Obtaining a loan can be a daunting process, to say the least. For whatever reason, whether it is an investment loan or for the home, a person has to meet the criteria if they wish to have their application granted. Obviously, everyone cannot get an investment loan, otherwise the world would be in a state of turmoil, to say the very least. Fortunately, it is not as hard as people may think to get a loan for whatever they may need it for, if they are willing to go about it professionally. If a person wants to be slapped with an approval letter, they will have to do their homework.

This is the first step of having their applications granted for an investment loan, and many people would be surprised at how many people do not take this step seriously. It will substantially increase the chances of the lender taking on this task. A person will definitely need to know their loan-to-value (LTV) percentage if they want to be approved for the loan of their choosing. The LTV is essentially how much the property is worth on the market, as opposed to the size of the loan a person is taking out. It is noteworthy to state that a lender will more than likely not lend to a person or group with an LTV percentage that exceeds 70%.

Another thing to consider is the debt coverage rate (or DCR) of a property. The DCR is basically how much money a person is making from a property when compared to how much the property is actually worth. Favorably, a person or group will want to make sure that it is not less than about 1.2, otherwise they will have a hard time getting their investment loan approved.

There are other factors that determine whether a person will get an amazing investment loan or not. For instance, the lender will want to make sure that they are getting a pretty decent return on investment, and they can produce the money needed for the monthly payments on the loan. There may also be the “Statement of Personal History” which will include a plethora of things. Usually, it speaks about the person’s character, and how willing he/she is to repay debts in the past. This is probably one of the most important things when obtaining any investment loan, because no one wants to be stiffed when it comes to repayment time. If the statement is a weak one, the person will have a hard time receiving any loan, let alone one of the best.

The investment loan has been a pillar of many societies throughout history, and obtaining the best loan is within reach of anyone who decides this is what they want to do. Although there are additional requirements, depending on where a person may want to invest, these are mainstays regardless of where the property is located. In summation, if a person is willing to do their homework and have a pretty clean bill of financial health, they will have no problem obtaining an investment loan

Copyright (c) 2009 Ajay Prasad

You have this superb idea of having a website of your own and you are eager to go to put those ideas into action. But as you get down to work for converting your idea in reality, the challenges involved in getting it done may overwhelm you and suck away half of the enthusiasm. Believe me setting up a business is no cakewalk even with years of experience.

Here is how to go ahead.

PLANNING:

Be thorough. Even though you know what you want, write it out. Keep a notepad and a pen by your side to note down important ideas, information. Make a list of the tasks for each day and cross them out when done. This is the most satisfying time

- Why an I doing it? (Money, success, to make friend, to share information)
- Where to begin? (Totally online?)
- How to do it? (Myself or some vendor)
- What is the best way to do it? (Translates to reading and gaining a lot of knowledge)
- Why Do You Need a Website?

Small established local businesses always ask this question.

It’s a well established fact that customers, especially in the US, check products online before entering a store to make a purchase. Small businesses or relatively unknown businesses can benefit out of this.

Web usage in US is huge. An average surfer spends 38 hours per month from his home and visits an amazing 65 domains every month. So he is not just replying to emails, he is searching or browsing. And that’s where your business comes in.

125 Million Websites Out There, Do You Stand A Chance?

Of course you do have a chance and you can get your share of the online business. Just do all the things correctly. Analyze your business and client behaviors and plan accordingly.

BUT make sure your website stands out either in product, offer or search engines.

Niche websites have a greater chance of doing well. If you have a remarkable business idea, create a demand for your product through the internet. Let people talk about it.

If you have a general business about which you think nothing is remarkable, concentrate on local search engine, local press and local offers. You will be amazed at the results.

What Type Of Website Should You Have?

Generally, business websites can be divided into two categories:

- Ecommerce and – Service websites.

- Ecommerce websites have a list of products along with a shopping cart and online credit card purchasing that allows a visitor to visit the site, browse the products and complete purchase.

Service websites just list their services along with additional information and a contact mail or number.

Do a lot of research on what you want your website to be. Conduct a thorough research of customer behavior for your related product. Talk to experts, ask on forums. Do a market analysis that identifies the internet market size for your product or service. Only then, you can come to a conclusion about the type of website you need.

You’ll have the following options:

1. An information site (a type of article site, or an ezine?)
2. An e-commerce site
3. A combination of both?
4. A service site with call to action
5. Info cum service site?
6. Just a blog
7. A forum
8. These issues will help determine the orientation and budget of your website.

So get you notepad and pens out…

Over the past few weeks, I’ve seen the value of my precious stock holdings go down-sometimes, alarmingly so.

Does this worry me? Not much. Why? Because I realize that these drops in the stock market have been precipitated by consumer fears over an economic slowdown. (We could argue all day long about whether the USA is technically in a recession or not, but few of us would dispute that the economy has been lagging.

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In fact, smart investors would view the current economic situation as a great opportunity. Quality stocks are being unfairly devalued, which makes them available at a real bargain. That is, stocks are being sold for less than they’re actually worth, simply because consumers are afraid. This fear can create golden opportunities for investors who are willing to plan cautiously and do a little research. Remember that one investor’s panic can be another investors’ profit.

So how does one invest wisely during an economic slowdown? After all, most of us aren’t inclined to perform voluminous amounts of research in our spare time.

One way to mitigagte the risk is to invest in what are known as non-cyclical or “defensive” stocks. These are stocks in companies whose business performance and sales are not strongly correlated with the overall economic cycle. These companies typically outperform the economy during financial hard times, and so they considered to be generally safe investments when the fear of recession rears its ugly head.

