While many businesses have been slammed by recession, some entrepreneurs are using the downturn as a time to prepare for better times ahead. And a big part of that is not only getting your current balance sheet in shape, but lining up funding sources to support future growth.
It starts with understanding the different options, and that alone can be challenging. When American Express surveyed a group of small business owners recently, it found that many were having trouble separating financial fact from fiction.
For example, Amex found that 34 percent of business owners surveyed believed, incorrectly, that a business “term loan” (funded immediately for a set term and amount) and a “line of credit” (which you open and tap as needed) are essentially the same. And nearly 40 percent believe it’s a good idea to apply to as many lenders as possible when seeking a loan, when the opposite is true. Multiple applications can tarnish your credit rating.
Here are five things you should know about financing that can help position your business for future growth:
1. Reinvested profits are perfect. The best source of “venture capital” for an existing business is money your company is already generating. Many entrepreneurs miss growth opportunities by spending profits in unproductive ways. Others take the opposite extreme, pumping every penny into the business while taking nothing for themselves. Both can backfire. If you do need to seek a loan, bankers will prefer that you pay yourself a reasonable salary. They want to know the business can be profitable even if those running it get paid.
Reinvesting profits in your business is a key to successful long-term growth. This is “patient” capital that builds value in your business without debt and without giving up shares to others. About 46 percent of business owners surveyed by American Express said they planned to finance their growth by reinvesting profits.
2. Tap into trade credit. “Trade credit” describes the process of delaying payment for goods and services your business purchases from various suppliers and vendors. You may find vendors more than willing to sell on credit to a growing business – and even to a startup – if you can strike a long-term deal to buy from them.
And from your perspective, trade credit is also one of the safest forms of business borrowing. Bank debt is dangerous because payments are still due even if sales drop. But if sales drop so will your orders, so your level of trade credit will drop too.
Right now, trade credit may be more readily available than bank or other types of loans. And it lets you spread payments over months or even years with little or no down payment and generally favorable rates.
3. Line up credit lines early. The time to establish a line of credit is when you have the ability to qualify for one – not later on when you need it. Having a line of credit can help you growing by providing ready financing when opportunities arise. A line of credit is also vastly preferable to using corporate credit cards that generally carry much higher interest rates and increasingly onerous terms. But avoid using a credit line to bail yourself out of trouble. Lines are meant to be tapped as needed, then paid off so they are available again the next time.
4. Expand banking relationships. If you have accounts with only one big bank, consider opening additional accounts at a regional or community bank. That will give you more options when it comes time to look for loans, lines or other credit to support your growth plan.
5. Consider alternative loan sources. A few options include credit unions you may be eligible to join, accounts receivable financing (also called factoring), and so-called “peer-to-peer” lending. Peer-to-peer (or person-to-person) lending has taken off in the recession as traditional loan sources have dried up and new Internet sites have made it easy to apply for and obtain this type of financing.
Thursday, December 24, 2009
Sunday, December 13, 2009
5 Keys to Funding Future Business Growth
While many businesses have been slammed by recession, some entrepreneurs are using the downturn as a time to prepare for better times ahead. And a big part of that is not only getting your current balance sheet in shape, but lining up funding sources to support future growth.
It starts with understanding the different options, and that alone can be challenging. When American Express surveyed a group of small business owners recently, it found that many were having trouble separating financial fact from fiction.
For example, Amex found that 34 percent of business owners surveyed believed, incorrectly, that a business “term loan” (funded immediately for a set term and amount) and a “line of credit” (which you open and tap as needed) are essentially the same. And nearly 40 percent believe it’s a good idea to apply to as many lenders as possible when seeking a loan, when the opposite is true. Multiple applications can tarnish your credit rating.
Here are five things you should know about financing that can help position your business for future growth:
1. Reinvested profits are perfect. The best source of “venture capital” for an existing business is money your company is already generating. Many entrepreneurs miss growth opportunities by spending profits in unproductive ways. Others take the opposite extreme, pumping every penny into the business while taking nothing for themselves. Both can backfire. If you do need to seek a loan, bankers will prefer that you pay yourself a reasonable salary. They want to know the business can be profitable even if those running it get paid.
Reinvesting profits in your business is a key to successful long-term growth. This is “patient” capital that builds value in your business without debt and without giving up shares to others. About 46 percent of business owners surveyed by American Express said they planned to finance their growth by reinvesting profits.
2. Tap into trade credit. “Trade credit” describes the process of delaying payment for goods and services your business purchases from various suppliers and vendors. You may find vendors more than willing to sell on credit to a growing business – and even to a startup – if you can strike a long-term deal to buy from them.
And from your perspective, trade credit is also one of the safest forms of business borrowing. Bank debt is dangerous because payments are still due even if sales drop. But if sales drop so will your orders, so your level of trade credit will drop too.
Right now, trade credit may be more readily available than bank or other types of loans. And it lets you spread payments over months or even years with little or no down payment and generally favorable rates.
3. Line up credit lines early. The time to establish a line of credit is when you have the ability to qualify for one – not later on when you need it. Having a line of credit can help you growing by providing ready financing when opportunities arise. A line of credit is also vastly preferable to using corporate credit cards that generally carry much higher interest rates and increasingly onerous terms. But avoid using a credit line to bail yourself out of trouble. Lines are meant to be tapped as needed, then paid off so they are available again the next time.
4. Expand banking relationships. If you have accounts with only one big bank, consider opening additional accounts at a regional or community bank. That will give you more options when it comes time to look for loans, lines or other credit to support your growth plan.
5. Consider alternative loan sources. A few options include credit unions you may be eligible to join, accounts receivable financing (also called factoring), and so-called “peer-to-peer” lending. Peer-to-peer (or person-to-person) lending has taken off in the recession as traditional loan sources have dried up and new Internet sites have made it easy to apply for and obtain this type of financing.
It starts with understanding the different options, and that alone can be challenging. When American Express surveyed a group of small business owners recently, it found that many were having trouble separating financial fact from fiction.
For example, Amex found that 34 percent of business owners surveyed believed, incorrectly, that a business “term loan” (funded immediately for a set term and amount) and a “line of credit” (which you open and tap as needed) are essentially the same. And nearly 40 percent believe it’s a good idea to apply to as many lenders as possible when seeking a loan, when the opposite is true. Multiple applications can tarnish your credit rating.
Here are five things you should know about financing that can help position your business for future growth:
1. Reinvested profits are perfect. The best source of “venture capital” for an existing business is money your company is already generating. Many entrepreneurs miss growth opportunities by spending profits in unproductive ways. Others take the opposite extreme, pumping every penny into the business while taking nothing for themselves. Both can backfire. If you do need to seek a loan, bankers will prefer that you pay yourself a reasonable salary. They want to know the business can be profitable even if those running it get paid.
Reinvesting profits in your business is a key to successful long-term growth. This is “patient” capital that builds value in your business without debt and without giving up shares to others. About 46 percent of business owners surveyed by American Express said they planned to finance their growth by reinvesting profits.
2. Tap into trade credit. “Trade credit” describes the process of delaying payment for goods and services your business purchases from various suppliers and vendors. You may find vendors more than willing to sell on credit to a growing business – and even to a startup – if you can strike a long-term deal to buy from them.
And from your perspective, trade credit is also one of the safest forms of business borrowing. Bank debt is dangerous because payments are still due even if sales drop. But if sales drop so will your orders, so your level of trade credit will drop too.
Right now, trade credit may be more readily available than bank or other types of loans. And it lets you spread payments over months or even years with little or no down payment and generally favorable rates.
3. Line up credit lines early. The time to establish a line of credit is when you have the ability to qualify for one – not later on when you need it. Having a line of credit can help you growing by providing ready financing when opportunities arise. A line of credit is also vastly preferable to using corporate credit cards that generally carry much higher interest rates and increasingly onerous terms. But avoid using a credit line to bail yourself out of trouble. Lines are meant to be tapped as needed, then paid off so they are available again the next time.
4. Expand banking relationships. If you have accounts with only one big bank, consider opening additional accounts at a regional or community bank. That will give you more options when it comes time to look for loans, lines or other credit to support your growth plan.
5. Consider alternative loan sources. A few options include credit unions you may be eligible to join, accounts receivable financing (also called factoring), and so-called “peer-to-peer” lending. Peer-to-peer (or person-to-person) lending has taken off in the recession as traditional loan sources have dried up and new Internet sites have made it easy to apply for and obtain this type of financing.
Sunday, December 6, 2009
Guide to Free and Low-Cost Employee Perks
Employees have come to expect benefits such as health insurance and 401K plans. But you don't have to offer a budget-busting benefits package to show employees that you appreciate their efforts. Many companies are turning to affordable benefit offerings that are more like gifts than traditional benefits. This new brand of employee benefit has a more personal touch. For example, many workers long for a break from their hectic workweek. Benefits like flexible work hours and restaurant gift cards show employees that you recognize their sacrifices and want to help ease their stress. Important strategies for making benefits truly beneficial:
1.It really is the thought that counts. When an employee receives a gift that he wouldn't typically buy for himself, he tends to put greater value on that benefit.
2.As a business owner you may hate to admit it, but there is one benefit that is guaranteed to motivate employees: a day off. Whether it's a Friday off every other month or the chance to work at home occasionally, granting that extra time away from work can do wonders for morale.
3.Give spot bonuses. These are gifts you give to individual employees to recognize an achievement that went beyond the call of duty. Present spot bonuses with some fanfare, and do it often enough so that all employees know that they have a chance of receiving one.
Action Steps
The best contacts and resources to help you get it done
Consider the popular choice: gift cards
A great way to customize an employee benefit without spending a fortune is to give gift cards that are tailored to the employee's favorite pastime.
I recommend: GiftCertificates.com is a one-stop shop for gift cards for travel, entertainment, books, dining out, fashions and more. GiftCertificates.com also includes the option of customized paper gift certificates. Starbucks offers corporate rates to businesses that purchase Starbucks debit cards. Employees can use the debit cards (which function like gift cards) to buy beverages, food, or merchandise at any Starbucks. If you prefer to expand your employees' gift choices give, a MasterCard or Visa gift card. Employees can use them wherever those companies' credit cards are accepted.
1.It really is the thought that counts. When an employee receives a gift that he wouldn't typically buy for himself, he tends to put greater value on that benefit.
2.As a business owner you may hate to admit it, but there is one benefit that is guaranteed to motivate employees: a day off. Whether it's a Friday off every other month or the chance to work at home occasionally, granting that extra time away from work can do wonders for morale.
3.Give spot bonuses. These are gifts you give to individual employees to recognize an achievement that went beyond the call of duty. Present spot bonuses with some fanfare, and do it often enough so that all employees know that they have a chance of receiving one.
Action Steps
The best contacts and resources to help you get it done
Consider the popular choice: gift cards
A great way to customize an employee benefit without spending a fortune is to give gift cards that are tailored to the employee's favorite pastime.
I recommend: GiftCertificates.com is a one-stop shop for gift cards for travel, entertainment, books, dining out, fashions and more. GiftCertificates.com also includes the option of customized paper gift certificates. Starbucks offers corporate rates to businesses that purchase Starbucks debit cards. Employees can use the debit cards (which function like gift cards) to buy beverages, food, or merchandise at any Starbucks. If you prefer to expand your employees' gift choices give, a MasterCard or Visa gift card. Employees can use them wherever those companies' credit cards are accepted.
Tuesday, December 1, 2009
A New Way to Rate Customers with no Credit History
Recession-damaged small and mid-sized businesses would like to extend credit to customers with little if any credit history if they could do it without great risk. Now there’s a way. FICO — the company behind the ubiquitous FICO credit score we all know and love — has created a new FICO Expansion Score to help businesses evaluate the estimated 50-70 million U.S. consumers who have either no traditional credit history or thin credit bureau files at Equifax, Experian and TransUnion.
This group of potential customers is heavy on students, senior citizens and recent immigrants, so the scoring model is based on non-traditional credit data such as subscription memberships, bank deposit account activity and utility histories. The resulting scores use the same 300-850 scoring range as the traditional FICO and can also be used in combination with the traditional score when making credit decisions. The new scoring system can help identify responsible, credit-worthy customers who can meet their obligations but simply haven’t had an opportunity to establish a traditional credit history.
MicroBilt Corp., which provides risk manaement services to small and mid-sized businesses, has an exclusive license to use the FICO scoring model in the U.S. and sell FICO Expansion scores to lenders and businesses. MicroBuilt has direct links to the three major credit bureaus, which means businesses checking customer credit can get both the traditional FICO score and the FICO Expansion score from a single source. For more information on obtaining a FICO Expansion score you can fill out a MicroBuilt inquiry form or call 800-884-4397 800-884-4397.
According to its creators, the FICO Expansion score accurately predicts the likelihood that a consumer will become seriously delinquent within the next two years, using the same caliber of highly predictive, objective risk evaluation that other FICO scores are known for.
This group of potential customers is heavy on students, senior citizens and recent immigrants, so the scoring model is based on non-traditional credit data such as subscription memberships, bank deposit account activity and utility histories. The resulting scores use the same 300-850 scoring range as the traditional FICO and can also be used in combination with the traditional score when making credit decisions. The new scoring system can help identify responsible, credit-worthy customers who can meet their obligations but simply haven’t had an opportunity to establish a traditional credit history.
MicroBilt Corp., which provides risk manaement services to small and mid-sized businesses, has an exclusive license to use the FICO scoring model in the U.S. and sell FICO Expansion scores to lenders and businesses. MicroBuilt has direct links to the three major credit bureaus, which means businesses checking customer credit can get both the traditional FICO score and the FICO Expansion score from a single source. For more information on obtaining a FICO Expansion score you can fill out a MicroBuilt inquiry form or call 800-884-4397 800-884-4397.
According to its creators, the FICO Expansion score accurately predicts the likelihood that a consumer will become seriously delinquent within the next two years, using the same caliber of highly predictive, objective risk evaluation that other FICO scores are known for.
Monday, November 23, 2009
Guide to Bluetooth Wireless Solutions
Bluetooth technology connects computers, PDAs, cameras and phones with one another without the need for wires, creating so-called ad-hoc, virtual networks that share information. That information can include everything from photos and videos stored in a digital camera to contact lists from a PDA or your own voice transmitted from a wireless headphone to the cell phone in your pocket. Bluetooth is similar to the popular wireless technology WiFi but operates on a shorter range, three to 30 feet versus about 300 feet for WiFi. It can operate in tandem with WiFi and other networks so this isn't an either/or choice. Thanks to Bluetooth's easy connectivity, a small business owner can use the technology to:
1.Save money because there's no need to purchase expensive cables otherwise needed to interconnect electronic devices.
2.Save time and frustration by taking advantage of Bluetooth's ability to connect devices from many manufacturers with relative ease.
3.Choose from one of three security settings.
4.Send or receive contact information and product information at meetings and trade shows.
5.Carry a cell phone safely in a pocket while conversing via hassle-free wireless headphones.
6.Create complex networks capable of doing everything from helping fleet operators manage deliveries to linking medical monitoring devices inside hospital rooms.
Action Steps
The best contacts and resources to help you get it done
Get equipped
Bluetooth-enable your company by inventorying all its existing electronic devices. Some devices - newer high-end laptop computers, for example - already may be Bluetooth compatible. Other equipment can be made Bluetooth compatible with the addition of simple add-on devices. Finally, make Bluetooth compatibility a requirement for all relevant new electronic equipment purchases.
I recommend: Find the latest Bluetooth-enabled products at the Bluetooth.org Web site. The electronics firm Kensington makes a Bluetooth adaptor that plugs into a computer's USB port, allowing it to communicate with other Bluetooth devices. In addition to popular computer supply stores such as BestBuy and CompUSA that carry Bluetooth-enabled products, the online store Blue Shop is devoted entirely to gadgets for Bluetooth users.
