PEX Card Business Prepaid Card Blog

Case Study From the Field #2

noreply@blogger.com (Toffer Grant) — Tue, 07 Apr 2009 21:41:00 +0000

In our second case study post we are going to discuss one organization's use of prepaid cards for business as a per diem tool.

Companies put people on the road for different reasons and in this case the we are talking about a school that sent teachers and staff to a conference. Each person was given a per diem of $54 per day.

The program administrator set the Scheduled Funding feature for each profile to automatically top up their business prepaid cards every day with the authorized amount. Doing so provided fresh balances to cards each day. If a cardholder spent only a portion of the funds, the program feature would replace only what was spent to bring the balance back to $54.

Also, the Merchant Category Spend Rule was turned on to keep compliant with IRS per diem rules and the school's expense policy. Only spending in restaurants with our business prepaid cards was allowed - our system blocks attempts to spend in unauthorized locations.

All in all, our service performs well as a per diem control tool and this is just another example of the versatility of our program.

Check out the program at: PEXCard.com

Case Study From the Field #1

noreply@blogger.com (Toffer Grant) — Mon, 06 Apr 2009 11:52:00 +0000

Every manager or business owner has their own style of managing cash flow and keeping employees on budget. Some prefer managing cash on a day to day basis, while others prefer a more hands off approach and to look at numbers monthly. Either way, reloadable prepaid cards for business make the cash management process for crews in the field much more efficient than petty cash or credit cards.

One customer in particular is the day to day sort of manager. He likes to fund his PEX Account with about $5,000 at a time, which is enough to fund his crews' needs for five to ten days. His guys move from one place to the next daily so they are always on the go. Anticipating that each crew will need an average of $500 per week, he budgets the accounts accordingly.

Certain cards have automatic card reload features activated, so that every morning cards are topped up with funds and are ready for use that day. If there is spending, our system tops the card back up to the amount pre-determined amount automatically during the night so its ready for another day out in the field. The owner doesn't have to worry about doing it because it is automated.

Every few days the owner reviews account balances and spending to make certain nobody is running low and to see where his guys have been spending the night, purchasing supplies, buying gas and eating food. All the information is available from one place online and it takes no time to review the account details.

Reloadable prepaid cards for business have made it simple for this particular company. We are happy he chose to use them for his business!

Check us out: PEXCard.com

Getting Money to People in Field Made Easy

noreply@blogger.com (Toffer Grant) — Fri, 03 Apr 2009 11:41:00 +0000

Companies that put their people in the field know all too well that dealing with expenses can be a hassle. For some, employees are asked to pay out of pocket and submit expense reports, for others you can issue cash or a corporate credit card. But in all these cases, the expense situation is still a drain on time and resources no matter what.

We are focusing on creating programs to ease the burdens of expense management for companies that put folks into the field, which is why we started the first reloadable prepaid debit card for business. The positive feedback we get from customers has been overwhelming and it is a great validation that the service is useful to people. We love hearing that.

The common feedback thread we get from companies is we are saving them time. Managing expenses through reloadable prepaid debit cards limits how much time they spend worrying about how to get money to people in the field who are traveling far from home. All they have to do is login, select the cardholder who needs money, add money through our QuickFund feature and log out. The operation takes less than :30.

Because all the transactions appear instantly, as they occur, the company can keep tabs on spending immediately. If they want to update their accounting software before the receipts come in, they can do that too. The process is handled more smoothly and an accurate cash position is always on hand.

Give it a try!

http://www.pexcard.com

CEO Podcast Interview

noreply@blogger.com (Toffer Grant) — Wed, 11 Mar 2009 12:07:00 +0000

On February 24th I appeared as a guest on Anita Campbell's internet radio show / podcast called Small Business Trend Wire. The title of the show is "Control Employee Expenses and Reimbursement: PEX Card" - it can be found at this link.

Please take a moment to read the show notes and listen to the show. At the bottom of the page there is a red and yellow box, click on the play button in the yellow portion and the embedded player will start the episode (make sure your sound is turned up).

Anita is a great host and she has become a known entity in the business of small business marketing, blogging, and advice - so it was an honor being part of her show. Anita is also well known for her blog, called Small Business Trends, where several writers come up with good content read by a very active community that comments and adds additional value.

Given that this edition of her show focused solely on introducing our service to the community, it gave us a chance to get into the details about how things work, who we are and why we are different from traditional banking cards.

If you have a chance - please take a moment to listen!

Thank you!

Internet Radio Show Today at 1:30 EST!

noreply@blogger.com (Toffer Grant) — Tue, 24 Feb 2009 15:13:00 +0000

I will be joining Anita Campbell today on her show "Small Business Trends Radio" a live internet radio broadcast.

Today's show is entitled: "Control Spend, Expenses and Reimbursement Paperwork: PEX Card"

Please join us at 1:30PM Eastern time, at: http://tinyurl.com/br3yuk

Tune in! The broadcast will be available in podcast format afterward, so you can listen from your web browser or on your iPod anytime.

