Jul
27
2010
A simple formula to help you maximize profit margins
For years I’ve taught a simple, “secret” formula to massively grow profits in any business.
Interestingly, those starting businesses seem to embrace this formula far more easily than owners who have been in business for a long time.
I’m sure there are a number of reasons for this. But the ignorance and stubbornness of other business owners can prove to be very profitable for you–especially as many of those “experienced” business owners continue to focus solely on revenues and expenses, which in turn drive profits.
When you are comfortable with the numbers and can readily work with all the factors in the formula, you’ll start seeing more bottom-line growth than your competitors.
How?
You’ll have more factors to work with than “expert” owners who love cut expenses to boost their profits.
So what is this simple growth and profit-focused formula? The “5 Ways,” and it is a strategy that pinpoints the five key factors that exist in every business–factors that can be multiplied to deliver stellar bottom-line profits.
These are the five simple factors:
- Leads: The total number of people who have contacted or who have been contacted by the business–over the course of a year.
- Conversion rate: The percentage of people who actually make a purchase. For example, if 10 people walk through a store and three people buy something, that store’s conversion rate is three out of 10, or 30 percent, for that day.
- Average dollar sale: The average dollar amount per sale, estimated over the course of a year. The average can range from $5 or $10 (say, for a discount retailer) up to tens of thousands of dollars (for a business such as a car dealership).
- Average number of transactions: The number of purchases the average customer will make over the course of a year. Again, it can be an estimate. This number will probably be larger in a retail setting than in companies that operate in a professional services industry.
- Profit margin: The profit percentage of each and every sale. Simply put, if a business sells something for $100, and profit was $25, the profit margin is 25 percent.
Jul
13
2010
Why hasn’t the BP spill pushed oil prices higher?
A lot of oil is gushing from the blowout, but it wasn’t in the system to begin with, so it’s not like we’re losing supply. But prices could go higher. Goldman Sachs (GS, Fortune 500) and Morgan Stanley (MS, Fortune 500) are both predicting that oil [about $77 a barrel as of late June] will hit $100 next year, and you know that will force equities to move higher too. I think that’s a realistic projection because supply is capped at about 85 million barrels a day, and if we have any sort of global recovery, the only way to control the demand will be through price.
I would also mention the moratorium on drilling — whether or not it holds. Gulf of Mexico production isn’t that significant in the overall picture, but it matters at the margins, and every 100,000 barrels of oil or so affects the market. We had 34 rigs operating in the deep water, producing about 1.4 million out of the Gulf of Mexico’s daily 1.7 million barrels of oil.
Because it’s so complicated to stop and start production, a six-month ban will probably be more like 12 to 18 months. Even after we restart the wells, their capacity to produce will have declined by 25% to 35% over that time. This will also eventually move prices.
Are you worried about the political uncertainty that the Deepwater Horizon disaster has generated?
As far as stocks are concerned, this could mean a buying opportunity. As long as there’s political uncertainty around the energy space, stock prices will come down. But keep in mind that the midterm elections in November could erase that discount over time as political uncertainty resolves.
Would you buy BP stock, given that the price has fallen over 50% since the accident?
We don’t own the stock now, and I’m not sure if I’d be a buyer or a seller. There’s too much uncertainty about what will happen to the company. But it wouldn’t bother me to own the bonds. There’s a lot of value in the debt structure, and it would take a very large loss for bondholders to see their value eroded.
What about other energy stocks?
What you see is a wildcat well that is BP’s problem. So we’re long-term buyers of exploration and production stocks. We own shares of Anadarko Petroleum (APC, Fortune 500), which is struggling because it has a 25% interest in the [Deepwater Horizon] rig. But it also has a lot of natural-gas projects in the U.S. and globally. It’s a large, diversified oil and gas company, so it should weather the current problems just fine. We also own Devon Energy (DVN, Fortune 500) shares. Devon had the recent good fortune of selling its offshore assets to BP (BP), and now it’s focusing on the U.S. onshore market.
