Famous Business Strategies

Either simply a looker-on or a player in the world of business, you see millions piling into the accounts of world's most famous businessmen and naturally the question pops "How?", wondering what is the alchemy they've discovered? Yet, there is no magic here - it's mostly pure strategy. And what it takes to spot it and make it real.

Strategy

Identifying the best strategy for your business is the key to all success.

It should give you the lift that makes a difference. The art for your strategy success is planning.

• settling a vision for your business
• defining a mission
• setting out objectives
• establishing values, goals and programs.

Vision

It is all there, it is all important, but first there is the vision.

So, is vision a spark, is it a moment? How much is inspiration and how much hard work? Is it 99% perspiration and only 1% inspiration? Can we all be geniuses?

According to Edison's theory I would say yes, if we are committed to hard working, as it is primarily the hard work that makes a genius. Inspiration comes on the way, when involved in as much action as you can handle. Contrary to the conceptual meaning, inspiration seems to be driven by propitious conditions - in this case, by work.

Hard work

So, what really happens behind the fairy-tale success stories is usually not what some would expect - a brilliant, extraordinary, never heard of discovery that changed the world, but, disappointingly enough, plain hard work. What these people have is what I would call "industry intelligence". How is it acquired? Working of course. That is, sharply aware of their industry environment, learning all the rules and deeply involved in their own businesses, success people have at some point of activity a vision for their business that proves to be a winner - the revelation naturally produced as a result of their work commitment.

Let's take the example of three American legends: Sam Walton, Warren Buffet and Bill Gates. What do they have in common? The winning vision, the winning strategy.

Sam Walton

In the case of Sam Walton, no new, innovative business models were launched. He followed the existing low-price retailing pattern but the competitive successful strategic approach was that instead of focusing on large cities he took his business to small towns becoming the low-price leader in rural towns.

Warren Buffet

Warren Buffett's success resides in his different approach to value investing. While usually investors look for stocks they believe undervalued by the market, Buffett does not take into consideration the stock market aspects, such as for instance the supply and demand ratio. He analyzes the stocks on the basis of their potential as companies. He is interested in long-term results, such as ownership in companies with capacity of generating money, namely, companies with a strong name, great historical results, strong management and industry expertise.

Bill Gates

Neither is the case of Bill Gates to have made extraordinary innovations. Rather than innovation, he had the ability to put together other people's ideas, thus producing big hits and making a profit. He did that first when adjusting BASIC programming language for the Altair 8800 (first PC) - neither of which was his original creation. Then, the same happened with DOS, which Microsoft bought (the original version was QDOS) and adjusted.

Business strategies implementation

Then, action comes. As the saying goes, planning without action is futile, action without planning is fatal. It takes guts to act boldly and take whatever risks are necessary to put your vision into practice. It takes a great deal of tenacity to surpass obstacles and get over unfortunate happenings on the way. So, how did they implement their planned strategies? What was the outcome, what principles resulted for them to base their businesses on?

Warren Buffet

For the implementation of his strategy, Buffett has drawn his company choice principles, involving a great deal of analysis of business, management, financial aspects and a great deal of patience, waiting for the right price once the possible investment has been identified.

On businesses

• simple and understandable
• consistent operating history
• favorable long-term prospects

On management

• rationality in treatment of retained earnings and investment of company profits
• disclosure of all aspects of company performances
• capacity of thinking independently of other managers' way of thinking.

On financials

• look for return on equity, not earnings per share
• analysis of free cash flow growth
• unique niche companies with high profit margins
• look for companies with at least one dollar of market value for every dollar retained

On stock valuation

• reasonable price for the company
• stock valuation analysis followed by analysis of a possible significant discount, case in which it will be purchased.

Success depends on the investor's dedication to learn and follow the principles.

Sam Walton

He gives his ten rules for success in the book "Made in America, My Story":

1. commitment to business
2. profit sharing with partners
3. partners' motivation, competition encouragement
4. total communication with partners, trigerring their commitment
5. giving appreciation to what your partners do for the business
6. keeping spirits up in celebrating success but also in treating failures with a touch of humor
7. listening to everyone in the company, encouraging their talking
8. a sustained exceptional relationship with the customer - exceeding his expectations, showing appreciation, apologizing for mistakes
9. finding a competitive advantage in controlling expenses
10. originality, doing things differently there is a good chance to find unexplored niches.

Bill Gates

Microsoft's corporate mission "A computer on every desk and in every home" shortly became a reality. Offering an easily accessible operating system for computers, perceiving the importance of customizing their product to the ordinary client and not only to computer 

engineers and thus addressing masses, Bill Gates succeeded in putting together and promoting towards a tremendous popularity (and profit accordingly) the world's dominant operating system.

What these people have in common is nevertheless an extraordinary ingenuity: they innovated their industry domain, building their own strategy tailored for their own business particularities and went further to its implementation. 

Finance Your Real Estate Investment Properties

Unlike traditional residential real estate mortgages, real estate investment financing is way more creative and offers more options than you think. The golden rule in real estate investment is OPM (Other People’s Money).

I have enough money; shouldn’t I buy my real estate investment for cash? No, I absolutely advice against investing large sums of cash into a single real estate investment. There are two reasons why not. First, you give away most of your profits by not leveraging your real estate investment. Second, it is far too risky to put every egg into one basket.

