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The projected sales for your business |
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The direct costs of sales, this includes the price of materials, components or subcontractors that are used to help create your final product |
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The fixed costs and/or overheads |
If your budget shows that you are making a profit, this is referred to as disposable income, and loss is seen as the amount that you are overspending. Upon completion of a budget, if you find that you are spending more than you earn, then action needs to take place, and you should either look to cut back on your spending, or find more sources of income. Additionally, your current budget may show a profit but you may want to increase that amount, and so again, the completed budget can help you see where you may be able to cut costs or further increase incoming funds.
Some quick budgeting tips:
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Maintain targets that your budgets overall aim is to ascertain - this acts as extra incentive to succeed. |
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Don't just keep with your original budget – reassess it every now and then, and alter it if necessary to reflect changes you feel are needed to improve its efficiency. |
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Having a budget is not all about sacrifice – if you save more than expected, or reach a goal early, treat yourself every now and then for all your hard work. |
If you don't already have a business plan it is a great idea to have one as it goes hand in hand with a budget. Creating a business plan is not just about writing a report. It is a process and a guide for you and the direction you envisage for your business. When producing a business plan you want it to be comprehensive, well researched and credible. To ensure this occurs it is essential to sit down and figure out what you want and need to get out of the business plan. A business plan should allow you to better establish projected sales, cost of sales, fixed costs and overheads.
Once you know the figures for the income and expenditure of your business, you should be able to work out how much profit your business is generating. A better understanding of your costs will make it easier to figure out work out ways to reduce them, as well as recognizing any cashflow problems. Monitoring cashflow throughout the budgeting period is also important as this can help you to be as prepared as possible for any large costs that may arise, either expectedly or unexpectedly, as well being able to see quickly and easily whether you have funds available for that new tool or resource that could further improve your business.
It is vital that you stick to your budget in order to manage your business' money; however it is also just as important to monitor it and keep it current. By reviewing and revising your budget when necessary your business will have a much better chance of staying on top of its financial situation and essentially, a better chance of success.
About the Author:
Here at The Quinn Group our experienced team of business accountants are able to help with setting up or reviewing a budget for your business. For more information on budgeting, creating a business plan or for any other accounting issue please submit an online enquiry.
Article Source: ArticlesBase.com
Credit Cards and QuickBooks, What Business Owners Need to Know
By Jed Totus
Owning and running a small business is a big job and managing the finances is a big task. Odds are if you run a small business you use credit cards to make business purchases and/or payments. Credit cards can be a good way to keep track of the everyday finances and using accounting software like QuickBooks makes credit card use even easier. This type of tool allows you to keep accurate financial records and makes tax time that much easier.
When deciding how to handle and record credit card payments within your QuickBooks file, you have some options. Credit card bills can be treated just like any other vendor and can be paid upon arrival of the statement. With the Write Checks function of QuickBooks, you can create a direct disbursement and pay off the entire balance each month when you receive the statement. If you pay the whole balance each month, this is the way to go.
If you prefer more detailed recording, the credit card bill can be treated as a liability and each individual transaction can be entered separately. This allows you to track each transaction as it happens and when the statement arrives, it is easy to reconcile the transactions with the bill and decided how much you are able to pay towards the credit card balance.
Within your chart of accounts you must have a separate account for each credit card. In QuickBooks, choose the "Credit Card" account type to create a new account for each credit card. Under the Credit Card account, subaccounts can be created for each individual credit card that you are using if you use multiple credit cards. An advantage of this type of setup is that QuickBooks can run balance sheet reports that give a total of all open balances.
As far as credit card charges, they should be treated the same as ATM transactions and entered as you go. These can be entered manually into the QuickBooks file or can be set up for online banking and transactions can be downloaded. Detailed information on how to download transactions into QuickBooks file will vary based on bank and the specific credit card company. To enter each charge manually the credit card charges window can be found under the Banking tab of QuickBooks. Whichever method you choose, it is imperative that charges are individually recorded. When tax time comes around, it is necessary for the company's expenses to be itemized correctly and individually. And, the Profit and Loss statement will be inaccurate if individual charges are not recorded properly.
Credit cards can also be used to pay vendor bills within QuickBooks. Under the Pay Bills window, the payment can be made and tracked which comes in handy when using online payment systems set up by the vendor or if the vendor has been given the credit card number directly for payment of the bill. Just be sure to record the payment once it is made so that the Accounts Payable balance will be correct.
Organizing business finances in a QuickBooks file is an important step to maintaining good financial health within your business. Making the time and effort to correctly handle credit card charges and payments from the start will certainly help with the headaches that can come when the numbers just don't seem to add up.
From the Author:
If you need QuickBooks help in San Antonio, Nancy Froelich is your best bet. She is experienced with San Antonio QuickBooks help and will be a worthwhile investment for sure. She can be reached at 210.525.1852
Article Source: ArticleRich.com
A Short Survival Guide for Small Business Finance
By Stephen Bush
This report is designed to serve as a short survival guide for business owners when they are seeking small business loans. The necessity of resorting to guerrilla loan tactics has been accelerated by the decreased performance of commercial banks in providing effective small business finance programs. Although the suggested actions in this article might be seen as a last resort to be undertaken only when all else fails, in reality these suggestions should probably be considered by most commercial borrowers in the early stages of their commercial financing search due to the growing failure of banks to provide a normal level of business funding.
Business Consulting as a First Line of Defense
To put it succinctly and candidly, the current commercial lending climate is no place for amateurs when dealing with more complicated small business finance programs and banks which predominantly are not functioning in a normal manner. The use of business consulting and a commercial finance expert should be considered as one way for business owners to overcome a substantial information gap. A business consultant experienced in the ways of overcoming small business loan problems is a pragmatic solution to a situation that most commercial borrowers would admittedly prefer did not exist in the first place. A business consultant with an appropriate level of expertise will normally require a business owner to pay a reasonable fee for their specialized services. This professional cost will typically be justified when compared to the potential financial damages if specialized help is not acquired.
Determine Whether Your Bank is a Good Bank or a Bad Bank
We have published a separate report about the growing need to determine if a commercial bank is a good bank or a bad bank. The most practical gauge for defining whether a bank is good from a small business owner perspective will often be guided by whether the needed commercial financing can be provided or not. Although banks have been broadly proclaiming that they are providing a normal level of commercial funding, in reality there are multiple reports indicating otherwise. An experienced business finance consultant can serve as a valuable resource based on their advanced knowledge of which lenders are truly active in making working capital loans and commercial mortgage loans. If a particular bank is in fact not providing commercial loans as usual, it certainly might be because they do not have sufficient resources to do so. While this bank might not feel they deserve the bad bank label, our perspective is that results count. On the only scorecard that matters to most commercial borrowers, the small number of good banks will gradually become obvious based on their healthy business lending habits. Business owners should not be surprised to discover that they need some professional guidance in finding the good banks and avoiding the bad banks.
Be Prepared to Fire Your Bank and Your Banker
For small business owners, the idea of firing their banker has perhaps not occurred to them yet. The average business owner often thinks of their banker as one of the family or at least a close business partner. But with a guerrilla business loan perspective that is appropriate in the midst of banking chaos currently seen almost everywhere, small business owners must increasingly look out for their own best interests because it is unlikely that their banker is up to the task anymore (even if their commercial banker is their best friend). One of the most predictive signs that a commercial borrower might need to fire their banker is an escalating number of times when their commercial banker is unable to achieve the results which were originally offered or discussed.
Business Cash Advances and Other Options for Working Capital
For small businesses to survive in an erratic economy, the use of guerrilla loan tactics means that some small business finance options which borrowers previously ruled out because they were considered too complicated (or too expensive) might deserve a second look. A merchant cash advance program (also referred to as credit card receivables factoring) is a key example of a commercial financing strategy which has frequently been a Plan B for many merchants but often not utilized in their final choice for acquiring more working capital. The use of credit card processing to obtain working capital cash now has more practical appeal for the typical small business owner who needs more cash for their daily operations, particularly if they have been subjected to an increased requirement for collateral and a sudden reduction in business lines of credit by their commercial lenders.
More Guerrilla Tactics for the Small Business Survival Guide
This brief discussion was intended to illustrate the importance for small business owners doing whatever it takes to survive in a tough business climate. The guerrilla loan tactics noted above will be a good starting point for most business owners. But there are more commercial loan options which should also be considered by commercial borrowers before finalizing their commercial mortgages, small business loans or SBA loan financing.
About the Author:
Stephen Bush is a business/government advisor and commercial mortgages expert. Steve has provided candid advice to business owners for more than 25 years => AEX Small Business Finance and Working Capital Management Programs
Article Source: ArticleRich.com
Sometimes new users of QuickBooks have questions about how credit card work in the software. Here are some helpful bites of information about this subject.
Aren't Credit Cards Expense Accounts?
No. In the Chart of Accounts, liability accounts represent amounts of money owed to others. Credit cards are liability accounts, because every time we use our credit cards, we owe money to the credit card company. One nice feature of QuickBooks is that it allows us to set up a special type of account for credit cards, called, not surprisingly, "Credit Card."
But make no mistake: this type of account is a liability, and not an expense. When you buy something with a credit card, you are paying for it with borrowed money, and the money is borrowed from the credit card company. This is why credit cards are considered liability accounts.
So When Are Expenses Recorded?
When using the credit card, the expense is recorded in the Record Credit Card Charges screen, in the lower half of the screen, in the Expenses tab. Let's say you went to Office Depot and bought some computer paper with your credit card. Two things happened when you did this:
1. You incurred an expense for Office Supplies
2. You went into debt to the credit card company
When using the Enter Credit Card Charges screen, both of these events are recorded on a single screen.
How Does This Relate to Double Entry Accounting?
This above transaction is an excellent example of double entry accounting. Remember this and it will help you a lot in QuickBooks: every transaction in QuickBooks is double entry - it records two events with a single transaction. If you grasp this, and understand what those two events are in each screen, it will save you a lot of time and trouble in the long run.
Credit Card Users, Credit Card Accounts. . . How to Set Up in QuickBooks?
Even if you have multiple credit card users for a primary account, my suggestion is to have a single account set up in QuickBooks for all users. An alternative is to set up sub-accounts under a parent account, one sub-account for each credit card user. But I think the single account will be easier to manage.
The only reason to set up sub accounts is for some internal, management reason - do you really need to track the separate liability balances and expenses by credit card user? How useful will that information be? The extra work to keep track of it this way needs to be offset by the usefulness of the information.
Keep in mind, too, that three separate payments will need to be paid for each of the separate sub-accounts - this will ensure that the liability balances in QB will stay correct. My suggestion is to keep life simple and only use a single credit card liability account in this situation.
About the Author:
Jennifer A. Thieme is a Certified QuickBooks ProAdvisor who loves to write about QuickBooks issues. She brings unique insight, clear instructions, and over ten years of experience to all of her QuickBooks articles. Owner of Solid Rock Accounting Services, Jennifer's clients enjoy these same benefits on a personal and regular basis. You can too - visit http://www.jenniferthieme.com and contact Jennifer today.
Article Source: EzineArticles.com
Phone Support - Don’t Give It Away For Free!
Phone support is an area where many new IT consultants lose their shirts. They want to offer high quality service so they make phone support part of their service contract. The problem is they end up giving away the phone support for free.
When you are billing on a hourly rate, the hours you spend providing phone support need to be charged as well as on-site time. Let’s face it, with phone support you’re going to be contacted by phone, on your cell phone, by pages, by email etc... You’re going to be doing phone support on a remote basis - and you can expect to do a lot of it.
There is a great deal of time involved in phone support and if you don’t get paid for it, your hourly rate is $0.00. Profitable businesses don’t charge $0.00 for their services. If you think you can justify giving away phone support "only to good clients" or "only just this once" you are fooling yourself.
When you give away phone support you also take away your clients’ incentive to call you for an on-site visit. Why would they pay you $100 on-site when they can call you up, get a few instructions, and then not have to pay anything? Are these clients gong to remain good clients? No, they’ll start to abuse the free phone support - it’s human nature to want to save money.
Bottom Line on Phone Support
Don’t give your phone support away for free! The information you provide over the phone is just as valuable as the support you provide on-site. You need to understand that giving away phone support is not going to boost your business and it’s not going to make good clients more loyal. Your "good" clients will start to abuse it and you will hemorrhage money if you provide free phone support.
Copyright MMI-MMVI, Small Biz Tech Talk. All Worldwide Rights Reserved. {Attention Publishers: Live hyperlink in author resource box required for copyright compliance}
About the Author:
Joshua Feinberg can help you grow your computer consulting business, the RIGHT way! Sign-up now for your free audio training program that features field-tested, proven Computer Consultants Business Tools at http://www.SmallBizTechTalk.com
Article Source: ArticleRich.com
Microloans and the SBA Could Help Finance a Small Business
The uses for a Microloan can be for making payroll or purchasing equipment. You could also use the capital for supplies, office furniture, of just about anything except for paying your current debt.