1.Save money because there's no need to purchase expensive cables otherwise needed to interconnect electronic devices.
2.Save time and frustration by taking advantage of Bluetooth's ability to connect devices from many manufacturers with relative ease.
3.Choose from one of three security settings.
4.Send or receive contact information and product information at meetings and trade shows.
5.Carry a cell phone safely in a pocket while conversing via hassle-free wireless headphones.
6.Create complex networks capable of doing everything from helping fleet operators manage deliveries to linking medical monitoring devices inside hospital rooms.
Action Steps
The best contacts and resources to help you get it done
Get equipped
Bluetooth-enable your company by inventorying all its existing electronic devices. Some devices - newer high-end laptop computers, for example - already may be Bluetooth compatible. Other equipment can be made Bluetooth compatible with the addition of simple add-on devices. Finally, make Bluetooth compatibility a requirement for all relevant new electronic equipment purchases.
I recommend: Find the latest Bluetooth-enabled products at the Bluetooth.org Web site. The electronics firm Kensington makes a Bluetooth adaptor that plugs into a computer's USB port, allowing it to communicate with other Bluetooth devices. In addition to popular computer supply stores such as BestBuy and CompUSA that carry Bluetooth-enabled products, the online store Blue Shop is devoted entirely to gadgets for Bluetooth users.
Friday, November 20, 2009
Guide to Finding New Customers Online
Whether your primary business is run online or offline, you can find new customers or clients on the Internet. Paid online advertising is only one of many methods you can use to zero in on new leads. In fact, many methods for seeking out customers online don't cost a thing and can be very effective.
Some of the online tactics you can use to find new customers are:
1.Advertising
2.Everyday email
3.Community forums
4.Email coupon campaigns
5.E-newsletters
Action Steps
The best contacts and resources to help you get it done
Use online advertising
Purchasing banner ads and pay-per-click (PPC) advertising on Web sites or in e-newsletters that reach your target audience can bolster your customer base.
I recommend: Sign up for PPC advertising programs, such as Google AdWords, which also publishes a set of Editorial Guidelines for writing banner ad copy. Get help creating, downloading and publishing your ads with Flash Banner Now, BannersOnline.com or Hey! Banner Banner!. Other sites to consider include Yahoo! Search Marketing, for general purpose PPC ads and Business.com if you sell B2B.
Take advantage of everyday email
With every email you send, use a signature file or "sig file" where you can include a variety of information, including your URL, links to your Web site, store location and hours, upcoming sales events and current promotions. Always include an option to "forward to a friend" to increase the reach of your emails to new prospects.
I recommend: Google provides free sig files and a list of annoying sig files to avoid. Find a list of sites that offer still more sig files at Yahoo! or see how to create one yourself at WorldStart.com.
Get familiar with online forums
Community forums are like an online coffee shop where people with similar interests gather to chat. By becoming a regular in forums that address the needs of your potential customers, you can introduce your business to them in a way that doesn't involve in-your-face advertising. Be sure not to overtly advertise or promote your business in a forum; it's considered rude and could get you kicked out.
I recommend: Most forums have their own rules, but you can check out basic forum etiquette rules from N'etiquette.com. Forumer has helpful advice on using forums to promote your business.
Send email coupons
Reach new customers by emailing coupons. To find names of prospects, buy or rent a list from a broker. To avoid being labeled a spammer, make sure the broker uses opt-in procedures rather than harvesting email addresses online.
I recommend: Search for list brokers at the Direct Marketing Association's (DMA) Yellow Pages. Make coupon mailings easier with help from online services, such as mUrgent's e-Coupon Club, which offers custom designs and templates.
Offer an e-newsletter
By creating a quality e-newsletter that's filled with must-have info, you can gain placement on directories for e-zines and e-newsletters. This added visibility can introduce your business to new customers.
I recommend: For help creating, managing and distributing an e-newsletter, try Constant Contact, a Web-based email marketing service, or ENewsletterPro software. Submit your e-zine to directories like the E-zine Directory, the E-zine Listing or E-zine Locator.
Some of the online tactics you can use to find new customers are:
1.Advertising
2.Everyday email
3.Community forums
4.Email coupon campaigns
5.E-newsletters
Action Steps
The best contacts and resources to help you get it done
Use online advertising
Purchasing banner ads and pay-per-click (PPC) advertising on Web sites or in e-newsletters that reach your target audience can bolster your customer base.
I recommend: Sign up for PPC advertising programs, such as Google AdWords, which also publishes a set of Editorial Guidelines for writing banner ad copy. Get help creating, downloading and publishing your ads with Flash Banner Now, BannersOnline.com or Hey! Banner Banner!. Other sites to consider include Yahoo! Search Marketing, for general purpose PPC ads and Business.com if you sell B2B.
Take advantage of everyday email
With every email you send, use a signature file or "sig file" where you can include a variety of information, including your URL, links to your Web site, store location and hours, upcoming sales events and current promotions. Always include an option to "forward to a friend" to increase the reach of your emails to new prospects.
I recommend: Google provides free sig files and a list of annoying sig files to avoid. Find a list of sites that offer still more sig files at Yahoo! or see how to create one yourself at WorldStart.com.
Get familiar with online forums
Community forums are like an online coffee shop where people with similar interests gather to chat. By becoming a regular in forums that address the needs of your potential customers, you can introduce your business to them in a way that doesn't involve in-your-face advertising. Be sure not to overtly advertise or promote your business in a forum; it's considered rude and could get you kicked out.
I recommend: Most forums have their own rules, but you can check out basic forum etiquette rules from N'etiquette.com. Forumer has helpful advice on using forums to promote your business.
Send email coupons
Reach new customers by emailing coupons. To find names of prospects, buy or rent a list from a broker. To avoid being labeled a spammer, make sure the broker uses opt-in procedures rather than harvesting email addresses online.
I recommend: Search for list brokers at the Direct Marketing Association's (DMA) Yellow Pages. Make coupon mailings easier with help from online services, such as mUrgent's e-Coupon Club, which offers custom designs and templates.
Offer an e-newsletter
By creating a quality e-newsletter that's filled with must-have info, you can gain placement on directories for e-zines and e-newsletters. This added visibility can introduce your business to new customers.
I recommend: For help creating, managing and distributing an e-newsletter, try Constant Contact, a Web-based email marketing service, or ENewsletterPro software. Submit your e-zine to directories like the E-zine Directory, the E-zine Listing or E-zine Locator.
Wednesday, November 18, 2009
What Works™ for Business
Recession-damaged small and mid-sized businesses would like to extend credit to customers with little if any credit history if they could do it without great risk. Now there’s a way. FICO — the company behind the ubiquitous FICO credit score we all know and love — has created a new FICO Expansion Score to help businesses evaluate the estimated 50-70 million U.S. consumers who have either no traditional credit history or thin credit bureau files at Equifax, Experian and TransUnion.
This group of potential customers is heavy on students, senior citizens and recent immigrants, so the scoring model is based on non-traditional credit data such as subscription memberships, bank deposit account activity and utility histories. The resulting scores use the same 300-850 scoring range as the traditional FICO and can also be used in combination with the traditional score when making credit decisions. The new scoring system can help identify responsible, credit-worthy customers who can meet their obligations but simply haven’t had an opportunity to establish a traditional credit history.
MicroBilt Corp., which provides risk manaement services to small and mid-sized businesses, has an exclusive license to use the FICO scoring model in the U.S. and sell FICO Expansion scores to lenders and businesses. MicroBuilt has direct links to the three major credit bureaus, which means businesses checking customer credit can get both the traditional FICO score and the FICO Expansion score from a single source. For more information on obtaining a FICO Expansion score you can fill out a MicroBuilt inquiry form or call 800-884-4397.
According to its creators, the FICO Expansion score accurately predicts the likelihood that a consumer will become seriously delinquent within the next two years, using the same caliber of highly predictive, objective risk evaluation that other FICO scores are known for.
This group of potential customers is heavy on students, senior citizens and recent immigrants, so the scoring model is based on non-traditional credit data such as subscription memberships, bank deposit account activity and utility histories. The resulting scores use the same 300-850 scoring range as the traditional FICO and can also be used in combination with the traditional score when making credit decisions. The new scoring system can help identify responsible, credit-worthy customers who can meet their obligations but simply haven’t had an opportunity to establish a traditional credit history.
MicroBilt Corp., which provides risk manaement services to small and mid-sized businesses, has an exclusive license to use the FICO scoring model in the U.S. and sell FICO Expansion scores to lenders and businesses. MicroBuilt has direct links to the three major credit bureaus, which means businesses checking customer credit can get both the traditional FICO score and the FICO Expansion score from a single source. For more information on obtaining a FICO Expansion score you can fill out a MicroBuilt inquiry form or call 800-884-4397.
According to its creators, the FICO Expansion score accurately predicts the likelihood that a consumer will become seriously delinquent within the next two years, using the same caliber of highly predictive, objective risk evaluation that other FICO scores are known for.
What Works™ for Business
Recession-damaged small and mid-sized businesses would like to extend credit to customers with little if any credit history if they could do it without great risk. Now there’s a way. FICO — the company behind the ubiquitous FICO credit score we all know and love — has created a new FICO Expansion Score to help businesses evaluate the estimated 50-70 million U.S. consumers who have either no traditional credit history or thin credit bureau files at Equifax, Experian and TransUnion.
This group of potential customers is heavy on students, senior citizens and recent immigrants, so the scoring model is based on non-traditional credit data such as subscription memberships, bank deposit account activity and utility histories. The resulting scores use the same 300-850 scoring range as the traditional FICO and can also be used in combination with the traditional score when making credit decisions. The new scoring system can help identify responsible, credit-worthy customers who can meet their obligations but simply haven’t had an opportunity to establish a traditional credit history.
MicroBilt Corp., which provides risk manaement services to small and mid-sized businesses, has an exclusive license to use the FICO scoring model in the U.S. and sell FICO Expansion scores to lenders and businesses. MicroBuilt has direct links to the three major credit bureaus, which means businesses checking customer credit can get both the traditional FICO score and the FICO Expansion score from a single source. For more information on obtaining a FICO Expansion score you can fill out a MicroBuilt inquiry form or call 800-884-4397.
According to its creators, the FICO Expansion score accurately predicts the likelihood that a consumer will become seriously delinquent within the next two years, using the same caliber of highly predictive, objective risk evaluation that other FICO scores are known for.
This group of potential customers is heavy on students, senior citizens and recent immigrants, so the scoring model is based on non-traditional credit data such as subscription memberships, bank deposit account activity and utility histories. The resulting scores use the same 300-850 scoring range as the traditional FICO and can also be used in combination with the traditional score when making credit decisions. The new scoring system can help identify responsible, credit-worthy customers who can meet their obligations but simply haven’t had an opportunity to establish a traditional credit history.
MicroBilt Corp., which provides risk manaement services to small and mid-sized businesses, has an exclusive license to use the FICO scoring model in the U.S. and sell FICO Expansion scores to lenders and businesses. MicroBuilt has direct links to the three major credit bureaus, which means businesses checking customer credit can get both the traditional FICO score and the FICO Expansion score from a single source. For more information on obtaining a FICO Expansion score you can fill out a MicroBuilt inquiry form or call 800-884-4397.
According to its creators, the FICO Expansion score accurately predicts the likelihood that a consumer will become seriously delinquent within the next two years, using the same caliber of highly predictive, objective risk evaluation that other FICO scores are known for.
Saturday, November 14, 2009
At General Motors, Loss Reduction Is a Good Start
On Monday, Nov. 16, General Motors CEO Frederick A. "Fritz" Henderson will give the company's first update since it emerged from bankruptcy in June. The news is supposed to be good—relatively speaking.
Sources close to management who have seen the preliminary financials, but who asked not to be named, say GM will show much-improved third-quarter earnings and cash flow. The company will still be in the red, according to the sources, but will have cut losses from recent quarters by billions of dollars.
Even a slight loss would be big progress for GM. The company lost $6 billion in the first quarter—the last quarter GM reported before going bankrupt—and it lost $31 billion last year. In the third quarter of 2008, GM lost $4.2 billion, including one-time charges.
GM will show improvements in cash flow through lower costs and better net pricing on its cars, the sources say. That tracks the kind of improvements rival Ford Motor (F) showed on Nov. 2, when lower costs and high sticker prices added up to a surprise $1 billion profit.
Striking Distance of Breakeven?
"GM is stabilizing, but it's not stabilized," says longtime industry watcher Joseph Phillippi, principal of AutoTrends, a New Jersey consultancy. "The new cars are doing well."
In fact, the sources maintain that GM was within striking distance of breaking even in the third quarter, not counting charges for special items and restructuring costs.
Improved numbers would be a relief for Henderson, who is under pressure from new Chairman Edward Whitacre and GM's board to show results.
The company's earnings and cash flow will be helped in the quarter by the fact that it shut down many plants in June while it was in bankruptcy. To give dealers new inventory, factories had to crank back up when the company emerged. That will help earnings because carmakers book revenue as soon as a car heads off the assembly line for a dealership.
At the same time, the company is still paying out union health-care costs. The company has set up a Voluntary Employee Benefits Trust, or VEBA, to pay union health-care benefits the way a pension fund pays pension benefits. But that plan hasn't kicked in yet, so GM's profitability won't show improvement from the VEBA deal until next year
Sources close to management who have seen the preliminary financials, but who asked not to be named, say GM will show much-improved third-quarter earnings and cash flow. The company will still be in the red, according to the sources, but will have cut losses from recent quarters by billions of dollars.
Even a slight loss would be big progress for GM. The company lost $6 billion in the first quarter—the last quarter GM reported before going bankrupt—and it lost $31 billion last year. In the third quarter of 2008, GM lost $4.2 billion, including one-time charges.
GM will show improvements in cash flow through lower costs and better net pricing on its cars, the sources say. That tracks the kind of improvements rival Ford Motor (F) showed on Nov. 2, when lower costs and high sticker prices added up to a surprise $1 billion profit.
Striking Distance of Breakeven?
"GM is stabilizing, but it's not stabilized," says longtime industry watcher Joseph Phillippi, principal of AutoTrends, a New Jersey consultancy. "The new cars are doing well."
In fact, the sources maintain that GM was within striking distance of breaking even in the third quarter, not counting charges for special items and restructuring costs.
Improved numbers would be a relief for Henderson, who is under pressure from new Chairman Edward Whitacre and GM's board to show results.
The company's earnings and cash flow will be helped in the quarter by the fact that it shut down many plants in June while it was in bankruptcy. To give dealers new inventory, factories had to crank back up when the company emerged. That will help earnings because carmakers book revenue as soon as a car heads off the assembly line for a dealership.
At the same time, the company is still paying out union health-care costs. The company has set up a Voluntary Employee Benefits Trust, or VEBA, to pay union health-care benefits the way a pension fund pays pension benefits. But that plan hasn't kicked in yet, so GM's profitability won't show improvement from the VEBA deal until next year
Tuesday, November 10, 2009
Health Insurance Basics for Small Business
As small businesses struggle over health insurance, a National Association of Insurance Commissioners (NAIC) survey finds that two out of three business owners feel clueless about health insurance choices and costs.
Here are your basic options, from full-featured major medical plans, to HMOs, PPOs, health savings accounts (HSAs) and more — plus what you can expect to pay right now for a small group plan, and some of the best ways to control the costs of providing health coverage at your business:
Indemnity plans – These major medical plans typically have a deductible – the amount you pay before the insurance company begins paying benefits. After covered expenses exceed the deductible, benefits usually are paid as a percentage of actual expenses, often 80 percent. These plans offer the most flexibility in choosing where to receive care.