Let me explain the leverage issue for a moment. I will give you an example of a $100,000 investment property that typically increases its value (appreciates) by 7% average a year. Maybe more, maybe less depending where you live. Paying all cash for this property will yield in a 7% appreciation profit plus the net profit from renting the place. Now you’re looking at roughly 15% of returns.

If you’re conservative with your investments you might be satisfied with this kind of a return. These days you might get equal or better returns with other conservative investments minus the hassle of being a landlord. But you don’t mind being a landlord, because you understand and utilize the leveraging method with financing your real estate investment.

With the example above you will make roughly $15,000 a year in profits from your investment. Now let’s take a closer look at what leveraging can do for you. Today a typical real estate investor can get financing as high as 95% - 97% of the purchase price. Occasionally 100% financing is available as well. But this would be totally unfair in this example to compare this with all cash purchasing.

15% return sounds like a lot, but wait till you see this. Let’s assume that the rental income will cover all your expenses including the mortgage payments. Taking the same example from before your net return would be the 7% appreciation profits of your property. This would translate into a $7,000 a year profit. With a 95% financing in place you would get $7,000 return on $5,000 (your 5% down payment) invested. This is a whopping 140% return on investment.
With the same $100,000 you can go out there and get 20 investment properties, finance 95% of it and make an amazing $140,000 profit a year. This beats the projected $15,000 profits with an all cash transaction any day.

Of course you will have a lot of trouble to get financing for 20 properties in a single year. Typically 5-6 new rental property mortgages are the maximum lenders will allow these days. This is the signal to get creative with your financing structures.
In this case sellers financing would be your key to achieve your goal of maximum leverage of your investment dollars. Despite the message from all these late night infomercials, seller financing is harder to get than they want you to make believe it is.
It all depends on the seller’s ability to offer seller financing and the seller’s motivation. Only about 1 out of 20 properties for sale are able to get seller financing. That means that there’s no mortgage balance on the property. From this narrow selection the seller must be motivated to sell under these conditions. This could be tax reasons, time constraints, personal reasons and many more.

As you can see this translates into a lot of work to achieve your goals. But let me tell you one thing. This separates the tire kicker real estate investors from the real go-getters. Wouldn’t you agree that a little bit of hard work and determination is well worth it to build a real estate empire?

I think it is well worth the trouble and hard work. At the end of the day you keep building your real estate investment portfolio and sooner than later you will be able to cash in.

Financial Plainning

If you’re shopping for financial planning services, it may seem like a jungle out there. There are advertisements everywhere, and everybody seems “nice,” but nice won’t cut it when it comes to your money. How can you cut to the chase and find a financial planning expert that you can trust.

Start by learning what the different designations mean. You may have noticed that there are three popular financial designations that most financial planners hold. You’ll want to choose one with one of the following designations.

Like many CPA‘s, a Certified Financial Planner (CFP) must attend about two years of training and pass a rigorous test. This designation is given by the Certified Financial Planning Board of Standards, a national organization. After two years of preparatory courses, a Certified Financial Planner must earn a passing grade on a ten-hour test given over the course of two days. The Financial Planning Association can provide you with a listing of Certified Financial Planners.

You may have also encountered some Chartered Financial Consultants. These graduates of American College in Pennsylvania have completed a series of exams and obtained real life experience before earning their designation. However, the program is geared more toward the insurance profession than broad based financial planning. The Society of Financial Professionals can provide you with a listing of these consultants.

The American Institute of Certified Public Accountants offers its own designation, a Personal Financial Specialist (PFS). Certified Public Accountants can earn this additional designation by completing a series of comprehensive tests and demonstrate experience in financial planning. Most of these designates are members of the National Association of Personal Financial Advisors, and they can refer you to a PFS in your area.

All of the above certifying agencies require at least three years of experience prior to certification. Other designations do exist, but these three are the most reliable. Since many unscrupulous individuals decide to call themselves “financial planners,” you’d be wise to look for one with a certification from a nationally recognized organization.

Since the Securities and Exchange Commission doesn’t regulate smaller financial advisors (those with under $25 Million under advisement), it is up to you to screen your financial planner carefully.

Ask your planner for a copy of Form ADV, Part II. If you aren’t familiar with the form, they will be. This form is required by the Securities and Exchange Commission from every financial planner and should spell out how and what the planner will be paid and any incentives they may earn. Sometimes they will provide this information in brochure or pamphlet form, but you’ll know up front what your fees will be.

Finally, check references. A reputable planner won’t mind giving you a few references to call. Find out if they handle portfolios similar to yours and if the client is satisfied with their services. Ask about fees.

It’s your future, so doing a little homework up front and making sure that you‘re getting what you pay for is well worth it in the long run. Make sure that your financial planner holds a nationally recognized designation and check him out before you hand over your hard earned money. Your time and effort is a wise investment when shopping for a financial planner.

Best Resources for Entrepreneurs

1. Small business association

The small business association remains the best asset for anyone jumping into the field of entrepreneurship. They offer planners, services, tools and local resources. In addition to their content on their website, the entrepreneur can also access a free e-newsletter as well. They offer free online training and different types of government assisted business loans. With the small business association, everything needed to start up a business is at your fingertips. They offer free resources not only for those who are striving to start a business, but they also assist those who have already started their own business as well.

