Business Angels Vs Venture Capitalists</h1> <article> <h1>Business Angels Vs Venture Capitalists</h1> <p>MySolutionSpot Editor — Sat, 12 Jul 2008 03:39:19 GMT</p> <p>Have you these amazing ideas which you’re sure you can put into practise and make a living out of your ideas. If so you’re more than likely looking into financial help to put these ideas into practise. You may think bank loans, credit cards and loans off family and friends are the only options but Business Angels and Venture Capitalists are also a good option to consider. </p> <p>Business Angels what are they you may ask, they often work as individuals who themselves are entrepreneurs and have made their dream come true in whatever business sector they chose. They have now have the experience and financial backing to help other entrepreneurs to start their own business just like themselves years ago. </p> <p>Venture Capitalists are very similar to Business Angels they are often from an entrepreneur background have made a successful business and now would like to give back to other entrepreneurs and help them with finance for their new start-up business. </p> <p>So you’re asking what is the difference between them both, they are: </p> <p>Business Angels – Give you the financial help you need when you need it, and invest their own money in your business. If a business angel works within an angel network the angels will pool together with their investment as well as sharing research they each do. Angels understand the needs of a new business as they have been there themselves and therefore they not only offer financial help but they can offer good advice when no one else will. </p> <p>Venture Capitalists – Give you the financial help you require when you need it but uses pooled money the venture capitalist and others have in a professionally managed fund. Venture Capitalists like to take an active role in the business they are investing usually being a director or on the management board of the business. </p> <p>So if you’re looking for some financial help for your new start-up business or even your struggling business you don’t just have the options of: </p> <p>• Family <br />• Friends <br />• Banks <br />• Loans <br />• Credit Cards </p> <p>You have the option of using a Business Angel or a Venture Capitalist. Which ever one you decide to use the only way you’re going to show your serious in wanting their help is to have a well planned and thorough business plan. </p> <p>A business plan will not only be used to show your investor what you planned ideas are and your predicted returns in the next few years will be it will also be used for you to run your business well. Your business plan will show others what your initial goals were and if you succeeded in these as well as any risks you planned for and if any of these actually occurred and if they did, did you cope ok with rectifying the risk. </p> <p>Your business plan shouldn’t just be placed in a drawer and forgotten about it should be regularly updated. Your business will continue to change and usually out of your control and you should reflect on these changes within your business plan. You should have contingency plans to deal with any external influences that would affect your business and the way in which you run it. </p> <p>You should now be a little wiser of the facts of the difference between Business Angels and Venture Capitalists and how they can help you.</p> <p>About The Author:<br />Jene Pedder is the Webmaster of Angelstartups who specialise in helping you find a <a href="http://www.angelstartups.com/content/raisingfinance.php">http://www.angelstartups.com/content/raisingfinance.php</a> Business Angel or Venture Capitalist. </p> <p> </p> <p><a href="http://www.articles-hub.com/Article/184918.html">http://www.articles-hub.com/Article/184918.html</a></p> </article> <article> <h1>Real estate accounting is a shining armor for accounting industry</h1> <p>MySolutionSpot Editor — Sat, 12 Jul 2008 03:39:13 GMT</p> <p>Real estate accounting is becoming one of most powerful industries that requires efficient bookkeepers who can take the businesses a one step ahead. </p> <p>Accounting is an integral part of any organization; whether it is a regular industry or a specialist, all of them need good and knowledgeable bookkeepers. And real estate is no different from the other sectors; in fact, it is lately becoming one of the most powerful revenue getter for the government in the United States. Another reason why this sector needs efficient accountants is that it is vast and ever growing industry. </p> <p>Real estate accounting require professionals that are capable of handling accounting services professionally. However, one is very well aware of the fact keeping a track of accounts on every day basis is quite challenging for both the business owner as well as the financial department. In fact, accounting ledgers always grow; hence, need experts to take care of the transactions taking place regularly. It is only accounting and accountants that can make business a successful venture by keeping the accounting books intact. That is why real estate sector is constantly looking for proficient and professional people. Therefore, real estate follows accounting diligently for reasons like tax payment and for managing the business properly. </p> <p>However, when the question of handling real estate accounting arises, then it becomes all the more important to have an experienced staff to accomplish tasks properly. Real estate, as the world knows is a huge sector in itself, where there are several participants and demands perfect accounting services. In fact, real estate accounting is catching up a lot with them in recent years. One will be amazed to know that its accounting comprises a range of strategies and principals that are lifeline for the business along with accounts. Moreover, real estate accounting has helped in the growth process and development of profits and has also curbed losses to a great extent. Although, keeping real estate accounting intact is quite a tiresome and time consuming process, and demands lot of expertise on the part of an accountant. However, this sector follows a range of methods to track various details related to accounting services. The details that have to be taken care of by an accountant for real estate accounting include maintenance of accounting books with financial transactions receipts. It additionally keeps a track of ledger books, balance sheets and credited and debited transaction sheets. </p> <p>The real estate accounting also provides minute details on every transaction that has been made and recorded for any requirement of the accounting method. The other additional services provided for estate accounting helps the businesses to make more profits and assist in understanding the financial position of the business in the market. The various regular services required by realtors are maintenance, utilities, and management of various records. Real estate accounting also demands solutions for property taxes, capital costs, and insurance and depreciation charges referring to the cost of providing assets. It will not be a surprised to tell you the fact that the real estate industry has also turned tech-savvy and utilizes software for accounting purposes. Its accounting software covers distribution and payroll, budgeting and accounting. This software has proved to a helping hand for the user as it is easy to use and implement. </p> <p>Alvis Brazma gives advice to business owners about how to manage their business efficiently without any hassles.To know more about Accounting outsourcing,Accounting outsourcing services,Accounting help,Real estate accounting visit this leading internet source: <a href="http://www.impacctusa.com">http://www.impacctusa.com</a> </p> <p> </p> <p><a href="http://www.articles-hub.com/Article/184934.html">http://www.articles-hub.com/Article/184934.html</a></p> </article> <article> <h1>How to Prevent Corporate Bankruptcy</h1> <p>MySolutionSpot Editor — Sat, 12 Jul 2008 03:39:20 GMT</p> <p class="articletext"><span style="font-family:Arial;">As a business owner or someone thinking of starting a business, you're probably aware that the "deck's stacked against you" in your race for survival. <br /> <br /> Before we talk about preventing corporate bankruptcy, I'd like to share some facts and statistics that you may or may not be aware of. These statistics are shocking, but what's more important are all the real people (just like you) that lose their companies or their jobs: due to lack of sufficient corporate credit, better corporate credit terms, and open-end corporate lines of credit.<br /> <br /> Obviously, small businesses are critical to the overall support of the American economy. But, most people don't realize just how important small businesses are to every region of the United States. The United States Small Business Administration (also known as the SBA) keeps records and statistics on small business in the United States and some of their findings are surprising.<br /> <br /> 19% of all businesses fail within their first year, almost 35% fail within 2 years, more than 51% fail by the end of year three, and approximately 67% fail after four years. Access to capital, owner's education levels, an established business plan, and the usage of professional accountants appear to be the most likely reasons for business failures today.<br /> <br /> First, the typical picture of the local mom and pop country grocery store, beauty salon, barber, gas station, and more: is not the entire picture.<br /> <br /> By definition, the SBA defines an independently-owned business with less than 500 employees as a small business. More than 23 million businesses in the United States meet this classification. These businesses represent a major source of employment within small communities, throughout the US.<br /> <br /> In fact, these small businesses account for more than 99.6% of all the employers in the country and also employ more than half of all non-government jobs. From 1996 through 2006, small businesses have accounted for more than 73% of all new jobs.<br /> <br /> Retail and service-related businesses comprise more than 43% of new job openings each year, although small businesses are rapidly making gains in the technology sector too. More than 40% of engineers, scientists and computer programmers are employed by small businesses. And, oddly enough, small businesses produce 1383% more patents than larger companies.<br /> <br /> Now, let's talk about the #1 reason for business failures (as cited by small business owners) which is money. Access to financing, the lack of available financial assistance, not understanding how to properly utilize credit, waiting too late before applying for credit are just a few of the examples that force businesses to fail... which is bad for the economy. <br /> <br /> Because when businesses fail, we all lose.<br /> <br /> More than 98% of all small business owners said they've used personal credit cards to fund the operation or startup of their businesses, and more than 68% said they still use their personal credit when necessary.<br /> <br /> Worse still, is that 82% of all small business owners were unaware of financing options other than their local banks, grants (for the few that could qualify), and use of personal debt.<br /> <br /> Lucky for you... there is a better way! <br /> <br /> Simply be proactive. Seek out business credit offers every step of the way, and if you're uncertain where to turn. However, if you don't understand how to setup, structure and maintain your corporate credit file (which doesn't operate exactly like your personal credit scores)... you could be facing an uphill battle.<br /> <br /> Your personal banker, mortgage professional, financial planner and CPA will not be able to point you in the direction. And, trust me... Ive learned by failing myself.<br /> <br /> You need to find a corporate credit expert that can provide you with a corporate identity (unless you already have one), that will help you register your business with Dun & Bradstreet (establishing a corporate credit history), and that can help you achieve lines of credit equal to $250,000-$1,000,000 in 60-90 days.<br /> <br /> I found a person like this, and it's changed my life forever. Stop looking for "angels" or lottery winnings to dig you out of your messes, and get in touch with a corporate credit expert... today.</span></p> <p class="MsoNormal"><b><span style="font-family:Arial;"><br /> About the Author:</span></b></p> <p class="MsoNormal"><span style="font-family:Arial;">Lee Kendrick has been featured in numerous magazines as a highly respected credit expert, finance professional, internet marketer, software developer, public speaker, aspiring author & all-around nice guy. Lee recommends <a href="http://www.effortlessonlinemarketing.com/app/?af=647241" target="_blank">Trent Lee's Corporate Credit Builder</a> program... regardless of your personal credit rating. Also, <a href="http://leekendrick.net/corporate-credit-concepts.htm" target="_blank">click here to register for Lee Kendrick's newsletter & blog</a>.</span></p> <p class="MsoNormal"><span style="font-family:Arial;"><b>How To Prevent Corporate Bankruptcy</b><br /> <a href="http://www.reprint-content.com/">Article Distribution</a> and <a href="http://www.reprint-content.com/">Free Web Content</a> by www.reprint-content.com</span></p> </article> <article> <h1>How To Lower Health Care Costs If You Are Self-Employed</h1> <p>Kenn Kowalsky — Wed, 04 Mar 2009 23:42:50 GMT</p> <p><b>State Of The (Health Care) Union </b><br />Health care insurance costs are a major headache for America's self-employed. Like their larger brethren, small firms are coping with a general wave of medical inflation due to an aging population, advances in technology, and soaring prescription drug costs. In addition, small business entrepreneurs have problems that are unique to their own. "They have to pay more for the same coverage," says Larry Levitt, an analyst with the Kaiser Family Foundation (www.kff.org), a national health care charity quoting from a recent study done by the National Association for the Self-Employed (www.nase.org) which concluded:</p> <ul> <li><i>More than 65% of small-business owners say that cost is the single most significant barrier to offering health insurance to employees. <br /></i></li> <li><i>There's significant increases in the percentage small businesses spent on health insurance premiums since 2005, with median costs rising from 3.7% of total revenue to 5.5%. <br /></i></li> <li><i>Overall, health insurance costs have increased an average of 14.7%, compared to a 20.7% increase in 2005.<br /></i></li> <li><i>Two issues respondents feel have the greatest impact on high healthcare costs are "insurance companies making too much profit" (28.8%) and "doctors/hospitals charging too much for services" (21.7%).</i></li> </ul> <p><b>The Bad News For The Self-Employed</b> <br />When a person gives the the grind of working for someone else to become self-employed, they give up having other people making decisions for them such as what kind of health care coverage are going to have. However, now that they're the boss they discover that there are other pressing matters -such as building their business- to deal with which can make it difficult for them to find that time to research purchasing cost-effective health insurance. <br />Small Businesses: Health Insurance Whipping Boy - The premiums which small businesses -less than 200 employees- have for heath insurance coverage is increasing at twice the rate that it's increasing for large (i.e. 500+) employees according to William M. Mercer Inc. (www.wmmercer.com), a consulting firm specializing in employee benefits. Not surprisingly, an estimated 40% of small business owners do without insurance, according to the Insurance Information Institute (www.iii.com), because they believe they can't afford it. <br /><br /><b>Poor Health Care Coverage Choices All Around</b><br />When it comes to purchasing health care coverage, the self-employed are left with several unappealing choices, not the least of which is not to offer any health benefits at all. According to the Employee Benefit Research Institute (www.ebri.org), a Washington, DC think tank, 60% of America's 44 million uninsured people work for small businesses. Another unappealing choice for the unemployed is to pay the extra money for health benefits and just a pass on the extra costs to employees while another option is to pay the full cost of a worker's heath insurance premium but make the employee pay the additional cost for family coverage. The difference, which can easily run $300 a month, imposes a major burden on a work force. Still another unpleasant option is for the small business to simply absorb the higher costs. They may not want to but are afraid that cutting back on benefits will cause their best employees to look for greener pastures. "In terms of getting a quality staff --folks who will stay-- it is a necessity that we offer health insurance," says Jim Amaral of Borealis Breads (www.borealisbreads.com), a bakery in Maine. <br /><br /><b>The Good News For The Self-Employed </b><br />Many of the newly self-employed are so due to recently having left full-time paid employment, in which case they can still retain their existing health insurance thanks to COBRA (Consolidated Omnibus Budget Reconciliation Act). Up until 2/11/09 when the economic stimulus package was signed into law, COBRA allowed newly laid off workers to retain the same insurance coverage at the same price that you had before. Now there is a new provision that states if you weren't laid off between September 1, 2008 and December 31, 2009, your former employer will pay 65% of your COBRA costs so long as you don't make more than $125,000 per year (or $250,000 for couples). However, this subsidy applies to COBRA premiums paid after February 17, 2009 - there is no provision for a "refund" of prior premium payments. <br /><br />The problem is that not only does one have to pay for COBRA out of their own pocket but that it only lasts 18 months, after which the self-employed --and their families-- are on their own. However, there are some options that self-employed business people have to reduce how much they pay for healthcare coverage. These options are:<br /><br />1. Use The Internet To Become Better Informed <br />Whether shopping for the lowest health insurance rates or wanting to ask medical questions of experts, learning to do research on the internet can make you a more informed consumer, thus bettering your chances of lowering your health care costs. The better educated you are about healthcare, the more you can avoid unnecessary and/or expensive medical insurance.