Will the spill renew excitement about alternative energy?
It’s important to understand that oil and renewables do different things. Wind and solar are for power generation, so they don’t replace oil. About 70% of all oil produced is used for transportation fuel. Renewables are good projects, but they don’t get us off of foreign oil. That’s why I think natural gas will replace oil. It’s cleaner, it’s cheaper, it’s abundant, and it’s ours. We believe natural gas will become part of the transportation fuel mix and be used for power generation. It won’t happen overnight, but it will happen over time.
Many think natural-gas use will rise, but investors often get creamed because pricing is so volatile. What should potential investors think about before jumping in?
If you ask me where I think prices will be [in the short term], I’ll say, “Check the weather.” It has a huge effect on natural gas. For example, a hurricane off the coast of Africa will shut down production and drive prices up. Very hot or cold weather also increases demand.
Natural-gas prices also affect the viability of alternative-power projects. For example, extremely low prices make it hard to do wind projects because wind power is priced at the margin, and the margin is the price of natural-gas power. If natural gas is at $5 [per 1,000 cubic feet], it’s too cheap. There’s no economic reason to build wind power. You would need gas prices at $6 or above to make wind-power pricing high enough to cover the expense of the project. So natural-gas prices tell us how viable something like a wind project will be.
How high will natural-gas prices go in the next few years?
I think they’ll hit $6 in two years. In five years they’ll be selling around $8.
It sounds as if natural gas is one of the riskiest investments around.
You can’t invest in natural gas on a daily basis. It’s too volatile. But if you think of natural gas as a long-term holding, then you push your profit horizon out. A long-term time horizon would be at least two years.
Two years doesn’t seem like an unreasonably long period.
Well, my horizon used to be five years. But when you get to be as old as I am, you shorten it to two.
Jul
7
2010
A free payday loan is an interest-free loan granted to first time customers as long as they are able to repay the loan amount in full on the payday following the release of the loan. The loaned amount is charged against the borrower’s paycheck. Interest charges apply on the succeeding loans.
How much is the interest charged on the loan?
Interest rate varies, depending on the amount of loan and the agreement or considerations set by payday lenders. On the average, though, for every $100 loan amount borrowed, you will be charged anywhere in the range of $10-$30.
What is the term of payment?
The term of payment is two weeks from the time the loan amount was granted or released, or the next payday after the loan release.
What are the requirements to avail the free payday loan?
There are no requirements other than your paycheck and an accomplished prescribed application form. In order to qualify, though, you must be of legal age, at least 18 years old and above, and you must be employed with steady income.
Where can I apply?
There are two ways to apply for a free payday loan. One is to submit your application online where your application can get approve in a matter of 10-15 minutes. Another way is to visit your nearest local payday lending company.
What are the advantages of applying online?
There are many advantages when you submit your application online. Among these are: (1) You get your applied loan amount faster; (2) No need for queuing, or waiting for a longer time before your transaction is processed; (3) Immediate approval of loan, so you get you cash when it matters the most.
How many times can one avail of the free payday loan?
There is no limit as to the number of times that you can avail the loan. You just have to remember the following points: (1) the loan is free of interest only during your initial loan; after which interest rate apply; (2) you must be able to repay, in full, the amount you have loaned at the payday following its release.
However, if due to unavoidable circumstances, you are not able to repay the full loan amount on the appointed time, then you can arrange with your payday lender for an extension of repayment. Usually, lenders will impose additional higher charge until you have settled the amount in full. You can extend the loan repayment up to a maximum of five times.
Are there any restrictions to the loan purpose?
There are no restrictions as to the purposes by which the loan is availed. As long as you are eligible, you will receive your cash instantly no matter where you are going to use the cash for.
Typically, cash availed from a free payday loan is used for the following purposes: (1) to cover emergency expenses; (2) home small repairs and maintenance; (3) car repairs; (4) medical expenses; (5) school expenses; (6) budgetary constraints; (7) repay other loans incurred; (7) cover home bills such as phone, electricity, water, etc. ; and (8) other urgent miscellaneous unforeseen expenses.
