Skip to main content

Featured Post

What should I look for in a property maintenance company?

Some of the things to consider when choosing a property maintenance company All kinds of buildings require maintenance. Whether residential or commercial, it is very important to take care of the property so that it is in shape for many years. Therefore, you need a professional service provider to always ensure quality. The company can perform routine cleanings, emergency repairs, etc. You must be careful when planning to avoid unnecessary damage. When making a choice, you need to make sure that you end up with the plan that suits you best. In many cases, you can enter a contract with the company in question. You must also choose between short and long-term contracts. In some cases, there are some benefits that can be associated with the long-term type of contracts and you may find that they are much easier on your pocket. A trustworthy company must eliminate your worry and do a satisfying job. Some of the things worth considering include: Experience It is important to check how long

4 Preventable Losses for Startups

Nobody starts a business in order to lose money, but here are four ways new start-ups do that lead to preventable losses.

Failure to control expenses

Watch what you’re spending by setting and adhering to a budget. It may sound like common sense, but if you’re not careful your rationalizations about it being a startup cost will bury you in debt and put your company in the red. Your new business does not need top of the line in everything at the very beginning. Start small and build up, just like a newlywed couple. You may have to lease a copier instead of buying one or work out of your basement before leasing office space in the finest corporate building. As your business grows, your expenses can grow, but don’t put the cart before the horse. You have a vision for what you would like your business to be, but don’t expect to get there on day one.

Growing too fast

It is possible to get overeager after some glimmers of success and grow your company too fast. Doing so depletes resources and can, worst case scenario, lead you into bankruptcy. To illustrate, consider two companies that began as local sensations: one made doughnuts and the other ice cream. Both began with one person or family and a recipe. Both were beloved by all who tasted their offerings. Both expanded and developed more efficient production methods as demand for the product increased. That’s where the stories go separate directions.

The doughnut company expanded to a region, then a nation (where it quickly became a public company on the NYSE) and then internationally. The brand and the products saturated most markets: convenience stores, grocery stores, fund raising and stand-alone locations. In so doing, the profits plummeted and the novelty of the doughnuts wore off. They were no longer a special treat because they could be purchased anywhere at any time. The quality didn’t change, but the demand no longer outweighed the supply. At peak performance (when the expansion increased exponentially), shares of the stock were trading just above $46 at a volume of 0.87 million. Currently, shares are trading at just over $6 at a volume of 0.44 million.

The ice cream company, on the other hand, chose to grow at a snail’s pace, preferring to leave customers begging for more rather than go into debt. Started 30 years earlier than the doughnut company, the ice cream is currently sold in only 20 states in the US. It was in business for more than 50 years before expanding outside of the town where it began, but it has never failed to make a profit, even during the Depression.

Starting a business is like starting a marathon. Pace yourself or you won’t make it to the end.

Paying yourself too much

This is closely related to the failure to control expenditures. When children hear that one of their friends’ parents owns a business, the immediate assumption is that the family is rich. Entrepreneurs know better, but some start a business with that goal in mind. Be careful not to mix your personal financial situation with your business finances or lines will blur and books won’t balance. The IRS frowns on such things. You may be tempted to give yourself a raise when personal finances get tight. Don’t do it, at least not until the business has profited enough to allow that additional expense. A guiding thought to help you is to ask yourself if the company can afford to give all the employees the same percentage of a raise at the same time. If not, wait.

Not having a debt collection process

In the quest to gain and please new clients, some start-ups fail to follow up on past due invoices. Studies have shown that the longer an invoice is past due, the less likely it is that invoice will be paid. Unpaid invoices are a loss. Make follow up phone calls. Send second notices. Document everything, and when necessary, call in a debt collection agency to help. Even after paying their contingent fee, collecting some of a debt is better than collecting none of it.

Tiffany Marshall is a freelance writer, writing on behalf of debt recovery companies like Direct Recovery. Her brother is a vice president of corporate banking and provided most of the tips for this article.


Popular posts from this blog

4 Smart and effective ways to pay off debt on your own

If you are overburdened with an overwhelmingly large amount of debt, you can now reduce your debt burden on your own. If you go to legal debt relief services, you can also get rid of debt but why would you pay for services, which you can do on your own? There are very simple steps involved in paying off your debt on your own. You just have to follow these steps to pay debt off . Read on to know the steps, taking which you could relieve yourself of the debt burden 1. Pay more than the minimum amount: It is a credit card rule that you need to make a minimum payment in order to stay current on your accounts. But if you have already accumulated a huge amount of debt burden, you should look beyond paying the minimum amount each month. Go and save money to pay more than the minimum amount. Though the banks or the financial institutions will want you to make the minimum payments only in order to drag on with the interest rates, but don’t fall a prey to such bank tactics. Make sure that you

Things to Know About Tax Preparation Service

In a few months’ time, the tax season would have already started and people would once again find themselves stressed out with filling out and preparing all documents needed in order to file their tax returns on time. It is in situations like these that the importance of a tax preparer becomes even more highlighted. Now, the question becomes, what does one need to ask in order to get the right person for the job?

The differences between payday loans and cash advances

Payday loans and cash advances are very similar at what they accomplish – they provide you with money during times which you need it the most. Even though they both achieve the same goals, there are still some key differences between them. While they are both methods for getting the money that you need, quickly, your personal situation may make one of them a better or more plausible option than the other. By knowing the differences between these two different solutions to your cash flow problems, you will be able to learn what you need about these types of loans and be able to use this information to decide which one is best for you and the situation you currently find yourself in.

How to Calculate the Refunded Amount of PPI – Reclamation of Your Money

PPI is the short form of Payment Protection Insurance. You can apply for PPI loans when you are running short of funds in your bank accounts and even the current assets are undervalued for your debt. The PPI is given along with the loan you take. However, you can reclaim your money any time, if you feel that the PPI claim was overvalued and you were sold without your knowledge. You can get back all the money you have paid for PPI.

Assessing your monthly outgoings

One of the New Year’s resolutions for businesses that often get thrown around is a suggestion to keep better records. As part of that, if you’re not already being very careful with your record keeping, you should keep better track of your monthly outgoings and properly balance it against your monthly income. The benefits of this should be immediately clear and if they are not, I would suggest going and asking someone why it’s important. Anyone will do. If you have small children, even they will probably know.

Reasons to Use a Financial Management App

If you like to keep track of personal budgets, or if you just ask yourself at the end of the month where did all the money go, it is time to go from a piece of paper and a pen to your financial management app. As smartphones are everywhere now, there is no reason for you to refuse to use an app that would bring so many benefits to you and your finances. You save Money It has been proven that people who keep track of their income and expenses, and people who plan their budgets manage to save more money than others do. Financial management apps allow you follow your incomes and your costs, analyze them and see where you can cut and where you can add. Seeing the exact numbers will motivate you to want to save money, and will help you decide on whether to take a loan.