All Business

US dollar set to be eclipsed, World Bank president predicts

noreply@blogger.com (أنـــا) — Sat, 10 Oct 2009 16:19:00 -0700

The United States must brace itself for the dollar to be usurped as the world's reserve currency as American dominance wanes in the wake of the financial crisis, the World Bank president, Robert Zoellick, warned yesterday.

Speaking ahead of the World Bank/IMF annual meetings in Istanbul, he said it was time for a "responsible globalisation", in which decision-making was shared between the old powers and developing countries such as China and India.

Ever since the post-second world war Bretton Woods agreement, which cemented the dollar's ascendancy over sterling, Americans have been able to rely on borrowing cheaply from the rest of the world as governments banked on the dollar as a safe bet. But Zoellick said the greenback's status could be under threat from the growing strength of the Chinese yuan and the euro.

"The United States would be mistaken to take for granted the dollar's place as the world's predominant reserve currency. Looking forward, there will increasingly be other options to the dollar," Zoellick told an audience at Johns Hopkins University in Washington. From now on, he said, confidence in the US currency – and its economy – would have to be earned. "The future for the United States will depend on whether and how it will address large deficits, recover without inflation that could undermine its credit and currency, and overhaul its financial system."

Zoellick's comments came as Beijing launched the first yuan-denominated bond available to outside investors, as it gradually makes its currency more exchangeable on international markets.

"I expect China will inevitably be drawn outward," he said. "Over 10 to 20 years, the renminbi [yuan] will evolve into a force in financial markets."

Several countries, including China and Russia, have repeatedly raised what they see as the problem of excessive dollar hegemony.

Consumers Keep Paying Off Credit Cards, Building Up Savings

noreply@blogger.com (أنـــا) — Fri, 9 Oct 2009 09:19:00 -0700

Consumers continued to retrench in August, with borrowers reducing their credit card debt for the 11th consecutive month, according to figures released by the Federal Reserve on Wednesday.

Revolving credit debt, mostly through credit cards with balances that are not paid off immediately, dropped by an annual rate of 13.1 percent in August to $899.4 billion, the Federal Reserve reported.

Non-revolving credit debt, such as auto loans and student loans, dropped slightly by an annual rate of 1.6 percent to about $1.56 trillion.

Consumer advocates and industry experts attribute the drop in credit card debt to uncertainly over jobs and rising interest rates. Many card companies have increased interest rates in anticipation of a new law that takes effect in February that will limit their ability to raise rates and fees.

"The recession has led to changes in spending and saving habits for consumers," said Travis Plunkett, legislative director for the Consumer Federation of America. "In other words, consumers are starting to get their financial houses in order, and that means reducing their use of credit."

Indeed, the personal savings rate climbed to 4.2 percent in July, according to government data, up from the near-zero levels of just a few years ago.

"Consumers are making rational choices in a down economy -- they're saving more and spending less," said Kenneth J. Clayton, senior vice president and general counsel for card policy at the American Bankers Association. However, he said, "credit cards remain a viable option, but just merely one of many available to consumers."

Learning Forex is Simple

noreply@blogger.com (أنـــا) — Wed, 7 Oct 2009 20:09:00 -0700

ADR Report-Foreign shares flat as China offsets telecoms

noreply@blogger.com (أنـــا) — Wed, 7 Oct 2009 18:53:00 -0700

NEW YORK, Oct 7 (Reuters) - Shares of overseas firms traded in the United States were flat on Wednesday as declines in telecoms and Brazilian banks were offset by gains in Chinese companies.

Among the volume leaders in the session, Taiwan Semiconductor (TSM.N) fell 1.9 percent to $10.17, Paris-based Alcatel-Lucent (ALU.N) gained 3.6 percent to $4.60 and Brazilian miner Vale (VALE.N) rose 2.3 percent to $24.41.

The Bank of New York Mellon index of leading American Depositary Receipts (ADRs) .BKADR fell 0.02 percent while the U.S. benchmark S&P 500 index .SPX edged up 0.27 percent.

On a regional breakdown, Latin American ADRs were the worst performers, hurt by declines in Brazilian banks in the wake of an $8 billion initial public offering by Santander Brasil (SANB11.SA), the Brazilian unit of Banco Santander (SAN.MC).

Santander Brasil's shares sank due to the size and prize of the offer, traders said. For details see [ID:nN07475718]

ADRs of Santander Brasil (BSBR.N) fell 2.9 percent to $13.01. Top Brazilian banks Itau Unibanco (ITUB.N) and Banco Bradesco (BBD.N) fell 2.5 percent and 3.7 percent respectively.

The BoNY Brazilian ADR index .BKBR lost 0.25 percent and the index of Latin American ADRs .BKLA fell 0.24 percent.

