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Avoid Business Failure Due To Insufficient Funding

Many businesses fail as a result of insufficient funding. Over investment or loaning too much money into the business is not necessarily the answer either, but a business without sufficient funds can only fail, everually. The guidelines in this article / tutorial explain the steps to take to prevent under funding a business at its sunset and during its active life. The same guidelines can be followed when a business runs out of cash flow and when you may want to grow the business further.

Under-funding, or too low a capital investment by the owners or directors, always leads to failure, especially when funds can not be raised to float the cash flow required to operate the business adequately to produce profits and positive operating results.

Raising further funding can be complex, it is better to fund a business from your own funds for as long as possible to keep the business afloat during tough times and until it can fully stand on its own and float itself. A couple of golden rules need to be applied when starting a new business and when expanding a current business.

  • Make sure that your business plan is watertight, and that it is also realistically achievable at the same time.
  • Make sure that you put enough money into the business at the outside to keep it running for six months before showing a profit. This is because new businesses, especially, can easily take up to six months, sometimes longer, before they start to produce meaningful profits and the required cash flow. It takes time to establish a firm place in the industry or market of your business; very rarely can one hit the jackpot immediately. This is only possible if your product or service is scarce in your area.
  • Keep tight control over purchases and expenditure from the first day. Keep cross checking to the budget and the business plan.
  • Golden rules Follow to apply when purchasing a business, or a going concern.
  1. Have a qualified accountant analyze the most recent audited and certified financial statements of the business that you want to buy
  2. Ensure that all the statutory returns (taxation, regional and local authorities, employment office, etc.) have been submitted and are paid up to date.
  3. Make sure that your accountant drafts a valuation of the business from his analysis of the financial statements. He must establish whether the business is actually worth the price being asked for it. Does the price fully represent the value of the assets as shown in the balance sheet.
  4. The accountant must make sure that the royalties, if any, are worth what they are stated at in the Balance Sheet.
  5. Establish whatever the value of the Goodwill, if any, is truly representative of the customer base, or whatever the goodwill figure may represent.

This type of business collapse and failure does not need to happen to anyone, especially if these basic guidelines are followed. Wishing you every business success. …

The Importance of Business Financial Analysis and Management

Planning and Control are the two most important ingredients to a Successful Business. A Business Plan takes most of the guess work out of Business Strategy and Control through solid Financial analysis. Financial Data provides a way to gauge where you are in your Strategic Plan, telling you where changes in your Plan are necessary. Because of this, Financial Data Analysis and Management are vitally important to running a successful business.

It is extremely important to have a suitable Accounting System installed throughout your business so data acquisition is easy. You cannot manage your Business for Profitability without a good Accounting System. My CPA has a bookkeeper who comes out to the business to help install the Accounting System and show us how to work it. All of this is done with the guidance of the CPA but at a fraction of the cost. A good Bookkeeper is invaluable in helping capture Financial Data. Having an established working Accounting System in place will minimize the fees a CPA charges to analyze your tax liability and prepare your tax returns.

An Accounting System is typically built around the following key Financial Management tools:

– Income Statement (Profit & Loss Statement)

– Cash Flow Statement

– Balance Sheet

– Budget

– Breakeven Analysis

By having a Financial Management system in place, you can easily identify early warning signs or spot particularly profitable areas. Not having a system in place to analyze and organize Financial Data makes it impossible to effectively manage, grow and control a business. It makes it impossible to gauge the success (or lack there-of) of your Planning and Strategy. Moreover, used incorrectly, inaccurate Financial Data can be disastrous for a company’s livelihood.

An Accounting and Financial Management System is only as useful as it is used systematically throughout an entire business. It is extremely important to implement the system into the very fabric of the business and be used systematically. The Accounting System is a reflection of the health, or lack thereof, of a business and from which business decisions are made. Make sure to set it up right, train your people on it and most importantly, use it!

Two principal objectives of any business are to be Profitable and have Cash Flow to pay obligations. The Income Statement and Cash Flow Statement figure prominently in this area. The Income Statement represents how well a Company is operating, and the Cash Flow Statement shows how well a business is managing its Cash. Profit or Loss on one side and Liquidity on the other.