<br /><br />2. Get Coverage From Your Employed Spouse <br />A common and easy way to get long term health coverage is to add yourself to your employed spouse's existing policy, and use the extra premiums you'll have to pay as a tax-write off. "Many times it's the best way," says Terri Lonier, CEO of Working Solo Inc. (www.workingsolo.com), a San Francisco strategy consulting firm for entrepreneurs. "It's the least expensive and most streamlined (method for getting health care coverage)."<br /><br />3. Join With Other Self Employed People <br />There are strength in numbers so investigate joining a professional or trade organization that offers its members coverage at a group rate discount. Three such groups are the National Federation of Independent Business, the National Association for the Self-Employed, and the Freelancer's Union. However, before joining a group just for its health insurance plan, one should consider the cost of membership in addition to the insurance premiums.<br /><br />4. Lower Your Level Of Health Insurance Coverage <br />If you are healthy and don't require much medical care, why give the money to the insurance company for low-cost claims when you could keep it yourself? Considered choosing a plan with a higher deductible or co-pay. "A high-deductible insurance policy will keep you out of the poorhouse if something goes wrong," suggests Peter McCann, president of Aquent Insurance Brokerage Services in Boston. <br /><br />Another way to lower your health care premiums is eliminating certain types of coverage, such as dental or vision, that you don't need. For example, if you don't wear glasses or contact lenses, spending an extra $200-$300 per year on vision insurance is a waste of money. Tailor your healthcare plan to your real-life health needs. <br /><br />5. Reduce Your Chances of Getting Sick <br />You know the old saying about an ounce of prevention being worth a pound of cure? Seriously, this is especially true when it comes to reducing your of health insurance related costs. According to Marilyn Furry (Associate Professor Of Extension Education at Penn State's College of Agricultural Sciences), the best advice to follow to avoid unnecessarily high health insurance premiums as well as out-of-pocket healthcare expenses is to do the following:</p> <ul> <li><i>(a) Take advantage of free health screenings at local clinics, hospitals or health fairs <br /></i></li> <li><i>(b) Know early warning signs of potential health problems and consult a physician ASAP <br /></i></li> <li><i>(c) Compare fees and costs for typical medical, pharmacy and surgical procedures </i></li> </ul> <p>6. Take Advantage Of Tax Incentives <br />If your business is incorporated, your costs and your employees' costs are entirely tax deductible. If you aren't incorporated, you're not out of luck - a portion of your costs are tax deductible. Keep accurate medical records so to itemize these deductions on your taxes.<br /><br />7. Cut Down On Contributions. <br />Your employees will most likely expect you to contribute to the cost of premiums, especially since the majority of small businesses do. But if it's absolutely impossible for you to fit contributions into your budget, at least look into insurance plans that give you a group rate.<br /><br />8. Join A Discount Health Benefits Program <br />Perhaps the best way to cover any existing gaps in your health insurance is to join what are known as "Discount Health Benefits" clubs, with AmeriPlan being the largest of its type. These organizations offer their membership deep savings on medical, hospital and dental visits, prescription drugs, and other health services by connecting members with hospitals, clinics, doctors, dentists, vision care providers, and chiropractors that are on the plan. In fact the online home of PARENTS.COM, recently recommended discount dental plans (a.k.a. discount clubs) as #3 on their list of <span style="text-decoration:underline;">25 Ways To Save On Health Care</span>. Due to their ability to supplement existing health insurance, discount health benefit programs must be considered a strong healthcare alternative for the self-employed.<br /><br />9. Get A Part-Time Job <br />Assuming you could find one, a part-time job that includes health benefits can solve the problem of acquiring health insurance. This will require you to devote a minimum of 15 to 20 hours per week to your part-time job which means you'll have less time to devote to your small-business. Although you probably became self-employed because you dislike having to work for someone else, getting a part-time job for the health benefits should not be overlooked, especially for those newly self-employed entrepreneurs who could also use the cash flow a part-time job would generate.<br /><br /><br /><b>For The Self-Employed With Employees </b><br />As the businesses of the self-employed grow, so will their need to hire workers. Whether they be full-time or part-time employees, eventually they're going to have to get health care coverage as well, thus creating a new although greatly needed business expense. Managing this expense so that doesn't get out of control will also require expertise in the area of health benefits. The lower subjects to help self-employed entrepreneurs can show the expenses associated with their employee's health benefits:<br /><br />1. Incorporate Your Business <br />Business owners who are incorporated are eligible for tax deductible employee and employer costs like health insurance.<br /><br />2. Choose Counseling Over Psychotherapy <br />If you or one of your employees are been seen by a mental-health therapist every week, you're probably footing much of the bill: Most health plans limit coverage to 30 visits a year. You can cut the cost by going to a certified counselor or clinical social worker (average fee: $100 an hour) instead of a psychologist (around $140). A recent survey found no difference in effectiveness.<br /><br />3. Have Copies of All Insurance Policies and Review Frequently <br />Start your review by looking at your insurance file. If you don't have a file, get one today! Make sure that you have copies of all policies in your file and that they are readily accessible when needed. Make sure there are copies of claims forms for each policy in the file. You will want to create a separate off-site location for a copy of your policies and forms in case this file is destroyed. Organization is the first step in reducing insurance premiums.<br /><br />4. Adjust Your Depreciation Schedules to Equipment Actually Owned <br />A good place to start with your premium review is an analysis of your equipment and auto schedules. Does your business still own the vehicles listed? I know of a business that insured a crane for ten years after it was sold. Maybe your line retooled and key equipment was changed which would result in premium savings.<br /><br />5. Compare Your "Key Employees" to the Employees That Work For You <br />This step involves reviewing named drivers and/or key employees identified on policies to make sure these employees are still working for you. Many employers simply fail to adjust their named insured endorsements when employees leave. But, this can result in significant savings if the loss of the employee results in lower risk.<br /><br />6. Eliminate Irrelevant or Repetitive Coverage <br />Business changes always and so may your insurance coverage. Select parts of your coverage may no longer be necessary. For example, if a portion of your business closes, operations change, or you choose to out-source, then it may be that your business carries coverage that can be eliminated.<br /><br />7. Adopt, Maintain and Publicize a Workplace Safety Plan <br />A consistent safety plan will include the elimination of hazards that can become claims. Make it a goal of your business to enforce a safety plan and follow through. I suggest developing a tracking mechanism for the safety plan because otherwise it is impossible to gauge the effect of safety on insurance premiums. A simple method is the "safe day" method. Every shift marks a calendar tracking "safe days", that is, days without injury to a worker or patron.<br /><br />8. Classify Your Workforce Correctly <br />Significant savings can be achieved by making sure your workers are correctly classified by your workers' compensation insurer and liability insurer. Your premiums are based on the type of workers used. If you are a painting company that incidentally uses ladders, then you could be incorrectly classified as a construction business and your premiums will be greatly inflated. If you have a large sales force and those sales people are being classified as line workers, then your premiums will be much higher. Classify each worker the right way and make sure your insurer does so also.<br /><br />9. Discuss Your Premiums With Your Insurance Co. <br />Too many businesses don't take the step of telling their insurer that they want a better rate. Frequently, insurers will discuss the premium in detail and will suggest ways to have it reduced or the insurer will learn something about the business they did not know that may result in lower premiums. It never hurts to ask.<br /><br />10. Make Your Employees Healthier & Save Money <br />Health insurance and workers' compensation premiums will be your highest insurance-related expenditures. Work to lower the costs through a healthy work force. Commit to setting a good example: quit smoking, become active and see your physician regularly. Adopt a no smoking policy at your company. Allow yoga or other stress reducing classes to be held on your business's premises. Encourage proper lifting techniques. Consider a partial reimbursement of health club membership as a benefit. In other words, taking active steps to create a healthy work place lowers premium dollars.<br /><br />11. Properly Train Your Employees <br />Train your employees and demand training as part of their employment. Most insurance underwriters will offer substantial discounts for a well trained workforce. For example, liquor liability premiums can be cut by 15% to 20% if servers are required to attend alcohol awareness training. Find out what type of workplace training will reduce your health insurance rates and the thin train, train and train some more.<br /><br /><br /><i></i></p> <p><i>Murray Glick is assistant webmaster for "DiscountDental4U.net" and frequently writes about issues dealing with dental health and coverage. Born in 1962, Murray grew up in Livingston, New Jersey, where he attended public school and eventually went on to graduate with a BA in English literature from Case Western Reserve University out of Cleveland, OH. Murray has worked in many different jobs over the years including proofreader, news editor, public relations and is presently employed by Prudential Insurance as a communications officer select. In addition, Murray writes for the blog "DiscountDental4U.blogspot.com" which helps readers to keep pace with the rapidly progressing dental health industry.</i> <i>You can e-mail him at</i> </p> <p class="MsoNormal"><span style="font-family:Arial;"><i>MGlick63@aol.com</i></span></p><div style="clear:both;"></div> </article> <article> <h1>Investment Terms - The More You Know Helps Your Company to Grow</h1> <p>jen mercer — Wed, 14 Jan 2009 19:13:15 GMT</p> <p><span style="font-family:Arial;"> <p>The more you know, the more your company can grow. Investing is a way to grow a business, but the terminology, alone, can be a bit intimidating. As a future or current investor, it is important that you understand some of the terms. They can help you understand the financial news and make educated financial decisions.</p> <p><strong>Bear Market<br /></strong></p> <p>A bear market is a period of time where security prices are falling. This type of market usually occurs during an economic recession and when unemployment is high.</p> <p><strong>Bond</strong></p> <p>A bond is a loan taken out by the government, municipalities and corporations, but the loan is so large that the money needs to be borrowed from multiple persons or banks and a fixed interest rate is paid to the investor when the bond comes due. Most investors are more attracted to bonds when the stocks are not doing well.</p> <p><strong>Bull Market<br /></strong></p> <p>A bull market is a period of time in which security prices are rising faster than normal. This type of market usually occurs as a result of economic recovery or a boom.</p> <p><strong>Commodity</strong></p> <p>A commodity is a product or resource that is tradeable in both an exchange and a cash market. Commodities that are traded include oil, gold and agricultural products. </p> <p><strong>DJIA</strong></p> <p>This stands for Dow Jones Industrial Average. The DIJA is an indicator of the overall condition of the stock market. It is made up of 30 actively traded industrial stocks picked by the Wall Street Journal. </p> <p><strong>Exchange</strong></p> <p>An organization that provides a marketplace for trading of commodities, futures, options and securities.</p> <p><strong>Financial Market<br /></strong></p> <p>A financial market is a mechanism that allows for people to easily make financial transactions. A financial transaction can be the purchase or sale of stocks or commodities.</p> <p><strong>Mutual Fund<br /></strong></p> <p>A mutual fund is a collection of securities owned by a pool of investors who share a common goal. Mutual funds are professionally managed. </p> <p><strong>NASDAQ</strong></p> <p>This stands for National Association of Securities Dealers Automated Quotation system. The NASDAQ is a computerized system used by brokers/dealers. It provides brokers with price quotations on actively traded over-the-counter stocks.</p> <p><strong>Portfolio</strong></p> <p>A portfolio is a collection of investments owned by a single individual or organization. A portfolio often includes a mix of stocks, bonds and mutual funds.</p> <p><strong>S&P 500<br /></strong></p> <p>This stands for Standard & Poor’s 500 Index. The S&P 500 is a collection of 500 widely-held stocks. It provides a broad picture of the United States stock market since 70% of all publicly traded companies in the US are tracked in the S&P 500.</p> <p><strong>Security</strong></p> <p>A security is a written document indicating ownership of a business entity or its assets. Stocks, notes, bonds and mutual funds are securities.</p> <p><strong>Stocks</strong></p> <p>A stock is ownership of a company that is sold in shares. When a company issues shares of stock to sell, it is a way to gain additional funds to assist the growth of the company. An investor makes money when the value of the stock goes up.</p> <p><strong>Stock Symbol<br /></strong></p> <p>A stock symbol is a unique series of letters that is assigned to a security to assist in trading. The length of a symbol indicates which exchange the security trades on. Symbols with three or fewer characters trade on the NYSE or AMEX. NASDAQ securities have four or five characters.</p> <p><strong>Trade</strong></p> <p>A trade is the successful selling or purchasing of a stock or commodity.</p> </span></p><div style="clear:both;"></div> </article> <article> <h1>Focusing your Small Business Dollars</h1> <p>Jessica Bradford — Wed, 17 Dec 2008 20:00:55 GMT</p> <p>You’ve achieved the dream of a lifetime. You’ve set up shop, handed out business cards, launched the advertising campaign and spread the word to all and sundry. Now its time to focus your efforts on a critical component of conducting business – having sufficient dollars to run your operations effectively and keeping your business afloat.