Jun
28
2010
Debt Consolidation is one of the most effective tools for debt management. By consolidating several debts into one, you can lower your monthly payments and actually see your debts dissolving every month. There is no more trying to keep track of whom you can pay this month or harassing calls from the creditors you could not pay last month. You deal with one bill, one check, one company, and you have the pride of knowing you are on your way to being debt free for good. To find a debt consolidation specialist who can aid you in developing a personal debt solution, research the sites we have listed on this page. They can help alleviate the burden of your debt and help you begin building a healthy financial future. Debt does not have to be a permanent part of your life. You should not have to worry about losing your house, your car, or your important personal belongings.
Best Free Online Debt Consolidation:
You can find many websites that will help get the debt consolidation process started for you. We found CreditSolutions.com to offer the widest range of debt services and solutions. No bankrupty filings, reduce payments by 40-60%, and free consultation to determine what is best for you. They have an 800 # that is open 24/7. Another very helpful site was AmericanFinancialService.org, they will negotiate your settlement for you (sometimes reducing it by 40-60%). They will help set you up with a low monthly payment that is affordable (this is determined when you have your one on one client counseling session). They contact your creditors and act as your representative. It can be overwhelming to deal with bad credit or large debt and these types of services can help organize things and negotiate a deal you can live with.
Bad Credit Problems:
All debt consolidation companies are familiar with people who have bad credit or have run up credit cards to the point of bankruptcy and that is where their expertise come into play. They know how to negotiate with your creditors and get your bad credit or overdue bills brought back into reasonable levels. The counseling they offer is a huge benefit, since the problem of spending too much doesn’t go away just because they consolidated your debt to manageable levels. They help people with bad credit manage their money better going forward.
Credit Card Debt Consolidation:
The American way is to pay for things with plastic (credit cards that is). The problem we all come across with credit cards is that paying with plastic is so far from actually opening our wallets or purses and taking out real money. Most of us don’t have real money to buy things every month so we use credit cards. Personal credit card debt is at its highest level ever and there is no sign of it slowing down. We now charge car payments, home payments, college tuition, and medical bills with our credit cards leaving us in debt. The convenience has left the younger generation unable to balance budgets and in more debt than they can handle. More and more students leave college in debt and rely on debt consolidation services to restructure their spending habits as they enter the workforce. Credit card counseling and education is the only way to fight this issue. Credit Card debt consolidation is a short term answer to a much broader problem
Best Free Online Debt Consolidation:
You can find many websites that will help get the debt consolidation process started for you. We found CreditSolutions.com to offer the widest range of debt services and solutions. No bankrupty filings, reduce payments by 40-60%, and free consultation to determine what is best for you. They have an 800 # that is open 24/7. Another very helpful site was AmericanFinancialService.org, they will negotiate your settlement for you (sometimes reducing it by 40-60%). They will help set you up with a low monthly payment that is affordable (this is determined when you have your one on one client counseling session). They contact your creditors and act as your representative. It can be overwhelming to deal with bad credit or large debt and these types of services can help organize things and negotiate a deal you can live with.
Bad Credit Problems:
All debt consolidation companies are familiar with people who have bad credit or have run up credit cards to the point of bankruptcy and that is where their expertise come into play. They know how to negotiate with your creditors and get your bad credit or overdue bills brought back into reasonable levels. The counseling they offer is a huge benefit, since the problem of spending too much doesn’t go away just because they consolidated your debt to manageable levels. They help people with bad credit manage their money better going forward.
Credit Card Debt Consolidation:
The American way is to pay for things with plastic (credit cards that is). The problem we all come across with credit cards is that paying with plastic is so far from actually opening our wallets or purses and taking out real money. Most of us don’t have real money to buy things every month so we use credit cards. Personal credit card debt is at its highest level ever and there is no sign of it slowing down. We now charge car payments, home payments, college tuition, and medical bills with our credit cards leaving us in debt. The convenience has left the younger generation unable to balance budgets and in more debt than they can handle. More and more students leave college in debt and rely on debt consolidation services to restructure their spending habits as they enter the workforce. Credit card counseling and education is the only way to fight this issue. Credit Card debt consolidation is a short term answer to a much broader problem
Jun
22
2010
Eliminating credit card debt might be a little difficult, but surely isn’t impossible. To know more, read on. A little effort on your part today is sure go a long way towards a healthy financial future!