Telecommunications companies weighed on the European ADR index .BKEUR, which fell 0.06 percent.

Top drags included UK's Vodafone Group plc (VOD.N), down 1.1 percent to $22.14 and Spain's Telefonica (TEF.N), down 1.4 percent to $83.86. The BoNY international telecom 35 index .BKTTL slipped 0.86 percent.

Japanese telecoms Nippon Telegraph and Telephone (NTT.N) and NTT DoCoMo (DCM.N) also posted losses, and limited gains on the BoNY Asian ADR index .BKAS, up 0.19 percent.

The Asian index was buoyed by gains in Chinese firms including bellwethers PetroChina Co Ltd (PTR.N), up 1.9 percent to $118.32 and China Mobile Ltd (CHL.N), up 1 percent to $50.13, bucking the global bearish telecoms trend.

As Layoffs Persist, Good Jobs Go Unfilled

noreply@blogger.com (أنـــا) — Wed, 7 Oct 2009 14:48:00 -0700

In a brutal job market, here's a task that might sound easy: Fill jobs in nursing, engineering and energy research that pay $55,000 to $60,000, plus benefits.

Yet even with 15 million people hunting for work, even with the unemployment rate nearing 10 percent, some employers can't find enough qualified people for good-paying career jobs.

Ask Steve Jones, a hospital recruiter in Indianapolis who's struggling to find qualified nurses, pharmacists and MRI technicians. Or Ed Baker, who's looking to hire at a U.S. Energy Department research lab in Richland, Wash., for $60,000 each.

Economists say the main problem is a mismatch between available work and people qualified to do it. Millions of jobs with attractive pay and benefits that once drew legions of workers to the auto industry, construction, Wall Street and other sectors are gone, probably for good. And those who lost those jobs generally lack the right experience for new positions popping up in health care, energy and engineering.

Many of these specialized jobs were hard to fill even before the recession. But during downturns, recruiters tend to become even choosier, less willing to take financial risks on untested workers.

The mismatch between job opening and job seeker is likely to persist even as the economy strengthens and begins to add jobs. It also will make it harder for the unemployment rate, now at 9.8 percent, to drop down to a healthier level.

"Workers are going to have to find not just a new company, but a new industry," said Sophia Koropeckyj, managing director of Moody's Economy.com. "A fifty-year-old guy who has been screwing bolts into the side of a car panel is not going to be able to become a health care administrator overnight."

It's become especially hard to find accountants, health care workers, software sales representatives, actuaries, data analysts, physical therapists and electrical engineers, labor analysts say. And employers that demand highly specialized training – like biotech firms that need plant scientists or energy companies that need geotechnical engineers to build offshore platforms – struggle even more to fill jobs.

Banks profit from capital raising

noreply@blogger.com (أنـــا) — Wed, 7 Oct 2009 14:29:00 -0700

NEW YORK — Leave it to Wall Street to figure out a way to win big from a government-mandated rush by banks to raise capital.

Some financial companies including Morgan Stanley and Wells Fargo & Co. are using their own in-house bankers to advise them on large public stock offerings that are being done to bolster weak balance sheets following the conclusion of "stress tests" that regulators did on them earlier this month.

These advisers don't work for free, even when they're doing deals for their own companies. The fees they charge will ultimately go back into corporate coffers, a roundabout way for the banks to generate profits.

Securities law experts say these maneuvers also can mask a company's financial health and potentially open the door for conflicts of interest.

"Commercial banks that need capital are going down the hall and asking their colleagues for investment banking advice. Then they are charging themselves a fee for helping themselves," said Anthony Sabino, a professor of law at St. John's University. "That sure doesn't sound like it propagates independent thinking."

These arrangements don't violate securities laws and the companies are fully disclosing that in-house advisers are part of the underwriting group. But Sabino and other finance experts still say this is something investors need to keep tabs on as banks look for ways to boost profits in tough times. One thing to watch is what kind of fees they charge.

It's not that the banks wouldn't need the services of investment bankers otherwise. Whether they hire their own staff or an outside firm, these advisers are helping them figure out how to raise money or expand their businesses. That could result in selling off business units, making acquisitions, issuing debt _ or as we've seen in the last week, selling common stock to the public.

That has been the favored route to quickly raise capital in the wake of the government's May 7 release of the "stress tests" conducted on the nation's 19 largest banks and other major financial institutions.

Rules For The Digital Office

noreply@blogger.com (أنـــا) — Wed, 7 Oct 2009 14:24:00 -0700

With inexpensive yet high-powered software and e-mail, businesses, large and small, can compete for work in Europe and Asia just as easily as in Hometown, USA. In the rush to exploit the time and cost-savings of digital technologies and communications, however, how many understand the legal rules of this new world?
Although cutting-edge computer and Internet laws remain fuzzy, basic principles affecting both home and office are clear. However, problems - and losses - can multiply as quickly as the instant it takes to copy a document and email it around the globe. Let's make a "back to business" review of common risks of today's digital office technologies - and legal precautions you can take against them.

