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Debt Management Plan: Steps TO Make You Debt-free

admin — Sun, 22 Jan 2012 05:10:14 +0000

The financial plight and mental condition of a debtor is understandable by anybody who understands the value and power of money. Being under debt might incite many tumultuous thoughts and worries in a debtor’s mind, but the time would require him/her to think and act tactfully with practical and wise solutions to come out of all indebtedness. Federal Trade Commission and US government, has thus taken several initiatives and extended its helping hand by empowering and authenticating the Debt Settlement companies and Credit Counseling Agencies with their effective Debt Management Plans and Debt Relief options. A simpler definition of a Debt Management can be the regular practice of financial discipline and the habit of spending less than one earns, but in professional terms it implies the organized and legal method of bringing the debtor’s debts under control by a third party through application of relevant debt relief options like Debt Settlement, Debt Consolidation, Credit Counseling etc. Debt management is a structured repayment plan by the debtor to the creditor as a result of a court order or personal intention. Secured debts of car loans and home loans do not basically fall under debt management plan. The process involves a series of thoughtful and systematic steps by the Debt settlement company where they negotiate with the debtor and the creditor on some levels so that the debtor gets debt-relief without filing for bankruptcy and the creditor too is repaid an amount affordable by the debtor. Firstly, a list of all the creditors is compiled along with the amount owed to each by the debtor is totaled. Next, an assessment of the debtor’s total income and expenditure is made, such as car payments, rent payments, cost of living, household expenses etc and the same are totaled too. Later, the third party will fortify the debt settlement process by assisting you to determine the maximum amount of available money, allocable for debt repayment. In many cases the debt management plan attempts to reduce the debt amount to be paid and sometimes it waives off the high interest rates making it easier for the debtor to repay the amount, in case of high burdens to debts. One has to understand that participating in debt management can have an impact on the credit scores when for a period of time, the available credit may be inaccessible. Moreover, debtors having less than 10,000 dollars (USD) of debt are not applicable for debt management plan. However, after the changes in bankruptcy laws since 2005, many people find the option of debt management plan as a better debt solution option, rather than filing for personal bankruptcy. It is most likely that any debtor seeking for debt relief would opt for the best debt settlement option and thus should make it sure that the assisting Debt Management company is reputable and registered with the ‘Better Business Bureau’ and follow the rules and regulation mentioned by Federal Trade Commission’, which would ask for a small and nominal fee from the debtor for its debt management services.

Strategy Consultancy – Why It is Essential For Your Business

admin — Mon, 16 Jan 2012 05:10:28 +0000

Your business strategy can make or break your business. Each and every business has its own risks and consequences. Whether setting up for a new venture or expanding the existing business modern business entrepreneurs need to take note of a lot of aspects to develop an effective and successful business strategy. Since business strategy consulting entails helping a business improve its performance through thorough analysis of existing business processes and its problems; building new strategies and future plans based on the analysis and setting new goals it requires thorough understanding of business management and market analysis. Business strategy consulting helps an organization in the following ways:* Defining your Business mission statement is very important for a business irrespective of its size and market. Strategy consultancy helps you clearly define your business vision and mission statement rightly. Since mission statement projects your business goals and helps to convey a message to your target audience inaccuracy in it can make it less effective. * Research and develop business plans for a successful better future of the organization. A good and effective business plan should have a concrete base that can only be built on the basis of an in-depth research on the present market and scenario. * Revising organizational / business structure for increased productivity. An improved organizational structure involves setting workforce management objectives and plans to achieve that goal. Decentralized reporting and monitoring helps bringing transparency and rapid response. * Drafting and distinguishing long term and short term goals for business success. Time is a vital consideration while setting a target. Since it requires proper budget and financial planning to achieve a business goal it is necessary that you identify long and short term goals before hand and plan accordingly. * Provide with Innovative ideas to beat your competitors. With increasing competition in every market Innovation is necessary in order to stay ahead in the race and create your brand. It may include special offers or new products/ services or even collaboration to serve your customers better. Why you need professional strategy consulting for your businessAs the above analysis shows, strategy consulting for the growth of the businesses as well as business acquisitions and mergers is quite a complex job that needs specialized in-depth knowledge in business management and marketing as well as vision and strategic thinking. These are some of the reasons that strategy consultancy has become the job of an experienced business professional. Corporate business organizations are hiring strategy consulting firms for quick, effective and goal oriented results.

