Desirability

Thieves look for something they can resell. The cost and popularity of sport bikes increases the risk that they will be stolen and either stripped for parts or sold intact. This increases the likelihood that insurers will have to pay a claim, and they respond with higher premiums. Owners can do little about the bike’s popularity, but they can decrease its vulnerability. The most useful tactic in preventing sport bike theft and lowering insurance premiums is to lock up the bike in a garage at night and whenever it is not being used. Riders without garages might even consider renting a corner of a neighbor’s to store their bike. Other anti-theft devices may also help get discounts.

Power

Sport bikes have powerful engines, high-performance brakes and adjustable engines designed to let them go very fast and remain maneuverable when they do. This is the reason many bikers choose this class, but it is also the reason their insurance premiums are higher. The faster a motorcycle is moving when it hits another object, the more damage it will do and the higher the insurance payout. Achieving lower premiums in this class is a matter of bike choice: smaller engines equal lower premiums.

Demographics

The portion of the riding population to which sport bikes appeal is also a risk factor from an insurance point of view. Powerful bikes are purchased by people who like to go fast, and that speed is a risk factor. This is an area where driver behavior may have a substantial effect on premiums. Riders with at least twelve months’ road time without having made an insurance claim should speak to their insurers about the possibility of reduced premiums.

Allocation of risk

In the UK, motorcycle insurance comes in two primary varieties. Third party insurance covers damage done by the bike to the property of others, while comprehensive insurance also covers damage to the insured bike. Bike owners who select the less expensive third-party option save substantial money on insurance, but in doing so they themselves assume the risk of having to pay for repairs to or replacement of a bike. Similarly, bikers who elect a larger excess will save money on the up front cost of insurance, but in the event of an accident will pay a larger amount out of pocket.

By assessing the level of risk that their sport bikes represents to an insurer and taking steps to lower that risk, drivers can substantially lower the cost of their insurance. One tactic, though, should never be tried. It is an offense to own an uninsured vehicle unless a Statutory Off Road Notification has been registered, so going without insurance entirely is not an option.

Photo

The post Insuring a Sport Bike appeared first on ThisThatAndTheMBA.com | Common Sense Approach to Finance.

Ways to make good customer service profitable

Invest in the right people: Staff are a business’s most expensive and valued commodity, and they are your brand, your service, and your first impression.  Do they believe in the business? Are they passionate about the goals and the vision?  If you can build your brand from the inside out and inspire loyalty from your team then high levels of customer service will follow as everyone will be focused on the same outcome.

Ensure you invest in strong training to ensure the right message is conveyed through every touch point with the customer.

Ask for feedback: Many dissatisfied customers might not convey their unhappiness; they may simply and quietly walk away, taking their business elsewhere and not telling you why.  Sending a short survey on a monthly basis asking them to rate their experience with you on a sliding scale is an easy way to find out what you do really really well and where you have fallen off the path of good customer service.  Act on the information you receive, ensure a senior member or business owner personally deals with any unsatisfied customers and offers a solution to the problem.

To acquire this information you can use a site such as Survey Monkey, which is easy and painless to use and translates the data is an easy to comprehend way, allowing you to act quickly upon receipt.

Invest in a good IVR

A professional Interactive Voice Response system can ease your customer’s journey, simplifying and therefore creating a more pleasurable experience with your business.  An IVR can offer customers chance to rate their experience instantly, so as a business you get real time feedback on your service, letting you recognize where you have got it right and act immediately if you have not hit the mark straight away.

Reward those who buy from you

Good customer service also means rewarding those customers who are loyal to you, rather than just incentivizing new clients to become customers.  All too often fantastic new deals are offered to prospective target clients and the regular customer is left out in the cold.  Acquiring a new customer can cost six times more than increasing spends in an existing account so ensure you are rewarding those who already spend within your business.  Thank them for their continued loyalty and look to network within their business to increase the visibility of your brand.  Give them great service and make them want to buy more!

About the author: Jane Blackmore is a freelance writer and trainer, with over twelve years in the recruitment industry managing a team, she is passionate about delivering good customer service and increasing client commitment levels.

Photo

The post Why good customer service saves money in the long term appeared first on ThisThatAndTheMBA.com | Common Sense Approach to Finance.

1. Learning to day trade. One of the best ways to get started in day trading is to find a resource that already actively trades. Learning the tricks of the trade are most likely to occur on the job and not in a book.

2. Know the definition. Day trading is as literal as it sounds. At the end of the day, you hold no position in any investment.

3. Understand the stock markets. If you have very little knowledge in the stock market or investing overall, that is the first place to start. Day trading right off the bat would be considered equivalent to racing on a track without a license.

4. Have adequate risk capital. Only invest what you can afford to lose. This is a very valuable piece of advice in many aspects of investing but is especially true when it comes to day trading.

