ConsultantJournal.com

Advice from Bill Cosby

admin — Mon, 09 Nov 2009 04:08:13 +0000

I disagree with this, but this still made me laugh out loud:

"A word to the wise ain’t necessary - it’s the stupid ones that need the advice. "

- Bill Cosby

The wise, of course, are already looking for and following good advice!

Henry Ford failed

admin — Wed, 04 Nov 2009 07:36:01 +0000

"Failure is simply the opportunity to begin again, this time more intelligently."

- Henry Ford

Known today as a business magnate, philanthropist and social entrepreneur, Henry Ford actually failed several times:

He burned through all the money from his first group of investors without producing a car
He eventually produced a car and raised another $60,000 in share capital, but his Detroit Auto Company went bankrupt
In the 1920s, Henry Ford refused to update the Model T car, leading sales to fall dramatically
Ford tried to launch a political career, but never succeeded

Yet Ford played a tremendous role in shaping car engineering, assembly line production, business, pacificism, social leadership in business, education and other areas.

But rather than viewing failure as doom, Ford saw it as an indication that improvement was needed. Perhaps that’s how he seized on the opportunity to refine Model T manufacturing, reducing assembly time from 14 hours to about 90 minutes.

How do you view your failures?

Become a financial consultant

admin — Mon, 02 Nov 2009 07:10:57 +0000

Become a financial consultant if you have a financial background and are interested in the benefits of being a consultant.

In the simplest terms, financial consultants offer advice about financial matters. Most financial consultants have a background in economics and experience working with banks, trust companies, mortgage companies, brokerage firms, mutual funds, or other financial management organizations.

There are many possible specializations to consider if you decide to become a financial consultant:

accounting;
insurance;
finance law;
comprehensive financial planning;
retirement planning;
pension analysis;
bankruptcies;
risk management;
debt management;
investment management;
will and estate planning; and
cash management.

Depending on specialization, a financial consultant’s clients may include individuals, families, corporations, trusts, and privately owned firms. When some financial professionals become consultants they specialize in a client group, such as female or retired clients.

Many financial consultants are accredited or hold membership in relevant organizations, such as being registered financial planners (RFPs), certified financial planner licensees (CFPs), and certified financial consultants (CFCs).

Financial consulting can be a lucrative career. Find out more about how to set consulting fees here.

The steps involved in becoming a financial consultant are similar to what is involved in starting most business consultancies. For help starting a financial consulting business, check out this series on how to become a consultant.

There are many types of business consultants, and becoming a financial consultant is just one option. If you’d like to learn more about your unique skills and are wondering whether to become a financial consultant, consider taking the course Discover Your Inner Consultant.

Become a tax consultant

admin — Wed, 28 Oct 2009 07:05:58 +0000

Become a tax consultant and see your career in a whole new light. One of the many benefits of consulting is the ability to control your schedule and reap your own rewards. Becoming a tax consultant may be just the consulting career you are looking for.

Tax accountants can range from unaccredited consultants who prepare simple tax returns to in-demand CGAs or CPAs.

Many tax consultants specify in one area, such as tax compliance, corporate tax issues, estate planning, real estate, in-bound international tax or out-bound international tax.

Tax consulting is a field with rigid and complex regulations. In addition, tax consulting is a field that requires a substantial amount of knowledge and training. Whether to become a tax consultant will depend on your own background. If you will require a substantial amount of training or education, it may be worth it to consider becoming another type of consultant.

If you do have the background but are wondering how to branch out on your own or how to set your consulting fee rates, consider taking my online course or purchasing one of my books.

Apply for a line of credit

admin — Mon, 26 Oct 2009 07:14:28 +0000

Apply for a line of credit before you need it. It can take some time to apply and get a line of credit; if you’re considering doing so, apply for a line of credit now, especially if you’re considering starting a new business.

A line of credit is a predetermined amount of money that a banking institution sets aside for your use. For example, you may apply for a line of credit from a bank, which grants you a $5000 line of credit. You will gain access to this $5000, but, much like a credit card, you are only charged interest on the amount you use.

All lines of credit are not equal. Much like everything else in the financial world, rates can vary greatly. While it’s a good idea to start with your own banking institution, do research. Before signing on with a lender, contact a number of banks and lending agencies; compare rates and terms.

Lines of credit are generally preferable to credit cards because line of credit interest rates are usually lower than credit card interest rates.

When you apply for a line of credit, you may need:

The reason why you want to apply for a line of credit;
A list of your assets and liabilities;
A letter from your employer, stating how long you’ve been employed and the terms of your employment; and
Other personal details.

The lender will also do a credit check on you. If you are interested in applying for a business line of credit, read this article.

Applying for credit can be a wise decision when managed responsibly. In fact, one of the top reasons that small businesses fail is a lack of cash flow to get them through lulls in the market or times of redevelopment. Apply for a line of credit today.

Remember, ConsultantJournal.com and its contributors only provide general information, not advice. Talk to a financial advisor, accountant and lawyer if you need business advice.

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Are you friends with your clients and vendors?

admin — Sun, 25 Oct 2009 07:50:57 +0000

I’m a people person. I like people. And I like talking. I don’t like being fake, though, so I tend to be straight up with people. As a result, I find that I connect with a lot of people. Because I run a business, this means that some of my clients and vendors have become close friends over the years. In turn, many of my friends seek me out as a supplier.

I grew up in a small town and so it seems completely normal to have such blurry boundaries in my life. In a community, people do business with people they trust. If you trust someone, it makes sense that you might sometimes see a friendship emerge. And, if you have friends who need business services, you may sometimes find yourself in a business relationship with those friends. Sure, it makes for some complicated dealings, but it means that there’s some authenticity to the business relationships you have. Why would you treat your clients and vendors any differently than the other people in your life? Trust is at the core of any relationship, whether it’s business or personal.