Realism vs. Optimism in the Business Plan & Restaurant Business Plan Software Considerations

admin — Tue, 10 Jan 2012 05:20:08 +0000

The most important function of a business plan is to create interest among investors so that they write a check. In achieving this goal, business plan writers are often challenged by determining the proper level of optimism in their plan. That is, they must create a compelling story to investors while maintaining credibility. Optimism shows investors that a company is confident about the market opportunity, its ability to execute on the opportunity, etc. Over-optimism, however, leads investors to believe that the management team does not fully understand the opportunity or the tough road ahead. As such, business plans must be sure to limit over-optimism and show investors they are realistic and credible. Realism, the opposite of over-optimism, should be used in business plans to portray sobriety and credibility to investors. Realism should manifest itself in management team bios that tell the actual accomplishments of managers, rather than fluff. It should manifest itself in credible market forecasts and sober assumptions of the company’s growth. While business plans must excite investors so they take action, if they are too optimistic, investors will discount their merit. Conversely, if they are too sober, investors may not feel they will get an adequate return on their investment. As such, business plans should present a compelling, optimistic picture, but continuously refer to hard facts and realistic assumptions to build credibility and genuine excitementRestaurant Business Plan Software Considerations Whether you are an entrepreneur looking to start your first restaurant, or you have been working in the service industry for a long time, restaurant business plan software can help you create a streamlined business plan that will improve your chances of funding. Here are few things to keep in mind when comparing various packages. Your needs – Various business plan software packages are geared toward different sizes of restaurant business and different levels of funding needs. Make sure the software does what you need it to do. Don’t go overboard on a program that offers more than you need. Feedback – Make sure to get in touch with other people who have used the software before and get their feedback. The more reputable restaurant business plan software vendors will provide testimonials and contact information of previous customers. Make sure to compare. Keep an eye out for positive comments about ease of use. If you have been in the restaurant business already, you probably have a number of contacts you can network with for information. Ask other restaurant owners you trust if there was a software program they used or have heard good things about. Word of mouth recommendations can often provide valuable leads. Support – Make certain your software vendor offers full support for their programs. Many top vendors offer 24/7 online and toll free support for their programs. When weighing benefits, this is an important factor to take into consideration. You want to be assured you can get the software to work. Cost – Once you’ve narrowed your choices down by the above benefits, it is time to consider costs. Check different vendors, as there can often be a large difference in prices between vendors for the same title. Make certain to factor in shipping and handling costs and delivery time of your restaurant business plan software when comparing prices. Once you’ve chosen and installed your software, it’s time to get to work creating the business plan for your restaurant. If you have any trouble, be sure to get in touch with the vendor’s support as soon as possible. Good luck with your new business venture!

Building Highly Effective Economic Performance Program Into Your Business

admin — Sun, 08 Jan 2012 05:11:14 +0000

All companies share common business reality regardless of size, structure and types of markets, this reality is Economic Performance. For the future of the business to be made today, business leaders must understand the true realities of the business as an economic system and its capacity for economic performance, and its relationship to available resources and possible results. Economists and accountants differ on the relative measures of economic performance of a company. Accountants believe financial statements are in general much better at reflecting relative measures of economic performance, which include comparisons between this year’s economic data and prior years, or this year’s performance compared with expected or budgeted performance. They also conclude that, if reliable comparative data is available, it is sometimes possible to compare one company’s performance against the performance of other businesses in the same field. Economists, on the other hand, maintain a much deeper and succinct opinion in this matter. They strongly believe that economic performance of a company is measured by the business’s health and well being and focuses on issues dealing with knowledge, innovation, resources and business investment, and the alignment of these issues with the idea of a business and its objectives; in the areas of excellence, priorities and strategies. In my opinion, the performance of a company can not be based on data and financial statements alone. We must delve into the core practices of a business including capital investment proposals, new products, services, expansion plans and new ventures, and above all the knowledge base of its people and its management strategies. “The future is not going to be made tomorrow; it is being made today, and largely by the decisions and actions taken with respect to the tasks of today” Peter Drucker Building an Economic Performance Program into your business can stimulate its major components and will lead to a highly effective operation, adding a profitable value to your company, while enhancing your people’s lives, jobs and spirit. Indeed, conducting a systematic review of all major components of your business, products, services and activities every three years, and holding current economic performance against expectations and business objectives, can lead to better utilization of the company’s resources and knowledge base. It will also ensure that all new capital investments, new products or services are directed and aligned towards the company’s vision and objectives. A stress test on your company’s “Business Reality” ie; current performance, is a viable business intervention strategy and can generate valuable results, by determining the bio-age of your business and the life cycle of its products or services. It will further validate the viability of your new ventures and capital investments and the alignment of these undertakings to the company’s major objectives. It will also lead to the following:- Building a unified and company wide-highly effective Economic Performance Program into your business, leading to a superior advantage over your competition. – Opportunity development – focus leading to organised and natural growth- Leveraging your company’s true potential and building on its strength- Streamlining your business and idintifying ways to reduce costs by operating more efficiently- Making the future of your company today