Wait! What Credit Limit?!

noreply@blogger.com (Toffer Grant) — Tue, 10 Feb 2009 15:52:00 +0000

Over the last several weeks we've been hearing more about abrupt changes to credit lines on business credit cards. Since last Fall, conversation in the press has circled around the effect the credit crunch is having on consumer credit card accounts relative to purchasing power and commercial loans but now it is affecting business credit card accounts too. Companies are finding it difficult to conduct normal daily spending activity and they are unpleasantly surprised when cards suddenly stop working mid-month without warning.

Companies in most industries are being hit hard by bank tightening. When credit limits are suddenly imposed or lowered without advanced notice, reaching newly imposed limits is problematic because all cards are blocked from further use until the bill is paid. This is disruptive especially for companies with employees that are in the field spending ad hoc for supplies, fuel and other business expenses.

New credit limits reported are lower than what companies spend monthly irregardless of clean credit and payment history. If limits are lower than the amounts companies need to operate at a bare minimum, credit cards will quickly lose their value as an effective payment tool in business. The card industry has proven to us that card spending is more efficient, can minimize risks of managing cash and can streamline check or cash operations through simple distribution, especially compared with cash and checks.

Companies are being forced to look for alternatives and they are finding our program. We designed the service to put businesses back in control of their cards. Using our administrative web site, corporate admins can view employee spending in aggregate, and can determine when, where and how employees use company cards. Each card has an adjustable balance for budgeting, individualized spending and funding rules for control, and reporting of up to the minute transactions for transparency and immediate cash position. Companies account for this as a cash account, appearing as an asset on the books, not as a liability. Funds in the account are prepaid, so credit limits are self managed. Funds can be transferred electronically to and from company checking accounts for maximum flexibility.

As conditions force change in the way business is conducted, it is good having access to tools that fit the times. Even though credit might be tight, companies can still benefit from using cards to keep their books straight, keep employees on budget, lower bookkeeping costs and maximize any access early payment benefits vendors may offer for paying with plastic.

The Changing Landscape of Employee Expense Management

noreply@blogger.com (Toffer Grant) — Mon, 09 Feb 2009 16:49:00 +0000

Due to the current economy - limited available credit and layoffs - we are noticing changes to the processing and management of employee expenses. Traditional methods are under fire as staff members are increasingly uncomfortable with fronting cash for their employers.

Shrinking access to consumer credit is causing weariness among employees about using their personal cards for corporate purchases. Instead, employees have started asking for cash advances. Employers are now having to rethink their positions on:

Providing cash advances. A manual process that, depending upon the amount, could even entail a trip to the bank.
Issuing a corporate check for advances. Also manual and requires days of advanced notice....not possible for those sudden trips.
Issuing corporate credit cards. Perhaps even expanding the corporate card program beyond the comfort level of owners and executives.

The expense reimbursement system businesses have relied upon for so long is being challenged, and the process now requires some thought and adjustment.

Our corporate reloadable prepaid debit card is a perfect solution! Now, employers can provide cards to employees that do not qualify for the corporate credit card program. Online tools make tracking spending easy and we eliminate the risk and safety issues of providing cash. You can manage spending closely by setting merchant and spend limits per employee, or for trusted employees, let them track their own card balance using our cardholder website. Funding cards is easy and can be done quickly using our online tool.

While it is difficult to accept that things are changing all around us, we, as business owners, need to embrace new ideas to help us grow our business.

General Spend Prepaid Cards: Ouch, That Smarts!

noreply@blogger.com (Pamela Kozak) — Thu, 05 Feb 2009 18:25:00 +0000

We got a call from a business owner who found us via web search (we love to hear that!). He is currently using a general spend reloadable prepaid debit card product to manage petty cash. General spend cards service the "underserved" or "unbanked" community. Which means, they provide a card option for consumers who do not have a bank account and/or are unable to get a credit card. General spend cards are a bad option for business owners, here are a few reasons why:

Transaction fees. They charge a fee for every transaction.

Load fees. This particular business owner told us he was paying $5.00 for every card load. He says, "that is just not economical!"

Cash access. General spend cards are for consumers that need ATM and cash access.

No transaction oversight. Some cards offer a website for the cardholder to review transaction and balance history. But, what about the business owner? No access to transaction history.

On the flip side, we can help this business owner by offering him:

No transaction fees. Use the card as often as needed.

No load fees. Add and remove money from cards as much as you want, it's free!

No cash access. We do not supply the cardholder with a PIN. The card cannot be used to get cash from ATMs, merchants or bank tellers. The card is for signature purchases only.

Spending oversight. Review every transaction for all cardholders using our administration website. The money belongs to the business and the business owner need to see where it's going - in real-time.

Our corporate reloadable prepaid debit card is the economical option for business owners who want to effectively manage petty cash. Leave the general spend cards for consumers.