Health Maintenance Organization (HMO) - HMOs make you choose a primary care physician (PCP) from a list of network providers. Your PCP is responsible for managing all of your health care. If you need care from any network provider other than your PCP, you may need a referral. Insured employees must receive care from a network provider in order to have the claim paid through the HMO. Treatment received outside the network may be covered at a reduced level or not at all.
Preferred Provider Organization (PPO) - Under these medical plans, the insurance company enters into contracts with selected hospitals and doctors to furnish services at a discount. As a member of a PPO, you may be able to seek care from a doctor or hospital that is not a preferred provider, but you will probably pay a higher deductible or co-payment.
Point of Service (POS) plans- These are a hybrid of the PPO and HMO models. They are more flexible than HMOs, but still require you to select a PCP. Like a PPO, you can go to an out-of-network provider and pay more of the cost. However, if the PCP refers you to an out-of-network doctor, the health plan will pay the cost.
Health Savings Accounts (HSA) and High Deductible Health Plans– A Health Savings Account is not health insurance by itself. Rather, it is a savings plan that offers an alternate way to pay for health care. HSAs let you pay for current health expenses and save for future medical and retiree health expenses on a tax-free basis.
In order to open an HSA, an individual must be covered by a High Deductible Health Plan (HDHP). Sometimes referred to as a “catastrophic” health insurance plan, an HDHP is low-cost coverage that only kicks in after the first several thousand dollars or more of expenses.
Here are your basic options, from full-featured major medical plans, to HMOs, PPOs, health savings accounts (HSAs) and more — plus what you can expect to pay right now for a small group plan, and some of the best ways to control the costs of providing health coverage at your business:
Indemnity plans – These major medical plans typically have a deductible – the amount you pay before the insurance company begins paying benefits. After covered expenses exceed the deductible, benefits usually are paid as a percentage of actual expenses, often 80 percent. These plans offer the most flexibility in choosing where to receive care.
Health Maintenance Organization (HMO) - HMOs make you choose a primary care physician (PCP) from a list of network providers. Your PCP is responsible for managing all of your health care. If you need care from any network provider other than your PCP, you may need a referral. Insured employees must receive care from a network provider in order to have the claim paid through the HMO. Treatment received outside the network may be covered at a reduced level or not at all.
Preferred Provider Organization (PPO) - Under these medical plans, the insurance company enters into contracts with selected hospitals and doctors to furnish services at a discount. As a member of a PPO, you may be able to seek care from a doctor or hospital that is not a preferred provider, but you will probably pay a higher deductible or co-payment.
Point of Service (POS) plans- These are a hybrid of the PPO and HMO models. They are more flexible than HMOs, but still require you to select a PCP. Like a PPO, you can go to an out-of-network provider and pay more of the cost. However, if the PCP refers you to an out-of-network doctor, the health plan will pay the cost.
Health Savings Accounts (HSA) and High Deductible Health Plans– A Health Savings Account is not health insurance by itself. Rather, it is a savings plan that offers an alternate way to pay for health care. HSAs let you pay for current health expenses and save for future medical and retiree health expenses on a tax-free basis.
In order to open an HSA, an individual must be covered by a High Deductible Health Plan (HDHP). Sometimes referred to as a “catastrophic” health insurance plan, an HDHP is low-cost coverage that only kicks in after the first several thousand dollars or more of expenses.
Wednesday, November 4, 2009
Sizing Up Buffett's Biggest Bet
Berkshire Hathaway (BRKA) CEO and value investing demigod Warren Buffett has been hinting for some time that he was looking for a large company to buy with Berkshire's huge cash hoard, which stood at about $21 billion at the end of the second quarter. Last year he described his likely targets as "big ones, elephants." On Nov. 3, Buffett bagged a good-sized pachyderm, paying $34 billion—$44 billion, including debt—for sole ownership of Fort Worth (Tex.)-based Burlington Northern Santa Fe Corp. (BNI), the second-largest U.S. railroad.
The deal is the biggest acquisition in Berkshire's history and, in Buffett's words, "an all-in wager on the economic future of the United States." In a statement, Burlington Northern CEO Matthew Rose added: "We admire Warren's leadership philosophy supporting long-term investment that will allow BNSF to focus on the future needs of our railroad." Pending an antitrust review by the Justice Dept. because Berkshire has smaller stakes in other railroads, the deal is expected to close early next year.
Berkshire has been eyeing freight trains for some time. In 2006, the company bought a 10.9% stake in Burlington Northern, later increasing its holding to 22%. On Tuesday Berkshire bought the rest of the company for $100 a share in cash and newly issued Berkshire Hathaway stock. About $16 billion of the purchase price is in cash, half of it coming from Berkshire's coffers and the other half borrowed from banks. The price represents a roughly 30% premium over Burlington Northern's New York Stock Exchange closing price on Monday. Berkshire also agreed to assume $10 billion in outstanding Burlington Northern debt.
The deal is the biggest acquisition in Berkshire's history and, in Buffett's words, "an all-in wager on the economic future of the United States." In a statement, Burlington Northern CEO Matthew Rose added: "We admire Warren's leadership philosophy supporting long-term investment that will allow BNSF to focus on the future needs of our railroad." Pending an antitrust review by the Justice Dept. because Berkshire has smaller stakes in other railroads, the deal is expected to close early next year.
Berkshire has been eyeing freight trains for some time. In 2006, the company bought a 10.9% stake in Burlington Northern, later increasing its holding to 22%. On Tuesday Berkshire bought the rest of the company for $100 a share in cash and newly issued Berkshire Hathaway stock. About $16 billion of the purchase price is in cash, half of it coming from Berkshire's coffers and the other half borrowed from banks. The price represents a roughly 30% premium over Burlington Northern's New York Stock Exchange closing price on Monday. Berkshire also agreed to assume $10 billion in outstanding Burlington Northern debt.
Sizing Up Buffett's Biggest Bet
Berkshire Hathaway (BRKA) CEO and value investing demigod Warren Buffett has been hinting for some time that he was looking for a large company to buy with Berkshire's huge cash hoard, which stood at about $21 billion at the end of the second quarter. Last year he described his likely targets as "big ones, elephants." On Nov. 3, Buffett bagged a good-sized pachyderm, paying $34 billion—$44 billion, including debt—for sole ownership of Fort Worth (Tex.)-based Burlington Northern Santa Fe Corp. (BNI), the second-largest U.S. railroad.
The deal is the biggest acquisition in Berkshire's history and, in Buffett's words, "an all-in wager on the economic future of the United States." In a statement, Burlington Northern CEO Matthew Rose added: "We admire Warren's leadership philosophy supporting long-term investment that will allow BNSF to focus on the future needs of our railroad." Pending an antitrust review by the Justice Dept. because Berkshire has smaller stakes in other railroads, the deal is expected to close early next year.
Berkshire has been eyeing freight trains for some time. In 2006, the company bought a 10.9% stake in Burlington Northern, later increasing its holding to 22%. On Tuesday Berkshire bought the rest of the company for $100 a share in cash and newly issued Berkshire Hathaway stock. About $16 billion of the purchase price is in cash, half of it coming from Berkshire's coffers and the other half borrowed from banks. The price represents a roughly 30% premium over Burlington Northern's New York Stock Exchange closing price on Monday. Berkshire also agreed to assume $10 billion in outstanding Burlington Northern debt.
The deal is the biggest acquisition in Berkshire's history and, in Buffett's words, "an all-in wager on the economic future of the United States." In a statement, Burlington Northern CEO Matthew Rose added: "We admire Warren's leadership philosophy supporting long-term investment that will allow BNSF to focus on the future needs of our railroad." Pending an antitrust review by the Justice Dept. because Berkshire has smaller stakes in other railroads, the deal is expected to close early next year.
Berkshire has been eyeing freight trains for some time. In 2006, the company bought a 10.9% stake in Burlington Northern, later increasing its holding to 22%. On Tuesday Berkshire bought the rest of the company for $100 a share in cash and newly issued Berkshire Hathaway stock. About $16 billion of the purchase price is in cash, half of it coming from Berkshire's coffers and the other half borrowed from banks. The price represents a roughly 30% premium over Burlington Northern's New York Stock Exchange closing price on Monday. Berkshire also agreed to assume $10 billion in outstanding Burlington Northern debt.
Sizing Up Buffett's Biggest Bet
Berkshire Hathaway (BRKA) CEO and value investing demigod Warren Buffett has been hinting for some time that he was looking for a large company to buy with Berkshire's huge cash hoard, which stood at about $21 billion at the end of the second quarter. Last year he described his likely targets as "big ones, elephants." On Nov. 3, Buffett bagged a good-sized pachyderm, paying $34 billion—$44 billion, including debt—for sole ownership of Fort Worth (Tex.)-based Burlington Northern Santa Fe Corp. (BNI), the second-largest U.S. railroad.
The deal is the biggest acquisition in Berkshire's history and, in Buffett's words, "an all-in wager on the economic future of the United States." In a statement, Burlington Northern CEO Matthew Rose added: "We admire Warren's leadership philosophy supporting long-term investment that will allow BNSF to focus on the future needs of our railroad." Pending an antitrust review by the Justice Dept. because Berkshire has smaller stakes in other railroads, the deal is expected to close early next year.
Berkshire has been eyeing freight trains for some time. In 2006, the company bought a 10.9% stake in Burlington Northern, later increasing its holding to 22%. On Tuesday Berkshire bought the rest of the company for $100 a share in cash and newly issued Berkshire Hathaway stock. About $16 billion of the purchase price is in cash, half of it coming from Berkshire's coffers and the other half borrowed from banks. The price represents a roughly 30% premium over Burlington Northern's New York Stock Exchange closing price on Monday. Berkshire also agreed to assume $10 billion in outstanding Burlington Northern debt.
The deal is the biggest acquisition in Berkshire's history and, in Buffett's words, "an all-in wager on the economic future of the United States." In a statement, Burlington Northern CEO Matthew Rose added: "We admire Warren's leadership philosophy supporting long-term investment that will allow BNSF to focus on the future needs of our railroad." Pending an antitrust review by the Justice Dept. because Berkshire has smaller stakes in other railroads, the deal is expected to close early next year.
Berkshire has been eyeing freight trains for some time. In 2006, the company bought a 10.9% stake in Burlington Northern, later increasing its holding to 22%. On Tuesday Berkshire bought the rest of the company for $100 a share in cash and newly issued Berkshire Hathaway stock. About $16 billion of the purchase price is in cash, half of it coming from Berkshire's coffers and the other half borrowed from banks. The price represents a roughly 30% premium over Burlington Northern's New York Stock Exchange closing price on Monday. Berkshire also agreed to assume $10 billion in outstanding Burlington Northern debt.
Monday, November 2, 2009
Best Online Bookkeeping for Small Business
One of the best things to happen to small business the last several years is the arrival of computing services that you access online. They are cheap (often free) and eliminate the need for you to have expensive hardware and software in your own location.
Among the most prolific of these services are online billing and bookkeeping websites. They range from free and simple services that let you create and send invoices, to full-blown financial management solutions that can help manage all aspects of your business.
Here are my top five online invoicing and bookkeeping services for small business:
WorkingPoint.com (previously called NetBooks) aspires to be much more than just online bookkeeping. It’s an end-to-end solution that lets you manage your entire small business online. This includes invoicing, bookkeeping, contact management, expense tracking, financial reports, inventory management and more.
The site’s latest offering is a new company profile feature that gives you a free web page. The basic WorkingPoint service (one user) is free “forever.” For additional users, rates start at $10 monthly.
Freshbooks.com – among the first online invoicing services – has hundreds of thousands of users and an expanding lineup of services. It’s core service lets you send and manage invoices and collect payments online. You can brand your system and invoices with your company’s logo.
Where FreshBooks stands apart from most other services is its ability to also let you track time and expenses for yourself, your staff or contractors who may be working on various projects with your team. You can invite contractors to join your team on FreshBooks and receive their invoices all in one place. There’s also a FreshBooks iPhone app.
Zoho Invoice is one of ten helpful business applications from the popular online collaboration site Zoho. It’s free for up to five invoices per month. For larger numbers, pricing ranges from $8 to $35 per month. Zoho Invoice lets you easily send professionally-designed invoices and price quotes to your customers. You can select from different invoice templates, or design your own with your own logo. Plus, you can track invoices, send reminders, accept payments online (through PayPal integration) and acknowledge receipts. If you sell overseas, there’s a feature that lets you send invoices and quotes in different currencies.
For a service dedicated primarily to invoicing, Zoho Invoice is a great choice, and leverages many of the same features that have made it’s other award-winning applications so popular among freelancers, small business owners and professionals such as attorneys, architects and tech consultants. Other features include automated invoicing for recurring bills, and the ability to import or export data to or from the system anytime with standard formats.
QuickBooks Online Free: This simplified, free version of the QuickBooks accounting and bookkeeping system for small business lacks the more powerful features of QuickBooks’ other versions, but it still packs a nice little punch for a small solo business if your needs are modest. You can instantly create invoices, track your money and manage up to 20 customers.
The “easy accounting” features of QuickBooks Online Free are designed for people who don’t know anything about accounting. It helps you get and stay financially organized by gathering your important information in a central place. Your information is then available to you anytime, anywhere via the Internet.
BillingBoss.com, from The Sage Group, is one of the newest additions to the online bookkeeping lineup. Billing Boss is a free online invoicing tool designed for small business owners and freelancers to create, send and track invoices. It’s easy to use and you can create your first invoice within minutes of signing up.
If you’ve been getting by with spreadsheets, or use complicated accounting software only for its invoicing tool, BillingBoss might be for you. Unlike some free services, there’s no limit on the number of invoices you can create or send with Billing Boss. You can also set it up so customers can pay you online through Billing Boss. There’s also comfort in knowing this service is run by one of the world’s leading business software companies, and that your data and customer information are encrypted and stored in secure facilities.
Tuesday, October 27, 2009
Business
A business (also called a company, enterprise or firm) is a legally recognized organization designed to provide goods and/or services to consumers.[1] Businesses are predominant in capitalist economies, most being privately owned and formed to earn profit that will increase the wealth of its owners and grow the business itself. The owners and operators of a business have as one of their main objectives the receipt or generation of a financial return in exchange for work and acceptance of risk. Notable exceptions include cooperative enterprises and state-owned enterprises. Businesses can also be formed not-for-profit or be state-owned.
The etymology of "business" relates to the state of being busy either as an individual or society as a whole, doing commercially viable and profitable work. The term "business" has at least three usages, depending on the scope — the singular usage (above) to mean a particular company or corporation, the generalized usage to refer to a particular market sector, such as "the music business" and compound forms such as agribusiness, or the broadest meaning to include all activity by the community of suppliers of goods and services. However, the exact definition of business, like much else in the philosophy of business, is a matter of debate.
The etymology of "business" relates to the state of being busy either as an individual or society as a whole, doing commercially viable and profitable work. The term "business" has at least three usages, depending on the scope — the singular usage (above) to mean a particular company or corporation, the generalized usage to refer to a particular market sector, such as "the music business" and compound forms such as agribusiness, or the broadest meaning to include all activity by the community of suppliers of goods and services. However, the exact definition of business, like much else in the philosophy of business, is a matter of debate.
Friday, October 23, 2009
Bank Bonuses Spark Talent War
or as long as there has been outrage over Wall Street megabonuses, executives have justified their handsome rewards by warning that if companies didn't pay up, talent would flee to rival firms. Now it appears that theory is being confirmed. Recruitment experts hired by Wall Street trading houses, which are expanding to handle booming stock and bond trades, say they are zeroing in on companies such as Citigroup (C), American International Group (AIG), and others that are under U.S. or European pay restrictions.