<br /><br />These days, there are a number of ways savvy small-business owners can cut operating costs and boost bottom lines. Those who are "in the know" now realize what many mainstream companies already know – tapping into the small-business market translates into BIG business. To that end, numerous established merchants and chains are delivering below cost products and services and promoting discount offers and incentives that are guaranteed to lure businesses and their customers. There are myriad of benefits for all to reap, many of which are essential to the operation and development of small businesses.<br /><br />One example is the FedEx-Network Solutions discount program that helps small business save on shipping and production costs. The program is free to various alliance customers, including Network Solutions customers. This program includes discounts of up to 12% on FedEx Ground® shipping costs with delivery in 1 to 5 business days and up to 21% on FedEx Priority Overnight® shipments. Additional discounts are also available on the most popular FedEx® services such as international shipping and services at FedEx Office Print & Ship Centers<br /><br />SM. Check with some of the companies and associations you work with on a daily basis, such as American Express Open, local chambers, and any other club or federation you and/or your business are a part of. Chances are, they have an alliance with FedEx and will be able to greatly reduce your shipping and printing expenses.<br /><br />Another type of program that is used by a very popular electronics retailer, awards points for every dollar spent. In this program, membership is free and after accumulating 250 points, you’ll receive a $5 reward certificate redeemable at the mortar and brick or online retail location. Not to be outdone, a popular office supply store gives 10% in rewards on vital computer supplies such as ink, toner, case and paper. Members receive quarterly rewards as long as they’ve earned at least $10 and reward balances are rolled over each quarter per calendar year.<br /><br />Opportunities such as these are fantastic for wooing prospective clients or entertaining existing ones. They also help small-business owners manage and grow their enterprise and help catapult in a league comparable to the big boys.<br /><br />If a company you’re interested in purchasing from, does not advertise discounts and cost-savings programs, don’t hesitate to ask. It’s also important to remember to do your thorough research and calculate all potential costs and savings before making a decision or signing a binding contract. And, don’t hesitate to contact your local Chamber of Commerce and local business organizations to find out about special offers and incentives that are available.<br /></p><div style="clear:both;"></div> </article> <article> <h1>Recession-Proofing Your Income</h1> <p>Steve Strauss — Mon, 21 Jul 2008 14:52:16 GMT</p> <p>Employers have been cutting workers from their payrolls for six months straight, according to the Labor Department, and economists don’t expect the job market to improve any time soon. With all this talk about a recession, it’s hard to feel any kind of job security lately. However, starting an online business can be a quick and affordable way to make additional money and, it provides a safe back-up plan if you fear your job might be in jeopardy.<br /><br /><b>Do what you love. </b> Having trouble coming up with a business idea? Starting a small business is not only a great strategy for recession-proofing your income, it’s also an opportunity to make a living doing something you truly love. Start by thinking of all of the things you enjoy doing in your spare time, and then see if you can come up with a way to make them profitable. For example, if you’re constantly knitting clothing for your friends and family, why not offer your products to the masses? Or, if you’ve been collecting baseball cards since you were a kid, you could create a database for people to buy, sell and trade them. The possibilities are endless!<br /><br /><b>Make your home your home-base.</b> Setting up a small business in your home is one of the easiest and most cost effective ways to build a start-up - especially during a recession. In fact, the 2005 US Census says that small businesses have generated 60 to 80 percent of net new jobs annually in the United States during the last decade. <br /><br />By working out of your home you can avoid the not insignificant costs of a brick-and-mortar storefront , especially as rent and utilities. And, by working from home you’ll eliminate all commuting costs, which is especially important with the rapid increases of gas prices this year (over $4 a gallon!).<br /><br /><b>Go global without going anywhere. </b> When looking at the various types of home-based small businesses, online businesses are not only the most affordable, they also have the highest impact. Over the last several years there has been an increasing trend for businesses, large and small, to get online. <br /><br />You need to be where your competition is. <br /><br />With an online storefront you can sell <i>anywhere</i>. Even if your state is in a recession, it's important to keep in mind that other places around the world are not, and you can easily reach those global markets with a good Search Engine Optimization (SEO) campaign. Drop-shipping, a supply technique in which the retailer transfers customer orders to wholesalers who then ship the goods directly to the customer, completely eliminates all storage costs and keeps your home office clutter-free.<br /><br /><b>Take time to make time.</b> One of the many benefits to having an at-home online business is that you can work around your own schedule. Whether you’re choosing to start a business for extra income to supplement your day job, or if you’ve recently left or lost your full-time job and are choosing to venture out on your own—an online business provides you with the flexibility to work at your own pace and, around your own schedule. <br /><br />So not only does an at-home online business afford you the opportunity to create actual additional income, rather than the debt and loans that starting a traditional storefront business would require, but t also allows you to make your own schedule.<br /><br /><b>Look every bit as big as the competition.</b> Even if you’re working alone from a laptop on your sofa, an online storefront allows you the opportunity to appear as established and professional as the "big boys". With strategic Web design and online marketing, the Web works for you and can even the playing field between retailers of all sizes.<br /><br /><b>Don’t be afraid to ask for help.</b> While establishing your small business, you should look for an online services partner like Network Solutions that offers around-the-clock customer service and a wide array of design, marketing and e-commerce tools that can help make your Web site stand out.<br /><br />Steven Strauss, President of the Strauss Group, Inc.<br /><br />Steven Strauss is the country’s leading small business expert. An internationally recognized lawyer, columnist, and speaker, Steve is also an author of 15 books. His highly syndicated business column, <i>Ask an Expert</i>, appears weekly at USATODAY.com. He is also a columnist for Microsoft, and AT&T who calls him “America’s Small Business Expert.” He has been featured on CNN, CNBC, Bloomberg Television, <i>The O’Reilly Factor</i>, and the BBC. He has been a regular guest on MSNBC’s small business show, <i>Your Business</i>.</p> <p class="MsoNormal"><span style="font-family:Calibri;font-size:x-small;"><span style="font-size:11pt;font-family:Calibri;"></span></span></p><div style="clear:both;"></div> </article> <article> <h1>9 Ways to Reduce Chargebacks and Fraud</h1> <p>MySolutionSpot Editor — Sat, 12 Jul 2008 03:39:19 GMT</p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;"></span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;">Merchant concern about online credit card fraud and chargebacks is rising at a significant rate. According to the 2001 Online Fraud Report, conducted by Mindwave Research, it revealed that, "41% of merchants say the issue of online credit card fraud is 'very serious' to their business." </span><span style="font-size:10pt;font-family:Arial;"> </span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;"></span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;">Chargeback, the word that Internet merchants fear. A chargeback is what it's called when a transaction is reversed. In other words, rather than adding money to your account it is deducted. Chargebacks can occur for a wide variety of reasons, such as double-charging, credit card expiration, bank error and customer disputes. If you get too many chargebacks against you, there is a possibility that you will lose your merchant account. Once you've lost your merchant account you are placed on the Visa/MasterCard Terminated Merchant File (TMF/MATCH list) for several years which all Merchant Account Providers have access to, and if they find you on the list they won't reissue a merchant account to you. If you are one of those merchants who have lost their merchant account, there is still hope. Imax Business Solutions specializes in helping companies who've lost their merchant account because of excessive chargebacks. </span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;"> </span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;">Here are some ways you can greatly reduce the instances of chargebacks and fraud, even potentially eliminate the risk altogether: </span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;"> </span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><b style="mso-bidi-font-weight:normal;"><span style="font-size:10pt;font-family:Arial;">#9 Collect CVC2 and CVV2 Verification Numbers </span></b></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;"> </span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;">This tactic alone can not only reduce instances of chargebacks by 26%, according to Visa, but also reduce any pass-through fees that may be charged when a credit card order is conducted. On the back of MasterCard, most Visa and Discover credit cards is a 3- digit security code located right after your credit card number. Requiring customers to give the 3-digit code acts as an additional verification measure. American Express cards also have a similar security code that is located on the front of the card right above the cardholder's account number and is usually 4- digits long. Most online payment processors support entering the security codes when processing credit card orders. Check with your payment gateway provider (i.e. Verisign, Authorize.Net, ECHO Inc., etc) for details. </span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;"> </span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><b style="mso-bidi-font-weight:normal;"><span style="font-size:10pt;font-family:Arial;">#8 Use Address Verification System (AVS) </span></b></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;"> </span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;">AVS checks to ensure the address entered on the order form matches the address to where the cardholder's billing statements are mailed to. People ordering products and/or services using a stolen card number will never use the real cardholder's billing address, so this is your chance to stop the order before it's too late. AVS only works with orders conducted in the US. Failure to use AVS when processing credit card transactions will always result in paying higher credit card processing fees. </span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;"> </span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><b style="mso-bidi-font-weight:normal;"><span style="font-size:10pt;font-family:Arial;">#7 Scrutinize orders from developing foreign countries </span></b></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;"> </span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;">A large percentage of fraudulent Internet purchases are made from Indonesia, Russia, and other eastern block or developing countries. Accept orders from such countries at your own risk until a worldwide AVS system is developed. </span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;"> </span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><b style="mso-bidi-font-weight:normal;"><span style="font-size:10pt;font-family:Arial;">#6 Let customers know what name will appear on statements </span></b></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;"> </span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;">Many merchants who use 3rd Party Processing companies have run into problems because the company name that appears on cardholder's monthly statements is usually the name of the 3rd party processing company and not the company name of the site the cardholder made their purchase from. This isn't always the case, but in many cases it is. If you use a 3rd party processor, and even if you don't, make sure the customer knows what name will appear on their credit card statement at the end of the month. This will help to reduce any confusion that might would otherwise occur. </span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;"> </span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><b style="mso-bidi-font-weight:normal;"><span style="font-size:10pt;font-family:Arial;">#5 Handle suspicious orders accordingly </span></b></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;"> </span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;">If an order seems suspicious the best way to handle the situation is to either call or e-mail the customer and attempt to verify that they placed the order. As a rule of thumb, if in doubt, check things out. It may be a good idea that if a customer makes an unusually large volume purchase from your site to follow-up with a verification call. </span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;"> </span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><b style="mso-bidi-font-weight:normal;"><span style="font-size:10pt;font-family:Arial;">#4 Watch out for orders using free e-mail addresses </span></b></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;"> </span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;">Be wary of accepting orders from people who used a free e-mail address when ordering (i.e. Hotmail, Yahoo, etc.). Tracking people who used a free e-mail address is almost impossible, it's much easier for them to get away then if they used their Internet Service Provider (ISP) or their own company web site e-mail address. To check whether an e-mail address is a freebie or not just take the part of the address after the "@" symbol, add "www" to the front of it and see what website it brings up (i.e. joe@yahoo.com = www.yahoo.com). </span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;"> </span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><b style="mso-bidi-font-weight:normal;"><span style="font-size:10pt;font-family:Arial;">#3 Signatures on delivery </span></b></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;"> </span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;">If your business delivers products use a carrier that requires a signature on delivery, and allows you to have a copy of the signature. Retain these for your records. </span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;"> </span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><b style="mso-bidi-font-weight:normal;"><span style="font-size:10pt;font-family:Arial;">#2 Request fax copies of ID and credit card </span></b></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;"> </span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;">You may want to request your customer to fax a copy of both sides of their credit card and driver's license. This tactic usually works best in a B-to-B (business to business) sales environment. While this is not a defense under Visa or MasterCard rules, it is yet another way to deter fraud. </span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;"> </span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><b style="mso-bidi-font-weight:normal;"><span style="font-size:10pt;font-family:Arial;">#1 Posting a warning message </span></b></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;"> </span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;">Taking the time to post a warning message on your order page to those who may attempt to make a fraudulent order will greatly deter the number of instances of fraud. Be sure to mention that IP (Internet Protocol) addresses are being logged. IP addresses can come in handy when locating people about fraudulent orders. </span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;"> </span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;">Taking measures to deter and eliminate fraud and chargebacks