Reloadable Prepaid Debit Cards: Teen Cards Are For Teens!

noreply@blogger.com (Pamela Kozak) — Wed, 04 Feb 2009 21:20:00 +0000

Now that we have had an opportunity to talk to some small business owners on the phone, we are hearing their stories about trying to run their business using consumer reloadable prepaid debit cards. One of our new customers was using a teen card product. Teen cards are not for business spending. Here are a few limitations he discovered:

Low max card balance. Teens aren't using cards for travel expenses, so capping the card balance at $2,000.00 makes sense. But as a business owner, having to work around that limitation is tough.

Spend limits. Limits are a great idea, but the business owner should control which employees need them. Spend limits on a card for a trusted employee can be frustrating.

Limited card reloads. Businesses spend....a lot. As a business owner, you need the freedom to control card loads. Only you know when and how much your employees need to spend.

Tools are meant to solve problems, not cause them! Teen cards for business is just the wrong tool for the job. That is why we created a corporate reloadable prepaid debit card. We are helping our customers by offering:

A business reloadable prepaid card with a $10,000.00 max balance.

User defined spend limits. Create spend limits for employees that need them and give trusted employees unfettered access to their card balance.

Unlimited card reloads. Move money when you want, 24/7/365.

We are helping our customers to manage petty cash efficiently... it's the right tool for the job.

Prepaid Cards and Business

noreply@blogger.com (Toffer Grant) — Mon, 02 Feb 2009 21:09:00 +0000

The use of prepaid cards for business purposes has steadily increased and broadened throughout the last ten years. Prepaid cards are ideal for business, because they:

Decrease the risk of fraud inherent in cash and checks
Reduce the cost of check distributions
Reduce the cost of check replacements
Provide an audit trail of payments and transactions

Benefit Cards

You may be familiar with using prepaid cards connected to your benefit plan. For companies that offer benefits it is commonplace to also have a program called a "cafeteria plan" or "flex plan." These plans allow employees to subscribe a certain amount of pre-tax funds taken from their paycheck and placed into accounts designated for healthcare expenses, commutation costs and child care. The program is maintained by a benefits custodian, some of which offer a card used to pay for insurance co-pays, childcare fees, transit costs and other related expenses. Using a flex card reduces the amount of paperwork employees have to do, eliminating check reimbursements and maintaining compliance with IRS rules. As pre-tax funds are allocated into flex spend accounts, the amount of taxable income is reduced. The net benefit is that employees just pay for services and move on, while reducing their tax bill in the process.

Payroll Cards

Many companies use direct deposit to pay employees. Yet, for certain industries with a large number of unbanked (those that do not have a bank account) employees going electronic may be impossible. To leverage electronic efficiencies, and to move away from the expensive check process involved with payroll, certain industries have seen a strong uptake of prepaid payroll cards. Payroll cards work intuitively: the net pay is loaded onto the card, and the employee can access cash at ATMs or they can make purchases wherever debit cards are accepted. Most payroll cards use traditional card and ATM networks, like Visa® and STAR®. For employers prepaid payroll cards decrease paperwork, and for unbanked employees they provide decreased processing fees at check cashing stores, access to Visa® card and MasterCard® card spending, and the status associated with carrying a card.

Incentives Cards

Paperwork used to be the cornerstone of managing incentives, but no more. Companies have turned to prepaid cards to replace the cash and check processes that used to bog down the system. Additionally, many of the companies that offer incentive cards for business will customize the cards with company logos for added trophy value - transforming the incentive into a reminder item. Programs can run for the long term, requiring a reload component to cards, they are issued once and funds are added when triggered (similar to the way a payroll card works), or they can be single load cards that are issued with a predetermined value and expire when funds have been spent (like a gift card).

Travel and T&E Cards

Your employees feel the same credit squeeze as we all do, so asking them to front the company money for their business travel is turning into a thing of the past. Corporate prepaid cards allow companies to essentially give employees cash advances without the inherent risks of carrying cash. The PEX Visa Prepaid Card is ideal for business travelers, because the cards can be used wherever Visa debit cards are accepted, the online spending controls protect the company against misuse, and there is an audit trail for every transaction.

Per Diem Cards

Managing a per diem program can be wrought with issues: determining the rate for the location of the employee, gathering all receipts, and recouping any leftover funds. Controllable prepaid cards ease the burden of per diems plans by enabling administrators to set daily spending limits, automate balance restoration, and have easy access to all transaction data. And, with the PEX Visa Prepaid Card, there is no need to physically recoup unused funds, because administrators predetermine how much is available to the cardholder per day, which cannot be exceeded and there is no cash access.

