Author: Tom Wheelwright
Summer is here and for many of us that means summer business trips. I love traveling for business. It usually means I'm on my way to speak at a seminar in a great location. But, my least favorite part about business trips is keeping track of all of my receipts.I use to come home from a business trip and find my receipts in various places over the next several days (or weeks!). Some I would find in my wallet, others in my briefcase, more in my coat pocket, some in my car and with all of these, I was still missing receipts!That was until I came up with my system for easy business travel recordkeeping. This system is so simple to use and it maximizes my business travel deductions.Here's how my system for easy business travel recordkeeping works:*Rule #1*Use the Convenience and Leverage of EmailWhen my airfare is booked, the airline sends me an email automatically that has all the information I need for my receipt. I forward that email to my bookkeeper immediately upon receipt. That takes care of the airfare receipt.When I check out from my hotel, I request to have a copy of my bill emailed to me. I forward that email to my bookkeeper immediately upon receipt. That takes care of my hotel receipt.With my airfare and hotel receipt, I have the receipts for the majority of my actual expenses. But most of the receipts from my travel come from the other expenses, like meals, cab fare, cash tips. Here is how I tackle those receipts.*Rule #2*Pack 2 EnvelopesPart of my packing for a business trip includes packing 2 envelopes in my carry on bag. The first envelope I label with my destination, travel dates and "Meals." The other envelope I label with my destination, travel dates and "Other." Any time I get a receipt from a meal, it goes in the "Meal" envelope. Any time I get any other receipt, I put it in the "Other" envelope. After my trip, I give the envelopes to my bookkeeper to record my travel expenses.It's such a simple system, but it works!You may be wondering why I separate my meal receipts. There are 2 reasons I do this.First, with my meal expenses separated, it makes it easier for my bookkeeper to code the expenses properly. My meal expenses are only 50% deductible, but the rest of my business travel is 100% deductible. Separating the two helps ensure that the expenses get coded to separate accounts so only my meals are subject to the 50% limit.The second reason is so I can maximize my deductions. This is explained in Rule #3.*Rule #3*Use Per DiemTo maximize my business travel deductions, I separate my meal receipts AND I use a personal credit card or my personal cash to pay for all of meals while traveling. I do this because it is the easiest way to make sure I maximize my business travel deductions.Here's how I maximize my deduction:When traveling on business, meal receipts are not required in order to deduct a meal expense. The IRS issues per diem rates for meals and these rates can be used for a meal deduction instead of the actual expense.This means I can use either my actual meal expenses or I can use the per diem rates. Of course, I always pick the one that gives me the biggest deduction!I have trained my bookkeeper to compare the total of my actual meal receipts to the per diem allowed. My bookkeeper then determines which provides the greater deduction and records that in my bookkeeping.For example, if my meal receipts total to $125 and the per diem totals to $200, then I can legitimately deduct $200 for meals. This is one of my favorite strategies because I have increased my business deductions without spending any additional cash!Here's how I simplify the recordkeeping:I mentioned that I use a personal credit card or personal cash for my meal expenses while traveling. I do this to make sure my business claims the larger of my actual expenses or the per diem allowed.Once the greater of my actual meal expenses and per diem has been determined, my bookkeeper then completes an expense report that claims the greater amount. My business then reimburses me based on the expense report.Worst case is I get reimbursed the exact amount I spent, but often times, I'm able to get reimbursed more than what I actually spent because the per diem rates are greater. This means my business gets a bigger deduction and my entire reimbursement (even if I am reimbursed more than what I actually spent) is tax free to me!This is my favorite kind of system - it's simple and it maximizes my deductions!
Tuesday, June 24, 2008
Textile Lasers
Author: Ms. Barbara
With the passage of time, the field of textile and its machinery has enhance a lot in many regions of the world. One of the important and most required equipment in textile industry is a textile laser. Textile lasers are used for last more than 30 years. Many companies are meant for making the textile lasers. The textile lasers are very useful for the people who earn from this industry.Textile lasers are basically meant to increase output by pouring less input that is getting more profit by inserting les productive amounts. In past machinery itself took its complete expense and the output wasn't that satisfactory but from the time the textile lasers are invented it has brought new life to the earners and the industry of course by taking less time in performance and yielding better results as compared to its past. The textile lasers are worth than other machine, it is all about how to use it, and one can train its operator with the skills like combination of embroidery and screen printing, heat transfers, and embossing making the substrate the most perfectly done each time. Textile lasers do well randomly like in the screen-printing, the red bright lasers make the positioning more focused on the garment and panels not only this it also indicates the seams, pockets, plackets, and collars before printing. Thus the textile lasers produce a better situation when the operators' works on the dark garment printing and the masks applied on it does not give clear appearance as used earlier times. Textile lasers work for a multiple embellishments and other substrates and this is the part of textile laser. The job done manually could be performed in less sophistication, many of the operator at first used to scratch their heads as they had assignments like printing and repositioning of the substrate to do in fixed time, this makes the results bogus and they are handed back with the same assignment thus causing the productivity loss. Textile lasers here save the time; it is it that has made life of the operator easier to tackle couple of assignments at a time with the use of textile laser.The textile lasers usage made the replacing of the design or rearrangement in the existing pattern easier and convenient thus saving money, the textile lasers make the half of the capital investment and it saves the time and money both. The use of textile laser shortens the wastage, the lasers that are fixed on the machine, performs well and the set-up winds up the work in just couple of time and doesn't lengthen it much. With the textile lasers in use the machines are simplified and this reduces the operator's complex working performance. Textile lasers are best used for the money and time saving, it of course than increases the productivity and benefits at the end of the day by chopping off the setup time. This performance is maintained by the accuracy in its working, the error free working directly promotes time saving. The textile lasers are friendly users; less skilled workers can easily tackle it with its simple eye measurement and guesswork. The textile lasers by some companies is built easier for the less skilled operators so that it takes less time to teach a new operator of it. Almost all textile companies favors its usage, it has solved a bundle of problems that an owner faced before its hiring. Textile lasers have been nowadays replaced by all old machinery. No doubt it is a good replacement of man labor. The textile lasers have few equipments of its own that are provided free with the laser. The screwdriver used to adjust the brightness levels is placed at the back of it and is provided with the textile laser. There are five different projected patterns you can select of your choice. The most famous is the 10" crosshair, than comes the standard Dot pattern with the visibility of up to 21 feet, line with the center dot and the cross of 2". These are innovated according to the utility at different stages.The textile lasers have been helpful for the operator and the garment and it such a device that gives more than it takes.
