Art of business

Are you totally sick of hearing about, talking about, eating, drinking and breathing the subject of DEBT??? Talk of our national debt is in the news constantly, and it is frightening and appalling. How could this have happened? And what can we do about it? How it happened is probably because too many of us have not been paying enough attention. We have become complacent and free-spending. We have believed money was easy to come by, the future will always be brighter, and we can worry about debt tomorrow….let’s live for today! Unfortunately, tomorrow has caught up with us. It is time to take action.

There is little we personally can do about our nation’s trillions, but we can take action on our own debt.

So let’s take a look at the positive side….talk of millions, billions and trillions of dollars actually makes our own debt look pretty tiny! But don’t be fooled. You know….perhaps painfully so….if your personal debt is out of control, and now that it has your attention, it’s time to do something about it.

We don’t go into debt on purpose and often are taken by surprise at how quickly things get out of control. Situations in life often come up that are outside of our control. We have all had to make purchases for important items or emergencies when we didn’t have the money on hand. Whenever those situations occur, having a credit card can be a real life-saver. Or perhaps at other times, our impulses get the best of us, and we just can’t resist using our credit card for that hot new toy or gadget everyone is drooling over. Then the bills start rolling in.

When we allow things to get out of hand is when we suddenly realize we face a mountain of credit card debt. If you are also feeling uneasy about the security of your job or the stability of your company, it is time to buckle down, stop using your credit cards, and establish a strict payment plan for your existing debt. You may have difficulty paying it down otherwise, and you’ll wind up paying a ton of interest for years after the purchase was made.

Since you have likely not yet racked up millions, billions or trillions of dollars in personal debt, you can take control and do something about it. Besides that, there are several options available to you. Some people can dredge up some self-discipline, roll up their sleeves, put on their money management hats, and figure things out. So they would rather deal with their credit card debt themselves. They know where they went wrong, they know they can fix the problem, and they need to just set up a plan to do it.

Most people with too much debt have more than one credit card or loan; so if you’re going it alone, the first thing to do is list and review all your obligations and face up to that ugly place where you have arrived. Once you have all your information together, the next thing you should do is give your credit card companies a call. Ask the customer service representative if you can get a lower interest rate on your account. The call is usually toll-free, and within minutes you will know if you are eligible for this service. This might help lower your payments and make your plan more manageable.

There are a number of resources available that can either give you advice or that can help you get back on track in your goal to eliminate your credit card debt, including websites, books, and tapes on debt management. Some websites can link you live to a representative who will walk you through the steps you need to take to get your debt under control.

But what if you feel overwhelmed….don’t know where to start….are uncomfortable dealing with credit card companies….or just aren’t sure if you can ever pay off such a mound of debt? In these instances, debt credit counseling services and the use of a debt agency or debt settlement agency makes sense. If you feel you just can’t handle it on your own, then you are right to seek professional advice.

A legitimate credit counseling service deals with the credit card companies and your other current creditors on your behalf to get you a better rate and more reasonable repayment schedule. Since they work with these companies on a regular basis and are experienced in what to say and how to day it, they can often succeed in working out the most effective payment schedule for your particular situation….better than if you were to call them yourself.

Now, you’ve done well so far by deciding to take control of your credit card debt, so don’t fall down on the job now! You need to beware, as this is where the scams and rip-offs can come in. You must do your research to make certain that you select a good credit card debt settlement agency. There are excellent debt credit counseling services out there which can help with either debt elimination or with debt consolidation, but don’t be sucked in by unrealistic promises! No one can work miracles, so do not believe the ads of credit card debt settlement agencies that promise to erase your debt overnight and get you a higher credit rating to boot. It isn’t going to happen.

4 SUSPICIOUS SIGNS OF A SCAM OR RIP-OFF

No Accreditation – Look for credit counseling services that are members of the National Foundation for Credit Counseling

Upfront Fees – Many times credit counseling is a free service. If they do charge, it should be a minimal fee. Run the other way if you are asked to pay a large upfront fee.

Ask How They Work – Legitimate agencies will clearly explain their fees (if any), the methods they use to help manage your debt, and what you will be expected to do for the most favorable outcome.