Purchasing Cards

Purchasing cards, or p-cards, are typically used to streamline the purchasing process for low-value transactions in large corporations and government agencies. These systems are often expensive to implement, but can vastly decrease transactional costs, strengthen purchasing policies, and provide extensive spend information. Unfortunately, these p-card systems require more resources (human, computer, and financial) than the typical small to mid-sized business can dedicate to improving their purchasing process. The PEX Visa Prepaid Card enables small companies to realize some of the benefits of a p-card program by providing a centralized administrative interface, merchant category restrictions and spending limits, and detailed transactional data.

Corporate Card

Corporate cards are really a catch-all for many types of company expenditures - from small purchases to travel. Corporate cards are often credit cards or charge cards and are subject to interest rate changes as well as credit limits which card companies have been lowering as a result of the credit crunch. Most companies do not distribute corporate cards to all employees, because it is difficult to restrict how the cards are used. The PEX Visa Prepaid Card allows employers to tailor each card, taking into account the needs of the employee and company. And, because the PEX Visa Prepaid Card is prepaid, there are no interest rate changes and cards can have a balance from zero to $10,000.

To find out more about the difference between credit, debit, and prepaid cards click here to read a previous post on the subject.

Differentiating Factors

noreply@blogger.com (Toffer Grant) — Fri, 30 Jan 2009 14:31:00 +0000

When describing our service, one of the biggest challenges is communicating differentiating factors effectively. People are familiar with credit cards, they understand debit or check cards, those who have worked in large companies know what a p-card is. When it comes to our service - we are a blend of all of the above so it takes a moment to realize that there are distinct differences which we created to service small to medium businesses (SMB).

Here are a few of the basics:

1) Prepaid, not credit or debit. Credit cards have an underlying credit line. Each card can be set with an indivudal limit but nothing prevents the cardholder from spending all of it in one go.

Debit cards are linked to checking accounts. Funds are deposited into the account and cards issued share the balance. To issue cards, most banks require that employees sign signature cards authorizing use and also providing check-writing authority. In this case there are multiple access points to deposited funds - other cards, ATMs and checks.

Prepaid cards are independent of credit lines and checking accounts. Cards are reloadable for ongoing use, there is no ATM access, no checks and no credit lines, making the service accessible to businesses that want to control employee use.

2) We segregate all balances - there is a main corporate balance created with a deposit from the company's corporate checking account. Admins disburse funds to cards as necessary to create individual budgets per cardholder. Because all the balances are separate, individual card spending will have no effect on other cardholders.

3) Spend rules are available to automate spend monitoring. Admins can setup card-use profiles according to job function and necessity. Merchant category spend rules automatically block or authorize transactions at approved locations only. Daily spend limits regulate how quickly a cardholder can spend through a budget. For example, a card may have $2,500, be allowed to spend at travel-related locations (airline tickets, taxis, etc.) but has a daily budget of $250 per day for a five day trip.

4) Automated account top ups minimize the frequency of top up requests from cardholders. Certain individuals can be setup to start each day, week or month with a specific budget. Others can be set so that once their balance is low they can have funds added to a max amount as necessary.