The loan term will vary according to loan size. If a small business is purchasing $25,000 in new equipment, the term could be for up to 6 years. However, if you need $1500 for a computer and printer, the term will not be for the full six years. As far as loan amount, currently the Maximum loan amount is $35,000. This will probably be increased to $50,000. The interest can range depending on the lender; generally speaking the interest will not be more than 13% and can go as low as the lender will allow. With everything there are exceptions to the rules and that would apply to the SBA Microloan program.
As a business owner you will also need some collateral. Many banks refer to this is having some skin in the game. If a small business owner has no collateral, or is not willing to give up some collateral, then the banks has no reason to lend money to you. Keep in mind that a Microloan is a small amount of money. This does not mean that you cannot receive an approval for a start up business or to expand. One example is if someone would like to start a coffee shop. If after doing all your homework and creating a business plan you discover that you need 30,000 to open your doors, a Microloan is an option.
A Small business owner should be prepared to have some documentation ready. A business plan, cash flow and P&L. You will also need to have business insurance on any collateral that you plan to use.
Many times small businesses need help with meeting the requirements that the SBA has for guaranteeing loans. This is not a problem; the Small Business Administration has tools to help you and can direct an owner to where they can find help. In most cases the advice will be free and will help you run a better business.
The SBA has other loan options if you are in need larger loan amounts or a longer term. However the Microloan is one of the best kept secrets for funding expansion projects or starting a new business.
SBALoans-123 can help with educating the business owner on the different types of loans that are available through the guarantee program. SBA Funding can accommodate just about any type of business. To find out more about Microloans, you can visit the SBALoans-123 website. Robert A. Wagner works in the loan industry as a consultant and has written about and owned businesses for the last 20 years.
Article Source: EzineArticles.com
Top 10 Ways to Beat Procrastination on Your Taxes
Does the thought of preparing a tax return for your small business make you cringe? Does inspiration fail you while you wait until the last minute? This small business guide to tax deductions can help prevent procrastination until the last minute.
Clear Your Calendar: We see people postpone things because they do not have sufficient time. They do not make a schedule and follow it. It may be a task of filing your tax papers or something else.
Bring on an Accounting Clerk: If you need to employ more people to complete the work, you should do so and complete the work in time. If necessary, you can hire a bookkeeper. The bookkeeper can help you to organize your business works and accounts such that end of year taxes are no longer a nightmare.
Take a Trip to the Spa: An overlooked way to increase productivity is to reward yourself when you accomplish a tough task. Rewards to consider might include a day at the spa, a massage, a family outing, or any other reasonable thing that will help motivate you.
Buy Tax Software: Programs for tax assistance automatically calculate tenacious paper computations for you. There are many to choose from and most of them contain everything you will need to file your taxes electronically or through the mail.
Locate an Accounting Professional: As the business grows, resulting in increased revenue and complexities, accounts are able to assist you to avoid frustrating experiences and expensive mistakes. Such a specialist also can help you with other issues, including strategies for managing cash for and offering other practical business and tax tips.
Remember to Pay Yourself: Here's an easy way to determine just how valuable you are to the company: For the fiscal year, calculate your profit after expenses, then divide the figure by the number of hours you worked. This determines your hourly pay rate. Then, determine your tax refund divided by the number of hours that are required to finish the return. If this amount works out to more than or the same amount as your hourly rate, it will likely be enough to motivate you to prepare the tax return.
Ask for an extension: Most heads of small firms don't have any spare time. However, putting off filing can bog you down in guilt, so that you don't really derive much benefit from putting potential filing time into other company business. Consider asking the IRS for an extension.
Join a Tax Preparation Course: When people don't know what they need to do, it slows things down. In order to feel more knowledgeable and confident, it is helpful to take a day-long course in preparing taxes for small businesses. The IRS and many other associated organizations are offering free workshops online for small business owners. The main topics that are discussed in these workshops ranges from revenue, expenses, electronic tax filing to recordkeeping and employment taxes etc. Other related issues are also discussed here.
Is this the time to take on a Chief Financial Officer?: It could be, if your firm needs more than an accountant's expertise to cope with its financial matters. How do you really know if you need someone to fill this position? Consider whether you are always convening the management team whenever there are financial decisions to be made. You certainly could need a CFO, on either a part-time or full-time basis, if you are planning to launch an IPO or if you need to obtain a significant infusion of capital.
Baby Steps: Reflect on the start-up of the company. If you had stopped to consider every task necessary to begin the business, you probably would have never have started the business. So, start small. Begin with an easy task like organizing files and continue from that point.
Tax time is never a fun time of year, but the pain created by procrastinating the completion of your tax return is worse. Take that burden and unnecessary guilt off of your shoulders by getting it done without delay and decreasing your April stress level in the process.
About the Author: Ron Finkelstein is NOT a Tax Attorney or an accountant. He is merely a small business owner who has paid a lot of money over the years to learn a whole lot about The Most Overlooked Tax Deductions, how to pick a tax attorney, and How to save money when filing business taxes.
Article Source: ArticleRich.com
Ask any entrepreneur why they went into business for themselves, and you'll get a hundred different answers, but odds are pretty near even that, "To do bookkeeping," is nowhere on that list. But proper bookkeeping is the core of any successful business, it is a way to tangibly measure growth, keep cash flow positive, and track expenses to ensure you don't overpay your taxes.
Bookkeeping is like learning the piano: Hard to learn, but easy to master. The secret is to learn the fundamentals and create a system that works for your company.
While it's up to you to create the system, these eight tips should have you bookkeeping like a virtuoso in no time:
Use the Right Software:
Forget (heaven forbid) spreadsheets, today countless options exist to keep track of your books. Some offer free version of their software, or you can use several online versions.
Automate Your Invoicing:
Several online invoicing services allow you to schedule invoices for clients you charge contracted monthly fees to, saving you time and cutting down on errors.
Don't Mix Business and Pleasure:
Getting a business credit card not only separates your business expenses from your personal, but you also build business credit and points. Some business cards allow you to automatically download transactions into your bookkeeping system for automated month end inputting.
Keep it Simple:
You might be tempted to over-categorize your chart of accounts (office supplies vs. itemizing your fax, paper, letterhead, printer supplies, etc.), but resist the temptation. This will complicate your profit/loss and add time to your bookkeeping.
Schedule Important Reports:
Some bookkeeping systems allow you to schedule reports such as your Profit/Loss, Balance Sheet and Accounts Receivable Aging to a schedule of your choosing (daily, weekly, monthly) and email them to various recipients. This can also act as a reminder for due dates such as your state sales tax.
Pimp My Report:
Some bookkeeping systems allow you to customize important reports to include key information. One report we suggest is a customized A/R Aging that includes contact info, so you have all the information in one place. Then schedule that to arrive monthly at your A/R clerk to follow up on late invoices.
Use a Payroll Service:
Once your business starts to grow beyond you as the only employee, payroll jumps exponentially in difficulty and can lead to heavy fines if done incorrectly. Outsource your payroll to a professional company to avoid the headache. Shop around to get the best rate.
Hire a Bookkeeper:
We know what you're saying - "Why'd I waste my time reading these last seven tips?!" Knowing how your books work is just as important as investors knowing what investment companies are doing with their money. But hiring a professional bookkeeper provides a second set of eyes looking at your books and frees you up to focus on growing your business instead of working for your business.
In short, you can simplify you bookkeeping by practicing or using these 8 simple tips.
Wendroff & Associates, CPA is a full service accounting firm offering Tax Preparation, CFO Consulting, QuickBooks Training and Bookkeeping. We are a small business and individual CPA firm serving Arlington, Washington DC, Alexandria and Falls Church, Virginia. For more information, please contact an associate at Wendroff & Associates at 703-553-1099 or find us at www.wendroffcpa.co . Alexandria Accountant and CPA.
Article Source: ArticleRich.com
How Small Businesses Get Tax Savings with Quickbooks Help
by Jed Totus
If you've been using your Quickbooks software diligently all year, when tax time rolls around, it should be a no brainer. You are certain that you have recorded everything correctly and will sail through tax season. However, are you sure that you have done everything possible to get the most tax benefits and avoid overpaying? The only way to be sure is to have a qualified consultant review your Quickbooks file for you to look for things you may have missed and help save you money.
First, business owners often make contributions to their own businesses. For small business owners, this is a common practice to use your own personal money for your business. The problem arises when this money is misclassified. If you show this contribution as income rather than an owner contribution, you will be paying taxes on it as if it is income. Who wants to pay taxes on their own money? These types of credits to your account must be classified in Quickbooks as an owner contribution to avoid being taxed on them.
Sometimes instead of giving money to your business, a business owner may loan money to their business account. These funds will be refunded to the owner and should not be considered income to the business. Be sure that this type of payment is recorded as a loan so that it is not accidentally taxed as profitable income.
When using a credit card to make purchases for your business, is it important to correctly record every charge so that it is correctly classified within your Quickbooks file. Instead of classifying a charge as just a business expense, it is important to be specific as to what type of expense it is. For example, if you purchase paper, staples and printer ink, this should be recorded as an office expense. Keeping track of expenses is an important part of bookkeeping in your business that will result in tax savings if recorded correctly.
Sales tax must be paid to the state comptroller and Quickbooks will let you know exactly how much you owe, if you have recorded each of your financial transactions correctly. When customers make a purchase, sales tax is included in the total that you charge them. You must specify which part of the sale is the sales tax. The amount that you will pay towards the state comptroller must also be recorded correctly through the 'Pay Sales Tax Liability' window. Without this, Quickbooks will not record what you owe correctly.
Finally, a common mistake people make both in business and in personal finance is incorrect recording of ATM or debit card purchases. It's easy to swipe your card making a quick transaction and be on your way. It is crucial to record each debit or ATM use correctly. Think of it as each time you use a debit card, it's just like writing a check and must be recorded just like a check would be.
Anyone who uses Quickbooks knows the value of this software. It makes the business owner or bookkeepers job much easier. However, it is always a good idea to have an experienced Quickbooks help consultant review your file at tax time to make sure you are not paying too much in taxes.
Nancy Froelich has what it takes for your Quickbooks help in San Antonio . Contact her to find out how you can be sure your Quickbooks files are right on the money. You can reach her at 210.525.1852.
Article Source: ArticleRich.com
Quick Books Checks are created using one of the most enduringly popular of accounting applications available on the market. Quick Books Checks can be used to better automate your office's workflow so that routine tasks are simpler and even quicker to perform. They also help eliminate the possibility of error because you are no longer manually filling out each and every check. Quick Books Checks also allow for the personalization of checks by such things as the company's logo. This creates a very professional and elegant impression.
So as to most fully utilize your Quick Books Checks, you must devote some time to learning the check writing system used by the software package. The program is pretty easy to use, with an interface that's made to look just like a real checkbook. What is necessary to know is which areas of the Write Checks window need input, depending on the kind of bill you wish to generate. For example, paychecks for your employees cannot be paid here; payroll functions are available on another screen. Other kinds of checks have their own unique categories, such as sales tax. Sometimes this sort of information is entered in the Pay Bills section.
But once you learn all that and come to realize all the different benefits of generating your very own Quick Books checks, you'll be happy to learn that they are available in a variety of designs and layouts, with some offering three to a page while others bear just one each, leaving the rest of the page for the sort of information typically found on check stubs. Still others come in rolls of continuous paper separated by perforations. Then there are those that are fed into your printer sheet by sheet, picked up by the printer itself as needed. No matter the size or type, however, Quick Books Checks will certainly save time and money by freeing up personnel to deal with more important aspects of your business. The QuickBooks program itself does not require any prior accounting experience, so there is no reason why your small business should not be familiar with all the possibilities on offer.
As previously mentioned, these checks are available in a wide variety of styles. But many vendors also offer starter packages which not only include a set of such checks but matching envelopes as well. However, it's also possible to use pressure sealer equipment which will create one-piece mailers, obliterating the need for envelopes. But regardless of how they are delivered, generating your own checks off a computer is undeniably the modern way of doing things.
About the Author: Written by Paul Wise, who often uses Quick Books Checks and recommends NobleChecks.com for QuickBooks Checks at great prices.
Article Source: ArticleRich.com
One of the greatest challenges many entrepreneurs face is riding the cash flow rollercoaster in their business. Nothing triggers panic and sleepless nights like a cash flow crunch!
Yet, many clients struggle with finding proven ways to generate more cash in their business-fast. Instead of spinning around worrying, or taking months to develop a new product, program or service, I recommend that you take focused action on one or two things that can turn the financial tide fairly quickly.
