Cheryl Rickman Interview

Cheryl Rickman Interview

Cheryl Rickman runs her own group of businesses CherryJam - with her partner James in Hampshire. Her first company WebCritique a web copywriting and marketing consultancy, helps other businesses to improve their online presence and Cheryl provides workshops to local businesses on these issues. WebCopywriter was borne from WebCritique and provides web copy for small and large businesses alike. Her clients include AnitaRoddick.com, Business Link Wessex, Motorola and Microsoft. Cheryl’s other main business is the UK’s largest independent online music magazine - ilikemusic.com.

Cheryl has been a freelance writer for the past nine years, writing on business issues for Better Business and Internet Works magazine, and interviewing business leaders and music celebrities. As well as writing The Small Business Start-Up Workbook, which has a foreword by Dame Anita Roddick, Cheryl is author of booklets, 111 winning ways to promote your website successfully and 127 insider ideas on creating a winning website and has been a Judge at Hampshire’s Awards of Web Excellence for the past two years.

The Interview

DS: What inspired you to follow an entreprenerial path and in particular what inspired you to write the Small Business Handbook?

CR: Well, I was never the ‘selling packets of sweets’ kind of playground budding entrepreneur at school, and my main dream was to become a freelance writer, but somewhere at the back of my mind I liked the idea of running my own business, something small and (dare-I-say-it) manageable. (I now know that smaller businesses are often harder to manage due to the lack of people to delegate tasks to).

However, it was mainly circumstance that led me to start-up, and the support and encouragement of my partner, James. And I think it is that circumstance - which creates entrepreneurs. The majority of self-made types are ordinary people doing extraordinary things.

Also, I guess some of my ‘entrepreneurial spirit’ came from my mum. She passed away in 1991 when I was just 17. And, to cope with the trauma and loss, I began to fill my time with trying to further my writing career. Years after her death, one of my mother’s best friends told me that mum always believed that I would someday run my own business. I had no idea that she thought that until a few years into my first business, but that gave me the inspiration I needed to think about writing my book. Having succeeded in business through a combination of determination and my own trial and error, I longed to write a book that would offer insight and encouragement to young entrepreneurs like me who dreamt of running their own business, but didn’t have the faintest idea where to start. Ultimately, The Small Business Start-Up Workbook is the culmination of that dream.


DS: Did you have any help setting up WebCritique your first company or were you going it alone?

CR: In terms of advice I received help and guidance from my Local Enterprise Agency, but got most of the information I needed from the web. In terms of finance my personal bank turned me down for a business loan, so I set up a new account – great while it was free, but not so useful now it isn’t. Choosing the right business bank is a crucial decision and worth spending time on. I’m with Lloyds but wouldn’t recommend a bank who’s business managers are difficult to get hold of and don’t see the longer-term bigger picture. My book includes questions to ask banks, and you can compare UK banks at www.bba.org.uk or www.moneyfacts.co.uk

DS: What was the biggest challenge you faced in bringing your idea to fruition? How was it overcome?

CR: The first was to challenge my own assumptions about whether or not I could do it. Everybody has some element of fear going into it for the first time, but I had such a great support mechanism in my boyfriend James, that he fuelled my own belief in my ideas and capabilities. The second challenge and probably the biggest ongoing hurdle that is shared by most small businesses is funding and cash flow. Finding start-up capital was far from easy, so I started up with a minimal amount. It’s certainly easier to borrow bigger sums than small amounts. In the early days I also found getting clients to pay on time was a challenge. Now this is less of a problem, but it is still a general rule that the bigger the customer, the longer they will take to pay you. Another ongoing challenge is finding balance in terms of thinking time. I think mostly about the businesses and what’s going on in them, and need to find a way to switch off more frequently.

The bottom line is that, as an entrepreneur, you have to challenge yourself fairly regularly and be open to that concept. You’re often going to have to enter unchartered territory and do something that is foreign to you and your skillset, but that’s what happens when you wear many hats. And certainly, on start-up as a sole proprietor, you are the receptionist, marketing department, MD, fulfillment house, sales team. You wear ALL the hats, so being challenged on a daily basis becomes part and parcel of life as an entrepreneur.

Finally – realizing that you may have to rely on others who don’t share your vision/dream and who may/will let you down is a challenge to accept and overcome. Once you find reliable and impressive suppliers you can trust, from a great web developer to a great business card supplier, you learn to stick with them.

DS: What makes you most proud of your entrepreneurial achievements ?

CR: The book does because it’s something tangible that I can pick up and say ‘Yes! I did this!’

I must admit, I’m often so busy that I only rarely stop to ‘smell the roses’ and appreciate what I’m achieving. This is a lesson in itself that I have to learn to do more and is certainly something that I suggest others do in my book. People (myself included) should list their achievements more frequently. Some books advise to do this on a daily basis, writing down mini-achievements.

I guess the main milestones that make me feel proud of my achievements are:
The friendships and contacts I’ve gained since embarking on my entrepreneurial journey, including a few ‘celebrities’ such as Anita Roddick and Wendy James, among others, plus a whole host of people who are part of the same online networks as me (such as ecademy.com and Digital Eve) who inspire me and make me feel proud. The people I’ve managed to interview both in the business world and music world makes me feel proud. Learning is so important in life, and being able to learn from those who are ‘living the dream’ is important.

Knowing that we’re still doing it and are stronger than ever makes me feel proud, with I Like Music (www.ilikemusic.com) it’s taken us four years, but we are now at a point where some of the larger well-known brands and companies who’ve spent pots of cash but with minimal results are now taking notice of us and can see our strengths. We now have four years worth of great content, contacts and traffic and are ready to take the site to the next level, but we’ve not forked out on flash offices or streams of staff. And with Web Copywriter it’s great that the original business 'WebCritique' has grown organically into this niche area of writing for the web. The fact that all businesses are still going makes me feel proud.

DS: How did you actually fund your business to get it off the ground?

CR: WebCritique was launched with just a small amount of my own savings, plus a £1500 bank loan. My personal loan bank refused me for a business loan, so I set up a business account elsewhere. I also sold my car. Since then I’ve financed the business on cash flow, plus overdrafts and occasional loans, which is also the case for I Like Music, which is entirely self-funded. WebCopywriter cost nothing as the design was done in house.

I wish there was more cash readily available in the form of grants to small businesses in all areas: both affluent and under-privileged areas.

DS: What attributes do you think make a successful entrepreneur?

CR: That’s a tough question because there are so many variables that go toward making a business actually work; from personalities and people to the viability of an idea, state of the market and, often, circumstances outside a business owner’s control. As I say in my book, 'Certainly, there is no entrepreneurial elixir you can swiftly drink to make you automatically successful (except your own home-made passion-fuelled one). But you can prepare yourself to seize opportunities and make it happen for you.'

However, if I had to list attributes that would make the entrepreneurial life manageable, I would say, you need energy, passion and to be dedicated and thick-skinned. You need to be able to cope with times when your social life will suffer. You should be a great communicator and someone who enjoys networking, be it face to face or online. But probably the most key attribute is the desire to learn. That includes learning from mistakes.