5) We post all activity in real time to provide the most up-to-the-minute information on cash position. All spends, transaction holds, etc appear as they occur so an admin can tell what is going on with employee cards and funds on deposit.

~~~

One of the most important startups should do from the earliest point on is clarify the differentiating factors of their service and make them really simple for people to understand. Investors, potential customers and employees need to know what they are getting involved with and have the key points down so they can spread the word.

Business Process Series: Business Continuity Plan

noreply@blogger.com (Pamela Kozak) — Mon, 26 Jan 2009 22:29:00 +0000

A Business Continuity Plan (BCP), sometimes referred to as or combined with a Disaster Recovery Plan (DRP), is the process you will use to restore critical business functions for a determined period of time. In other words, how are you going to stay in business in the event of a disaster?

It seems silly to plan for a disaster, especially if you aren’t located near tornadoes, hurricanes or earthquakes. But even man-made ‘disasters’ can interrupt your business operations…..fires, chemical spills, power blackouts…..

Spend five minutes searching the Internet and you can find piles of information about plans, as well as templates, to get you started. Don’t be discouraged after reading articles about risk assessments and planning committees….there is an entire industry around disaster recovery and, like any other process, it can get very detailed. This is a short article to get you started thinking about the kinds of questions you must document the answers for…. http://www.wikihow.com/Create-a-Business-Continuity-Plan.

While doing research for our DCP, we noticed that many plans didn't address the customer. Keep your customer contact information current, save a copy of it off-site and include your key accounts in your binder. Communication is important across the board, so don’t limit your status updates to just your employees and vendors, let your customers know too!

Marketing a Startup / SMB Online: Plan, Test, Repeat!!

noreply@blogger.com (Toffer Grant) — Mon, 26 Jan 2009 12:54:00 +0000

When it comes to marketing an online service, running several test paths simultaneously and being vigilant about analyzing results are the most important tactics small businesses can take to develop long term plans. When SMBs don't have access to market research, trying things out on a small scale serves as an initial sales effort while also building valuable research data used through the next testing cycles. Eventually patterns and customer profile will begin to emerge and an understanding of how to evolve marketing with changing times and cycles will take root.

Here are some pointers:

1) No matter the medium - telesales, email, key words, traditional media ads, etc. - it is important to test each one with varying ad copy, landing pages, pictures or layout to see which gets the highest amount of action. Understand that when first starting out, there is a fair amount of trial and error that goes into each one. This is costly in terms of time and effort but it is an investment. Pinpointing the target is key prior to spending money on any given approach to market entry.

2) Set a call to action. When first launching, the focus should be on proving the concept. Nobody is going to care about the brand unless its a service they want to use. Brand building develops over length of time + use of the service/product.

3) Set a goal or cut off point to know when to end a test. If its a time period on an ad, or a conversion rate reached - set something that triggers an analysis of the results. The key here is figuring out what works to avoid wasting money, time or effort on things that don't work. It is important to understand the limits of each effort.

4) Create a schedule so that while one campaign is running, work has already begun on the next. The key is to market consistently so there is never any dead air coming from the business.

5) Be methodical so that each test can be evaluated. Setup a tracking spread sheet with columns for "medium," "dates," and "performance." Measure performance based on the call to action or other metrics (unique visitors, etc.) for creating comparable data.

With planning, vigilance, metrics and a desire to keep trying new ideas - the marketing formula will come together and produce results.

Business Process Series: Ideas For Operating with Fewer People

noreply@blogger.com (PEX Card) — Thu, 22 Jan 2009 13:43:00 +0000

As the economy continues taking its effect on business, SMBs and large companies alike are consolidating their work force. For many companies the drop in revenues is the catalyst for cutting operations, finance and marketing staff but it does not necessarily mean the amount of work in those departments drops as significantly. Those who are still there must think of new ways to get everything done with fewer people.

Now is the time to be creative and research services that can ease the burdens of manual process. Services out there can help companies:

Automate or “electronify” tasks actual people were doing, i.e. employee expense management (PEX Card), business expense report management (Expensable) and HR management (Administaff), sales and customer contact and communication management (Salesforce), and email delivery (Constant Contact).
Think about part time service providers who can work on a per-project basis. There is a lot of talent on Craigs List who have been laid off that are willing to work for little money.
Review services you may already use more closely to determine if there are unused features. Sometimes a simple change in how you incorporate a service provider into your business can impact how much is actually required monitoring or managing the service. It may be worth calling a sales person or account manager for ideas – they love talking to people about what their companies do.

When things slow down, it’s a really good idea to make the most out of your services. It may require extra time upfront but its worth the effort.

Business Process Suggestions: Paper Payments and Paper Invoices

noreply@blogger.com (PEX Card) — Mon, 19 Jan 2009 14:10:00 +0000

2009 is a year of change for many reasons. A new President is about to take office, the economy is in a state if flux, and people's awareness is generally heightened as they try to look out for the next few weeks, quarter or create a vision for the remainder of the year.

If your business is generally a fast paced environment and things seem slow right now - find other ways of keeping up the pace so you don't lose momentum. Do an internal audit of your process infrastructure and come up with ways to strengthen the business from the inside out. Here is the first entry a series of "Business Process Suggestions:"