Are you friends with your clients or vendors?

Start thinking about holiday cards

admin — Thu, 22 Oct 2009 21:35:38 +0000

Even though the holidays are still some time away, it’s never too early to start planning. Holiday cards or Christmas cards can form an important part of your marketing plans. That’s because holiday cards offer you the chance to build on your relationships with customers, prospects, vendors and other contacts. To avoid disappointment, though, you should start thinking about ordering and organizing your holiday card plans now.

Check out our past posts on holiday cards:

You might also be interested in Christmas jobs.

Get a better credit rating

admin — Tue, 20 Oct 2009 07:10:09 +0000

Get a better credit rating today. Ensuring that your financial house is in order positively affects your personal and business life. So follow these simple steps and get a better credit rating now.

1. Get to know your credit rating

Getting a better credit rating starts with becoming familiar with your own credit score. Keep tabs on your credit rating. Request free credit reports annually. Doing so makes you a more informed applicant. It also helps you keep track of changes to your credit over time.

Check your credit report in detail. There are a surprising number of mistakes and outdated information on credit reports. If you encounter an error, contact the lender involved and ask them to notify the credit bureau with the correction.

2. Pay your bills on time

Paying on time is crucial to good credit. Your payment history shows that you have a reliable financial history (or, alternatively, your history can show that you’ve been over-extended or disorganized). Even small infractions such as a late credit card payment can make it difficult to get a better credit rating.

Above all, from now on, pay all your bills on time.

If you are in a cash crunch making payments can be difficult. If you are having financial difficulty, contact each lender as soon as possible. Let them know that you are having trouble, and try to negotiate more favourable terms or lower the payment.

3. Show credit responsibility but reduce unnecessary credit

Having a few credit cards that are paid off every month actually helps your credit. Make sure that you have at least one or two credit cards that are paid off on time every month. This shows lenders that you keep track of and keep on top of your finances. However, don’t go overboard. Too much credit can be detrimental to your credit rating, even if the balances are paid off.

Your available credit is calculated by the credit bureaus to determine how much credit you have access to. For example, if you have a credit card with a $5000 limit and the balance is at zero, the credit bureau will still see you as having access to that $5000.

Balance is key. Show responsibility but reduce unnecessary credit.

4. Limit the number of hits on your credit

Every time a lender requests your credit report this "hit" is registered on your credit report. For this reason, in Canada lenders must always ask for your authorization before performing a credit check. The more hits showing that lenders were inquiring about credit can be a red flag to the credit bureau.

To get better credit don’t allow any more hits to your credit than are absolutely necessary.

5. Pay down debt by reducing spending or increasing earnings

If you want to get a better credit rating, chances are you could benefit from reducing your expenses or earning more money.

Many people get second jobs or become consultants to reduce their debts. Doing so will allow you to pay down more debt and get a better credit rating. When paying down debt, pay your highest interest loans first but continue making minimum payments on your other responsibilities.

If you’d like to know more about how to become a consultant and reduce your debts, consider the How to Become a Consultant course.

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Negotiating credit card rates

admin — Mon, 19 Oct 2009 07:05:17 +0000

Negotiating credit card rates is something that many consultants neglect to consider. However, it is possible to negotiate credit card rates and get your rate lowered.

Your chances of successfully negotiating a better credit card rate increase if you’ve been a loyal customer and you have an above-average credit rating.

When negotiating credit card rates, do your homework before you call to negotiate a rate reduction:

Know your current credit card rate;
Know the rate you could secure if you went with a competitor;
Know how long you’ve been a customer; and
Know your credit rating.

When calling, use your leverage. Let the company know that you’re considering canceling the card and going with a competitor. Mention that you are pleased with your current company and you wish they could match or exceed the competitor’s rate.

Depending on the bank or customer service agent, you may get turned down. If this happens, ask to speak to a supervisor. The supervisor may also respond negatively. Every bank has different policies and procedures when it comes to flexible interest rates.

If, as a result of your negotiation, you are offered a different card, be sure to read the fine print. Many cards offer an initial low interest rate, but the interest rate spikes after the initial teaser period ends.

There is no guarantee that attempting to secure a better rate by calling and requesting a lower rate will be successful. However, negotiating credit card rates is certainly worth investigating.

If you’re operating on credit, it may be wise to consider other options in addition to credit cards.

As a consultant, you run a business. Don’t hesitate to look into business loan and funding opportunities. Contact your local Chamber of Commerce or business institution to find out more about business loans and grants in your area. In Canada, try contacting the Business Development Bank of Canada for loans or Canada Business for grants or subsidies. In the USA, contact the U.S. Small Business Administration for assistance.

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Becoming a management consultant

admin — Fri, 16 Oct 2009 07:08:39 +0000

Becoming a management consultant is just one of many types of consulting opportunities.

Management consultants help organizations improve their performance. Management consultants are often hired on a per-project basis to identify problems and propose solutions. Corporations and governments seek the advice of an external management consultant because an objective outside opinion is often preferred.

It is possible to become a certified management consultant (CMC). Certifications are based on standards set by the International Council of Management Consultant Institutes (ICMCI).

Becoming a management consultant may be an appropriate career choice for you if you are aware of industry best practices and have experience in managerial roles.

However, there are many types of business consultants, and becoming a management consultant is just one of the many options. If you’re not sure whether management consulting is the business consulting niche for you, consider taking the course, Discover Your Inner Consultant.

The steps involved in becoming a management consultant are similar to the steps involved in starting most business consultancies. For help starting a management consulting business, check out this series on how to become a consultant.