Unrealistic Promises – Only con artists will tell you they can settle your debts for little or no money and that your credit rating will not be affected. You do owe the money and you do have to pay it back.

Whether you use credit counseling services online or in person, their role is to help you reduce your debt and to help you establish good financial habits. They can help you figure out where you went wrong, what you can do to fix things, and steps you can take to keep from getting into the same boat again. A good counselor will help you work out a plan that suits your situation and decreases your debt one step at a time. The services will work with your current creditors to get your interest, and possibly even payments, lowered. Credit card counseling can help you get your credit score back up and keep it there.

When starting a small business you can operate from your home, the golden rule here is to go with something that utilizes your talents and that you are passionate about. Your success will be almost guaranteed if you follow this advice.

Do you have a green thumb? Are you a “people person”? Do you love your pet even more than your spouse? Whatever the case may be, here are some ideas for you to try on for size:

SELL, SELL, SELL!

Sell direct marketing and/or network marketing products. Whether you choose catalogue sales, the home party plan, website sales, or any combination of the above, the product possibilities are almost endless.

Sell indoor house plants and accessories outdoors at your local Farmer’s Market/Flea Market. You can raise these plants yourself or even buy them wholesale. You can also find wholesalers of silk plants through an Internet search.

Sell “House Warming” gifts, such as silk plants, to Real Estate Agents to give to their home buyers. You can start with the agents in your town and branch out from there with a website and make extra money by selling real estate-oriented advertising space on your site.

START ONE OF THE FOLLOWING SERVICE BUSINESSES:

An Errand Service

If there are a lot of senior citizens or disabled people in your neighborhood or hometown, you could start an errand service. Take people to/from the grocery store or doctor appointments, pick up prescriptions, groceries, etc. You could also do minor chores for these same people, such as lawn care or home maintenance. Run a small ad in your local paper and/or have business cards printed up.

A Lunch Delivery Service

Deliver lunches to hungry workers at local businesses. Print up and distribute fliers letting businesses know you deliver lunches from local restaurants. Charge a few dollars over the price of the food to cover your expenses and give you a profit and voila! This is a very easy business to get started. Just do some research on the net to get going.

A Pet Service

Become a pet bather, pet boarder, pet sitter, pet walker – the possibilities are only limited by your imagination. You can also sell pet accessories to local retailers and on the net to make even more income!

BECOME AN AFFILIATE MARKETER

There are literally thousands of online merchants that offer commissions to marketers who promote and sell their products via the web. These products range from clothing, books, travel reservations, and how-to courses, just to name a few. You can sign up with merchants directly, or go through one of the websites on the net (most of them free to join) that bring merchants and affiliates together, such as Click Bank or Commission Junction. These sites allow you to search merchants by category. If you sign up through them, they handle collecting your commission payments from the merchants for each sale you make (for a small fee, of course). You will need to create a website(s) for your product(s) and do some keyword advertising to attract customers.

START A BLOG

Do you have a hobby or business background that would establish you as an expert in a certain field? If your answer is “yes”, then start a website and write a blog (online personal journal). You could sell a related product or products on your website, or you can simply sell advertising. With advertising programs such as Google’s Adsense, every time a visitor to your website clicks on an ad, you get paid! Search for “Adsense” and “pay-per-click advertising” sometime to see what I mean.

Remember to look into your local and state requirements for starting a home-based business in your area. Most important of all, don’t give up on your dream of working from home. You can do it!

Start your own production company, the way the successful people did. This is just to copy the materials and methods and the way they handled them to bring a good profit, liberal income and greater benefit to the society.

FINDING RESOURCES:

Begin with an analysis of your resources. The resources will include the tangibles like land or building, a work shed or a factory building, electric power, water, raw materials, machineries for production and tools for labor saving, suitable well trained work force with skilled supervisors and efficient managers.

A liberal quantity of money supply is a very good support to own a production company.

INTANGIBLE ASSETS:

You should have some special intangible assets like good education, first-class family and business back ground, a good resource of technical know how and working skill and experience.

PRODUCT AND PROJECT SELECTION.