With the passage of time, the field of textile and its machinery has enhance a lot in many regions of the world. One of the important and most required equipment in textile industry is a textile laser. Textile lasers are used for last more than 30 years. Many companies are meant for making the textile lasers. The textile lasers are very useful for the people who earn from this industry.Textile lasers are basically meant to increase output by pouring less input that is getting more profit by inserting les productive amounts. In past machinery itself took its complete expense and the output wasn't that satisfactory but from the time the textile lasers are invented it has brought new life to the earners and the industry of course by taking less time in performance and yielding better results as compared to its past. The textile lasers are worth than other machine, it is all about how to use it, and one can train its operator with the skills like combination of embroidery and screen printing, heat transfers, and embossing making the substrate the most perfectly done each time. Textile lasers do well randomly like in the screen-printing, the red bright lasers make the positioning more focused on the garment and panels not only this it also indicates the seams, pockets, plackets, and collars before printing. Thus the textile lasers produce a better situation when the operators' works on the dark garment printing and the masks applied on it does not give clear appearance as used earlier times. Textile lasers work for a multiple embellishments and other substrates and this is the part of textile laser. The job done manually could be performed in less sophistication, many of the operator at first used to scratch their heads as they had assignments like printing and repositioning of the substrate to do in fixed time, this makes the results bogus and they are handed back with the same assignment thus causing the productivity loss. Textile lasers here save the time; it is it that has made life of the operator easier to tackle couple of assignments at a time with the use of textile laser.The textile lasers usage made the replacing of the design or rearrangement in the existing pattern easier and convenient thus saving money, the textile lasers make the half of the capital investment and it saves the time and money both. The use of textile laser shortens the wastage, the lasers that are fixed on the machine, performs well and the set-up winds up the work in just couple of time and doesn't lengthen it much. With the textile lasers in use the machines are simplified and this reduces the operator's complex working performance. Textile lasers are best used for the money and time saving, it of course than increases the productivity and benefits at the end of the day by chopping off the setup time. This performance is maintained by the accuracy in its working, the error free working directly promotes time saving. The textile lasers are friendly users; less skilled workers can easily tackle it with its simple eye measurement and guesswork. The textile lasers by some companies is built easier for the less skilled operators so that it takes less time to teach a new operator of it. Almost all textile companies favors its usage, it has solved a bundle of problems that an owner faced before its hiring. Textile lasers have been nowadays replaced by all old machinery. No doubt it is a good replacement of man labor. The textile lasers have few equipments of its own that are provided free with the laser. The screwdriver used to adjust the brightness levels is placed at the back of it and is provided with the textile laser. There are five different projected patterns you can select of your choice. The most famous is the 10" crosshair, than comes the standard Dot pattern with the visibility of up to 21 feet, line with the center dot and the cross of 2". These are innovated according to the utility at different stages.The textile lasers have been helpful for the operator and the garment and it such a device that gives more than it takes.
Mini Marketing Action Plans
Author: Jody Gabourie
Most small business owners do not have marketing plans. This means that their marketing tends to be inconsistent, ineffective and inefficient.Some service professionals do have marketing plans for their business, but fail to actually put it into practice. This really isn't much better than having no plan!The secret to consistently marketing your services and products is to have what I call a "Marketing Action Plan". A plan saves you time and money, brings in more prospects and clients, helps you keep customers, and helps you run a successful and profitable business.As soon as someone mentions anything with the word "plan" in it, business owners usually cringe and most run for the hills! Marketing action plans do not have to be laborious and minutely detailed. In fact, if it's too complicated, none of us will follow it.Creating a marketing action plan and putting it into practice daily does require some thinking, time and commitment. However, it doesn't have to be the overwhelming task that many business owners fear.I strongly believe that the way to tackle anything that appears to be too big and unwieldy is to break it down into smaller steps or chunks. The same applies to a marketing action plan - break it down into individual mini marketing action plans.Marketing encompasses several different areas and corresponding activities - each of which can have a mini marketing plan built around it. Examples of areas are: publicity, public speaking, publishing articles, referral, joint venture, direct mail, promotional, advertising, internet (website, ezine, blog), automated email communication, networking, social media, and so on.Each of these marketing areas can be looked at as a mini plan - with action-oriented steps and activities for you to follow.Here's a simple and quick process to create your marketing action plan, by completing several mini plans:1. take a blank piece of paper and draw a line down the center2. write "Marketing Areas" on the left hand side3. write "Action Steps" on the right hand side4. list the marketing areas you want to focus on down the left column - leaving a few lines between each one5. in the right column write your overall goal for each category6. list each action step needed to achieve your marketing goals7. put dates against each action step8. transfer these dates into your Outlook, PDA or wall calendar9. put the completed marketing action plan somewhere visible and DO IT!To give you a better idea, below is an example of a couple mini marketing action plans:Marketing Category: PublicityGoal: send out a monthly press releaseAction Steps:* identify online press release services* identify online and offline publications/newspapers that appeal to my target group* find out the necessary contact information of publications* figure out newsworthy stories or business events (product or service launch, new location, special event, etc.) and write a press release* submit one press release each month using online and offline avenues* keep track of whether or not your press releases are runMarketing Category: NetworkingGoal: attend a weekly networking eventAction Steps:* choose a couple groups or associations that appeal to your target market* look into ways that you can be a part of these networking groups: volunteer on board, host meetings, help out with newsletter, attend monthly breakfast meetings, etc.* identify key contacts in each group and develop strong connections with them* send out at least one thank you card to someone you meet at each meeting/event* schedule time in your schedule after each networking event to do any follow up phone calls, send out materials and put contact details into your prospect database (or get your Virtual Assistant to do it)The next steps would be to assign dates for completion for each marketing action step and transfer these into whatever system you use to keep track of your to-do lists and daily/weekly activities.Start with about 4 - 6 mini marketing action plans and once you've got these up and running smoothly, then start adding additional marketing activities one at a time. Or you can also make each mini plan more comprehensive by adding additional goals.For example, your internet mini marketing plan could consist of several goals like: do 2 blog postings each week, create and build a subscription list for an online ezine, add 4 new articles to your website monthly, and so on.Remember, the idea is to do your marketing consistently and easily - so make sure you keep the number of mini plans manageable and be sure to take action on the steps you've identified. This is the only way that you'll continue to get new and returning clients on an ongoing basis, and ensure success and sales.
Most small business owners do not have marketing plans. This means that their marketing tends to be inconsistent, ineffective and inefficient.Some service professionals do have marketing plans for their business, but fail to actually put it into practice. This really isn't much better than having no plan!The secret to consistently marketing your services and products is to have what I call a "Marketing Action Plan". A plan saves you time and money, brings in more prospects and clients, helps you keep customers, and helps you run a successful and profitable business.As soon as someone mentions anything with the word "plan" in it, business owners usually cringe and most run for the hills! Marketing action plans do not have to be laborious and minutely detailed. In fact, if it's too complicated, none of us will follow it.Creating a marketing action plan and putting it into practice daily does require some thinking, time and commitment. However, it doesn't have to be the overwhelming task that many business owners fear.I strongly believe that the way to tackle anything that appears to be too big and unwieldy is to break it down into smaller steps or chunks. The same applies to a marketing action plan - break it down into individual mini marketing action plans.Marketing encompasses several different areas and corresponding activities - each of which can have a mini marketing plan built around it. Examples of areas are: publicity, public speaking, publishing articles, referral, joint venture, direct mail, promotional, advertising, internet (website, ezine, blog), automated email communication, networking, social media, and so on.Each of these marketing areas can be looked at as a mini plan - with action-oriented steps and activities for you to follow.Here's a simple and quick process to create your marketing action plan, by completing several mini plans:1. take a blank piece of paper and draw a line down the center2. write "Marketing Areas" on the left hand side3. write "Action Steps" on the right hand side4. list the marketing areas you want to focus on down the left column - leaving a few lines between each one5. in the right column write your overall goal for each category6. list each action step needed to achieve your marketing goals7. put dates against each action step8. transfer these dates into your Outlook, PDA or wall calendar9. put the completed marketing action plan somewhere visible and DO IT!To give you a better idea, below is an example of a couple mini marketing action plans:Marketing Category: PublicityGoal: send out a monthly press releaseAction Steps:* identify online press release services* identify online and offline publications/newspapers that appeal to my target group* find out the necessary contact information of publications* figure out newsworthy stories or business events (product or service launch, new location, special event, etc.) and write a press release* submit one press release each month using online and offline avenues* keep track of whether or not your press releases are runMarketing Category: NetworkingGoal: attend a weekly networking eventAction Steps:* choose a couple groups or associations that appeal to your target market* look into ways that you can be a part of these networking groups: volunteer on board, host meetings, help out with newsletter, attend monthly breakfast meetings, etc.* identify key contacts in each group and develop strong connections with them* send out at least one thank you card to someone you meet at each meeting/event* schedule time in your schedule after each networking event to do any follow up phone calls, send out materials and put contact details into your prospect database (or get your Virtual Assistant to do it)The next steps would be to assign dates for completion for each marketing action step and transfer these into whatever system you use to keep track of your to-do lists and daily/weekly activities.Start with about 4 - 6 mini marketing action plans and once you've got these up and running smoothly, then start adding additional marketing activities one at a time. Or you can also make each mini plan more comprehensive by adding additional goals.For example, your internet mini marketing plan could consist of several goals like: do 2 blog postings each week, create and build a subscription list for an online ezine, add 4 new articles to your website monthly, and so on.Remember, the idea is to do your marketing consistently and easily - so make sure you keep the number of mini plans manageable and be sure to take action on the steps you've identified. This is the only way that you'll continue to get new and returning clients on an ongoing basis, and ensure success and sales.