2. Score

Score offers online workshops, from business planning with a snapshot business plan to helping to determine if you can afford to start up your own business. They also provide workshops in making your new business competitive with making the best decision on prices, analyzing competition targeting the right market and creating a competitive advantage above other companies in that field. In addition, they provide workshops in growing, marketing and maintaining your business as well. They also provide extensive how to resources on all aspects of starting and maintaining your business without having to go through the workshops. Their business tools section feature templates for business plans and cash flow plans.

3. Entrepreneurship

This website offers the new entrepreneur tips, articles and resources on all aspects of entrepreneurship. They provide articles on every fundamental aspect of starting up a company, from start up costs and finding investors, to how and who to hire for your new business. They also offer comprehensive data on how to handle situations that can arise when a customer is not satisfied with the services provided. They also offer a wide range of legal resources necessary to starting and maintaining a business. They also provide a blog where new business owners can connect to others who are also becoming entrepreneurs with their own company..

4. Stanford University

Stanford has always been one of the top colleges nationwide for entrepreneurs to attend. Now, they also offer resources for those who did not attend the school but want the resources available. The website offers online lectures, free of charge on many different aspects of entrepreneurship. These topics include Creativity and innovation, opportunity recognition, product development, marketing and sales, finance and venture capital, leadership and adversity, globalization, social entrepreneurship and career and life balance. In addition, they add new videos every day to help the entrepreneur achieve their goals, whether they attend Stanford, another college or have no formal training at all.

5. Forbes

Forbes offer all entrepreneurs tips and tricks through their in depth articles on boosting business, financing businesses, human resources, business laws and taxes, different new, promising companies, sales and marketing and management. They offer numerous other articles as well, such as “millionaire high school dropouts”, and “the greatest risks they ever took”. These articles help to encourage the entrepreneur who may think that since they do not have formal training, they can still succeed, as well as teaching them that sometimes when you take a big risk; it will pay off the biggest as well.

6. Entrepreneur

Entrepreneur offers resources on many aspects of starting up a business. From franchise opportunities to growing your business, they offer a wide range of resources to any entrepreneur. This website offers free informative articles on a wide range of topics including online businesses, management, home based businesses, human resources, money, marketing, advertising and more. In addition, when one of these topics is chosen, there are numerous sub categories as well, making it easy for anyone to find exactly what they are looking for. More great features for this website are the entrepreneur magazine that is available online and in print, and the entire site is also available on most mobile devices so the entrepreneur can take it when they are on the go.

7. Bloomberg Business week

Bloomberg’s business week has numerous articles available online for aspiring entrepreneurs to use as resources. While this was normally available in print only, it is now available online as well. The online version has resources from different articles, with the resources and links needed embedded in them, but also numerous resources about the new health care reform act and how this will affect new entrepreneurs. This website also offers an application on the IPod as well, making finding the information the entrepreneur needs on the go easily accessible.

8. Kauffman foundation

Kauffman is one of the largest foundations today, specializing in growth and advancement of entrepreneurs. They offer resources to youth and minorities who want to become entrepreneurs. They have resources on how to overcome obstacles in this turbulent economy, as well as resources to gain capital from donors. They also have links provided to other resources that are there to help entrepreneurs as well. Kauffman.org believes that science and technology is the foundation for all entrepreneurs and they are constantly adding new articles relating to their research on helping young entrepreneurs discover their scientifically minds.

9. The National Venture Capital Association

The NVCA offers resources for entrepreneurs to fund the capital needed to start up a business. They provide resources to research as well as current statistics. They also offer webcasts that are on topics related to venture capital and how to create more of it. In addition, they also offer videos related to venture capital as well. While this is a great site for gaining capital, that is the only thing that it has to offer, it is not a full service website that offers resources for all aspects of entrepreneurship.

10. PA Food Ventures

PA food ventures are a wonderful resource for any entrepreneur that is interested in the food industry. While it does not cater to all businesses, it offers an extensive range of resources from how to start a food business to the state and federal regulations as well as ingredients, safety and sanitation, equipment needed and links to various resources as well. PA food ventures are part of the Penn State University website.

Starting a Business in London

Starting a new business in any large city is going to have its own set of challenges and excitement compared to a smaller town, and London is no different. With a sprawling metropolitan area and a number of large suburbs all within the M25 circle, London is arguably the best and the most rewarding place to set up a new business. Making sure you have a realistic set of goals will ensure that setting up a new business in the capital will be both successful and profitable.

London mayor Boris Johnson said last year at a Business Link event that small and medium sized businesses will help to pull London out of the recession, while the government has also commented that small businesses and entrepreneurs are to be helped towards setting up their own businesses and achieving their potential. Mr Johnson pointed out that tourism is probably one of the most influential sectors in London and that with the Olympics just around the corner, this can only continue to grow.

These findings were backed up by the Barclays Business Regional Impact Index, which showed that London is the region where small businesses can make the biggest impact on the economy. The survey looked at profitability, growth projection, employment and innovation. London led the way in all of these categories.

So, it appears that on the surface the capital is one of the best places in the country to set up a new business. It has a large population, a diverse culture and a steady stream of people coming and going from its central area. But what might the potential challenges of setting up a business in London be?