The trick is to find a good balance between Profits and Liquidity, which when not well planned for, can be very difficult to maintain. Fast Growth with high profits can drain the liquidity of a business, so being Profitable is no guarantee you’ll stay in business. The role of the existing and projected Cash Flow and Income Statement is to help you identify problems areas so you can effectively plan for them, such as raising more …

Identity Theft – 5 Ways to Protect Your Identity

The information age has brought numerous innovations and advancements to our daily routine. Cell phones, computers, and the Internet have made many of life’s challenges easier and more accessible. However, just like every other moment in our collective history, new advancements offer opportunity for those who seek to harm you or steal from you to get at your money or your most private possessions, in this case, your identity.

So what is identity theft? Identity theft is the process of someone using an identity that is not their own for any type of service, transaction, or notification. Sounds fancy huh? Let’s break it down. If someone pretends to be you in order to buy, sell, claim, announce, advertise, promote, or steal then they are committing identity theft. Identity theft is more than just someone who stole your password to your Yahoo e-mail; it is a frustrating experience that often leaves the victims feeling hopeless and clueless on how to regain their identity, not to mention how to protect their assets. They can use your identity to open up a phone account in your name, defame another individual, or the dreaded credit card account in your name.

Let’s be clear here, identity theft is NOT a product of the information age, rather it has been accelerated because of the information age. Also, identity theft has proven successful for the scam artists out there. If stealing people’s identity wasn’t working for scam artists, then it would have faded away like other social fads. You must be proactive in protecting your identity, and if you find out that you have become a victim of identity theft, you must be prepared to fight long and hard to clean up and restore your good name. Don’t think identity theft is real enough for you to be worried about it? Consider this, 1 out of every 20 people is a victim of identity theft. Here are 5 proven tips that can help you fight off identity theft.

1) Dumpster diving – Identity thieves will often get your personal information by going through trash and other disposed items. It is probably one of the most common and easiest ways for identity thieves to steal your information. However, this threat can be eliminated with a little bit of due diligence. Buy yourself a paper shredder, and shred any documents you get in the mail that have any personal information on it. This includes your name and address. If you are internet savvy, you can stop financial statements from being delivered via the mail, like bank statements and utility bills. Check your mail regularly each day and send financial mail via the post office directly or drop off boxes, not from your mailbox. In other words, don’t put checks in the mail using your mailbox, scammers have been known to drive around and collect these personal identification items. Also, if you all of a sudden begin receiving no mail for several days in a row, you may have had …

Making Money on the Internet Means Mastering Internet Relationships

Are you intent on making money on the Internet? You're not alone. Every day, 175,000 people look for ways to use the Internet to achieve their dreams of working from home. In one sense, that's very good news. It is further proof that working from home is a viable alternative to the Rat Race. On the other hand, it means you've got a lot of work ahead of you if you'd like to stand out from the crowd and achieve a following. It means you can not just slap up some links or hold out a webpage and hope to be successful.

These days, people are looking for connection. They want to know the people they're doing business with. They want to know that they can trust you. They want to like you. They want to know what you're about and they want to feel like you know what they are about. They want to feel like you care about them and their needs.

Social media marketing can help with this, but using social media is only the first step. Here are some other things you can do to help forge relationships on the Internet.

Use Your Photograph. Do not use a logo. Use a clear face shot with you smiling. Make sure you're wearing something appropriate. A photo with you and your spouse or your kids is okay, except that social media photographs are very small and the more people you crowd into one of them the less probably it is that people will be able to see your face. When you use your own face you remove much of the fear that you're not who you say you are. Most scammers and spammers hide behind false names and do not want to go giving their photograph out. Showing yourself for who and what you are can go a long way towards removing the "walls" people put up when potential sales are about to happen.