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Quite simply, the difference between defensive and non-defensive industries is the difference between necessity and luxury. Most of us can live without a new car during an economic slowdown; however, we still need certain staples, such as food, gas, and medicine. Demand for these items is not strongly affected during a sluggish economy. The same holds true for household staples such as soap, shampoo, and toothpaste. People might cut back a little bit on such items, but not by much – after all, they’re considered to be darned near essential.

For example, I purchased a sizeable amount of stock in ExxonMobil (XOM). Why? Because Americans still use large amounts of oil and gas, even when the economy takes a downturn. Sure, a lot of us will be watching our gas expenditures more, but it’s safe to say that gasoline consumption will continue to be strong. I picked Exxon/Mobile because it’s a large, stable company-the most profitable and financially healthy of the major oil firms. It has a long history of strong performance, and because industry analysts give it very positive ratings.

I also invested in Proctor & Gamble (PG). Again, why? Because everybody knows them and uses their products-coffee, razors, medicines, batteries, detergent, bathroom tissue, personal hygiene products, and so much more. They have outstanding financial ratings, and it is one of the largest and best-known companies in its field. It is likely to provide a safe, stable source of investment in the year to come.

So remember… When everyone else is scared, that’s the time to be bold. You can not completely avoid the hazards of the stock market, but you can still play wisely and with relatively little risks. By picking safe, stable defensive stocks, you can take advantage of everyone’s fear and expect a potentially high payoff.

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 The New Basics of Business

With unemployment continuing to rise, home prices falling due to a surplus of inventory, and small business lending at a standstill, this recession doesn’t seem likely to end soon.  The recovery will be slow and Americans will certainly not enjoy the prosperity of a few years ago for a long time to come.  It’s not just economists who think this way.  ”Half the population in [a] new ABC News poll  thinks both job security and retirement prospects in the years ahead will remain worse than their pre-recession levels.”  (“Poll: Less Job Security is the ‘New Normal,’” ABC News The Polling Unit, June 15, 2009, analysis by Gary Langer) This confidence, or lack thereof, is an integral part of an economic cycle.  The analysis goes on to say, “Those diminished expectations – plus the pain of the current downturn – are fueling retrenchments in consumer behavior that could fundamentally reshape the economy.”   

Basically, consumers are hunkering down to limit spending, save money, conserve resources, and change the way they’ve been living.  The major influence on the health of an economy is the psychological state of its consumers.  When there exists a broad belief that spending beyond necessity is unwise, people will change their habits and as a result, some businesses will have to close their doors.  The economy is molting into a new, leaner animal.  Rather than react in desperation to avoid doom, firms should interact with the current situation with innovative and forward thinking actions.  

No matter the economic slump, increasing profits is typically the number one goal of any business.  To ensure profitability, a company must demonstrate a competitive advantage over others in its industry, either by cost leadership (same product as competitors, lower price), differentiation (same price, better services), or focusing on an exclusive segment of the market (niche).  For long term maintenance of competitive advantage, a firm must ensure that its methods cannot be duplicated or imitated.  This requires constant analysis and regular reinvention of competitive strategies.  

A recession is the optimal time to reinvent competitive advantage because the pressure of a feeble economy will separate the strong businesses from the weak ones, with the weak falling out of the game entirely.  Your business will be strong if you have a plan of action based upon a little industry research, an analysis of what you have and what you want, and continuous monitoring of the results of your plan.  This kind of innovation is not only a necessity right now, but it is an opportunity to improve the quality and efficiency in the way you do business.  

The three basic actions for growing a business in any economic climate are: improve efficiency (maintain output while reducing inputs, such as time and money); increase volume (produce more in order to spread fixed costs); reorganize the business (change goals, methods and/or philosophy).  If you plan to implement one of these, you may as well plan to implement them all.  By focusing on one of the above strategies, you will find a ripple effect that causes a need to address the others.  This is a good thing.  

Right now, growth may sound like an unattainable goal as businesses are grappling just to survive, but hey, “flat is the new up.”  If a business can keep its doors open and lights on, then it’s doing better than many others.  But lights and open doors don’t make sales, so making changes that attract business is in a sense, striving for growth.  It won’t be this tough forever, but for now, putting some growth strategies into action may be what keeps your business alive, if not thriving.  

 

Every Business Needs a Plan  

Without a plan, there is little hope for growth, let alone survival.  As my small business development counselor, Terry Chambers says, “If it’s not written, it’s not real.”  That doesn’t mean it’s unchangeable, but it does show that you mean business.  In order to accomplish your strategies of improving efficiency, increasing volume, and reorganizing your business, you’ve got to examine what you have, what you want, and how you plan to get there.  

Sometimes it takes a significant event or change in existing conditions for a business to create a written plan.  I think it’s safe to say that the state of the economy is a significant change that should prompt business owners to alter the way they’ve been doing things.  If you already have a business plan, it’s time to get it out and revise it.  Make sure your plan includes answers to these questions:  

What do I want to accomplish? What do I have to work with? How have I done in the past? What might I do in the future? What will I do now? How will I do it? Is it working? 

 

A business plan can be used as a vehicle for accurate communication among principals, managers, staff, and outside sources of capital.  It will also help to identify, isolate, and solve problems in your structure, operations, and/or finances.  Along with these advantages, a business plan captures a view of the big picture, which makes a company better prepared to take advantage of opportunities for improvement and/or handle crises.  

Essentially, the three main elements of a business plan are strategies, actions, and financial projections.  In order to cover all of the principle elements, you will engage in other types of planning:   

Marketing plan: Includes analysis of your target market (your customers), as well as the competition within that market, and your marketing strategy.  This plan is usually part of the strategic plan. Strategic plan: Asses the impact of the business environment (STEER analysis: Socio-cultural, Technological, Economic, Ecological, and Regulatory factors).  Includes company vision, mission, goals and objectives, in order to plan three to five years into the future. Operational planning: With a focus on short-term actions, this type of planning usually results in a detailed annual work plan, of which the business plan contains only the highlights. Financial planning: The numerical results of strategic and operational planning are shown in budgets and projected financial statements; these are always included in the business plan in their entirety. Feasibility study: Before you decide to start a business or add something new to an existing business, you should perform an analysis of its strengths, weaknesses, opportunities, and threats (SWOT analysis), as well as its financial feasibility, then asses its potential sales volume.