One of the most important aspects to bear in mind is the overhead costs associated with working in a large city. Rents will be more expensive and it may be worth considering working from home if at all possible. Taking advantage of virtual office space in the central city area will still allow you to present a corporate image without having to spend money on full time premises.

Having staff is also more expensive than elsewhere. Living costs in London are generally more expensive and travel costs to the capital can be prohibitive, so employees come at a premium. You will usually have to pay a London supplement to your staff members.

Travel costs and logistics in London will also be a costly factor. Simply transporting your goods from one side of the capital to the other, let alone across the country or the World, can be hugely expensive. You need to consider both the congestion charge and the heavy goods vehicles charge. These costs will have to be passed to your customers.

One of the benefits of starting a business in London is that there is a wealth of information available to you from a number of agencies. You can try the London Development Agency, the City of Westminster website or Business Link for good practical advice on starting a business in the capital.

The CityLocal franchise is available in London and offers franchisees a whole borough as an exclusive territory. Positives of the CityLocal franchise for the capital include: a huge target market and the potential for earning significant money in a home based business that has exceptionally low overheads. If you are looking to start a business you must think carefully about CityLocal before investing in any other opportunities.

Starting a Successful Arcade Business

Establishing a profitable arcade business is harder than it used to be now that most people have very good and affordable games consoles. An arcade business can be set up in one of two ways; either online with Internet-based games or on premises with the arcade games set up on their own respective machines. Both of them entail different strategies in terms of cost and setting up.

Choosing to set up an arcade game business online may be the cheapest option, but you will still need to do a lot of initial preparation. Although it may cost a little bit more to begin with, hiring a team of Web developers may be a good idea. They will be responsible for creating and designing your website and making sure your game software is running properly.

The next step is to make sure that your website is properly marketed. Part of this process is called search engine optimisation (SEO) and will ensure that your site ranks higher in search engine results. However, this will require a fair amount of research as you want to double check the integrity of your choice. After some thought, you should pick the option that you feel will be the best for you and your business. For best results, don't be afraid to pay for your advertisements as online arcade games are still very popular and it will not take long for your site to attract customers, especially if you start by offering a few free games.

Alternatively, if you are thinking about opening an actual arcade with new top of the range arcade games, you will need to spend a lot more time planning. Although arcade machines can be bought from online stores such as eBay, you will need to set yourself a reasonably high budget to begin with, because don't forget you also need to acquire premises. If you are a little short on money, then apply for a loan with your local bank with a detailed copy of your business plan, but only choose your premises and machines after detailed research. You want to choose a prime location that is going to guarantee customers as the success of a business venture often depends on its location.

Once you have been accepted for your business loan and you have found suitable premises, you need to come up with a catchy and unique name for your business. Then you need to think about decorating your arcade, as well as marketing and advertising. Get in touch with your local newspaper and radio stations and see if they will be interested in covering your grand opening. Visit a copy shop and design leaflets to hand out; they can often be printed in bulk for reasonable prices.

The final step is to employ some staff to help you manage the games and customers while you take care of the finances. Start off with just one or two people and as your business grows, you can put out advertisements for more prospective employees.

When opening day arrives, really go all out with banners, balloons and maybe some snacks for your younger customers. It may be a good idea to offer the chance for them to play the games for free for the grand opening, so that you attract a lot of potential customers.

Financing Your Franchise Business

Establishing a franchise is becoming one of the most popular ways to start a new business, and it's also among the best methods of setting your business plans in motion. Franchising is possibly one of the most secure and ideal ways for new entrepreneurs to quickly enter the business arena.

When you are looking to finance a franchise, your first stop should be your local bank. It may be a good idea to approach your bank and ask about the options it has available for financing franchises. Seeing as you already have a financial relationship with them, it may be a good idea to see if they are eager to advise you about their lending options. Most high street banks will have specialist franchise units that can give advice on services and products that are adapted specifically for financing franchises.

While high street banks do look favourably on lending to new entrepreneurs, they will still expect you to raise at least 30 to 50 per cent of the costs yourself, along with you presenting a business plan and yourself successfully.

If you get hold of an application form, it is important that you fill in all the sections in as much detail as possible. The more information you provide, the better you will look to the bank. If you are not thorough enough, the bank will be uncertain about how your money will be used.

It is also crucial to include a thorough business plan. This is important when starting any type of business as it will tell the bank, and also yourself when referring to it in the future, what your goals are and how you will accomplish them. It helps you to calculate your budget, which will help you a lot when you approach the bank for money. Although there are many websites and guides on the Internet that can help you construct a strong business plan, a complete one should include an intimate and technical study of the business you plan to go into, projections and cost analyses, calculated estimates of working capital and a suitable marketing plan. If you are unfamiliar with writing a business plan, then seek professional advice or consult business software that you're able to download online.

Also, it is beneficial if you have a good credit rating as there are three main criteria that banks look at when assessing your credit rating: stability, income and track record. They will also examine your income and whether this amount is a suitable living wage, because if you cannot handle your own personal finances then they are unlikely to think you can be trusted to manage a business.