Use Video. Video can be scary, especially if we do not like the way we look or sound on camera. But video conveys some immense advantages. Number one, it goes even further further ensuring that people know they're dealing with someone real. People will forgive your wrinkles, your high pitched voice, and the spare tire around your waist if you are likeable, delivering good information, and above all, real. Pictures, after all, can be faked too. Sometimes people just use stock photos. But video is harder to fake in that fashion. Beside, we are a television generation, conditioned to believe anyone we see in any kind of video or television-style clip is automatically more important or trustworthy. Video conveys a psychological edge as well as a content edge.

Stay Responsive. If people e-mail you or message you, then you should always take the time out to respond to them. Otherwise they will feel as though you are ignoring them in a very response-oriented forum. Once they develop that feeling, they will decide you were …

How to Make Money Online – Where to Start?

Have you decided that there must be easier ways to make money than working day in, day out, 5 or 6 days a week? You typed in "How to make money online", or "Ways to make money on the internet".

Google gives you hundreds of pages with article websites, dedicated websites to making money and hundreds of ads on the side, promising to make you $ 100,000.00 in one month. There is almost too much information out there. AHHH where do you start?

After much searching and looking and trying different methods, I have decided that the best way to begin making money online is by affiliate marketing. This involves finding products people are selling, promoting them and receiving a commission on the sale. This way you do not need to handle stock or have expensive overheads, and yet make sure a lot of money.

Affiliate marketing can still be quite confusing and if you are not careful, you can spend hundreds of dollars without making a thing. To get your head around the basics of how to be successful, and put your efforts into the right areas, I would recommend investing in a course which steps you through how to start, what to do first, what to do next etc. A big bonus of doing this will be that they tell you the things to avoid, and how to stop wasting money on advertising which will not make you money. I wasted a lot of time and money when I began, trying to work it out myself.

Ok, so we have decided to do affiliate marketing, and now we will pay some money to learn how to do it, which one do you buy? A search on Google will give us another huge list of sites promoting to make us thousands in a day, or hundreds of thousands in six months. Which one do you choose to help you make money online?

Here are some pointers to look for when you visit these websites, which will hopefully help you to make a good choice when deciding on an affiliate marketing course.

1. Have they put their face to their website? – A site which offers a training package should at the very least prove that they are a real person, not someone trying to grab your money.
2. Are they charging a once off, or a monthly fee? – A course on how to make money online should only charge once for just providing information. If they are also providing another service, then it may still be worthwhile. There are programs out there which will provide product finding, keyword tracking, website hosting and results tracking as well as training.
3. Some training providers will offer bonuses and free information for joining. – This at least shows that they have information and are willing to give something, not just take.
4. Have other people used it and been happy? – Testimonials show that someone has used the training and been …

Grading President Obama’s Job Speech – What He Said Vs. What He Should Have Said

Last week the nation tuned into President’s Obama’s much hyped job creation speech to see if there would be any worthy ideas to try and break the constant high unemployment rate int he country. Would he be bold and innovative or would it be the same basic, tired political tactics that have been tried and have usually failed to live up to expectations?

The following discussion will compare what the President should have said and what he actually said. Unfortunately, the bottom line is that from a boldness, innovation, and courage perspective, the President came up well short of the goal line.

1) Infrastructure

As expected, the President did state that he wanted money and funding for infrastructure jobs to fix roads, bridges, dams, schools, etc. that were in need of repair, something many Americans expected and were supportive of. However, the President’s proposal came up short in two areas.

First, infrastructure spending and work done via the economic stimulus bill was woefully inefficient. According to various Associated Press investigations, thousands and thousands of government contracts were granted without competitive bidding. Half of the bridges that were repaired under the stimulus program were not in need of repairs. Powerful individual politicians in Congress snatched their share of the stimulus money and directed it to their voters regardless of whether of not the spending was actually fixing a real problem.

Millions of dollars from the stimulus plan were granted to companies that owed hundreds of millions of dollars in back taxes. No where in the President’s jobs speech do we get firm assurances that these atrocities have been recognized and will not happen again. He states that the money will be properly spent but we were promised that in the economic stimulus bill. The only way to insure that this potential pot of money is well spent is to give the decision on what projects are done to the states via a block grant of money, taking Congress out of the decision process altogether.