Pre-Money vs. Post-Money Valuation & Raising Capital for Your Business-How Long Does it Take

admin — Fri, 06 Jan 2012 05:21:56 +0000

When a company decides that it must raise capital, a key question that must be answered is how much the company is worth. For example, if the business needs $500,000 to get started and/or grow, how much of the equity in that company should $500,000 command? Once this question is answered, the company will go out and try to find investors. When doing so, a key question often arises as to whether the valuation is “pre-money” or “post-money. ” “Before the money”" or “pre-money” and “after the money” or “post-money” denote simple concepts. However, these simple concepts can even confuse even the most sophisticated analysts at times. If a company is valued at $1 million on Day 1, then 25 percent of the company is worth $250,000. However, there may be an ambiguity. Suppose the company and the investor agrees on two terms: (1) a $1 million valuation, and (2) a $250,000 equity investment. In this case, the company may offer the investor 250 shares for $250,000. Immediately there can be a disagreement. The investor may have thought that equity in the company was worth $1,000 per percentage point, in which case $250,000 gets 250 out of 1,000 shares or a 25% equity position. Conversely, the company may have believed that the investor was contributing to the enterprise which was already worth $1 million. Under this rationale, the $250,000 would give the investor 250 shares out of 1,250 shares or a 20% equity position. The critical issue was whether the agreed value of $1 million to be assigned to the company was prior to or after the investor’s contribution of cash (pre-money) or post-money. In the above case, a pre-money valuation of $1 million and a post-money valuation of $1. 25 million were equivalent. Because mixing up the terms could significantly increase the cost of capital raised, companies must be sure to understand the two metrics and agree with investors to the metric that raises them the capital at the appropriate price. Raising Capital for Your Business – How Long Does it Take?Most companies vastly underestimate the time commitment necessary to successfully complete a financing. In actuality, a company seeking financing needs to budget between 500 to 1000 work-hours to the capital-raising process, spread out over a 6-9 month time period. The key processes in the capital-raising process include 1) perfecting the business plan, offering memorandum and other company due diligence materials, 2) developing a comprehensive, targeted prospective investor list, 3) contacting this list and responding to investor due diligence requests, and 4) negotiating the transaction. Completing the business plan typically requires at least 200 hours of work. This time is dedicated to conducting the market research to validate the opportunity, developing a comprehensive financial model, determining the most effective way to lay out the business strategy, and actually writing and proofing the business plan. The next step, developing a comprehensive, targeted prospective investor list is also very time consuming. There are thousands of potential investors, each of which has very different tastes regarding the types of ventures that interest them. Some invest by market sector (e. g. , healthcare vs. telecommunications), stage (seed stage vs. later stage), geography, or a combination of these. Many hours must be dedicated to determine which investors is the right fit for your venture. This process involves creating a master investor list, visiting each investor’s website to view investment criteria and past investments, and determining who the right contact at the firm is. To see how easily the time adds up, consider that only about 25% of prospective investors who show an initial interest in a transaction actually progress to detailed company due diligence. Only about 10% of this 25% actually progress to a bonafide offer of funds, of which only 25% of these actually result in an investment transaction. So completing a financing transaction requires, on average, contacting approximately 160 pre-qualified prospective investors. The due diligence process, where investors scrutinize the investment, can also be very time consuming for the company. Investors often request many documents, some of which can be easily retrieved from files (e. g. , prior tax returns), while others may take more time to prepare (e. g. , additional market analysis, customer lists with past purchases, contact information, etc. ). Finally, negotiating a transaction can take a significant amount of time depending upon the complexity of the transaction and number of parties involved. Too many companies fail to raise capital since they are unaware of the significant time requirements to do so. Those firms who understand these requirements and budget accordingly are the ones most likely to persevere and end up with the capital they need.