Set Prices to Deliver Proper Strategic Management of Emerging Technologies
Author: Donald Mitchell
If you are like most executives, you want to create the proverbial better mouse trap. A lot of companies succeed in designing the mousetrap, but don't catch too many mice. Somebody else usually moves the mice first. How can pricing be used to control that situation better?In Silicon Valley and in technical companies everywhere, you hear stories about how Apple and Microsoft "borrowed" from the Xerox Palo Alto Research Center. I remember that period well because our company was a beta test site for the first Xerox in-office computer networks.The sales people kept asking us nervously about whether or not we minded paying the very high prices that Xerox was asking for the STAR system. We kept saying that the quoted price was no limitation, as long as the technology worked. The sales people looked at us incredulously.But we were serious. After the system became to crash whenever it rained (and it rains a lot in Boston), the price suddenly became much too high for us. The equipment was thoughtfully taken back by Xerox.Extremely attractive new technologies that can be the basis of improved business models usually turn out to be very price sensitive. When new technologies are first available, often the only people who can afford them are customers for whom a revolutionary way of operating is now possible for the first time.As others see the technical promise being fulfilled, it simply becomes a substitution pricing decision. Customers prefer the new technology when its price becomes enough lower.A good example of this can be seen in the transitions from one generation of microprocessors to the next. When brand new, the faster chip will often sell for as much as $200 while the chip that is two generations old may have dropped to $30. Yet the old chip also used to sell for $200 -- just about three years before.Most new technologies are about as price elastic as the old technologies that they replace. But occasionally, a new one comes along that causes demand to increase faster when prices decline. Then, pricing becomes helpful for controlling the pace of market development.If prices are kept too high, the market growth declines. If prices are too low, the market explodes, demand cannot be fulfilled, and competitors enter by the dozens. Market share is dramatically lost under such conditions by the current suppliers.On the other hand, by controlling the rate of price change along with one's own capacity, a far-sighted competitor may be able to seize vast quantities of market share. Although product innovation is clearly part of its success, Nokia appears to have used this pricing approach in part to manage the demand for its products and its rapidly increasing market share in digital cellular handsets during the 1990s.Be sure you always know what value you are delivering and how your pricing will affect consumption of a new technology. You will probably have to be fast on your feet with those prices. At a low-enough price, that Xerox network would have stayed with us despite its water problems. How might the world have turned out differently if the price had been a lot lower and the reliability a lot higher?What are the right prices for your better mousetraps?Copyright 2008 Donald W. Mitchell, All Rights Reserved
If you are like most executives, you want to create the proverbial better mouse trap. A lot of companies succeed in designing the mousetrap, but don't catch too many mice. Somebody else usually moves the mice first. How can pricing be used to control that situation better?In Silicon Valley and in technical companies everywhere, you hear stories about how Apple and Microsoft "borrowed" from the Xerox Palo Alto Research Center. I remember that period well because our company was a beta test site for the first Xerox in-office computer networks.The sales people kept asking us nervously about whether or not we minded paying the very high prices that Xerox was asking for the STAR system. We kept saying that the quoted price was no limitation, as long as the technology worked. The sales people looked at us incredulously.But we were serious. After the system became to crash whenever it rained (and it rains a lot in Boston), the price suddenly became much too high for us. The equipment was thoughtfully taken back by Xerox.Extremely attractive new technologies that can be the basis of improved business models usually turn out to be very price sensitive. When new technologies are first available, often the only people who can afford them are customers for whom a revolutionary way of operating is now possible for the first time.As others see the technical promise being fulfilled, it simply becomes a substitution pricing decision. Customers prefer the new technology when its price becomes enough lower.A good example of this can be seen in the transitions from one generation of microprocessors to the next. When brand new, the faster chip will often sell for as much as $200 while the chip that is two generations old may have dropped to $30. Yet the old chip also used to sell for $200 -- just about three years before.Most new technologies are about as price elastic as the old technologies that they replace. But occasionally, a new one comes along that causes demand to increase faster when prices decline. Then, pricing becomes helpful for controlling the pace of market development.If prices are kept too high, the market growth declines. If prices are too low, the market explodes, demand cannot be fulfilled, and competitors enter by the dozens. Market share is dramatically lost under such conditions by the current suppliers.On the other hand, by controlling the rate of price change along with one's own capacity, a far-sighted competitor may be able to seize vast quantities of market share. Although product innovation is clearly part of its success, Nokia appears to have used this pricing approach in part to manage the demand for its products and its rapidly increasing market share in digital cellular handsets during the 1990s.Be sure you always know what value you are delivering and how your pricing will affect consumption of a new technology. You will probably have to be fast on your feet with those prices. At a low-enough price, that Xerox network would have stayed with us despite its water problems. How might the world have turned out differently if the price had been a lot lower and the reliability a lot higher?What are the right prices for your better mousetraps?Copyright 2008 Donald W. Mitchell, All Rights Reserved
How to Make Big Money With Adsense Fast
Author: Mary Ricardoe
The Google adsense program is one of the most popular advertising programs on the internet. Each day more webmasters realize that they can increase their internet revenues by strategically implementing adsense on their websites. Unfortunately most websites do not optimize their potential to make the most money with adsense. The click through rates are so low that the income generated is almost negligible. However this can be fixed very quickly by making a few simple changes. Here are a few adsense optimization tips that can help to increase your overall earnings:Tip 1: Put Ads Above The FoldThe section of your website that is seen when the site first loads without having to scroll down is consider 'above the fold'. This is an important part of your site since it gets plenty of attention. It is not necessary to flood this part with ads but rather you can subtly add a horizontal or vertical link unit mixed in with the rest of the content. Maintaining a good ad to content ratio is important so never flood a site with just ads.Tip 2: Use Well Recognized Link ColorsBlue is the standard for links on the internet. Try to make your site navigation links blue in color so that your adsense links can blend in with the rest of your site.Tip 3: Use the 336x280 Ad UnitThis particular ad unit has a history of good performance as far as click through rates are concerned so use it whenever you can.Tip 4: Wrap Content Around Ad UnitsIf you have a decent length article then consider using an html table and wrap the content around the ads. This should help to dramatically increase click through rates.Tip 5: Use The Maximum Allowable AdsThe adsense program permits 3 ad units and 2 link units. If a page has enough content then be sure to use the maximum number of ads as long as your page does not develop the flea market syndrome which occurs with too much advertising and too little content. If there is an article over 800 words in length then you should be easily able to integrate the maximum allowable ads without turning off your website visitors.Tip 6: Make The URL Color Black Or GreyIt may be best to make the url at the bottom of each ad either black or grey. This is because you want visitors to notice the headline which is created by advertisers to draw clicks so doing this places more focus on the headline of the ad.Tip 7: Draw Relevant AdsIt is important to use adsense in niches that are advertiser heavy otherwise you will not get relevant ads. Also make sure each page is optimized properly with proper keyword meta tags, description meta tags and keyword rich title tags. Also make the url of the page keyword rich also to increase the chances of getting the most relevant ads. Use some of these adsense tips to increase your internet revenues.