Second, the President does not show any detail on how to pay for this increment Federal spending. He says he will unveil a plan within a week or so. Thus, his performance on this topic is an incomplete. He gave no indication of specifics like reducing the Federal payroll back to 2008 levels, terminating unwanted and unneeded military projects such as the Osprey, terminating corporate welfare programs, ending agriculture subsidies, and directing high speed rail line funding to shorter term infrastructure needs.

Grade: Incomplete given the unnamed ways to fund this infrastructure spending that will be forth coming. However, worries about whether this will be another waste of money spent on things that do not need to be fixed, given the economic stimulus program, and the fact that the President has not taken Congress out of the decision making loop, continue to exist.

2) Obama Care

According to many credible opinion polls, the majority of Americans realize that Obama Care is an unfolding disaster. It will screw …

Make Money Online For Free – 3 Easy Steps to Using the Power of Rapport

The single easiest way to make money online for free (assuming you have a product or service to sell) is to harness the massive power of rapport. Simply put, rapport is the art of relationship building. Make no mistake about it, it is powerful and lasting. And the best part of all is that it does not cost you a dime to implement!

In the real world, you would establish rapport with someone by smiling, making eye contact and calling them by their name. The more naturally you can do these things, the more people will be irresistibly drawn to you. Do not believe me? Give it a try for a while and you'll be convinced.

Online however, you do not always get the benefit of face to face communication, so it's necessary to build rapport a little differently. So, to build rapport just follow these 3 easy steps:

STEP 1: Use your prospect's name.

Even though you can not smile or make eye contact, you can still use a prospect's name. You can see this in action every time you see an opt-in form that requests for your email as well as your name. There is a reason most of them ask for your name. It's because it's an extremely effective rapport builder.

STEP 2: YOU, YOU, YOU instead of ME, ME, ME!

In all of your writing, remember to write in a conversational tone. This means to limit your usage of words like "I, me, my, mine …" Instead, try to structure your sentences to use "you and your" as often as possible. This gives your prospect the feeling of being in a conversation with you. You should aim to use "you" words at least 7 times as much as "I" words in your online communication. This is a big rapport builder. It builds trust, and trust is a necessary ingredient if you want to make money online for free.

STEP 3: Tell Stories

I remember reading about a guy who struggled to make any money at all online until he learned this simple concept. He realized that as he began to tell more and more stories in his writing, his relationships (rapport) with his readers grow stronger and stronger. Not only that, he began to experience a tremendous growth in his income as well. Everyone is touched by stories, so the better you become at meshing stories with your marketing message, the better your results will be.

This last technique is so effective that in some circles it is referred to as "story-selling". That should give you some indication of the ability of story telling to make money online for free.

In summary, make sure to use these 3 easy rapport building techniques if you really want to make money online for free. They just might be more powerful than anything you can buy to promote your business.

1. Use your prospect's name.

2. Use "You" instead of "Me".

3. Tell stories. …

Are Affordable SEO Services A Safe Option to Grow Your Business Online?

SEO is a long term collection of services which are used to boost your brand and ensure you are seen by the top search engines and your clients. It helps you move up the ranking in search results using a variety of methods from keywords to links. The problem is that many companies try and manage this on their own and it is a full time job that requires ongoing monitoring and amending to ensure that you are not compromised and drop in ranking at any time.

Can you afford it? This is the question on all companies lips, but the good news is that good quality SEO services can be affordable and they do not need to break the bank. That being said, as long as you feel confident with the internet marketing specialist you have chosen, then price will not be a factor at all. Most of the top SEO companies will provide you with competitive rates that you can manage into your marketing budget.

Even if you find affordable SEO services, you will want to ensure you are receiving the best quality service. The company you choose should have extensive industry experience of a minimum of ten years. They should provide a host of internet marketing solutions to assist you in achieving your online marketing goals.

They should have passion and this should shine through in the design of their website, the services they provide and how they treat their clients. A good sign is to identify the type of companies they have worked with. Maybe even go through some of their past work to identify if you feel they are passionate enough to push your brand forward in the future.

