Known as a global powerhouse, the oil and gas industry presents a multitude of opportunities for companies who specialize in hauling, moving, cleaning, sandblasting, and more. Understanding how to thrive and succeed, however, not only takes experience and knowledge but qualified guidance as well.
Companies that successfully handle the ups and downs of the industry utilize careful planning, self-control, and effective methods in their operations. That’s why Oilfield Factoring would like to provide you with the following strategies to help you build a solid foundation in a challenging and competitive industry.
Collect Information
For any company to be successful, it’s important to collect and review current industry information on a routine basis. In the oil and gas industry, companies need to stay current on oil prices, drilling activities, and industry trends. Doing so will help you understand and adjust your business accordingly. Influencers to look at include North American Shale Magazine, the Energy Information Agency, S&P Platts RigData, the Oil & Gas Journal, and Rigzone for leading online resources.
Develop Relationships
Developing key relationships with leading professionals in the oil and gas industry is crucial to the success of any business. Knowing who to partner with can make a big difference for companies looking to maintain consistent work. Keep in mind, networking involves careful planning and hard work. However, as long as you aren’t in direct competition, other companies are often good about meeting you halfway in order to benefit both of your businesses. When you do work together, make sure to do your absolute best as word of mouth will go a long way in making your business stand out in the oilfield industry.
Manage Equipment
Because the oil and gas industry fluctuates, managing equipment is a major effort. When the industry is at its peak, purchasing new equipment may seem like the right choice for your business. However, if work is slow, you may want to consider leasing options versus buying if you need to update your equipment. Before you make a decision, it’s important to take into consideration your business finances, workflow, and industry fluctuations when it comes to the future of your oilfield service company.
Dependable Cash Flow
Collecting information, developing key relationships, and managing equipment are necessary for building a successful business. Having available cash flow is just as important when it comes to meeting payroll, managing inventory, and taking advantage of new opportunities. Unfortunately, however, it’s common for businesses to wait 30-60 days or longer to receive invoice payment. This can present a serious problem because businesses often don’t have the ability to wait this long. If a business is unable to manage these expenses, a company can end up juggling payments in order to make ends meet.
While some companies in the oil and gas industry use traditional financing methods, banks often require a lengthy application and approval process. These methods also include routing financial reporting to your lender. Oilfield factoring, however, can provide you with a valuable source of cash flow by speeding up the slow invoice payment process thus saving you precious time and valuable resources. This allows a company to do what they do best – providing quality oilfield services to their customers.
Thriving & Succeeding In the Oilfield Industry
Operating in a continuously fluctuating market – and keeping your head above the water – is never easy. Companies in the oil and gas industry know this better than most businesses. However, by being smart by planning ahead and putting solid foundations in place, you will be able to build a successful business and grow it into a sustainable, profitable enterprise.
Oilfield Factoring
Oilfield Factoring is a leading provider of invoice factoring to oil and gas service companies throughout the United States. We offer customizable factoring programs to fit the individual needs and situations of any company. From water haulers to frac sand trucks and more, we have funded hundreds of millions of dollars in invoices to help our clients succeed in any business environment. If you would like more information, contact us at 1.866.834.7338 to get started today.