* Do you have ironclad contracts with your software developers?

"Independent contractor" programmers of internal software and websites generally own the resulting work - not their employers - and can even resell it to competitors. A simple form assignment of the programmer's rights in the work-product protects the employer.

* Did you or your developer clear all rights - copyrights and trademarks - to your web site?

Web site designers cannot use copyrighted images or text. Just because something is easily available on the Internet doesn't mean that it can be copied for free commercial use.

* Can I use - or sell - the marketing information my web site collects?

The Federal Trade Commission has repeatedly investigated data collection from unsuspecting Net surfers, particularly children. Despite annual calls for clearer privacy laws, however, and for better disclosure of how a site will use information, no laws or widely accepted guidelines yet exist.

* Do you have proper licenses for all the software on your firm's computer hardware?

Copies of software for use by coworkers or at home by well-intentioned employees are illegal, without a more expensive multi-user license. (A single backup copy is usually permitted.) A major city recently paid several hundred thousand dollars to settle software piracy claims, and even law firms that should know better have been caught. (See http://www.bsa.org for a software publishers' trade group's sample policy and audit.)

* What rights do you and your employees have to information stored at the office?

In fact, employees have few privacy rights to electronic data. Employers may monitor email, Internet usage or conventional files as long as personal information is not abused. Many employers even track employee medical records, reported by self-insured health plans and HMO's, because digital records make them an easy source of legal - and illegal - management information. Since few employees are aware of this rule, morale can suffer when employers must exercise this right (as discussed below).

* Do I have to snoop on my employees' hard drives and Internet cookie files?

According to many recent cases, employers remain responsible for how employees use (or misuse) technology. For example, several prominent firms have been sued for "tolerating" harassing or bigoted email on internal networks. As a result, many firms have announced strict policies - like those for sick days - to prevent abuse.

* Are your business secrets really safe?

Sensitive information can be easily leaked without warning, when disclosed online or in portable phone conversations. Since the technology of digital snooping has outpaced the practical effectiveness of legal protection, such information must be kept confidential with special precautions, such as encryption.

* Can the electronic dead come back to haunt you?

Perhaps, if you are sued and must reveal information you "deleted." A deleted file remains easily recoverable in computer memory until new data is recorded over it. Courts have even demanded copies of backup files from home offices to simplify the task. As a result, record-keeping policies must cover the new risks of electronic files. For example, special procedures are necessary to completely destroy unwanted information.

Few of us would drive a new car without reading the owner's manual. Why should we be less careful when cruising on the Information Superhighway?

What Are You Doing to Attract New Workers?

noreply@blogger.com (أنـــا) — Wed, 7 Oct 2009 14:19:00 -0700

Companies are working harder and harder to fill those critical labor shortages. Some of the hottest ideas are stock options and company cars. Profit sharing, referral and sign-up bonuses up to $1000 are working for teachers and truckers. One company with good visual access to a major road had considerable success with a rooftop banner. Recruiting retired workers with critical skills is a technique many are applying. And access to on-site health clubs, tuition reimbursement and employee discounts are other ideas you should consider.

Larry Wilson, corporate marketing/communications manager for Intermec Corporation, a leader in bar code and automated data collection technologies describes some other considerations and ideas:

"You can have all the programs in place, but unless there is a corporate culture and a feel to a company that is genuine, the programs don’t matter, because they just won’t work," explains Wilson. "There’s a whole mix of things that come together that make a company successful at recruiting and retaining employees, but basically, management has to support the programs and promulgate them. Otherwise, employees know that they are not being supported and turnover will be high."

Work/family initiatives

Wilson credits the depth and breadth of the programs offered. "We are committed to work/family initiatives," he says. The company offers employees an employee assistance program (EAP), a referral service for child care and eldercare, flexible schedules, telecommuting options, health promotions, an in-house exercise facility, and financial and retirement planning.

Employees also have the opportunity to receive training in different areas. "If they go back to school to earn their B.A. or M.A., we pay 100 percent of their tuition and 50 percent of their books," Wilson notes. The company also has a training department dedicated to encouraging employees to add to or fine tune their skills. "We offer courses in performance management, conducting legal job interviews, business writing, influencing strategies for managers, exercising influence—classes that help people build skill sets so they can be more successful."

Intermec knows that just offering programs and benefits won’t matter unless employees feel that the company genuinely cares. "There are a lot of companies that say, ‘Well, we offer this and this and this,’ but they don’t feel comfortable when you walk in. Here, our employees know that we want to help them balance their work lives and their family lives. In terms of retention and recruiting, you have to take that into account if you want to keep good employees."