from occurring are a necessity in order to operate a successful online business. Each day companies dedicated to risk management are developing solutions to provide merchants, like yourself, with extra protection because of the financial burdens chargebacks and fraud can bestow if ignored. </span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;"> </span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;">For more information on how your business may benefit from reducing chargebacks and fraud. Click over to http://www.cmscreditcards.com </span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;"></span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;"></span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;"> </span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><b style="mso-bidi-font-weight:normal;"><span style="font-size:10pt;font-family:Arial;">About The Author </span></b></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;"> </span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;">Scott Burke, President of MAXX Business Solutions is committed to making the merchant experience a pleasure and one that will build long-lasting business relationships. MAXX works as a trusted partner in merchant account credit card processing and strives to provide merchants with the best support, the best rates, and the best service in the industry. http://www.cmscreditcards.com/payment-processing.html </span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;"><span style="mso-spacerun:yes;"> </span></span></p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style="> </p> <p style="margin:0in 0in 0pt;" class="MsoNormal" style=">Source: http://www.articlecity.com/articles/business_and_finance/article_8927.shtml</p> </article> <article> <h1>Writing a Business Plan</h1> <p>MySolutionSpot Editor — Sat, 12 Jul 2008 03:39:14 GMT</p> <p><span style="font-size:10pt;font-family:Arial;">And the Necessary Sections of the Business Plan <br /><br />A business plan is a devise used to develop or define business initiatives. It is often compared to a blueprint or road map. Planning a business and mapping out its course can prevent serious mistakes and uncover fatal defects. Errors made on paper are less devastating and, in most cases, can be easily corrected. Errors made during the actual operation of the business, however, can prove detrimental to its future existence. <br /><br />A business plan outlines where a company currently stands, where it anticipates to be in the future and how it intends to get there. The plan details who is or who will be controlling all decisions made within the organization. It describes the product/service being offered. It provides background information on the industry, a description of the market in terms of size and growth, a profile of the target consumer, an analysis of existing competition, methods for distributing products, defined pricing strategies, and all promotional vehicles intended to be employed. The business plan also provides details on the company's selected suppliers of materials, the production process, licenses and permits required, capital asset requirements, proprietary information, facility specifications, and details regarding research & development. <br /><br />One of the most important areas of a business plan is the financial projections. The financial projections forecast the potential profitability and capital requirements of the proposed enterprise. Well developed business plans include a three year forecast of the income statement, balance sheet, cash-flow statement, break-even analysis, sensitivity analysis, and ratio analysis. <br /><br />A business plan is not a magical tool ensuring success. Moreover, the act of creating a business plan does not create financial stability for its author. A business plan, on the other hand, is a tool used to help determine the feasibility of a new venture, to determine the visibility of an expansion for an existing business, or to determine whether a newly developed initiative will provide profitable results. <br /><br />The remaining topics to be addressed under this topic include the following: <br /><br />PART A. Three Types of Business Plans <br /><br />PART B. Sections of a Business Plan <br /><br /><b style="mso-bidi-font-weight:normal;">PART A. - THREE TYPES OF BUSINESS PLANS</b>: <br /><br />The three (3) types of business plans include a Full Business Plan, a Brief Business Plan and an Operational Business Plan. <br /><br />The Full Business Plan is prepared by entrepreneurs or organizations requiring large amounts of financing. In addition, aspiring entrepreneurs usually develop a full business plan to add credibility to themselves and to their proposed venture. Furthermore, these entrepreneurs usually have little business experience and therefore must prove to investors that they have "schooled" themselves in the activities of the industry and are aware of what they are getting into. <br /><br />Depending upon the complexity of the proposed business, a Full Business Plan can range between forty and eighty pages in length. The format provided under the "Writing a Winning Business Plan" section outlines how to develop a Full Business Plan. <br /><br />A Brief Business Plan is much shorter; generally between twenty and thirty pages in length. It summaries all major functional areas of a business. It is usually created by an existing business who requires an increase in their operating loan or require a loan for a planned expansion. Furthermore, since a banker usually has a basic knowledge of the existing business (from prior visits or loan applications), fewer details are required and focus tends to be placed on the company's past ability to repay loans or other debt. A Brief Business Plan can also be used to stimulate an investor's interest and/or to monitor their reaction to the existing/proposed product or service. <br /><br />An Operational Business Plan is used by existing businesses to forecast their upcoming year's revenues, expenses, cash inflows & outflows, break-even point, sensitivity analysis etc. This type of business plan is often developed on an annual basis to keep key employees focused on the organization's goals, objectives, and strategies. Furthermore, an Operational Business Plan generally is prepared for internal purposes only - it's not used as a tool to apply for bank loans or acquire capital from investors. <br /><br /><b style="mso-bidi-font-weight:normal;">PART B. - SECTIONS OF A BUSINESS PLAN</b> <br /><br />All business plans have a basic format or structure. Below outlines and briefly describes each component of a business plan. <br /><br />THE TITLE PAGE <br /><br />The title page of a business plan depicts the company's name and address. The name and contact number of the owner/CEO is also provided in a standard title page. Additionally, some business plan writers include a confidentiality and proprietary statement along with a disclaimer of securities. As you may suspect, the title page is one page in length. <br /><br />THE TABLE OF CONTENTS <br /><br />The table of contents outlines a chronological listing of all sections and subsections of your business plan. Page numbering is used to reduce the reader's search for specific information. Most business plan writers place the table of contents on one or two pages; three pages are too many. <br /><br />THE EXECUTIVE SUMMARY <br /><br />The executive summary highlights the most crucial aspects of each major business plan section. Its purpose is to entice readers (investors) so that they continue to read the entire plan. The length of an executive summary usually ranges between two and five pages. <br /><br />THE MISSION & STRATEGY STATEMENTS <br /><br />Your mission statement details where your business is currently and where it intends to be in the future. The strategy statement usually outlines the tactics you intend to employ in order to achieve your company's missions, objectives and goals. The average length of this section generally ranges from one to four pages. <br /><br />MANAGEMENT & STAFFING SECTION <br /><br />This section of the business plan details your company's planned or existing management team, outside supporters, strategic alliances and staffing requirements. The Management & Staffing section must prove to investors that you have developed or intend to develop, a Team that will produce the results outlined throughout your business plan. <br /><br />THE OPERATIONS OF YOUR COMPANY <br /><br />The operations section of the business plan will provide basic information on the company's current situation and/or background information for existing businesses. Other topics addressed under this section include direct material requirements, the production process, facility specifications, permits & licenses, research & development initiatives, capital asset requirement, milestones, and external influences just to name a few. <br /><br />THE MARKETING & PROMOTIONS SECTION <br /><br />The Marketing and Promotions section of your business plan provides background information on the industry, a description of the market in terms of size and growth, a profile of your target market, an analysis of your competition, distribution channels, your pricing strategies, and the promotional vehicles you intend to employ. The marketing & promotions section of the business plan is one of the most important sections and therefore, great consideration should be given to its structure and level of detail. <br /><br />THE FINANCIAL PLAN <br /><br />The Financial plan is possibly the most scrutinized section of any business plan. It usually consists of three parts, namely 1) an introduction, 2) the forecasted financial statements, and 3) notes to the forecasted financial statements. <br /><br />The introduction tells the reader what he/she is expected to find under the financial plan. The forecasted financial statements consist of projections over a three year period of the following items; forecasted income statement, balance sheet, cash-flow statement, break-even analysis, sensitivity analysis, and ratio analysis. The Notes to the Financial Statements summarize or explain the "assumptions" made by the entrepreneur when creating the forecasted financial statements. <br /><br />THE APPENDICES <br /><br />The appendix provides information and/or documents that support any claim made throughout the body of the business plan. Letters of intent from suppliers & customers, supporting charts & diagrams, resumes, patent or trademark documents, quotations, financial budgets, floor plans, facility layouts, and demographic charts are common examples of items appearing in an appendix of a business plan. <br /><br />There are some strict guidelines to follow when structuring your business plan. The title page always appears as the first page of the business plan. The table of contents will then follow. The executive summary must follow the table of contents. Appearing after the executive summary will be your mission and strategy statements. <br /><br />The sequence of the next three sections is left up to the entrepreneur. Moreover, placement of Management & Staffing section, the Marketing & Promotion section, and the Operation's section usually depends on the flow of the business plan. The Financial Plan will be the next section to appear. Finally, the Appendices will ALWAYS appear as the final section of your business plan. </span></p> <p>Author: <b class="author">Karl Johnston</b></p> <p> </p> <p class="MsoNormal" style=">Source: <span style="font-size:10pt;font-family:Arial;"><a href="http://www.articlecity.com/articles/business_and_finance/article_8899.shtml">http://www.articlecity.com/articles/business_and_finance/article_8899.shtml</a></span></p> </article> <article> <h1>Online Banking and Bill Payment Spur Loyalty</h1> <p>MySolutionSpot Editor — Tue, 16 Sep 2008 13:46:57 GMT</p> <p> For the first time ever, online bill payments surpassed paper checks among Internet households, according to a <a href="http://www.checkfree.com/" target="blank">CheckFree</a> report titled "The 2007 Consumer Bill Payment Survey."</p> <table align="top" cellpadding="0" cellspacing="0"> <tr> <td> </td> <td> </td> <td>The report, conducted with <a href="http://www.mwshop.com/" target="blank">The Marketing Workshop</a> and <a href="http://www.harrisinteractive.com/" target="blank">Harris Interactive</a>, found that 74% of all US Internet households pay at least one bill online.<br /><br /> Also, 39% of total bill payment volume among US Internet households in January 2007 was online, up 4% over December 2005. Mailed check volume fell 4%, to just 34% of the total bill payment volume. </td> </tr> </table> <p>This is all good news for banks, according to a <a href="http://www.foreseeresults.com/" target="blank">ForeSee Results</a> and <a href="http://www.forbes.com/" target="blank">Forbes.com</a> study. </p> <table align="top" cellpadding="0" cellspacing="0"> <tr> <td>The firms found that consumers who pay their bills through a bank Web site are more satisfied with their financial institution than either people who just check their balances or transfer money online, and others who don't use computers for financial business. <br /><br />On a 100-point scale rating customer satisfaction, people who banked and paid bills online scored their banking experience at 79, while online bankers rated their banks at 76 and offline bankers scored around 70.<br /><br />The more bills paid through a bank's site, the higher the satisfaction, it seems. Consumers who paid more than six bills through the bank scored 81 out of 100 points for "total satisfaction." </td> <td> </td> </tr> </table> <table align="top" cellpadding="0" cellspacing="0"> <tr> <td> </td> <td> </td> <td>Forsee found that higher customer satisfaction boosts share of wallet for banks. <br /><br />Online bill payers are 31% more likely to purchase additional services from their bank than online bankers who do not pay bills through the bank's Web site. <br /><br />Even then, consumers who just bank online are 19% more likely to recommend their bank than offline bankers. </td> </tr> </table> <table align="top" cellpadding="0" cellspacing="0"> <tr> <td>However, credit unions have higher overall customer satisfaction scores (84) than both large banks (77) and community banks (77). Their customers were more likely to purchase more services and recommend the institution and its Web site to others. <br /><br /> eMarketer's "Financial Services Online Marketing" report is published in July 2007. To be notified when it is released, <a href="http://totalaccess.emarketer.com/ReportNotification.aspx?src=report_notification_reports=blank">click here</a>.<br /><br /> <b>Article Source: </b><a href="http://www.emarketer.com=blank">www.emarketer.com</a> </td> <td> </td> </tr> </table><div style="clear:both;"></div> </article> <article> <h1>The Revolution of Mobile Financial Services</h1> <p>MySolutionSpot Editor — Fri, 12 Sep 2008 20:42:38 GMT</p> <p>Mobile banking and payments could revolutionize the financial sector the same way that the ATM did, according to a January <a href="http://www.juniperresearch.com/index.php">Juniper Research</a> report "Mobile Financial Services: Banking & payment markets 2007-2011."</p> <p>By 2011, Juniper predicts 612 million worldwide mobile phone users will generate over $587 billion worth of financial transactions.</p> <p>Of that total, mobile payments are expected to generate $22 billion worth of transactions by 2011, through 204 million mobile phone users. </p> <p>Juniper sees enormous potential in giving consumers the freedom to bank and make payments from their mobile phone. </p> <p>"A combination of increased user demand and a desire from all sections of the MFS ecosystem to deliver intelligent applications and services has created an atmosphere that is both creative and pragmatic," says report author Alan Goode.