So here are 12 surefire strategies to improve your financial situation in as little as 30 days. Choose a few to implement and watch the money start flowing in again!
1.Hold a sale on an existing product or service. Choose one of your lower priced offerings and come up with a fun sale idea. It can be a birthday sale, 'end of school' sale, holiday sale, or a 'just because' sale. Send out an announcement to your list of prospects and clients and, if you use email, be sure to send at least 2 follow ups. Limit your sale to a specific time period-5 days, 7 days or even 48 hours.
2.Hold Bonus days. If you don't want to discount your prices (or you can't) then consider doing a special bonus promotion and promote an existing product or service with a special bonus. Include a free product (one you would normally charge for), time with you, or some other limited bonus for those who buy during your Bonus Days.
3.(Finish & )Launch a new product. Finish and launch that product you have sitting half done on your hard drive. You probably have a ½ finished ebook, or an audio course, or a teleclass you could easily convert into a product. Block out a day or two to get it done and then make a big splash about it to your list of clients and prospects. Sell it to them at a pre-launch discount or throw in a cool bonus (see 1 or 2 above).
4.Follow up. Pick up the phone and follow up with leads that have come through in the last 60 to 90 days. Perhaps you have had contact with potential clients in the last quarter, but they weren't ready to commit. Contact them, let them know you are excited to reconnect and hear how they are doing on their goals, projects, etc... and set up time to check in.
5.Offer a special package to past customers. Perhaps you could reconnect with past clients and customers and, if appropriate, offer them a special program, product or service not available to the general public. Give them a VIP treatment. Create a special consulting or coaching package to help them kickstart their goals. Find out what is relevant and make a compelling offer to your loyal fans.
6.Get referrals from happy customers. If you have current clients, or very recent clients, who are huge fans of the work you've done with them, ask for referrals. I know it can feel awkward, but if you time it right...like when they are raving to you about great results, it can become much more natural. You can say something simple like "I'm thrilled you're so pleased with the results you've been getting. I have a few openings for new clients, so if you know of a friend or colleague you'd like to refer, I can offer them my special "VIP treatment."
7.Offer complimentary consultations. Send out a promotion to offer a complimentary assessment, consultation or session to your list. The important thing is to be clear from the start that towards the end of the consultation you will, if appropriate, let them know about products or services you have that could benefit them. Make the consultation valuable, learn about what it is they really want to achieve and show them how they can get there. Just don't go too far and give away the store! They won't value the time or advice and you will feel you're wasting your time.
8.Offer a micro-program. Know of a hot topic that your audience is interested in (and that you can help with!)? Offer a short program to help with that specific issue or goal. Think about something you can accomplish for your clients in a short time frame-like 30 days or less. Make your micro-program a 3 to 5 part class, for example, and offer it for an affordable price ($97-$297) with high perceived value.
9.Clean up your energy leaks. It may seem a little off topic, but it isn't. In my observation and experience, money follows your energy. If you are energetically depleted and worn down, your money will soon follow suit. So, by parallel, if you improve your energy and restore yourself, money will also follow. I've tested this with clients and myself for years and it works 98% of the time.
10.Cut Costs. Money drains are very damaging to your cashflow. Take stock of everything you are spending in your business and consider if the payoff is really there. Take NOTHING for granted. Look at payment plans, pay attention to the $10 and $20 subscriptions you don't use, find lower priced alternatives for must-have services. This isn't about 'constriction'-it's about being a smart, savvy shepherd of your financial resources.
11.Raise Your Rates. If you are operating at 80% or more capacity, then you can and should raise your rates. Start with 10-20%. Or perhaps just pump up the rates on your most in-demand service. Make it a practice in your business to keep your rates current and in line with demand.
12. Hold a free workshop or teleclass. Getting the buzz going, and getting yourself in front of an audience can immediately bolster sales. Be sure to seed your services and the fabulous results clients get while working with you throughout your workshop or class. Then offer a way for interested participants to schedule time to talk directly to you or enroll in a program. You can tie this right into any of the other ideas in this list-book a consultation, give them a discount on a service or product, offer a bonus. Just be sure to make a specific call to action that is easy and compelling.
Having a steady stream of quick-cash generators in the pipeline can help level out the cashflow rollercoaster and give your business a surge of new business, fast. The key to success is follow through. You have to have the confidence and consistency to follow through each of these strategies to truly get the payoff.
Are You Buried in Year-end Financials and Tax Preparation?
By Steve Coff
Catch-up bookkeeping (sometimes misspelled book keeping or bookeeping) isn't easy but there are some points you might want to remember. Year-end financial statements and tax preparation are the most important reports of year, so more time and effort is needed to make sure they correctly reflect accurate information.
Year-End Accounting Checklist
* Balance your general ledger to your bank statement
* Write off worthless accounts receivables
* Verify that your business inventory is correctly stated (if applicable)
* Review your list of assets
* Be sure that all payables are recorded
Four Year-end Business Tax Tips
1. Income Deferral: If possible, defer payment until early January. Payments received in January (rather than December) will not be subject to taxation until April of the following year.
2. Increase Expenses: Make major purchases in the previous year. Stock up on office supplies, office equipment, and pre-pay bills and subscriptions if possible.
3. Write-off Inventory: You may wish to check your stock for damages or obsolete items in case there is a drop in market value.
4. Retirement Planning: Year-end retirement payments can reduce your income resulting in less taxes.
Best Tip for a Success Year-end:
Consult with a reliable accountant or bookkeeper (sometimes misspelled book keeper or bookkeeper) early in the year. There is no such thing as cutting corners, because there are many credits, deductions and other items that need to be considered. A seasoned tax professional will keep up on the changes and know the ins and outs that can make an incredible difference in your year-end financial statements and tax-preparation.
(Information included in this article may not apply to your particular scenario and should not be deemed accurate. Only a qualified professional can give you proper advice for your business.)
Do you need some help getting caught-up? Have questions about where to find help? AccountantsGuaranteed.Com is a free service that can put you on the road to success. The free research service can put you in touch with an accountant or bookkeeper that can help you with your small business accounting needs. Contact AccountantsGuaranteed.Com for a free consultation today!
You can also find more information on hiring Tax Accountants for your small businesses need from AccountantsGuaranteed.Com.
Article Source: EzineArticles.com
Commercial Loan and Working Capital Resources
by Stephen Bush
The practical overview in this article will describe some useful small business loan resources which should be evaluated by business owners as part of a systematic process for obtaining working capital financing and commercial loans. To locate any site referred to in this article, commercial borrowers should either contact the author directly or use a leading internet search engine. All of the suggested business finance resources are free and available online.
Small business loans have always been more complicated than realized by most business owners. A prudent approach to working capital financing and commercial loans is becoming more difficult for most commercial borrowers. Recent commercial financing uncertainties involving commercial mortgages and SBA loans have added significantly to the complexity of the entire commercial lending process.
By searching for "commercial mortgages and commercial loans guide", the first suggested resource will be identified. This site includes candid advice about avoiding problems with commercial real estate loans and small business loans. Also included are some especially relevant articles. A special report describing what a business borrower can do when a bank refuses commercial mortgage requests is one prime example.
A second resource can be located by searching online for "working capital financing special reports" or "commercial loans special reports". This will provide links to a wide variety of recent articles addressing relevant issues such as difficulties which are likely in refinancing SBA loans. Commercial borrowers should especially benefit from reading about recent adverse developments involving business cash advances and business finance programs.
A third key commercial funding resource can be reached by searching for "business cash advance and working capital guide". This site primarily discusses topics related to working capital financing. Of special note at this site is a small business cash management executive summary. This summary report includes a list of ten problems to avoid with credit card factoring.
A fourth resource of general interest to small business owners will be found by searching for "working capital help" or "working capital journal". This includes a discussion of predatory lenders which should be avoided. Also provided is a comprehensive update about the many evolving changes for business finance programs.
A fifth resource which should be helpful to anyone that currently owns or is about to buy commercial property can be found by looking for "real estate investment property loan and business finance guide". This site will provide a useful perspective about some critical problems to avoid with SBA loans and conventional commercial mortgages. For example, a report at the site discusses how to avoid malpractice with commercial loans.
We recommend inclusion of terms such as "avoiding problems" along with other descriptions like "working capital" and "commercial mortgage loans" to obtain more helpful comments about small business loan reports available through internet sources. For example, by searching for "avoiding problems with working capital loans", commercial borrowers should obtain useful insights about difficulties to be avoided in their own business financing efforts.
Some precautions in this approach to business finance research are appropriate. Highlighted below are two of the more important aspects.
First, because of the complicated nature of small business loan underwriting, there is really no substitute for individualized discussions between a commercial borrower and a knowledgeable business finance advisor. Before finalizing their commercial loan decisions, prudent business owners should insist on personalized and detailed discussions with a working capital expert.
Second, most business finance strategies are highly likely to be more complex than expected by commercial borrowers. There will normally be specific issues requiring more detail than can be found in a generic article, even though written sources can identify important commercial loan difficulties for business owners to anticipate.
It is likely that business owners will gain helpful insights about the changes currently featured in the business finance news by devoting some time to reviewing sites through the search phrases noted above. Although it is true that there are new and substantial small business loan problems to be confronted by commercial borrowers, in most cases these will be difficulties that can be successfully overcome with prudent advance preparation.
Advice about how to avoid problems with small business loans - Stephen Bush is a working capital funding and commercial financing expert => AEX Commercial Loans and Business Finance Programs - The Working Capital Journal
Article Source: ArticleRich.com
Designed for small businesses, QuickBooks is a powerful and most commonly used small business accounting and management software in the US. It is used to track expenses, prepare and send invoices, prepare financial statements, track inventory levels, and many other tasks. It is available in customized versions for different industries.
Here some step to think about when using QuickBooks:
Many small businesses work on the cash basis accounting. What this means is you record your expenses when you write the check or charge your credit card, and you record your trade or profits when you take the money to the bank and deposit it into your account. This is the effortless way to account for your transactions.
On the accrual basis accounting, you record income at the time of sale, not at the time you accept payment. You also enter expenses when you receive the bill, not when you pay it. The choice is yours on which accounting method you want use. QuickBooks work on both accounting method.
An online banking service is available with QuickBooks, which enables you to pay your bills automatically and resolve your bank accounts monthly. This is required to make sure you capture all business deduction to minimize your end of year tax responsibility.
QuickBooks other useful thing that allow modifying forms like statement, invoices and purchase orders which, you want to send to your customers. It will allow creating mailing labels and emailing messages to your existing customers that are setup in QuickBooks.
QuickBooks helps to develop reports; you can create many reports for daily management of your business. The most widely used reports are the Balance Sheet, Profit & Loss statement. The Profit and Loss statement is simply your sales minus your expenses over a period of time. When you select to display a report such as the Profit and Loss statement, you are able to drill down from each account to get the source of the amount in the report.
Thus, QuickBooks is a simple to use bookkeeping & accounting software program that agree to business owners to manage their business more usefully.
This article has been provided courtesy of HighTechBookeeping.com – specialized in QuickBooks bookkeeping. Hire virtual Quickbooks bookkeeper for your small business.
Article Source: ArticleRich.com
By Bryce Whitty
Last Friday, I only had a few computers on the bench (which didn’t take long to repair) resulting in me having much of the afternoon free. I took this time “seal some business leaks”.
I like to
think of my businesses finances as a Styrofoam cup with holes in the bottom. I
pour water into the top of the cup (which represents my income) and some of it
leaks out of the holes in the bottom (which represent my expenses). If the cup
is filling up faster than it is leaking then I am making a profit. The cup is
always leaking because I have the ongoing expenses of running a business like
utilities, fuel and web hosting. It is the web hosting leak I wish to talk about
in this article
Many years ago I used to do a lot of web development work for my clients. I
would create the site, purchase the domain and host it all for them. The clients
loved this setup because it meant they didn’t have to worry about anything
technical. As a result of this I ended up hosting quite a few clients on my
Hostgator reseller account.
I started out originally with the lowest end package for $24.95 per month but I eventually had to upgrade to the middle level package at $49.95 per month to deal with all of the clients. This setup worked great for many years but once I stopped doing web development work it meant I wasn’t adding any new hosting clients, yet I was slowly losing them as the years went on.
Fast forward
to last Friday: I found I had way more bandwidth and space available than what I
needed to support my remaining clients so I dropped the hosting package back to
the low end $24.95 package.
Basically, my business was “leaking” $25 USD per month and while that doesn’t
sound like much, especially when I will probably make $100-$200 from the
machines on the bench at the time; that $25 works out to be $300 per year. If I
leave it for another year, that leak will have cost me $600, then $1200 for the
next year and so on. It really can add up.
Business leaks aren’t always just financial ones either, they can also be in the form of you losing clients because of something stupid, like not updating your answering machine message.