TIPS

Employees know if you don’t really buy into the programs you offer.
If the company makes it difficult to schedule flex time, or employees don’t feel that HR is responding to their requests in a timely matter, the end result will be an atmosphere of distrust.
Create an environment that tells employees their needs are important. This builds loyalty.

HELPFUL HINTS

Don’t neglect the basics. Employees care about good pay and benefit packages.
Offer additional training opportunities so employees build new skills to make themselves more attractive for promotion.
Employees like to know that their opinions count. Give them an opportunity to feel they have some influence.
Recognize long-term employees. It gives newcomers a sense of stability within the company.
Understand that employees need flexibility. Develop programs that consider them as whole people, not just employees.

Into the UnknownOld habits can block resolutions to conflicts.

noreply@blogger.com (أنـــا) — Wed, 7 Oct 2009 14:13:00 -0700

Unfortunately, the range of human interactions can't be easily reduced to a simple equation on a management scale. This makes predicating the psychological interaction between brothers quarreling about the direction of their company or trying to second guess the founder of company who refuses to acknowledge the strengths and skills of his or her children, extremely difficult.
But what can you, as an owner, a manager, or family member do to resolve conflicts when they are about human feelings rather than specific business issues? As a participant in this type of conflict, what would you expect to accomplish and how would you manage such a conflict from a leadership position?

In most of these conflicts, the primary response of the participants is to fall back on personal behavior that has been conditioned by habits.

When they attempt to resolve the conflict, they are trapped by their own habitual behavior and thought patterns, causing the process of conflict resolution to stall and or fail. Failure often means that either someone must leave the company, or the company itself must be sold.

Why can't people resolve differences when it would be in their best interests to do so? Why can't family members deal with their family feelings outside of the business. When those conflicts are brought into the business, the entire business is at risk, creating a situation that can seriously impact on the employees, as well as, all of the family members.

Usually, the participants are not aware that they are acting in a stereotypical manner, that is - they are responding in the same way they've always responded to similar situations. Each party in the conflict will complain that the situation is hopeless because the others involved are acting in an arbitrary and unreasonable way. In addition, each feels as if they are the only participant in the conflict who sees the situation clearly. They also believe that if their partner was reasonable, everyone could arrive at an amicable solution. The problem is, everyone believes it's their adversary who's being unreasonable and preventing resolution. Their adversary of course, would argue the exact opposite. When this happens, a mediator or consultant is thwarted, and the resolution process will be defeated.

The reason why this situation seems to occur endlessly was actually discovered by Dr. Freud many years ago. He simply called his discovery the concept of resistance. The real insight here, is that we all resist change, cling to behavior we're most comfortable with, and become frightened when faced with the unknown.

In order to solve the problems of conflict and difference that occur in our business and personal lives, we often need to confront the unknown and explore new patterns of thought and behavior. For most however, it's always easier to stay with "tried and true" than to venture into the unknown.

The situation that results after a conflict has been resolved is also unknown. For example, when one partner steps aside, the remaining partner must now face all of the issues, personal and business, while having to assume sole responsibility for success or failure. At that point, the person left in charge is forced to venture into unknown areas without relying on the excuse that an obstinate partner was at fault when things went wrong.

The dilemma is: Would it be better to continue an conflict, or to break out into the unchartered waters of leadership and responsibility? And so it goes...

Licensing vs. Manufacturing: What's Best for Your Product

noreply@blogger.com (أنـــا) — Wed, 7 Oct 2009 13:47:00 -0700

Profit -- it's the elusive symbol of success that nearly every inventor and entrepreneur dreams of and strives for. Most would agree that this accomplishment is typically reached by the successful placement of your product in the marketplace. But to achieve this goal there exists two distinct paths:
licensing and manufacturing.

Neither process is superior or inferior to the other, but each demands a distinct and separate set of skills and abilities. Play to your strengths! Choose the path that works best for you.

The first step for both is actually the same: studying the marketplace. The old adage "knowledge is power" is hugely relevant here. It is crucial that you gather information on every aspect of your potential product's market, including the answers to these questions:

Who are my major competitors?
Who are the smaller producers?
What are my potential sales?
How large is the market?
Who are the primary consumers?
What is the benefit of my product in relation to my competition?

In essence, you are forming a business plan through the information accumulated. The more "data" you are able to amass, the more thorough and accurate your business plan is likely to be. Being uninformed or misinformed will result in faulty assumptions and difficulty licensing or manufacturing your product. Studying the marketplace must be done before all other tasks! If you are licensing, this business plan will provide the blueprints for submitting your product to a company; if you are manufacturing, this business plan will help you determine your net profit at the end of the day.