</p> <p>Article Source: <a href="http://www.emarketer.com">www.emarketer.com</a></p><div style="clear:both;"></div> </article> <article> <h1>Small-Business Owners Learn to Adapt in Economic Downturn</h1> <p>MySolutionSpot Editor — Mon, 18 Aug 2008 14:48:10 GMT</p> <p>Many small businesses are feeling the pinch from a shaky economy, climbing prices, and low consumer confidence. Small business experts say small businesses looking to survive difficult times must react to the times and stay nimble, watch their costs, and be innovative. Innovation does not mean reinventing the company, but rather looking for new ways to sell products or services and expanding to new markets. </p> <p>Last month, for the first time since the early 1980s, small business owners cited inflation as their leading worry in a monthly survey conducted by the National Federation of Independent Business, with rising fuel costs cited as a particular concern. Fortunately, access to business credit in this tight economy is not a major concern for most small business owners. </p> <p>In the survey, 35 percent of small business owners reported regular borrowing activity, which is a typical result in surveys taken over the past 15 years. Only 2 percent of owners cited the cost and availability of business credit as their No.1 business problem. </p> <p><span class="cite"><b>"Small-Business Owners Learn to Adapt in Economic Downturn"</b><br /><i>Kansas City Star (07/21/08) Goforth, Alan </i></span></p><div style="clear:both;"></div> </article> <article> <h1>Strategies: How to Keep Your Business Bank Accounts Safe</h1> <p>MySolutionSpot Editor — Mon, 18 Aug 2008 14:36:23 GMT</p> <p>The recent collapse of a major U.S. bank highlights the need to understand the federal government's deposit insurance protections. The U.S. government, through the Federal Deposit Insurance Corp. (FDIC), protects up to $100,000 per individual, but that applies to all accounts an individual has at any one bank, including both business and personal accounts if the individual is the sole proprietor. </p> <p>Small businesses can easily have more than $100,000 in their business bank accounts, which can include a business checking account, a money market account, and a certificate of deposit. Some retail operations and restaurants can have tens of thousands of dollars going through a bank account every month that could quickly exceed $100,000. Additionally, many small business owners use the same bank for their business and personal accounts, as it is easier, and often necessary, to transfer funds between accounts. </p> <p>To make sure all your assets are protected, it is important to know a few specifics. The FDIC covers only $100,000 per bank per "entity," which includes individuals, corporations, and legal partnerships, each of which can have separate FDIC insurance up to the $100,000 limit. Sole proprietorships are not separate entities from the individual, so if your business is not incorporated or a LLC, your business accounts are not covered separately from your personal accounts. However, if a spouse is on a personal account, he or she is also insured up to $100,000. Legal corporations, LLCs, and legal partnerships are separate entities. A legal partnership is a single entity with a $100,000 insurance limit, no matter how many partners are in the legal partnership. </p> <p>If you have more than $100,000 in all your business and personal accounts, consider switching some funds to another FDIC-insured bank.</p> <p><span class="cite"><b>"Strategies: How to Keep Your Business Bank Accounts Safe"</b><br /><i>USA Today (07/25/08) Abrams, Rhonda </i></span></p><div style="clear:both;"></div> </article> <article> <h1>CFO insights for Corporate Profit Engineering...made simple</h1> <p>Russell Morris — Thu, 14 Aug 2008 20:03:53 GMT</p> <p>As President of CFO Partner, I have spent most of my professional career working as a CFO, Interim CFO, Corporate Turnaround Consultant and Chapter 11 Bankruptcy Workout Consultant for small to mid-sized corporations. </p> <p>If I have gleaned one "bulls-eye" from my target of executive level experiences it is that companies lack information and insight into the current financial position of the firm. Either owners don't know how to best orchestrate the business of their business or they simply don't like the process of working with "numbers" so to speak, or they are not aware of the financial strategies that successful firms employ. </p> <p>In most firms I have turnaround, budget baselines were not development and implemented that establish clear performace criteria, variances from budget goals are not addressed on a real-time status and windows for making key adjustments are missed. Moreover, profitability is not measured based upon accurate costs, whether cost of goods sold or overhead and new Sales Projects are not isolated comprehensively in order to effectively manage true costs and subsequent profitability. </p> <p>Additionallly, cash flow is not projected on a weekly, bi-weekly and monthly basis and breakeven points are not defined in order to control sales and measure receivables. In other words, companies are run by accounting software systems not by strategic financial controls.</p> <p>CFO Partner has developed corporate strategic financial models for pro-active privately held corporations as well as for government contracting firms that are controlled, in essance, by Government Compliance regulations. These models have been developed from hands on executive level CFO experience over the past eighteen years. They are designed to allow business owners to control their financial destiny in a straight forward manner without the headaches associated with new software applications or costly consulting fees.</p> <p>Succinctly put, we make good sense out of nonsense and this is accomplished very economically. </p> <p>As president of CFO Partner I am dedicated to making sincere, caring, hardworking owners of companies strategically knowledgeable, in control and utimately as successful as they want to be and as much as the marketplace will allow.</p> <p>If you have questions about how CFO Partner can provide insight and help for your company, email me with questions and I will do my best to be of assistance in short order. I look forward to your questions and comments. </p> <p>You can also visit the company website at: <a href="http://www.cfopartner.net">www.cfopartner.net</a> for additional information.</p> <p>Respectfully,</p> <p>Russell T. Morris, President</p> <p> </p><div style="clear:both;"></div> </article> <article> <h1>Understanding Forex Trading</h1> <p>MySolutionSpot Editor — Mon, 14 Jul 2008 18:48:49 GMT</p> <p>The Foreign Exchange market, also referred to as the “<b>Forex</b>” or “<b>FX</b>” market, is the largest financial market in the world, with a daily average turnover of well over US $1 trillion - 30 times larger than the combined volume of all U.S. equity markets. The word FOREX is derived from the words FOReign EXchange.</p> <div id="body"> <p><b>Spot and Forward Foreign Exchange</b></p> <p>Forex trading may be for spot or forward delivery. Spot transactions are generally undertaken for an actual exchange of currencies - delivery or settlement - for a value date two business days later.</p> <p>Forward transactions involve a delivery date further in the future, sometimes as far as a year or more ahead. By buying or selling in the forward market, it is possible to protect the value of any anticipated flows of foreign currency, in terms of one's own domestic currency, from exchange rate volatility.</p> <p><b>Difference Between Foreign Currency and Foreign Exchange</b></p> <p>Anyone who has traveled outside their country of residence would have had some exposure to both foreign currency and foreign exchange.</p> <p>For example, if you live in the United States and travelled, lets say, to London, England you may have exchanged your home currency i.e. US $ for British Pounds. The British Pounds are referred to as a foreign currency and the act of exchanging your US $ for British Pounds is called foreign exchange.</p> <p><b>The Foreign Exchange Market</b></p> <p>Unlike some financial markets, the foreign exchange market has no single location as it is not dealt across a trading floor. Instead, trading is done via telephone and computer links between dealers in different trading centres and different countries.</p> <p>The FX market is considered an Over The Counter (OTC) or ‘interbank’ market, as transactions are conducted between two counterparts over the telephone or via an electronic network. Trading is not centralized on an exchange, as it is with the stock and futures markets.</p> <p><b>Reasons for Buying and Selling Currencies</b></p> <p>Through the mechanism of the foreign exchange market companies, fund managers and banks are enabled to buy and sell foreign currencies in whatever amounts they want. The demand for foreign currency is stimulated by a number of factors such as capital flows arising from trade in goods and services, cross-border investment and loans and speculation on the future level of exchange rates. Exchange deals are typically for amounts between $3 million and $10 million, though transactions for much larger amounts are often done.</p> <p>There are two basic reasons to buy and sell currencies. About 5% of daily turnover is from companies and governments that buy or sell products and services in a foreign country or must convert profits made in foreign currencies into their domestic currency. The other 95% is trading for profit, or speculation.</p> <p><b>Currency Speculation</b></p> <p>Speculators desire to trade forex for the opportunity to profit from a movement in currency exchange rates. For example, if a trader believes that the Euro will weaken relative to the U.S. dollar, then the trader can sell Euros against U.S. dollars in the Forex market. This is referred to as being "short Euros against the dollar" which, from a trading perspective, is the same as being "long dollars against the Euro". If the Euro weakens against the dollar, then the position will profit</p> <p>For speculators, the best trading opportunities are usually with the most commonly traded and therefore most liquid currencies, called “the Majors.” Today, more than 85% of all daily transactions involve trading of the Majors, which include the US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and Australian Dollar.</p> <p><b>True 24 Hour Market</b></p> <p>Forex is a true 24-hour market and trading begins each day in Sydney, and moves around the globe as the business day begins in each financial centre, first to Tokyo, then London, and then New York. Unlike any other financial market, traders can respond to currency fluctuations caused by economic, social and political events at the time they occur - day or night.</p> <p>As with all financial products, FX quotes include a "‘bid" and "offer". The "bid" is the price at which a dealer is willing to buy - and clients can sell - the base currency for the counter currency. The "offer" is the price at which a dealer will sell - and clients can buy - the base currency for the counter currency.</p> <p><b>The US Dollar is the Centre-piece</b></p> <p>The US dollar is the centre-piece of the Forex market and is normally considered the "base" currency for quotes. In the “Majors,” this includes USD/JPY, USD/CHF and USD/CAD. For these currencies and many others, quotes are expressed as a unit of $1 USD per the other currency quoted in the pair. The exceptions to USD-based quoting include the Euro, British pound (also called Sterling), and Australian dollar. These currencies are quoted as dollars per foreign currency as opposed to foreign currencies per dollar.</p> <p><b>What Affects the Currency Prices</b></p> <p>Currency prices are affected by a variety of economic and political conditions, most significantly interest rates, inflation and political stability. Moreover, governments sometimes participate in the Forex market to influence the value of their currencies, either by flooding the market with their domestic currency in an attempt to lower the price, or conversely buying in order to raise the price. This is known as Central Bank intervention.</p> <p>Any of these factors, as well as large market orders, can cause volatility in currency prices. However, the size and volume of the Forex market makes it impossible for any one entity to "drive" the market for any length of time.</p> <p>Currency traders make decisions using both technical factors and economic fundamentals. Technical traders use charts, trend lines, support and resistance levels, and numerous patterns and mathematical analyses to identify trading opportunities. Fundamentalists predict price movements by interpreting a wide variety of economic information, including news, government-issued indicators and reports, and even rumour.</p> <p><b>Rewards and Risks in the Forex Trading Market</b></p> <p>Trading foreign currencies is a challenging and potentially profitable opportunity for educated and experienced traders.</p> <p>However, there is considerable exposure to risk in any foreign exchange transaction. Any transaction involving currencies involves risks including, but not limited to, the potential for changing political and/or economic conditions that may substantially affect the price or liquidity of a currency.</p> <p>Moreover, the leveraged nature of FX trading means that any market movement will have an equally proportional effect on your deposited funds. This may work against you as well as for you. The possibility exists that you could sustain a total loss of initial margin funds and be required to deposit additional funds to maintain your position. If you fail to meet any margin call within the time prescribed, your position will be liquidated and you will be responsible for any resulting losses.</p> <p>Before deciding to participate in the Forex market, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, you should not invest money you cannot afford to lose.</p> <p>As an investor you may lower your exposure to risk by employing risk-reducing strategies such as "stop-loss" or "limit" orders.</p> <p>There are also risks associated with utilizing an Internet-based deal execution software application including, but not limited to, the failure of hardware and software.</p> </div> <div> <table cellpadding="0" cellspacing="0"> <tr> <td> <div id="sig" class="sig"> <p>Stephen S Alison is a retired "bean counter" who spent 26 years in middle management positions for major US financial institutions in Europe and a further 10 years as an adviser/consultant to a number of European financial institutions. He owns and operates a number of "hand built" niche websites including: <a target="_new" href="http://www.24carat-gold.com/" id="link_99">http://www.24carat-gold.com</a> <a target="_new" href="http://www.forex-arbitrage.com/" id="link_100">http://www.forex-arbitrage.com</a></p> <div> <p>Article Source: <a href="http://ezinearticles.com/?expert=Stephen_S_Alison" id="link_101">http://EzineArticles.com/?expert=Stephen_S_Alison</a></p> </div> </div> </td> </tr> </table> </div><div style="clear:both;"></div> </article> <article> <h1>Building Equity Value For Your IT Service Company</h1> <p>MySolutionSpot Editor — Sat, 12 Jul 2008 03:39:43 GMT</p> <p>If you are just starting your company, the idea of equity value is probably not on your radar screen. If you have owned your company for 10+ years, it has probably occurred to you that you might want to sell your company and do some world travel and work on that golf game. In either case, if you are thinking about how to build equity value in your IT service company, there are some basics you need to know about. </p> <p>The first thing to know is that the real value of your company is not going to show up on your balance sheet. All service companies have this issue – law firms, consulting firms, and IT service companies included. Generally service companies have no major capital assets like manufacturing equipment or production facilities. </p> <p>Most don’t even have any significant inventory. Without assets the only way to build equity is to accumulate earnings in the company. But usually that is not a good idea because of the tax implications. As a result, service companies use a different approach to defining value. Usually this is done with the help of an outside accounting firm that specializes in company valuations (a “valuation” is different than an “evaluation” – experienced accountants get a lot of humor out of people asking for an evaluation). </p> <p>The accounting firm uses several methods to calculate the market value and then they usually summarize their process in a report and present a final number along with a range from high to low. This report can become the basis for pricing the stock of the company, for taking out a loan, for buying another company to mention a few possibilities. </p> <p>Company owners often don’t think about the value of their company until a critical need or opportunity arises. But then it is usually too late to do anything that will make a big difference. The informed owner, however, will think about this way ahead of time and will make minor adjustments that will have a huge impact on future company value and they will be ready to respond when an opportunity arises. </p> <p>There are many reasons for getting a formal valuation – some obvious and some less obvious: </p> <p>• selling your company </p> <p>• obtaining financing for expansion </p> <p>• bringing on a partner </p> <p>• adding new shareholders </p> <p>• setting up an employee stock option plan </p> <p>• acquiring another company (especially if stock is part of the deal) </p> <p>• merging with another company </p> <p>Key to all of these scenarios is knowing the equity value or market value of your company ahead of time - that is your ultimate bargaining chip. It is what you will trade or sell or use as collateral. If you have a low value, you won’t have much to bargain with. If you have a high value, you can get a lot and potentially give up very little. We will discuss more of the math of these concepts in future blog postings. So what specific actions can you take to build equity value? Before bringing an accounting firm in to do a valuation, what actions can you take to create the best results? </p> <p>Here is a very basic list of actions you can take: </p> <p>1. Maximize recurring revenues – this has much greater value than one-time revenues such as special projects and on-call support. </p> <p>2. Put your customers on formal service agreements that define recurring fees and special project fees. </p> <p>3. Customer agreements should include a term of service (such as 12 months) with automatic renewal if there are no changes. </p> <p>4. Distinguish owner base salary from bonuses and dividends. All forms of incentive pay need to be viewed as part of the profits of the company for analysis purposes. </p> <p>5. Create a business plan that emphasizes steady growth. Lumpy growth or no growth can have negative effects on valuation. </p> <p>6. Plan for growth to come from existing clients as well as from new clients. Ideally you should be getting about 60% of your growth from existing clients or you are leaving money on the table. </p> <p>7. Be sure that overheads and direct costs are not increasing faster than your revenue growth. </p> <p>If either of these are growing faster, it can be a “silent killer” for many companies. 