In my book I speak to a variety people from Anita Roddick and Stelios to Simon Woodroffe, among others. All of them told me how important listening and learning is as an entrepreneur. And, as soon as you think you know it all, you’re history as a business. As a boss, if small business owners can remember that just because they started the business doesn’t mean they know more about marketing than the marketing chap, businesses would flourish easier. Learning should be a continuous endeavour, so a capacity and interest in learning is a crucial attribute for any entrepreneur.

DS: What do you believe are the necessary elements for a business venture to succeed?

CR: Good people. You need the right people working with you, be that in terms of partnerships or staff. They are the lifeblood of your business, so you need to value them and they will perform well. As Mike Southon says in The Beermat Entrepreneur 'People buy from People.' So ensuring that people working for you share your vision and at least can serve your customers in a way that they themselves would wish to be treated, is the first step.

You need to plan, as it’s easier to be passionate about getting somewhere if you know where you’re heading and how you’re going to get there. Plus cash-flow can kill businesses, so it’s important to know what is going to be coming in and out of the business all the time. Again, being open to learning is a key element. Many businesses fail because those driving the business are so caught up working ‘in’ the business, instead of ‘on’ the business, that they can’t implement changes, find time to learn or stay creative or on the ball. That’s why planning and hiring the right people with complementary skills who you can delegate to are essential success factors.

These are just some of the elements included in my Start-Up Checklist which appears in the book after the chapter called: LESSONS FROM LEADERS IN BUSINESS: Success Stories, Mistakes and Top Tips

DS: How essential do you see a University education in achieving success as an entrepreneur?

CR: Not essential. I went to University to a) make my parents proud b) delay the prospect of working for a few more years and c) because with A-Levels reading the Media Guardian I realized all the jobs I wanted to be able to do were only open to graduates. For me, although I ended up on lower or similar income to many of my peers, I needed to be a graduate to get my editorial and writing positions. However, I’d have learned a great deal more if I’d gone into a publishers and worked my way up. I believe work experience counts for a lot more (just as some people I sent my CV to as a graduate believed). What’s more, my partner James is more entrepreneurial than me (and he has the gift of the gab, is more confident, etc). He didn’t go to university, so that proves my point that university education is definitely not essential in achieving business success. Indeed, my BA (Hons) Degree in Media with Cultural Studies may well have hindered me in some ways. I could have been working all that time and saving up to fund my own business. And, if you look at the most successful people in UK business, the majority of them didn’t go to college let alone university. Richard Branson, Simon Woodroffe…

DS: What are the three most important lessons you have learned about business and entrepreneurship?

CR: 1. Everything always takes longer and costs more than you think it will (even when you are fairly stringent with your planning).

2. Go with your gut feeling. Learn how to feel what that is and go with it. The buck stops with you, so you need to get as many decisions right as you can. Some of these decisions will involve others trying to sell you something: support or a service or a partnership. There is a time for diplomacy and sometimes you will need to listen to your instincts and opt not to go ahead with a certain partnership or project.

3. Listen and learn constantly. You must never think you know it all as nobody does. People like to give advice and tell you what they know about things, so you can be constantly learning. You also need to delegate, and appreciate that there are people out there who can compliment your talents. Remember, it’s all about people.

DS: What advice would you give to an aspiring entrepreneur?

CR: Do your research, find out what your potential customer needs are and test the market where possible. Surround yourself with a good support network and work out your break-even point before you take the plunge. Buy or create a checklist that you can go through before you set up, making sure you’ve considered everything from your company name and marketing to your website, staff and expenditure needs.

DS: What's the number one book you would recommend to aspiring entrepreneurs?

CR: Of course my own book – The Small Business Start-Up Workbook. However, another book I would heartily recommend is Anyone Can Do It by Sahar and Bobby Hashemi of Coffee Republic, and also Anita Roddick’s Business As Unusual – both are inspirational and help you get things into perspective. Both are available from Amazon.co.uk, or you can order Anita’s books via her own site at www.anitaroddick.com

DS: What memorable mistakes, if any, have you made in business? What did you learn from them and how can they be avoided?

CR: Earlier I mentioned the importance of going with your gut feeling. Well, if I’d done that on at least two occasions, I could have saved a lot of time, credibility and money. We chose a web development team based on referral who ended up being appalling. They made very technical looking sites which had a reduced Google ranking, terrible indexability and were poorly designed and coded. Effectively they talked the talk but didn’t walk the walk. If I’d followed my gut instinct earlier on when the partnership was being discussed, I’d have walked alright… away from them. The partnership cost us credibility, lost Google ranking, plus a whole year of our time. Fortunately, we found a new developer who has made our sites the best they have ever been. But that’s just part of the roller-coaster ride of running your own business.

DS: What are the best and worst things about being an entrepreneur?

CR: Best things are the freedom and flexibility it gives you in terms of trying to reach your goals and in being your own boss. Plus, it’s nice to feel in control of your destiny. The worst things are that nobody can understand what it’s like to run their own business until they do it themselves and the fact that you lose a lot of ‘me’ time and social life when you work long hours on your business. Not getting paid holiday is another negative and personally it’s my occasional inability to switch off from business mode.

DS: Are there any other thoughts, insights, or advice for aspiring entrepreneurs that you'd like to add?

CR: If you believe in your idea, have some proof to back it up and have the energy to be your own boss, go for it. Remember, it’s better to try and fail than to not even bother to try then get to the end of your life wondering, ‘what if’ and ‘if only I’d done that.’

Student Loans and Shop Online

Consolidate Student Loans and Shop Online

If you run a home business, you know that budgets can be pretty tight. Saving money wherever possible can be the difference between the business that succeeds and the one that fails. This article represents a broad survey of things you can do, from consolidating your student loans to getting small business deals on supplies, that will help you spend less each month.

Next Time You’re Online, Buy Something

Billions of dollars are spent each year online. Rather than suggest that you hurry and move your business online, I’d like to suggest that you add some of your dollars and cents to those billions already spent. Companies who move operations online reduce their overhead costs and often pass on those savings to you. Computers, airplane tickets, even student loan consolidation, can be purchased or arranged online. It has been my experience that I can find almost everything I want online for less than I can find it anywhere else. Next time you’re thinking about biting the bullet and making that big purchase, spend a little time shopping around online and see if you can’t save a few dollars.

Consolidate Student Loans and Get Your House in Order

Chances are good that you’ve been out of school for a while, but don’t skip this paragraph. If you consolidate student loans or other financial obligations, you will typically save a great deal of money each month on your monthly payments. Running a home business often blurs the line between personal expenses and business operating costs – do yourself a favor and make sure you have your personal financial affairs taken care of before you find yourself overwhelmed with past obligations. The government might not have cared about your credit score when they gave you those student loans, but banks looking to give business loans are a whole different story. Making sure everything is taken care will keep financial doors open that, once they’re closed, are very difficult to reopen.