 

The process of business planning does not end when the written plan is complete.  Business planning is a cycle, which includes the following steps:  

Put your plan of action in writing. Make decisions and take action based upon the plan. Gauge the results of those actions against your expectations. Explore the differences, whether positive or negative, and write it all down. Modify your business plan based upon what you learned.

 

President of Palo Alto Software, Inc. and business planning coach Tim Berry says, “Planning isn’t complete unless you’ve planned for review.”  Review is the fundamental action that initiates putting your business plan into action.  In his blog at Entrepreneur.com, Berry lists some insightful strategies to making good use of your plan review, a few of which include keeping the review meetings as brief as possible and an emphasis on metrics as key to effective review.

Write your business plan in sessions.  Don’t think that you have to produce a business plan before go to bed tonight or you won’t be able to open your doors for business tomorrow.  I like Tim Berry’s Plan-As-You-Go method of business planning.  The practice of planning is an effective way to really get to know your business and you might end up discovering some important things about your company and about yourself.

There are various strategies and outlines available that will guide you in choosing the appropriate format for your business plan.  Check out the collection of sample business plans for a variety of businesses at Bplans dot com.  Every business is different, therefore every business plan will be structured differently, but for the purposes of this white paper, I will present the fundamental elements that make up strategic, operational, and financial planning.  Here is a basic outline, thanks to NxLevel® for Entrepreneurs (2005, Fourth Edition): 

 

             General Business Plan Outline  

                Cover Page  

                Table of Contents  

                Executive Summary  

                Mission, Goals and Objectives  

                                General Description of the Business  

                                                Stage of Development  

                                                General Growth Plan Description  

                                Mission Statement  

                                Goals and Objectives  

                Background Information  

                                The Industry  

                                                Background Industry Information  

                                                Current/Future Industry Trends  

                                The Business Fit in the Industry  

                Organizational Matters  

                                Business Structure, Management and Personnel  

                                                Management  

                                                Personnel  

                                                Outside Services/Advisors  

                                                Risk Management  

                                Operating Controls  

                                                Recordkeeping Functions  

                                                Other Operational Controls  

                The Marketing Plan  

                                Products/Services  

                                                Products/Services Description  

                                                Features/Benefits  

                                                Life Cycles/Seasonality  

                                                Growth Description (Future Products/Services)  

                                The Market Analysis  

                                                Customer Analysis  

                                                Competitive Analysis  

                                                Market Potential  

                                                                Current Trade Area Description  

                                                                Market Size and Trends  

                                                                Sales Volume Potential (Current and Growth)  

                                Marketing Strategies  

                                                Location/Distribution  

                                                Price/Quality Relationship  

                                                Promotional Strategies  

                                                                Packaging  

                                                                Public Relations  

                                                                Advertising  

                                                                Customer Service  

                The Financial Plan  

                                Financial Worksheets  

                                                Salaries/Wages & Benefits  

                                                Outside Services  

                                                Insurance  

                                                Advertising Budget  

                                                Occupancy Expense  

                                                Sales Forecasts  

                                                Cost of Projected Product Units  

                                                Fixed Assets  

                                                Growth (or Start-Up) Expenses  

                                                Miscellaneous Expenses  

                                Cash Flow Projections  

                                                Break-Even Analysis  

                                                Monthly Cash Flow Projections – First Year  

                                                Notes to Cash Flow Projections (Assumptions)  

                                                Annual Cash Flow Projections – Years Two and Three  

                                Financial Statements  

                                                Projected Income Statement  

                                                Balance Sheet  

                                                Statement of Owner’s Equity  

                                Additional Financial Information  

                                                Summary of Financial Needs  

                                                Existing Debt  

                                                Personal Financial Statement  

                Appendix Section  

                                Action Log  

                                Supporting Documents (Resumes, Research Citations, etc.)

 

Executive Summary  

A business plan starts with an executive summary, which is a one or two page summary of your business plan, or an introduction to your business.  Although this section is at the beginning of the business plan, it is the last thing to be written.  You’ll be able to condense your business plan more succinctly once you have the opportunity to work through the other parts of the plan.  The executive summary may be the only thing a potential investor or financier will read, so write it last because it has to be the most compelling.  

Start by writing a description of your business, including what stage of development it is currently in (conception, start-up, first year, mature, exit) and your plans for growth.  Discuss the nature of your business, the main products and services you offer, the market for your products and services, and how and by whom the business is operated.  

 

Mission Statement  

Then work on your mission statement.  Here is where you concisely state the focus, scope and hope of your business (or values, vision, philosophy, and purpose).  What is the customer pain you are soothing, the need you fulfill?  Here’s an example from Coca-Cola: 

“Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions.  

To refresh the world… To inspire moments of optimism and happiness… To create value and make a difference.”

 

PepsiCo has a different take:   

“Our mission is to be the world’s premier consumer products company focused on convenient foods and beverages. We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.”  

This is the mission statement of Inspiration Software®, Inc.:  

“Our company strives to support improvements in education and business and to make a positive difference in our users’ lives by providing software tools that help people of all ages use visual thinking and visual learning to achieve academic, professional and personal goals.”  