8. Know how your business performance compares to industry benchmarks. This can carry a lot of weight in valuations. We will be providing more detail on these concepts in future blog posts. The key message here is to not wait until a situation arises that requires a valuation. The earlier you get started learning what affects valuation and taking steps to increase valuation the greater the benefit to you will be when a need does arise.</p> </article> <article> <h1>Cashflow: Guarding the Green</h1> <p>MySolutionSpot Editor — Sat, 12 Jul 2008 03:39:30 GMT</p> <p>During the exciting early stages of starting a business it is easy to overlook several small details that could make or break a young business. </p> <p>First, do not blindly trust customers and partners as extending credit unwisely could turn into a collections nightmare. While a level of trust is needed, it is acceptable and smart to run a credit check when negotiating a contract, asking for a deposit upfront, and establishing a line of credit with your bank as a precaution. </p> <p>Make sure to keep neat books and to file everything that needs to be filed with the IRS, such as payroll taxes and estimated business taxes. Keep employee withholding taxes in a separate account, and understand the difference between an employee and an independent contractor; confusing the two can lead to financial and legal trouble. </p> <p>Many businesses need expensive equipment to get started, and a good way to save is to depreciate the equipment as it ages. While doing so will not create profit, depreciation can help business owners prepare for future capital outlays. Whether your business is in retail or not, create a business plan like a retail business would, thinking ahead several seasons to predict where your company will be in the business cycle and whether you will need additional resources. </p> <p>Keep your business and personal finances separate, and have a plan in place for how you will borrow money when you need to and how you will pay it off. Keep organized books that track when you buy, when you sell, and when you get paid as they are three different categories with different meanings. </p> <p>Encourage customers to pay early with discounts for advance payment, and have a charge to discourage late payments. Follow all IRS filing deadlines even if you cannot pay the amount due as it is far better to apply for installment payments than to face penalties. Purchase insurance to protect your business in the event on an emergency, including business interruption insurance and property coverage. </p> <p>"Cashflow: Guarding the Green" Smart Business Ideas (05/08) Vol. 4, No. 5, P. 28; Stettner, Morey</p> </article> <article> <h1>Financial Modeling: Murder by Numbers</h1> <p>MySolutionSpot Editor — Sat, 12 Jul 2008 03:39:22 GMT</p> <p class="articletext2">To borrow a line from the Police, it might seem as easy as your a-b-c's, but there's a lot that goes into effective financial modeling. <br /> <br /> For my entire career, financial modeling has always been central to the analysis I've relied upon to evaluate a business' health or justify an investment in its growth. <br /> <br /> There are several important steps to follow in developing a financial model which will serve your objectives as an entrepreneur, whether you're trying to manage what you have or raise capital for what you could. This is particularly true for newer enterprises, as the discipline associated with identifying and thinking through the key business drivers is invaluable to the early planning process.<br /> <br /> <b>1. Figure out what you're trying to accomplish. </b><br /> <br /> As an entrepreneur, you have a number of competing objectives. Depending on how established you are, you may have a business to run on a day-to-day basis, and it's hard to find the time to plan, build and manage against a set of financial models. <br /> <br /> You may be tempted to build a simple income statement-type spreadsheet that lays out revenue assumptions and backs out costs. <br /> <br /> But effective financial models can and should be used for so much more. Using them, you can look six to sixty months down the road to plan for organic growth, evaluate opportunities to enter new markets or take on new sources of capital, or anticipate liquidity problems. <br /> <br /> I highly recommend taking the time to build a model which will generate a consolidated set of financial statements that will provide a more comprehensive picture of your business. And the sooner you identify the range of scenarios, the easier it is to plan and build your model to accommodate them.<br /> <br /> <b>2. Plan, and then plan some more</b><br /> <br /> A rule of thumb in traditional software design and development is that for more complex projects your engineering team may spend half of the overall project timeline in planning and design. In my view, that's overdoing it for financial modeling, but not by much. Key planning considerations include:<br /> <br /> Breaking down the key business drivers and assumptions, and how they are all related (more on this below) <br /> <br /> Determining the level of detail / drill-down capabilities <br /> <br /> Building a simple map of how your supporting sheets will roll up to your consolidated financial statements <br /> <br /> Determining what type of sensitivity analysis you want to model and present <br /> <br /> <b>3. Identify the key business drivers and assumptions </b><br /> <br /> Particularly if you're looking to raise capital, breaking down and modeling your key assumptions and drivers is the most important aspect of building your projections, and one of the most important elements in presenting your business. <br /> <br /> It will reflect your understanding of your market(s), growth opportunities and drivers, operating requirements, and what it takes to pull it all together. It is also an opportunity to demonstrate that your aspirations are firmly grounded in the reality of reasonable expectations about time to market, delays, cost overruns, etc.<br /> <br /> So if you're modeling a new product roll-out, it's not sufficient to say you'll sell X Widgets each month for $Y per and multiply the two numbers. Instead, you need to model out what drives unit sales, what are the elements of pricing (including discounting, up sells, bundling, etc.), how each of these elements might change over time, and then pull it all together. <br /> <br /> As you gain more information and market experience, or if you simply want to run some scenario analysis, you'll be able to tweak each of these variables and watch it flow through the analysis. <br /> <br /> This holds true for almost every revenue and cost driver - wherever possible, use formulas to do the work on clearly identified sets of assumptions that can be easily updated without needing to reformat the sheets manually.<br /> <br /> <b>4. Do the Sanity Check</b><br /> <br /> Far too often, reasonable assumptions accumulate to generate unreasonable outcomes, particularly when the financial model is extremely sensitive to changes in key variables or if compounding effects occur in the revenue streams. <br /> <br /> For example, in modeling an e-commerce business line recently, seemingly minor changes in the conversion rate of site visitors to paid subscription accounts (from, say, 0.75% to 1%) had a dramatic effect on the cumulative revenue stream over the 36 month forecast period. <br /> <br /> So it's essential that the model pass the smell test. If the compounded growth rates are not credible, it is frequently a reflection on your judgment as an entrepreneur, and it can negatively affect your access to capital. <br /> <br /> Putting dampers on your model, such as by decreasing growth rates once you achieve a certain market penetration, or simply adjusting your assumptions downward at various stages can help present more reasonable outcomes.<br /> <br /> <b>5. Put together a range of scenarios</b><br /> <br /> You'll want to generate downside and upside scenarios to complement your base case view of the business. Again, this requires judgment to put the pieces together and determine which scenarios make sense and which ones are a perfect recipe for disaster by showing a complete business collapse or a path to unlimited growth.<br /> <br /> <b>6. Take a step back and figure out what it all means </b><br /> <br /> Frequently, someone will present a set of numbers who hasn't taken the time to figure out what they really say or how they stack up to comparable companies. <br /> <br /> Understand and communicate, in plain language, what your margins are, where your forecast business is most sensitive to breakout opportunities or potential setbacks, and what your overall level of comfort is with the forecast.<br /> <br /> Of course, the sad fact of model building is that no matter how careful you've been to lay everything out, you're going to be, well, dead wrong. It's simply not possible, particularly in a newer (or even pre-revenue) business, to predict what's going to happen with any level of precision. <br /> <br /> But the process of building out the model will not only test, and then shore up, your understanding of your business, it will give you a sound foundation to measure your results, analyze them relative to your expectations, refine them, and continually improve your ability to plan for your business' growth.</p> <p class="articletext2"><b>About The Author--</b>John Siegler is a co-founder and CFO of Practice Technologies, Inc., creator of RealDealDocs. RealDealDocs gives you access to legal documents drafted by top US Lawyers. Search over 10 million documents and clauses for Free at <a href="http://www.realdealdocs.com/">www.RealDealDocs.com</a>.</p> <p class="articletext">Article Source: <a href="http://www.articlesisland.com/profile/john-siegler-3192.html">Articles island - Free article submission and free reprint articles</a></p> </article> <article> <h1>Your Home Business Budget Foundation</h1> <p>MySolutionSpot Editor — Sat, 12 Jul 2008 03:39:22 GMT</p> <p class="MsoNormal" style="margin: 0in 0in 0pt; line-height: 12.75pt; mso-outline-level: 2; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto;"><span style="font-size: 10pt; color: black; font-family: Arial;">Starting your own home business is a very tricky proposition. Starting your own enterprise is exciting, but it is also inherently full of risk. Enter discipline. Unless you get yourself going on the right foot, then the chances of achieving success are very small. <br /><br />Conversely, as long as you have the right foundation, and keep working on that foundation, success is almost an automatic thing. It is vital that you run your home business on a strict budget, if you aspire for long term success. Strictly budget your time and your money.<br /><br />As little as one hour a day, everyday, is enough to make your personal business get better everyday and grow steadily to keep your confidence up. Avoid distractions. <br /><br />One of the most important parts of running your business is operating on a budget of money and time. Every ad and every supply and tool you buy must earn the value put into it. This is a golden rule that can make you successful as you are going to be at any business.<br /><br />Many men and women, mostly unsuccessful ones, prefer going with the flow rather than with actually setting goals and budgets. For the most part, this attitude is a mistake. Unless you have an incredible memory and unnatural clear sightedness, planning for both the present and the future is a prerequisite to success.<br /><br />No matter how you define that elusive concept. Remember, no sloppy ad, supply or equipment buys. Check everything out scrupulously before putting your hard earned funds into it. Always shop for better prices and quality with every purchase you make. <br /><br />Because this article is about home businesses, we will begin by defining success as the growth and eventual profitability of your particular business. By growth we mean that the business will expand, hopefully outgrowing your home and eventually participating in the corporate arena or whichever one you feel comfortable to work in. <br /><br />By profitability, we mean that the business will become a cash generating machine, so much so that you attain financial freedom, and never have to work a single day again for someone else, if you do not feel like it. You will be your own woman or man. <br /><br />This article argues that in order to achieve growth and profitability, discipline is needed, and plans must be made and acted upon. I cannot harp on and emphasize this enough to you.<br /><br /><strong style="mso-bidi-font-weight: normal;">Crafting your budget</strong><br /><br />One of the most important plans you must conceptualize is that of your budget. Many businesses, even if they have great ideas and wonderful products, still fail for lack of proper planning and efficient allocation of resources. Do not let this happen to you. Only a home business on a strict budget can ever be truly successful.<br /><br />First, make it a habit to write down, both what you earn and what you spend, on a daily, monthly, and yearly basis. A common stenographer notebook will be perfect for this. Make a different page for every expense. Every expense and every sale must be recorded so you know where you are everyday.This is the least that you can do.<br /><br />Look over what you have written down and you will easily see the areas that can be improved upon, especially in the expense column. It is astonishing how many expenses we never notice until we get them down in paper. As the business grows larger, accounting knowledge might be needed. If you have neither the time nor the inclination to acquire the knowledge yourself, find someone who does. <br /><br />Second, analyze the figures and determine the areas where you can control costs, and where you should add capital. Every business has areas that generate above average returns, as well as areas that under perform. As much as possible, redirect your resources to the projects and ideas that give you the most return. You will quickly start to learn this from experience.<br /><br />Many years of experience have frequently given me the positive experience of having the lowest cost item or ad working for me best.<br /><br />The great secret here is to, are you ready? Shop around for the best buy and do not let your emotions run wild on you when you read or hear presentations that have wild claims or will not give you the whole detail story until you pay them first. Hah! Never do it. Give me the details or forget about it. You do not need to take unnecessary risks. <br /><br />Lastly, stick to your budget. Never forget this. A plan not acted upon is essentially useless, and a budget not followed is as useful as a page of doodles. Once you have written down and finalized your budget, do not make any departures from it unless absolutely necessary. Always have a solid reason for doing so.<br /><br />Be disciplined. It is the only way you will get anywhere. By running your home business on a focused budget, you are securing your future at a small expense to the present and a nice profit in the future. </span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; line-height: 12.75pt; mso-outline-level: 2; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto;"><span style="font-size: 10pt; color: black; font-family: Arial;"></span></p> <p class="MsoNormal" style="margin: 1.5pt 0in 7.5pt 7.5pt; line-height: 12.75pt;"><strong><span style="font-size: 10pt; color: black; font-family: Arial;">About The Author--</span></strong><span style="font-size: 10pt; color: black; font-family: Arial;"> James M. Lowe writes original articles about <a href="http://mysolutionspot.com/%20http://www.contenttomarket.com/ArticleWriters/">home business opportunities</a>. </span></p> <p class="MsoNormal" style="margin: 1.5pt 0in 7.5pt 7.5pt; line-height: 12.75pt;"><span style="font-size: 10pt; color: black; font-family: Arial;">Article Source: <a href="http://www.articlesisland.com/profile/james-m.