Think about it right now and see if you have any business leaks of your own. Chances are you will be able to find something.
About the Author: Bryce Whitty is a Professional Computer Technician who started his business when he was 17 year old. Bryce writes Technibble articles about Business How-to's and stories from "the trenches".
Managing Daily Cash Flow -Business Finance Basics.
Even if you spend a lot of time managing your personal finances, you probably don’t think of your income and spending in terms of cash flow. If they use the term at all, most people think that cash flow is something that businesses have to worry about. But you also have a cash flow, and figuring out whether it’s positive or negative is an important part of managing your money.
Cash flow planning is the foundation of all Financial Planning, because it allows you to:
• Assess your ability to meet your goals.
• Project your future cash flow needs.
• Identify opportunities to increase income and/or decrease expenditures.
• Make portfolio adjustments to meet your investment objectives with less risk.
To properly manage your personal finances you should understand the basics of cash flow and its importance in supporting your budget. Simply put, cash flow is the flow of cash in and out of your accounts.
Cash inflows include salary and other sources of cash-based income. Cash outflows include bill payments, including mortgage or rent, living expenses, utilities, and repayment of debt. You can be considered to be properly managing your personal cash flow if you never bounce a check and rarely, if ever, have to take out a loan or use a credit card to make ends meet.
Businesses need a constant flow of money to manage operations. This money can be used to pay employees, invest in inventory, retire high-interest debt obligations, or even to avoid insolvency. The financing of a business is a critical component to its success and longevity. Without it, a business may not be able compete aggressively in its market. There are several options for companies which need financing. These include business credit lines, grants, angel funding and even credit cards. Below, we'll explain how business finance is important to cash flow management and a company's growth.
Managing Daily Cash Flow
The daily operations of a business can have an unpredictable and precarious effect on cash flow. Sales may generate revenue, but that revenue may be delayed in receivables or it may be earmarked for inventory purchases. Meanwhile, employees and monthly bills must be paid. You should talk with your bank manager to arrange a business credit line to help manage your company's daily cash flow. This credit line provides financing for your business when your checking account lacks funds.
You should also have a few business credit cards. These are helpful in the event that you've used your credit line and need additional financing. They're also useful for small, necessary purchases (for example, office supplies). Because business credit cards will usually carry less-favorable terms than a bank credit line, they should only be used when necessary.
Business Loans and Raising Money
Often, a business will need to find a large source of money. They may want to buy another business, invest in larger facilities, or launch a second line of products. These things require a sizable investment; credit lines and credit cards may not offer a sufficient source of funding. But, you can apply for small business loans and grants. To qualify for a loan or grant, you'll likely need to create a marketing plan that describes your company's intent.
You can also look to angel investors to raise money. Similar to applying for a loan or grant, you'll need a plan. Angels invest their own funds into a business with the hopes of enjoying a high rate of return. Your plan should detail how you intend to accomplish that.
Business Finance For The Growing Company
Your business has several financing options for managing daily cash flow and raising money for larger expenditures. Ideally, you should consider pursuing a few different sources of funding. Begin with arranging a business credit line and credit card with your local bank. While you build that relationship, start looking into small business loans and grants. Finally, for a major influx of needed funds, begin approaching potential angel investors. Eventually, you'll be able to take advantage of better sources of financing as your business grows.
For more useful tips & hints, please browse for more information at our website :-
http://www.freeearningtips.com
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Article Source: ArticleRich.com
PayPal for business is an easy means of offering your visitors multiple ways of payment for goods and services online. Currently PayPal has over 150 million accounts in 190 countries and regions of the world to help businesses of all sizes broaden their reach.
Whether you are a sole proprietor or a large corporation, PayPal business accounts are safe and simple. Within just minutes you can set up a PayPal business account and start accepting credit card payments including Visa, Mastercard, American Express and Discover. Website visitors appreciate multiple payment methods making it more convenient to buy from you. By integrating PayPal for business into your current e-commerce solution, you reach out to millions of active PayPal buyers for a greater market scope. Appeal to this international market because PayPal is a way to accept payments from new customers.
A PayPal business account provides an array of features for all businesses. There are no start up fees for a PayPal account so you don't need extra cash to open one. PayPal business accounts do not charge monthly fees so they are an affordable solution to your needs. There are also no cancellation fees and no minimum payments so you never have to worry about these unwanted costs taking away from the money in your business account.
When you have a PayPal business account, you also enjoy lower transaction fees than other merchant accounts. Over time, these savings really add up for your business and become one of your competitive advantages. It's quick and simple to setup at PayPal account and you can get one started in just a few minutes. There is no special or extra hardware or software needed to open and manage your new PayPal business account.
A major consideration for your business account is security. PayPal has a 60 to 70 percent lower fraud loss rate than other merchant accounts. PayPal is considered as industry leader in the areas of risk management and fraud protection so you feel reassured.
Imagine the network of buyers you have with a PayPal business account. One in three online buyers in the United States today have their own PayPal accounts. Everyday more than 58,000 people around the globe sign up for a PayPal account. PayPal gives your website international appeal because you can accept payments from people around the world with ease. With PayPal, you can get payments in 19 different currencies.
PayPal is a safe, fast way to get paid and pay online. Money is sent without sharing financial information for optimum security. In 1998, PayPal was founded to provide an online payment solution. By 2002, this San Jose, California company was acquired by business leader eBay.
The people at PayPal are committed to furthering the security and ease of the ecommerce experience for users and webpreneurs. According to Philipp Justus, the senior vice president of global markets for Paypal, e-commerce is growing at an extremely rapid pace and PayPal is committed to supporting the phenomenal rise of online shopping and electronic payments around the globe.
No matter how big or small your business is, you can get a PayPal business account started for free to broaden your scope. Accept a variety of payments and offers visitors secure transactions with an industry leader. Have a operational online account to make payment and receive payments so your business operates smoothly in a fast-paced Internet world.
David Tanguay is the owner of Interactive Online who provides Cheap Hosting and Hosting services .
Article Source: ArticleRich.com
Different Sources of Finance Free helpful Article
by sandeepkumar
If you are looking for information about different sources of finance, you will find the below related article very helpful. It provides a refreshing perspective that is much related to different sources of finance and in some manner related to mortgage, financial management, SBA finance or investment banking finance. It isn't the same old kind of information that you will find elsewhere on the Internet relating to different sources of finance.
Finance company concentrating on the lending of cash to customers, the buying of accounts receivable and the extension of credit to business. Write a living will in case you or your serious other become seriously hurt or die and unable to make money choices.
depending upon how much equity is in your business, you may be able to get permanent capital in the shape of a term loan. A more creative approach is to build associations with key providers and / or buyers with a vested interest in your success, and prepare for an equity investment.
Insurance is a crucial part of any sound money plan. Different types of insurance defend you and your family and friends in different techniques against the price tag of accidents, sickness, disability, and death. Disability insurance, which provides earnings stream if you are unable to work, is crucial for everybody.
If as related to different sources of finance as this article is and it still doesn't answer all your needs, then don't forget that you can conduct more search on any of the major search engines to get more helpful different sources of finance information.
When starting a budget, you can get overwhelmed. There are tons of tricks out there. There are tons of formulas. The truth is, it is reasonably easy. So here I'll lay out some general tips. If you follow these tips, you can build a budget that works.
One of the finest methods to find potential planners is by speaking to others. If you already have an accountant, ask if they know of any planners that could aid with your situation. Check with friends and family or anyone else that you trust for referrals too. It's way better to get some first-hand proposals before scouring the phone book or Internet.
financial aides must be confident about decision making under doubt and under intense time pressure, have wonderful folks and communication talents, and know how to deal with failure and with dis-satisfied clients. Success is highly dependent on sales ability, both in the purchase of new clients and in the pitching of investment ideas to existing clients.
A lot of well-meaning people searching for different sources of finance also searched online for business finance, real estate, and even finance information.
So here is chance to get your basic information on saving money visit banking and finance.
Article Source: ArticleRich.com
You
Need Insurance Regardless of Your Business
by
James Cochran
While it might be comforting to think that insurance is something that only the big companies need to worry about, insurance is something that all businesses need to worry about. Indeed, the smaller you are as a business, the more vulnerable you are to a wide array of risks that can only ultimately be dealt with by adequate business insurance protection.
When you run your own business, you take on obligations and responsibilities above and beyond that of the average citizen. In fact, it can be seen as somewhat of a double-edged sword. On the one hand, you probably go into business hoping to make a profit doing something you love while providing a benefit to others. On the other hand, all those others are affected by what you do — good or bad. It's the latter that can get business owners into trouble if they don't seriously think about serious business insurance protection.
Let's take small business liability insurance as an example. Without this form of insurance protection, a business owner is putting themselves in unneeded and unnecessary financial risk.
Small business liability insurance is that which essentially protects a business from the threat of a lawsuit. It differs from other kids of protection many individuals might already be familiar with because it covers assets from the risk of being attacked by a claim of misconduct carried out by you or your business. If somebody decides to sue your business, not only could you be on the hook for the damages awarded, but the legal fees involved can often be staggering, even if the lawsuit is frivolous. Things like small business liability insurance, as part of a comprehensive business insurance package, are meant to deal with just such instances.
If you don't think that your business is at risk like this, you might want to reconsider. No business is too small or irrelevant to be untouched by the risk of a lawsuit. In fact, the smaller you are, the less you'll be able to count on your own resources to address the crisis of a legal proceeding, or the damages awarded as a result.
Perhaps for no sector of business is this reality more apparent than with small offices providing services of various sorts. While the amount of resources at your disposal is tight, the extent to which you may have an impact on the public is very considerable. And the extent to which that same public can come back and bite you can be similarly considerable, too. This goes for real estate professionals, management consultants, tax preparers, lawyers, doctors, and so on. No one is immune from the threat covered by business insurance that includes things like small business liability.
No matter how competently you think you run your business, how much emphasis you place on customer satisfaction, how well thought of you are in the business community, or the lengths to which you strive for excellence and achievement in your profession, you can be hit by a lawsuit. And, very often, you won't even have seen it coming. Even some service provided as a sub-contractor for someone else can be seen as having done harm to someone. If that someone decides to sue, there are costs that have to be covered. Good business insurance will cover it. More specifically, good small business liability insurance will cover it.
Let's take the management consultant industry as an example of where business insurance that includes small business liability is necessary.
The duties and responsibilities associated with the job of being a management consultant are considerable. In such a capacity, you use your expertise in the field of management to advise people professionally on a whole range of matters related to the proper running of a business. This can includes things as simple as staffing to something more sophisticated like public relations. Good management consultants provide a professional service noted for the extent to which comprehensive solutions are offered to meet challenging business environments.
This is precisely why management consultants need to be covered by good business insurance that includes small business liability insurance.
The extent to which their advice and solutions impact people can be almost limitless. In fact, if you tried to figure out who might sue you for advice you gave a client, you might never be able to do it. There will always exist people who simply perceive themselves to have been hurt by something you did. And they'll sue you for it.
Alternatively, even the best management consultants make mistakes. Sometimes they could have legal ramifications. Other times, they could have professional ramifications. Indeed, things like errors and omissions insurance or professional liability insurance exist because professionals make mistakes. Not only do they make mistakes, but they make mistakes that violate the professional principles involved in their industry. It happens. It's why even management consultants need good business insurance and liability protection.
Of course, whether you're a management consultant, real estate agent, tax lawyer, or healthcare specialist, the specifics might be different, but the insurance risks are much the same. As small business owners with offices that need to be protected from the threat of financial loss, business insurance and small business liability insurance is simply a smart solution to that end. They literally help protect the small guy and gal from the swamp out there that could digest everything they've worked for. And that swamp could include the unwanted lawsuit.
James Cochran is the founder of Business Insurance Now, a web-based professional insurance agency . Business Insurance Now and Techinsurance have grown to become America's leading online provider of small business insurance plans for a wide range of businesses, currently serving more than 12,000 business clients throughout the US.
Article Source: ArticleRich.com
Do you warranty your computer repair work? Some computer technicians don’t warranty their work at all while others warranty their work, but have very specific terms in what is covered and what isn’t. I personally provide a warranty on my work and in this article I would like to tell you why its a good idea to warranty your work and how to avoid it coming back and biting you.
First of all, lets talk about the advantages to you of providing a warranty on
your computer repair work. One of the biggest advantages of offering a warranty
is that it builds almost instant trust with the client. The client wants the
problem to be fixed right the first time and not have to spend any more money
fixing something that should have already been fixed. A work warranty shows that
you are confident in your skills and that you will look after your client.
Most other computer technicians don’t advertise that they warranty their work and by doing so, it differentiates you from your competition. Think about it from a clients perspective, you open up the Yellow Pages book and see 2 pages full of computer repair services. Most of them can do the service the client wants, all of them look fairly professional and most of them are fairly close to where the client lives. The client doesn’t want the cheapest price because they believe you get what you pay for but they don’t want to get ripped off either, so what makes the difference? a computer repair warranty can.