Score One for the Little Guy

Believe it not, most people want small businesses to succeed. There are a lot of people willing to give you a break on prices because you own a home business, but you might need to ask about it. Office supply retailers and computer distributors sometimes offer discount prices to registered small business owners. The savings are not always monumental, but even the smallest savings multiplied over a year or two start to add up to pretty substantial amounts. Shop around to see if the suppliers you use are willing to offer you a discount on supplies or equipment.

Do Without…For a While

I’m probably not the only person that drove a car that was older than I was during college, or who ate Ramen noodles more than once almost everyday. Don’t forget the lessons you learned while you were a poor college student – the same ability to make do with what you have can save you a lot of money in the long run. I had just graduated from college and I wanted to get a new computer to replace the older, though fully functional one I was using. This was before I took my own advice to consolidate student loans, so money was still pretty tight. I wanted to kick myself when I saw that the price on the computer I bought dropped $300 in three months. Some expenses are necessary and unavoidable. For everything else, look to see if you can manage with what you have for a while longer.

Don’t Do It Alone

Nobody likes data entry – it’s time consuming, boring, and time consuming. If you find yourself spending too much of your day punching numbers into spreadsheets, consider hiring someone or outsourcing it to another company. If you think that you can’t afford the part-time salary, do an inventory of your time and see if what you would pay someone is worth the amount of time you’ll be able to invest into the meatier matters of your business.

I know I’m risking sounding like your father giving you a lecture about money, but remember that a penny saved is a penny earned. A successful business minimizes costs while maximizing profits.

Consumer AdviceWhat is identity theft?

Consumer AdviceWhat is identity theft?

What is identity theft? (NC)—Identity theft occurs when someone uses your personal information without your knowledge or consent to commit a crime, such as fraud or theft.

Once they steal the information and manipulate it, identity thieves can invade your personal and financial life. They can use stolen identities to conduct spending sprees, open new bank accounts, divert mail, apply for loans, credit cards, and social benefits, rent apartments and even commit more serious crimes which, once arrested, they pin on their new identity.

ID thieves get your personal information by:

• Stealing personal and private information from wallets, purses, mail, your home, vehicle, computer, and Web sites you've visited or e-mails you've sent.

• Retrieving personal information in your garbage or recycling bin by "dumpster diving".

• Posing as a creditor, landlord or employer to get a copy of your credit report.

• Tampering with ATM and terminals at stores, which enables thieves to read your debit or credit card number and PIN.

• Buying the information from a dishonest employee working where personal and/or financial information is stored.

• Removing mail from your mailbox.

• Searching public sources, such as newspapers (obituaries), phone books, and records open to the public (professional certifications).

For more information on how to protect yourself from ID theft, and other common consumer scams, visit ConsumerInformation.ca . It's a Web site created by federal, provincial, territorial governments and their partners specifically to provide Canadians with convenient, one-stop access to hundreds of objective, reliable, current consumer information sources.

Corporate Shells

Corporate Shells

A corporate shell could be liken to a house that had been occupied by a family, prior to the family moving out it was a home. But now it is just shell, a skeleton a plain house with nobody in it, but if a family was to purchase the house and moves in, it becomes a home.

Similar, a corporate shell was once the home of an operating company but once the operating company ceases to reside there because of adverse circumstances ( bankruptcy or liquidation ) all that remains is the shell.

Buying and selling corporate shells has become big business, just a couple of years ago a corporate shell sold for approximately $150,000.00 today they go for upward of $500.000.00. Talk about inflation! The increase in price is due to increase scrutiny by the Securities and exchange commission and the demand for shell by Chinese companies seeking to become listed in the United States.

As usual when there is money to be made the vultures appear with their unscrupulous practices. In most cases the shells are own by the same operators who are also acting as consultants to the companies they are helping to become public. This may be a conflict of interest but they are able to hide their ownership well with the help of securities lawyer who may also have a piece of the shell.

The situation described above creates a huge conflict of interest that the regulators have yet to figure out because of the intricacy of the many participant who work in harmony and are able to conceal their actions from the regulators.

If the consultant indirectly own a shell and is trying to sell it to the company that they are advising, how well is he going to represent the client when it comes to price and the amount of shares that they are to Retain? And how about with assisting the company in performing the proper research on the shareholder list and the history of the shell.

Don’t get me wrong there are many honest and well meaning consultants and shell vendors who established the shells for the sole purpose of creating a vehicle for private companies to go public, Just like you have the unscrupulous characters that appear every time there is an opportunity to make money, you also have honest enterprising individual who see an opportunity and take advantage of it.

Once the operating company purchases the corporate shell and merges into it, the owner of the private company receives a majority of the shell corporation stock (usually 90-95% ) through a new issue of stock for the private enterprise.

The public corporation will normally change its name to the private company’s name and elect a new Board of Directors which will appoint the officers of the company. The public corporation will usually have a base of shareholders sufficient to meet the requirements for listing on the Nasdaq Small Cap Market of Nasdaq Bulletin Board. Although some shell have as few as 35-50 shareholders and are currently listed on Bulletin Board or the NQB pink sheets.

At our company we don’t have an inventory of shells nor do we recommend a single vendor, instead we recommend several and after the private company selects a vendor we approach the process as if we were buying the shell for ourselves.