"The target list of nearly every major executive search firm these days includes executives from firms under TARP control," says Dennis Carey, a senior client partner at executive search firm Korn/Ferry International (KFY). He is referring to the Troubled Asset Relief Program, which pumped billions of U.S. taxpayer dollars into banks like Citi and Bank of America (BAC) during the financial crisis but also capped pay at the firms. "There's a significant opportunity to raid that talent," Carey says.
White House officials said on Oct. 21 that federal pay czar Kenneth Feinberg will slash total compensation for the top 25 highest earners at the seven firms that received massive injections by an average of 50% and lower salaries by 90% on average. Earlier in the month, Britain announced it had signed up Barclays (BCS), HSBC (HBC), Lloyds Banking Group (LYG), Standard Chartered (STAN.L), and the Royal Bank of Scotland (RBS) to follow limits on bonuses agreed upon by the Group of 20 nations at their September meeting in Pittsburgh. Those recommendations included deferring some bonuses and the possibility of later "clawbacks" of awards if the performance upon which they're based doesn't hold up.
New Rules from the Fed
The pay gap could be tightened somewhat under rules the Federal Reserve proposed on Oct. 22. Banks in the U.S. would have to start persuading their regulators that pay practices don't threaten the bank's stability by encouraging excessive risk-taking; the Fed plans to compare pay policies across some 28 big and complex banks to rein in risk as well. But the rules may not go into effect for weeks or months as the Fed solicits and digests comments on the idea, and the proposal includes no firm pay limits or formulas.
Some financial institutions have emerged from the financial crisis intact and eager to seize market share from their troubled rivals. Firms such as Goldman Sachs (GS) and JPMorgan Chase (JPM) quickly paid back their TARP funds so they could operate free of the federal restrictions—and now find that position to be a valuable recruiting tool. "This is certainly one competitive advantage for some organizations, albeit one that is quite unique to this moment in time in the markets," says Timothy L. Holt, managing partner in the financial-services practice at executive recruiting firm Heidrick & Struggles (HSII).
Case in point: On Oct. 26, AIG Vice-Chairman Matthew Winter will become head of Allstate's (ALL) life insurance and retirement unit. Winter is one of at least 49 managers the beleaguered insurance giant has lost since September 2008, according to Bloomberg. AIG is struggling to turn itself around following a federal government infusion that has now reached $182.3 billion
"The target list of nearly every major executive search firm these days includes executives from firms under TARP control," says Dennis Carey, a senior client partner at executive search firm Korn/Ferry International (KFY). He is referring to the Troubled Asset Relief Program, which pumped billions of U.S. taxpayer dollars into banks like Citi and Bank of America (BAC) during the financial crisis but also capped pay at the firms. "There's a significant opportunity to raid that talent," Carey says.
White House officials said on Oct. 21 that federal pay czar Kenneth Feinberg will slash total compensation for the top 25 highest earners at the seven firms that received massive injections by an average of 50% and lower salaries by 90% on average. Earlier in the month, Britain announced it had signed up Barclays (BCS), HSBC (HBC), Lloyds Banking Group (LYG), Standard Chartered (STAN.L), and the Royal Bank of Scotland (RBS) to follow limits on bonuses agreed upon by the Group of 20 nations at their September meeting in Pittsburgh. Those recommendations included deferring some bonuses and the possibility of later "clawbacks" of awards if the performance upon which they're based doesn't hold up.
New Rules from the Fed
The pay gap could be tightened somewhat under rules the Federal Reserve proposed on Oct. 22. Banks in the U.S. would have to start persuading their regulators that pay practices don't threaten the bank's stability by encouraging excessive risk-taking; the Fed plans to compare pay policies across some 28 big and complex banks to rein in risk as well. But the rules may not go into effect for weeks or months as the Fed solicits and digests comments on the idea, and the proposal includes no firm pay limits or formulas.
Some financial institutions have emerged from the financial crisis intact and eager to seize market share from their troubled rivals. Firms such as Goldman Sachs (GS) and JPMorgan Chase (JPM) quickly paid back their TARP funds so they could operate free of the federal restrictions—and now find that position to be a valuable recruiting tool. "This is certainly one competitive advantage for some organizations, albeit one that is quite unique to this moment in time in the markets," says Timothy L. Holt, managing partner in the financial-services practice at executive recruiting firm Heidrick & Struggles (HSII).
Case in point: On Oct. 26, AIG Vice-Chairman Matthew Winter will become head of Allstate's (ALL) life insurance and retirement unit. Winter is one of at least 49 managers the beleaguered insurance giant has lost since September 2008, according to Bloomberg. AIG is struggling to turn itself around following a federal government infusion that has now reached $182.3 billion
Sunday, October 18, 2009
Guide to Analyzing and Interpreting Financial Statements
Understanding the financial details of your business – and, at times, being able to communicate them to others – can mean the difference between success and failure. Informed business owners pay attention to the numbers that show whether a business is profitable, has cash flow problems or is spending too much in certain areas. Analyzing financial data also can help you set business objectives on a monthly, quarterly or yearly basis. Here are three reasons to organize and study financial statements:
Get an overview of how your business is doing and where it is heading.
Keep control of general and administrative expenses.
Careful records can help attract investors to your business.
Action Steps
The best contacts and resources to help you get it done
Discover the details of different financial statements
The income statement and balance sheet are the main parts of a financial statement. Income statements, also called profit and loss (p&l) statements, show the money in (income, revenue and sales) and money out (expenses and costs) of a business. What's left over is the profit. Balance sheets show what a company owns and what it owes. A cash flow statement looks at ways cash enters and leaves a company.
I recommend: Get up to speed on financial statements at StudyFinance or Tutorialized. At StudyFinance, from the University of Arizona, you can get a particularly succinct overview and examples of key statements, including the balance sheet, income statement and other basic financial statements.
Know the important line items
There are several key pieces of information you'll want to analyze. Working capital is determined by subtracting current liabilities from current assets. Look at the amount of revenue you earn on a monthly, quarterly and yearly basis to see if you are meeting your business objectives. Compensation may be one of the biggest expenses if you have employees. Don't forget to include the costs of your own salary and benefits.
I recommend: The U.S. Small Business Administration has a helpful section on financial statement basics for business startups. You'll find detailed explanations of balance sheets and income statements.
Enlist software help to get your financial ducks in order
Financial software can help collect and organize financial information, as well as run a wide range of charts and reports.
I recommend: Install MYOB or Quick Books on your computer to handle your accounting needs. Use the budgeting function to record numbers and generate reports. Each program offers extensive help to prepare and understand the different types of financial statements you can produce.
Check the bottom line on profits
Profit margin is found by subtracting general and administrative expenses from gross profit, then dividing that number by sales.
I recommend: Infor has software that creates financial reports. Write an annual report to share company progress and financial data with investors.
Establish more financial credibility
Listing your company's financial information with a business database can help give potential clients an overview of your company's financial history and stability. Financial statements, bill-paying history and creditworthiness are just some of the areas that clients may be able to access in a report about your company.
I recommend: D&B has small business reporting solutions.
Tips & Tactics
Helpful advice for making the most of this Guide
Manage information proactively and look through financial statements on a monthly basis.
Carefully kept records are crucial in case you must respond to an outside audit.
Keep an internal trail of transactions so that you can track any discrepancies, such as unrecorded payments.
Get an overview of how your business is doing and where it is heading.
Keep control of general and administrative expenses.
Careful records can help attract investors to your business.
Action Steps
The best contacts and resources to help you get it done
Discover the details of different financial statements
The income statement and balance sheet are the main parts of a financial statement. Income statements, also called profit and loss (p&l) statements, show the money in (income, revenue and sales) and money out (expenses and costs) of a business. What's left over is the profit. Balance sheets show what a company owns and what it owes. A cash flow statement looks at ways cash enters and leaves a company.
I recommend: Get up to speed on financial statements at StudyFinance or Tutorialized. At StudyFinance, from the University of Arizona, you can get a particularly succinct overview and examples of key statements, including the balance sheet, income statement and other basic financial statements.
Know the important line items
There are several key pieces of information you'll want to analyze. Working capital is determined by subtracting current liabilities from current assets. Look at the amount of revenue you earn on a monthly, quarterly and yearly basis to see if you are meeting your business objectives. Compensation may be one of the biggest expenses if you have employees. Don't forget to include the costs of your own salary and benefits.
I recommend: The U.S. Small Business Administration has a helpful section on financial statement basics for business startups. You'll find detailed explanations of balance sheets and income statements.
Enlist software help to get your financial ducks in order
Financial software can help collect and organize financial information, as well as run a wide range of charts and reports.
I recommend: Install MYOB or Quick Books on your computer to handle your accounting needs. Use the budgeting function to record numbers and generate reports. Each program offers extensive help to prepare and understand the different types of financial statements you can produce.
Check the bottom line on profits
Profit margin is found by subtracting general and administrative expenses from gross profit, then dividing that number by sales.
I recommend: Infor has software that creates financial reports. Write an annual report to share company progress and financial data with investors.
Establish more financial credibility
Listing your company's financial information with a business database can help give potential clients an overview of your company's financial history and stability. Financial statements, bill-paying history and creditworthiness are just some of the areas that clients may be able to access in a report about your company.
I recommend: D&B has small business reporting solutions.
Tips & Tactics
Helpful advice for making the most of this Guide
Manage information proactively and look through financial statements on a monthly basis.
Carefully kept records are crucial in case you must respond to an outside audit.
Keep an internal trail of transactions so that you can track any discrepancies, such as unrecorded payments.
Tuesday, October 6, 2009
Guide to Analyzing and Interpreting Financial Statements
Understanding the financial details of your business – and, at times, being able to communicate them to others – can mean the difference between success and failure. Informed business owners pay attention to the numbers that show whether a business is profitable, has cash flow problems or is spending too much in certain areas. Analyzing financial data also can help you set business objectives on a monthly, quarterly or yearly basis. Here are three reasons to organize and study financial statements:
Get an overview of how your business is doing and where it is heading.
Keep control of general and administrative expenses.
Careful records can help attract investors to your business.
Action Steps
The best contacts and resources to help you get it done
Discover the details of different financial statements
The income statement and balance sheet are the main parts of a financial statement. Income statements, also called profit and loss (p&l) statements, show the money in (income, revenue and sales) and money out (expenses and costs) of a business. What's left over is the profit. Balance sheets show what a company owns and what it owes. A cash flow statement looks at ways cash enters and leaves a company.
Get an overview of how your business is doing and where it is heading.
Keep control of general and administrative expenses.
Careful records can help attract investors to your business.
Action Steps
The best contacts and resources to help you get it done
Discover the details of different financial statements
The income statement and balance sheet are the main parts of a financial statement. Income statements, also called profit and loss (p&l) statements, show the money in (income, revenue and sales) and money out (expenses and costs) of a business. What's left over is the profit. Balance sheets show what a company owns and what it owes. A cash flow statement looks at ways cash enters and leaves a company.
Monday, September 28, 2009
Guide to Small Business Accounting Software
Gone are the days when paper-based ledgers were the only option to track key accounting tasks. Now, a plethora of small business accounting software choices are available. Accounting software can help your business in numerous ways: reducing errors, saving time, organizing customer data, streamlining payroll and giving you a complete view of your company's financial status. With a clear picture of your financials, you can make smarter business decisions.
Before choosing among software accounting systems, here are some key questions:
Can it scale or upgrade if my business grows?
Is it easy to learn and easy to use?
Does it have all the features I need?
Does it have features I don't need?
Will it run on my computer?
Will it work on an office network?
Does the vendor offer online and phone support?
Is the price right for my needs?
Action Steps
Before choosing among software accounting systems, here are some key questions:
Can it scale or upgrade if my business grows?
Is it easy to learn and easy to use?
Does it have all the features I need?
Does it have features I don't need?
Will it run on my computer?
Will it work on an office network?
Does the vendor offer online and phone support?
Is the price right for my needs?
Action Steps
Friday, September 25, 2009
Guide to Facebook Basics for Your Business
Facebook is a website where you may upload personal information, including photos and videos, and share this information with a network of friends of your choosing. The purpose is to keep in touch with your network of friends by using Facebook's "applications" to send messages to each other, share photos, videos, files, and interact in other creative ways.
What you must know about using Facebook for your business:
1. Facebook offers direct marketing toward anyone in your list of "friends." Your "friends" are automatically updated whenever you update an item in your profile. These updates may contain notifications of sales, company information, new product releases, etc.
2. Facebook allows you to create groups surrounding a specific interest. By creating a group around your company's area of expertise, you can attract other Facebook users into your group of friends with similar interests.
3. Facebook allows companies to create "applications" that allow Facebook members to interact with their friends in creative ways. These applications create exposure for the company who built them because the company's brand may be displayed on the application itself.
What you must know about using Facebook for your business:
1. Facebook offers direct marketing toward anyone in your list of "friends." Your "friends" are automatically updated whenever you update an item in your profile. These updates may contain notifications of sales, company information, new product releases, etc.
2. Facebook allows you to create groups surrounding a specific interest. By creating a group around your company's area of expertise, you can attract other Facebook users into your group of friends with similar interests.
3. Facebook allows companies to create "applications" that allow Facebook members to interact with their friends in creative ways. These applications create exposure for the company who built them because the company's brand may be displayed on the application itself.
Tuesday, September 22, 2009
Guide to Small Business Accounting Software
Gone are the days when paper-based ledgers were the only option to track key accounting tasks. Now, a plethora of small business accounting software choices are available. Accounting software can help your business in numerous ways: reducing errors, saving time, organizing customer data, streamlining payroll and giving you a complete view of your company's financial status. With a clear picture of your financials, you can make smarter business decisions.
Before choosing among software accounting systems, here are some key questions:
Can it scale or upgrade if my business grows?
Is it easy to learn and easy to use?
Does it have all the features I need?
Does it have features I don't need?
Will it run on my computer?
Will it work on an office network?
Does the vendor offer online and phone support?
Is the price right for my needs?
Action Steps
The best contacts and resources to help you get it done
QuickBooks rules the roost in small business accounting software
The leading small business accounting software offers many products to fit your needs. Simple Start, its most basic version, is ideal for sole proprietors and tracks sales and expenses, prints checks, pays bills and prepares invoices. More powerful, yet still easy-to-use versions are geared for multi-users in growing small businesses. They work with Microsoft Office and offer additional features, such as managing payroll, forecasting, budgeting and tracking inventory. QuickBooks also offers industry-specific accounting systems for retailers, professional services, manufacturers, nonprofits, wholesalers/distributors, contractors and accountants.
Before choosing among software accounting systems, here are some key questions:
Can it scale or upgrade if my business grows?
Is it easy to learn and easy to use?
Does it have all the features I need?
Does it have features I don't need?
Will it run on my computer?
Will it work on an office network?
Does the vendor offer online and phone support?
Is the price right for my needs?
Action Steps
The best contacts and resources to help you get it done
QuickBooks rules the roost in small business accounting software
The leading small business accounting software offers many products to fit your needs. Simple Start, its most basic version, is ideal for sole proprietors and tracks sales and expenses, prints checks, pays bills and prepares invoices. More powerful, yet still easy-to-use versions are geared for multi-users in growing small businesses. They work with Microsoft Office and offer additional features, such as managing payroll, forecasting, budgeting and tracking inventory. QuickBooks also offers industry-specific accounting systems for retailers, professional services, manufacturers, nonprofits, wholesalers/distributors, contractors and accountants.
Sunday, August 30, 2009
Guide to Wireless Internet Service Providers
Laptops are getting lighter and work is going mobile. Your neighborhood Starbucks some mornings can look more like call center than a coffee shop.