Paper payments and paper file storage: Are physical checks and invoices still a big part of your office process? It may be worth looking into ways to make this more efficient.

Are checks and paper receipts still a big part of your operation? If so, think about centralizing spending - talk with your vendors and ask if they accept credit/debit cards. If they do, then ask if they will discount based on early payment. Pay the invoice early and then leverage the net 30 day terms you have with your credit card company. Or, if you pay with a debit card, you'll see the payments appear on your bank statement more or less right away. You can update your books more frequently in short spurts and keep your files organized to minimize the work it takes to get bookkeeping done - you can download the transactions into your accounting software and monthly reconciliation becomes easier.

Do you get lots of paper invoices and do you have file cabinets stuffed with files? Think about scanning your documents from now on and creating a file system on your hard drive. Electronic files are easier to store and they can be easier locate information, especially by learning to use the search tool in Windows or installing Google Desktop Search which is just like Google online but for your computer only. For example, if you are looking for the invoice number to an order of "cedar lumber," you can open Google Desktop search and type that in. In less than a second, the results will appear as a list in your browser window and you can click to open the file. In some cases what you are looking for may just be in the search results. Google indexes practically anything with text on it - PDF, word, excel, etc. so its absolutely useful. Because its the desktop version, you can keep it private.

This is a huge time saver but it takes time to setup. You need a scanner, which is generally available on any three in one fax unit and the associated software installed on your computer. For faster, larger volume scanning look into a standalone scanner or a copy machine with a sheet feeder and fast page per minute action. Also, take a moment to think about how you want to organize the files on your computer - organize by vendor or client name, by project, etc. This takes some time but once you get rolling, its worth it.

Keep these files backed up - the biggest risk to making the switch to a virtual filing system is what happens if something goes down. There are back up services you can buy with unlimited storage - Mozy has a $5 per month service level for unlimited use. Its absolutely worth it!

Entertainment Series: Driving sales

noreply@blogger.com (PEX Card) — Fri, 09 Jan 2009 15:30:00 +0000

When trying to meet your budget, keeping your expenses in check is only half the battle. You also need to focus on driving sales. Whether tickets or t-shirts, how can you meet your goals and quotas?

The web is your most important tool to increase revenue. You need to determine your online strategy and tactics. Depending on the artist or event you may be able to incorporate something interactive like a blog, ezine, or fan group on your website. This type of social marketing can help draw people to your site, and increased traffic means more sales. On your site you should have various media offerings - mp3, video, or even CDs - available for purchase or sampling, as well as artist or event memorabilia. Equally important is to use the site to inform your visitors about upcoming dates and give them a clear path to purchase tickets.

You can't drive sales if people can't find you, so make sure that you are managing your SEO (search engine optimization). Search engines can't find you if you don't tell them what to look for. Be sure to leverage your meta tags, titles, and headers. Not sure if your site stacks up and need some concrete suggestions? Try the free Website Grader from HubSpot: http://website.grader.com/. If you need one-on-one advice the folks at HubSpot can help you out, or you can Google 'SEO agencies' to find more options.

For more online marketing ideas go to Content Marketing Today: http://contentmarketingtoday.com/

Entertainment Series: Tracking and controlling expenses

noreply@blogger.com (PEX Card) — Thu, 08 Jan 2009 15:30:00 +0000

To stay on budget - and protect your margin - you need to track and control expenses. Unfortunately, it sounds easier than it often is.

There are lots of expenses that are easy to track - you probably have a stack of invoices to prove it. But, in entertainment, there are a lot of purchases and payments made in cash, which is much harder to track and verify.

To deal with the cash problem you can do a few things. First, and most expensive, is to hire an account. This professional will be on location with you and will be in charge of all the financials, like petty cash and sales, and reconciliation. Second, you can use an accounting software package and track the expenses yourself (or designate someone you trust to be responsible for it). This can be time consuming and you need to stay on top of it, but you will have a thorough understanding of where every penny is going. Third, you can use a controllable corporate card. Whether you use credit or prepaid, like the PEX Visa Prepaid Card, it doesn't really matter. What you'll want to look for is a card that allows you to control how employees spend money - by merchant category and amount. The fastest way to implement changes is via an internet interface, so look for a company that is able to give you real-time capabilities - for making changes to an individual's spending rules or reporting.

Once you know what you're spending and how that aligns with your budget, you'll know where you need to start controlling expenses. Maybe it's catering, maybe it's your PAs, or maybe something else. Each situation is different, so we can't spell it all out here, but think of a few ways you can try to rein-in these expenses. For catering maybe you can cut back on name brand sodas. For fuel, maybe you can get a lower grade. The most important thing is to make sure you recoup the excess funds from any petty cash purchase. You already know this, but that's where of lot of the slippage will be.

If you like to see a demo of how PEX Card works, and how it might help your next production or tour, click here.

Entertainment Series: Start with a budget

noreply@blogger.com (PEX Card) — Wed, 07 Jan 2009 15:30:00 +0000

The most important part of making a job profitable is the budget. Without a budget, you won't have a benchmark to measure your progress.

Budgeting is pretty straight forward, but you need to think through every step of what needs to happen and how much it may cost or how much it may earn. Everything from trailers to catering to tolls and tips need to be considered. Of course, there will be some 'miscellaneous' expenses, but do your best to group as many foreseen expenses and revenue streams as possible.