Long before I ever advertised that I warranty my own work I pretty much had an unspoken warranty anyway. If you are paid to fix something and you didn’t fix it right the first time, charging for it again just isn’t right. When an issue returns that I was supposed to have fixed properly returns, my reputation and abilities takes a hit in the customers eyes so returning to fix the problem is a good chance to patch this damage and make things right.
Also, since I don’t like having to go back to a clients place and without getting paid, it makes me a better technician because I am much more thorough. Since it takes more time being thorough (doing everything you should do as a technician, but not “padding out” the call) and educating the client on how to avoid the problem from occurring again, you can also charge more.
I have seen hundreds of clients so far this year and so far I have only had to go back to the clients about four times in total, all of the times it was caused by something I overlooked.
I am sure some of you are thinking that the client will probably blame every single future computer problem on you whether it was related to the work you did or not and expect you to fix it for free. This is where you have a work order outlining your warranty terms.
First of all you must put a time limit on your work warranty. Most issues, if they are going to return will return in a few days after the service date so you might want to make it a week or two after the service date. You don’t want to make it too long because this gives too much time for the client to get themselves in trouble with a new problem.
You should specify warranty voiding conditions such as the accessing of porn sites and the use of Peer-to-Peer applications since as there is a high chance of the client getting a virus when using these. If you find any these on the clients system then the warranty is voided and the problem it is considered a new issue. You should also mention that if you find the computer has been tampered with outside the normal use of the computer then your warranty is also voided.
Of course, whether the
client has done any of these warranty voiding conditions, it often comes down to
opinion so it might we wise to write that you or your technicians make the final
decision. To make sure the client doesn’t get upset about this and think you are
trying to get out of honoring your warranty, be sure to educate the client on
why the virus is a new virus or show the evidence that the computer has been
tampered with.
Do you warranty your computer repair work?
Bryce Whitty is a Professional Computer Technician who started his business when he was 17 year old. Bryce writes Technibble articles about Business How-to's and stories from "the trenches".
Article Source: Technibble.com
Are Your Business Ratios Convincing Your Banker?
by Don Yates
There are several key ratios you need to understand in order to gain your bankers confidence and prove to him/her you know what you are doing. It is much better to prepare and present the information well in advance rather then make the banker ask for it.
The key ratios your banker will be looking for fall into five groups:
· liquidity ratios (are current assets adequate to meet current obligations?),
· coverage ratios (is your business able to service debt?),
· Leverage ratios (how vulnerable is your business to poor market conditions?),
· Operating ratios (these assist you and your banker in evaluating your performance),
· expense to sales ratios.
These ratios can also be expressed in terms of key income statement ratios, key balance sheet ratios and key asset management ratios.
Key balance sheet ratios (ratios based on information from your balance sheet) help the banker (and you) determine the solvency of your business and its financial safety. These ratios include the current ratio, the quick ratio and the safety ratio.
It is the Key asset management ratios, which will help you and your banker, determine how well you are operating your business. These ratios include sales to assets, return on assets, return on equity, inventory management, accounts receivable, management (how quickly you collect your money) and accounts payable management. Unless you are familiar with bookkeeping, it is strongly recommended that you seek assistance from your bookkeeper or accountant before attempting to prepare ratio analysis information for the banker.
Once your bookkeeper or accountant has prepared the ratio information for the loan officer, that individual should consult a copy of the current RMA Annual Statement Studies (Robert Morris Associates, the national association of bank loan officers). Turn to the (SIC) Standard Industrial Code Classification for your industry and start making comparisons between your business and those of your peers. Since there is a significant difference in total sales, costs of operations and so forth, the basis for comparative analysis are these ratios. For more information on how this process works it is recommended you read the relevant information regarding how RMA studies are prepared and what they mean. Your banker and local libraries will have a copy you can review.
In order to give you as clear an understanding as possible, the following key ratio information is based on the RMA material.
Key liquidity ration include the current ratio, the quick ratio, (also known as the “acid test”), sales to receivables, cost of sales to inventory, cost of sales to payable, days payable, and sales to working capital.
Current Ratio
Total current assets
Total current liabilities.
The current ratio divides total current assets by total current liabilities. RMA defines this ratio as a rough indication of a business’s ability to service its current obligations. The higher the current ratio the greater the difference between obligations and your business’s ability to pay them.
Since the current ratio is comparing the current assets with the current obligations of the business, a higher than industry ratio would indicate a larger amount of current assets (cash, inventory, receivables) to current liabilities (payables-including current payroll obligations, and current portion of long term debt) and possibly indicates a stronger position of the business to meet short term obligations.
Quick Ratio
Cash & equivalents + trade receivables – (net)
Total current liabilities
The quick ratio is a more conservative measure of liquidity. This ratio states the degree to which a business’s current liabilities are covered by the most liquid of the assets.
Much like the current ratio, the quick ratio includes only those assets, which can be quickly converted to cash. A higher than average ratio would indicate that quick assets (cash and receivables) are strong in relation to current liabilities for the same reasons as noted above under current ratio. This ratio does not take into consideration the revolving nature of current assets and liabilities, and management can put pressure on either of these to influence this ratio at a particular assessment date.
Sales/Receivable Ratio
Net sales
Trade receivables – net
The sales to receivables ratio is simply set sales divided by trade receivables, and it measures the number of times trade (accounts) receivables turn over during the year. Generally, the higher the turnover, the better.
A higher than average number would be an indication that receivables are lower than usual at the balance sheet date. This could happen if a large outstanding balance was paid off just before the balance sheet date, or could just be that a business’s credit policy is tighter than the average.
Day’s Receivable Ratio
365
sales to receivable ratio
This ratio states the average time in days that receivables are outstanding. As you know, the greater number of days outstanding, the greater the likelihood the accounts receivable will turn bad.
This ratio indicates the average number of days to collect receivables. This can very for the same reasons noted under sales/receivable ratio.
In subsequent articles we will discuss ratios in more detail, including:
· Cost of sales/inventory ratio & day’s inventory
· Cost of sales/Payable ratio
· Sales to Working Capital Ratio
· Coverage Ratios
· Net profit + Depreciation/current portion of long-term debt ratio
· Leverage ratios
· Net fixed assets/net worth ratio
· Debt/net worth ratio
· Operating Ratios
· Percent of profit before taxes/tangible net worth ratio
· Percent of profits before taxes/total assets ratio
· Leverage ratios
· Net fixed assets/net worth ratio
· Debt/net worth ratio
· Sales/net fixed assets ratio
· Sales/total assets ratio
Happy trails
Donald Yates, author, Former Director of Leadership and Development for First Baptist Church of Crossville, and Business Development coordinator for Imperial Research , is now retired but continues to engage life through self discovery.
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Article Source: ArticleRich.com
When NOT To Charge
By
Bryce Whitty
Every now and then there are computer technicians
that post “should I charge for this?” questions in
the Technibble forums; and the most of the time the
answer is yes. This post, however, is about when NOT
to charge.
There are a few simple rules I follow to help me
make my decisions.
When to charge:
|
If something took me diagnosis/bench time but the client didnt want it fixed (or its unfixable) |
|
If its the clients fault (obviously) |
|
When not to charge:
|
If whatever happened is my fault |
|
If I cannot fix something due to my lack of knowledge in the area |
|
If I didn’t do it right the first time and have to do it again |
Unfortunately, the “should I charge or not?” question sometimes falls into a grey area. Here are two examples of my own that fell into a grey area:
A few days ago I had a call from a client whom I setup a network printer for about 6 months ago but the printer was no longer working. I went out there and discovered that the printer had obtained a new IP address from the router but all the computers still thought that the printer was still at the old IP address. This would definitely be my fault but it turns out that the client had seriously messed with the network setup at some point swapping plugs and changing settings. This leads me to mention another rule I have: If I client makes their own changes to my working setup. I will charge them if they break it.
It was a relatively quick fix as all I had to do was manually set the IP address of the printer rather than use the default setting of having it automatically obtain the IP from the router. This should stop the printer from changing its IP address again.
So, should I charge for this one? The client did mess with the setup which could have easily caused it to stop working so I should charge. However, I felt that this problem would have eventually happened anyway as I didnt predict that the IP may change one day.
I also gave the client the benefit of the doubt that
they messed with the network after the
printer changed IP’s in order to troubleshoot. I’ll
never know if they did something to screw it up, but
I felt this problem would have probably happened
anyway so after I fixed it I didnt charge the
client.
My other grey area story was about two months ago I had a client whos laptop wouldnt boot into Windows. It turns out that the hard drive was dead but she desperately needed the information that was on it. So, I hooked it up to my data recovery system which took about 15 minutes, started the recovery but it couldnt read the drive.
I tried various settings with this application but was still unable to read anything off the drive. I then tried a setup and a different data recovery application and could read some of the data on the drive but it was going terribly slow. I left this running for about a day and a half and managed to get about 31,000 files. When it finished I looked at what was recovered and it turns out it was just the "temporary internet files" folder which is obviously not the critical files they were after. I burnt these files to a CD anyway and replaced the parts/operating system for the laptop.
I wondered whether I should charge for the data recovery since it did take a fair bit of my time. In most cases, if something took me time but was unfixable or the client didnt want it fixed, I would still charge them for my diagnosis/bench time. However, in this case I decided not to because I didnt retrieve anything of value and I was already getting paid for the replacement harddrive and OS install time. This client was also a good client who I have earned over $1000 from in past jobs.
It is a good idea to have like the ones I mentioned above, but occasionally you need to bend them a little like in my second story. There is no point being a penny richer and a dollar poorer.
About the author: Bryce Whitty is a Professional Computer Technician who started his business when he was 17 year old. Bryce writes Technibble articles about Business How-to's and stories from "the trenches".
Article Source: Technibble.com
by Andrew Bimbo
Small businesses are crucial to our economy. Small businesses are an important source of job growth. Small businesses account for a large majority of jobs in start-ups, a key source of innovation and economic growth.
Here are some tips on how to manage a small business in a recession—stay lean, talk to your customers, and don't stop hiring and marketing, get listed in a business directory so you can be found. To keep your company lean, you should set and measure inventory targets and keep in daily or weekly communication with your sales and operations staffs. You may also want to weed out unprofitable customers (BusinessWeek.com, Oct./Nov., 2007). Every company has customers that cost more than they add to the bottom line. Identify them, evaluate how to make them profitable customers, and if that's not possible, politely hand them to your competition.
To keep from losing business, keep in close touch with your customers by networking with them regularly. Show that you care. Understand how their business is being affected and look for ways you can help. Lasting relationships are built in hard times. And look for new market opportunities, recognizing that when the business climate changes, customer needs will change as well. That may mean new markets will open up for you.
Develop strategies to land more customers. I counsel my clients that if they want to make their companies grow they will have to steal customers from their competitors, period. The pie is shrinking. For the auto repair shops, cars are more reliable and need less frequent service. In the restaurant world there's been overbuilding and the average number of meals eaten out has declined for the first time in a number of years. The successful small business is going to have to win a bigger share of that shrinking pie. The way to do that, particularly for small businesses, is to get listed on the business directory and use effective marketing solutions to generate sales leads for your business. Make sure you give every customer the best experience you can. That means clean restrooms, courteous staff, eye contact, handshakes. You've got to do this better than the other people out there. Another good option for local businesses is community involvement. Join a business networking group or the Chamber of Commerce. Sponsor a Little League team. Let the Girl Scouts do a car wash in your parking lot. This is part of bonding with your community and becoming an established part of it.
Nikita is passionate about small business leads and its positive impact on local communities and the overall economy. Feel free to subscribe and join my favorite small business resource and networking site:
http://www.tradeseam.com/smallbusiness/leads/small-business-leads
Article Source: Free-Articles-Zone.com
Small Business Finance the Smart Way
Are you a small business owner? If you are, you’ll know that running a small business is one of the most difficult things you’ll ever do in your life. You’re the company’s spokesperson, owner, founder, advertiser and investor. You are its inspiration. It is your livelihood and your passion. And like all passions it is all consuming.
It has you crunching numbers when you should be sleeping. It has you sketching out ideas on napkins in restaurants when you should be eating. But like any love affair the irritations are worth it. You know that almost nothing in your life can match the highs that your business gives you. So stick with it! Give your business all your heart and soul. But be sensible when it comes to your cash.
Business Finance.
Starting your business can be incredibly costly. Buying the machinery, renting the premises, purchasing the advertising space… well you get the picture, you’ve been there. You are also probably aware that the cost of kicking your business into life is so high it can affect your businesses ability to grow later on down the line.