Licensing

The next step in licensing is "proving" your product. Your work in this initial stage should be directed at answering and supporting the question "Why should my company license and invest in you and your product?" You are attempting to convince a company to pay you a royalty on the wholesale of your product. Before they do so they will want to make sure your product is both worthy and capable of success. "Proving" the worth and potential success of your product can be achieved by creating a prototype or concept drawing of your product. If the technology used by your product already exists in the market (and there is no need to prove that it does indeed "work"), you should create a sell sheet of your idea. This sell sheet should detail your fresh approach, new strategy, or whatever differentiates your product from those that already exist. The important thing to remember is that you are selling the benefit of your idea, not your prototype.

You will need some form of intellectual property protection for your idea, although filing for a patent need not consume your time and resources. I am not an attorney and cannot give legal advice but here is what has worked for me: File a provisional patent; it will give you temporary protection without huge expenditures

Manufacturing

Manufacturing involves taking your prototype and turning it into a real production product. This could include tooling, die making, etc. It is likely you will need to attend a trade show to present your product and introduce it to your potential market.

You will need to set up an office, possibly with several employees, and invest in inventory. You will also need to draw up an advertising and marketing plan to publicize your product and entice customers to buy it. This series of steps could take up to one year.

Estimated startup cost: $250,000 (even for a low-cost product)

So How Do I Decide Which Route to Take?

Essentially, licensing your product requires significantly less time and money; however, the potential payoff involved is also much smaller. If you license, you have the freedom to live and work anywhere. Licensing demands creativity, resourcefulness, an understanding of manufacturing, and, above all, an excellent ability to SELL.

Manufacturing a product demands a greater investment of time and money, but it can produce much higher dollar returns and can be accomplished on your own terms. Compared to licensing, manufacturing is definitely a more high-risk proposition, but it can be very successful if done correctly. The process demands that an individual possess all the skills necessary to run a small company: an understanding of manufacturing, finance, sales, and inventory control

Starting a Company? Make Sure You Spend Time Planning

noreply@blogger.com (أنـــا) — Wed, 7 Oct 2009 13:42:00 -0700

I started off this set of posts discussing the three things that I felt were most important when opening a new company. Planning comes in as number two on my list.

I'm basing this post on a past professional relationship with an old client. Names have been changed to protect the guilty, but this story I feel really needs to be shared with those of you who are contemplating opening a business.

The client came to me quite soon after the initial business idea had taken place in her mind. She ran the idea behind me so that we could discuss the type of web site that would work best for what she wanted in her company.

During this chat, I asked her a variety of questions, and I was a little hesitant when she had difficulty answering them. These weren't involved questions, just basic topics about how she wanted her business to run once it was up and going.

A few days later I began working on her new site. I designed for a while and then heard back from her: While she liked the design, she'd been looking at websites for similar businesses and wanted to change something. I made the changes and continued on.

A few days later she contacted me. She'd been doing some thinking and decided that she really didn't want to offer one product to her customers and so she wanted that product removed but she wanted to add several others. When I asked what she hoped to charge the customers, she made up a number and said, 'Does that sound fair?'

Since I had not done any market research on her items, I told her to go out and find similar products, see what they were charging, determine what was the same and different about hers and price accordingly. You see, businesses do a ton of research before putting a price on a product or service. And if they don't, they'll likely find that they have either overcharged or undercharged, and neither of these things is good.

A minute after sending my reply I received one from her: Just put X amount of dollars as the price. If it is too high I'll lower it later.

It was too high. She had to lower it later.

After this had been done, I continued working on the site and, well, you guessed it: A few days later I received yet another email that she'd decided to add on an entirely new feature to her products and needed to know how to go about doing this since she had already started trying to sell her first set of products.

By this time, as you can imagine, I was quite frustrated. But more than that, I was worried about the future of her company because she had spent such little time planning.

Many businesses exist, and many new business fail. Why? Oftentimes money is to blame: Not enough in reserves to carry a person through the difficult times. Perhaps the company has advertised enough, either, or they find that there is a lot of competition in what they are offering, be is services or products.

In all of these cases, adequate planning could have told the potential business owner what needed to be tweaked, changed, added or deleted from the business before the business even began.

Planning is crucial to starting a new business. If you can't sit down and write out a business plan, as important as this is, you should at least write down your goals, as we talked about in the last post, and then you should begin planning out your business on paper, so you can see it in front of you. What are the key areas that need to be addressed when you start this business? What is it that has to be done first, and then next, and then next, before opening your doors? What is it that differentiates you from the other businesses that feature the same type of services and products?

You can answer all of these questions by planning correctly.