The Google adsense program is one of the most popular advertising programs on the internet. Each day more webmasters realize that they can increase their internet revenues by strategically implementing adsense on their websites. Unfortunately most websites do not optimize their potential to make the most money with adsense. The click through rates are so low that the income generated is almost negligible. However this can be fixed very quickly by making a few simple changes. Here are a few adsense optimization tips that can help to increase your overall earnings:Tip 1: Put Ads Above The FoldThe section of your website that is seen when the site first loads without having to scroll down is consider 'above the fold'. This is an important part of your site since it gets plenty of attention. It is not necessary to flood this part with ads but rather you can subtly add a horizontal or vertical link unit mixed in with the rest of the content. Maintaining a good ad to content ratio is important so never flood a site with just ads.Tip 2: Use Well Recognized Link ColorsBlue is the standard for links on the internet. Try to make your site navigation links blue in color so that your adsense links can blend in with the rest of your site.Tip 3: Use the 336x280 Ad UnitThis particular ad unit has a history of good performance as far as click through rates are concerned so use it whenever you can.Tip 4: Wrap Content Around Ad UnitsIf you have a decent length article then consider using an html table and wrap the content around the ads. This should help to dramatically increase click through rates.Tip 5: Use The Maximum Allowable AdsThe adsense program permits 3 ad units and 2 link units. If a page has enough content then be sure to use the maximum number of ads as long as your page does not develop the flea market syndrome which occurs with too much advertising and too little content. If there is an article over 800 words in length then you should be easily able to integrate the maximum allowable ads without turning off your website visitors.Tip 6: Make The URL Color Black Or GreyIt may be best to make the url at the bottom of each ad either black or grey. This is because you want visitors to notice the headline which is created by advertisers to draw clicks so doing this places more focus on the headline of the ad.Tip 7: Draw Relevant AdsIt is important to use adsense in niches that are advertiser heavy otherwise you will not get relevant ads. Also make sure each page is optimized properly with proper keyword meta tags, description meta tags and keyword rich title tags. Also make the url of the page keyword rich also to increase the chances of getting the most relevant ads. Use some of these adsense tips to increase your internet revenues.
How To Qualify For A Good Platinum Credit Card
Author: Kenneth Wade
Everyone likes to pull out that flashy silver and black card that shows their status in society. Even though the name suggests only a millionaire can have one, they're actually not that hard to get. The 2 main things that have to be done are improving your credit score and establishing credit.Your FICO, or Fair Isaac Corporation score should be around 600+ to qualify for a good card. The companies aren't looking so much for high salary as much as they are looking for a good stable paying history. After all, this is where they make their money. Someone who carries a balance and pays more than the minimum payment is more valuable than someone who doesn't let interest accrue. So the best thing you can do is add a couple dollars to your minimum payment on your current card and do this consistently over the course of a year. Every time you do this, the credit card company reports this to FICO and your score increases a small amount. You can check your credit score in the main menu of your online account. If you don't have any cards yet you can check it on different programs online through a search for free credit report.Establishing credit is also important. I would suggest getting a fair credit credit card to start with to build your credit. The interest rates can be kind of high and the limits are low but it doesn't take long for the larger cards to see your record and start sending you offers. Even though it can be tempting to use your entire limit, I would also suggest you only use about 30 percent of the starter card to keep your revolving credit low. This is the amount that someone owes which is also something the card companies track.If you can do these 2 simple things, it should take you no time at all to get your score up and qualify for a good card. I have included a link to a site which offers a good fair credit card to start with if you have been denied a platinum offer. There are also some very good offers for those with established credit histories. The main thing I always look for is annual fee's. A good offer will usually have an interest rate of 10% or below with no annual fee's. Another thing I check for are the rewards. I think gas rebates are an excellent benefit due to the increase in recent gas prices. You can use your card for gas purchases you have to make either way and then get cah back, so it is a no lose situation. The bottom line on getting the card you need though is to keep balances low and payments high and you'll qualify for almost any card available.All rights reserved. Article may be reprinted as long as the content remains intact and unchanged and all links remain active.
Everyone likes to pull out that flashy silver and black card that shows their status in society. Even though the name suggests only a millionaire can have one, they're actually not that hard to get. The 2 main things that have to be done are improving your credit score and establishing credit.Your FICO, or Fair Isaac Corporation score should be around 600+ to qualify for a good card. The companies aren't looking so much for high salary as much as they are looking for a good stable paying history. After all, this is where they make their money. Someone who carries a balance and pays more than the minimum payment is more valuable than someone who doesn't let interest accrue. So the best thing you can do is add a couple dollars to your minimum payment on your current card and do this consistently over the course of a year. Every time you do this, the credit card company reports this to FICO and your score increases a small amount. You can check your credit score in the main menu of your online account. If you don't have any cards yet you can check it on different programs online through a search for free credit report.Establishing credit is also important. I would suggest getting a fair credit credit card to start with to build your credit. The interest rates can be kind of high and the limits are low but it doesn't take long for the larger cards to see your record and start sending you offers. Even though it can be tempting to use your entire limit, I would also suggest you only use about 30 percent of the starter card to keep your revolving credit low. This is the amount that someone owes which is also something the card companies track.If you can do these 2 simple things, it should take you no time at all to get your score up and qualify for a good card. I have included a link to a site which offers a good fair credit card to start with if you have been denied a platinum offer. There are also some very good offers for those with established credit histories. The main thing I always look for is annual fee's. A good offer will usually have an interest rate of 10% or below with no annual fee's. Another thing I check for are the rewards. I think gas rebates are an excellent benefit due to the increase in recent gas prices. You can use your card for gas purchases you have to make either way and then get cah back, so it is a no lose situation. The bottom line on getting the card you need though is to keep balances low and payments high and you'll qualify for almost any card available.All rights reserved. Article may be reprinted as long as the content remains intact and unchanged and all links remain active.