Find out a very good marketable product from the retail market and consult with traders and whole sale and retail distributors. You must select a range of products having reasonable continuous demand in the retail market. You can study the needs by a survey and calculations with proper understanding about use and the durability of the product.
You need to buy suitable machineries with regular maintenance contracts. Do observe a demonstration and make a trial production also for finding the capacity and efficiency of the machine, before making the payment.

RAW MATERIALS.

Please contact suppliers of raw materials and develop an understanding to buy at a low price. Sometimes you may have to participate in auctions to buy your raw materials. Become a member and practice in buying the goods economically. Some examples are coffee seeds and tea leaves which are sold in weekly actions.

SUPPLEMENTARIES.

You require arranging for supplementary items produced by others so that your production is not affected by a stoppage of their production. Coffee needs chicory for blending.

PACKING STYLE.

*Also arrange for packing materials needed for the produces. They may be simple polythene bags readily available in the open market.

*Sometimes you may need a special size to accommodate the size and shape of the product.

*There may be requirement of cartoon boxes with special printing and lamination.

*In addition you need inner packages made of polythene bubble packs or molded polyurethane sockets to fit the products perfectly, so that it is safe in transport. The electronic gadgets are packed in respective molds of polyurethane packs.

Consumer goods are packed generally in polypacks, sachets and pouches.

MARKETING STRATEGY.

*BRAND NAME: You will have a good brand name for your product and a plan to distribute the commodities in the market with a marketing strategy.

*SALES EXECUTIVES: You will have a team of sales executives with a marketing head to distribute the products in all the retail counters and whole sale markets.

* DIRECT SALES: Besides you will have a direct marketing team also to cover more area under introduction, demonstrations and product coverage.
You will start production with a special brand and supply to the needy counters with a big bang of advertisements.

NO STARTING TROUBLE.

You will not have any starting trouble as the product selection, required machineries and distribution arrangements are well planned and accomplished with necessary care and attention.

Every day you dread the trip to the mailbox as the number of bills continues to grow. In particular, your high interest credit cards increase your household debt by the hour. Consider looking at combining your various debts by taking out a debt consolidation loan. There a several advantages of a debt consolidation loan. But be aware that debt consolidation is not a means to get out of debt free, or an easy solution to your financial problems.

Debt consolidation requires an honest assessment of your spending habits and lifestyle choices for a solid financial future.

Designed to reduce your monthly payments, a debt consolidation loan enables you to take control of your finances and eliminate the strain on your monthly budget. Your debt obligations are covered by a manageable payment and allow you to keep your credit rating from slipping. Used as part of your commitment to debt reduction, consolidating your loans is the first step to becoming more educated about your finances.

In most cases, your consolidated loan payment will feature interest rates lower than those of your other debts, especially the sky high interest rates typical of retail and major credit cards. Most major credit cards charge interest rates around 18%, while those of retail cards can climb as high as 28%. Lower interest rates mean that more of your monthly payment will go towards reducing your principal loan debt. Compare this to attempting to meet the minimum payments on your numerous debts where you end up barely covering the interest accumulation.

A debt consolidation loan usually arranges your payment schedule over a longer period of time at a lower interest rate. While that may seem contradictory, having a longer repayment schedule will benefit you in the short and long term. In the short term, you will have lower monthly payments that accommodate your income and living expenses. In the long term, having a solid dollar figure enables you to work out a household budget that will help you keep track of your household finances. By making one convenient monthly payment to your creditors, compared to struggling to make several, you will prevent your credit rating from falling due to missed payments.

Debt consolidation is the perfect time to take a hard look at your household budget. Canada’s household income debt is hitting record high levels, in some cases as high as 150 percent of disposable household income as reported in the Globe and Mail. As it becomes increasingly difficult to get household debt under control in the face of today’s recessionary conditions, it is crucial to adjust your personal debt tolerance levels. Often it isn’t until the debt has become so unmanageable that consumers are forced to explore options such as debt loan consolidation.

Taking out a debt consolidation loan can help reduce your monthly payments and put a limit on ever-increasing interest rates. Consult with a financial professional who will help determine if a debt consolidation loan is right for you.