In the end, I developed the website and as always continued to keep in touch my client to see how she was doing. Unfortunately her company did not last. There were numerous reasons, but I can tell you that each of those issues could have been developed better if she had planned ahead. While this would not have guaranteed her success (nothing can do this!) it would have at least given her a much more realistic picture of her potential business, its possible successes and its probably pitfalls.

Summer security shortfalls put two million small businesses at risk of burglary

noreply@blogger.com (أنـــا) — Sun, 4 Oct 2009 06:58:00 -0700

A staggering 44% of small businesses are at an increased risk of theft due to security lapses in the Summer months, according to new research released by specialist business insurer Hiscox.

This means that Summer security shortfalls are potentially putting two million small businesses at risk of burglary.

At a time when cash flow is tight and an office theft could be devastating to a small business, the survey found that basic security lapses at company premises are putting SMEs at risk:

Just under half (44%) of small businesses say staff are more lax about closing windows, setting alarms and locking exit doors in the summer months of June to August
One in five respondents (20%) have arrived at work to discover that a window or exit has been unlocked or the alarm is not set
Almost half (48%) believe workers are never as stringent about security measures in the workplace as they would be in their own homes.

The study also reveals that small business owners are themselves failing to prioritise their security strategies. Even in times when redundancies are commonplace, almost three quarters admit that they don’t change locks and access codes to the office when staff leave the company office or premises.
Of even more concern for a sector where there is often only one person left in the office, almost eight out of ten small businesses take no extra security precautions for employees who find themselves in this situation.

The implications of an office robbery can be huge for a small business so to help businesses to reduce the risk of theft, Hiscox has some security tips:

Make sure you use all your security measures every time the office is left unattended
Protect your business by changing access codes and removing systems access when employees leave
Have a business continuity plan for how you would do business if your office is damaged or you lost some equipment. Regularly test the plan to make sure it works
Take appropriate steps to protect sensitive business information, including clients’ data.

choose a business bank account

noreply@blogger.com (أنـــا) — Sun, 4 Oct 2009 06:47:00 -0700

Choosing a bank account for your small business is an important stage in the startup process. There are several key things to consider - such as transaction and borrowing costs, what facilities the bank offers, and the type of relationship you want from a bank.

Here are some suggestions which may help you decide which bank would best suit your needs.

Choosing a business bank account - tips

1. You must set up a business account if you're starting up as a limited company, partnership or any other key business structure. Sole traders can use their own personal accounts (or via a new business account - John Smith trading as XYZ).

2. Don't necessarily choose a business bank account simply because you are a personal banking customer. You may well feel more comfortable with a bank you already know personally, but they may not offer the best deal for your business.

3. Make sure you compare several business banking offerings, and compare the costs and charges associated with each one. A good place to start would be Bytestart's small business banking partner, Abbey, offering free day-to-day banking forever.

4. Naturally, only go for banks that have a strong background - names you will have heard of, or even internet banking brands which are owned and operated by the big players.

5. Bank Charges - a key point to consider is how much it will cost you to have a business bank account. You may have a large number of monthly transactions to process, for example, so ensure you know exactly what charges will be levied on your account before signing up. Many major banks provide "free" banking for set periods to new businesses, so this may also be of interest.

6. Online Business Banking - this is an increasingly important service, and most banks now provide an internet service so you can check the status of your account day or night. At Bytestart, and with our previous businesses, this is an essential service. Rather than ringing the bank to check if a payment has been made to your account, you can do this yourself in a fraction of the time.

7. Interest - for obvious reasons, you shouldn't hold out for great returns on your business savings income during the current economic climate, but you can certainly choose a bank which offers either free banking, or zero transaction costs.

8. Small Business Team - go for a bank which has a specialised small business banking unit. The set-up process should be simpler, and dedicated teams will be used to dealing with all types of small business and their specific needs.

Some businesses will require regular contact with their bankers, so you should go with a team you feel you can build a good personal relationship with.

How to fund your business - Overview

noreply@blogger.com (أنـــا) — Sun, 4 Oct 2009 06:41:00 -0700

One of the least exciting things about starting your own business is getting the finances sorted out (unless you’re an accountant of course).

But it’s one of the most important things. Doesn’t matter how good you are at what you do – if the money runs out, your business is dead.

Before starting up, you should have a clear idea of how much money you are going to need to invest into your business. Even companies that are quickly profitable can burn through a fair amount of cash at the beginning.

Do a simple forecast for your first year: For each month, what money will come in, and what will you spend? Most people overestimate revenue and underestimate costs, so take account of that. And think how late payers and seasonal effects could put extra pressure on your cash flow.

You should now have an idea of how much cash you’re going to need to fund your business. There are several different ways to find this money:

Use your savings: The safest and cheapest way to fund a business. If it goes wrong, you’ve only lost your cash, and won’t be lumbered with a load of debt.