Securing Motorcycle Loans For Bad Credit Individuals - 5 Tips
Author: Susan Willis
The dream of owning a shiny new or used motorcycle is shared by many people, but only a fortunate few are able to afford a good one. The motorcycle is a symbol of freedom, passion, and independence in our post-industrial age. Whether you are looking for the classic look (like a Harley), a touring bike, or a superfast sport bike, the thought of owning your own bike can be tantalizing. Also, in today's world where gas can cost more than $4/gallon and commute times are getting longer, buying a fuel-efficient motorcycle can be a smart financial move as well. All this is true, of course, if you can get the financing you need!If you happen to have a low credit score due to past unpaid bills, bankruptcies, or just a lack of sufficient credit history, securing financing for a motorcycle can be tricky. Fortunately, being what banks call a "bad credit individual" does not mean that you cannot be a "bad boy (or girl) of the road" with your own motorcycle. It is my belief that everyone should have the opportunity to ride a two-wheeler, regardless of their credit rating.Here are 5 tips for securing a motorcycle loan for bad credit individuals:1. Try to boost your credit score as quickly as possible:If your time horizon for buying a new bike is at least 30-60 days out, do what you can in the short term to boost your credit score. There are a number of common-knowledge ways to do so, like contacting creditors to remove past credit glitches from your credit report. There are also a number of other tried-and-true methods for raising your score hundreds of points in as little as a couple of months. Try these techniques to get that extra boost in your score, which could mean hundreds less in annual loan payments if you do decide to get a nicer bike that requires you to finance the deal.2. Check out an in-house dealer financing program:If you are considering financing your motorcycle, it is wise to ask your local dealer about financing options. You might be surprised that they just may approve your loan application - and many have special financing programs for people with less-than-perfect credit histories.3. Consider a personal loan:If you are not interested in raising your credit score or just want to avoid trying to qualify for a motorcycle loan (which can be considered high-risk by many lenders), consider getting a personal loan to finance your purchase. Many lenders have special personal loan programs for bad credit individuals. The great thing about these loans is that you do not have to report how you will using the money - you can use it however you want, including to buy a new motorcycle.4. Expect higher interest rates:By now it should be obvious that lenders willing to lend money to people with poor credit are going to ask them to pay higher interest rates during loan payback. Suggestion: find an online loan calculator and plug in different interest rates with different loan principle combinations and payment horizons to see how your monthly payments will vary. Remember than even increasing your credit score by 50-100 points can mean a significant monthly savings for you (see above).5. Find lenders and apply online:If you are looking to go personal loan route, on the other hand, you can find many lenders online willing to extend you a personal loan without major collateral commitments. Rather than initially requesting quotes from individual lenders, I suggest you visit a lending aggregator Web site that give you the information for multiple bad credit lenders all in one place so that you can pick and choose the right one for you.With all of the loan options available to you, it is wise to do your homework and look at all of the possibilities before settling on one in particular. Once you do get that bike of your dreams, please be safe out there and I hope to see you out on the road!
The dream of owning a shiny new or used motorcycle is shared by many people, but only a fortunate few are able to afford a good one. The motorcycle is a symbol of freedom, passion, and independence in our post-industrial age. Whether you are looking for the classic look (like a Harley), a touring bike, or a superfast sport bike, the thought of owning your own bike can be tantalizing. Also, in today's world where gas can cost more than $4/gallon and commute times are getting longer, buying a fuel-efficient motorcycle can be a smart financial move as well. All this is true, of course, if you can get the financing you need!If you happen to have a low credit score due to past unpaid bills, bankruptcies, or just a lack of sufficient credit history, securing financing for a motorcycle can be tricky. Fortunately, being what banks call a "bad credit individual" does not mean that you cannot be a "bad boy (or girl) of the road" with your own motorcycle. It is my belief that everyone should have the opportunity to ride a two-wheeler, regardless of their credit rating.Here are 5 tips for securing a motorcycle loan for bad credit individuals:1. Try to boost your credit score as quickly as possible:If your time horizon for buying a new bike is at least 30-60 days out, do what you can in the short term to boost your credit score. There are a number of common-knowledge ways to do so, like contacting creditors to remove past credit glitches from your credit report. There are also a number of other tried-and-true methods for raising your score hundreds of points in as little as a couple of months. Try these techniques to get that extra boost in your score, which could mean hundreds less in annual loan payments if you do decide to get a nicer bike that requires you to finance the deal.2. Check out an in-house dealer financing program:If you are considering financing your motorcycle, it is wise to ask your local dealer about financing options. You might be surprised that they just may approve your loan application - and many have special financing programs for people with less-than-perfect credit histories.3. Consider a personal loan:If you are not interested in raising your credit score or just want to avoid trying to qualify for a motorcycle loan (which can be considered high-risk by many lenders), consider getting a personal loan to finance your purchase. Many lenders have special personal loan programs for bad credit individuals. The great thing about these loans is that you do not have to report how you will using the money - you can use it however you want, including to buy a new motorcycle.4. Expect higher interest rates:By now it should be obvious that lenders willing to lend money to people with poor credit are going to ask them to pay higher interest rates during loan payback. Suggestion: find an online loan calculator and plug in different interest rates with different loan principle combinations and payment horizons to see how your monthly payments will vary. Remember than even increasing your credit score by 50-100 points can mean a significant monthly savings for you (see above).5. Find lenders and apply online:If you are looking to go personal loan route, on the other hand, you can find many lenders online willing to extend you a personal loan without major collateral commitments. Rather than initially requesting quotes from individual lenders, I suggest you visit a lending aggregator Web site that give you the information for multiple bad credit lenders all in one place so that you can pick and choose the right one for you.With all of the loan options available to you, it is wise to do your homework and look at all of the possibilities before settling on one in particular. Once you do get that bike of your dreams, please be safe out there and I hope to see you out on the road!
Grocery Marketing Ploys: Avoid the Tricks, Get the Treats
Author: Bradlley Mckoy
How many times have you strayed away from your budget by buying two packs of soda because of an offer to save 20% if you buy two? It's just an extra buck or so, you tell yourself. A dollar past your budget may not be much, but with this habit of buying-more-to-save-more, there is a danger of you mishandling your budget for the week, which might translate to bigger financial blunders.Grocery stores know just what to do to make you buy more, and sometimes they are not so honest. Know how to identify them so you can avoid being tricked off your budget. The following are some of the most common tricks grocery stores resort to in order to boost their profits, as well as some solutions to help you stick to your budget.Bargains and SalesHave you ever bought something you don't really need just because they're on sale? You sacrifice a small part of your budget and tell yourself that it's okay. After all, you bought it at a fraction of its original price. Not! You should know that the comparison of prices - the original and the sale price - is often manipulated, with the original price inflated. People rush to buy items because they think they're saving much by the doing so when in reality, they don't save anything but a penny or two. So the next time your see a big bargain banner, don't be fooled by the comparison price. Take the item's original price, as well as its sale price and compare with similar items to check if the items really are on sale. Establishing a base knowledge of regular priced items will help you verify whether the sale is indeed a bargain.The Numbers GameA sticker saying "Get 5 for only $5" or "Buy Two, Take One Free" may sound appealing. But before you grab those items, ask yourself: "How many of these do I really need?" There is no use buying five items when you only need one.Ask the grocer if you can purchase the item on the sale amount - that is, $1 each - without having to buy all five. Sometimes, this is allowed, but grocers do not advertise it just so you buy more. Also, do get a hold on the unit price, so you know if there are actual savings.Free SamplesFree samples are supposed to be just that - free. But why people feel as though they are indebted or obligated to purchase the product after getting a free sample escapes logic.The next time a sales agent approaches to hand you a free sample, try to enjoy it guilt-free! But if you have a feeling that you'll have a difficulty not purchasing from the agent after the free sample, just refuse the free item.These are just some of the most popular marketing strategies used in grocery stores. But whatever marketing ploy you encounter, the trick is to simply relax and inspect. Also, don't forget to bring your grocery list and to stick to it. Bringing a calculator will also be a good idea so you can keep tabs on the amount of your purchases even before you get to the counter.You should also have a couple of wallets or money clips, so that you can take a separate one with you for when you buy your groceries. Having a separate money clip will make it easier for you to bring just the budgeted amount and to leave your cards at home so you avoid unplanned purchases.