Developing and managing a website on a shoe string budget isn’t as challenging as it sounds. You can create and maintain a professional looking web site to promote your business for less than $500 a year. After you’ve settled on what type of business you plan to start, here is a list of steps to walk you through the process of creating your own web site:

CHOOSE A NAME FOR YOUR BUSINESS
The first step is choosing a name for your business so that you can register a domain name. Many hosting providers include the domain name registration with the purchase of a hosting package. Consider picking a name that is self-explanatory in regard to the product or service you plan to offer. You may want to pick a name that starts with a letter in the beginning of the alphabet as many directory sites list businesses alphabetically and you’ll appear closer to the top of the listings by default.

SELECT A HOSTING PROVIDER
Hostmysite.com is among the best hosting providers. It allows offers you the option of paying quarterly instead of annually, which fits better in the often limited budgets of small business owners. Hostmysite also offers tech support 24/7 to help you with any IT problems you run in to in getting your site up and running on the web.

CREATE YOUR WEB SITE
Programs like Microsoft Publisher or Adobe Dreamweaver are fairly inexpensive and very user-friendly-even for those of you who find a foreign language easier to understand than HTML. You can build your whole site without using a word of HTML. Publisher is a bit easier to use but Dreamweaver allows you the option of building your sit with HTML if you wish. Having built web sites with both, I prefer Publisher, due to the end-result.

MAINTAINING YOUR SITE
Need to update something on your site or change pricing? One of the main pros of building your own web site is being able to maintain it yourself. This makes your website is easy to keep up-to-date and accurate. If you have someone else running your site, you have to put in requests to have them change things for you.

ACCEPTING PAYMENT
One of the most cost-effective ways to accept payment is via reputable services like PayPal which takes a convenience fee but doesn’t cost you money out-of-pocket. Hostmysite offers the option of integrating MIVA merchant to your website which is included in the cost of most hosting packages. MIVA allows you to accept payment via PayPal as well.

ALTERNATIVES
On a budget of less than $500? Options like Google Apps now offer free hosting with limited web pages which allow you to create a web site for free. The result is not nearly as professional looking, but it is definitely acceptable as a temporary solution for your business. A web site is a must for a business to remain competitive at this day in age!

We choose to be entrepreneurs for intensely personal reasons. Fundamentally, we become entrepreneurs because we find it impossible to accept another’s definition of success for our lives. We choose instead to define, then pursue our own success. This is what it means to me to be an entrepreneur: To become everything that I could be for myself and for those within my sphere of duty.

Abraham Maslow, an American PhD in psychology, identified this entrepreneurial motivation in his Hierarchy of Needs* model, as the highest quest a human could pursue. Maslow’s thesis argues that the satisfaction of human need is actually a progression through hierarchical levels (i.e. that one needs to satisfy level 1 before proceeding to the higher level 2 and so on)

After satisfying level (1) needs, that are biological and physiological in nature like air, food, drink and shelter, we humans then seek to satisfy level (2) needs that encompass safety issues like security, order, law and stability, before progressing to level (3) needs of belonging and love which we derive from family, work groups and relationships. Following the satisfaction of these needs, humans then look to satisfy the higher level need for self esteem (4) which encompasses mastery, independence, status and prestige. Whilst the majority of humans stop here, this level does not satisfy the entrepreneur. They want more. They are driven to satisfy Maslow’s level (5) need which he titled “The Need for Self Actualization”.

So, what it means to me to be an entrepreneur is to be able to realize my personal potential, to have a sense of self-fulfillment and to seek continual personal growth and the ultimate in peak experiences. i.e. Self-Actualization. It is not difficult to see that a self-actualizing life that lives to its full potential actually accomplishes it purpose in life or if you like its destiny. This is the real entrepreneurial promise and not just the money, which entrepreneurs see and use as a tool to satisfy these higher level needs.

The famous Virgin brand founder and global entrepreneur, Richard Branson, sums it up best when asked what it meant to him to be an entrepreneur: “It is the satisfaction of doing it for yourself and motivating others to work with you in bringing it about. It is about the fun, innovation, creativity with the rewards being far greater than purely financial.”

Now, the less experienced or perhaps less disciplined entrepreneur can achieve all of the above without regard to their duty. The duty I speak of is the entrepreneur’s responsibilities to their life partners, their children, their employees, their investors, their stakeholders and to their community. Being a practicing entrepreneur for over 25 years and having started 13 businesses, I have learned that to be a true entrepreneur is to incorporate the “win-win” philosophy for all those within your sphere of duty as well.