Do it part-time: Could you start your business while continuing to work for someone else? You may struggle to grow past a certain point, but it could help to ease the financial pressure. This has the added bonus of being a low risk way to prove your business idea works.

Get a grant: Several organisations may give you a lump of cash you won’t have to repay. Your eligibility normally depends on you, where your business is based and what it does. The Prince’s Trust offers some grants in exceptional circumstances. Other grants are available from the government, EU, regional development agencies, some charities and Business Link. They have a searchable directory of grants here.

Borrow some money: Many small businesses are started using personal debt raised by the owners. Unsecured loans give you the advantage of fixed repayments over a certain period of time, helping your financial planning. It may be cheaper to borrow more money on your mortgage, but you will have debt secured on your home, making the risks higher. You can also read our guide to small business loans.

You could also use overdrafts or credit cards, although these are expensive and unreliable ways to borrow money in the long-term. If you do manage to secure commercial funding, it’s possible the bank will demand your house or other property as equity.

Borrow from families, friends and other idiots: A phrase used by business advisors! If people you know want to lend you money, agree concrete terms first and get a legally binding agreement signed. It’s easier and cheaper to sort these things out before problems crop up.

Lease things: If you don’t need to own equipment, why not lease it? This can work out more expensive in the long-term, but will help your cash flow when you’re starting up.

Factoring: This is where you sell your debt to another company. It’s normally used by businesses that must offer credit terms on invoices, but don’t want to wait 30, 60 or 90 days to be paid. The factoring company pays you immediately, and gets the money from your customer when it’s due. Although the company will charge you a percentage fee, it might stop you needing to borrow a lump sum just to keep your cash flow healthy. You can read more about Factoring and Invoice Finance here.

Equity: This is where you give up a part of your business in return for an investment of cash – what you see on Dragon’s Den. It’s a lot harder to pull off in real life. You need a sound business idea, a solid business plan, and a good opportunity for fast growth. Then you need to find potential investors and pitch to them.

There are two types of equity investors. Venture Capitalists are typically large firms that put in £1m or more. Business Angels are private investors who will offer smaller amounts, from a few thousand up to £100,000+. Sometimes several Angels will club together.

For the investors, the risks are high, so they expect a good return on their investment. And it’s likely they will want to be involved with the strategic decisions you make in your business, as it’ll be partly their money you’re working with!

Remember to get professional advice from a qualified accountant before taking any action. Don’t rely purely on information contained in this article.

Writing a Business Plan

noreply@blogger.com (أنـــا) — Sun, 4 Oct 2009 06:32:00 -0700

About the Bytestart Business Plan Guide

The following multi-part guide on how to write a business plan serves as an outline for anyone who is thinking of starting their own business (or improving an existing business).

The aim of this guide is to focus your ideas and create an easy-to-follow plan which can be shown to potential investors, bank managers and business partners.

The guide was written with help from the EBP Business Plan Designer Team.

Introduction

This book is intended to be a quick guide to help you design a business plan for you company.

The sections in this guide are the essential aspects of any business plan and are also the main points that a potential investor or bank will look for when considering investing in your project.

It is best not to make the document more than 25 pages long, but anywhere between 20 and 50 pages is acceptable, so long as the content is relevant.

As well as the basic information we have also included a number of tips in each chapter that should help you to complete each section appropriately.

Finally, do not forget that the business plan is the most important document you will create for your company.

Contents

1. Objectives

2. Executive review

3. Market analysis

4. Demand analysis

5. Environmental analysis

6. Company analysis

7. Analysis of the competition

8. Marketing strategy

9. Success factors

10. Economic analysis

11. Finance

12. Conclusion

400 TN's rich are tens of millions poorer this year

noreply@blogger.com (أنـــا) — Sun, 4 Oct 2009 06:16:00 -0700

Even the wealthy among us are taking a hit from the recession — and their dollar losses are evident by glancing at the latest "Forbes 400" list of the richest Americans.

Some of Tennessee's wealthiest residents lost tens of millions of dollars over the past year, according to Forbes magazine's annual rankings.
Martha Ingram of Ingram Industries and her family lost $800 million in net worth over the past year, falling 11 places to 158th on the Forbes list, the magazine reports.
Ingram, with an estimated net worth of $2 billion, shares that ranking with 24 others, including real estate mogul Donald Trump and Facebook CEO Mark Zuckerberg.
Also, Frederick Smith, chairman, president and CEO of Memphis-based FedEx, lost $350 million, Forbes estimates, falling 15 spots to 212th on the list.
But there's at least one gainer among Nashville's business elite.
Dr. Thomas F. Frist Jr., 71, and his family actually gained ground — matching the estimated holdings of Ingram, Trump and Zuckerberg.
Frist, an HCA co-founder, gained $100 million in wealth, to reach $2 billion, Forbes says. That moved him from 246th last year to 158th and a tie with the others.
The wealthiest person in the nation remains Microsoft's Bill Gates, valued at $50 billion after losing $7 billion in the past 12 months, the magazine said.