How many times have you strayed away from your budget by buying two packs of soda because of an offer to save 20% if you buy two? It's just an extra buck or so, you tell yourself. A dollar past your budget may not be much, but with this habit of buying-more-to-save-more, there is a danger of you mishandling your budget for the week, which might translate to bigger financial blunders.Grocery stores know just what to do to make you buy more, and sometimes they are not so honest. Know how to identify them so you can avoid being tricked off your budget. The following are some of the most common tricks grocery stores resort to in order to boost their profits, as well as some solutions to help you stick to your budget.Bargains and SalesHave you ever bought something you don't really need just because they're on sale? You sacrifice a small part of your budget and tell yourself that it's okay. After all, you bought it at a fraction of its original price. Not! You should know that the comparison of prices - the original and the sale price - is often manipulated, with the original price inflated. People rush to buy items because they think they're saving much by the doing so when in reality, they don't save anything but a penny or two. So the next time your see a big bargain banner, don't be fooled by the comparison price. Take the item's original price, as well as its sale price and compare with similar items to check if the items really are on sale. Establishing a base knowledge of regular priced items will help you verify whether the sale is indeed a bargain.The Numbers GameA sticker saying "Get 5 for only $5" or "Buy Two, Take One Free" may sound appealing. But before you grab those items, ask yourself: "How many of these do I really need?" There is no use buying five items when you only need one.Ask the grocer if you can purchase the item on the sale amount - that is, $1 each - without having to buy all five. Sometimes, this is allowed, but grocers do not advertise it just so you buy more. Also, do get a hold on the unit price, so you know if there are actual savings.Free SamplesFree samples are supposed to be just that - free. But why people feel as though they are indebted or obligated to purchase the product after getting a free sample escapes logic.The next time a sales agent approaches to hand you a free sample, try to enjoy it guilt-free! But if you have a feeling that you'll have a difficulty not purchasing from the agent after the free sample, just refuse the free item.These are just some of the most popular marketing strategies used in grocery stores. But whatever marketing ploy you encounter, the trick is to simply relax and inspect. Also, don't forget to bring your grocery list and to stick to it. Bringing a calculator will also be a good idea so you can keep tabs on the amount of your purchases even before you get to the counter.You should also have a couple of wallets or money clips, so that you can take a separate one with you for when you buy your groceries. Having a separate money clip will make it easier for you to bring just the budgeted amount and to leave your cards at home so you avoid unplanned purchases.
Forex Money Management Will Increase Your Profits
Author: Ray Caran
Money management is critical because it shows the difference between winners and losers. It has been proven that if 100 traders start their trading program using a system with 60% winning odds, only 5 of those traders will be in profit at the end of the year. Think about that for a moment.Even though you start with 60% winning odds 95% of traders will lose because of their Poor Money Management.Money management is the most significant part of any trading system. Most of traders don't understand how important it is. It's very important for you to understand the concept of money management and trading decisions. Money management represents the amount of money you are going to invest on one trade and the risk your going to accept for this trade. There are many, many different money management strategies. Preserving your balance from high risk exposure is the main objective. You must understand what the following term means. Core EquityCore equity = Starting balance - Amount in open positions. If you have a balance of $20,000 and you enter a trade with $2,000 then your core equity is $18,000. If you enter another $2,000 trade, your core equity will be $16,000. When you trade without sound money management rules, you are in fact gambling with your investment. You are not looking at the long term possible on your investment. Rather you are only looking for that quick high return. Sound money management rules will not only protect your investment, but they will make you very profitable in your investing future. People go to Las Vegas, Atlantic City or New Orleans to gamble hoping to win a big jackpot. We all know people who have won and won big. The question might be how are casinos still making money? In the long run, casinos are still profitable because they take in more money from the people that don't win. Like attempting to lose weight and working out, money management is something that most traders say they practice Money Management but few truly practice. Money management is unpleasant because it forces traders to constantly monitor their positions and to take necessary losses. It is difficult for most people to do that constantly. What is the Percentage Risk Method?The percentage risk method aims to risk the same percentage of your cash float (not the same trade size) for each trade. This method assumes that you are aware of:1. The stop loss size of the trade2. The percentage risk (of your unleveraged cash float), that you want to risk per trade.The percentage risk method states that there will be a given percentage of your cash that is at risk per trade. Before you know what is at risk in a trade you need two bits of information: the stop loss size for that trade, and the percentage risk that you've chosen in your investment program.Assume that you chose a percentage risk of 4% of your cash float. If your cash float is $10,000, this means that you want to risk 4% of $10,000 per trade, which is $400. So with every trade, the maximum you would be willing to lose would be $400.With this chosen percentage, it would take you 25 losses in a row before you lose your entire float (25 x 4% = 100%). If your system is a good one, then 25 losses in a row would be highly unlikely.On the other hand, if the risk chosen was 2%, then it would take 50 rather than 25 losing trades in a row to lose the entire float. The number of losing trades required to lose the float decreases as you increase the percentage risk.Forex money management is a way of life for the prudent investor. Practice money management and you just might be one of 5 out of 100 that will be in a position to make money from Forex Trading.Do further research and you might look into one of those amazing automatic Forex Trading Programs.
Money management is critical because it shows the difference between winners and losers. It has been proven that if 100 traders start their trading program using a system with 60% winning odds, only 5 of those traders will be in profit at the end of the year. Think about that for a moment.Even though you start with 60% winning odds 95% of traders will lose because of their Poor Money Management.Money management is the most significant part of any trading system. Most of traders don't understand how important it is. It's very important for you to understand the concept of money management and trading decisions. Money management represents the amount of money you are going to invest on one trade and the risk your going to accept for this trade. There are many, many different money management strategies. Preserving your balance from high risk exposure is the main objective. You must understand what the following term means. Core EquityCore equity = Starting balance - Amount in open positions. If you have a balance of $20,000 and you enter a trade with $2,000 then your core equity is $18,000. If you enter another $2,000 trade, your core equity will be $16,000. When you trade without sound money management rules, you are in fact gambling with your investment. You are not looking at the long term possible on your investment. Rather you are only looking for that quick high return. Sound money management rules will not only protect your investment, but they will make you very profitable in your investing future. People go to Las Vegas, Atlantic City or New Orleans to gamble hoping to win a big jackpot. We all know people who have won and won big. The question might be how are casinos still making money? In the long run, casinos are still profitable because they take in more money from the people that don't win. Like attempting to lose weight and working out, money management is something that most traders say they practice Money Management but few truly practice. Money management is unpleasant because it forces traders to constantly monitor their positions and to take necessary losses. It is difficult for most people to do that constantly. What is the Percentage Risk Method?The percentage risk method aims to risk the same percentage of your cash float (not the same trade size) for each trade. This method assumes that you are aware of:1. The stop loss size of the trade2. The percentage risk (of your unleveraged cash float), that you want to risk per trade.The percentage risk method states that there will be a given percentage of your cash that is at risk per trade. Before you know what is at risk in a trade you need two bits of information: the stop loss size for that trade, and the percentage risk that you've chosen in your investment program.Assume that you chose a percentage risk of 4% of your cash float. If your cash float is $10,000, this means that you want to risk 4% of $10,000 per trade, which is $400. So with every trade, the maximum you would be willing to lose would be $400.With this chosen percentage, it would take you 25 losses in a row before you lose your entire float (25 x 4% = 100%). If your system is a good one, then 25 losses in a row would be highly unlikely.On the other hand, if the risk chosen was 2%, then it would take 50 rather than 25 losing trades in a row to lose the entire float. The number of losing trades required to lose the float decreases as you increase the percentage risk.Forex money management is a way of life for the prudent investor. Practice money management and you just might be one of 5 out of 100 that will be in a position to make money from Forex Trading.Do further research and you might look into one of those amazing automatic Forex Trading Programs.