With plastic money being easily available to people, credit card debt issues have become a very common situation faced by many. But the good news is; you can put an end to it sooner than you previously thought, provided you work towards it. Most of us get a second chance to rectify our mistakes and so do you. Stop brooding over what has already happened, work towards rectifying your previous mistakes today and welcome a brighter debt free future with open arms.
In order to eliminate your credit card debt, you need to follow a few Dos and Don’ts, and you will be surprised to see how these can improve your financial state significantly.
Dos:
Analyze your financial state realistically and figure out a plan how you will deal with your debts.
Make a realistic personal budget and strictly follow it.
Start saving your hard earned money. Saving will not only give you the confidence to fight your situation with a positive spirit but also help you improve your financial state.
Once you have decent savings in your bank account, it’s time to attack your debts. Pick the one with highest rate of interest first and start paying them off one by one.
Don’ts:
In case you are in the habit of making minimum payments, then it’s high time you stopped it. Minimum payments do not help you much in paying off your debts; instead it may take you 30 years to get debt free that too by paying three times the amount you had initially borrowed.
Do not neglect your loans. It is a very dangerous thing to do. Neglecting you loans may leave you in a bigger mess. This will not only contribute towards increased debt amount but also towards a bad credit report.
Keep a proper track of your spending. The moment you start using your credit cards carelessly, you put yourself in credit debt.
I strictly recommend my reader to follow these simple dos and don’ts and believe you me it’ll be a big leap towards a debt free future. But in case you are in a bad debt trap then just following these dos and don’ts might not be enough. In that case, I suggest going for debt settlement plans. The two popular settlement plans are:
Debt negotiation: it is a process of reducing your debt amount to a figure that you can afford to pay, by talking it out with your creditors.
Debt Consolidation: this is another kind of debt settlement, where you consolidate multiple debts into one single loan with a minimized monthly payment.
In any case, I think taking professional help is the best thing to do as a professional can help to solve the best plan with your lender to help you improve your financial situation.
So now they have gone through this story, you have a good idea of how to eliminate debt on credit cards. So go ahead and take appropriate action and move towards a future free from debt. Good luck!
Jun
21
2010
NEW YORK (CNNMoney.com) — China took steps Saturday to let its currency trade more freely, but investors and U.S. policy makers should not expect a large increase in its value.
Since 2008, China has pegged its currency, the yuan, to the dollar, keeping its value artificially low and making it tougher for U.S. companies to compete. Some economists think the yuan is undervalued by 20% or more.
15diggEmail Print CommentThe People’s Bank of China said that in response to the global economy’s continuing recovery, it will enhance its exchange rate’s “flexibility,” a statement observers interpreted as meaning that China will let the yuan gradually appreciate against the U.S. dollar. But don’t expect big hikes: “The basis for large-scale appreciation does not exist,” said the bank, which plans to keep its exchange rate “basically stable.”
The move comes one week before President Obama and other world leaders will gather will gather in Toronto for the G20 economic summit, at which China’s currency policy will be in the spotlight. Representatives of several industrialized nations, including India, Brazil, the United States and European countries have previously asked China to allow its currency to float.
“We welcome China’s decision to increase the flexibility of its exchange rate,” Treasury Secretary Tim Geithner said Saturday. “Vigorous implementation would make a positive contribution to strong and balanced global growth.”
Obama praised the move as a “constructive step that can help safeguard the recovery and contribute to a more balanced global economy.”
While a stronger yuan — and a weaker dollar — is widely considered to be a good thing for U.S. manufacturers, it won’t come without some pain for Americans.