Any SEO services provider you choose offering affordable prices should have an outstanding track record. You mustn’t be shy to ask them about this and they should be more than happy to show you their statistics. You should be able to see the increase in their clients ranking over tie. Remember search engine optimization doesn’t provide overnight success, it is a long term project that will provide you with brand visibility, increased customer base and improved online revenue moving forward.

In addition to this, they should have a decent sized customer base. Don’t be put off when you hear an affordable SEO service provider has more than three hundred active customers. This should be a feather in their cap. There is a good reason why they have this many customers to start with. You can ask them about their own team size and how they manage the demand to ensure you receive the level of service that you deserve and expect.

Further, you will want to identify their customer retention rate. Another very important thing to take note of when making use of affordable SEO service providers. Ideally the company should have a very high customer retention rate of ninety nine, if not one hundred percent. This means that they are providing all those hundreds of …

Copyrighters and Trademarks – Does Your Business Need Both?

Protecting the intellectual property aspects of your business is a worthwhile investment. However, it is difficult to know what form of intellectual property works for what facets of your business. Let's take the time to break all that down.

Copyrights:

Copyrights can be obtained for things of an artistic nature. This includes, of course, poetry, films, sculptures, music, fiction, etc. But can also include things that may not necessarily seem "artistic" in the general sense of the word. Copyrights can also be obtained for advertising copy, games, software programs and blueprints, to name just a few.

To protect text as it appears on advertising copy, statements, pamphlets, brochures, online works, reports, etc. A Literary Works application would be filed.

To protect pictorial or graphic items such as technical drawings, posters, labels, games, etc. A Visual Art Works application would be filed.

Only a few items that could be protected by copyright are noted here so if you have other items in mind, please check with the US Copyright Office.

Trademarks:

A "registered trademark", or ®, referring to a name, slogan or logo that has been officially registered with the United States Patent and Trademark Office (USPTO). Registering a trademark is beneficial to a business because it publicly states that your trademark is registered with the USPTO and therefore, you have exclusive rights to that name within your industry.

Prior to investing your time, money & effort into a name, it is strongly advised that comprehensive research be linked to ensure that the name you're interested in is truly available.

This entailing searching the pending & registered Federal and State trademark files as well as the US National Common-Law files. Then, if clear, you can decide if you would like to file for a Federal or a State trademark. …

Tips to Choose the Right Business Insurance

Businesses can never be in a stable position. There might be times where one day the business might touch its peak and the very next day turns out to be a day of loss. So, newer companies and the huge companies are constantly becoming aware of getting their businesses insured. This step, they feel, will help to recover the losses and maintain stability in their day to day business processes. Here again, making the right choice for the business is an important step. If you are a potential owner of a company, the under mentioned steps can help you choose the right policy.

Compare Shops

The best way to find out what these insurance companies are offering is to compare their policies. Some of the things that are a must to be compared are price, deductibles, complaint ratios, coverage amounts, out-of-the-pocket limit, and the co-payments. The suitability of the coverage on the company has also to be taken into consideration.

Go Through Ratings

After you have compared the prices and all other aspects, it is time you go through the customer ratings of company. It can tell a great deal about the financial condition of the company. It is generally the ex-customers who have rated the company’s services. The better the ratings the more appropriate is the company to be chosen for achieving the business insurance policy. The ratings are available online. However, one can also research for them in a library or directly ask the members of the company.

Ask Questions

The business owners and the managers that are in the quest of shopping a business policy should have a lot of questions on their list. Through these questions, they would be able to get a detailed information about the company and its services. This will help them in making a learned decision while choosing the policy offering company.

Contact an Insurance Broker

The best thing perhaps to do for a company is to hire a broker for the business. The positive side is that the business owners will save a lot of time and their efforts into making a search. The broker, on the other hand, works for its clients and is said to be more informed and experienced working in the same field for several years. He, thus, suggests the best policy. They also maintain privacy for their client data.

Following the above-mentioned ways, a company can choose the best policy to insure itself. Being the owner or the manager of a company, it is necessary to take right call.…