How to Successfully Navigate Your Business through an Economic Downturn
by: Terry H Hill
An economic downturn is a phase of the business cycle in which the economy as a whole is in decline.This phase basically marks the end of the period of growth in the business cycle. Economic downturns are characterized by decreased levels of consumer purchases (especially of durable goods) and, subsequently, reduced levels of production by businesses.
While economic downturns are admittedly difficult, and are formidable obstacles to small businesses that are trying to survive and grow, an economic downturn can open up opportunities. A well-managed company can realize the opportunity to gain market share by taking customers away from their competitors. Resourceful entrepreneurs capture the available opportunities, from an economic downturn, by developing alternate methods of doing business that were never implemented during a prior growth period.
The challenge of successfully navigating your business through an economic downturn lies in the realignment of your business with current economic realities. Specifically, you, as the business owner, need to renew a focus on your core clients/customers, reduce your operating expenses, conserve cash, and manage more proactively, rather than reactively, is paramount.
Here are best practices that will help you to successfully navigate your business through an economic downturn:
Goals:
The primary goal of any business owner is to survive the current economic downturn and to develop a leaner, more cost-effective and more efficient operation. The secondary goal is to grow the business even during this current economic downturn.
Objectives:
• Conserve cash.
• Protect assets.
• Reduce costs.
• Improve efficiencies.
• Grow customer base.
Required Action:
• Do not panic… History shows that economic downturns do not last forever. Remain calm and act in a rational manner as you refocus your attention on resizing your company to the current economic conditions.
• Focus on what YOU can control… Don’t let the media's rhetoric concerning recessions and economic slowdown deter you from achieving business success. It´s a trap! Why? Because the condition of the economy is beyond your control. Surviving economic downturns requires a focus on what you can control, i.e. your relevant business activities.
• Communicate, communicate, and communicate! Beware of the pitfall of trying to do too much on your own. It is a difficult task indeed to survive and to grow your business solely with your own efforts. Solicit ideas and seek the help of other people (your employees, suppliers, lenders, customers, and advisors). Communicate honestly and consistently. Effective two-way communication is the key.
• Negotiate, negotiate, and negotiate! The value of a strong negotiation skill set cannot be overstated. Negotiating better deals and contracts is an absolute must for realigning and resizing your company to the current economic conditions. The key to success is not only knowing how to develop a win-win approach in negotiations with all parties, but also keeping in mind the fact that you want a favorable outcome for yourself too.
Recommended Best Practice Activities:
The Nuts and Bolts… The following list of recommended best practice activities is critical for your business' survival and for its growth during an economic downturn. The actual financial health of your particular business, at the outset of the economic downturn, will dictate the priority and urgency of the implementation of the following best practice activities.
1. Diligently monitor your cash flow: Forecast your cash flow monthly to ensure that expenses and planned expenditures are in line with accounts receivable. Include cash flow statements into your monthly financial reporting. Project cash requirements three-to- six months in advance. The key is to know how to monitor, protect, control, and put cash to work.
2. Carefully convert your inventories: Convert excess, obsolete, and slow-moving inventory items into cash. Consider returning excess and slow-moving items back to the suppliers. Close-out or inventory reduction sales work well to resize your inventory. Also, consider narrowing your product offerings. Well-timed order placement helps to reduce excess inventory levels and occasional material shortages. The key is to reduce the amount of your inventory without losing sales.
3. Timely collection of your accounts receivable: This asset should be converted to cash as quickly as possible. Offer prompt payment discounts to encourage timely payments. Make changes in the terms of sale for slow paying customers (i.e. changing net 30 day terms to COD). Invoicing is an important part of your cash flow management. The first rule of invoicing is to do it as soon as possible after products are shipped and/or after services are delivered. Place an emphasis on reducing billing errors. Most customers delay payments because an invoice had errors, and therefore, will not pay until they receive a corrected copy. Email or fax your invoices to save on mailing time. Post the payments that you have received and make deposits more frequently. The key is to develop an efficient collection system that generates timely payments and one that gives you advance warning of problems.
4. Re-focus your attention on your existing clients/customers: Make customer satisfaction your priority. A regular review of your customers' buying history and frequency of purchases can reveal some interesting facts about your customers' buying habits. Consider signing long-term contracts with your core clients/customers which will add to your security. Offer a discount for upfront cash payments. The key is to do what it takes to keep your current customers loyal.
5. Re-negotiate with your suppliers, lenders, and landlord:
i) Suppliers: Always keep your negotiations on the level of need, saying that your company has reviewed its cost structure and has determined that it needs to lower supplier costs. . Tell the supplier that you value the relationship you have developed, but that you need to receive a cost reduction immediately. Ask your supplier for a lower material price, a longer payment cycle, and the elimination of finance charges. Also, see if you can buy material from them on a consignment basis. In return for their price concessions, be willing to agree to a long-term contract. Explore the idea of bartering as a form of payment.
ii) Lenders: Everything in business finance is negotiable and your relationship with a bank is no exception. The first step to successful renegotiations is to convince your lenders that you can ultimately pay off the renegotiated loan. You must point out to your lenders why it would be in their best interest to agree to a new arrangement. Showing them your business plan and your action plan that includes your cost-savings initiatives, along with "the how" and "the when" of the implementation of your plan is the best way to achieve this goal. Explain to them that you will need their cooperation to insure that you can survive, as well as, grow your business during the economic downturn. Negotiated items include: the rate of interest, the required security to cover the loan, and the beginning date for repayment. A beginning date for repayment could be immediate, within several months or as long as a year. The key is to realize that your lender will work with you, but that frequent and continual communications with them is critical.
iii) Landlord: Meet with your landlord. Explain your need to have them extend the term of your lease at a reduced cost. Make sure you have a clause in the lease agreement that entitles you to have the right to sublet any or all of the leased space.
6. Re-evaluate your staffing requirements: This is a very critical area. Salaries/wages are a major expense of doing business. Therefore, any reduction in the hours worked through work schedule changes, short-term layoffs or permanent layoffs has an immediate cost saving benefit. Most companies ramped up hiring new employees in the good times, only to find that they are currently overstaffed due to slow sales during the economic downturn. In terms of down-sizing your staff, be very careful not to reduce your staff to a level that forces you to skimp on customer service and quality. Consider the use of part-timers or the current trend of outsourcing certain functions to independent contractors.
7. Shop for better insurances rates: Get quotations from other insurance agents for comparable coverage to determine whether or not your present insurance carrier is competitive. Also, consider revising your coverage to reduce premium costs. The key is to have the right balance-to be adequately insured, but not under or over insured.
8. Re-evaluate your advertising: Contrary to the other cost-cutting initiatives, evaluate the possibility of increasing your advertising expenditures. This tactic realizes the advantage of the reduced "noise" and congestion (fewer advertisers) in the marketplace. The downturn period a great opportunity to increase brand awareness and create additional demand for your product/service offerings.
9. Seek the help of outside advisors: The use of an advisory board comprised of your CPA, attorney, and business consultant offers you objectivity and provides you with professional advice and guidance. Their collective experience in working with similar situations in past economic downturns is invaluable.
10. Review your other expenses: Target an across-the-board cost-cutting initiative of 10-15%. Attempt to eliminate unnecessary expenses. Tightening your belt in order to weather the downturn makes practical, financial sense.
Proactively managing your business through an economic downturn is an enormous challenge and is critical for your survival. However, through well-planned initiatives, an economic downturn can create tremendous opportunity for your company to gain greater market share. In order to take advantage of this growth opportunity, you must act quickly to implement the above best business practices to continue realigning and resizing your company to the current economic conditions.