-lowe-1028.html"><strong>Articles island - Free article submission and free reprint articles</strong></a></span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; line-height: 12.75pt;"><span style="font-size: 10pt; color: black; font-family: Arial;"> </span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="font-size: 10pt; font-family: Arial;"> </span></p> </article> <article> <h1>Disposing of Assets: Figuring the Gain or Loss</h1> <p>MySolutionSpot Editor — Sat, 12 Jul 2008 03:39:20 GMT</p> <p><span style="font-size:10pt;font-family:Arial;">A brief description of how to figure the gain or loss on the sale or discard of a fixed asset.<br /><br />The definition of Gain and Loss is as follows: <br /><br />Gain: When the sales price of a fixed asset exceeds the fixed asset's book value. <br /><br />Loss: When the sales price of a fixed asset is lower than the fixed asset's book value. <br /><br />How would you feel if you sold one of your fixed assets in your business for $2500, deposited that amount in your bank account, recorded it as revenue, paid taxes on the profit, and then, found out you only needed to report $500 not $2500? Kind of foolish maybe? It happens all the time, because people don't know how to figure the gain or loss from the disposition of their assets. <br /><br />Knowing how to write the proper adjusting journal entries that will record all the parts of a sale or trade of your fixed assets is a little complicated, especially when it comes to trades, and not possible to explain entirely in this article. The subject matter is thoroughly discussed my Real Life Accounting for Non-Accountants course. However, I can demonstrate some of the mechanics involved so that you will be aware that, when you sell or discard an asset, there is more to consider than meets the eye. <br /><br />For example, let's assume that you bought an office desk for $2500 and depreciated it using the Double-Declining method with a one-half year convention. In the U.S. this is called MACRS (pronounced "makers") or Modified Asset Cost Recovery System. The MACRS system requires a desk to be depreciated over seven years. Three years later, you decide the desk size is too small, so you sell it for $1800. The first step in determining the gain or loss on the sale is to figure out what the book value of the desk is. This is fairly easy to do if you have maintained a depreciation schedule for the desk. Set up a format such as this: <br /><br />Original Cost Desk: $2,500.00 <br /><br />Depreciation: <br /><br />Year 1) $357.25 <br /><br />Year 2) $612.25 <br /><br />Year 3) $218.63 <br /><br />Total Depreciation: <br /><br />Book Value of Desk: $1,316.87 <br /><br />Desk Sales Price:_ <br /><br />Gain on the Desk Sale:$483.13 <br /><br />Why is it a gain? Review the above definition. The sale price exceeds the book value. All this may seem like 2+2=4 to the experienced person, but for newbies it may be helpful to review the underlying concepts. In my course, I like to encourage students to think of these accounting events in terms of what actually took place physically. For instance, you bought a desk and used it for three years. You did not deduct the entire desk the first year you bought it. As a matter of fact, you only deducted an expense of $357.25. During the next two years you only deducted $830.88. Therefore, your fixed asset, called a desk, has a remaining cost basis of $1,316.87. Since you sold that asset for more than your cost basis, you incurred a gain. The Internal Revenue Service requires that that gain be reported as income and taxed accordingly. <br /><br />On the other hand, had the sales price been only $800, then you would have incurred a loss of $516.87. This makes sense, because your cost basis was $1,316.87 and you only received $800.00 when you sold it. Therefore, the money you lost on the sale is a cost of doing business, and according to U.S. tax law, a deductible item. <br /><br />So be careful when selling an asset. You don't want to report more income than is necessary, nor do you want to lose the benefit of a deduction. That is, unless you don't mind paying extra taxes to the government. <br /><br /><br /><strong>About the Author</strong><br />John W. Day, MBA is the author of Real Life Accounting for Non-Accountants, an online course in accounting basics. He has written 3 e-Books pertaining to small business accounting and writes a monthly newsletter on accounting issues.</span></p> <p class="MsoNormal"><span style="font-size:10pt;font-family:Arial;">Article Source: www.businesshighlight.org</span></p> <p class="MsoNormal"><span style="font-size:10pt;font-family:Arial;"> </span></p> </article> <article> <h1>Organizing Your Business Accounting System</h1> <p>MySolutionSpot Editor — Sat, 12 Jul 2008 03:39:20 GMT</p> <p class="MsoNormal" style="margin: 0in 0in 0pt; line-height: 12.75pt; mso-outline-level: 2; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto;"><span style="font-size: 10pt; color: black; font-family: Arial;">Many small business owners wonder if accounting is a necessary evil. Those who run the accounting system speak a language of credits and debits. Most business owners feel they can not speak this language. An efficient accounting system contributes to overall profitability.<br /><br />An accounting system is for communication. The system produces information that tells specific things about the company. An accounting system provides the information to run the company, at the owners fingertips. The system includes accounts receivable, accounts payable, order entry, inventory control, cost accounting, payroll and fixed assets accounting.<br /><br />The general ledger shows transactions in four different categories. These categories include the account assets, liabilities, income and expenses. Entries are posted to each and summarized. The summary is then sent to the general ledger for posting.<br /><br />It is best to organize your business accounting system by function. From an internal control, it is best not to have one person do all the functions. Fraud and embezzlement are possible if too few people are doing all the accounting. An internal control structure helps mitigate risks through mechanics and procedures.<br /><br />The type of information needed from an accounting system should be accurate, fulfill managements needs and be easy to use. As well as accuracy, relevancy and simplicity an accounting system should be set up so that it does not require an inordinate amount of time to maintain. The accounting system should be easy enough to understand so that a CPA is not required to operate it or interpret its output. <br /><br />Some automated accounting systems require knowledge about computers and accounting. If you are thinking about one of these systems, make sure that the people running it have the ability to install and operate it. It is best to get a package that works well with your firms capabilities. Also, the automated package needs to be able to work on the computer equipment you currently have or will be purchasing in the near future.<br /><br />A business cycle is a flow of transactions needed to complete a sale and collect the proceeds. In setting up an accounting system you need to know what types of accounting transactions are involved and what entries are to be made along the way. Most company cycles follow these steps, purchase raw materials, enter them into the inventory, begin the manufacturing process, enter goods in the process inventory, pay suppliers and employees, complete the manufacturing process, enter goods into the finished goods inventory, sell the inventory and collect payments.<br /><br />When purchasing an accounting system you need to figure who is going to do what in the system. It is best to assign the person who is most familiar with the system to be in charge of it. If you are just starting a business you will need to know the background of your new employees. At least one of them should be able to run the system. You might want to consider having them interview with an accounting expert, check their references from past jobs and ask them accounting questions. It is your company and you need to do everything possible to protect it. </span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; line-height: 12.75pt; mso-outline-level: 2; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto;"><span style="font-size: 10pt; color: black; font-family: Arial;"></span></p> <p class="MsoNormal" style="margin: 1.5pt 0in 7.5pt 7.5pt; line-height: 12.75pt;"><strong><span style="font-size: 10pt; color: black; font-family: Arial;">About The Author--</span></strong><span style="font-size: 10pt; color: black; font-family: Arial;"> <strong>Obinna Heche. Los Angeles - California</strong> Delivering the best home based business ideas and opportunities so you can work at home successfully.. <a href="http://www.home-incomeportal.com/">http://www.home-incomeportal.com</a> </span></p> <p class="MsoNormal" style="margin: 1.5pt 0in 7.5pt 7.5pt; line-height: 12.75pt;"><span style="font-size: 10pt; color: black; font-family: Arial;">Article Source: <a href="http://www.articlesisland.com/profile/obinna-heche-1068.html"><strong>Articles island - Free article submission and free reprint articles</strong></a></span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="font-size: 10pt; font-family: Arial;"> </span></p> </article> <article> <h1>Collection Agencies -- Not Just for Big Business</h1> <p>MySolutionSpot Editor — Sat, 12 Jul 2008 03:39:20 GMT</p> <p class="articletext2">One of the reasons small businesses write off a great deal of loss is that they don't realize how easy and affordably it can be to hire collection agencies to recover bad debt. Developing a success-driven mindset and taking action like your larger competitors is the first step to growing your business. Many of today's collection agencies are small business friendly and can improve your company's bottom line drastically with smart solutions for collecting bad debt.<br /> <br /><strong> Look for collection agencies that offer several collection tier levels</strong><br /> Small businesses often don't utilize collection agencies like their larger competitors because they feel the debt owed may be insignificant to large collection agencies. Small businesses should look for collection agencies that offer different collection amount tiers. Debts as low as $1000, regardless of the size of the contacting business can be easily recovered by collection agencies. <br /> <br /><strong> Verify that the collection agency uses legal collection methods</strong><br /> The days of collection agencies harassing friends and family and calling late at night in an attempt to collect unpaid debt is long gone. To comply with today's regulations, collection agencies must adhere to strict laws that require them to use more brains than brawn in an attempt to collect debt. Check to make sure that the collection agencies you're considering belong to either the International Association of Commercial Collectors or the American Collector's Association. Admittance to either requires that collection agencies adhere to the legal standards and ethics of third party collection agencies. <br /> <br /><strong> Collecting the debt yourself verses contracting a collection agency</strong><br /> First party collectors (i.e. business owners) are not bound by the same set of federal regulations when it comes to collecting debt. However, attempting to collect debt if not handled properly can result in poor client relations at best and a hefty fine at worst. A systematic, proactive first party collection approach works well for the first 30-60 days of delinquency. If the client hasn't paid by that point, you're at risk statistically for losing a substantial part of the balance.<br /> <br /><strong> A timeline of diminishing returns</strong><br /> Statistically, the longer a debt becomes overdue, the less likely that you will ever recover the full amount from the customer. Figures from collection agencies show that after 3 months of non-payment you can expect about a 73% return on every dollar, 50% on every dollar after 6 months, and 25% after one year. If you've got bad debt that's piled up over long periods of time, your time may be better spent by hiring a collection agency to recoup some of your old debt and implementing a plan to prevent new bad debt. <br /> <br /><strong> Partnering with a collection agency</strong><br /> Some collection agencies offer an accounts receivable management program to help businesses manage their AR effectively. With this service, collection agencies print and send letters on your letterhead, contact clients under your name, handle disputes, and send the payment directly to your company. Most business owners don't enjoy trying to track down their payments. It's draining, frustrating, and most would rather spend their time working on creative ways to bring in new clients. For collection agencies, securing payments is what they do best. <br /> <br /> Small businesses, perhaps more so than their larger competitors, can't afford not to have a solid plan for collecting bad debt. Small businesses often operate on much tighter budgets and just one or two delinquent accounts can stop a small business in its tracks. Fortunately, modern collection agencies are small business friendly and are often just what small businesses need to become more profitable and take their business to the next level.</p> <p class="articletext2"><strong>About The Author--</strong> Ruben Soliman is a freelance copywriter. For more information about what a <a href="http://www.aabusa.com/">collection agency</a> can do for you, visit <a href="http://www.aabusa.com/">www.abusa.com</a>.</p> <p class="articletext">Article Source: <a href="http://www.articlesisland.com/profile/ruben-soliman-310.html">Articles island - Free article submission and free reprint articles</a></p> </article> <article> <h1>Selling Your Business - A Tool to Reduce the Tax Bite</h1> <p>MySolutionSpot Editor — Sat, 12 Jul 2008 03:39:20 GMT</p> <p>"I would rather expire at my desk than to sell my business and pay Uncle Sam one dime in taxes." How many owners that have paid their fair share of taxes for twenty years of building their business feel this way? The tax bite is the single biggest factor in an owner's reluctance to sell his/her company. I have previously written articles discussing various aspects of transaction structures to minimize taxes. As a result, I am often contacted by a panicked seller that is a week from closing his business sale as he looks in disbelief at his accountant's spreadsheet detailing the tax burden of his impending sale.</p> <p><br />Recently, the seller of a Sub Chapter S Corporation with an $8 million transaction value contacted me. The tax basis was below $200,000 and $4 million of the transaction value was the assumption of debt. When the dust settled, he was looking at a capital gains tax liability of a staggering $965,000 while only receiving the remainder of proceeds after the assumption of debt. The assumption of debt is considered as part of the capital gain for tax purposes.<br /><br />The owner sent his accountant's spreadsheet to me and since I am not a tax accountant, I sent it to my tax wizard at BDO Seidman. He found a few small tweaks, but said that there was not much that could be done from an accounting standpoint for this owner. When I reported this back to the seller I could feel his disappointment and frustration.<br /><br />So I began my quest for a better solution. After several dozen phone calls to my professional network, I was directed to a little known vehicle called a Private Annuity Trust. This vehicle has passed the scrutiny of the IRS and the Tax Court. It is not a way to avoid the payment of taxes, rather a method of deferring them with substantial economic benefit to the owner's beneficiaries. Below is a simplified description of the process. As the owner contemplates the sale of his business (or any highly appreciated asset for that matter) he "sells" it to a trust PRIOR to its ultimate sale. This trust purchases the asset at FMV and exchanges an annuity payment stream complete with IRS life expectancy tables and interest rates. The trust then sells the company to the buyer to fund the annuity. The transaction is accompanied by a gift to the trust in the amount of 7% of the face value of the annuity. This is so it qualifies as a trust by creating an entity with economic value. Remember, the private annuity is viewed as having zero economic value because the asset minus the obligation theoretically equals zero.