 

Goals and Objectives  

Next, outline your company goals and objectives, including long-term and short-term goals.  You will get into more detail on how the goals will be accomplished in your operational plan and annual work plan, so focus on brevity at this stage.  There is a difference between goals and objectives and it’s important to know what that is.  I like how Andrew Smith explains it in The Business Plan Blog.  Objectives are non-emotional, precise descriptions of what is needed to achieve a goal.  Goals can involve emotion and don’t have to be as specific as objectives.  Objectives are the steps to actualizing the goal.  Here’s an example:  

Goal:  

                To have positive cash flow by the end of the year.  

Objectives:  

                Increase sales by 50%.  

                Offer customers a 1% discount for paying invoices within 10 days.  

                Increase efforts to collect on accounts receivable before invoices have aged 60 days.  

Of course, you will need a plan of strategies in order to accomplish each objective, but those details will be expounded upon in your annual work plan.  A list of three short-term and three long-term goals, along with the objectives necessary to achieve them, is sufficient for most business plans.  Remember to replace the goals and objectives with new ones as you check them off your list.

 

Background Information  

The section that details the background information should start with identifying the industry your business is in.  Even if you are not a member or have no intention of becoming involved, you should list any trade associations within that industry; you never know when you made need those connections.  Find out what publications, magazines or journals are available to businesses in your industry.  Use these and other sources of business information to identify how past trends (economic, social, political) affected the industry, as well as any current or future trends that may have an impact.  

How does your business fit in the industry?  What is the history of your business, including who started it, what changes have occurred, when was it started, where was and is it located, how was it started and operated, and why it was started?  What barriers to entry, if any, have you recognized?  

   

Organizational Matters  

The ownership hierarchy of your business, the management structure, and the personnel are described in the section on organizational matters.  This part of the plan deals with who, what and how your business runs.  Who is in charge of what and how are they qualified?  Discuss how the various parts of your business interact together; include details about outside contractors and consultants and what functions they perform.  See the example below, thanks to Edraw Soft Vector-Based Graphic Design.  

The organizational section of the business plan also needs to include an explanation of your record keeping process, checks and balances, and control management systems.  Anyone who reads your business plan should be able to understand the organizational procedures for running your business day-to-day, as well as in an emergency situation.  

The risk management plan needs to be fleshed out in the organizational section as well, including your risk strategy, the different types of insurance required, your contingency plans, and problem-solving protocols.  What will you do if a natural disaster ruins part of your inventory?  How will you handle the sudden illness or long-term absence of a key manager?  What happens if you are unable to finish a project on schedule?  What are some early warning signs to watch for?  

It may not be pleasant to imagine all the “what ifs,” but doing it now and planning for those unexpected events will improve your company’s chances of surviving a storm.  For an excellent step-by-step guide on the details of developing a risk management plan, see the article “How to Develop a Risk Management Plan,” by Charles Tremper at wikiHow.com.  

   

Marketing Plan  

The next section, themarketing plan, gets into the details of what your business offers and what market it serves.  Marketing is the communication of how your products and services “ease customer pain.”  Show the problem and how your business solves it.  Marketing is a necessity for every business because once your doors are open, you must invite customers to come in.  Everything you do in your business that affects customers is marketing because it sends a message about your company.  

This part of the plan details the features and benefits of your products and services, their seasonality and life cycle, as well as any future products and services you are planning.  It also includes a thorough market analysis, in which you will study your customers, your competition and the market itself.  Here you should include a PEST analysis, in which you will consider the impact of various factors upon your business.  The factors include combinations of the following, depending upon your business:  social, technological, economic, environmental, political, legal, ethical, and demographic.  

Studying your market will give you insight as to how you can make your business more appealing to people.  Market research is more than just noticing trends in your customers’ buying habits; it’s discovering what motivates your customer to buy.  Don’t assume that you already know because you’ve been in this business for years.  This study often unearths characteristics about your market that are hidden or new.  It’s best to discover these things before your competition.  

Another key element to the marketing section of your business plan is an outline of your marketing objectives, strategies, and tactics.  Writing down the avenues you travel in order to market your business will afford you the opportunity to record what worked and what didn’t work.  You must be able to measure and calculate the results of your marketing efforts, otherwise, what’s the point?  If you don’t know if something is working for or against you, then it’s working against you.  

Include details about all of the following that are applicable to your business in the marketing section of your plan: location and distribution, and promotional strategies, such as packaging, public relations, advertising, and customer service.  As a result of exploring these areas, you will naturally need to consider how much you will budget for your marketing efforts.  This question is closely connected to your sales forecast, which leads us into the next section of the business plan.  

  

Financial Plan  

The financial plan consists of four sections: Financial Worksheets, Cash Flow Projections, Financial Statements, and Additional Financial Information.  All of these components will tell the story of how you plan to start or grow your business from a financial perspective.  It is vital that you explain the assumptions under which you have based your projections, for example, “We assume that there are no unforeseen changes in economic policy to make our products and service immediately obsolete.” or “We assume interest rates will stay the same over the next three years.” (both quotes from Bplans.com sample business plans)  

I suggest that you construct easy to read tables and graphs for the financial portion of the plan.  The worksheets suggested are: Salaries/Wages and Benefits, Outside Services, Insurance, Advertising Budget, Occupancy Expense, Sales Forecasts, Cost of Projected Product Units, Fixed Assets, Growth (or Start-Up) Expenses, and Miscellaneous Expenses.  You may find some of the worksheet templates at PlanWare.org to be useful.  

The expected revenues and expenses for at least a year should be projected in the cash flow section of the Financial Plan.  It’s better to make conservative predictions rather than be too optimistic when it comes to cash flows.  As part of this section, a break-even analysis is essential.  This is the “amount of units sold or sales dollars necessary to recover all expenses associated with generating these sales.” (NxLevel for Entrepreneurs, 2005)  The formula for calculating the break-even quantity is Total Fixed Costs/(Price – Average Variable Costs).  