Through assessing your credit rating the banks are able to explore how successful you've been in paying off past debts. If you have a record of not keeping up with payments, repossessions and so on, you should get these sorted before asking for a loan because they could really damage your chances of business success. With the correct support, your entrepreneurial spirit will be nurtured and good progress can be made.

Interested in owning a successful internet business? Have a look at the CityLocal franchises. They help you raise finance to start a residual income business from home.

Find a Methodology and Minimize Investment Madness

There are many reasons to be investing these days, and too much opportunity to not have your money working for you.

However, I believe the majority of people dread having to deal with investment matters, and tend to jump into purchases and then hold their breath hoping for the best. After a long day at work and taking care of the family, it's hard to get excited about reading up on your 401(k) options, Morningstar ratings and fund performances.

If this sounds like you, there are basically 3 choices.

You can have your investments professionally managed, you can continue as you have in the past & keep your fingers crossed, or you can find a methodology that objectifies the investing process (that's buying and selling investments) and helps you maximize your long-term results.

To determine if you need help managing your investments(and this doesn't necessarily mean having to pay for advice) you might want to ask yourself these questions:

=> Do I really have the time and interest to follow the market closely on a daily basis?

=> Have I done well in the past managing my own investments?

=> Do I really want to add another layer of work and responsibility onto an already busy schedule?

If you're like most people, you would answer yes to some and no to others, so how do you decide? If you think you could have or should have done better with your investments, then you need some help. Don't feel bad. Having counseled hundreds of people over the past 15 years I can honestly say that everybody needs some help, whether they are aware of it or not.

Why? This could come as a surprise, but, in fact, your financial life is a lot shorter than your physical life?

Most people who end up investing don't really start working and making money until they are about 25 years old. Considering the average retirement age of 65, this gives you only 40 years to save and invest wisely.

If you make a poor investment decision, such as trying to stay fully invested during a bear market, you could lose big both in terms of diminished dollars and wasted time.

To drive home this important point, let me give you an actual example involving my own portfolio. For ease of illustration I have adjusted the beginning portfolio balance to $10,000.

During the period from 1/25/91 to 10/13/00 my $10,000 investment grew to $37,840, which is a 14.67% compounded annual return.

On 10/13/00, based on a methodology I was following, I liquidated all of my domestic mutual fund positions and moved 100% to the safety of my money market account. Thanks to this move, my portfolio retained 100% of its value on that date.

As we now know with hindsight, most people held on to their investment positions and have so far lost on average 50% to 60% of the value of their portfolios. For this example let us use 50%.

If I had held onto my position, my portfolio would be down to $18,920. Last time I hit that level on the way up was in 1995.

In other words, not only would I have lost 50% of my portfolio I would have lost even more by having used up 20% (8 years) of my total financial life.

How can you avoid mistakes like that in the future? Spend a little of your valuable research time looking for investment methodologies that allow you to side-step bear markets and let you move back in during bull markets. In other words, invest your time looking at methodologies instead of investments themselves. This will lay the foundation for more effective use of your money and time.

If you find a methodology that you like, and it matches your investment philosophy, stick with it for the long term. It should have the aspect of telling you when to get out of, as well as when to get into, an investment.

I suggest you follow these broad guidelines:

• Don't be afraid to take a small loss to avoid bigger disasters.
• Stay away from commissioned sales people (because they have incentives other than your best interests), and if you use an advisor, be sure he or she is fee based.
• Above all, don't get overwhelmed by news, rumors and predictions that are irrelevant to your strategy.

If you take this advice, I guarantee that pretty soon sleepless nights will be a thing of the past and you'll be on your way to more confidently and successfully (that means profitably) managing your investments. 

Financing Sources and Types to Ensure Successful

Money is of extreme importance nowadays. Almost everything that we do involves money. The same is true if one wants to venture into business or buy a home which is one of the basic needs for survival. Financing or supplying of funds in business is a must to make it grow and achieve the desired expected profit (together with the right planning and managing). Common mistakes encountered by new entrepreneurs are wrong financing sources, underestimated amount needed for capital and inflexible financing types. These problems however can be prevented by careful planning and analysis of the various factors involved in starting a business.

In general, business people can choose from the two types of financing, the debt and equity financing. Equity financing is the type commonly used by small or growth stage entrepreneurs. The sources for this type involves the center of influence that trusts the entrepreneur, such as friends, relatives, family members and other people interested in investing their money in the business. However there are also capitalists who are ready to take the risk of financing small businesses. These capitalists may include financial institutions, authorized government agencies or well-to-do individuals in society. There are also venture capitalists that finance new business in the industry to get equity. Businesses that have been in the industry from three to five years are preferred by venture capitalists. They have various methods to manage or deal with the businesses that use their financing or invested money. They can influence the decision making policies of the business in the event its performance does not come up with the expected result.

Another general type of financing is debt financing. This type has varied sources which include Small Business Administration Loans, commercial loans through banks and personal loans from family, relatives and friends. The government recognizes the importance of business in the economy of the country and that is why they offer programs that can encourage the growth of small enterprise by having their own financing agencies tp help a lot of young business people and entrepreneurs. Debt financing through banks is the traditional means to fund a business. The banks act as a short term lender for the business person to have the needed money to buy equipment and machineries necessary for the business to flourish. The SBA or Small Business Administration Loans are used in the case of local banks. The loan that can be acquired can be from $5,000 to $2,000,000.