Once you've mapped out your budget categories you can start entering information into your template (QuickBooks and Excel are decent low cost options). Enter all the known expenses and revenues first. You'll probably be impressed by how much you already identified. Now, you'll need to estimate the rest. For line items like PAs or crew, you have a pretty good idea how many you'll need and how much you'll pay them. If you're going to be on the road and need estimate gas expenses, I suggest you use www.mapquest.com. They have a nifty feature that estimates fuel cost when you get directions. And, if you're really on a budget, there's an added feature that lets you avoid toll roads. There's a wealth of information on the internet that will help you estimate - use it, don't just guess.

Also - when making your budget, be sure not to lowball. Sure you want the gig, but underestimating is not appreciated by any client - no matter what industry. I'm a big fan of the worst case scenario budget - all your expenses are high and revenue is low. If you can still make a profit if the worst happens, you're sure to do well.

Here's a good article on tour budgeting - with an example.
http://www.halgalper.com/BIZ_TALK/touroutingpg2.htm

Controlling Spending on the Road

noreply@blogger.com (PEX Card) — Tue, 06 Jan 2009 15:30:00 +0000

Our last few entries have given you pointers about controlling costs driven by your business travelers. Even if you are only able to get one of the ideas rolling, we know that it will impact your bottom line. So, give it a try.

Another way to help you manage expenses is to use a controlled corporate prepaid card, like PEX Card. What we mean by 'controlled' is that you control where, when, and how much your employees spend. You can limit the amount available on the card, the amount they can spend per day, or restrict the merchant categories where they can make purchases.

Here's an example of how it works:
You have an employee who is headed off on a 3 day business trip. They let you - or your PEX Card Administrator - know they will need $190 per day for lodging, $20 for personal meals, and $200 for client lunches and dinners. That comes to $410 per day or $1,230 for the three days.

Now, you log onto the administrative website, load the card with $1,230 and set the daily limit to $410. You can now restrict their card usage to travel/transportation and restaurants. Everything happens in real-time.

When they return from the business trip you can remove the excess funds from their card, and have a detailed account of all their transactions in one place.

The PEX Card helps you keep your employee driven expenses in check by giving you the tools to predetermine when, where, and how company funds are spent.

If you'd like to see PEX Card in action, click here to see our demo.

Controlling Spending on the Road - Entertainment

noreply@blogger.com (PEX Card) — Mon, 05 Jan 2009 15:30:00 +0000

In our past two posts we've discussed expense policy and how to negotiate discounts for your business travelers. Here, we'll talk about client entertainment.

Often most outlandish expenses come from entertaining clients. We've all heard a story or two about somebody ordering a really expensive bottle of wine or dining at the fanciest restaurant in town (with the price tag to match). But, how do you decline to pay those expenses when they won over a new client, or kept an old client from leaving?

I don't think there is an industry which has not been affected by our current financial turmoil. Companies everywhere are tightening their belts, and every department is pitching in to help. Your business travelers should be no different.

Take this time of belt tightening as an opportunity to talk to all of your business travelers. Whether through a PowerPoint presentation, video, or just a chat on the phone - you need to convey that the business needs their help to stay competitive in these tough times. Explain to them that every dollar saved in expenses is like earning $10 more dollars in sales (this is just an example - your numbers may be very different). And, reiterate what's already in your expense policy.

A great way to get your travelers on board is to give them the tools to make it work. The Michelin Guide is an excellent resource. Every restaurant listed has merit, and many are not only yummy and stylish, but inexpensive too. Other favorite places to find great restaurants are zagat.com and opentable.com (they have a new app for the iPhone, which is fantastic).

Client entertainment isn't going away, so you will need to give your team the tools and encouragement to keep it in check.

Controlling Spending on the Road - Discounts

noreply@blogger.com (PEX Card) — Tue, 30 Dec 2008 15:30:00 +0000

In our last post we discussed establishing and enforcing an expense policy. Here we'll look at how to negotiate discounts for travelers.

Most hotel chains, rental car companies and airlines offer discounts negotiated on a company wide basis. This will take some leg work, but will pay off. Here's an example of how to negotiate to get the best deal at hotels.

Review the last 6 - 12 months of expense reports and determine the top three hotel chains where your employees stayed (be sure to note how many room nights for each hotel).
Determine where most of your business travel takes your employees and overlay that with a map of each hotel chain.
Contact your top three hotel chains and talk to them about your needs, your past usage of their hotels versus their competitors (give numbers), and make sure they know that you are going to choose one chain for all of your future business. If you don't have a lot of room nights, don't worry - most will still offer you a discount.
Once you've collected the bids you'll need to do some online research. Check out travel sites, like travelocity.com or orbitz.com and compare your bid to what is being offered online. Also check out the hotel's own website and look at their special rates and discounts. The bid you received from the hotel should be below what you find online. If it's not, call them and try to talk them down.
Choose the hotel which offers a good discount (not necessarily the best), but also takes into account their locations and convenience for your business travelers.

Be sure all your business travelers sign up for the hotel's rewards program, and let them know that they can use those rewards points any way they like. This way your employees will be incentivized to use the preferred hotel.

Of course, there will be occasions when the preferred hotel chain does not have a unit near where your business travel takes you. This is where your expense policy comes into play. Make sure that you have a clear policy that states what the procedure is when the preferred hotel is not available.

Negotiating better rates is not only good for business, it's extremely gratifying. So, enjoy!

Controlling Spending on the Road - Expense Policy