<br /><br />The trust is in the name of the owner's beneficiaries and all aspects of the trust are controlled by the trustees/beneficiaries and not by the owner. The trust for the benefit of the heirs owns the assets and owns the annuity payment obligation. The trust can be structured to defer the annuity payments for a period of time to coincide with the owner's need to receive these payments, lets say, for example, ten years. During those ten years the trust's investments or a commercial annuity grow without incurring a tax bite for the business sale. When the annuity payments start, the owner is taxed at his then current tax rate for the portion of the annuity payment attributable to the capital gains, his basis (no tax), and depreciation recapture from the sale, and the income produced from the annuity. The annuity pays the owner and spouse this annuity payment until last to die or until the annuity investments run out. If the owner and spouse die, any remaining assets are transferred to the beneficiaries outside of estate tax liability.<br /><br />If your investments perform at the rate used in the annuity calculation and the last to die lives to their exact life expectancy, theoretically the trust value will be whatever the gift portion (7% of the selling price) has grown to. However, if the investments do very well and you outlive the life expectancy tables, you could receive payments well in excess of the original annuity face value. Those excess payments would be taxed at your then current income tax rate. If the investments do well and the value grows above the required annuity reserve amount, the excess can be distributed to the beneficiaries as income.<br /><br />In the simplest of views, this acts like an IRA. You are not currently taxed on the amount you put in, it grows tax deferred and you pay taxes upon distribution, hopefully at a far more favorable tax rate. In the case of the frustrated seller from above, what if he deferred all payments by ten years on the full sale price and the $965,000 in capital gain taxes owed? He had a life expectancy of 20 years beyond the start of the distributions. The $965,000 that he did not pay in taxes grows at 7% to $1,939,323 by the time distributions start. Every annuity payment contains a portion of the capital gain or 1/20th of the total capital gain annually. Therefore, the bulk of the resulting investment value of the capital gains tax deferral provides huge returns for years to come.<br /><br />If it seems too good to be true, remember it is tax deferral and not tax avoidance. The owner has sold his business first to the trust in return for an annuity payment stream. The owner cannot control the trust. To the extent that the owner wants immediate access to some of the sales proceeds, he would pay all taxes in proportion to the amount he is receiving. In cases like the one above, this tax deferral tool can have a dramatic impact on the financial status of the owner and his heirs by allowing the tax deferred funds to compound for many years before their ultimate distribution and the payment of any tax. <br /><br />David Kauppi is business broker with Mid Market Capital, Inc. MMC is a merger and acquisition firm specializing in providing intermediary services to entrepreneurs and middle market corporate clients in a variety of industries. The firm counsels clients in the areas of merger and acquisition, divestitures, succession planning, valuations, and exit planning. Dave is a Certified Business Intermediary (CBI), a licensed business broker, a Certified Estate Advisor (CEA), and a member of IBBA (International Business Brokers Association) and the MBBI (Midwest Business Brokers and Intermediaries). Contact Dave Kauppi at (630) 325-0123, email davekauppi@midmarkcap.com or visit our Web page www.midmarkcap.com</p> <p class="MsoNormal">Dave Kauppi is a Merger and Acquisition Advisor with Mid Market Capital, Inc. MMC is a business broker firm specializing in middle market corporate clients. We provide M&A and divestiture, succession planning, and valuations. Dave is a Certified Business Intermediary (CBI), a licensed business broker, a Certified Estate Advisor (CEA), and a member of IBBA and the MBBI. Contact (630) 325-0123, davekauppi@midmarkcap.com or www.midmarkcap.com.</p> <p class="MsoNormal">Article Source: www.businesshighlight.org</p> </article> <article> <h1>Payroll Services Offer Affordable Accounting Experts for Small Businesses</h1> <p>MySolutionSpot Editor — Sat, 12 Jul 2008 03:39:20 GMT</p> <p class="MsoNormal" style="><span style="font-size:10pt;color:black;font-family:Arial;">The smart business owner strives to spend his or her time working on business rather than in the office handling daily operations such as payroll.<br /><br />A payroll service can help any size company but especially a small business or medium one because this is a job that can be outsourced to experienced, qualified professionals, saving you precious time to work on revenue producing activities.<br /><br />You can choose to spend less time consumed with these in-office tasks and more time concentrating on your customers for real revenue and growth.<br /><br />Hiring a payroll services company is not just hiring someone to do all of the calculations for you. Yes, accuracy is very necessary in calculations such as ...<br /><br />* Checks and Direct Deposit<br />* Remittal of federal and state tax withholdings<br />* Remittal of federal and state unemployment taxes<br />* Tax Liability<br />* Time and Attendance<br />* Deductions<br />* Preparation of state unemployment forms<br />* State and federal tax reconciliations<br />* Preparation of W-2's, W-3's, 1099's and 1096's<br />* Notification of all tax payments and filings due to local, state and federal authorities<br /><br />But when you are considering a task which is so critical to the smooth operation of your business, you will also want to consider the experience of the payroll solutions firms.<br /><br />Their attention to detail, response time to your questions, and excellent service are important factors when considering outsourcing. In hiring a firm, you are paying someone to help make your workload lighter. You certainly want to spend your money with accountants who will answer your calls promptly, who will understand your industry, and keep your accounts efficient and up-to-date.<br /><br /><b>Online Convenience ...</b><br /><br />An efficient payroll service can address your business' specific needs quickly and conveniently through the use of technology. Accountants with direct online access to her clients' reports eliminate time lost waiting for the client to send reports.<br /><br />The Internet allows clients and their employees access to their payroll from anywhere in the world.<br /><br /><b>Small Business, No Problem ...</b><br /><br />Another consideration is if they offer an online accounting product that can be utilized by big and small business alike. This is especially important to consider for potential growth of your company and of your payroll demands.<br /><br />A simple tool for a small business owner is one that allows him to enter the employees' hours online and submit to the service for checks to be printed and delivered.<br /><br />Using the services' easily adapted online product, larger companies can choose online options to:<br /><br />1. enter time and attendance<br />2. add and terminate employees<br />3. change deduction information<br />4. cut manual checks<br />5. calculate gross-to-net wages<br />6. print, email, or export reports by any date range.<br /><br />With a great online product, a payroll service can allow employees to go online and view check stubs, history, or request changes.<br /><br />Your accountant specialist should offer<br /><br />* personalized service with advanced technologies<br />* personal care for your specific needs<br />* availability to answer your questions<br />* prompt information about all of your account's activities.<br /><br />With these services you can be free to pursue money making opportunities for your company growth and remain knowledgeable about your payroll. </span></p> <p class="MsoNormal" style="><span style="font-size:10pt;color:black;font-family:Arial;"></span></p> <p class="MsoNormal" style="><b><span style="font-size:10pt;color:black;font-family:Arial;">About The Author--</span></b><span style="font-size:10pt;color:black;font-family:Arial;"> (</span>astratton) <span style="font-size:10pt;color:black;font-family:Arial;">Servicing businesses nationwide, and based in <a href="http://www.payrollrx.com/">New Orleans, payroll service</a> from Payroll Rx, is specialized for medium to small business payroll. On time, easy to understand and personalized for you. They have a plan for every size business and every payroll need for companies nationwide. <a href="http://www.payrollrx.com/">http://www.payrollrx.com/</a> </span></p> <p class="MsoNormal" style="><span style="font-size:10pt;color:black;font-family:Arial;"></span></p> <p class="MsoNormal" style="><span style="font-size:10pt;color:black;font-family:Arial;">Article Source: <a href="http://www.articlesisland.com/profile/astratton-1195.html"><b>Articles island - Free article submission and free reprint articles</b></a></span></p> <p class="MsoNormal" style="><span style="font-size:10pt;font-family:Arial;"> </span></p> </article> <article> <h1>Deciding Between Bookkeeping Software and Bookkeeping Services</h1> <p>MySolutionSpot Editor — Sat, 12 Jul 2008 03:39:20 GMT</p> <p>Every small business is required to keep bookkeeping records to produce at the end of the financial year a set of accounts to show the sales income, business expenses and the net profit for tax purposes. Medium and larger businesses employ accounts clerks, bookkeepers and accountants to maintain the financial records and produce regular accounting information.<br /><br />Small businesses and in particular self employed business have a choice in how the financial accounts are prepared and produced. A small business may employ the services of a bookkeeper to produce the accounts while another similar business may keep a manual record of financial transactions while a third option is to use a bookkeeping software system.<br /><br />There are several advantages and disadvantages to whichever course of action a small business may take to produce the financial accounts and at the outset it is better to make a definite decision on which route to take. Financial accounts, financial control over the business activities and the knowledge of how well or badly the business is performing is crucial to success in the business environment.<br /><br />The underlying necessity is that if the small business does not take a decision on its financial accounting then at the very least it must accumulate documents of prime significance such as sales invoices, purchase invoices and possibly bank records during the financial year and assemble these into some sort of order after the end of the financial year for tax purposes. Failing to keep financial records often results in a succession of administrative burdens and often also leads to financial penalties if taxation deadlines are not met.<br /><br />If the small business owner chooses not to go down the route of using bookkeeping software or outsourcing the financial function to a bookkeeper or accountant then manual financial records must be kept. Producing an income and expenditure account for the business using the prime financial documents of business is not rocket science and most businessmen capable of running and managing a business have the skills required to producing the bookkeeping records.<br /><br />The major disadvantage of a small business keeping manual records is that documents get lost which may result in profits and taxes being over declared, fines and penalties through inaccuracies and often when accounting is produced in this way it is done at the end of the financial year purely for tax purposes rather than as an essential tool of the business and that reduces financial control within the business during the financial year to a minimum and often zero.<br /><br />If a manual bookkeeping system is adopted then disciplined recording of the financial information on a regular basis should be enforced and regarded as an essential function and not an administrative burden. The main purpose of regular accounts being to both see and understand the financial position of the business and take positive action as required at the earliest opportunity to achieve a satisfactory financial result.<br /><br />Other alternatives include utilising bookkeeping software which is effectively often a manual system in itself but within definite parameters to produce the essential information. A bookkeeper might be employed whether a manual system is used or bookkeeping software adopted.<br /><br />Using bookkeeping software has many advantages. First of all any small business that has purchased bookkeeping software is more likely to keep regular up to date accounts than one that has not. And secondly the bookkeeping software is likely to provide a fixed set of disciplines and produce the type of records a small business requires for both the preparation of regular financial statements and the end of year tax returns.<br /><br />Another major advantage of bookkeeping software is that records tend to be less likely to be lost or mislaid; the packages can be backed up as required but essential financial performance can be improved by greater financial control. All businesses work towards producing a satisfactory bottom line and only by producing regular financial statements can the business obtain the earliest information to achieve that satisfactory performance.<br /><br />Bookkeeping software comes in many different formats from simple spreadsheets to more complex data based accounting software. For a small business the bookkeeping software of choice is often a simple system requiring limited accounting knowledge but must also be a package that produces the desired end result.<br /><br />The worst bookkeeping software is a complex program requiring prior accounting knowledge that the small business either does not fully understand, cannot be bothered or does not have the time to learn and having tried the system then abandons it. Such a process just causes frustration and time to start again with a different solution.<br /><br />Bookkeeping software in effect automates the manual keeping of financial records. To get the most benefit from a bookkeeping software package each small business should prepare regular financial records to enhance and improve financial control, take financial decisions and achieve the desired bottom line result.<br /><br />Bookkeeping can be outsourced to an accountant or bookkeeper and there advantages in doing so. The financial records are generally maintained in good order and regular financial reports produced. If the small business has a volume of paperwork that becomes a burden to process and keep on top of then a bookkeeper may be the best solution.<br /><br />Employing a bookkeeper becomes essential when the paperwork burden reaches a stage when it distracts the small business owner from getting on with the main task of operating the business. A bookkeeper has to be paid and that cost should be viewed as the cost not of producing the financial records but as the amount to be paid to release the time of the small business owner and also to produce the financial statements on which action can be taken to improve profitability.<br /><br />A major disadvantage in using a bookkeeper is that the small business owner may remove themselves from the detailed records. By producing the accounts themselves the small business owner sees every financial transaction at least twice, once when the transaction is carried out and again when it is entered into the financial records.<br /><br />This second view of the accounts can be important, errors in management judgement can be noted, mistakes and bad practises become more apparent. Missed documents are much more likely to be noticed if the small business owner produces his own bookkeeping records than if the task is carried out by a third party such as an accountant or bookkeeper. Nobody knows the business as well as the small business owner knows his own business.<br /><br />The conclusion and decision each small business should take is doing something. A manual bookkeeping system may suffice but the business may be better served using bookkeeping software to increase financial control and performance. If the administrative burden of maintaining the paperwork detracts the small business from its main operations then an accountant or outsourced bookkeeping services is a logical solution.</p> <p class="articletext2"><strong>About The Author--</strong> Terry Cartwright a qualified accountant at DIY Accounting in the UK designs <a href="http://www.diyaccounting.co.uk/">Accounting Software</a> on excel spreadsheets providing complete <a href="http://www.diyaccounting.co.uk/selfemployed.htm">Small Business Accounting Software</a> solutions with single and double entry <a href="http://www.diyaccounting.co.uk/bookkeeping.htm">Bookkeeping Software</a> for both limited companies and self employed business</p> <p class="articletext">Article Source: <a href="http://www.articlesisland.com/profile/terry-cartwright-3299.html">Articles island - Free article submission and free reprint articles</a></p> <p class="MsoNormal"> </p> </article> </main></body></html>