Get ready for an explosion of roving Internet users. Wireless Internet service is rapidly spreading in popularity and dropping in price in order to compete with its location-specific predecessor, known as Wi-Fi. The big difference is range. Wherever your cell phone works, you can log on with a wireless Internet service.
In this guide to wireless Internet access:
1. Major wireless Internet providers
2. Regional and rural wireless Internet access
3. Handheld devices that use wireless Internet service
4. What's coming from wireless Internet service providers
Action Steps
The best contacts and resources to help you get it done
Understanding wireless Internet service basics
Wireless Internet access is, in this case, not the same as seeing a Web page or e-mail on your phone. Instead, wireless Internet here means a true broadband connection to a laptop or desktop computer via radio or cellular signals.
I recommend: Why bother? Well, a couple of years ago, wireless Internet was slow and trouble to use. Now, thanks to technological advances, getting on the Web from literally anywhere in cellular range really works. Naturally, big cellular companies are piling on, including Verizon, Sprint-Nextel, Cingular (now AT&T), and T-Mobile. See more Internet service providers at Business.com.
Wireless Internet got its start as an alternative for rural users
Since the phone companies weren't in a hurry to build out DSL and cable was slow off the market to compete, a lot of smaller, regional wireless Internet providers spring up in the Midwest and Western states. You might get a better deal on rates if you compare.
I recommend: Some key vendors of wireless Internet access include MobilePro, Clearwire, Speednet, Plateau Meganet, Midwest Wireless, Mesa Networks, Commspeed, Ama Techtel, Prairie Inet, and Camvera. See a directory of wireless internet service providers at Business.com.
Wireless Internet access is not limited to laptops
While nothing can really beat the robustness of a nice strong laptop for most office use, the fact that wireless Internet access is being realized over cellular networks has given new life to the moribund handheld computer, or PDA, category.
I recommend: You can easily do much of your wireless Internet activities like e-mail and basic Web browsing using devices from Blackberry or a smartphone from Motorola, Samsung, Nokia and Sony Ericsson device.
What wireless Internet providers will do next
Think of wireless Internet service in stages: Wi-Fi connected us in so-called hotspots like hotel lobbies, then wireless Internet service reached out through cellular. Next up is Wi-Max, a Wi-Fi standard that can reach for miles and through natural obstacles like buildings.
I recommend: It's in development, but Wi-Max is already being rolled out in some key markets by wireless Internet providers. Laptops will have to go through re-engineering, too, but take full advantage, but it won't take long. Follow developments at the Wi-Max Forum.
Tips & Tactics
Helpful advice for making the most of this Guide
If you expect to use your laptop to surf the Web using a wireless Internet provider, you will first need a PC card, which fits into a side slot on most laptops and picks up the cellular signal. Your wireless Internet service provider should sell this to you cheaply.
"Broadband" is a slippery concept, but your wireless Internet service connection speeds should be many times over the dial-up but might slightly lag compared to your office connection.
Pricing for wireless Internet service has been higher than household DSL or cable, but look for prices to drop once businesses accounts have been served and wireless Internet providers have no one left to sell to but home users.
Get ready for an explosion of roving Internet users. Wireless Internet service is rapidly spreading in popularity and dropping in price in order to compete with its location-specific predecessor, known as Wi-Fi. The big difference is range. Wherever your cell phone works, you can log on with a wireless Internet service.
In this guide to wireless Internet access:
1. Major wireless Internet providers
2. Regional and rural wireless Internet access
3. Handheld devices that use wireless Internet service
4. What's coming from wireless Internet service providers
Action Steps
The best contacts and resources to help you get it done
Understanding wireless Internet service basics
Wireless Internet access is, in this case, not the same as seeing a Web page or e-mail on your phone. Instead, wireless Internet here means a true broadband connection to a laptop or desktop computer via radio or cellular signals.
I recommend: Why bother? Well, a couple of years ago, wireless Internet was slow and trouble to use. Now, thanks to technological advances, getting on the Web from literally anywhere in cellular range really works. Naturally, big cellular companies are piling on, including Verizon, Sprint-Nextel, Cingular (now AT&T), and T-Mobile. See more Internet service providers at Business.com.
Wireless Internet got its start as an alternative for rural users
Since the phone companies weren't in a hurry to build out DSL and cable was slow off the market to compete, a lot of smaller, regional wireless Internet providers spring up in the Midwest and Western states. You might get a better deal on rates if you compare.
I recommend: Some key vendors of wireless Internet access include MobilePro, Clearwire, Speednet, Plateau Meganet, Midwest Wireless, Mesa Networks, Commspeed, Ama Techtel, Prairie Inet, and Camvera. See a directory of wireless internet service providers at Business.com.
Wireless Internet access is not limited to laptops
While nothing can really beat the robustness of a nice strong laptop for most office use, the fact that wireless Internet access is being realized over cellular networks has given new life to the moribund handheld computer, or PDA, category.
I recommend: You can easily do much of your wireless Internet activities like e-mail and basic Web browsing using devices from Blackberry or a smartphone from Motorola, Samsung, Nokia and Sony Ericsson device.
What wireless Internet providers will do next
Think of wireless Internet service in stages: Wi-Fi connected us in so-called hotspots like hotel lobbies, then wireless Internet service reached out through cellular. Next up is Wi-Max, a Wi-Fi standard that can reach for miles and through natural obstacles like buildings.
I recommend: It's in development, but Wi-Max is already being rolled out in some key markets by wireless Internet providers. Laptops will have to go through re-engineering, too, but take full advantage, but it won't take long. Follow developments at the Wi-Max Forum.
Tips & Tactics
Helpful advice for making the most of this Guide
If you expect to use your laptop to surf the Web using a wireless Internet provider, you will first need a PC card, which fits into a side slot on most laptops and picks up the cellular signal. Your wireless Internet service provider should sell this to you cheaply.
"Broadband" is a slippery concept, but your wireless Internet service connection speeds should be many times over the dial-up but might slightly lag compared to your office connection.
Pricing for wireless Internet service has been higher than household DSL or cable, but look for prices to drop once businesses accounts have been served and wireless Internet providers have no one left to sell to but home users.
Thursday, August 13, 2009
Guide to Sample Business Plans
Need to create a great business plan, fast? Hey, why reinvent the wheel! Unless your business plan is something never before conceived of, there's probably a free sample business plan for precisely what you need that you can adapt as your very own. You won't have to worry about what components to include in your business plan, or how long to make it. Just fill in the blanks (well, maybe not quite that simple, but you get the idea).
According to Tim Berry, a business plan guru and founder and CEO of Palo Alto Software, every successful launch starts with a good business plan. Using business plan software to help you is a good idea, too. And starting with a good business plan sample will help you write a business plan in record time. Some of Berry's keys to business plan success include these:
1. Is the business plan simple? Is it easy to understand and to act on? Does your small business plan communicate its contents easily and practically?
2. Is the plan specific? Are its objectives concrete and measurable? Does it include specific actions and activities, each with specific dates of completion, specific persons responsible and specific budgets?
3. Is the business plan realistic? Are the sales goals, expense budgets, and milestone dates realistic? Nothing stifles implementation like a business plan with unrealistic goals.
4. Is the plan complete? Does it include all the necessary elements? Have you tapped the right business plan resources, including free sample business plans and business plan software? Requirements of a business plan vary, depending on the context. There is no guarantee, however, that the plan will work if it doesn't cover the main bases.
Business.com's "What Works for Business" blog is a great way to keep up with the latest solutions, trends and strategies for small and medium business -- including business plan competitions and startup resources.
Action Steps
The best contacts and resources to help you get it done
Locate sample business plans specific to your business or industry
Many free sample business plans are available online, along with expert help to write a business plan.
I recommend: Bplans.com is a terrifically useful site that offers free sample business plans for 60 different types of businesses, from artificial flower importing, to wedding consultants. If you purchase their best-selling business plan software Business Plan Pro, it comes with over 500 plans that you can make your own.
See real-life sample plans in a business plan archive
View actual business plans of past and present businesses online.
I recommend: I recommend: Business Plan Archive is an online repository for real business plans. Webmergers.com and the University of Maryland's School of Business built the site to collect business plans for posterity. BusinessPlans.com has samples to view. Or download free business plan templates for a startup or established business from SCORE.
Get a ready-made business plan software template
Not quite a sample business plan, but a track-tested business plan template that has been used by many startup entrepreneurs can also be a big help.
I recommend: Business Plan Success is business plan software that delivers a professionally written business plan template that you can use to quickly write a business plan that succeeds.
Go short for your sample business plan
Get a sample short-form business plan for a quick company overview or presentation
I recommend: AllBusiness has a sample short form plan you can purchase and download for $15.
Tips & Tactics
Helpful advice for making the most of this Guide
* The most standard type of business plan is a startup plan, which lays out the steps for a new business. It describes the company, product or service, market, forecasts, strategy, implementation milestones, management team, projected sales, profit and loss, balance sheet, cash flow, and more.
* The plan always starts with an executive summary and ends with appendices showing monthly projections for the first year.
* Internal plans are not intended for outside investors, banks, or other third parties. They might not include detailed description of company or management team. They may or may not include detailed financial projections that become forecasts and budgets. They may cover main points as bullet points in slides (such as PowerPoint slides) rather than detailed texts.
According to Tim Berry, a business plan guru and founder and CEO of Palo Alto Software, every successful launch starts with a good business plan. Using business plan software to help you is a good idea, too. And starting with a good business plan sample will help you write a business plan in record time. Some of Berry's keys to business plan success include these:
1. Is the business plan simple? Is it easy to understand and to act on? Does your small business plan communicate its contents easily and practically?
2. Is the plan specific? Are its objectives concrete and measurable? Does it include specific actions and activities, each with specific dates of completion, specific persons responsible and specific budgets?
3. Is the business plan realistic? Are the sales goals, expense budgets, and milestone dates realistic? Nothing stifles implementation like a business plan with unrealistic goals.
4. Is the plan complete? Does it include all the necessary elements? Have you tapped the right business plan resources, including free sample business plans and business plan software? Requirements of a business plan vary, depending on the context. There is no guarantee, however, that the plan will work if it doesn't cover the main bases.
Business.com's "What Works for Business" blog is a great way to keep up with the latest solutions, trends and strategies for small and medium business -- including business plan competitions and startup resources.
Action Steps
The best contacts and resources to help you get it done
Locate sample business plans specific to your business or industry
Many free sample business plans are available online, along with expert help to write a business plan.
I recommend: Bplans.com is a terrifically useful site that offers free sample business plans for 60 different types of businesses, from artificial flower importing, to wedding consultants. If you purchase their best-selling business plan software Business Plan Pro, it comes with over 500 plans that you can make your own.
See real-life sample plans in a business plan archive
View actual business plans of past and present businesses online.
I recommend: I recommend: Business Plan Archive is an online repository for real business plans. Webmergers.com and the University of Maryland's School of Business built the site to collect business plans for posterity. BusinessPlans.com has samples to view. Or download free business plan templates for a startup or established business from SCORE.
Get a ready-made business plan software template
Not quite a sample business plan, but a track-tested business plan template that has been used by many startup entrepreneurs can also be a big help.
I recommend: Business Plan Success is business plan software that delivers a professionally written business plan template that you can use to quickly write a business plan that succeeds.
Go short for your sample business plan
Get a sample short-form business plan for a quick company overview or presentation
I recommend: AllBusiness has a sample short form plan you can purchase and download for $15.
Tips & Tactics
Helpful advice for making the most of this Guide
* The most standard type of business plan is a startup plan, which lays out the steps for a new business. It describes the company, product or service, market, forecasts, strategy, implementation milestones, management team, projected sales, profit and loss, balance sheet, cash flow, and more.
* The plan always starts with an executive summary and ends with appendices showing monthly projections for the first year.
* Internal plans are not intended for outside investors, banks, or other third parties. They might not include detailed description of company or management team. They may or may not include detailed financial projections that become forecasts and budgets. They may cover main points as bullet points in slides (such as PowerPoint slides) rather than detailed texts.
Tuesday, July 28, 2009
Guide to Low-Cost Businesses You Can Start
If you dream of being an entrepreneur, but lack the big startup bucks required by some new ventures, don't fret. With a little time and not a lot of money, you can still make your business dream a reality. A low-cost business, which requires a minimal investment for supplies and marketing, is perfect for whetting an entrepreneurial appetite if you're:
Already employed, but looking to dabble in your own side venture
Unemployed and looking to start your first business
A stay-at-home parent or student who's looking for extra income
A new "retiree" who isn't quite ready to completely retire
Action Steps
The best contacts and resources to help you get it done
Find low-cost business ideas and opportunities online
Coming up with ideas for low-cost businesses is easy with simple Web searches. With just a few clicks on your keyboard, you can find business opportunities that won't break the bank.
I recommend: Find a list of low-investment business startup opportunities at BusinessNation.com and go to Entrepreneur Magazine's SmallBizBooks.com to purchase how-to guides for businesses that take less than $10,000 to launch. Work.com's Guide to Resources for Starting a Business will hook you up with all of the help you need to get going.
Personal services
You already need to run your own errands; why not run other people's, too? With a reliable vehicle and available credit you can easily do other people's shopping - for a fee, of course.
I recommend: Advertise your services at Craigslist, which allows you to post free classified ads that stay online for as long as 45 days, depending on the type of ad and the city in which you live.
eBay sales
You can make a decent living buying antiques and collectibles at garage sales or flea markets, then selling them to hungry buyers online.
I recommend: Sell your stuff online at eBay. You'll need a digital camera with which to photograph your products, which you can buy for under $150 at Best Buy or Circuit City. Or take your items to an eBay drop-off store, such as AuctionItToday, which takes professional photographs of your items, writes copy and posts it for you.
House- and pet-sitting
Give your neighbors peace of mind by taking care of their houses when they're out of town, and their pets while they're at work.
I recommend: Market your services online at HouseCarers.com, which for a small fee will let you post an ad — good for an entire year — to its searchable directory of house-sitters nationwide.
Professional organization
Everyone wants to be organized, but few people have the time. For a fee, you can save people from their own stuff.
I recommend: Join the National Association of Professional Organizers, which will connect you with customers and teach you the tools of the trade.
Clerical work
Many businesses can't afford to hire a full-time secretary. That doesn't stop the paper from piling up on their desks, however. Make a business out of doing data entry, bookkeeping and transcription for your fellow business owners.
I recommend: Microsoft Office Small Business Edition is all you'll need to do office work for other businesses; it includes all the necessary applications and will be compatible with most any client's existing software.
Tutoring
Were you a good student? If so, consider tutoring. You can help kids of any age in any subject, from young children who need help learning to read to teens who need help studying for the SAT.
I recommend: You'll need to study up on a subject yourself before you can teach it; SparkNotes offers free online study guides on a variety of topics within a number of subjects. Obtain tutor certification from TutorNation.com.
Tips & Tactics
Helpful advice for making the most of this Guide
A low-cost startup isn't likely to make you any money in its first few months. Stick with it, though, and it may just burgeon into a full-time opportunity.
Run your business from your home to save money on rent and utilities. Doing so will save on taxes, too, because a portion of your mortgage and bills will be tax-deductible come April.
If you're new to business, consider being a weekends-only entrepreneur until you learn the ropes of running your own company.
Already employed, but looking to dabble in your own side venture
Unemployed and looking to start your first business
A stay-at-home parent or student who's looking for extra income
A new "retiree" who isn't quite ready to completely retire
Action Steps
The best contacts and resources to help you get it done
Find low-cost business ideas and opportunities online
Coming up with ideas for low-cost businesses is easy with simple Web searches. With just a few clicks on your keyboard, you can find business opportunities that won't break the bank.