noreply@blogger.com (PEX Card) — Mon, 29 Dec 2008 15:30:00 +0000

They are your face to your customers. They're funny, and nice, and work their tails off to make your company a success. But, man-oh-man can they spend money!

Business travelers can wreak havoc on your budget and drive up your cost of goods sold. Over the next few entries we'll discuss a few easy steps to help you keep spending in check.

If you don't have a written expense policy, write one. If you have an expense policy, and are finding that employees ignore it you need to review it and make changes. One of the easiest ways to make sure your expense policies are adhered to is to have employees sign a document stating that they have read and understand the policy, promise to adhere to it, and recognize if they don't they will face consequences (i.e. non-reimbursement, curtailed travel, reduction in bonus, or even termination).

We have an expense policy template that can get you started or give you a few ideas to improve the one you already have. Click%20here%20to%20download%20the%20expense%20policy%20template.

Budgeting Corporate Funds

noreply@blogger.com (PEX Card) — Tue, 23 Dec 2008 15:30:00 +0000

Figuring out a budget is as necessary as it can be annoying. Some fixed costs are easy and other elements, such as sales numbers, can require a crystal ball. Yet without a budget, even the most profitable business can mismanage funds and fail. A successful budgeting process is one that creates an effective plan requiring the least amount of time spent.

The first step in creating a successful budget is realizing why some budgets fail. Inaccurate forecasting, whether done out of misinformation or desire for personal gains, can stymie any budget process. Harvard’s business school’s publication, Working Knowledge http://hbswk.hbs.edu/item/2647.html, has a great article explaining how this can happen.

This inaccurate forecasting doesn’t have to happen in the first place, and if it does, it can be fixed. A budget that has room for adjustment as the year goes along is more likely to be useful than one that is static. There will be unexpected costs but they can be factored in, as seen in the example of the San Diego Zoo used by CFO.com http://www.cfo.com/printable/article.cfm/4124788/c_4125297?f=options.

Another way to construct a more useful budget is to create stronger connections between the corporate strategy and the budget http://www.cfo.com/whitepapers/index.cfm/displaywhitepaper/11877469. Decide what the organization needs and what doesn’t contribute to the overall plan of the business. This means that the budget is not just being used to document expenses, but to hone in on the most important expenses and weed out unnecessary ones. In this way, budgeting can be a tool for maximizing efficiency.

By planning out how the budget is going to be used, and paring down the process to just what is needed, the budget will be easier to create and use.

Financial Crisis Series: Staying Competitive

noreply@blogger.com (PEX Card) — Mon, 22 Dec 2008 15:30:00 +0000

How do you stay competitive when your sales are stagnant or dropping?

Cutting costs decreases the cost of goods sold - giving you a bigger profit margin.

Increase your marketing efforts. Most of your competitors are slashing the marketing budget and decreasing their exposure - this is your chance to outshine them and gain new clients and customers. Take a look at your website and make sure it's optimized for organic searches (SEO).

Expand your PR campaign to including pitching stories to local newspapers about how your product can help people save money. If you're doing the PR yourself - this is free.

Improve your product to make it more attractive to customers. Have the product development and marketing teams determine which improvements will make the most impact in the marketplace and to the bottom line.

Don't shoot yourself in the foot.

Don't decrease your customer service to the point where customers can feel it.
Don't put off equipment maintenance (repairs are more expensive by far).
Don't decrease the quality of your product.

We hope you've found this series to be helpful. If you'd like to share tips of your own, please send us a comment.

Financial Crisis Series: The Credit Issue

noreply@blogger.com (PEX Card) — Fri, 19 Dec 2008 16:54:00 +0000

Remember when the two things that crowded your mail box were catalogs and credit card offers? Have you noticed how few card offers there are these days? I'm sure all those trees are happy, but for the rest of us it's proof of what we already knew - the credit crisis has affected us as well.

We've been hearing it from our customers and reading about it in the papers - businesses are moving to a cash model to pay for regular expenses. They want to conserve their credit line for important things like emergency repairs for equipment or an upgrade that will make them more competitive.

The big question is - how do you make this happen?
If you're a small company, with less than 100 employees, you are at the highest risk to fraud and abuse (http://www.acfe.com/resources/view.asp?ArticleID=9), and must take additional steps to protect yourself. So, moving to a cash (or same as cash) system may seem unwise, because these are inherently riskier forms of payment (http://www.afponline.org/pub/pdf/2008PaymentsFraudandContolSurvey.pdf).

As someone who works for a prepaid business card company, I know that prepaid cards can help bridge the gap between controlling payments and a cash based system. Here's how it works: in advance of purchases you load the card with funds. In the PEX Card system, you can decide what merchant categories are allowed, how much is on the card, as well as a daily spending limit. You can also cancel or block card usage at any time. The PEX Visa Prepaid Card can be used wherever Visa debit cards are accepted, so making purchases is convenient. When purchases are made, you can see them posted in real time. Additional features to keep your company safe from fraud and abuse, include separation of company funds and card funds, ability to remove excess funds from cards, as well as no access to cash advances or ATMs.

If you do use an actual cash or check model, you need to set up regular controls and audits to ensure that your system is the least susceptible to fraud as possible. We suggest hiring a certified fraud examiner to audit your current process and suggest places for improvement or additional control mechanisms. We also suggest that payment paths are separated, so that one person is not responsible for everything from request to payment. And lastly, when employees go on vacation, be sure to review their work - especially those in financial positions. If someone refuses to go on vacation - insist they do. It is often the people who seem to be the most dedicated that are your biggest threat.

Click here if you'd like to see a demo of the PEX Card administrative interface.