The financial statements section should show the way things are now if you have an existing business, as well as a forward look at your checking account, or projected income statement.  The only way a start-up company can provide an income statement and balance sheet is by projecting these figures based upon well defined assumptions.  Both start-ups and existing businesses should include a statement of owner’s equity.  

An income statement shows revenues minus expenses, in order to calculate net income or net loss.  Start-ups should project these expected results for the first twelve months of business, then quarterly for the next two years.  A list of a company’s assets (what you own), liabilities (what you owe), and net worth (assets minus liabilities) is called a balance sheet.  The statement of owner’s equity shows the owner’s initial investment, additional investments, and retained earnings, minus owner withdrawals.  

The additional financial information at the end of this part of the plan should give a summary of your business’s financial needs in order to grow, show its debt position, and state the owner’s financial status.  

   

Appendix  

In the appendix, which is the final section, an action plan or timeline for implementing the business plan should be presented.  This is where the detailed goals and objectives are expanded in a work plan.  Also, include in this section any additional information or supporting documents that are relevant to your business plan, such as important research, marketing materials, product specifications, and owner and employee résumés.  

   

Executive Summary  

Now that you have written the hard part of your business plan, it’s time to write the fun part, the executive summary. As mentioned in the beginning of this white paper, this is the most important piece of the business plan because it illustrates the very essence of your business in a captivating and condensed form.  If you ever share your business plan with a potential investor or potential buyer, the executive summary may be the only thing that is read.   

Make the executive summary brief (no more than two pages), but make sure you showcase the best qualities of your business without glossing over important information; show why yours is a winning business.  Write one to three sentences about each of the following:  

General description of the business Mission statement Management structure Business operations Products/services, the market and your customer Your marketing plan, including the competition Financial projections and plans

 

A clear, concise, and convincing executive summary will intrigue your audience and inspire them to read the rest of your plan.  If the plan is never seen by anyone outside of your business, don’t assume it was a waste of time.  During the planning process, you will have worked through an enlightening exercise that prepares you to run and grow a better business.  

Having this written document available for frequent consultation and review will improve your chances of not only surviving, but coming out strong on the other side of this recession.  Most people think that knowing in the back of their mind what they plan to do is sufficient for survival or recovery, but the difference between a written plan and an idea is usually the difference between failure and success.  

   

   

 

Normally when I talk about testing and tracking in your business, I’m talking about testing and tracking your marketing efforts. The reason is that if you don’t test and track your efforts, you won’t know what marketing techniques you are using that are making you money.

However, there is also another form of testing and tracking you need to use in your business. I call this a general business analysis.

With the general business analysis, you take a complete assessment of your business to see what is making you money. This means analyzing everything.

The first place to start is with your product line. Which of your products are making you money? Which aren’t? Knowing which of your products are making you money will help you decide what products to create in the future.

Now, this doesn’t just cover subject matter. The subject of your products is very important. You need to pay particular attention to this. You also need to pay attention to the format you are creating.

Some of your customers may not want an ebook. Some won’t want books, or videos. The key here is to create each of your products in multiple formats, test them and then determine which ones are selling. Accomodate your customers and their needs for higher sales.

If you sell affiliate products, or you sell affiliate products in addition to your regular line of products, which ones are selling? Which ones aren’t?

It may sound like I’m repeating myself here, but I’m really not. If you sell only affiliate products, or you sell affiliate products in addition to your own products, you want see which ones sell best. For the ones that are selling, you want to concentrate on selling more of these types of products. Get rid of products that don’t sell for you. This will help you increase your profits and avoid wasting time on things that don’t sell.

Examine your marketing. Which techniques are you using? Which ones are making you money? In my business, I write articles and combine it with search engine optimization and linking. This combination works best for me and brings the most profits.

Don’t just eliminate techniques that don’t work though. You want to try as many different techniques as possible to find out what works best for you. Don’t limit yourself here.

You want to stick with what works in your business and get rid of what doesn’t. In order to do this though, you need to determine what is working first. Then, and only then can you find the formula that works for you.

Inspiration for this article comes predominantly from something I read in the finance papers earlier this month. It was an article on greed: specifically  the greed of the modern banker and focused on two aspects of this high profile phenomenon.  The writer provided the short account of the process he encountered in attempting to raise funding in the early 1990s for a new business venture.  I too did this.  My own experience was more productive than his, it seems, but the principles were highly consistent.  Essentially, his conversation with his local bank manager concluded as follows;  
“Of course you’ll offer your properties as collateral.” (Mr Bank Manager)
“No,” I replied. “We’re not giving personal guarantees. We have a good business plan and we’re offering a small stake. You’ll have to take the risk with us, if you want the reward.” The idea that his bank should take an entrepreneurial risk left the bank manager hardly able to contemplate the horror of it.
As I mentioned, I was slightly more fortunate in that my own particular bank manager at the time was a competent seasoned, qualified professional with an understanding not only of the local economy, but also of his role in providing support to new businesses, and his clients in general.  Nowadays, as perfectly represented in the Little Britain series, invariably, it is impossible to discuss and negotiate directly with your branch as the tendency to centralise the decision-making process and to populate branches with inexperienced, under-qualified, doubtlessly less-expensive “business managers” means that the computer, more often than not, says “no”.  
I agreed with other statements made in his piece, such as
“Banks are not so much risk-averse as risk-free. Run a successful business and they make money. Fail and they throw your children on the street and take your house. Nice work if you can get it.” as this seems to me to be the modern day rule.  
The writer was left with a distinctly sour taste in his mouth, coming to the conclusion that banks these days, no longer understand the proper relationship between risk and reward to the point where their original, entrepreneurial mediaeval roots have been forgotten and is dismissed, leaving the individual, be that a citizen or a businessman, to carry the entire risk of any new venture.  He concluded that the payments of over £30 million of bonuses to Barclay’s investment bankers is not of itself distasteful; they are, after all, performing within the terms of their own personal contract with their employer, and most of us can relate to this.  The problem, however, is that these extortionate bonuses are at the direct cost and expense of those of us who wish to stimulate and develop our own private and indeed the entire British economy.
The point, I feel, can be extended even further.  There was a time in the not too distant past, where there was always a long term guaranteed safety net for most of us in Britain; namely, that of a pension.  Not only was there in existence a reasonable and fair state pension scheme, but increasingly employers were offering their own private pension schemes to employees.  We were also working with knowledge that we could retire at and understood age and use these funds, created by our own contributions, to live comfortably during later years.  We now know this is not to be true.  Not only have we seen pension funds, abused, mis-spent and lost, but we now face an extended worklife, where the retirement age is being increasingly pushed back.  Even in Australia, noted for being marginally less impacted by the current global recession, the retirement age is being considered for further extension to the ages of 67 and 70.