I recommend: Find a list of low-investment business startup opportunities at BusinessNation.com and go to Entrepreneur Magazine's SmallBizBooks.com to purchase how-to guides for businesses that take less than $10,000 to launch. Work.com's Guide to Resources for Starting a Business will hook you up with all of the help you need to get going.
Personal services
You already need to run your own errands; why not run other people's, too? With a reliable vehicle and available credit you can easily do other people's shopping - for a fee, of course.
I recommend: Advertise your services at Craigslist, which allows you to post free classified ads that stay online for as long as 45 days, depending on the type of ad and the city in which you live.
eBay sales
You can make a decent living buying antiques and collectibles at garage sales or flea markets, then selling them to hungry buyers online.
I recommend: Sell your stuff online at eBay. You'll need a digital camera with which to photograph your products, which you can buy for under $150 at Best Buy or Circuit City. Or take your items to an eBay drop-off store, such as AuctionItToday, which takes professional photographs of your items, writes copy and posts it for you.
House- and pet-sitting
Give your neighbors peace of mind by taking care of their houses when they're out of town, and their pets while they're at work.
I recommend: Market your services online at HouseCarers.com, which for a small fee will let you post an ad — good for an entire year — to its searchable directory of house-sitters nationwide.
Professional organization
Everyone wants to be organized, but few people have the time. For a fee, you can save people from their own stuff.
I recommend: Join the National Association of Professional Organizers, which will connect you with customers and teach you the tools of the trade.
Clerical work
Many businesses can't afford to hire a full-time secretary. That doesn't stop the paper from piling up on their desks, however. Make a business out of doing data entry, bookkeeping and transcription for your fellow business owners.
I recommend: Microsoft Office Small Business Edition is all you'll need to do office work for other businesses; it includes all the necessary applications and will be compatible with most any client's existing software.
Tutoring
Were you a good student? If so, consider tutoring. You can help kids of any age in any subject, from young children who need help learning to read to teens who need help studying for the SAT.
I recommend: You'll need to study up on a subject yourself before you can teach it; SparkNotes offers free online study guides on a variety of topics within a number of subjects. Obtain tutor certification from TutorNation.com.
Tips & Tactics
Helpful advice for making the most of this Guide
A low-cost startup isn't likely to make you any money in its first few months. Stick with it, though, and it may just burgeon into a full-time opportunity.
Run your business from your home to save money on rent and utilities. Doing so will save on taxes, too, because a portion of your mortgage and bills will be tax-deductible come April.
If you're new to business, consider being a weekends-only entrepreneur until you learn the ropes of running your own company.
Saturday, July 11, 2009
Guide to 3 Free Recession Solutions for Small Business
Succeeding in small business today requires a solid grip on your finances and an arsenal of tech tools to help you collaborate with colleagues, schedule your time, manage customer relationships and leverage the Internet. And guess what? You can get all of that – and more – absolutely free from some of the nation’s top tech companies that support small business.
The free products, services and solutions from these three organizations alone have already helped millions of business owners succeed. They represent some of the “core competencies” any business needs to survive and prosper, including finance, technology, information and customer relationships. Here they are – free for the taking:
1) Free Financial Software from QuickBooks: QuickBooks became the world’s most popular small business financial software because it understands what a small business needs, is easy to use, comes loaded with useful features and can almost instantly make your business more profitable. Best of all, you can download a QuickBooks “Simple Start” free edition 2009 – with no forms, registration or credit card information required – at the Intel Business Exchange Software Store for small business.
The free products, services and solutions from these three organizations alone have already helped millions of business owners succeed. They represent some of the “core competencies” any business needs to survive and prosper, including finance, technology, information and customer relationships. Here they are – free for the taking:
1) Free Financial Software from QuickBooks: QuickBooks became the world’s most popular small business financial software because it understands what a small business needs, is easy to use, comes loaded with useful features and can almost instantly make your business more profitable. Best of all, you can download a QuickBooks “Simple Start” free edition 2009 – with no forms, registration or credit card information required – at the Intel Business Exchange Software Store for small business.
Saturday, July 4, 2009
Guide to 3 Free Recession Solutions for Small Business
Succeeding in small business today requires a solid grip on your finances and an arsenal of tech tools to help you collaborate with colleagues, schedule your time, manage customer relationships and leverage the Internet. And guess what? You can get all of that – and more – absolutely free from some of the nation’s top tech companies that support small business.
The free products, services and solutions from these three organizations alone have already helped millions of business owners succeed. They represent some of the “core competencies” any business needs to survive and prosper, including finance, technology, information and customer relationships. Here they are – free for the taking:
The free products, services and solutions from these three organizations alone have already helped millions of business owners succeed. They represent some of the “core competencies” any business needs to survive and prosper, including finance, technology, information and customer relationships. Here they are – free for the taking:
Thursday, June 25, 2009
Guide to 3 Free Recession Solutions for Small Business
Succeeding in small business today requires a solid grip on your finances and an arsenal of tech tools to help you collaborate with colleagues, schedule your time, manage customer relationships and leverage the Internet. And guess what? You can get all of that – and more – absolutely free from some of the nation’s top tech companies that support small business.
The free products, services and solutions from these three organizations alone have already helped millions of business owners succeed. They represent some of the “core competencies” any business needs to survive and prosper, including finance, technology, information and customer relationships. Here they are – free for the taking:
1) Free Financial Software from QuickBooks: QuickBooks became the world’s most popular small business financial software because it understands what a small business needs, is easy to use, comes loaded with useful features and can almost instantly make your business more profitable. Best of all, you can download a QuickBooks “Simple Start” free edition 2009 – with no forms, registration or credit card information required – at the Intel Business Exchange Software Store for small business.
QuickBooks Simple Start Free Edition 2009, from Intuit, is not “trial” software. It’s fully-functional and never expires. Here are some of the things it will do for you:
Track sales, sales taxes and customer payments
Create estimates and invoices
Print checks, pay bills and track expenses
Manage payroll and payroll taxes
Track up to 20 customer and vendor contacts
Create 14 different financial reports with a single click
Import data from Excel
Of course, Intuit hopes you’ll upgrade to its more powerful products as your business grows. But that’s up to you, and starting with the free, Simple Start version is a great way to organize your finances at zero cost and get more time to spend on other facets of your business.
2) Free Online Applications from GoogleThink Google is just a search engine? Think again. The global Internet giant has morphed into a multi-faceted tool that you can use to help launch and grow your small business. Here’s some of what you can get:
No matter what size business you operate, Google Apps can help you stretch resources and work smarter. Google Docs, for example, enhances productivity and eliminates the need to collaborate with attachments. You can start a project with software like Microsoft Office, and use Google Docs to share files with others for collaborative editing. Everyone accesses the same online copy of the file in Google Docs, so there are no attachment compatibility problems, inbox storage quota issues, or versions to reconcile. When the group is done editing, you can keep the file in Google Docs, or export it back to the original format.
The free products, services and solutions from these three organizations alone have already helped millions of business owners succeed. They represent some of the “core competencies” any business needs to survive and prosper, including finance, technology, information and customer relationships. Here they are – free for the taking:
1) Free Financial Software from QuickBooks: QuickBooks became the world’s most popular small business financial software because it understands what a small business needs, is easy to use, comes loaded with useful features and can almost instantly make your business more profitable. Best of all, you can download a QuickBooks “Simple Start” free edition 2009 – with no forms, registration or credit card information required – at the Intel Business Exchange Software Store for small business.
QuickBooks Simple Start Free Edition 2009, from Intuit, is not “trial” software. It’s fully-functional and never expires. Here are some of the things it will do for you:
Track sales, sales taxes and customer payments
Create estimates and invoices
Print checks, pay bills and track expenses
Manage payroll and payroll taxes
Track up to 20 customer and vendor contacts
Create 14 different financial reports with a single click
Import data from Excel
Of course, Intuit hopes you’ll upgrade to its more powerful products as your business grows. But that’s up to you, and starting with the free, Simple Start version is a great way to organize your finances at zero cost and get more time to spend on other facets of your business.
2) Free Online Applications from GoogleThink Google is just a search engine? Think again. The global Internet giant has morphed into a multi-faceted tool that you can use to help launch and grow your small business. Here’s some of what you can get:
No matter what size business you operate, Google Apps can help you stretch resources and work smarter. Google Docs, for example, enhances productivity and eliminates the need to collaborate with attachments. You can start a project with software like Microsoft Office, and use Google Docs to share files with others for collaborative editing. Everyone accesses the same online copy of the file in Google Docs, so there are no attachment compatibility problems, inbox storage quota issues, or versions to reconcile. When the group is done editing, you can keep the file in Google Docs, or export it back to the original format.
Friday, June 19, 2009
Guide to Why Your Small Business Needs a Web Solution Not a Website
Raise your hand if you have a website for your small business. Now keep it raised if it is generating a significant volume of prospects or sales. Not holding your hand up anymore? You are not alone.
Just a few years ago, small companies flocked to the web in droves, rushing to post their first website, anxious at the prospect of low-cost instant exposure. The web was going to be the great equalizer, putting small business on par with the big brand names, dangling the promise of visitors flocking to a company’s site to purchase its wares or partake in its services. Sound familiar?
Unfortunately, for most small businesses and organizations, the promise fell short and company sales did not skyrocket from an unending march of site visitors. So, what happened? For one, the web quickly became ultra competitive. Millions of sites sprang up in every business category making it virtually impossible to be found in the search engines. What little bit of traffic the businesses may have enjoyed when the site was first launched began to dry up. Also, as the web evolved to become a more interactive user experience, it became more technologically complex and many small business websites did not keep up. The other part of the problem was in the approach; not understanding that just putting together a website, even a pretty one, and finding some faceless company offering cheap web hosting services is not likely to make you the next great success story.
A large hurdle that many small business owners and managers face is the tendency to compartmentalize the web into a few oversimplified tasks: grab a cheap domain name, find a budget small business website design and development person, look for some impossibly low-priced website hosting, and then expect their website to magically appear on page one of Google. Unfortunately, this ends up being a waste of time and money.
Action Steps
The best contacts and resources to help you get it done
A Solutions-Based Approach with Professional Guidance
To create an effective web presence requires a solutions-based approach with clear ideas about what you want to accomplish and who the audience is you are targeting. The right elements have to be present; a well orchestrated website design with cohesive branding, solid technical acumen, clearly defined objectives for the organization, reliable small business web hosting services and some method of marketing your site and tracking the results. The web is constantly evolving and search engine competition is fierce. Being successful on the web requires consistently evaluating the site’s effectiveness based on your objectives, understanding the latest technologies and trends, having a dynamic website marketing plan and constantly fine tuning.
I recommend: While you don’t have to spend a fortune to create real value on the web, you should also be realistic. Understand that being successful will require an investment that you should plan for and a clear vision of how your website fits into the goals and objectives of the organization. If you don’t have the experience and technical resources in-house, working with a professional web solutions provider, preferably one specializing in small business web design and development can provide great benefits.
Just a few years ago, small companies flocked to the web in droves, rushing to post their first website, anxious at the prospect of low-cost instant exposure. The web was going to be the great equalizer, putting small business on par with the big brand names, dangling the promise of visitors flocking to a company’s site to purchase its wares or partake in its services. Sound familiar?
Unfortunately, for most small businesses and organizations, the promise fell short and company sales did not skyrocket from an unending march of site visitors. So, what happened? For one, the web quickly became ultra competitive. Millions of sites sprang up in every business category making it virtually impossible to be found in the search engines. What little bit of traffic the businesses may have enjoyed when the site was first launched began to dry up. Also, as the web evolved to become a more interactive user experience, it became more technologically complex and many small business websites did not keep up. The other part of the problem was in the approach; not understanding that just putting together a website, even a pretty one, and finding some faceless company offering cheap web hosting services is not likely to make you the next great success story.
A large hurdle that many small business owners and managers face is the tendency to compartmentalize the web into a few oversimplified tasks: grab a cheap domain name, find a budget small business website design and development person, look for some impossibly low-priced website hosting, and then expect their website to magically appear on page one of Google. Unfortunately, this ends up being a waste of time and money.
Action Steps
The best contacts and resources to help you get it done
A Solutions-Based Approach with Professional Guidance
To create an effective web presence requires a solutions-based approach with clear ideas about what you want to accomplish and who the audience is you are targeting. The right elements have to be present; a well orchestrated website design with cohesive branding, solid technical acumen, clearly defined objectives for the organization, reliable small business web hosting services and some method of marketing your site and tracking the results. The web is constantly evolving and search engine competition is fierce. Being successful on the web requires consistently evaluating the site’s effectiveness based on your objectives, understanding the latest technologies and trends, having a dynamic website marketing plan and constantly fine tuning.
I recommend: While you don’t have to spend a fortune to create real value on the web, you should also be realistic. Understand that being successful will require an investment that you should plan for and a clear vision of how your website fits into the goals and objectives of the organization. If you don’t have the experience and technical resources in-house, working with a professional web solutions provider, preferably one specializing in small business web design and development can provide great benefits.
Thursday, June 11, 2009
Army strike continues as 66 more militants killed, nine nabbed
General ISPR Major Ather Abbas has said that sixty six terrorists were killed and nine were apprehended, while one civilian was killed and two were injured in various areas of Malakand, Bunnu and South Waziristan. At the same time, four soldiers martyred and 12 were injured including an officer.
According to ISPR press release, Security forces secured Kotka Saifullah and Sara Bangal. Terrorists fired two rockets at Bannu city, resultantly one civilian was killed and two were injured.
During search operation at Sara Bangal, 34 terrorists were killed, while three terrorists were apprehended.
The operation to secure Zindi Khan by security forces is under way.
South Waziristan. Late last night about 400 terrorists attacked Siplatoi and Jandola Fort, resultantly three soldiers martyred and five were injured, while 22 terrorists were killed and large number injured.
Forces are consolidating their positions at secured areas of Kabbal, while operation in remaining area is in progress. During exchange of fire with terrorists, three soldiers were injured.
Army commenced search and destroy operation at Ashro Kandao, Arkot Qilla, Shakardarra, Matta triangle, Sakhra, Matta - Khararai and Sarai on the west of Martung.
Security forces secured Sijban on Runial-Chuprial route. During exchange of fire with terrorists three soldiers were injured.
During exchange of fire between security forces and terrorists in Peochar area, one soldier was injured, while 10 terrorists were killed and six were apprehended.
The siege of villages Shatkas and Ghazigae by Lashkar is continuing. During exchange of fire at Shatkas, lashkar destroyed terrorists bunkers and three hide outs including 1 ammunition dump.
Terrorists fire raided at Zohaib Post near Lal Qilla, resultantly one soldier martyred.
An IED planted by terrorists was exploded on Ambela - Daggar road, resultantly three vehicles were partially damaged. A terrorist house was destroyed at Gatkala. Security forces secured Gat Khela and Jowar area.
Major repair work of main electricity line up to Mingora has been completed with the support of the Army.
Three trucks of rations and non food items were distributed among the stranded people of Swat valley.
According to ISPR press release, Security forces secured Kotka Saifullah and Sara Bangal. Terrorists fired two rockets at Bannu city, resultantly one civilian was killed and two were injured.
During search operation at Sara Bangal, 34 terrorists were killed, while three terrorists were apprehended.
The operation to secure Zindi Khan by security forces is under way.
South Waziristan. Late last night about 400 terrorists attacked Siplatoi and Jandola Fort, resultantly three soldiers martyred and five were injured, while 22 terrorists were killed and large number injured.
Forces are consolidating their positions at secured areas of Kabbal, while operation in remaining area is in progress. During exchange of fire with terrorists, three soldiers were injured.
Army commenced search and destroy operation at Ashro Kandao, Arkot Qilla, Shakardarra, Matta triangle, Sakhra, Matta - Khararai and Sarai on the west of Martung.