From these two general types of financing branch the various kinds of financing involved - not just in business but in other fields as well. A few of which are piggyback financing, owner financing and creative financing. Piggyback financing is used by home buyers who want to avoid mortgage insurance which is required when the mortgage is more than 80 percent of the purchase price. Through piggyback financing, the borrower can have two mortgages with costs that may vary. Owner financing happens when the owner or seller of the property is the one financing the buyer so in this case the owner acts as the bank. The buyer in turn can pay the needed amount monthly or whatever may be the agreement instead of going to the bank for financing. Creative financing happens when the house buyer has a third party lending institution which can be a bank or a loan agency. 

Financial Tips for Trying Times

(ARA) - When life gets unpredictable, there's one thing Americans always want to hang onto: their money.

During times of national uncertainty, it's only natural to want to hunker down and hang on to your cash -- or at a minimum, squeeze as much as possible out of every paycheck (that is, if you're still getting one).

Many Americans are feeling less secure about their lives than ever. In fact, 63 percent feel they will have to make changes in their day-to-day lifestyle, according to a survey by Wirthlin Worldwide, a McLean, Va.-based research firm. Fears of the unknown, job loss or having less income are also on people's minds.

"If you hated financial planning to begin with, the thought of managing your money in trying times can be even more intimidating," says Randy Schuldt, vice president with 

 Three out of four Americans who hate financial planning. "Although it may seem impossible to predict what the future will bring, there are some simple steps you can take to give you more control of your money in a changing world."

To give you and your family something to hang onto during uncertain or changing times, 

Put it in perspective. If history is any indication, the economy may not suffer long-term ill effects from recent events. The Dow Jones industrial average -- the oldest U.S. market benchmark -- typically falls for a short time, but it has traditionally rebounded within six months. It happened after Pearl Harbor, the Gulf War, the World Trade Center bombing in 1993 and the Oklahoma City bombing in 1995. Past performance doesn't guarantee future results, but there's a possibility that history may repeat itself. Fearful reactions will only make the short-term last longer.

Reduce your deficit. The nation's economic outlook is nothing you can control, but you do have control over your own situation. If you've got credit card debt, take steps to pay it down. Start with the cards with the highest interest rate and pay more than the minimum on all your cards with balances. Instead of using a credit card for future purchases, get a debit card, which subtracts purchases directly from a bank account.

Protect future income. You owe it to yourself and family to protect your earning power with disability income insurance and/or life insurance. The lack of disability income insurance is the single biggest threat to the financial well-being of the American workforce, according to the Consumer Federation of America. It reports that 80 percent of U.S. workers either have no long-term disability income coverage or their coverage is inadequate.

Resist the urge to borrow from your 401(k). Many people are tempted to borrow from their 401(k) as a first resort, but it should be the last resort. Many people think because it's 'borrowing from themselves' that no harm is done, but actually, they lose the chance to benefit from the tax deferral and compound interest on potential growth of their 401(k). That means your account will be much smaller when you retire. Also, if you quit your job or are fired, you may be required to pay back the entire loan immediately. If you are unable to do so, be prepared to pay income taxes and a 10 percent early withdrawal penalty on the loan.

Balance your budget. Now is a good time to get in the habit of budgeting your money. Track your expenses and spending for a month or so. It could reveal some money habits that need changing. And it can help you shape future habits, such as saving, charitable giving or just paying your bills on time.

Save for emergencies. Many people put off saving for a rainy day. It may not be raining on the economy yet, but the storms are brewing. A good rule of thumb is to have at least three months' salary in the bank where you can access it for emergencies ranging from a leaky roof to layoffs at work.

Have a plan in case of layoff. During these tough times, more and more companies are cutting jobs, and yours could be next. If you haven't done so already, update your resume. Be sure you understand what you'll need to do to maintain health insurance coverage after a layoff. You might want to apply for a home equity line of credit. You don't have to use it, but it's hard to get approved after you've become unemployed.

Write a will. It was a good idea before the world changed, and it's a good idea now. As long as you're thinking about your family's financial future, this is also a good time to formally declare your wishes about who gets what, and how much, after you've passed away. It's also the only way you'll be sure your wishes are carried out. You can modify your will as often as you like, for as long as you live. You may also need a durable power of attorney (POA), which formalizes who will make decisions on your behalf, if you are unable to do so.

Invest in the future. Resist the urge to put future plans on hold. If you want to buy a small business, adopt a child or retire early, put those goals on paper and follow through with a savings plan. It's easier to stay on track if you have something to shoot for. Regardless of the condition of the world, keep improving the condition of your personal finances. An investment in your future is also an investment in America's future.

Financial Success secret

Financial Success-The Secrets Of Financial Success

After speaking with a gentleman this morning, hearing his excuses or so called reasons for his lack of financial success, I realized that the majority of our population is broke only because they lack the one key ingredient or secret. Financial success is as easy as one-two-three. Let me explain.

Many people believe that with a little more education, a little more experience, or even a little more hard work and dedication; they will break the barrier and soar into financial success, whatever that means for them. Could either of these be secret for reaching financial success? Analyze the following experience and decide for yourself.