Create Real Magic And New Customers

Create Real Magic And New Customers

Do you want a small business opportunity that could create more business for you? It is a chance to sell to the government. Bring in new customers is always the number one goal of many business owners. It is the life blood of any operation and if you want your business to stay healthy then you must bring in fresh new customers and keep them coming back with a great service or product.
I would like to introduce you to the 59.005 Business Development Assistance to Small Business program.
This program is excellent for bringing in new business and revenue. Get help from this program to sell to the government. They will assist your small business in obtaining a "fair" share of contracts and subcontracts for Federal government supplies and services and a "fair" share of property sold by the government.
What an excellent opportunity this is! I would rather sell a lot more to meet my goals than to have to get a small business loans or small business grants.
What they can do for your company is:
(Restriction of bidding/award to small business only)
(1) Your application will set-aside the chance to increase the Federal procurement and disposal requirements awarded to small business for a great small business opportunity;
(2) You will receive consultation with procuring activities on structuring of procurement and sales planning to optimize small business participation;
(3) They will also review and analyze you small business capacity, credit, integrity, perseverance, and tenacity when challenged by contracting officers and certifying competence of such firms to perform as prime contractors, as appropriate, and monitoring performance of certificate of competency holders throughout contract life;
(4) They will also review of subcontracting plans and programs of large prime contractors to determine the extent that they are providing subcontracting opportunities to small businesses, veteran-owned businesses, service-disabled veteran-owned businesses, HUBZone qualified businesses, small disadvantaged business, and women-owned small businesses;
(5) When they give you consultation and advice for small businesses requesting assistance on government procurement or property sales matters, you must keep in mind that all consultants are not the same. It is very important to get one that you like and is passionate about their job.
(6) They will also help you with specific contract administration problems;
(7) They will see if you qualify for the SBA's procurement and financial programs;
(8) By doing this they want to breakout of items from a the same old stale source of buying in favor of full and open competition in order to achieve savings;
(9) One of the goals that they have is to review small business programs at Federal buying activities to evaluate effect on small business participation and recommend changes; and
(10) management of the Central Contractor Registration's Dynamic Small Business Search, a nationwide Internet database of information on small business, a marketing tool for small firms and a "link" to procurement opportunities. It pays to at least get registered and listed in this data base.
Existing and potential small businesses are eligible to apply. A small business is a business entity organized for profit, with a place of business located in the United States and which makes a significant contribution to the U.S. economy through payment of taxes and/or use of American Products, materials and/or labor.
Generally, an employee based size standard not in excess of 500 employees is used for manufacturers for wholesalers, average employment not in excess of 500 is used; for general construction, a revenue based size standard not over $28,500,000 is used; for specialty trade construction, revenues not over $12,000,000 is used; for retail and services contracts, revenues not over $6,000,000 is used; and for agricultural enterprises, gross annual sales not over $750,000 is used.
Self-certification of documentation is sufficient for representation as a small business, women-owned small business, veteran-owned small business and service-disabled veteran-owned small business. SBA certification is required for status as a HUBZone small business, 8(a) small business, and Small Disadvantaged Business.
The range is about 15 days for certificate of competency; no approval is required on other programs for this .small business opportunity.
The government grants that guarantees this small business opportunity programs for small business grants totaled: FY 04 $4,606,675,000; FY 05 est $3,250,000,000; FY 06 est $3,000,000,000. Administrative Expenses: FY 04 $38,013,000; FY 05 est $34,188,000; and FY 06 est $36,406,000
In fiscal year 2004, $11.2 billion in government grants for prime contracts was set-aside for procurement limited to small businesses to give you an excellent small business opportunity.
Title 13, Code of Federal Regulations, Part 125; "Government Contracting Programs;" Government Contracting and information for this small business opportunity from SBA offices. Forms to obtain necessary assistance are provided by SBA field offices. To find where they are listed you can go to Associate Administrator for Government Contracting, Small Business Administration, 409 3rd Street, SW., Washington, DC 20416. Telephone: (202) 205-6460 http://www.sba.gov
Other small business opportunity programs that are related to selling to the federal government are:
17.301, Non-Discrimination and Affirmative Action by Federal Contractors and Federally Assisted Construction Contractors can use this small business opportunity;
17.303, Wage and Hour Standards;
36.001, Fair Competition Counseling and Investigation of Complaints;
39.001, Business Services is another small business opportunity;
43.002, Technology Transfer is the chance to participate in another small business opportunity;
59.006, 8(a) Business Development is a good small business opportunity that you should consider.

Do You Need Bad Credit Help

Do You Need Bad Credit Help

? Are you one of thousands with no
credit and no collateral to help secure approval, or you just
have extremely bad credit and no one wants to help you, and all
you hear is stories and more stories?

Bad credit is a term used to describe a poor credit rating.
Common practices that can damage a credit rating include making
late payments, skipping payments, exceeding card limits or
declaring bankruptcy. Bad Credit can result in being denied
credit.

Bad credit can result in a negative rating from the credit
reporting agencies. Many factors can contribute to someone
getting a "bad credit" rating, among these are non-payment of an
account or late payments over an extended length of time.
Whether non-payment of an account is willful or due to financial
hardship, the result can be the same, a negative rating which
will result in a low credit score. However, lenders are more
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A credit score is defined as a statistical method of assessing
an applicant's credit worthiness. An applicant's credit card
history; amount of outstanding debt; the type of credit used;
negative information such as bankruptcies or late payments;
collection accounts and judgments; too little credit history,
and too many credit lines with the maximum amount borrowed are
all included in credit-scoring models to determine the credit
score.

Raising your credit score is possible. It's a well known fact
that lenders will give people with higher credit scores lower
interest rates on mortgages, car loans and credit cards. If your
credit score falls under 620 just getting loans and credit cards
with reasonable terms is difficult.

Here are five things that you can use to raise credit score.

1. Correct obvious mistakes.

Your credit score is what shows up in your credit report. Review
your reports from all three credit bureaus for accuracy once a
year as well as several months before applying for a loan.
Changing a mistake on your report can take 30 days to three
months, or more. Get Your credit report from the three major
bureaus: Experian, Trans Union and Equifax.

2. Pay Your Bills On Time

Your payment history makes up 35% of your total credit score.
Your recent payment history will carry much more weight than
what happened five years ago.

Missing just one payment on anything can knock 50 to 100 points
off of your credit score.

Paying your bills on time is the best way to get started
rebuilding your credit rating and raising your credit score.

3. Reduce your credit card balances.

A heavily weighted factor in your FICO score is how much money
you owe on your credit cards relative to your total credit
limit. Generally, it's good to keep your balances at or below 25
percent of your credit card limit, said Jeanne Kelly, founder of
The Kelly Group in Brookfield, Conn., which helps clients
improve their credit scores.

4. Don’t Close Old Accounts

In the past people were told to close old accounts they weren’t
using. But with today's current scoring methods that could
actually hurt your credit score.

Closing old or paid off credit accounts lowers the total credit
available to you and makes any balances you have appear larger
in credit score calculations. Closing your oldest accounts can
actually shorten the length of your credit history and to a
lender it makes you less credit worthy.

If you are trying to minimize identity theft and it's worth the
peace of mind for you to close your old or paid off accounts,
the good news is it will only lower you score a minimal amount.
But just by keeping those old accounts open you can raise credit
score for you.

5. Avoid Bankruptcy

Bankruptcy is the single worst thing you can do to your credit
score. Bankruptcy will lower your credit score by 200 points or
more and is very difficult to come back from.

Once your credit score falls below 620, any loan you get will be
far more expensive. A bankruptcy on your credit record is
reported for up to 10 years.

The reality of a bankruptcy is it will limit you to
high-interest lenders that will squeeze out high interest rate
payments from you for years.

It is better to get credit counseling to help you with your
bills and avoid bankruptcy at all costs. By getting credit
counseling instead of declaring bankruptcy you can raise credit
score over a much shorter period of time.

Financing and Refinancing Programs

Financing and Refinancing Programs are Plentiful

As cliché as it may sound, the “Money makes the world go round” adage still holds true. Especially nowadays when everything and anything tangible or intangible can be bought with one’s dollars, money is apparently of extreme importance. What if you want to buy a home or start your own business? How do you go about your financing endeavor? Read on for the best avenue that will “show you the money!”

Coupled with management and planning skills, financing is what will aid one in venturing into business if he/she wishes to make it grow and get the desired profit. Many financial institutions are offering various types of financing that may assist in tackling this matter.

To better understand the wide array of financing options for your money needs, here is a rundown of the types of financing that you can avail.

1. Revolving Line of Credit

This is the most usual and most low-cost kind of business loan for small and medium-sized businesses. A revolving line of credit will fund a company’s working capital. This working capital typically consists of the sum of present assets minus the present liabilities.