Lead Management And Sales Force Automation Two Sides of a Coin

admin — Thu, 08 Dec 2011 05:11:47 +0000

Sales force automation system is being considered now as one of the most effective tools of business development as well as a supportive process for improvement and efficient handling of Customer relation management [CRM]. The input of sales force automation system is now largely depends on lead tracking, lead distribution, and lead nurturing process and in this context we can safely conclude that effective lead management is great solution for professional and result oriented customer relation management process. Lets have a look how these two apparently two process can complement each other. Lead Tracking and lead nurturing are two integral processes of lead management. These two processes are implemented after a sales lead is generated. Lead tracking system tracks down a lead and speculate the conversion chance of the same into sales prospects. Alternatively, lead nurturing process takes care of the leads as after sales service and builds a long term relation with the existing customer with the service providing system or with the new product range. The management process which initiates planning for building a long term relationship between the consumers with the concerned business unit is termed as Customer relation management or CRM; professional and efficient lead nurturing process contributes by all means in implementing efficient CRM solution for a business unit. Nowadays many business units use CRM tools as an effective resource for sales force automation because successful ongoing relationship with customer base generates referral leads and further expansion of business. For example, in insurance providing companies, once an insurance lead turns into a prospect it generates one-time revenue for the said company. While lead tracking system will close the lead, lead nurturing system takes care of the existing customer to make a sustaining relation between the customers and concerned insurance company so that in the long run out of this initiative referral leads and further sales can be generated. In this way the CRM process converts an existing customer into further prospect as well as active resource for generating new sales prospects. Thus making a perfect circle of business development plan CRM also contributes in successful lead management because lead generation is one of the pivotal steps of lead management system. In reality very often it is observed that sales and marketing plans of a company cannot work together thus cannot generate desired output, although these two plans being entirely different from each other are perfect balancing factors for successful business development. Sales force automation process makes a perfect combination of this two powerful due and extract best result out of the whole process. While lead managements takes care of leads, sales management concentrate on sales, and CRM maintains the floe of leads which inn three way enhances the growth potential of a business. Sales force automation is not a single concept; it is combined process of generating sales and promoting the brand image of the concerned business unit. The process works on a fixed motivation and the impetus behind this motivation is to captivate largest market share in its own category. If sales force automation drives one aspect of business growth, Lead management supports sales and customer care process which again merges with CRM domain, and contributes forming the other side of the coin name business growth and development.

Pre-Money vs. Post-Money Valuation & Raising Capital for Your Business-How Long Does it Take

admin — Mon, 05 Dec 2011 05:23:20 +0000

Difference Between Business Plan And Business Proposal

admin — Sat, 29 Oct 2011 05:17:33 +0000

Business has a lot of words that often confuse people. People tend to mix their meaning and are unable to differentiate them. Business plans and business proposals are amongst these misleading terminologies. People often think of them as one and the same thing. Business plans and business proposals are totally different in their use and nature. Both are documents used in business but both have different purposes. Business plans reflect the long term plan of a business. It reflects the way a business plans to establish itself over a longer period of time. Business proposals on the other hand are not meant for longer term. They are an intention to work out a business venture with another business. The intended audience of both the documents also varies significantly. The business plan is intended for the management as well as the lenders and many others. The business proposal is however a document that is only intended for the other business with whom a business wishes to enter into a joint venture with. Then there is a difference of need. Business plans are needed for establishing a guideline for standing up a business from scrap. It usually defines the directions the business has to follow step wise in order to achieve that. Business proposals are really not for that purpose. They are short term and only needed to communicate a business’s intentions to work with another business. Business plans often help to raise the required capital needed for your venture. Business proposals don’t do this sort of work. Business proposal can be intended or unintended as well. A large public or private company may give an advertisement about pursuing an adventure and want to get third parties involved through an open bidding process. Unintended proposals are those in which the large organization is reached by the third party to pursue a venture with them in doing the business. In both cases the purpose is quite different from that of a business plan.

Top Business Success Tips You Need To Know

admin — Sun, 28 Aug 2011 05:14:07 +0000

Many people think that to succeed in business, you need a capital. But this is not entirely true. There are many businesses failed after the owners invested a huge capital. So, capital is not the only factor for business success. In fact, some business such as Affiliate Marketing or Internet Marketing business requires a very small capital. All you need is a domain name which costs $10 per year and a hosting account which costs $10 per month. Therefore, success in business is not just about having big capital to invest to start and run the business. There are many factors that will determine business success. In this article, I will share with you some of the success secrets every entrepreneur needs to be successful in business. It doesn’t matter whether it’s online or offline business, you need these success tips or secrets. Here are some of my business success tips: Financial Management Tips Good financial management is crucial to your business cash flow and good financial health. Here are some financial management tips to help you: Careful planning of the costs and business expenses Good entrepreneurship is proper analysis of the costs and expenses of the business capital. The planning has to be objective as possible and the forecasting of financial growth must be quantitative. Smart financing There is never a single means to finance a business operation unless you really have the money to capitalize it. But for start-ups, it would mean consulting friends, banks, lending investors and other possible sources. If there is a need to borrow money for initial investment, go for the lowest interest rates, longest payback period, and no collateral. Control the cash flow Considering the fact that shoestring entrepreneurs lack enough capital to run a business, it is just wise to control the flow of cash. A good point to remember is to only start thinking of profits when there is enough cash coming in the business. Marketing Tips for Business Owners Marketing and advertising campaigns are very important aspect of a business to get started and even for continuous growth. But we can do smart marketing and advertising campaigns without having to spend too much. Here is how. . . Search for media publicity to get public attention. One example is to participate in online forums, social networking sites or send out press releases to various media outlets. Take advantage of cheap and affordable print or television advertising. Consult a business guru or an expert who can serve as a mentor who can strategize for the company’s marketing needs. Establish referral programs from clients or companies and compensate with satisfactory rewards. Setting the Goals for your Business Last but not least, goals setting is crucial to any business success. Before you start a new business venture, ask yourself these questions: What do you want to achieve in your business? Why do you want to achieve those goals? And, how are you going to achieve your goals. Set realistic goals, plan how you’re going to achieve them and stick to your plan. Getting into a business without a GOAL is like embarking into an open sea without a compass. I have shared with you some great business success tips in this article. I hope you find them useful. If you are considering venturing into a new business, make sure you apply the tips that I have just shared with you.