This summer, Jet Blue, a growing airline, was looking to increase its call centers, and overall ticket sales. So, first things first, finding new operations managers. A group of interns, with college diplomas in hand, quickly answered the call. Eager to receive a college grad’s salary and begin their new career path, they overlooked the fact that the young man training them for the position was also enrolled at the nearby university. Having only completed 5 semesters himself, he held the position and received the salary they had studied and paid 8 semesters or more for. Does education really pay? Or is there something more?

What about experience? Does time on the job matter? Being young and inexperienced myself I am often asked who paid for your Mercedes, your home, your diamonds, etc. Some people actually believe that a rich person likes me, or likes to give me gifts. All I have to say to that is, when they find that rich person, let me know. Financial success is more than who you know. They just can’t seem to believe that a 24 year old, inexperienced female could have bought all that for herself. People tell me all the time, “as soon as I pay my dues,” “after a few more months, then I’ll ask for that raise,” “when I’m at the top then things will be different.” They actually believe that with more experience, more time on the job, they will earn their right to financial success and have what I have. Don’t they see it, I didn’t work my way to the top, I didn’t put in 10,15, or even 20 years to earn it, and they don’t have to either.

Are you ready for the secret? Look at McDonalds and see if you can find it. (Don’t worry I’ll help you out, you don’t even have to be smart to be financially successful.)

McDonalds advertises “billions served”, could that be true? Their food is distasteful, their prices middle of the road, their service fair, locations everywhere. How? Every time you, or better put, someone who actually eats at McDonalds, pulls up to the drive thru they know what to order, and they order what they know. It doesn’t matter if they’re in China, Argentina, or Wyoming, they’ll get the exact same hamburger. Same condiments, same taste, same price, in yen, pesos, or dollars. It doesn’t matter if the hamburger maker is Lee, Juan, or Tim, the hamburger is the same.

Have you figured it out? Take this tip! McDonalds follows the same system each and every time. They have built a machine and now they put the machine to work. Here’s the system. 

Step 1. Build the store equipped with stoves and employees. 

Step 2. Ship hamburgers and food supplies.

Step 3. Assemble hamburgers. 

Step 4. Exchange hamburgers for cash. It’s the same every time. 

Now Subway, Taco Bell, KFC, Arby’s, and Hardey’s have all adopted the same system to generate the same level of financial success. It will work for you just as easily as it has for them.

You see you don’t have to be a college grad, you don’t have to claim years of experience, or even work your way up the ladder. You don’t even have to work hard. Don’t buy into the false beliefs of the average broke American, generating 36k a year!! Find a system that works, stick to it, and get the results. The system works every time, humans error all the time. Once you find the system that works for you, putting money into your pocket; it‘s just a matter of duplicating it time and time again. Financial Success can be yours!

It’s no wonder system stands for Save Yourself Stress Time Energy and Money.

Financial Services Help Manage Money

When it comes to managing money many times it is best left up to the professionals and financial services that are knowledgeable and experienced. Financial services include a whole range of services, so if you need some form of financial services to help you with your money management, banking, assets, and the like you will certainly be able to find the assistance you need through financial services firms. The following financial services are just an overview of the different financial services you can choose from and that are offered.

Financial Services #1 Wealth Management

Frequently individuals who are wealthy need financial services in order to manage their money and stay wealthy. Many wealthy individuals who do not use financial services for wealth management see their money slipping out the window. However, those who use wealth management financial services not only maintain their wealth and enjoy it, but also see it increase.

Financial Services #2 Investment Banking

Investment banking is another offering of financial services that many individuals enjoy. This is because investment banking financial services focus on creating capital through client investments.

Financial Services #3 Asset Management

Financial services offer asset management for individuals who cannot or prefer not to manage their own assets in the form of cash, property, bonds, and stocks. Fortunately, financial services are able to handle asset management competently.

Financial Services #4 Business Banking Services

Business banking financial services are also an option for businesses that need help in managing accounts, income, payments, loans, and any other types of financial services needed. Business banking services are a very important part of the financial services sector.

If you are interested in financial services helping you manage your wealth, assets, make investments for you, or manage your business banking, and then you should contact several financial services providers in order to compare services and fees so you can find the one that is best for you. 

Financial Crises, Global Capital Flows and the International Financial Architecture

The recent upheavals in the world financial markets were quelled by the immediate intervention of both international financial institutions such as the IMF and of domestic ones in the developed countries, such as the Federal Reserve in the USA. The danger seems to have passed, though recent tremors in South Korea, Brazil and Taiwan do not augur well. We may face yet another crisis of the same or a larger magnitude momentarily.

What are the lessons that we can derive from the last crisis to avoid the next?

The first lesson, it would seem, is that short term and long term capital flows are two disparate phenomena with very little in common. The former is speculative and technical in nature and has very little to do with fundamental realities. The latter is investment oriented and committed to the increasing of the welfare and wealth of its new domicile. It is, therefore, wrong to talk about "global capital flows". There are investments (including even long term portfolio investments and venture capital) – and there is speculative, "hot" money. While "hot money" is very useful as a lubricant on the wheels of liquid capital markets in rich countries – it can be destructive in less liquid, immature economies or in economies in transition.