2. Non-Capital Goods Financing

This is a type of financing that is for short-term deals. These deals are with settlement terms of about a year or may be less for buying goods, i.e., construction materials, products, and other non-capital stuff.

3. Project Finance

Financial companies offers financing for projects that need longer than 5 years repayment terms. Depending on the predicted cash flows and kind of revenue that a project is about to generate, this kind of financing undergoes extensive analysis.

4. Capital Equipment Financing

Extension of funding plans is possible if one chooses this financing. As the transaction requires it to be, the extension can go from 1 to 10 years.

5. Subordinated Mezzanine Debt

This is one of the more expensive types of financing compared to revolving line of credit and term debt. Lenders usually ask for equity like warrants to add on their earnings from interests.

6. Equity Financing

This form of financing is for investors that are brave enough to face major risks that this kind of financing brings. But with that warning of a great risk comes the expectation of high returns on the part of the equity investor.

7. Piggyback Financing

This program caters to homebuyers who avoid the required mortgage insurance when the mortgage is in excess of the 80 percent of the purchase price. Two mortgages with possible varying costs are available for the borrower with this type of financing.

8. Creative Financing

This option is when the buyer of the house is with a third-party lending institution, i.e., a bank or a loan company.

9. Owner Financing

This is when the property owner or seller finances the buyer.

These are some of the most popular financing possibilities one can acquire for his/her business or any money-involving activity. What would further serve you best in your decision making on which to stick to is considering payment terms you can afford and the right timing when applying for the funding plan.

With the many options mentioned, you are more armed with the several financing choices that will help you pull it off with yourbusiness, home buying or any endeavor that requires financial aid.

Forgive All Ebay Sins

Forgive All Ebay Sins!

Over the years, I have been amazed at the “blinding” greed and reckless approach
to commerce that some business owners have employed. Lying to customers, selling inferior merchandise, and not offering refunds, left a firestorm of irate customers in their wake. Without fail, all of this “ill will” led most businesses to bankruptcy, and in some cases, Federal Prison.

I realize that not everyone engages in “business criminality” that rises to the level of fraud and incarceration. Most people try to be good stewards, and approach their enterprise in an honest and forthright manner. For those of you who own thriving business concerns you already know that in most cases the customer is always right. You make sure that you communicate effectively, refund monies if the buyer is truly unhappy, and try to meet the needs of the people who buy your goods or services.

However, there are more than a handful of Ebay sellers that are of the mind that customer service and effective communication is not something that they need not participate in. Take the case of a woman named Barbara, (Nickname: BobAnn) who recently posted her disappointment on the Ryze Business Network:

Quote:
Barbara Cerda wrote:
Greetings Everyone,

“When will sellers on Ebay understand that customer service is key? And when will Ebay sellers learn using customer friendly approaches can only make their business grow?” Again today I've bought from a less than friendly seller.

Thought I was placing a bid and instead bought the item at the buy now price. Of course the seller refused to allow the retraction, nor was I allowed to place a bid. I always pay for my winning bids immediately upon email confirmation.

And did so in this case. But it would have been customer friendlier for this seller
to accept my retraction to be replaced with a bid. He would have gotten repeat business from me and my friends. His "Buy Now" price is 30% over the retail price for this item. Lesson learned by me again - that there are way too many sellers on Ebay out to grab a buck and the hell with fair practice. Lesson learned yet again.”

BobAnn
End quote…

The operative phrase here is “repeat business from me and my friends”. There is no better endorsement of your product or service than word of mouth advertising. Lack of flexibility on the part of the seller, not only cost them one customer, but also destroyed the possibility for future business. Good news travels fast, but bad news travels faster!

As an auction seller, (Ebay auction ID: LevelBest77) I would have accommodated her request right away. And while I have never had anyone use “Buy It Now” by accident, I have had several people over the years ask me to retract bids. The number of people who have made that request can be counted on one hand! Some, did not even understand the process, (bid retracting) and I was more than willing to guide them through it.

People make honest mistakes, and you should never “abuse” a buyer for doing so. If you plan to get into Ebay auction selling for the long haul, always practice good will toward your customers. Unless someone is totally unreasonable, and you have done everything in your power to accommodate their request, never deny people the ability to change their mind, return an item, or retract a bid! Developing good will also requires that you anticipate customer needs…..

For instance, I had a few overseas customers bid on a wireless router. This particular item needed to be powered with a Universal Adapter, since voltage requirements in France and Australia are obviously different from those here in the United States.

I made this abundantly clear to both bidders before they sent me any payment. The purchase of such an adapter, not to mention the shipping price, would have doubled the US retail cost. I told them that they could probably get the product cheaper at their local electronics stores. Without hesitation, I let them out of their obligation to pay for the item. I then contacted the next highest bidder and offered that person the chance to make the purchase.

Both bidders thanked me for my honesty. They had forgotten about the electrical differences. I could have ignored that little detail, and sold them the item anyway. I just had to put myself in their situation. Think of how frustrated they would have been if I did not reveal that information. Buyer’s remorse would have set in quickly, once they realized that they could have purchased the same item for a lot less in their native countries.

While the benefits of these actions may not have an immediate effect, you can be sure that should I ever have another “item of interest!” these two gentlemen would not hesitate to purchase from me. They can count on me to accommodate their needs, instead of catering to my wants. Creating this type of good will instills trust, and the knowledge that you have the customers best interest in mind.

“Me thinketh thou doth protest too much!

Do you accentuate the positive? Or, do you run on negativity? Negative Ebay feedback is a tool that everyone should use with restraint, or not at all. As a rule, I never leave negative feedback. Unless someone has blatantly lied about your product, or attacked you personally without merit, then I would not leave any feedback in the “minus” side of the isle!

“Flame” wars are not pretty. I have seen a lot of unnecessary back and forth “banter” that could have been avoided, if they (the seller) just resisted the urge to make their “two cents” known. Sometimes it gives customers the impression that you are more concerned about arguing, then conducting your business.

I have also witnessed seller feedback that has included some pretty foul language. Engaging in this type of verbal sparring is not much of a confidence builder either. It is more telling of what you are, then about revealing the sins of your customers. Don’t go out of your way to register a negative response if you can help it. Heed the sage advice that our Mother’s use to tell us: “If you can’t say anything nice, don’t say anything at all!”

“What we have here is a failure to communicate!”

Communication with your customers should not amount to the sound one hand clapping! Bottom line, if someone e-mails you with a question--answer it! Here is an example of the type of feedback I obtained by doing just that……

“He was very Helpful and cooperative in answering questions. Follow-up: Will DEFINITELY use his services anytime he has items of interest! Great Seller!”

The gentlemen who left this positive review, wanted to know about some of the particulars of a “Mickey Mouse” clock I had up for auction. His wife is a collector
of all things Disney, and thought it would be a nice surprise for her birthday. The
clock, to say the least, was in sad shape. It was incapable of keeping time, and the
only part of it in working order was the second hand. I thought for sure that he would be disappointed with the item despite full disclosure of all of it’s imperfections.