China has been keeping the yuan cheap by buying massive amounts of U.S. dollars and Treasurys. If the yuan floated freely, China wouldn’t need to buy as much. And that could mean higher interest rates on Treasurys, and thus higher borrowing costs for many U.S. homeowners and businesses.
It also could lead to a slide in the value of the dollar, which in turn could raise the price of imports, such as oil.
Jun
3
2010
Finding the right person to entrust with your hard-earned cash can be stressful. And the economic turmoil of the past few years has only dampened consumers’ trust of financial experts further.
The best way to minimize those jitters: do a lot of research before you choose.
When searching for a financial advisor, one of the first things to consider is how they make their money: by selling investment products or by giving financial advice (i.e. charging a flat fee)? If what you are looking for is orientation on how to handle your money, stay away from advisors who work on commission, as they may focus on selling you the investments that line their pockets — not necessarily yours.
To begin your search, look into self-regulatory organizations and government agencies. The Certified Financial Planners Board of Standards is a nationally recognized organization that grants the CFP designation to advisors who have undergone rigorous learning and testing in various financial planning fields, including insurance and risk management, employee benefits, investment planning, income tax- planning and retirement and estate planning. You also search for a CFP and any information on complaints or disciplinary actions within their website.
Check out the Better Business Bureau, too: here you can find information about an advisor’s history, specifically whether any complaints have been filed against them.
Another place to search is the National Association of Insurance Commissioners (NAIC), an organization of insurance regulators. Here you can check for qualified advisors who sell insurance products.
Investment advisors, meanwhile, must be registered with the Securities and Exchange Commission (SEC) and other state regulators. The SEC regulates investment advisors and all securities dealers. In addition, the Financial Industry Regulatory Authority (FINRA), the largest independent regulator for securities firms in the United States, has a tool called Broker Check that enables you to check the background of your investment professional.
Fees
Financial advisors work with different fee structures depending on the type of service they provide. For example, a financial planner could earns commissions from selling investment or insurance products.
A fee-based financial planner, on the other hand, charges an upfront fee for providing financial advice, but also charges a commission on security trades or insurance purchases.
A fee-offset financial planner charges an annual or hourly fee, but if the client purchases a financial product from the advisor, the annual or hourly fee is reduced.
A fee-only planner earns no commission; they charge a specific fee, which could either be an hourly or a percentage of the client’s assets under management (typically 1%). Since they do not work on commission, these types of financial advisors are not incentivised to recommend financial products only because of their high commissions.
Important as they are, fees should not be the only consideration in your search for a financial advisor. Here’s what else you should look for:
Personality
Will you get along with this person in a business setting? If the advisor seems aloof and not in tune with your needs, you might want to reconsider. You need to make sure the person you select will listen to you and understand your needs.
Availability
Are they available to answer your questions? Does this person have hundreds of clients? Do they seem overwhelmed? How much time will they be able to dedicate to reviewing your portfolio and answering your questions or concerns? How many times a year will they meet with you to go over changes or modifications in your portfolio?
Who will be handling your portfolio?
Will an associate be evaluating your plan or will the person you are interviewing be doing this job? It’s better to talk directly to the person who will be handling your account.
Credentials and Experience
How much work and client interaction experience do they have? Ask what type of formal training and education they have and how many years of experience they’ve accrued. Do they have investment or life insurance broker licenses? Are you allowed to see examples or representations of financial plans? This way you have a better idea of how detailed the plan is and how effective it can be.
When looking for a planner, you can also look at some of these professional organizations:
The Chartered Financial Consultant (ChFC) http://www.theamericancollege.edu/
(PFS) Personal Financial Specialist http://www.aicpa.org,
Accredited Financial Counselor (AFC) http://www.afcpe.org
May
4
2010
By this time, you must already be aware that there are many companies which offer affordable health insurance and claim that they are giving the cheapest price on your insurance. Even if many of these plans offered by such companies are cost effective, it is still important to research this before you start buying affordable health insurance.