So, whilst being a entrepreneur means self-actualization for my life, I also believe it means fulfilling my duty. Just like the ancient Chinese philosophy of yin-yang, I believe that true entrepreneurship incorporates both self-actualization and duty as complementary opposites within a greater whole.

Reference: * Abraham Maslow’s article “A Theory of Human Motivation” appeared in Psychological Review in 1943 and further expanded upon in his book: “Toward a Psychology of Being.”

Filing bankruptcy can create many problems for you down the road. It is very important to look at all of your options before you file. There are ways to get the debts paid without completely ruining your credit with a bankruptcy mark. Understanding the consequences of bankruptcy may be enough to coax you into getting the debt paid instead.

Here are some of the consequences that you will suffer if you file:

Credit Report

Bankruptcy stays on your credit report for seven years. That is a long time to have such a bad mark on your credit history. This can keep you down as you attempt to move forward with your life after bankruptcy.

Loans

You will not be able to obtain a loan for anything, including a home, car or even credit cards when you have this on your credit report. This will keep you from purchasing the things that you want when you need it. It is worth thinking very hard before you make the decision to file bankruptcy for this reason alone.

Insurance

You car insurance will sky rocket if you file bankruptcy. Credit reports are used to determine your insurance rates. This may not sound fair, but the insurance companies look at a credit report to see how well you handle certain situations. If you are careless with your finances, you will probably be careless in other aspects of your life. It doesn’t matter if that is true or not. It only matters that it’s how the insurance company looks at it.

Losing It All

If you file bankruptcy, you can lose the things that you had a loan on. Such things could be your house, your car or any other objects that you have in your possession. When there is an outstanding loan on these things, filing bankruptcy is a quick way to get it repossessed. The only way out of this is to agree to pay those particular loans off. This may be possible but be sure that you can afford to do it. Once your bankruptcy has gone through you cannot file for another seven years.

It Costs Money

Bankruptcy is not free. You will have to pay lawyer and court fees. These can add up to a lot of money. It could actually be cheaper to pay off the loans than to file. Be sure that you compare the two to see which one is best for you. If the two dollar amounts are close to each other, it is better to simply pay off the loans so that your credit report will look better.

There may seem to be no other way out but to declare bankruptcy. Be sure that you look at all of your options first. It is probably the easiest way out of unmanageable debt, but it sticks with you for years to come. Only take this route if you have no other options left.

AVOIDING THE DEBT TRAP: A SIX STEP STRATEGY

It seems that we will always want for something. Who has everything? Who can really say that they are very satisfied? The problem is that want can lead us to make purchases that our wallets are not able to pay for.

With the invention of the credit card, a piece of plastic that we now trade with, it has become so easy to satisfy our wants, whims and fancies.

We have essentially by passed the process of having a goal and of working towards it. This may be one reason why so many people are dissatisfied. We have what we want but we have no process whereby we have gained it, and therefore no satisfaction in the attaining of it.

It’s like that saying, Anything worth having is worth working for.’ This is evident in the behavior of children that they have no appreciation for the gifts that they receive. They have not earned the money to buy the gift, so they do not appreciate the cost to attain it and do not grieve when it is ruined, either purposefully or unintentionally.

The key to contentment then must be in our attitude in the journey towards attaining those things that we want, rather than in our arrival. If we set off with a plan of how we are going to achieve our desires, a willingness to work hard and labour long, with patience as our heart’s guard, we are more likely to have peace for the journey and to arrive at our destination. It is when we bypass planning in our overriding passion to possess that we set ourselves up for a fall.

How many of us have found ourselves in crippling debt because of our passion to possess instead of our wisdom to control our wants?

Here are some steps to avoid the debt trap by learning to delay gratification:

BUDGET
No, it’s not a dirty word and, yes, it is achievable! Draw up a budget and stick to it. If you don’t know how, there are plenty of online sources to learn how. Oprah’s Debt Diet is a great inspiration if this is your issue. Have a provision in your budget for miscellaneous items because from time to time you will have genuine needs. A wise person in my life once told me, “For every cent you don’t have a plan will be a cent wasted.”