Security forces secured Sijban on Runial-Chuprial route. During exchange of fire with terrorists three soldiers were injured.
During exchange of fire between security forces and terrorists in Peochar area, one soldier was injured, while 10 terrorists were killed and six were apprehended.
The siege of villages Shatkas and Ghazigae by Lashkar is continuing. During exchange of fire at Shatkas, lashkar destroyed terrorists bunkers and three hide outs including 1 ammunition dump.
Terrorists fire raided at Zohaib Post near Lal Qilla, resultantly one soldier martyred.
An IED planted by terrorists was exploded on Ambela - Daggar road, resultantly three vehicles were partially damaged. A terrorist house was destroyed at Gatkala. Security forces secured Gat Khela and Jowar area.
Major repair work of main electricity line up to Mingora has been completed with the support of the Army.
Three trucks of rations and non food items were distributed among the stranded people of Swat valley.
Monday, June 8, 2009
Past govt failed to initiate Bhasha Dam
LAHORE - Assuring the businessmen that law and order situation would soon improve, Chief Minister Punjab Mian Shahbaz Sharif has urged them to import state-of-the-art machines of industrial units being closed down around the world due to global recession.
He was speaking at the Lahore Chamber of Commerce and Industry on Saturday where the LCCI handed over to him Rs 30 million cheque for the Internally Displaced Persons (IDPs) of Swat.
LCCI President Mian Muzaffar Ali, LCCI Senior Vice President Tahir Javaid Malik, Vice President Irfan Iqbal Sheikh, Senator Ishaq Dar and Senior Political Assistant to Chief Minister Pervaiz Malik and MNA Hamaza Shahbaz Sharif also spoke on the occasion.
The Chief Minister said that difficulties are always accompanied with opportunities. He said that Pakistan has competitive advantage in many industrial sectors that could be exploited now by importing industrial units at much lower cost. He advised the businessmen to make investment in dairy farming and livestock as both the sectors have the potential to become biggest foreign exchange earner for Pakistan.
He acknowledged that dreaming of any foreign investment at this point in time when country is facing terror threats all around is impossible. He said that the local businessmen have should have the confidence that their government would overcome these difficulties and provide them with a conducive investment climate and it is essential for act now and take advantage of the lower machinery rates around the world. He said that he has visited China and Iran recently and found there are ample export opportunities for many items being produced in the province. He said that Iranian are willing to buy two lakh tons of meat from Pakistan.” We simply have to upgrade our slaughter houses to satisfy their quality demand. He said Iran last year imported kinnos worth $30 million that is produced in Punjab. He said we will have to improve our cold chain and packaging to further boost the exports.
Talking about lost opportunities, he regretted that despite inflow of billions of dollars, the past government failed to initiate Basha Dam project or develop the Ther Coal that could have resolved our power shortage problem.
Mian Shahbaz said that we have always looked towards the west and lost many opportunities while Iran that sanctioned by the US took technology from China and build a six lane underground Metro through indigenous engineering. Now they have offered both the technology and expertise to Punjab government to build similar underground Metro in Lahore. He urged the Punjab Businessmen to place their skill requirements with the vocational institutes of the Punjab government so that need-based training could be imparted with assured employment to the trainees.
He was speaking at the Lahore Chamber of Commerce and Industry on Saturday where the LCCI handed over to him Rs 30 million cheque for the Internally Displaced Persons (IDPs) of Swat.
LCCI President Mian Muzaffar Ali, LCCI Senior Vice President Tahir Javaid Malik, Vice President Irfan Iqbal Sheikh, Senator Ishaq Dar and Senior Political Assistant to Chief Minister Pervaiz Malik and MNA Hamaza Shahbaz Sharif also spoke on the occasion.
The Chief Minister said that difficulties are always accompanied with opportunities. He said that Pakistan has competitive advantage in many industrial sectors that could be exploited now by importing industrial units at much lower cost. He advised the businessmen to make investment in dairy farming and livestock as both the sectors have the potential to become biggest foreign exchange earner for Pakistan.
He acknowledged that dreaming of any foreign investment at this point in time when country is facing terror threats all around is impossible. He said that the local businessmen have should have the confidence that their government would overcome these difficulties and provide them with a conducive investment climate and it is essential for act now and take advantage of the lower machinery rates around the world. He said that he has visited China and Iran recently and found there are ample export opportunities for many items being produced in the province. He said that Iranian are willing to buy two lakh tons of meat from Pakistan.” We simply have to upgrade our slaughter houses to satisfy their quality demand. He said Iran last year imported kinnos worth $30 million that is produced in Punjab. He said we will have to improve our cold chain and packaging to further boost the exports.
Talking about lost opportunities, he regretted that despite inflow of billions of dollars, the past government failed to initiate Basha Dam project or develop the Ther Coal that could have resolved our power shortage problem.
Mian Shahbaz said that we have always looked towards the west and lost many opportunities while Iran that sanctioned by the US took technology from China and build a six lane underground Metro through indigenous engineering. Now they have offered both the technology and expertise to Punjab government to build similar underground Metro in Lahore. He urged the Punjab Businessmen to place their skill requirements with the vocational institutes of the Punjab government so that need-based training could be imparted with assured employment to the trainees.
Thursday, June 4, 2009
Guide to Interest-Free SBA ARC Loans for Debt Relief
If your small business is struggling to pay debts, you may qualify for a new type of interest-free loan in amounts up to $35,000, guaranteed by the U.S. Small Business Administration. The temporary emergency program, called America’s Recovery Capital, or ARC, was authorized under the economic stimulus law passed earlier in the year and is now being launched by the SBA.
For borrowers, ARC loans will be interest-free, and with no SBA fees attached. But as with all SBA financing programs, the ARC loans will be made by private, commercial lenders, not SBA directly. Lenders, of course, won’t make loans for free, so the SBA will pay lenders monthly interest on the ARC loans on your behalf. And that’s basically free money for you and a good chance to get a little breathing room if you’re facing burdensome debt payments.
ARC loans are deferred-payment loans available to established, viable, for-profit small businesses that are suffering hardship right now and need short-term help to make principal and interest payments on existing debt. These loans are interest-free to the borrower (you), and 100 percent guaranteed by the SBA.
Here’s How it Works
In addition to the loans being zero interest and fully guaranteed by the government, you don't have to make any payments until a year after you receive the last of the funds, which will be disbursed within a period of up to six months. After the initial 12-month payment-free grace period, you'll have five years to pay it off.
Banks and other financial institutions that make small business loans should have information on the program available soon, and it will be up to them whether or not to participate. Meanwhile, details and updates on the program will be available at the SBA’s special Economic Recovery Act website at www.sba.gov/recovery. Keep in mind that proceeds from an ARC loan must be used specifically to make payments of principal and interest on existing business debt. But that includes a wide range of different types of loans, leases and lines that you might have.
Here are the types of debt that will qualify:
1. Commercial mortgages on a building or property that your business owns.
2. Conventional term loans, including secured and unsecured.
3. Revolving lines of credit.
4. Capital leases.
5. Credit card debt.
6. Notes payable to vendors, suppliers and utilities.
7. First mortgages loans under SBA’s 504 Development Company Loan Program.
8. Any SBA guaranteed loans made after Feb. 17, 2009 (but not SBA-backed loans made prior to that date).
For many business owners, paying down high-interest credit card debt would be the best use of ARC funds. But you will have to prove that the debt was incurred for specific business purposes, and the documentation requirements to use ARC funds for credit card debt could be stringent.
The loan application process, however, is designed to be rather quick. Once lenders submit the application, SBA is promising turnaround within 5-10 business days.
The “Viable” Business Standard
The key to qualifying for and receiving an ARC loan is whether your business is considered "viable" and is facing “immediate financial hardship.” While the standards don’t seem to present a major hurdle for existing businesses that have had success in the past, the viability measure might rule out newer businesses that haven’t turned a profit. And ARC loans are specifically not intended for startups.
Here's how the SBA defines “viable” for getting one of these loans:
"A viable small business is one that has been profitable in the past, but is just beginning to struggle with making loan payments, and can reasonably project that it can get back on track with the infusion of ARC loan funds and the benefit of deferred payments."
Examples of financial hardship offered by the SBA include declining sales or revenues, or difficulties in paying the operating expenses of the business.
For borrowers, ARC loans will be interest-free, and with no SBA fees attached. But as with all SBA financing programs, the ARC loans will be made by private, commercial lenders, not SBA directly. Lenders, of course, won’t make loans for free, so the SBA will pay lenders monthly interest on the ARC loans on your behalf. And that’s basically free money for you and a good chance to get a little breathing room if you’re facing burdensome debt payments.
ARC loans are deferred-payment loans available to established, viable, for-profit small businesses that are suffering hardship right now and need short-term help to make principal and interest payments on existing debt. These loans are interest-free to the borrower (you), and 100 percent guaranteed by the SBA.
Here’s How it Works
In addition to the loans being zero interest and fully guaranteed by the government, you don't have to make any payments until a year after you receive the last of the funds, which will be disbursed within a period of up to six months. After the initial 12-month payment-free grace period, you'll have five years to pay it off.
Banks and other financial institutions that make small business loans should have information on the program available soon, and it will be up to them whether or not to participate. Meanwhile, details and updates on the program will be available at the SBA’s special Economic Recovery Act website at www.sba.gov/recovery. Keep in mind that proceeds from an ARC loan must be used specifically to make payments of principal and interest on existing business debt. But that includes a wide range of different types of loans, leases and lines that you might have.
Here are the types of debt that will qualify:
1. Commercial mortgages on a building or property that your business owns.
2. Conventional term loans, including secured and unsecured.
3. Revolving lines of credit.
4. Capital leases.
5. Credit card debt.
6. Notes payable to vendors, suppliers and utilities.
7. First mortgages loans under SBA’s 504 Development Company Loan Program.
8. Any SBA guaranteed loans made after Feb. 17, 2009 (but not SBA-backed loans made prior to that date).
For many business owners, paying down high-interest credit card debt would be the best use of ARC funds. But you will have to prove that the debt was incurred for specific business purposes, and the documentation requirements to use ARC funds for credit card debt could be stringent.
The loan application process, however, is designed to be rather quick. Once lenders submit the application, SBA is promising turnaround within 5-10 business days.
The “Viable” Business Standard
The key to qualifying for and receiving an ARC loan is whether your business is considered "viable" and is facing “immediate financial hardship.” While the standards don’t seem to present a major hurdle for existing businesses that have had success in the past, the viability measure might rule out newer businesses that haven’t turned a profit. And ARC loans are specifically not intended for startups.
Here's how the SBA defines “viable” for getting one of these loans:
"A viable small business is one that has been profitable in the past, but is just beginning to struggle with making loan payments, and can reasonably project that it can get back on track with the infusion of ARC loan funds and the benefit of deferred payments."
Examples of financial hardship offered by the SBA include declining sales or revenues, or difficulties in paying the operating expenses of the business.
Friday, May 29, 2009
Crash diet: GM getting in shape
DETROIT – The speed at which General Motors Corp. exits bankruptcy protection will depend a lot on the shape the company is in when it enters. GM has three more days to tidy up.
Bankruptcy experts say the more operational, labor and financial concessions the automaker gets lined up in advance of its likely Chapter 11 reorganization, the faster the ailing automaker can emerge a leaner, stronger company — one that will be nearly three-quarters-owned by taxpayers.
More pieces started coming together Thursday after a bloc of GM's biggest bondholders agreed to the Treasury Department's sweetened deal to wipe out $27 billion of the automaker's unsecured debt in exchange for company stock.
Workers across the country won't know until Monday which 14 plants GM will close, shedding 21,000 more jobs, but an announcement on the fate of GM's Hummer brand is expected Friday, when talks are scheduled to resume in Germany about the future of GM's European Opel unit.
GM's union employees also finish voting Friday on whether to ratify a modified contract that would cut some of their benefits but slash the automaker's labor costs.
And GM's board of directors will begin two days of meetings to decide what the automaker will do when its government restructuring deadline arrives Monday.
A person familiar with GM's plans said it was "probable" that the company would file for Chapter 11 bankruptcy protection Monday. The person did not want to be identified because the plans were still under discussion with the U.S. and Canadian governments.
GM's new road map, outlined in a regulatory filing Thursday, would briefly send the automaker into bankruptcy protection, erase most of its debt and eventually have it emerge leaner and stronger.
A senior Obama administration official estimated that GM would be under bankruptcy protection for 60 to 90 days, longer than Chrysler's expected reorganization because GM is bigger and more complex. The official spoke on condition of anonymity because of the sensitivity of the negotiations.
The U.S. Treasury, which already has loaned GM $19.4 billion, would get 72.5 percent of the new company's stock and provide $30 billion in additional financing to keep the new GM operating under bankruptcy protection.
Canada's government is expected to provide an additional $9 billion, the administration official said.
A United Auto Workers trust that will take over retiree health care expenses will get 17.5 percent, and the old GM, effectively owned by the bondholders, would get a 10 percent stake.
GM's existing shareholders will probably lose everything.
"It's fair to say that there would be little to no recovery," the official said.
The proposal is similar to what has happened to Chrysler, already under Chapter 11 protection. A bankruptcy judge is expected to decide Friday whether to approve the sale of most of its assets to Italian carmaker Fiat Group SpA.
The administration official said that although the government hopes to get back as much of the money loaned to GM and Chrysler as possible, it never envisioned recovering much of the initial $13.4 billion in aid.
Eventually, the government hopes, GM can return to profitability, which would allow the government to sell its GM stock. But the risks for taxpayers are daunting, with U.S. auto sales near their lowest level in 27 years.
"We will come out of this rid of some of the historic legacy costs that have been dragging us down for the last 20 years or so," GM Vice Chairman Bob Lutz said Thursday at an Automotive Press Association luncheon in Detroit. "We will come out of it with an all new focus on product development."
Under the government's offer, bondholders would get 10 percent of the stock in a newly formed GM, the same as a proposal that they shunned earlier this week. But the new offer also gives them warrants to buy an additional 15 percent stake, possibly at a discount.
That would come only if they agree to support selling GM's assets to a new company under bankruptcy court protection.
The revised offer amounted to an ultimatum: Go along with the government auto task force's proposal or face substantial reduction in the amount of stock and warrants they will get.
"They have sweetened the deal by adding the warrants to the equation," said Pete Hastings, senior analyst with Morgan Keegan & Co. "It's enough for me to have moved from rejecting the deal and trying our luck in bankruptcy court to the side of recommending the deal."
A bloc of bondholders who represent about 20 percent of GM's $27 billion in unsecured debt called the deal unfair but said they'll take it rather than roll the dice in bankruptcy court and risk getting even less.
Two coalition of smaller bondholders, meanwhile, opposed the offer, saying it remained unfair to retirees who depend on GM bonds for income and was overly favorable to the UAW.
Union President Ron Gettelfinger said in a telephone interview he did not want to get into a debate with bondholders while the union was pushing for ratification of concessions to GM. Union members were to wrap up voting Friday.
The filing didn't specify how many bondholders would be needed to make the deal work. The government had demanded that 90 percent agree to the previous offer, and it fell far short. The Obama administration official said the government would not require a specific percentage of bondholders to approve the new proposal but would make a judgment call based on the level of support.
Representatives of the committee of larger bondholders were trying to contact the thousands of GM bondholders before a deadline of 5 p.m. Saturday.
The government plan envisions the slimmed-down new GM with $17 billion in long-term debt and $9 billion in debt-like preferred shares. That would be 61 percent less than its debt load now.
Only $8 billion of the existing U.S. government loans would remain on the books. The remainder would be converted into equity and preferred shares.
The Obama administration official said the holders of GM's $6 billion in secured debt would be "protected" but declined to elaborate.