5. Have the right equipment. Once you are well versed in the world of day trading, you need to make sure you have the right equipment. Day trading is by no means cheap. Not only is a high speed Internet connection necessary but a variety of software and analysis tools are needed in order to be successful.

6. Create a trading plan and don’t waver from it. In any successful business venture, a thoroughly thought out plan is crucial. If you’ve done your due diligence and have successfully formulated a plan, do not waver from it, even if it doesn’t immediately pay off.

7. Keep track of the market. In order to be successful in day trading, you have to be on top of the market and any changes that come with it. Much of the knowledge that comes with the market is from experience and time and cannot be simply taught. This is why a solid foundation in the stock market and investing is crucial before starting to day trade.

8. Manage your Mood, before your Money. Unlike most jobs, you have no choice but to work even when you are sick or upset. In the world of day trading, not only do you make your own schedule, but it is advised to limit trading except for when you are in optimum condition. Day trading requires extreme focus and the lack of it can cost you thousands.

9. Keep detailed records. In any successful business, the need for accurate records is crucial. In day trading, this is no different. You need to know your performance both in the short and long term. This is how you are able to make decisions and improvements in the future.1

As is evident, day trading is no simple task. As is the case with most things, if it were an easy way to make money, everyone would be doing it. The fact of the matter is that it requires extensive resources as well as a deep understanding of the market in order to be successful.

The post Online Day Trading 101 appeared first on ThisThatAndTheMBA.com | Common Sense Approach to Finance.

CSS partners is a firm dedicated to offer such advice to both investors and companies. Their main focus is to help investors who want to take part in the Enterprise investment scheme (EIS) which is basically a government initiative to encourage investment in smaller unquoted companies, do so successfully. The EIS scheme as it is popularly known is helping small and medium investors in the UK have a personalized medium to grow their investment portfolio in mostly unquoted companies. The CSS partners is based in the UK and is an appointed representative of Charles Street Securities Europe LLP, authorized by the Financial Services Authority to carry its mandate in the Enterprise Investment scheme.

Investment in the private sector is risky and it requires no need for liquidity by investors with a chance of total loss on their investment. The EIS promotes investment in this sector in a number of ways which include offering various types of tax breaks which we will look at in detail. However not all companies are eligible to the benefits of the EIS scheme, with smaller companies with gross assets of no more than 15 million pounds and  with not more than 250 employees being the only ones eligible. In addition, tax benefits in this scheme are only available when new shares are bought by a company.

There are five types of tax relief under the EIS scheme with the first being the Capital gains Tax freedom. In this EIS tax relief, no tax on capital gains has to be paid by the company for the initial three years after registration. Loss relief is also given under EIS, ensuring that if EIS shares are sold at a loss, the loss can be offset against the capital gains tax, or against the investor’s capital income for that year or the previous year. Inherent tax exemption is also promoting investment under EIS where companies are exempt from paying inherent tax after holding the investment for two years.

Capital gains tax deferral relief ensures that gains on a different asset can be deferred indefinitely provided investment in EIS shares happens between 12-36 months after disposal of the original assets. Finally, investment relief tax allows EIS qualified investments for no less than three years to have income tax reduced by up to 30%.

Photo

The post A Guide To Investment In Private Companies appeared first on ThisThatAndTheMBA.com | Common Sense Approach to Finance.

Receive Funding From Angel Investors

In the business world, networking is everything. Finding and maintaining relationships is key in any business venture, and raising funding is no different. Angel investors are those who have already reached great levels of success in their businesses and are seeking ways to give back to their communities.  These investors are so ideal because they are not loaning you money with an interest rate attached. However, angel investors receive returns in other forms such as stock options.

Credit Cards

Credit cards tend to get a bad wrap, but when used wisely they can be a great resource for funding a small business. A zero percent transfer is a great way to transfer the balance on a card without being pegged with an interest rate. This allows for a good amount of time to pay back a balance.

Crowdfunding

Nowadays the Internet is an invaluable resource for just about anything. This does not stop with funding money for your small business. There are multiple websites solely devoted to doing so such as Kickstarter.com. On this website you can promote and market your business and reach a huge market of people looking to invest in the newest ideas. Investors can receive incentives for investing or earn interest in their investments.

Look for a bank loan

Receiving a traditional loan is not always a bad idea. Both large and local banks frequently offer special loans for small business. Especially if you have a good credit score and your financials are in order, shopping around for a good traditional loan may be in your best interest.

Enlist the help of family and friends

Do not rule out those who are closest to you. Sometimes friends and families can be your biggest fans, which may be just what you need to get your small business off the ground. Although your relationship is personal, it is important to still “make the sell”. Friends and families still want to know that their money is going to a valuable endeavor.