You’ve established yourself as a great business; you know you have the ability to expand and to grow. But you just don’t have the cash to do it. But what is the best way to get that much needed cash injection? You don’t want to be taken for a ride. This is why you need to know about business finance.
Small Business Cost.
The first thing to do when you start investigating small business finance is to look carefully at what you want to achieve. Having clear goals is one of the basic rules of success in business. If you are going to borrow money to support your business you must have a clear aim in mind. That way you can easily track the success of any investment and see how much, making your small business grow will cost. So, determine what you want. Are you purchasing assets, such as land or machinery, or stock? Or are you looking to improve your market position through advertising, or expand into new markets? Whatever you’re doing be clear about your goals.
Small Business Finance.
There are two types of small business finance available to you. The first is the more traditional and common form, known as ‘debt finance’. This involves your company lending money from a financial institution, usually your bank. There are up sides to this deal, you get your cash and you keep all your business. You do have to pay more back than you borrowed in the first place, with the onus on you to repay as soon as possible.
However, if you have clearly identified a use for your money this should present no problem to you and allow you to expand quickly. This is why it is the route taken by the majority of small businesses. If you fail to pay back the money you have borrowed however the consequences are severe, as part of the agreement will involve collateral. Often, this could be your house.
A less common option is that of ‘equity finance’. Ever seen the TV show Dragon’s Den? Then you’ll know what I’m talking about. Equity finance is when an investor gives you the cash you need and in return you give him a share, or a stake of your business. As the investor has no assurances, unlike the bank, he or she requires a much greater pay off if things go well. They want some of those profits! However if things don’t work out, you won’t be sleeping in the streets!
Your Future.
So there are plenty of ways you can offset your small business cost. Small business finance is easy to get if you pitch correctly and your business is heading in the right direction. Whichever mode of business finance you choose make sure you keep following the dream and your passion might end up making you millions.
George Butler is a successful businessman who believes in utilising your finance resources to the best of your abilities. His areas of interest are online business marketing and technology resources to help business grow. Find out more australian business directory and small business productivity tools today.
Article Source: ArticleRich.com
by Stephen Bush
Most of us would like to view our banker as one of the family, and for most small business owners, the idea of "when to fire your banker" has probably never occurred to them. The average business owner is happy to have one less decision to make, so thoughts of firing their banker rarely become a top priority in the realm of working capital financing and SBA loans.
Banks are just not what they used to be (as most of us have by now realized). It seems like almost overnight banks have lost most of our confidence in a way that is similar to many automobile manufacturers that are now a shriveled and tarnished version of what they once were. In this shifting reality, business owners are now forced to adapt quickly to a changing environment for small business loans. Candidly speaking, even if their commercial banker is their best friend, small business owners are increasingly realizing that they must look out for their own best interests because it is unlikely that their business banker is up to the task anymore.
While this assessment might seem cold and harsh, it is nevertheless a candid and practical evaluation of current circumstances. Unwinding a long-term relationship with a particular bank or banker is likely to produce some of the same trauma that occurs when any positive relationship suddenly goes sour. In such circumstances, we should try to move forward after doing the best that we can. As in any change-related decision, the decision-maker (in this case, the business owner agonizing over the firing of their banker) should openly evaluate the probable consequences of not changing at all. If they are being truthful to themselves, most business owners will conclude that they should seek a new banker if keeping the old banker is holding the business back, either by bad advice or inadequate small business loans.
This discussion is in no way meant to suggest that all banks are now bad or that all bankers are now bad. In today's complex economy, there are still good banks as well as bad banks. Of course there are similarly both bad bankers and good bankers. When their current banking relationship involves a bad banker working for a bad bank, this is probably the worst-case scenario to confront for most commercial borrowers.
We will leave the discussion of good banks and bad banks to another report. Business owners should consider the following remarks when determining if it might be time to find a new banker.
The most prudent outcome for a business owner is likely to be firing both the bank and the banker if the current situation involves a bad bank and a not so bad banker. Sometimes a good banker can be transformed into a bad banker simply by working for a bad bank. Many banks have suddenly stopped making normal business loans and working capital loans, often without even explaining why. This can force an otherwise good banker to rationalize the actions of the bank in a way meant to keep the business owner as a customer while at the same time asking them to accept sub-par business financing. Just say no.
One of the most predictive signs of a bad banker is an increasing frequency of situations in which they are unable to achieve the results which were promised or suggested. This could include lowering a business line of credit after suggesting that it would either be increased or held at the same level. Another common illustration is based on circumstances in which the banker reports that they recommended a commercial loan for approval but the bank loan committee turned it down. Business owners should not be reluctant to hold their banker accountable for producing inadequate results, since results are what count for any business. For prudent commercial borrowers, firing your banker and your bank has become both a more acceptable and necessary solution when your business is not able to obtain sufficient business finance and working capital help.
Stephen Bush is a business/government advisor and small business loans expert. Steve has provided candid advice to business owners for more than 25 years => The Working Capital Journal - AEX Small Business Finance Programs
Article Source: ArticleRich.com
Computer Maintenance - Can You Afford To Offer A Fixed Price?
Computer maintenance contracts are one area of your business where you may want to consider using a price-fixed model. Time and materials pricing is almost always going to be better for you, but many clients respond well to fixed price computer maintenance contracts.
So, if you insist on doing a price-fixed computer maintenance agreement, there are some items you must make sure you cover off. You want to protect yourself as much as possible and the only way to do that is to write up a good and tight computer maintenance agreement.
If you don't have tight provisions, the well-intentioned and even well-trained internal computer guru (the guy you set up as the go-to guy in your absence) will make mistakes. This guy will cause you to come out to do some computer maintenance on things you didn't bargain for. You don't want to be spending too much time fixing things that shouldn't have been broken in the first place.
You can't afford to take that risk, and this is why your computer maintenance agreement must be solid. Here are some issues to consider when drafting a fixed price agreement for computer maintenance:
Will training be included? Are you responsible if an ASP goes down? Are you responsible for expansion as the company grows? Are you responsible if they get hit by a fire or flood? Are you responsible for computer maintenance if someone hacks into their system? Are you responsible for ISP or phone company outages or issues with the web and/or email hosting companies? Does your computer maintenance agreement cover issues arising from office politics or crossfire? Trust us, this happens! Does your computer maintenance cover patches, updates and upgrades? What happens if there’s pirated software? Have you built in computer maintenance time to cover user error or even negligence on the part of users or the guru? What happens if there’s internal sabotage, theft, or unauthorized software downloads? Are you taking into account viruses and worms in the computer maintenance agreement?
Bottom Line on Computer Maintenance Before considering offering price-fixed computer maintenance, you have to think about all these issues. If you don't cover off the contingencies, clients that have fixed price computer maintenance agreements will shift every burden under the sun to you. You can't afford to absorb those costs so think long and hard about offering price fixed computer maintenance.
Copyright MMI-MMVII, Computer Consultants Secrets. All Worldwide Rights Reserved. {Attention Publishers: Live hyperlink in author resource box required for copyright compliance}
About the Author:
Joshua Feinberg helps computer consultants get more steady, high-paying clients. Learn how you can too. Sign-up now for Joshua's free Computer Consultants Secrets audio training at http://www.ComputerConsultantsSecrets.com
Article Source: Amazines.com
Learn How To Price Your Products & Services
by Jeff Casmer
Some businesses don't have to worry about pricing because there is a market price for their goods or services that can't be modified, such as the price of developing a role of 35-mm color film at a Photo franchise shop, for example. But most businesses have to decide how to price their goods or service and whether it will be lower, the same as, or higher than the market price.
The price you can charge above what is needed to cover overhead is usually not a matter of supply and demand, although traditional economists might try to tell you otherwise. For most businesses, the price charged determines the type of client the business will have, not the number. Usually, changing the price only changes who your customers will be. A low price will attract few customers if you don't offer what they want, and a high price can bring in many if you do.
The price of your merchandise or service tells the customer a lot about what they can expect from your business. A low price often means that customers must serve themselves and that there will be no refunds or returns. In a service business, it implies amateurism and inexperience or, at best, that you're dealing with a start-up. A high price can often mean the opposite.
Prices that are out of line with those of similar businesses need to be justified to customers through added value. Customers will sort themselves out according to the value they want, and those who choose your business will do so because you meet or exceed their expectations. For example, a marketing research consultant who charges $1,000 per focus group research session will be expected to show up twenty minutes before the session to discuss it with the client. Afterwards the consultant will deliver an audio-tape and a one-page summary of the session. The same consultant charging $2,000 per session will be expected to meet with the client for at least an hour during the week before the session, to hold the session in an interview room with a two-way mirror and a video camera, and to deliver a verbal presentation and a five to ten-page summary a few weeks later. The pricing determines the client's expectations.
Pricing is subjective. You have to charge enough to make it a job worth doing - so that it pays for itself. And you can't charge so much that people are put off by the price. Pricing is not that important to a lot of people, particularly with small businesses. People are more interested in quality than price. If you're a good auto mechanic, customers will happily pay you $35 an hour, rather than risk leaving their car with someone they don't know who charges $20 an hour. Unless it gets outrageous, price will not scare people away.
There are three basic rules to follow when you are determining the price for any product or service:
(1) pricing should be easy to understand,
(2) the price should be complete, and
(3) the customer should have a reasonable number of pricing options.
The price should be complete. Not only should the customer understand how you arrived at your price, but it should also be clear to them that there aren't any surprises. Just recall for a moment the kind of pricing that charges you for every little part. "On sale now! This computer only $599 (keyboard and monitor not included)." What good is a computer without a way to put in data (keyboard) and a way to see what you're doing (monitor)? This is a form of deception, and not a very subtle one. Most of us would much rather see "This computer is only $999 (keyboard and monitor included)." It instills a much higher level of trust.
Last but not least, the customer should have pricing 0ptions. On the one hand, we've just implied that you should lump the components together and tell the truth about the minimum combination that is actually usable. On the other hand, one way to give customers a reasonable number of pricing options is to break the system down into interchangeable parts. The choice is yours and you must find what works best for your business and your potential customers.
Jeff Casmer is an internet marketing consultant with career sales over $25,000,000. His "Top Ranked" Earn Money at Home Directory gives you all the information you need to start and prosper with your own Internet Home Based Business.
Article Source: BylamoArticles.com
Small Business Finance - How To Understand Expenses On The Income Statement
Expenses like income are treated differently depending on your method of accounting (cash or accrual). Cash accounting says a cost is "expensed" when you write the check to pay for it. Accrual accounting expenses the cost when the transaction occurs whether or not money is exchanged, e.g. a supplier may give you 30 days to pay your bill or you may pay your payroll/sales taxes monthly. Accrual accounting attempts to keep expenses matched up with the sale that generated it. Bills that are paid in a lump sum for the year can be accrued (spread out) each month; e.g. unemployment insurance is paid in lump sums which throws off your P&L because of the large payment.
A solution is to record the payment to the Pre-paid Expenses account within Current Assets on the Balance Sheet. You can then divide the amount by the number of months paid and then each month reduce the Pre-Paid Expenses by the smaller monthly payment and record it in the Unemployment Insurance account on your P&L.
Most of your expenses come from your checkbook register but there is a couple you will want to watch out for.
The principle portion of your loans and credit cards that you pay on your bill are not expenses. The principle portion paid should go to the liability account on the balance sheet for the loan. The interest portion of the bill is an expense. You need to look at the bill and split out the two portions.
Items that are purchased in the $500+ range (start ups and businesses with sales less than $300,000) are considered investments in the business and should be depreciated over an IRS predetermined time span. This is where tax law and Generally Accepted Accounting Principles are applied. Larger businesses are able to expense bigger ticket items. A small business puts these $500+ purchases on their balance sheet under long term assets.
Don't worry about recording depreciation monthly unless your accountant has given you a schedule. Depreciation becomes a non-cash expense and accounts for the items you put on the balance sheet above $500 earlier.
Something to watch out for with depreciation is that the new tax laws have accelerated the ability to depreciated your assets, a good thing for lowering taxes but it often leaves a small business looking like it is not re-investing in itself. Ask your accountant to run the depreciation schedule two ways, one for taxes using the acceptable accelerated depreciation and the second way using the straight line depreciation based upon the lifespan of the asset for your business books. Why is this important? Banks run ratios that use assets to determine bank ability. As for you, it will give you a better idea of when to re-invest in furniture, fixtures, and equipment.
The most difficult thing about using P&Ls is consistent coding of expenses into their appropriate accounts. If you are unsure about which accounts to use, start with the ones on the tax return you will be using; e.g. schedule C for sole proprietors.
Bruce Hunter is the CEO of CORE Magazine in Denver Colorado. CORE is the leading online source for small business startup. Visit our free online resource center now to get free access to information on small business finance.