Let’s be honest, how many of us actually considered that we would have to work longer.  during the early years of the 21st-century?  How many of us didn’t realise that the low risk, guarantee fund that we’ve contributed into directly for all or most of our working lives lay in the hands of incompetent and non-accountable financiers in the City hedging funds and taking risks with little or no consequence to themselves.

So back to the topic of this article.  That of risk.  What is risk and how do we deal with it?  I have two favoured definitions.  The first made an impression on me during my formative years in a Cheshire grammar school.  I have since learned that this may be, in fact, anecdotal, but it’s still both makes me smile and serves to illustrate the point.  In the annual exams for entry into Oxford and Cambridge, the school’s accepted young genius and protege was posed the question “What is risk?” as part of the entry examination.  His response, as the story goes, was simply “This”. Leaving the rest of the Oxbridge examination paper, blank.
Whilst I do accept that this may not be an adequate definition, it does, however, encapture what many more words could not say.  But, for the sake of completeness, I shall add a more expansive, the definition;

‘Risk’ – exposure to the chance of injury or loss; a hazard or dangerous chance.

From this more practicable definition it appears that it is not so much the risk that we address, but more the potential for loss or injury.

During my extensive years in the world of corporate management, I dealt with decisions that included some form of risk on a daily basis.  During this period, I effected a simple strategy. In order to effectively assess and mitigate the potential for loss I assessed the risk in the simplest terms possible.  It became clear to me early in my career that risk was both inherent in business activity whilst at the same time being potentially avoidable.  So I adopted a strategy along the following lines.  
You can do, one of four things with risk.  Or rather, four things to reduce the potential for incurring loss or injury;
Prevent it; Pass it on; Protect it; Pay it.

Prevent it.
In order to maintain the spirit of both the magazine and they are to shall not at this stage dwell too much on the element of risk prevention.  After all, inherent in the decision to take a risk one has already accepted many of the elements of potential profits and losses.  Price, product, quality, service, market conditions, competitive activity, exchange rates, returns on investment, fitness for purpose, logistics, production, etc etc all contain elements of risk as they all contain the potential for increased expense, reduced margins or higher operating costs.  Additionally, there are literally hundreds of risk assessment consultants, businesses, training courses, skills and techniques that will provide formal methods and techniques for the prevention of many business risks. I have added several links at the end of this article that will hopefully direct you to such courses and agencies.  And after all, in business as in life, prevention is invariably better than cure.  
Continuing on the basis that every decision contains an inherent amount of risk I shall elaborate on my other three categories.
Pass it on.
Keeping things as simple as possible, there is generally only two places to pass on your risk; you can either pass it forward to your customers or pass it back to your suppliers.  As a brief aside, my experience of corporate world frequently adopted a different approach and one which I strongly recommend that you avoid – at all costs ! Departmental Managers incessantly attempted to pass on risks internally between departments rather than address the actual issues at source. For example, the risk of early product release to the market. This happened almost annually with the inherent product performance risks being passed on to the sales division and thus incorporated into both the budget planning process and the sales targeting system with the predictable, if not inevitable result of a permanent shortfall to budget, frustrated and demotivated sales teams, undertrained installation and service engineers and increased numbers of dissatisfied customers ! This detached marketing perspective, based on an independent assessment of the product in the marketplace, lead to further indirect costs in the form of innumerable management meetings, personnel issues for both the increased numbers of sales staff leaving and the associated, unplanned costs of recruitment, as well as the direct costs and losses of unpaid invoices, lost service contracts and the uptake of general business provisions released to the profit margin in an attempt to patch over the cracks.