Copyright © 2008 Terry H. Hill
An economic downturn is a phase of the business cycle in which the economy as a whole is in decline.This phase basically marks the end of the period of growth in the business cycle. Economic downturns are characterized by decreased levels of consumer purchases (especially of durable goods) and, subsequently, reduced levels of production by businesses.
While economic downturns are admittedly difficult, and are formidable obstacles to small businesses that are trying to survive and grow, an economic downturn can open up opportunities. A well-managed company can realize the opportunity to gain market share by taking customers away from their competitors. Resourceful entrepreneurs capture the available opportunities, from an economic downturn, by developing alternate methods of doing business that were never implemented during a prior growth period.
The challenge of successfully navigating your business through an economic downturn lies in the realignment of your business with current economic realities. Specifically, you, as the business owner, need to renew a focus on your core clients/customers, reduce your operating expenses, conserve cash, and manage more proactively, rather than reactively, is paramount.
Here are best practices that will help you to successfully navigate your business through an economic downturn:
Goals:
The primary goal of any business owner is to survive the current economic downturn and to develop a leaner, more cost-effective and more efficient operation. The secondary goal is to grow the business even during this current economic downturn.
Objectives:
• Conserve cash.
• Protect assets.
• Reduce costs.
• Improve efficiencies.
• Grow customer base.
Required Action:
• Do not panic… History shows that economic downturns do not last forever. Remain calm and act in a rational manner as you refocus your attention on resizing your company to the current economic conditions.
• Focus on what YOU can control… Don’t let the media's rhetoric concerning recessions and economic slowdown deter you from achieving business success. It´s a trap! Why? Because the condition of the economy is beyond your control. Surviving economic downturns requires a focus on what you can control, i.e. your relevant business activities.
• Communicate, communicate, and communicate! Beware of the pitfall of trying to do too much on your own. It is a difficult task indeed to survive and to grow your business solely with your own efforts. Solicit ideas and seek the help of other people (your employees, suppliers, lenders, customers, and advisors). Communicate honestly and consistently. Effective two-way communication is the key.
• Negotiate, negotiate, and negotiate! The value of a strong negotiation skill set cannot be overstated. Negotiating better deals and contracts is an absolute must for realigning and resizing your company to the current economic conditions. The key to success is not only knowing how to develop a win-win approach in negotiations with all parties, but also keeping in mind the fact that you want a favorable outcome for yourself too.
Recommended Best Practice Activities:
The Nuts and Bolts… The following list of recommended best practice activities is critical for your business' survival and for its growth during an economic downturn. The actual financial health of your particular business, at the outset of the economic downturn, will dictate the priority and urgency of the implementation of the following best practice activities.
1. Diligently monitor your cash flow: Forecast your cash flow monthly to ensure that expenses and planned expenditures are in line with accounts receivable. Include cash flow statements into your monthly financial reporting. Project cash requirements three-to- six months in advance. The key is to know how to monitor, protect, control, and put cash to work.
2. Carefully convert your inventories: Convert excess, obsolete, and slow-moving inventory items into cash. Consider returning excess and slow-moving items back to the suppliers. Close-out or inventory reduction sales work well to resize your inventory. Also, consider narrowing your product offerings. Well-timed order placement helps to reduce excess inventory levels and occasional material shortages. The key is to reduce the amount of your inventory without losing sales.
3. Timely collection of your accounts receivable: This asset should be converted to cash as quickly as possible. Offer prompt payment discounts to encourage timely payments. Make changes in the terms of sale for slow paying customers (i.e. changing net 30 day terms to COD). Invoicing is an important part of your cash flow management. The first rule of invoicing is to do it as soon as possible after products are shipped and/or after services are delivered. Place an emphasis on reducing billing errors. Most customers delay payments because an invoice had errors, and therefore, will not pay until they receive a corrected copy. Email or fax your invoices to save on mailing time. Post the payments that you have received and make deposits more frequently. The key is to develop an efficient collection system that generates timely payments and one that gives you advance warning of problems.
4. Re-focus your attention on your existing clients/customers: Make customer satisfaction your priority. A regular review of your customers' buying history and frequency of purchases can reveal some interesting facts about your customers' buying habits. Consider signing long-term contracts with your core clients/customers which will add to your security. Offer a discount for upfront cash payments. The key is to do what it takes to keep your current customers loyal.
5. Re-negotiate with your suppliers, lenders, and landlord:
i) Suppliers: Always keep your negotiations on the level of need, saying that your company has reviewed its cost structure and has determined that it needs to lower supplier costs. . Tell the supplier that you value the relationship you have developed, but that you need to receive a cost reduction immediately. Ask your supplier for a lower material price, a longer payment cycle, and the elimination of finance charges. Also, see if you can buy material from them on a consignment basis. In return for their price concessions, be willing to agree to a long-term contract. Explore the idea of bartering as a form of payment.
ii) Lenders: Everything in business finance is negotiable and your relationship with a bank is no exception. The first step to successful renegotiations is to convince your lenders that you can ultimately pay off the renegotiated loan. You must point out to your lenders why it would be in their best interest to agree to a new arrangement. Showing them your business plan and your action plan that includes your cost-savings initiatives, along with "the how" and "the when" of the implementation of your plan is the best way to achieve this goal. Explain to them that you will need their cooperation to insure that you can survive, as well as, grow your business during the economic downturn. Negotiated items include: the rate of interest, the required security to cover the loan, and the beginning date for repayment. A beginning date for repayment could be immediate, within several months or as long as a year. The key is to realize that your lender will work with you, but that frequent and continual communications with them is critical.
iii) Landlord: Meet with your landlord. Explain your need to have them extend the term of your lease at a reduced cost. Make sure you have a clause in the lease agreement that entitles you to have the right to sublet any or all of the leased space.
6. Re-evaluate your staffing requirements: This is a very critical area. Salaries/wages are a major expense of doing business. Therefore, any reduction in the hours worked through work schedule changes, short-term layoffs or permanent layoffs has an immediate cost saving benefit. Most companies ramped up hiring new employees in the good times, only to find that they are currently overstaffed due to slow sales during the economic downturn. In terms of down-sizing your staff, be very careful not to reduce your staff to a level that forces you to skimp on customer service and quality. Consider the use of part-timers or the current trend of outsourcing certain functions to independent contractors.
7. Shop for better insurances rates: Get quotations from other insurance agents for comparable coverage to determine whether or not your present insurance carrier is competitive. Also, consider revising your coverage to reduce premium costs. The key is to have the right balance-to be adequately insured, but not under or over insured.
8. Re-evaluate your advertising: Contrary to the other cost-cutting initiatives, evaluate the possibility of increasing your advertising expenditures. This tactic realizes the advantage of the reduced "noise" and congestion (fewer advertisers) in the marketplace. The downturn period a great opportunity to increase brand awareness and create additional demand for your product/service offerings.
9. Seek the help of outside advisors: The use of an advisory board comprised of your CPA, attorney, and business consultant offers you objectivity and provides you with professional advice and guidance. Their collective experience in working with similar situations in past economic downturns is invaluable.
10. Review your other expenses: Target an across-the-board cost-cutting initiative of 10-15%. Attempt to eliminate unnecessary expenses. Tightening your belt in order to weather the downturn makes practical, financial sense.
Proactively managing your business through an economic downturn is an enormous challenge and is critical for your survival. However, through well-planned initiatives, an economic downturn can create tremendous opportunity for your company to gain greater market share. In order to take advantage of this growth opportunity, you must act quickly to implement the above best business practices to continue realigning and resizing your company to the current economic conditions.
Copyright © 2008 Terry H. Hill
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