Article Source: EzineArticles.com
Working Capital Financing - Easiest To Get, Best To
Repay
by Ronn Jones
Any business, big or small, requires a continuous
hoard of
organized finance in order to keep functioning and
grow in
future. Risks and speculations are integral parts of
any
business and successful entrepreneurs often require
funds to
back up their strategies to undertake these risks
and
speculations. In order to obtain state of the art
gears and
infrastructure, forecasting a future market trend,
relocating or
growing beyond stipulated boundaries, running
successful
promotional campaigns or simply for paying off
debts, working
capital financing provides the ultimate fluid to
business.
In present times, keeping up with the latest
technology might
often become the key to a successful business.
Acquiring hi-tech
means for business would definitely increase
productivity and
work flow and as a result provide an edge over
competition.
However, incorporating these advanced technical
features for a
business would require a considerable amount of
investment for
their installation and knowledge base. It would
become
impossible to acquire them without a capital boost.
Office environment plays a very important role in
the
productivity of a business. A nicely planned office
space would
help employees to have a psychological advantage and
thus
increase productivity. Moreover, relocation and
growth prospects
often call for businesses to set up new bases at
different
places. This would ideally mean a complete new setup
and would
definitely need some amount of capital boost.
Without a sturdy
capital, this can never take place.
Advertisements and other promotional campaigns are a
must for
any business that aims to create a long-term impact
on the minds
of its consumers. It is often said that consumer
memory is short
and hence even though any particular business might
have been
afloat for quite some time, it still requires
extensive
promotional campaigns. These campaigns are often
very expensive,
as they require to be continued over a long period
of time.
Debts come as a part and parcel of every business.
Be it a
startup or an established business, debts are bound
to occur at
some point of time. These debts require to be paid
off at
regular intervals in order to maintain goodwill and
avoid
getting over burdened. And this would ideally
require an inflow
of cash to meet these demands.
Working capital financing proves handy when it comes
to meeting
these essential business needs. There are several
benefits that
working capital financing offers to entrepreneurs.
These
finances are easily available and cash is generally
disbursed
within 72hrs of application. It does not require any
application
fee. Unlike other forms of capital finances, working
capital
finance does not require any personal guarantee or
collateral.
But most importantly, the best part of working
capital financing
is its repayment procedure. Or should we say, no
procedure at
all. Well, it does not have any fixed repayment
schedule or time
frame. Only when a sale is made, a percentage
automatically gets
deducted from the sales amount towards the repayment
of the
capital. Moreover, loyal customers are often
rewarded with
incentives and special programs. Any fund acquired
through
working capital financing can be used for any
business
purpose.
Thus pondering
working capital financing is an admirable
decision when in need of spry financing for business
wants, as it's the easiest to get
and best to repay.
About the author:
This article is written by Ronn Jones, a marketing
expert with
years of experience in branding and internet
marketing. Check
out more information on
working capital financing.
Article Source: GoArticles.com
Internet Banking - Pros And Cons For Your Business
by
Naz Daud
Many businesses now use internet
banking as they deem it to be
even safer than the traditional method. Once
suppliers' details
have been entered in correctly the payment goes
directly to
their bank account within 3 working days.
Traditional Method
With the traditional method you get to deal with
real people but
there is a lot that can go wrong. The teller might
punch in the
wrong amount or you might arrive at the wrong time
and end up
queuing.
You might run out of cheques or even forget your
chequebook at
the office when you most need it.
Once you have written a cheque and mailed it you are
relying on
the post office to deliver your mail on time and to
the right
address. They often get it wrong.
You need to wait for a statement to find out your
account
balance unless you are brave and have hours to kill
whilst you
listen to "your business is very important to us,
please hold
while we transfer you to the next available
operator."
Opening Hours
With the traditional method you are tied down to
normal working
hours. Online banking is available 7 days a week, 24
hours a day
as long as you have access to the internet.
With internet banking you cut out the middle man and
transfer
the funds directly to your supplier's bank account.
It is also
possible to access your bank statements day or night
without
having to wait weeks / months for the banks to deal
with your
request.
Speed
Bank transfers are often dealt with speedier than
traditional
banking. Some of my transactions definitely happen
quicker
through online banking. I can also access all my
accounts from
one secure site. You can check your bank statements
for any
period in the past without having to search for a
long lost file!
Offers
Some banks now offer special deals for their online
business
customers only. It is possible to get cheaper loans
with lower
setup costs, credit cards with lower transaction
charges and
applying for a loan online is also quicker.
Security
Be very careful with your login details and do not
write down
your password anywhere.
Always log out once you have finished your business
and
regularly run anti-spyware software on your
computer. Spyware
tries to monitor your usage of your computer and
collect your
personal information and use it against you.
There have been breaches of internet banking in the
past but now
online banking technology is more sophisticated and
secure.
Suitability
Internet banking might not suit you if you like to
see who you
are dealing with. If you are a "technophobe" & feel
insecure
about doing large transactions online then it is
definitely not
right for you.
On the other hand if you hate queuing, despise the
time it takes
for duplicate statements and hate being bogged down
by
traditional opening hours then the convenience of
online banking
can not be beaten.
I use a mixture of online and face to face banking.
Some things
can only be discussed face to face with my bank
manager.
About the author:
Naz Daud -
Business Opportunity & Internet Franchises and
Internet Business Directory & Business Franchises
Article Source: GoArticles.com
Most businesses operate with the idea that profitability is a natural occurrence or that the challenge of developing profitable products or services is so simple that there is never a need to review pricing processes.
Often times I hear business owners, CEOs and even CFOs touting their business success due to profitable performing products and services where I often wonder what their true understanding of pricing is as it relates to profitability.
Sure all business wants to be profitable and all business believes they are actually profitable, but there is a large percentage of businesses out there that do not understand the concept of profitable products or services.
A truly profitable product or service must at least breakeven in preparation for profitability. Understand that the most common definition of breakeven is the point at which a product or service does not win or lose.
In other words, a product or service that has the ability to breakeven actually has no loss or gain either way. We need to understand how to add the percentage of profitability onto the known breakeven number which is where we will really get our profit.
The term of breakeven is also often used in production and fabrication where one can determine the number required to be produced to breakeven.
For example, if I were a manufacturer of joist hangers, I would want to know how many joist hangers I need to produce to cover my raw materials costs otherwise known as breakeven, where all the joist hangers I produce after that known number would be profit.
Contractors are a good example here where most contractors will factor in all of the raw materials costs of each project and add what they believe is an acceptable percentage of profit.
The error here is that contractors mistakenly factor in their labor costs into what they believe is their profit margin when at the end of a project they really don't profit what they think they should because the project took too much time to complete via labor expenses.
Unfortunately for most contractors and most businesses, that perceived percentage of profit that is added to the raw material figure is in fact just a perception of what they believe to be profit.
Smaller contractors and smaller businesses that operate as sole proprietors and are in fact truly operated by one person, really don't have to worry about the actual calculation of breakeven and proper pricing as much as the other businesses.
The key to proper pricing for profit is to capture three important parts of the pricing equation. The first being direct costs. Those are costs that you pay for in order to sell what you sell.
For example, if I am a cabinet maker I will have to buy the wood, the screws, the nails, the wood glue etc in order to produce a cabinet. Those are my direct costs. Some might define this as plain old inventory.
Next I will have to factor what is known as indirect costs such as other expenses that directly relate to the production and sales of those cabinets. I can also take into consideration those expenses that I also incur as a result of delivery and installation of the finished product such as labor, fuel, parking fees, etc.
In large scale manufacturing some businesses incorporate what is known as Activity Based Costing (ABC), where every aspect of production that is involved in the production of a product is taken into account and recuperated in the price of the product.
As a small business, I do not recommend trying to recuperate every aspect of your costs where sometimes we may price our product out of range of our consumers. This process of recovering costs in the price of our product is dangerous if not managed properly.
There are only certain expenses you can recover in the price of your product without making the price of the product so high and out of reach that no one will buy your product.
For example, as the cabinet maker we do want to recover the cost of installation via labor on each cabinet installation where we cannot recover the advertising expenses that got us that client in the first place. Advertising is a normal expense of business.
If we go back to the example of producing joist hangers, we will want to recover the cost of the sheet metal along with the cost of each employee that actually works on the production of joist hanger. This is another example of Activity Based Costing.
Remember that there is a difference between direct cost and indirect costs. Direct costs are those raw materials costs and indirect costs are those expenses we spend to make the products we make.
Direct costs and indirect costs now only gives us two of the three parts needed to properly calculate pricing. Next we need to figure out our overhead costs, or our overhead percentage rate.
This part is simple where all we need to do is divide our indirect costs into our direct costs which will give us a percentage. The trick here is to capture the appropriate amount of indirect costs. Remember, indirect costs are those additional expenses that allows us to produce the products or service we offer.
Based on previous articles I have published, we should be familiar with our income statement which will give us the number we are looking for when we try to find our indirect costs. As mentioned earlier, our indirect costs are those expenses that we incur to produce our product or service.
Luis Luarca is the Managing Partner of Allectus LLC, a management consulting company helping small to mid size businesses. For an extended version of this and other articles, visit http://www.allectus.com.
Article Source: SubmitYourNewArticle.com
One of the biggest challenges for business owners in the USA and in Canada is finding and securing the right type of financing for their businesses. Traditionally, business owners flock to banks when they needed business financing. However, the majority fail to get the business loan because they did not meet the bank’s tough lending standards.
As a rule, banks require that you have an extensive and solid business plan and countless financial projections. And if you are already in business, the bank will need three years of profitable operations before they’ll consider lending you the money.
But don’t be discouraged. If you own a business that is in operation you may have another option. This option is called invoice factoring.
But invoice factoring is not for everyone. It can only be used by businesses that are already in operation and sell to commercial or government customers. However, if you qualify, invoice factoring can be a lifesaver.
If you are like most business owners, waiting 45 to 60 days to get paid by your clients can be pretty hard. Especially because you still have to pay rent, suppliers and salaries while you wait to get paid. Factoring can eliminate the wait and get you paid in little as 2 days. This gives you the necessary liquidity to pay suppliers, rent and salaries. More importantly, it gives you the liquidity to grow your business.
How does it work? Simple. The factoring company buys your invoices and pays you cash for them. They wait to get paid by your customer while you get paid up front. As opposed to business loans, invoice factoring is easy to obtain. The biggest requirement is that you do business with reputable clients.
Factoring works well with software companies, manufacturers, distributors, staffing agencies, trucking companies and many other businesses. If your business needs financing, and you work with reliable clients, be sure to consider invoice factoring as your financial solution.
Looking for a business loan alternative? We can provide you with factoring and invoice factoring financing. Please call Marco Terry at (866) 730 1922
Article Source: SubmitYourNewArticle.com
Computer repair prices are ruled by both the competition and the owner's specific needs. But in reality, consumers should not have very much control over prices. If you present the customer with choices about computer repair prices, he will feel like his needs are being better met. And a satisfied customer will bring more future business.
Choosing The Service
Most customers will enjoy being able to choose whether or not to have repair services done. But many times a simple visit you as a repair expert will end with advice to fix something, which means the consumer will need to spend more money. If you review the computer repair prices with the client and let him choose whether or not to move forward, he will feel he has control over the situation and be more likely to both accept and be happy with the service.
Choosing The Package
To give customers even more control, you should be prepared to offer them various packages. Computer repair prices might be based on an hourly rate, so you could offer your customer this option. Then offer a second deal that includes a package that covers four service visits within the year. The second might seem like a better deal to the customer, and he might take it. If neither sounds appealing to the client, try offering a parts or repairs discount to him as part of the second option.
The Key Is An Informed Decision
Honesty is the key element in computer repair prices. As a responsible professional, you must inform the client of every billing policy. Most consultants will charge for one hour of work, minimum, even if the job is only a 10-minute one. If you are out-in-the-open with your clients they know they are making informed decisions.
Your prices should be designated based on your customers' needs. Keep in mind what they will see as a good value and base your price on this idea. The complete satisfaction of your clients is what is most important, and if they think they have received a good deal, you have done your job.
Copyright MMI-MMVII, Computer Consultants Secrets. All Worldwide Rights Reserved. {Attention Publishers: Live hyperlink in author resource box required for copyright compliance}
Joshua Feinberg helps computer consultants get more steady, high-paying clients. Learn how you can too. Sign-up now for Joshua's free Computer Consultants Secrets audio training.
Article Source: EzineArticles.com
How Can Your Business Benefit from Accepting Credit Cards
What are the benefits of accepting credit cards for a business? If you take a look at how different merchants compete online today, the answer is obvious. With the number of consumers who prefer to shop online continuously growing accepting credit cards is the only way a business can stay on top of the competition.
It is true that there are still a large number of consumers who are skeptical about purchasing from the web for fear of fraud and identity theft. But many are also realizing the advantages of shopping online. These advantages often outweigh the risks which can be avoided by taking the correct precautionary measures before purchasing.