Essentially, passing on risk in the context of this article means managing the entire supply chain.  This entails the integration of all suppliers into the production or manufacturing cycle; enabling them to understand and contribute positively to your requirements to mitigate or minimize your own risks. By making your suppliers aware of the quality standards, market conditions and, where feasible, your sales and marketing strategy, you can ensure that their performance within the supply chain meet all the criteria you require before you release your product or service to customers.  The other option, of course, is to pass this risk on to your customers.  Undoubtedly, an element of the financial risk could be contained within the profit margins of your sales, but it goes without saying that if you require all of your business risk to be paid for by your customers then, within a relatively short period of time, your pricing becomes less competitive and your competitors more attractive.  This does not mean however that your customers may not be completely averse to sharing some of your risks. By ensuring that the customers requirements are specifically incorporated into your offering and by ensuring that the environment into which your product or service is being taken meets with any environmental and technical requirements you are effectively placing an element of the risk within the customer, without necessarily charging him a direct premium in the price.
Protect it
protecting against risk is a moot point.  In my opinion, by doing such you have effectively admitted your inability to either prevent it or pass it on.  There are, I am certain, such random, unlikely or abstract circumstances that none of us would be able to predict; a certain set of events that could, in principle, lead to injury or loss.  We actually encounter such potential conditions everyday driving to and from place of work.  Despite the incessant advertising for reduced car insurance, multi-car policies, payment-free windows and the like, the cost of car insurance has generally increased over the last decade.  This is not necessarily because we ourselves are worse drivers and a greater risk but is a combination of external factors such as more traffic on the roads, more uninsured drivers, a general propensity to car rage etc.  We are even now encouraged to insure against our insurance; that is to increase premiums even further and to protect against the fact that we haven’t had to claim against our previous premiums.  That is, to protect no claims bonuses.  I may well be in the minority here, but to me, paying additional insurance to protect our previous lack of claims against the insurance that we have already paid is bordering on the insane. But, in these times, popular and practical nonetheless !! Another example, that we encounter daily, is that of property insurance; for example, I can take out home and contents insurance and include my mobile phone, get specific insurance from my mobile phone provider, obtain additional travel insurance in case I damaged my mobile phone while travelling, more contents insurance within my car insurance for the theft of my mobile phone from my car, premiums from my service provider to protect for the loss of the phone, etc etc.  I may not be the world’s most intelligent man, but I am certain that five different insurance policies for my mobile phone will not be likely to prevent me from dropping it as I step out the car!  Insurance against risk is part of Western civilisation. Effectively, you can insure against virtually anything.  In fact, some insurance protection is now required legally and is incorporated into many of our laws and statutes; it is in an unavoidable aspect of modern day life; and so modern day business.  Insurance against loss, and therefore insurance to protect risks, is at best, a necessary evil;  far better surely to understand your product, your customers, your suppliers, your market and your strategies than two give away hard earned profits to nameless insurance agencies, who little or no interest in you or your business but, like today’s banks, have only their own interests at heart. No risk share but all of the rewards for your unflawed performance.
Pay for it.
If all else has failed and the inevitable result of mis-managed risk is carrying the burden of loss.  In business terms, this quite simply means that these losses reduce the amount of profit available for spending or investment elsewhere.  Once more falling back on to my corporate experience, I found a far more palatable way of dealing with such losses was to find some way to predict them, and therefore in the absence of any other solution to defer the payment of these losses over as long a period as possible; namely through the use of reserves and provisions.  Reserves and provisions are little pots of money tucked away in the various company accounts (legally I may stress !!) that are built up over a period of time and utilised/released as and when particular risks manifest into losses or additional costs.  By topping up these little pockets of savings, I managed to create some protection to the profits on an ongoing basis.  These provisions and reserves may be specific, yet unquantifiable, for example, bad debt, or they may be quantifiable but the timeframe unknown.  By using simple algorithms, models and experience and using by incorporating the trends and practices of the business over a period of time I created and grew these little piggy banks. Provisions can only be created from profits generated from sales, and so it could be argued that I was simply under-declaring profits.  In fact, having been confronted by overzealous corporate auditors and accountants and had many stimulating, and indeed exasperating conversations with respect to provisions and reserves, I attempted to adopt a pragmatic approach.  As a commercial manager my role was heavily involved in risk management in the context of protecting profits.  I was responsible not only for the creation of a sales and conditions contracts with my customers but also responsible for the budgets, profits and losses, and for the order process. To me. it was far more relevant and appropriate to understand the context of the risk as well as the likelihood of the loss actually materialising.  Simply adopting a legal approach to a business transaction, blinded me to the implications of the pricing and the market.  Simply adopting an accounting approach, removed me from the specifics of the contract with my customers and indeed my suppliers.  My control of the order process meant that my internal resources, responsible for the delivery of the product and service and therefore for the satisfaction of my customers, gave me a rounded perspective for the management of risks.  I would recommend you approach risk in your business in the same way. Don’t just opt for the easy option and pay ridiculous, irrelevant insurance premiums. Equally, don’t ignore the risks altogether. Work with your supply chain. Train your staff. Invest in quality. Know your market.

In conclusion, risk is a necessary element to life and business.  Even if we wish to permanently and completely avoid risk of any kind by, for example, sitting comfortably in an easy chair during the day and carefully climbing the stairs to bed in the evening, we may still run the risk of inadvertently biting our tongue during mealtimes, dropping the mobile phone in the bath or developing bed sores. Risk in business has a similar inevitability; what protects us, and indeed makes any successful business creative and unique is their ability to predict and manage risk and avoid exhaustive losses by good training, good practice and indeed no small amount of good fortune.

Leicester is a unitary authority area and a city in the East Midlands of England. Leicester has been voted one of the best cities to carry out business. It is popularly termed as the city with no boundaries. It is known as the Space Capital of the United Kingdom and has the biggest Space Science Center for research in Europe, the National Space Center. The economical upsides of this city coupled with multiple benefits and its unique lifestyle make Leicester one of the most desired places to invest. The infrastructure of Leicester is also one of the best in the entire United Kingdom. As it is situated near the motorway networks, it has direct access to all the major roads of the UK.

 

It has the largest mail and pure cargo airport in the UK which manages as much as 30% of the total pure freight of the UK. The wage rate and lower commercial office property are also very low as compared to other cities in the United Kingdom. This feature makes it the best destination for small and medium-sized enterprises. The house rates are also low in Leicester, as compared to the national average. It has a total workforce greater than 1.2 million and that too within commuting distance. It is a home for 2 million consumers and also has a sound educational background.

 

The major industries flourishing in Leicester are Engineering, Food and Drink and Financial and Business Services. It is already home to more than 350 foreign businesses and some of the best companies such as the RBS, Alliance and Leicester. 3M and AstraZeneca are also successfully thriving in this city.