To my surprise, not only did I receive positive feedback, but he also told me that his wife absolutely loved it! In this instance, one man’s junk, truly, is another man’s treasure! I never thought this item was worthy of any praise! The time it took to answer his questions—all of five minutes!

I know that some of you will say that I am not being realistic. You just can’t answer e-mails all day; “I have a business to run!,” you might proclaim. If you plan on making a living on Ebay, then you better think about hiring someone to help you answer your daily inquires if it is just too overwhelming. If you specialize in a particular product, set up a Frequently Asked Questions page to any Auto-Responder.

If you use Ebay on an infrequent basis, and have less than thirty listings a month, then you really don't have any excuse not to provide great customer service and e-mail communication. You shouldn’t be inundated with questions regarding that many items, unless the product you are selling is technical in nature.

If you ignore your customers, they will go away. Good customer service should be woven into the fabric of every good business. I cannot overemphasis the importance of this issue. I continue to be perplexed by the fact that it is last on the list of business priorities for some Ebay sellers!

Will good customer service and communication alone make you rich on Ebay? That would be a resounding "no”. You will have to understand your market, and provide products that the Ebay community will bid on consistently. There will be “bidders & buyers” out there that will make mistakes and commit some auction sins! Forgive all Ebay sins and you will be rewarded with happy, repeat customers!

Government Grants

Government Grants - What are they and how to get them ?

None of these Government Grants require a credit check, collateral, security deposits or co-signers, you can apply even if you have a bankruptcy or bad credit, it doesn't matter. Its Free Money Never Repay!

The Federal Government is Giving out over 155.5 billion dollars in Business Grants!

Receive Government Small Business Grants for virtually any type of business. Whether it is to start a business or expand your existing business there is money for waiting just for you. The Federal government provides this money to help existing small business owners and those who want to start their own business change their lives and achieve financial independence.

The United States Government wants your Small Business to succeed and you will be amazed at the lengths they will go to help ensure your success. At Grant Seeker Pro™ we have designed a State of the art software program that will aid you in locating the perfect grant or grants for your small business!

Once you find the programs for Small Business Grants that fit your needs you can use the Grant Seeker Pro™ software program to complete the applications! Don't forget to use your Grant Seeker Pro™ to complete your business plan also!

Facts About Government Business Grants:


# Over 20 million people gets Government grants every year

# Over 10 BILLION dollars for entrepreneurs in the form of Low Interest Small Business Loans.
# 4,000,000 people get money to invest in real estate!

# Did you know that if every business in America were to apply for and receive an equal share of Government Small Business Grants that each and every business in this great country would receive a $70,000 free cash grant?
# Did you know that H. Ross Perot has received Government Small Business Grants?

# Did you know Paul Newman has received Business Grants.
# Did you know Donald Trump has used Small Business Grants to fund many programs.
# Most recently the airlines have received Billions in grants to make sure they stay afloat through these troubled times.


Learn about complicated Tax Refunds or Tax Credits. These are programs largely overlooked by the Small Business owner. At tax time these special incentive programs can (depending on the size of your business) save you tens of thousands of dollars!

In spite of the perception that people should not look to the government for help, the great government give-away programs have remained so incredibly huge that if each of the approximately 8 million businesses applied for an equal share, they would each receive over $70,000.

Thought Affirmative Action was dead? If you did you thought wrong. Though many of the catch phrases are no longer in use most of the money that was available still is.

Every year Congressmen and Senators make promises to the people that put them in office. Many of those promises are made to minority groups in specific areas but most are made at a National level.

There are also Reserved Free Government Cash Grants now available for the following special interest groups. American Indians, Veterans, Family Members of Veterans, Low Income Families, Community Block Grants, Non Profit Organizations, First Time Home Buyers, Artists, Musicians, Nurses, Teachers, Researchers, The Disabled, People Suffering From HIV and AIDS, Substance Abuse. There are literally Millions Available; All you have to do is ask!

Can You Imagine receiving:

One Billion Dollars in Minority Business Grants for business start up!

Millions in Minority Business Grants to expand your existing business!

Receive $8,000 in Minority Grant for Free Legal Advice!

Millions Available In Minority Grants for the purchase of your first home!

Receive $75,000 Housing Grant to Remodel Your House!

Receive $6,000 in Minority Scholarship Grants for College Tuition!<

High Volume Merchant Accounts

High Volume Merchant Accounts

As your business continues to grow and customers buy more goods and services, you may want to consider joining those who are applying for high volume merchant accounts. When you are approved for a high volume account, you can get good prices on mid- and non-qualified sales, along with debit processing, monthly statement fees, and additional expenses. The greater your volume of business, the better deals you may be eligible for when working with financial institutions or companies who can provide this valuable service.

The way it works is that you apply for a merchant account at a bank that offers great pricing and low-cost fees. These can be packaged in a variety of ways. For example, you may want to pay a few cents for each transaction, but if you experience high-volume sales, this could become a costly option. The other route to go is to pay a low monthly overall percentage, often between 1% and 2%, for the entire sales volume you experience via your credit card and debit-processing program. High volume merchant accounts can save you money over time because you will be able to pay smaller fees for each transaction or get a better rate for the amount of profit that you bring in.

If you currently have a sizable volume of sales and perhaps expect to do more in the near future, keep in mind that high volume merchant accounts have helped others in your position. Your customers will appreciate the ease of using up-to-the-minute technology for processing their orders with your company. And your employees likewise will be happy to turn their attention to other tasks within the organization. Your company may even see profit increases within the first few months as the word spreads about your merchant account status and credit card processing capabilities.

You can apply for high volume merchant accounts through your local bank or a preferred financial institution that can process Visa and MasterCard credit accounts. Your application should demonstrate that your company is not involved in illegal or shady dealings that the underwriters are unlikely to approve, including gambling, pornography, pharmaceutical offerings, and telemarketing. Then you will want to be able to show that your company is fiscally solvent and maintains a solid credit history. You might include documentation to support the notion that your company will be able to pay merchant account fees in a timely manner.

In upgrading your business to accommodate e-commerce solutions like credit card processors through a merchant account, be sure to calculate in advance the type of fees or expenses that will be affiliated with this move. You don’t want to start something you can’t finish, so project related expenditures for the coming year to see how they fit with your company budget. If it appears a credit card processor or wireless unit will tax your operating budget, you may be able to take out a low-interest loan to fund the initial start-up expenses. Discuss this option and any other questions you might have with the bank representative who manages applications for high volume merchant accounts.

Bank for your Home Business

How to Choose a Bank for your Home Business

You should thoroughly consider your business needs when selecting a financial institution or bank for your small/home business. You may want to consider the following points:

- The types of products and services that are offered.
- The bank's criteria for qualifying for a loan.
- The minimum balances for accounts, interest rates and charges for account services.
- Location and Access to ATMs
- Online Banking Services

One bank may specialize in home loans or auto loans while another may focus on commercial loans for businesses. Some banks may only offer basic deposit accounts while others have lock box services, sweep accounts, and even online banking! It's very important to evaluate your business needs before you select your banker.