More and more businesses are expanding their services by creating a website where prospective customers can place their orders without hassle and submit their payments via credit cards as well. This gives everyone the opportunity to shop without leaving their homes or without getting up from their office desks. Obviously, this enormous convenience also means more sales for sellers who accept credit card payments. If you’re business isn’t one of them, then you’re letting pass a huge opportunity for your business.
Business-to-business Benefits
Individual consumers are not the only ones who benefit. Other businesses benefit from online credit card transactions as well. Many entrepreneurs today operate their businesses with the help of business credit cards. This enables them to make wholesale purchases from suppliers without the need to pay in cash. Purchasing stocks or materials is now made more convenient even for those who have a limited budget.
This kind of set-up also works well for wholesalers because it gives them the opportunity to establish a partnership with other businesses who need their products and services. Finding leads and closing business deals are now more convenient and quick since payments and transactions all take place through the net. Buy and sell business has never been easier.
In addition, business credit cards are now equipped with reward programs that benefit not only the seller but the business credit card holder as well. Purchasing goods and products can bring the business owner cash incentives, travel rewards, and other perks and privileges.
Marketing Benefits
The introduction of online payment systems also paved the way for a lot of marketing benefits. Online advertising is more cost-effective than traditional methods of marketing. For instance, promoting your business website only requires a small marketing budget. There are also free online marketing tools that a business can use without spending a cent. Furthermore, promoting a business online often brings positive results in just short span of time if done correctly.
Every business owner must therefore consider the benefits that credit card payments can bring for the business. When you take a look closer, the advantages of accepting credit cards are many and with the right management of accounts, the risks that come with owning credit cards are outnumbered.
Business Credit Card Site provides complete reviews of the best business credit cards, tips and advice and direct online application for your chosen card. Visit: BusinessCreditCardSite.com
Article Source: ArticleRich.com
Computer Repair Prices: A Complete Price
Computer repair prices are fixed before you ever start a consulting job. Be sure to think about every aspect of the work you will complete before setting computer repair prices, and that these prices include every expectation of your customer.
The Main Factor Of A Complete Price
There is nothing more irritating than finding a computer or other technology item at the right price only to find out there is something you need that is not included. This is the definition of incomplete pricing, and as a computer repair specialist, you want to avoid it. Incomplete pricing will anger your customers and make them feel cheated.
Provide Extras
When you add something special to your computer repair prices as a bonus to your customer, your customer will feel good about the services you provide. Services like a free check-up visit post-repair will make the client feel he is getting a good deal. You should also make follow-up phone calls to add to your company's reputation and feed word of mouth.
Provide Details
Even before you do any repair work you should give your client a written estimate. The estimate must include computer repair prices and exactly what is included service-wise. Any changes you make need to be brought to the client before they are implemented in order to create a good relationship and encourage future business.
Computer Repair Prices And Reassessment
You should keep reviewing computer repair prices frequently as your business continues to grow. Make sure your fees include items such as travel costs or materials, or you create those as a separate item when appropriate.
You should also consider making changes in your pricing if you ever notice customers are regularly confused.
You should address computer repair price issues even if only a few clients seem concerned. Every client is important, and all should feel they are getting a fair and honest deal. Good feedback brings good referrals, which equals future business and your company's growth.
Copyright MMI-MMVII, Computer Consultants Secrets. All Worldwide Rights Reserved. {Attention Publishers: Live hyperlink in author resource box required for copyright compliance}
Joshua Feinberg has helped thousands of computer consultants get more steady, high-paying clients. Learn how you can too. Sign-up now for Joshua's free Computer Consultants Secrets audio training at http://www.ComputerConsultantsSecrets.com/blog/
Article Source: Amazines.com
Help Wanted - One New Customer for Growing IT Business
Every business owner needs new customers. They are constantly on the lookout for the next customer, then the next and so on.
Your computer services business is the same, you need customers. But do you need as many as you think? Maybe not.
Do you know how much each customer contributes to your business? How about how much it costs to bring in a new customer? Or to keep them after they become your customer?
It’s the classic dilemma of quantity verses quality. Would you rather have fifty customers that pay you $5000.00 per month or ten that pay you $5000.00 per month? The revenue per customer is a lot higher with the ten customers.
You make the same amount of money, but servicing fifty customers may just run you ragged!
Focus on acquiring quality customers and you’ll be amazed at how prosperous your business becomes.
High quality customers become part of your family, your inner circle. By growing your business slowly you can build lasting relationships that will benefit both parties.
I have customers that actively drum up business for me, because we have built up a relationship.
How do you create these ongoing relationships? Be selective when choosing your customers. Choose only the customers that you wish to retain long term. I’m not saying turn down business, but focus on your core business partners.
In our example we are getting $5000.00 per month from ten quality customers. If you were to add just one more of these customers per month, how much would you be making at the end of the year?
You’d almost double your income over the course of the year! How many of your friends in corporate America can do that?
_____
Secure Publications, is a San Antonio Texas publishing company specializing in "How To" books and special reports designed to enhance our quality of life.
Visit our site to get your copy of
How to Start Your Own High Profit Computer Services Business! An Essential Guide to Earning a Living as a Computer Services Entrepreneur Secure Publications or www.LULU.com/RickParrott Parrott Writing Services
Article Source: Amazines.com
Computer Repair Prices: How to Set Fees
You can set computer repair prices in many different ways. The following four methods give you an idea of how to set your fees, but ultimately you have to choose the one that works best with your personality and style.
Pricing by the Market
This type of pricing involves setting computer repair prices at whatever the customer is willing and able to pay. Using this method, fees will vary depending on the job. This method should be used carefully as many customers might feel this method of setting computer repair prices is unfair; if two customers start discussing your services, the price differences might come up.
Competitive Pricing
The second option for setting computer repair prices is basing them on the competition. If you charge a great deal more than your local competitor you should be offering a better service or product, and if you can’t prove you are, you could lose business. You should be cautious if you set your prices too much lower than your competition as well to avoid being considered a lower quality service.
Needs-Based
This way of establishing computer repair prices involves deciding how much money you either need or expect to make annually. Then determine the number of hours you will work and figure out how much you will charge hourly. The only problem with this method is that it isn’t very accurate. You can’t know how much business you will do per year, particularly if you are a new consultant.
Former Salary Plus Benefits
This type of computer repair pricing is very similar to needs-based fee establishment. To calculate this type of fee, determine your former salary and add in health care and other benefits. The total will help you arrive at your hourly rate.
Before you arrive at a decision about computer repair pricing, review the many methods. You may even want to use two of the methods together to get the best fit for you and your clients.
Copyright MMI-MMVII, Computer Consulting Blog. All Worldwide Rights Reserved. {Attention Publishers: Live hyperlink in author resource box required for copyright compliance}
Joshua Feinberg can help you get more steady, high-paying computer consulting clients. Sign-up now for Joshua’s free audio training on proven computer consulting secrets from the Computer Consulting Blog now at http://www.ComputerConsultingBlog.com
Article Source: ArticleRich.com
Ways
To Finance Your Business
by
Bill Henthorn
There are many ways to finance your business. Your own
money
that you have saved over time is the most obvious, but
if that
is not available then other sources must be found.
Relatives and
friends could be a source for temporary funds, but
usually not
long-term loans. Reliable long-term financing of a
business is
something that all businesses face at sometime during
their
life.
Cash flow
Cash flow is without a doubt is the biggest problem that
all
businesses must face. It does not matter the size of the
company. The bigger the business, the bigger the cash
flow
problem. A growing young business is very likely to
experience
cash flow problems. The luxury of ready cash is one that
comes
with time and success for a business. In the meantime
there is a
need to get short term financing so the business can
operate. If
the owner's savings have already been tapped, then other
sources
must be found. If the owner has a good credit rating
then the
bank may consider a signature loan to the individual and
not to
the business. The bank could also give a revolving line
of
credit that is backed by real estate or stocks.
SBA
loans and factoring
Another way to get financing is to see if you can
qualify for a
SBA loan. This loan is again made to the individual and
not the
business. These are not quick to get or easy to get for
the
business borrower. Without some assets, you are not
likely to
qualify for such a loan. Further down the list of ways
to get
money for the business is to factor your account
receivables.
This can be easily done if you are selling to quality
clients.
Each factoring company has its own rules and what
invoices they
will accept for loans. These loans are limited only by
the
amount of your invoices and their quality. If all of
your jobs
are custom in nature, then you could demand a 50%
deposit on all
work you accept.
Angel financing
Another source of money is seeking out what is known as
angel
financing. This money comes from wealthy investors who
are
seeking out promising young companies that should
prosper if
they have the money that is needed. There are several
advantages
to this financing, as it does not have to be repaid
until the
company is taken public or becomes so successful that
the angel
can be bought out. When you accept an angel you in
affect take
on a partner. This is not all bad as the angel could
have
contacts to grow your business. Successful individuals
like this
cannot only bring in capital, but also business
expertise that
could help your business grow faster and with a more
solid base.
You can find these angels by looking on the Internet or
asking
bankers or brokers in your area. They exist everywhere,
but are
usually found in bigger cities.
Bring in a partner
You can advertise for a partner to come in and help you
grow
the business. There are people in every city that are
looking
for a business opportunity that have money for the right
situation. This is a longer-term answer that should be
considered only if you feel the person that you are
considering
would be someone you could live with. Do not swap a
temporary
problem for one that will be long term in its effect.
Partners
in a business are similar to partners in a marriage.
There are
good unions and bad ones. You never know for sure what
you are
getting until later.
Private personal loans can be obtained, but the
interest rate
that will be charged will be higher than what the bank
will
charge. Second mortgages on real estate are usually
rather easy
to obtain if there is sufficient equity in the property.
The
problem with all of these loans is they are made to the
owner
and not the business. If the business fails, the owner
is still
liable for the loan. When a business is very successful
the
banks and other lenders will make the loan to the
business
without the backup of the owner. But that will not be
the case
with a young growing business.
There are many options for raising money to finance a
business.
The problem with all of them is they depend on having
assets,
good credit or significant cash flow when compared with
the loan
size. There are very few options that do not tie up the
business's assets and the owner's. Few lenders will make
loans
to the business by itself. One of the few loans made to
the
business is factoring loans. Using the invoices as
collateral
for the loans makes this possible.
Private offering to friends
Another method to raise money is to make a private
offering of
stock to a small group of investors. This is easier said
than
done, but it is possible if you have the right group of
people
available. It has to be a small group or it would be
considered
a public offering and not a private investment. The
rules are
very stringent on this type of stock offering. Get good
advice
before you attempt it.
A business cannot thrive if it is under financed for
long
periods of time. This problem must be resolved and the
sooner
the better. The struggle to live within the cash flow
stream is
one that all businesses face and it can make it
extremely
difficult for the business to prosper if they are always
fighting the finance battle.
Solving this problem is worth the time and trouble, as
it will
allow the business to have some breathing room and enjoy
its
growth. All possible solutions should be explored, as
some are
more of a fit than others. Obtaining fresh capital is
always the
way to go if the payback is not onerous. Getting the
money is
always the goal, but it has to make economic sense over
the long
run. Be careful not to jump from a small fire to a big
fire that
can consume you and your business in debt.
Once the financing issue is under control, a business
owner has
the capability of growing the business in a manner that
is
sustainable. This is the goal of every business.
Financial
control is a precursor to successful growth, which can
be
carried forward into the future. When financing concerns
are put
in their place, the business will be able to grow with
fewer
problems or at least not those of a severe financial
nature.
Cash flow must always be watched and managed so the
bills can be
paid in a timely manner. Maintaining a good credit
rating is
always in the company's best interest.
Seller Financing
Up to 90% of businesses sold are financed in some way,
by
either the seller or from other outside sources. Usually
sellers
do this when a buyer has difficulty qualifying for a
conventional loan or meeting the purchase price. Read
our
article on the
seller financing basics
for more information.
Conclusions
Financing a business is never easy and a young business
faces
even more difficult problems to overcome. If the owners
have
money then the problem is fairly easy to solve. If there
are no
assets or extra money available all sorts of schemes
will need
to be played out in order to live with money short
falls.
Short-term money will need to be found from many
sources. The
ideas presented have been used by many businesses to
overcome
short-term money crunches. Surviving over time seems to
allow
the company more room. Every money crunch that is
resolved will
ease the problem for few days or even weeks. As a
business
grows, the money problems will always be there, but
maybe not as
severe in nature.
About the author:
Bill Henthorn formerly was principal broker and owner of
a
resort / commercial real estate brokerage in Honolulu
which
specialized in representing sellers in transactions up
to
$50MM.He currently serves as the marketing director of
Acquireo.com
Article Source: GoArticles.com
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