WINDOW SHOP
Look first but don’t spend until you know you have the best deal and you really need it. Compare quality and prices between vendors. It is amazing what bargains you can find if you take the time to investigate your options. Further, the process of looking may sort out if this is a need or a want.

SPEND ONLY WHAT YOU CAN PAY FOR
A common trap people fall into is spending beyond their limit. We are used to paying for all our commodities in arrears instead of in advance. With credit providers offering extended “interest free” periods, this is a trap for most people and makes it difficult to live within your means. If you are borrowing for something today, you will be sacrificing to pay for it tomorrow.

Make sure it is what you want before you commit yourself, and that you will be able to afford to pay for it tomorrow. In economics, we call it opportunity cost. You sacrifice the opportunity to purchase one item, when you purchase another. Are you happy to forgo other items to pay for the item you are purchasing on credit?

DISCUSS IT WITH A FRIEND OR PARTNER
Be accountable to someone in your life. The process of convincing another person that you really want and can afford something can be very telling.

HONOR YOUR DEBTS FIRST
Too commonly, people who are in debt use money coming in to satisfy their wants first. It is important to honor your debts first before you satisfy new needs or wants.

DEBT CONSOLIDATION
Often you are paying excessively for credit or store cards. Be wise. Fully investigate the best options in the banking industry for your money. Be smart. The little foxes often spoil the grapes. Banking fees and charges can erode your finances. Consider debt consolidation but make sure it is right for you.

In closing, if you feel like your life is spiraling out of control take the time to find a good financial or debt counselor. Bankruptcy is a very poor option, when a financial counselor can help you to dig your way out of the debt pit you’ve dug for yourself. There are many available within the community. If this is you, make the effort to seek one out. They can take a lot of the negotiating with creditors’ stress off you.

Wants will always try to undermine your life if you allow them to. Get on top of your debts by implementing this six-step strategy.

Maximizing your chances at scoring a great loan, with low interest and friendly repayment terms, is like an athlete training for a major sporting event: it takes time, preparation and effort. Get your credit history in shape by doing the following:

- Do the obvious thing: Pay all your bills on time and pay no less than the minimum amount due. Hopefully, you already do this by nature, but if you have any recent missed payments, make sure to keep all your bills current for at least a year.

For every bill, pay no less than the minimum amount due, and for credit card payments, you optimally want to pay at least a little more, even if it’s just $10 more. Whether or not that’s a little too difficult, you’ll want to do the following:

- Clear up your budget. Do whatever it takes to make sure you have enough money to take on a new set of loan payments: trim your budget, get a 2nd job, cut the subscriptions and stay at home as much as possible. Sure, you’re not going to take on that new loan for some time, but you can use the surplus to pay down credit cards, keep ahead of the bills or to just save money.

- Check your credit report and make sure to clear up any errors. You can get one free report per year from all three major bureaus through annualcreditreport.com. Make sure you recognize every account and every delinquency on these reports: if anything is reported as delinquent that you know is not the case, contact the bank or credit card company that reported the offending transaction and clear it up. Throw money at them if you must, but make sure bogus delinquencies come off your record.

- Take time and money to pay your credit card and loan balances down. If you’ve been treading water on a large credit card balance or two for a couple years, now would be a good time to hammer it down. If you have a chance to consolidate those bills to a credit card with a lower rate, do it, and focus on paying as much of it off as you can. As you pay those balances down, your minimum payment required will go down, and your credit score will go up. If you plan to consolidate balances with a new card, maybe one with a 0% introductory APR, try to do it sooner rather than later, because the last item is very important:

- If you’re planning on a loan for a major purchase, do not apply for any other financing beforehand. Any credit application you submit goes on your credit history and does negatively affect your credit score. If you want to get another credit card or a personal loan to consolidate debt, do it well in advance. Try to avoid applying for any other credit six months before you plan to apply for that big loan. Spend that time paying down your debts and keeping current, and future creditors will strongly approve when you reach out for an excellent loan.

If you want an excellent line of credit or a loan, the key is to work towards building strength in your credit history. Get your credit in shape and, when your big chance comes to get the best loan possible, your credit profile shall conquer every obstacle.