Micro loans

If it has proved difficult to receive a business loan in traditional route, there is still a resource available to consider. The Small Business Administration offers micro loans to individuals who failed to receive a bank loan. A borrower must meet multiple requirements and the interest rate can be rather high but it is still  a great option if funding can not be found elsewhere.

Resources in today’s world are extremely fruitful and choosing not to use them is ignoring tools that can make you successful in many aspects of life. The Internet in itself has opened a world of possibilities that would allow for anyone to start a business if they wanted to. If none of the points outlined appeal to you, a little research and creativity will reveal new opportunities for financing whatever goals you may have.

The post Creative Ways to Fund Your Small Business Idea appeared first on ThisThatAndTheMBA.com | Common Sense Approach to Finance.

Don’t forget to do your homework before choosing an insurance plan:

• First of all, educate yourself on your neighborhood conditions. Find out more about annual floods, wildfires, earthquakes and any other natural disasters;
• Secondly, you need to define what kind of house you have (in terms of insurance categories)
• Thirdly, you need to estimate your valuables, antique furniture and expensive electronics
• Don’t forget to indicate any recent renovation works before you update your insurance plan.

Make a list of information that should be included in your insurance plan. For example, if your area suffers from regular hurricanes and landslides, make sure you include it in your insurance plan. This way you will get the right insurance plan for your house.

Evaluate your needs with the following aspects:

Neighborhood Conditions

Both weather conditions and crime rates will affect your insurance plan. Obviously if you live in the area prone to natural disasters or a neighborhood with high crime level, you would have no choice but to pay more on your insurance. Therefore, you need to consider these aspects before you decide to buy a house.

Insurance companies will always calculate their risks in accordance with local conditions.

Home Type

Big spacious homes are more expensive and thus require a better insurance plan. Take into consideration your home’s value and how it will change in the next couple of years, as it would be more expensive to repair your home after a disastrous flood in the future.

Estimate your Valuables

Keep an inventory of your valuables. Don’t forget to include all the antique items in your insurance plan. Even though the value of electronic equipment would decrease in a couple of years, it would still cost you money to replace these items in case of burglary. Don’t undervalue your possessions!

If you renovated your home, or added some additional features to it, don’t forget to include these items into your insurance plan: the value of your property will increase accordingly. Keep in mind that insurance policies keep changing every couple of months, try updating your insurance plan on a yearly basis. It would prevent you from overspending and underestimating your property.

Only you will know what kind of insurance would work for you. You lived in your house for a while and know its flaws and weak spots. Don’t take a risk; find the right insurance plan to secure your property! Websites like homeinsurance.com will give you a chance to compare different insurance plans. Use this information to find the best homeowner’s insurance policy that would protect you from the common natural disasters and burglary – it might take some time, but it’s worth it!

This is a guest post by Lisa Peteres, an occasional guest-blogger and a full-time personal finance expert. If you have any questions, feel free to drop her a line in the comments below!

The post Find The Home Insurance That Suits You appeared first on ThisThatAndTheMBA.com | Common Sense Approach to Finance.

Hm. Good question. It got me really thinking about why I want to try and make a little money outside of my regular job. Unlike most of the PF community, I don’t have a lot of debt and am not trying to pay off my mortgage ASAP. But I still feel the drive to grow my blog and try to make a little side income.

To save up for a “New (to Me) Car”

If you follow my blog, you may have heard me talk about this several times already. But I’d really like to have a good chunk of money saved up before I try and replace my trusty Corolla. And since my new job came with a cut in pay, it’s a little harder for me to save up for things than it was before.

To pay off my car ASAP once I do buy it.

Once I do finally buy my new car, I want to pay it off pronto! I definitely don’t want to have two car payments and a mortgage all at the same time. It’s not that we can’t handle it, I just don’t want that much of our income going towards loan payments for too long.

Kids.

I don’t have any yet, but we’ll have more unexpected expenses than ever once we throw kids into the mix! I want to be able to handle whatever life throws at us! Especially financially. Having children can be stressful enough without having to worry about where the money for the omg-safest-carseat-ever is going to come from.

Travel!

Now that I have a job where time off really means time off and there’s no time of year that’s “off limits,” I want to go see my friends! I see my family mostly on holidays and they come for visits as well, but I haven’t seen some of my friends in years. It makes me so sad and I just wish I had enough income to really build a travel fund to go visit my girlfriends!

A little extra spending money.

Let’s be honest, who doesn’t want a little extra spending money outside of their regular budget? Now don’t slap my wrists with the PF ruler. I’m not talking major lifestyle inflation here, I’m just saying I like to splurge every once in a while. And it would be nice to have that money already set aside when the mood strikes.

Do you have any extra income outside of your regular job? Why did you decide to start? What do you use your extra income for?

The post What’s the Deal with Extra Income? appeared first on ThisThatAndTheMBA.com | Common Sense Approach to Finance.