Trading of GM shares was halted for a short time Thursday morning. They fell 3 cents to end at $1.12 after a day of volatile trading.
Thursday, May 21, 2009
Summary for approval of budget announcement date sent to Prime Minister
ISLAMABAD (May 21 2009): The Ministry of Finance has sent a summary to the Prime Minister seeking his approval for the announcement of the national budget for the financial year 2009-10 on June 06. "Its upto the Prime Minister whether he approves June 06 or any other date for the announcement of the National Budget in the Parliament", a top official of the Ministry of Finance told APP here on Wednesday.
He confirmed that the Ministry of Finance has received budgetary proposals and suggestions form various stakeholders and these have already been sent to the Federal Board of Revenue (FBR) for finalisation of the proposals and suggestions till May 31.
He said that Ministry of Finance has received a number of recommendations and proposals from various ministries and departments to be incorporated in the upcoming budget. After the finalisation of these proposals and approval from the Cabinet, the final budget for the next financial year would be presented in the parliament.
He said that it has been the regular exercise of the Finance Ministry to circulate to the ministries and divisions asking them for recommendations and proposals on the projected revenues and expenditures. Highlighting the procedure for the preparation of the budget for new financial year, he said that Ministry of Financial circulates to the ministries and divisions to submit their proposals regarding the revenues and expenditures on the month of October every year.
The exercise starts in October every year and is completed by May end followed by the announcement of the federal budget, the official added. When asked about the proposed outlay for the forthcoming budget, he said that he was not in a position to tell the outlay at this stage as the ministry has to finalise the budget for the next financial year.
He confirmed that the Ministry of Finance has received budgetary proposals and suggestions form various stakeholders and these have already been sent to the Federal Board of Revenue (FBR) for finalisation of the proposals and suggestions till May 31.
He said that Ministry of Finance has received a number of recommendations and proposals from various ministries and departments to be incorporated in the upcoming budget. After the finalisation of these proposals and approval from the Cabinet, the final budget for the next financial year would be presented in the parliament.
He said that it has been the regular exercise of the Finance Ministry to circulate to the ministries and divisions asking them for recommendations and proposals on the projected revenues and expenditures. Highlighting the procedure for the preparation of the budget for new financial year, he said that Ministry of Financial circulates to the ministries and divisions to submit their proposals regarding the revenues and expenditures on the month of October every year.
The exercise starts in October every year and is completed by May end followed by the announcement of the federal budget, the official added. When asked about the proposed outlay for the forthcoming budget, he said that he was not in a position to tell the outlay at this stage as the ministry has to finalise the budget for the next financial year.
Monday, May 18, 2009
Guide to Mobile Marketing for Small Business
Add this to the changing face of how commerce happens: More and more, it’s going mobile. Many small businesses are already using mobile marketing to spur sales, from pizza parlors, health clubs and local retailers, to real estate agents and home-based entrepreneurs.
Buying and selling via mobile devices – mainly cell phones – is accelerating rapidly in the U.S., according to findings by The Nielsen Company. Nearly 10 million U.S. mobile subscribers have already used their cell phone to pay for goods or services. No surprise that young adults (ages 25-34) are most likely to have made a purchase using their phone – about 5.4 percent of that group, compared to 3.6 of all mobile subscribers.
Websites designed specifically for mobile users are one popular way that consumers make purchases by cell phone. The “mobile web,” which basically means people browsing the web on their portable devices, has mushroomed. Here are the trends you should know:
1. Between '07 and '08, the number of shoppers who made a mobile web purchase jumped 73 percent, according to Nielsen.
2. eBay is the most popular destination on the entire mobile web, with some 3.4 million unique visitors monthly.
3. Buying via text messaging is another fast-growing form of mobile commerce.
4. Some services let consumers send text messages to a phone number or mobile short code (a number that works only via cell) in order to charge goods or services directly to their mobile phone bills. Already, 6.5 million U.S. mobile users say they’ve used texting to buy something.
One example: Milwaukee, WI-based Pizza Shuttle now offers a text message club (“Text Msg Club” in texting shorthand), that will text message subscribers up to four discount offers monthly. The effort nabbed 400 signups the first week alone.
Buying and selling via mobile devices – mainly cell phones – is accelerating rapidly in the U.S., according to findings by The Nielsen Company. Nearly 10 million U.S. mobile subscribers have already used their cell phone to pay for goods or services. No surprise that young adults (ages 25-34) are most likely to have made a purchase using their phone – about 5.4 percent of that group, compared to 3.6 of all mobile subscribers.
Websites designed specifically for mobile users are one popular way that consumers make purchases by cell phone. The “mobile web,” which basically means people browsing the web on their portable devices, has mushroomed. Here are the trends you should know:
1. Between '07 and '08, the number of shoppers who made a mobile web purchase jumped 73 percent, according to Nielsen.
2. eBay is the most popular destination on the entire mobile web, with some 3.4 million unique visitors monthly.
3. Buying via text messaging is another fast-growing form of mobile commerce.
4. Some services let consumers send text messages to a phone number or mobile short code (a number that works only via cell) in order to charge goods or services directly to their mobile phone bills. Already, 6.5 million U.S. mobile users say they’ve used texting to buy something.
One example: Milwaukee, WI-based Pizza Shuttle now offers a text message club (“Text Msg Club” in texting shorthand), that will text message subscribers up to four discount offers monthly. The effort nabbed 400 signups the first week alone.
Saturday, May 16, 2009
Student Loan Consolidation
Student Loan Consolidation, also called a Student Consolidation Loan, combines several student or parent loans into one bigger loan from a single lender, which is then used to pay off the balances on the other loans. Consolidation loans are available for most federal loans, including FFELP (Stafford, PLUS and SLS), FISL, Perkins, Health Professional Student Loans, NSL, HEAL, Guaranteed Student Loans and Direct loans. Some lenders offer consolidation loans for private loans as well.
How It Works
Consolidation loans often reduce the size of the monthly payment by extending the term of the loan beyond the 10-year repayment plan that is standard with federal loans. Depending on the loan amount, the term of the loan can be extended from 12 to 30 years. (10 years for less than $7,500; 12 years for $7,500 to $10,000; 15 years for $10,000 to $20,000; 20 years for $20,000 to $40,000; 25 years for $40,000 to $60,000; and 30 years for $60,000 and above.) The reduced monthly payment may make the loan easier to repay for some borrowers. However, by extending the term of a loan the total amount of interest paid is increased.
In certain circumstances (for example, when one or more of the loans was being repaid in less than 10 years because of minimum payment requirements), a consolidation loan may decrease the monthly payment without extending the overall loan term beyond 10 years. In effect, the shorter-term loan is being extended to 10 years. The total amount of interest paid will increase unless you continue to make the same monthly payment as before, in which case the total amount of interest paid will decrease.
The interest rate on consolidation loans is the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest 1/8 of a percent and capped at 8.25%.
If a student consolidates their loans before they enter repayment, the interest rate used is the lower in-school interest rate. Thus, although the rounding up of the weighted average can potentially cost the student as much as 0.12%, a student who consolidates before entering repayment can save as much as 0.6%, a substantial net savings. (The in-school interest rate is 1.7% plus the 91-day treasury bill rate from the last auction in May. During repayment, the interest rate is the 91-day T-bill rate plus 2.3%.) This loophole has been confirmed by an excerpt from the Federal Register and direct correspondence with the US Department of Education. Additional details can be found in the interest rate loophole section.
Some graduate students have found it necessary to consolidate their educational loans when applying for a mortgage on a house.
To find out more about Student Loan Consolidation, check with your lender.
How It Works
Consolidation loans often reduce the size of the monthly payment by extending the term of the loan beyond the 10-year repayment plan that is standard with federal loans. Depending on the loan amount, the term of the loan can be extended from 12 to 30 years. (10 years for less than $7,500; 12 years for $7,500 to $10,000; 15 years for $10,000 to $20,000; 20 years for $20,000 to $40,000; 25 years for $40,000 to $60,000; and 30 years for $60,000 and above.) The reduced monthly payment may make the loan easier to repay for some borrowers. However, by extending the term of a loan the total amount of interest paid is increased.
In certain circumstances (for example, when one or more of the loans was being repaid in less than 10 years because of minimum payment requirements), a consolidation loan may decrease the monthly payment without extending the overall loan term beyond 10 years. In effect, the shorter-term loan is being extended to 10 years. The total amount of interest paid will increase unless you continue to make the same monthly payment as before, in which case the total amount of interest paid will decrease.
The interest rate on consolidation loans is the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest 1/8 of a percent and capped at 8.25%.
If a student consolidates their loans before they enter repayment, the interest rate used is the lower in-school interest rate. Thus, although the rounding up of the weighted average can potentially cost the student as much as 0.12%, a student who consolidates before entering repayment can save as much as 0.6%, a substantial net savings. (The in-school interest rate is 1.7% plus the 91-day treasury bill rate from the last auction in May. During repayment, the interest rate is the 91-day T-bill rate plus 2.3%.) This loophole has been confirmed by an excerpt from the Federal Register and direct correspondence with the US Department of Education. Additional details can be found in the interest rate loophole section.
Some graduate students have found it necessary to consolidate their educational loans when applying for a mortgage on a house.
To find out more about Student Loan Consolidation, check with your lender.
Wednesday, May 13, 2009
Business Plan for a Startup Business
The business plan consists of a narrative and several financial worksheets. The narrative template is the body of the business plan. It contains more than 150 questions divided into several sections. Work through the sections in any order that you like, except for the Executive Summary, which should be done last. Skip any questions that do not apply to your type of business. When you are finished writing your first draft, you’ll have a collection of small essays on the various topics of the business plan. Then you’ll want to edit them into a smooth-flowing narrative.
The real value of creating a business plan is not in having the finished product in hand; rather, the value lies in the process of researching and thinking about your business in a systematic way. The act of planning helps you to think things through thoroughly, study and research if you are not sure of the facts, and look at your ideas critically. It takes time now, but avoids costly, perhaps disastrous, mistakes later.
This business plan is a generic model suitable for all types of businesses. However, you should modify it to suit your particular circumstances. Before you begin, review the section titled Refining the Plan, found at the end. It suggests emphasizing certain areas depending upon your type of business (manufacturing, retail, service, etc.). It also has tips for fine-tuning your plan to make an effective presentation to investors or bankers. If this is why you’re creating your plan, pay particular attention to your writing style. You will be judged by the quality and appearance of your work as well as by your ideas.
It typically takes several weeks to complete a good plan. Most of that time is spent in research and re-thinking your ideas and assumptions. But then, that’s the value of the process. So make time to do the job properly. Those who do never regret the effort. And finally, be sure to keep detailed notes on your sources of information and on the assumptions underlying your financial data.
The real value of creating a business plan is not in having the finished product in hand; rather, the value lies in the process of researching and thinking about your business in a systematic way. The act of planning helps you to think things through thoroughly, study and research if you are not sure of the facts, and look at your ideas critically. It takes time now, but avoids costly, perhaps disastrous, mistakes later.
This business plan is a generic model suitable for all types of businesses. However, you should modify it to suit your particular circumstances. Before you begin, review the section titled Refining the Plan, found at the end. It suggests emphasizing certain areas depending upon your type of business (manufacturing, retail, service, etc.). It also has tips for fine-tuning your plan to make an effective presentation to investors or bankers. If this is why you’re creating your plan, pay particular attention to your writing style. You will be judged by the quality and appearance of your work as well as by your ideas.
It typically takes several weeks to complete a good plan. Most of that time is spent in research and re-thinking your ideas and assumptions. But then, that’s the value of the process. So make time to do the job properly. Those who do never regret the effort. And finally, be sure to keep detailed notes on your sources of information and on the assumptions underlying your financial data.
Sunday, May 10, 2009
Business Article
A business (also called a firm or an enterprise) is a legally recognized organization designed to provide goods and/or services to consumers.[1] Businesses are predominant in capitalist economies, most being privately owned and formed to earn profit that will increase the wealth of its owners and grow the business itself. The owners and operators of a business have as one of their main objectives the receipt or generation of a financial return in exchange for work and acceptance of risk. Notable exceptions include cooperative businesses and state-owned enterprises. Socialist systems involve either government agencies, public, or worker ownership of most sizable businesses.
The etymology of "business" relates to the state of being busy either as an individual or society as a whole, doing commercially viable and profitable work. The term "business" has at least three usages, depending on the scope — the singular usage (above) to mean a particular company or corporation, the generalized usage to refer to a particular market sector, such as "the music business" and compound forms such as agribusiness, or the broadest meaning to include all activity by the community of suppliers of goods and services. However, the exact definition of business, like much else in the philosophy of business, is a matter of debate.
Business Studies, the study of the management of individuals to maintain collective productivity in order to accomplish particular creative and productive goals (usually to generate profit), is taught as an academic subject in many schools.
The etymology of "business" relates to the state of being busy either as an individual or society as a whole, doing commercially viable and profitable work. The term "business" has at least three usages, depending on the scope — the singular usage (above) to mean a particular company or corporation, the generalized usage to refer to a particular market sector, such as "the music business" and compound forms such as agribusiness, or the broadest meaning to include all activity by the community of suppliers of goods and services. However, the exact definition of business, like much else in the philosophy of business, is a matter of debate.
Business Studies, the study of the management of individuals to maintain collective productivity in order to accomplish particular creative and productive goals (usually to generate profit), is taught as an academic subject in many schools.
Wednesday, May 6, 2009
An email marketing campaign and a number of different advantages including the ability to reach a worldwide audience, a variety of different marketing options at your fingertips and the ability to do a great deal of marketing with very little investment dollars. This article will take a look at all of these different topics to provide insight into how email marketing can benefit your business.
For many business owners one of the most prominent advantages to email marketing is the ability to reach a worldwide audience with minimal effort. While traditional marketing methods such as television advertisements, radio advertisements and advertisements in print media are typically targeted at a rather small geographic area, email marketing can reach a worldwide audience.
It is possible to reach an audience of this magnitude with other marketing methods but it would be much more complicated to do and would likely involve launching advertising campaigns in several different markets. This is possible but would require an intense coordination effort and will likely require at least a few staff members to assist you in this effort.
Conversely, the ability to transmit instantly via email can make it much easier to reach target audience members with literally just the click of a mouse. The act of creating the marketing materials for your email marketing campaign is significantly more involved but once this is done reaching members of your target audience is quite simple.
Another advantage to email marketing is there are a multitude of advertising options available to those who wish to utilize this marketing strategy. The most commonly used method of email marketing it so send out group emails with product information and other promotional materials.
However, another way to approach the concept of email marketing is to publish and distribute e-newsletters to interested email recipients. An e-newsletter is typically much more in depth than the type of information which would normally accompany a promotional email.
These e-newsletters typically feature at least one in depth article as well as a few shorter articles which either offer useful tips or review products. Additionally there may be some graphics, advertising and links include in the layout of the e-newsletter.
Email marketing campaigns can also take the place of email correspondence courses which typically focus on one niche subject and feature a few installments which provide detailed information on a specific facet of the niche subject.
Finally email marketing can benefit your business because it is an extremely cost effective method of advertising. When you opt to orchestrate an email marketing campaign you will likely invest money in hiring professionals such as writers and graphic designers to assist you in creating content and an appealing layout for your promotional emails.
However, this is typically not more than you would invest in hiring the same type of personnel for an offline marketing campaign. However, unlike offline marketing methods there is not a great deal of cost associated with executing your email marketing campaign.
Consider the creation of a television commercial where you will have to pay fees and purchase advertising space to allow your advertising to reach the public. However, when you transmit your advertising via email, there is virtually no cost associated with this transmission.
There are of course costs associated with maintaining an Internet connection and retaining employees to send these emails but these costs are minimal and can be considered to be part of normal operating costs.
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