstrate ability and learn.
Quote: “DON’T LOOK FOR THE NEXT OPPORTUNITE THE ONE YOU HAVE IN HANDIS THE OPPORTUNITE”
Effective Communication and Presentation: The book stresses the importance of clear and impactful communication, prioritizing the message over cleverness for its own sake. It also advises on how to present ideas effectively, suggesting rough layouts can be more engaging and that presentations should be memorable “shows” rather than dry speeches.
Quote: “Do not put your cleverness in front of the communication.”
Quote: “Instead of giving people the benefit of your wit and wisdom (words), try painting them a picture. The more strikingly Visual your présentation is, the more people will remember it.”
Understanding Client Motivations (Beyond the Brief): Recognizing that clients have personal aspirations and political considerations beyond the stated brief is essential for success.
Quote: “Find out what the client’s real objective is. Ail clients aspire to status.”
Persistence and Doing the “Impossible”: “Don’t take no for an answer” and the idea that “When it can’t be done, do it” are recurring themes. New or unconventional ideas often need to be created and presented to exist and gain acceptance.
Quote: “A NEW idea can be either unfam- iliar, or silly, or both. It can’t be judged by description. It needs to be done (made) to exist.”
Challenging Convention and Seeking External Inspiration: The book advises against following trends or seeking validation through awards. It suggests looking outside one’s immediate industry for genuine originality.
Quote: “DO NOT TRY TO WIN AWARDS… Originality can’t be fashion- able, because it hasn’t as yet had the approval of the committee. Do not try to follow fashion.”
Quote: “To be original, seek your inspir ation from unexpected sources.”
Individual Impact on Company Success: The book empowers individuals at all levels to make a significant difference within their organizations by taking initiative and pushing for excellence.
Quote: “Décidé you are going to make the company great; at least décidé you are going to make a différence.”
Reframing Perceived Negatives: Being fired is presented as a potentially positive career move, and even mistakes in printing are highlighted as fortuitous examples of the book’s message.
Quote: “GETTING FIRED CAN BE A POSITIVE CAREER MOVE. BEING fired often means that you are at odds with your company. It means the job isn’t right for you.”
Most Important Ideas/Facts:
Success is driven by the intensity of your desire and ambition (“It’s Not How Good You Are, It’s How Good You Want To Be”).
Your vision for yourself is your greatest asset.
Mistakes and criticism are essential for learning and improvement.
Taking total responsibility empowers you to change outcomes.
Generosity with ideas leads to replenishment and greater creativity.
Focus on making the current opportunity the best it can be.
Effective communication prioritizes the message over perceived cleverness.
Understanding the client’s true motivations is key to successful outcomes.
New ideas often require you to “do it” yourself before they are sanctioned.
Challenge norms and seek inspiration from unexpected places to achieve originality.
Individuals, regardless of position, can significantly impact their company’s success.
Being “wrong” or unconventional opens possibilities that being “right” (based on past knowledge) does not.
“It’s Not How Good You Are, It’s How Good You Want To Be” is a short but impactful book that serves as a pep talk for anyone seeking to achieve more. It challenges conventional wisdom about talent, education, and risk-taking, instead emphasizing the transformative power of ambition, resilience, and a willingness to defy expectations. It provides practical, albeit sometimes counter-intuitive, advice for navigating creative and business challenges, urging readers to take ownership, embrace the unconventional, and prioritize impactful communication over playing it safe. The book’s direct style and use of advertising as a metaphor make its lessons broadly applicable to anyone looking to stand out and make a difference.
Study Guide: It’s Not How Good You Are, It’s How Good You Want To Be by Paul Arden
Quiz
Instructions: Answer each question in 2-3 sentences based on the provided text.
According to the author, why might someone with only moderate academic success in school be more likely to “make it in life” than someone considered conventionally clever?
What is the author’s perspective on seeking praise for your work, and what does he suggest doing instead?
When something goes wrong on a project, who does the author suggest should take responsibility, and why?
What is the potential negative consequence of hoarding or being secretive with your ideas, according to the text?
How does the author suggest you approach a current project that seems boring or uninteresting?
What is the author’s advice regarding emphasizing negative aspects or knocking the competition in advertising?
What is the suggested benefit of showing a client a rough or scribble layout instead of a highly polished one?
According to the author, where should you seek inspiration for original advertising ideas, and where should you avoid looking?
What does the author mean when he says that “creativity with a precedent” is a common maxim for some clients?
What strategy does the author suggest for improving your “strike rate” when pitching new business to a client?
Essay Format Questions
Please consider the following questions for essay responses, drawing insights from the provided text. Do not provide answers to these questions.
Arden argues that “It’s wrong to be right” and “It’s right to be wrong.” Discuss the reasoning behind this seemingly counterintuitive stance and its implications for innovation and progress as presented in the text.
Analyze the various ways in which Arden suggests navigating difficult client relationships and getting ideas accepted, including addressing their aims, dealing with rejection, and presenting work.
Explore the author’s perspective on the role of mistakes, failure, and risks in the creative and professional process. How does he differentiate between “failure” and a lack of initiative?
Discuss Arden’s views on the concept of “creativity” and how its definition can differ between creative professionals and clients. How does this understanding impact the pitching process?