Why You Need Resource Planning Software

admin — Tue, 02 Aug 2011 05:01:52 +0000

Are you interested in Profitability? Productivity? Performance? Well guess what, all three of them depend on your resources. The quality of your resources impact your company’s performance; their allocation and management impacts productivity; and considering resources are usually a company’s largest overhead, they play a huge role in determining your profitability. Hence, using a good resource planning software is a no brainer. When running a business, managers often make the mistake of placing resource management within the framework of project management, and often believe that their project management processes or software will take care of their resource management as well. However it is critical that resource management is considered separately as it is a different way of looking at an organisation, and has a different objective. The aim of project management is to ensure that each project is delivered on time and within budget, irrespective of whether all resources are being used most optimally. Therefore, it is important that companies also approach their business from a resource management framework. This way they have a bird’s eye view of their resources and make sure they maximise their utilisation across divisions, projects and activities; and can plan and manage their resources effectively, smoothly and with simplicity. The question is how? Most businesses leave this job to division or team managers, or dedicated resource planners. These planners and managers then struggle to allocate resources and produce reports manually with the assistance of spreadsheets and word processers. However in today’s competitive markets, smarter businesses are moving towards using resource management software that removes the extensive time, frustration and sometimes confusion that can come with managing a company’s resources. The main objective of such software should be to enable a company to: 1. Find the right resource for the right job based on its qualities, experience and availability. 2. Maximise the productivity of existing resources through effective allocation to various jobs and activities, aiming for 100% utilisation. 3. Forecast future resource requirements against resource capacity in order to plan ahead to allow the smooth functioning of business activities. A good resource management software should support your business holistically, and in its short, medium and long term objectives. In the short term, it should enable a company to easily plan and schedule resources by quickly identifying the right resource. This should be simple to use and easy to understand visually so that you can find the right resource from a big pool based on skills, training, role, quality, availability etc and allocate it against various projects, milestones or tasks. Managers should be able to create and address resource requests, and share resources across divisions and teams with little hassle. Finally, you should be able to plan your resources in whatever metric your company desires be it hours, days, shifts or percentages, and should also be able to integrate leave, holiday, planned and unplanned tasks. In the medium term, management firstly needs to be able to accurately forecast future resource capacity against resource demand, to allow your business to identify the shortfall or excess of resources and accordingly plan ahead. Secondly, it is important to know the performance of your existing resources, and thus ensure that there are time sheet and costing mechanisms that allow for the tracking of costs and billing of time against what is forecasted. Finally it is important that this information can be easily analysed and communicated in visually effective graphs and reports, which can also be easily analysed in detail, or exported into different formats. This often drastically improves a company’s ability to make intelligent decisions. In the long term, resource management software should be able to support your business in its long term strategic objectives. We often have an unfortunate tendency of prioritise what is urgent, even if it isn’t as important as making a longer term investment in our company’s strategic direction. Hence a good resource management tool should enable you to also integrate and prioritise resources for longer term objectives, not simply short term activities or medium term projects. Finally the best tools of all should be able to tailor a tool to your specific business, based on your objectives, processes and metrics, and should be reasonably priced. If a tool isn’t suited to your company or is too expensive, then what’s the point? This leaves us with the final question – do such tools exist out there that do all of what has been said, and yet are cheap and easy to use? Yes they do. There aren’t many tools out there, however is SAVIOM Resource Planning and Scheduling Software does, so make sure you have a look and make an investment for your company that you won’t regret.