 

The future prospects in Leicester are also very bright. It is estimated that a whopping three billion pounds of investment is going to take place in Leicester in the next five year period. Strong links have also been built with some of the major growing economies of the world such as India and China. The Science Parks prevailing in Leicester act as a major link between education and business.

 

To provide help and proper support to overseas investors, there are various investor development services operating and thriving in Leicester. These services offer appropriate help such as skilled employees, innovation capabilities and financial investments necessary for the growth and development of any business.

 

With such massive potential and unlimited benefits, a large number of people are opting for Leicester. It is a city which provides exciting possibilities and a whole lot of new and innovative opportunities to investors. With opportunities pervasive in almost all the sectors and an existing political harmony, Leicester is considered to be one of the best places for investors to set-up and develop their business.

 

The latest News can affect all Markets- All Traders know this

So it is very important that we get the latest news, and as it happens.

This why the wall street journal is the first tool that every trader needs.

The wall street journal is arguably the most important trading tool that any trader can use. The Wall Stret Journal which is now also available online is have a fantastic special were for a short time it purchased with a 75% DISCOUNT so you can get it for $1.99 per week. With the choice of online or print .so known as wsj, Wall Street Journal is one of the most popular Financial newspapers worldwide.

The Wall Street Journal is nothing less than America’s true newspaper of record, a window on the world of business, finance, international affairs, and all the delicious little nuggets of news that would otherwise slip through the cracks. Wall street journal newspaper covers financial and other news;  the  wall street subscription price is low and very competitive,  and this is why readers prefer it amongst other competitor newspapers.

Wall Street Journal is one of the biggest USA newspapers by circulation. A complement to the print newspaper, The Wall Street Journal Online was launched in 1996. The Wall Street Journal claims to have sent the first news report,[citation needed] on the Dow Jones wire, of a plane colliding into the World Trade Center on Sept.
 
News
 
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The newspaper has won the Pulitzer Prize thirty-three times[3], including 2007 prizes for backdated stock options and for the adverse impact of China’s booming economy. A complement to the print newspaper, The Wall Street Journal Online was launched in 1996. Many Wall Street Journal news stories are available through free online newspapers that subscribe to the Dow Jones syndicate. 
 
This is the BEST BUY on the Internet
 
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Its reputation secure as the nation’s preeminent business news and conservative opinion newspaper, The Wall Street Journal nevertheless fell on uncertain times in the 1990s, as declining advertising and rising newsprint costs—contributing to the first-ever annual loss at Dow Jones in 1997—raised speculation that the paper might have to drastically change, or be sold. [10] It is commonly held to be the largest paid-subscription news site on the Web, with 980,000 paid subscribers in mid-2007.

 Also known as wsj, Wall Street Journal is one of the most popular Financial newspapers worldwide. Please Note: After you complete the simple subscription process you will be able to start accessing your free trial subscription to WSJ. I subscribed to WSJ Online and used a credit card to pay. I’ve been a subscriber for a few years now, and the WSJ is the first thing I read every morning. The WSJ offers a similar variety of subjects with more depth. There is something for everyone in the WSJ. The WSJ offers a similar variety of subjects with more depth.

It is of course a remarkable offer getting the wall street journal at $1.99 per week, which can be purchased monthly or on yearly basis, this is must for every trader in 2009

When most people think of low risk investments, they tend to choose from the following:

· Bank deposits

· Bank savings accounts

· Money market accounts

· Fixed income bonds

· Blue chip stocks

· Mutual funds

There are however, other low risk investments to consider that, in terms of long term capital growth potential can yield far higher returns with low risk.

A high yield on an investment does not necessarily mean taking a high risk. Let’s look at the options and analyze the risk / reward:

Bank Deposits, Money Market, Fixed Income, Savings Accounts

These represent probably the lowest risk investments you can have, and their return reflects this. Your money is safe, but you are unlikely to get rich quick and your capital may not even keep pace with inflation.

Mutual Funds

The fact is that most asset management by professional advisors is poor over the longer term, and is unlikely to be above the 10% level and will probably be substantially lower.

Blue Chip Stocks

With the performance of fund managers being poor, many investors simply try to make their capital grow by picking blue chip stocks and holding them for the long term. Again, performance of this buy and long-term hold strategy normally produces poor long-term growth.

What Returns can You Expect with Low Risk Investments?

You already know you are not going to get rich quick (and neither should you expect to) but wouldn’t you like a low risk investment that produces double-digit capital growth?

Furthermore, wouldn’t you like an investment that unlike the stock market has shown better capital gains longer term with lower volatility? Well, if you are considering low risk investments consider the following:

UK Land – Low Risk and High Rewards

Land can be considered a low risk investment and remains one of the major secrets of the world’s wealthiest investors.

Donald Trump and Howard Hughes are just two investors that have made billions in this area. In fact, many of the world’s wealthiest investors have become rich from land investments.

The Facts about UK Land Growth

In the last 20 years UK average land values have increased by nearly 1,000% and growth in the last year exceeded 30%!

Now consider this is the average growth, with careful selection of land plots capital gains achieved by astute investors have been much higher.

Why You Should Invest in Land

Unlike equities, the capital growth of land investments is attractive and so is the downside risk:

· There have been no major losing periods

· Growth is consistent

· Good gains

· Low downside volatility

UK land looks set to appreciate further as the population continues to expand rapidly and house building continues at a rapid rate.

At one time land investment was just for the wealthy. Today, there are a number of companies helping smaller investors select plots of land to buy, and investments typically start at about $10,000.

Your Options with Low Risk Investments If you invest your money, you want to have a spread of different asset classes to reduce risk and increase rewards.

For most investors this means money market, bank deposits, and savings accounts, fixed income bonds for security and mutual funds and equity investments for growth.

It may be prudent for many investors to diversify some their investments in mutual funds into land and take advantage of higher growth rates and lower volatility.