Here are some of the things that your banker may be able to help you with:

- Help you with the cash management needs of your business.
- Offer investment products of varying maturities or risks.
- Provide advice regarding what it will take to qualify for the loan that best meets your needs.
- Provide special loan programs for small businesses, including SBA loan programs and other government-guaranteed or agency loans.
- Assist you with finding financial information on your industry.

So compare different banks in order to find the one that will serve your business's needs and will also provide support and assistance during the infancy stage of your business. Selecting a bank that you can work with will be especially important as your business grows.

Start shopping around by gathering information to help you make this important selection. Compare interest rates on deposit accounts and basic consumer loans (most business loans are negotiated, so the rates won't be posted at the banking center). Also, look carefully at the charges for services. Tell them about your business and the form of organization so that they can tell you what special products and services or restrictions might apply.

Before selecting a bank, be sure to have a good understanding of your own business needs, and what you need from your bank. If you know what you will need from a bank, it will be much easier to evaluate and compare between various services. Remember, it is a good idea to establish a relationship with a banker, before you need money. The right banker will be someone that understands the needs of emerging and growing businesses. They will be interested in your business dreams and will help you achieve them.

How to Cut Credit Card Debt

How to Cut Credit Card Debt

Most Americans have too much credit card debt. Duh, we've all heard that
before, right? Only now its gotten a bit personal... right again? You
personally have too much credit card debt and its about to drive you crazy.

Well there IS hope so don't file those bankruptcy papers just yet. One
major thing you have to keep in mind is your creditor is probably very
willing to work with you. Its in their best interest to have you making
some payment versus no payment. So here are a couple points to help you deal
with your credit card debt.

The first thing you have to do is simply contact your creditor and let them
know your situation. Ask for a lower interest rate or a repayment plan.
You might not have thought of it because you're just naturally so polite but
its a very good strategy to be courteous at all times when negotiating with
your creditor. Polite, but firm. Come across as one who knows what you're
asking for and expect to get it. If you're not sure what you're asking for
in the first place you might consider a reputable credit counseling service.
There's a lot of great, honest organizations out there whose mission is to
help you work things out with your creditors.

Next you've GOT to stop using your cards. Cut them up, freeze them in a tub
of water, whatever you need to do to get them out of your wallet or purse,
do it! You simply can't keep adding to the problem by running the debt up
any higher. This is actually one of the hardest parts of cutting your
credit card debt. Its like you're addicted to spending money you don't
have. So go cold turkey and drop the habit.

Start paying the ones with the highest interest rate first and work from
there. How do you do that? Concentrate on those high interest rate cards
by paying more than the minimum balance each month. The minimum is just
designed to keep you on the hook longer anyway. The credit card companies
are in this business to make a profit and want to have you paying them for
years to come. Even a little extra each month makes a big difference in the
long run.

Lastly, keep your chin up and have a good attitude. Millions of folks just
like you have begun to cut their credit card debt by following the common
sense steps outlined above. You can do it too. Good luck.

Investments and Business Ideas

Improving Your Financial Situation With Investments and Business Ideas

With financial information and virtual business transactions just a click away, people are finding themselves more financially savvy and in the know on how to fatten up their financial portfolios.

While most people rely on banks and properties to secure their retirement days, others who are smart enough and worldly enough with the affairs of the green buck opt for more lucrative financing opportunities. They do not just let their money sit idly inside a bank vault and wait for the interest to add up. A few actually roll their money and invest them in the high stakes of stocks, bonds and currency.

Stocks can be very risky but if you start small and give yourself time to get the hang of it, you may enjoy it and may even discover that you have the gift of foresight. Watch for stocks that are just on the rise. These are often companies that are very promising. Their value will still be relatively small compared to blue chips so you really don’t have to shell out much. If you want to risk more, you can actually buy blue chips or those stocks that established companies offer to the public. Examples are Microsoft and Dell.

Bonds on the other hand may have modest returns but they are probably the best and most secure of financial investments. Bonds come highly recommended and should not be absent in any financial portfolio.

Currencies are trickier to deal with as their value are affected by so many forces, local or within the country involved, regional and global. Though banks also offer currencies, most have high exchange rates. Others just buy but they do not sell, choosing to keep the currencies within the financing institution.

Debt is perhaps the single worst thing that you can do to damage your financial portfolio. Do not get the wrong idea, debt can be good when used the right way. In fact, successful businessmen have debts too. This is because they have their money tied up in other ventures that have a higher return of investments than the interest of the loans. After all, you cannot make money without having some money to begin with. So, if you feel that you can yield more money using the money that you got from a loan, then by all means, get a loan!

What should be avoided are debts that come from credit cards. Credit cards hold the highest interest rates in debts perhaps because the whole debt business is risky. Getting into deep credit card debt can mean paying a lifetime for the interest without even touching the principal. It is important that when you use the credit card, make sure that you pay on time and that you pay for the whole amount. Otherwise, you would find yourself slowly falling into a financial trap.

It will be risky but the fastest way you can earn big money is to venture on a business. Even something as small as operating a cafeteria in a factory or school or engage in buying and selling of goods over the Internet, can be a great start. With the advent of technology, it is even easier now than before, not to mention faster, to conduct financing and business transactions. You don’t even have to meet face to face. You just have to learn to communicate through emails and mobile phones.

This is not intended to give financial advice and professional advice is suggested before investing.

Business Using Three Simple Steps

Incorporating Your Business Using Three Simple Steps

You may publish this article in your ezine, newsletter on
your web site as long as the byline is included and the
article is included in it's entirety. I also ask that you
activate any html links found in the article and in the
byline. Please send a courtesy link or email where you
publish to: support@multiplestreammktg.com

-------------------------------

Incorporating Your Business Using Three Simple Steps
By Abe Cherian
Copyright ? 2005


Incorporating your business today is much easier than it
was 10 or even 20 years ago. Here's three steps; securing
your corporate name, filing the necessary documentation and
paying the necessary filing fees. You can complete these steps
yourself, use an incorporation service provider or have an
attorney complete them for you.


When incorporating, you must first ensure that your
corporate name is available in the state in which you want
to incorporate. Your corporate name must not be deceptively
similar to a name that is already in use in that state. A
name check must be performed in the state of incorporation.


You must also prepare and file all the necessary
documentation. the Articles of Incorporation, with the
appropriate state agency in the state of incorporation.



Additionally, you must pay all state filing fees, initial
franchise taxes and any other initial fees. Each state
charges a filing fee to form your corporation in that
state. These state filing fees vary greatly by state. They
range from under $100 to over $400.


Do It Yourself. Use An Incorporation Service Provider Or
Use An Attorney. If you decide to incorporate on your own,
you need to be well versed in the laws of the state of
incorporation. You will need to prepare and file your own
documentation and undertake all communications with the
necessary state agencies.


If you use an incorporation service company, you submit the
necessary information, and the company checks your name,
prepares and files your documents and pays the initial
state filing fees on your behalf.