The two phenomena should be accorded a different treatment. While long term capital flows should be completely liberalized, encouraged and welcomed – the short term, "hot money" type should be controlled and even discouraged. The introduction of fiscally-oriented capital controls (as Chile has implemented) is one possibility. The less attractive Malaysian model springs to mind. It is less attractive because it penalizes both the short term and the long term financial players. But it is clear that an important and integral part of the new International Financial Architecture MUST be the control of speculative money in pursuit of ever higher yields. There is nothing inherently wrong with high yields – but the capital markets provide yields connected to economic depression and to price collapses through the mechanism of short selling and through the usage of certain derivatives. This aspect of things must be neutered or at least countered.

The second lesson is the important role that central banks and other financial authorities play in the precipitation of financial crises – or in their prolongation. Financial bubbles and asset price inflation are the result of euphoric and irrational exuberance – said the Chairman of the Federal Reserve Bank of the United States, the legendary Mr. Greenspun and who can dispute this? But the question that was delicately side-stepped was: WHO is responsible for financial bubbles? Expansive monetary policies, well timed signals in the interest rates markets, liquidity injections, currency interventions, international salvage operations – are all co-ordinated by central banks and by other central or international institutions. Official INACTION is as conducive to the inflation of financial bubbles as is official ACTION. By refusing to restructure the banking system, to introduce appropriate bankruptcy procedures, corporate transparency and good corporate governance, by engaging in protectionism and isolationism, by avoiding the implementation of anti competition legislation – many countries have fostered the vacuum within which financial crises breed.

The third lesson is that international financial institutions can be of some help – when not driven by political or geopolitical considerations and when not married to a dogma. Unfortunately, these are the rare cases. Most IFIs – notably the IMF and, to a lesser extent, the World Bank – are both politicized and doctrinaire. It is only lately and following the recent mega-crisis in Asia, that IFIs began to "reinvent" themselves, their doctrines and their recipes. This added conceptual and theoretical flexibility led to better results. It is always better to tailor a solution to the needs of the client. Perhaps this should be the biggest evolutionary step:

That IFIs will cease to regard the countries and governments within their remit as inefficient and corrupt beggars, in constant need of financial infusions. Rather they should regard these countries as CLIENTS, customers in need of service. After all, this, exactly, is the essence of the free market – and it is from IFIs that such countries should learn the ways of the free market.

In broad outline, there are two types of emerging solutions. One type is market oriented – and the other, interventionist. The first type calls for free markets, specially designed financial instruments (see the example of the Brady bonds) and a global "laissez faire" environment to solve the issue of financial crises. The second approach regards the free markets as the SOURCE of the problem, rather than its solution. It calls for domestic and where necessary international intervention and assistance in resolving financial crises.

Both approaches have their merits and both should be applied in varying combinations on a case by case basis.

Indeed, this is the greatest lesson of all:

There are NO magic bullets, final solutions, right ways and only recipes. This is a a trial and error process and in war one should not limit one's arsenal. Let us employ all the weapons at our disposal to achieve the best results for everyone involved. 

Facts of Day Trading

Are you thinking of entering the fast-paced world of day trading? Arm yourselves with the information from this fact sheet on day trading.

What is day trading?

Day trading is an investment tactic that does online daily stock trading with a relatively short investment. Those who do day trading usually buy and sell securities during the same market day and, as a general rule, do not hold stocks overnight. Many day traders make dozens of trades every market day hoping to capture profits that arise from small intraday price fluctuations.

How is day trading different from swing trading?

Day trading relatively holds the stock for only the day. After the stock market closes, a day trader has no stock in his hands. Swing trading holds a stock for at least a few days, waiting out for the best price before dumping it back to the market. Day trading is much more stressful and requires guts and a keen business sense. Once you get good at day trading, you can earn up to $50,000 from your initial investment.

How much capital would you need for day trading?

You need an investment equivalent to buy 1000 stocks. That is roughly around $20,000. Because the chances are small that you will find a marketable stock with a price of under $20, this is enough to get your day trading underway. However, you must remember that this is a 100% risk capital so do not worry too much if you lose this amount very early.

What are the general rules for day trading?

• Always trade with the trend.
• Cut losses short
• Never get emotionally involved in your trades.

What are the most suitable stocks to trade for day trading?

It is advisable to trade high volume stocks. Go with the trend with the popular stocks available. It'll be easier for you to sell those stocks at the end of the day trading.

How does a usual day trading transaction occur?

For example, at 10:00 AM a day trader might buy 1000 shares of stock XYZ just as the price begins to rise on good news, then sell it at 10:04 AM when it's up by 1/2 ($0.50). The day trader makes $500, minus commission. With today's cheap commissions of $29.95 or less per trade, that's a quick $440.10 or better, excluding taxes.

Most people who deal with day trading spend all of their time in front of the computer, watching the slightest change in the stock price. As the prices go up and down, the day trader must be alert as to when to sell his stock or wait for the moment to hold on it. This can be a very stressful lifestyle as a mere second could mean an increase of half the stock price and missing that moment for any person engaging in day trading could mean a loss on his investment.

Day trading is not a get rich scheme. It is serious business where you could lose everything within minutes because of wrong information. Before jumping into day trading, remember to do your homework first. Go to seminars on day trading, use simulations if possible and practice reading market indicators. To be a successful day trader, don't just need luck. Knowledge and experience counts. Welcome to the world of stock markets and investments