Drop in lending

noreply@blogger.com (أنـــا) — Sun, 4 Oct 2009 06:08:00 -0700

"Eastern Europe is in the throes of a very deep downturn, and European banks are still exposed to them, even if the loan losses are related to deep recession rather than to a crisis, as was feared six months ago," says Ken Wattret, Europe economist at BNP Paribas in London.

Wattrett points out that even if banks in Germany, Austria and Italy stay solvent, lending to the corporate sector across Europe is down 6% year-on-year and there is every indication that it will be reduced still further.

And there's more. For the last decade or so Eastern European economies have provided a ready and growing market for German goods.

"That's not coming back," says Wattret, "not for a long time. And that means one of the key drivers of the European economy, the German exports to the east, is severely curtailed."

Germany may well not be in recession but the nature of the recovery and the scant prospects for its corporate base hardly justify a 34% gain in the Dax since March, while a 43% gain in the Italian MIB Index, and a 50% gain in the Austrian market are starting to starting to take on a distinctly bubbly appearance.

Stimulus packages

noreply@blogger.com (أنـــا) — Sun, 4 Oct 2009 06:04:00 -0700

Much of this can be put down to the stimulus packages, which have been without question enormously successful in preventing, easing, or perhaps just deferring recession.

Withdrawing those packages will require all the delicacy and finesse of extracting a royal flush from the bottom of a house of cards - which is why the G20 was so keen to assure the markets that nothing gets withdrawn until the recovery is well in place.

That may be some time. The Europeans have been celebrating the fact that Germany and France are out of recession. Yet there are some serious reasons to be concerned about future growth, and most of them lie to the east.

Six months ago there was a real fear that the Baltic states, Ukraine and several of their neighbours could go into meltdown. The International Monetary Fund and the European Central Bank stepped in with ready cash and disaster was averted.

The stock market response to the crisis was justified. The Ukrainian market, for example, fell 83% from its peak. The response to the recovery (in Ukraine's case a 183% rise from the trough in March), is less so. Then again one expects such volatility from emerging markets.

What one expects less is such a strong rebound in markets that have extensive links with these fragile states. The IMF pointed out this week that European banks have written down only 40% of their bad loans. That failure to recognise dodgy debt lies largely in continental Europe, among banks that have heavy exposure to Eastern European economies.

Economic optimism

noreply@blogger.com (أنـــا) — Sun, 4 Oct 2009 06:00:00 -0700

Can we really have reached such a point so soon after the market hit rock bottom?

Yes, we can. The bear market of the 1990s in Japan was marked by many such moments. The crash of 1929 was followed by a 48% rally over six months - followed by another precipitous crash.

That bear market rally was fuelled by economic optimism at the very top. US Treasury Secretary Andrew Mellon said in December 1929: "I see nothing in the present situation that is either menacing or warrants pessimism."

Today's rally can hardly be based on ignorance of the economic facts. Scarcely a day goes by without an economist/politician/journalist explaining how weak the global economy is. And yet the rally continues.

Germany and France have been celebrating exiting recession

markets reaching bubble proportions

noreply@blogger.com (أنـــا) — Sun, 4 Oct 2009 05:54:00 -0700

So how long can this go on for? As the markets race ahead, and investors bob along with them through the rapids, the sound of the waterfall ahead gets louder and louder, but no one knows exactly around which bend it will appear.

At the moment investors are driven by a frenetic desire to catch the bull market which many ruefully admit to having missed out on.

Others agonise over when the fall will come so they can jump aboard immediately afterwards, safe in the knowledge that the big drop is behind them.

There are plenty of institutional investors sitting on the sidelines. But there is a weight of money in these markets desperate for returns in a world of negligible interest rates.

Research group Compeer reported that the number of deals placed through retail stockbrokers rose to more than four million in the three months to June, a number surpassed only in spring 2000.

For many that is a sign that a market is reaching bubble proportions, the point at which, in the parlance of 1929, the bellboys are handing out stock tips in the lifts.

start your business

noreply@blogger.com (أنـــا) — Sun, 4 Oct 2009 03:44:00 -0700

Money is the lifeblood of any business. In the links below, you'll find stories about how to find the money you need to start your business, including real stories of successful business people who share their mistakes and their best moves. In her VIDEO, below, small business owner and USA TODAY columnist Rhonda Abrams, CEO of The Planning Shop, tells you how you can take advantage of free advice and information offered by the government at Small Business Development Centers and by industry trade associations and others.