Incorporation service companies charge a nominal service
fee on top of the state filing fees, and you can submit all
the necessary information to them over the Internet.
Attorneys will also undertake all of the necessary steps
for you. If you use an attorney to incorporate, you can
expect to pay their hourly fee on top of the state filing
fees.


How long this will take depends on the time the state
requires to approve and return your completed Articles of
Incorporation varies by state. On average, it takes 4-6
weeks to become incorporated.


Most states will allow you to expedite the filing process
for an additional charge. Expediting filings typically take
about 1 week. Those charges also vary by state.


After your corporation is formed, an organizational
meeting of directors must be held. At this meeting bylaws
are adopted, stock is issued and the incorporation process
is completed. Minutes of the organizational meeting should
be kept in a corporate record book.


Incorporation is an important step in the life of a
business, but unfortunately the true value of incorporating
a business is often not seen until the business faces a
negative situation such as a law suit or bankruptcy. A
primary advantage of incorporation is the limited liability
the corporate entity affords its shareholders "The Owners".



Typically, shareholders are not liable for the debts and
obligations of the corporation. Creditors will not come
knocking at the door of a shareholder to pay debts of the
corporation. In a partnership or sole proprietorship the
owner's personal assets may be used to pay debts of the
business.


Other Advantages include

¡è A corporation's life is not dependent upon its members.
A corporation possesses the feature of unlimited life. If
an owner dies or wishes to sell their interest the
corporation will continue to exist and do business.


¡è Retirement funds and qualified retirement plans "like
401k" may be set up more easily with a corporation.


¡è Ownership of a corporation is easily transferable.


¡è Capital can be raised more easily through the sale of
stock.


¡è A corporation possesses centralized management.


Corporations are not without disadvantages. The primary
disadvantage to a corporation is double taxation. Profits
of a corporation are taxed twice when the profits are
distributed to shareholders as dividends. They are taxed
first as income to the corporation, then as income to the
shareholder.


All reasonable business expenses such as salaries are
deductions against corporate income and can minimize the
double tax. Further, the double tax can be eliminated by
making the S corporation election with the Internal Revenue
Service.


Other Disadvantages Include


¡è There is a certain level of complexity and expense of
forming a corporation.


¡è Corporations have extensive record keeping requirements.


¡è Operating a corporation across state lines requires the
corporation to qualify to do business in the other state.


Both the Limited Liability Company "LLC" and "S"
corporation also provide the limited liability to the
owners/shareholders of the company, without the potential
disadvantage of double taxation. While like corporations
these two entities also have advantages and disadvantages,
it is a good idea to learn about all three when deciding
what form your business should take.

What Are Business Loans?

What Are Business Loans?

Business loans can be defined as money lent for a specified amount of time at a specific interest rate to a specific person or people that operate a business or plan to operate a business. This definition is very broad, but so are the various types of loans available to business people. Deciding on which type of business loan that you and your company will benefit from the most is very important. Often times, a start-up business or someone that has never owned a business will find themselves more or less applying for a “personal” loan. This can be a very risky endeavor, mixing business loans with personal loans, however, often times it is the only available means for first time business owners.

One of the first things personal business owners need to do is establish business credit. Business credit can help you get a business only loan without using your personal credit. Establishing business credit can be done by:

1.) Opening up a business credit card account and paying it in full.

2.) Buying equipment and supplies from companies that will report good standing to the business credit bureaus.

3.) Having a good business plan with potential earnings, letters of intent, and any type of customer contracts already laid out.

All of these types of endeavors can help in receiving a business loan. Often times, financial institutions require in-depth business plans, be prepared to spend days working on just the certification paperwork prior to applying for a business loan. A business only loan can be obtained in the business name without use of personal credit as long as the business can justify the loan amount and the ability to pay it back.

There are several different types of business loans available, ranging from those secured with collateral, non-secure loans, which are based upon the credit worthiness of the applicant, and even government loans for small business ventures, women and minorities. Government loans are those loans secured by the government; in most instances these loans are available when the business or owner can prove that the community will prosper based upon the business at hand. For the most part, government loans are based upon personal credit.

The basis for which you may need or require a business loan may vary. Some of the most common business loans available to business owners are:

• Acquisitions or a loan to acquire an existing business
• Inventory loans
• Account Receivable Loans
• Working Capital Loans which converts a companies assets into working capital
• Equipment Leasing
• Commercial Property loans
• Warehouse financing
• International business loans
• Franchise loans

One of the most important tools when deciding on what type of business loan your company needs is research. Researching the different types of loans available to you and your company can save you money. First, look into the different type of business loans available to you in your state. Many states have government loans available; some even offer grants, which is money available for specific purposes that do not require repayment. Research the different type of Federal loans available. You can do this at the following website: www.sba.gov. Call your local bank and investment companies regarding the business loans they have available for you. Many times, business loans are not that hard to acquire. With research and a good business plan, your dreams may come true.

Is Cold Calling Dead?

Is Cold Calling Dead?

And if laws are being passed to put it to rest once and for all, how do we generate business from now on?

Opinions on the subject vary greatly depending on the background of the individual. For example, most of the old-timers are vigilant in preaching their belief that the only possible way to succeed in the world of selling is to make no less than fifty calls each and every day. On the other hand, younger salespeople tend to become frustrated with this rather quickly and begin looking for more innovative ways to generate business.

I was just reminded of how ingrained this cold calling belief is. I spoke with a friend who left a sales position with a major merchant processing bank only a few weeks after starting. The reason? He was required to make a minimum of 400 cold calls each and every week and to document his activity with business cards. He is highly experienced and knows how to generate business without knocking on 400 doors per week and decided to discuss the strategies that have worked for him in the past with his managers. Their response? This is how we've done it for forty years and we're not about to change.

That response, in my opinion, is the reason we're seeing record business bankruptcies today. The world and our economy have changed and are breaking into bold, unchartered territory. But the management of most business organizations insists on doing things the old way, even though the old way produces less and less results as time goes on.

The concept of "Permission Marketing" is slowly but surely gaining popularity as the old idea of "Interruption Marketing" becomes less efficient and more wasteful. There are several reasons why cold calling in particular has become less effective as we move further into the Information Age. It destroys your status as a business equal. It forces you to spend time with unqualified prospects while the qualified ones are buying from your competition. It annoys people and is increasingly considered to be rude and disrespectful. Moreover, it may now be illegal (and in several states it's been illegal for quite some time). But, most importantly, it destroys sales peoples attitudes.

Where is the good news in all of this? Well, the great news is that if you begin using new, innovative, "Information Age" methods for prospecting, you'll be miles ahead of your competitors who are wasting their time annoying people with cold calls. In this age of the Internet and vast communication networks, why on earth would anyone knock on doors or make cold phone calls to look for business?

Think of the power at your fingertips: there are literally dozens of ways to use the Web and e-mail to let the idea of Permission Marketing do its magic. Allow customers to raise their hands and let you know they're interested. Begin finding, implementing and reaping the benefits of this bold, new Information Age we are in. Your competitors will be the ones standing in bankruptcy court and explaining their "do-not-call" violations to the government while you are happily taking orders.