Examine the importance of presentation and “spin” as discussed by Arden, particularly in the sections “Play Your Cards Right,” “It’s Not What You Know,” “It’s Who You Know,” and “Don’t Give a Speech. Put On a Show.” How do these concepts relate to personal and professional success?
Glossary of Key Terms
Mediocrity: The state or quality of being only average or of moderate quality; not very good.
Excellence: The quality of being outstanding or extremely good.
Ambition: A strong desire to do or achieve something.
Achieve the Unachievable: Aiming beyond perceived capabilities and disregarding limitations to pursue ambitious goals.
Covet (ideas): To desire or want to possess ideas belonging to others, or to be possessive and secretive with one’s own ideas.
Accentuate the Positive: To emphasize or dramatize the good or strong points of a product or service.
Eliminate the Negative: To avoid focusing on or publicizing the shortcomings or the competition.
Precedent: An earlier event or action that is regarded as an example or guide to be considered in subsequent similar circumstances. In the context of creativity, it refers to wanting something similar to what has been done before.
Strike Rate: The percentage or number of times a desired outcome is achieved, specifically in the context of winning new business pitches.
Layout: The arrangement of elements (like text and images) on a page or screen, especially in advertising or publishing.
Suppliers: Individuals or companies that provide goods or services, such as photographers, directors, or printers, who contribute to a creative project.
Awards: Prizes or recognition given for achievement, particularly in fields like advertising, often based on industry consensus or fashion.
Creative Pitch: A presentation given to a potential client to persuade them to hire an advertising agency or creative team.
Slogans: Short and memorable phrases used in advertising or associated with a brand or campaign.
Answer Key for Quiz
The author suggests that conventionally clever people often rely on their past qualifications (facts) and may not possess the same level of desire to succeed (ambition) as those who failed at school but are driven by imagination and a continuous strive for improvement.
The author advises against seeking praise, as people are likely to say nice things rather than be critical. Instead, he suggests actively seeking criticism by asking “What’s wrong with it? How can I make it better?” to identify areas for improvement.
The author believes you should accept total responsibility for something that goes wrong if you were involved, regardless of others’ failings. Taking responsibility puts you in a position to address and potentially fix the problem.
The negative consequence of hoarding ideas is that you end up living off existing reserves and eventually become stale. Giving away ideas forces you to actively seek new ones and replenish your creative well.
The author advises making the current project, no matter how boring it seems, the best you possibly can. This allows for satisfaction, potential learning, and even the opportunity to create an alternative version that meets your creative standards.
The author suggests avoiding knocking the competition because it often serves to publicize them rather than winning sales for your own product or service. He also notes that it is generally an easier approach than highlighting your own positives.
Showing a rough layout encourages the client to use their imagination and become more involved in the process. A polished layout can lead to clients focusing on minor details rather than the core idea.
For original ideas, the author suggests seeking inspiration from unexpected sources, such as outside the world of advertising. He notes that relying solely on other advertising often leads to imitation rather than true originality.
“Creativity with a Precedent” refers to a client’s desire for creative work that they recognize from experience and that is similar to what has been successful before, rather than something completely new or unseen.
To improve your strike rate in pitching, the author suggests finding a simple, memorable slogan that encapsulates what the client wants to feel about their company and making it a central, repeated element of your presentation.
Publication Information:
Title: It’s Not How Good You Are, It’s How Good You Want To Be
Author: Paul Arden
Publisher: Phaidon Press Limited
First Published: 2003
ISBN: 978-0-7148-4337-7
Description: A concise guide offering insights into making the most of oneself, using the creative processes of advertising as a metaphor for business practice. Described as a “pocket ‘bible’ for the talented and timid to make the unthinkable thinkable and the impossible possible.”
Cookie Consent
We use cookies to improve your experience on our site. By using our site, you consent to cookies.
Contains information related to marketing campaigns of the user. These are shared with Google AdWords / Google Ads when the Google Ads and Google Analytics accounts are linked together.
90 days
__utma
ID used to identify users and sessions
2 years after last activity
__utmt
Used to monitor number of Google Analytics server requests
10 minutes
__utmb
Used to distinguish new sessions and visits. This cookie is set when the GA.js javascript library is loaded and there is no existing __utmb cookie. The cookie is updated every time data is sent to the Google Analytics server.
30 minutes after last activity
__utmc
Used only with old Urchin versions of Google Analytics and not with GA.js. Was used to distinguish between new sessions and visits at the end of a session.
End of session (browser)
__utmz
Contains information about the traffic source or campaign that directed user to the website. The cookie is set when the GA.js javascript is loaded and updated when data is sent to the Google Anaytics server
6 months after last activity
__utmv
Contains custom information set by the web developer via the _setCustomVar method in Google Analytics. This cookie is updated every time new data is sent to the Google Analytics server.
2 years after last activity
__utmx
Used to determine whether a user is included in an A / B or Multivariate test.
18 months
_ga
ID used to identify users
2 years
_gali
Used by Google Analytics to determine which links on a page are being clicked
30 seconds
_ga_
ID used to identify users
2 years
_gid
ID used to identify users for 24 hours after last activity
24 hours
_gat
Used to monitor number of Google Analytics server requests when using Google Tag Manager