Naturally, upon hearing the price of the low priced policies, you would immediately want to get a policy before even asking questions regarding the coverage which is being provided. To be honest, this is what some insurance companies will hope their customers do.
Once you find insurance plans which are of this quality, you will need to guarantee that it will properly cover you. By doing research, you just might discover that such plans will only cover a bare minimum to whatever is needed. For this reason, you might get under covered and if you are after some benefits, like long term treatment you will not get it.
It is important that you should know your minimum requirements which you need so that you can save your money and your health. There is a possibility that you have found an inexpensive coverage. However, if accidents occur you have to ask yourself some questions when buying affordable health insurance.
#1 Will it cover you for what you need?
#2 If you need to put in a claim will they be there to help you?
Always keep in mind that just because they are charging you less does not necessarily mean they will supply you a similar health coverage level to what other companies do. Once something happens to you which will need you to use the insurance, you do not want to find out too late that the things you need are not covered.
Before you look for affordable insurance policy, you must check these:
#1 Is their deductible amount acceptable and if you can afford to pay it.
#2 Is the health plan really affordable and will it cover the things you need.
#3 Will you be required to make use of the specific doctors and the hospitals.
Once you follow the simple tips mentioned, you will be getting a cheaper health insurance without having to put yourself at a risk of either being under covered or out of money. Click here if you are looking at buying affordable health insurance now.
Apr
27
2010
Credit card debt fighters are ever on the rise and its cause can be attributed to the common problem of debt that the whole nation is dealing with. These people are referred to as fighters on account of the fact that they are trying every rule in the book to come out of this financial mess unscathed. Though it might come across as an uphill task but fact remains that you can actually realize this seemingly impossible proposition provided you take the right steps. Do not forget that the credit card companies have been given monetary grants by the government. They have also been endowed with significant tax breaks. That means when you approach your credit card company, it cannot make the excuse of being bankrupt and therefore not being in a position to agree to the proposed deal.
It is important to be transparent about your real financial status when you contact your creditors for a settlement deal. They need to be assured that you are in no way capable of repaying those vulgar credit bills that have been lying unattended for so long. However, your job does not end here. It is quite natural that the creditors will not be very eager to give you a satisfactory waiver. They will try their level best to extract as much amount as they can from the total balance. But, you have to make them believe that there is no choice for you and might have to take resort to bankruptcy if everything fails. Now, the companies are very much aware that if any of their debtors declare bankruptcy, all hopes of recovery for that particular individual are gone. The threat of bankruptcy can work well for you.
Getting out of dues is important. But, the amount that you eventually pay as a settlement balance is also crucial. If it is a hefty one, it does not make much sense. If you strive to do all this by yourself, there are high chances of you faltering in the way. However, a competent negotiation program can be of great help in this regard and smoothly conduct the whole process of settlement without any hiccups.
Debt settlement companies are widely available in just about every state however some are just flat out more experienced than others in debt negotiation. That’s why it’s so important for consumers to use debt relief networks. These networks qualify and only accept the best performing debt settlement companies
Read more: http://www.articlesbase.com/finance-articles/credit-card-debt-fighters-how-to-negotiate-your-debt-balance-with-the-credit-card-company-2691107.html#ixzz0rSy6Pr5f
Under Creative Commons License: Attribution
Apr
22
2010
In last few years we have observed that market values and strategies vary very fastly and continuously and due to these changes a lot of out life aspects get changing respectively.
Car Financing is one the most attributed field which is a desire of every common person who has an average earning. Today a car is no more away but a simple form and monthly installments.
The big problem faced by people was that no was ready to pay lump sum for their cars, but now car financing schemes solved this issue, you can get your luxury car through simple installments, and also you can manage your monthly according to your scheme.
There are a lot of private companies working in this regard, more specifically banks are highly involved, and even some banks have special discount offers for their own account holders.
There are a lot of Pakistani Banks providing this facility like United Bank, Muslim Commercial Bank, Standard Chartered Bank, Faisal Bank and Habib Bank.