7 Critical Business Financing Mistakes

Avoiding the top 7 business financing mistakes is a key component in business survival.

If you start committing these business financing mistakes too often, you will greatly reduce any chance you have for longer term business success.

The key is to understand the causes and significance of each so that you're in a position to make better decisions.

>>> Business Financing Mistakes (1) - No Monthly Bookkeeping.

Regardless of the size of your business, inaccurate record keeping creates all sorts of issues relating to cash flow, planning, and business decision making.

While everything has a cost, bookkeeping services are dirt cheap compared to most other costs a business will incur.

And once a bookkeeping process gets established, the cost usually goes down or becomes more cost effective as there is no wasted effort in recording all the business activity.

By itself, this one mistake tends to lead to all the others in one way or another and should be avoided at all costs.

>>> Business Financing Mistakes (2) - No Projected Cash Flow.

No meaningful bookkeeping creates a lack of knowing where you've been. No projected cash flow creates a lack of knowing where you're going.

Without keeping score, businesses tend to stray further and further away from their targets and wait for a crisis that forces a change in monthly spending habits.

Even if you have a projected cash flow, it needs to be realistic.

A certain level of conservatism needs to be present, or it will become meaningless in very short order.

>>> Business Financing Mistakes (3) - Inadequate Working Capital

No amount of record keeping will help you if you don't have enough working capital to properly operate the business.

That's why its important to accurately create a cash flow forecast before you even start up, acquire, or expand a business.

Too often the working capital component is completely ignored with the primary focus going towards capital asset investments.

When this happens, the cash flow crunch is usually felt quickly as there is insufficient funds to properly manage through the normal sales cycle.

>>> Business Financing Mistakes (4) - Poor Payment Management.

Unless you have meaningful working capital, forecasting, and bookkeeping in place, you're likely going to have cash management problems.

The result is the need to stretch out and defer payments that have come due.

This can be the very edge of the slippery slope.

I mean, if you don't find out what's causing the cash flow problem in the first place, stretching out payments may only help you dig a deeper hole.

The primary targets are government remittances, trade payables, and credit card payments.


>>> Business Financing Mistakes (5) - Poor Credit Management


There can be severe credit consequences to deferring payments for both short periods of time and indefinite periods of time.

First, late payments of credit cards are probably the most common ways in which both businesses and individuals destroy their credit.

Second, NSF checks are also recorded through business credit reports and are another form of black mark.

Third, if you put off a payment too long, a creditor could file a judgment against you further damaging your credit.

Fourth, when you apply for future credit, being behind with government payments can result in an automatic turndown by many lenders.

It gets worse.

Each time you apply for credit, credit inquiries are listed on your credit report.

This can cause two additional problems.

First, multiple inquiries can reduce you overall credit rating or score.

Second, lenders tend to be less willing to grant credit to a business that has a multitude of inquiries on its credit report.

If you do get into situations where you're short cash for a finite period of time, make sure you proactively discuss the situation with your creditors and negotiate repayment arrangements that you can both live with and that won't jeopardize your credit.

>>> Business Financing Mistakes (6) - No Recorded Profitability

For startups, the most important thing you can do from a financing point of view is get profitable as fast as possible.

Most lenders must see at least one year of profitable financial statements before they will consider lending funds based on the strength of the business.

Before short term profitability is demonstrated, business financing is based primary on personal credit and net worth.

For existing businesses, historical results need to show profitability to acquire additional capital.

The measurement of this ability to repay is based on the net income recorded for the business by a third party accredited accountant.

In many cases, businesses work with their accountants to reduce business tax as much as possible but also destroy or restrict their ability to borrow in the process when the business net income is insufficient to service any additional debt.

>>> Business Financing Mistakes (7) - No Financing Strategy

A proper financing strategy creates 1) the financing required to support the present and future cash flows of the business, 2) the debt repayment schedule that the cash flow can service, and 3) the contingency funding necessary to address unplanned or unique business needs.

This sounds good in principle, but does not tend to be well practiced.

Why?

Because financing is largely an unplanned and after the fact event.

It seems once everything else is figured out, then a business will try to locate financing.

There are many reasons for this including: entrepreneurs are more marketing oriented, people believe financing is easy to secure when they need it, the short term impact of putting off financial issues are not as immediate as other things, and so on.

Regardless of the reason, the lack of a workable financing strategy is indeed a mistake.

However, a meaningful financing strategy is not likely to exist if one or more of the other 6 mistakes are present.

This reinforces the point that all mistakes listed are intertwined and when more than one is made, the effect of the negative result can become compounded.

Better business financial planing

Chauncey Penfold

337-856-9461

3 Women Starting A Small Business

Starting a small business ranks close to having a child in the “major life event” category. This can be one of the most stressful times, but if done right, it can also be one of the most rewarding things in your life. Some might think that to start your own business, you have to know everything. One thing that you can have something help you with is marketing and advertising.

This is a very complicated part of any business and if the average business owner thinks they know everything they need to know about this, they are kidding themselves. When someone has a heart problem, they go to a specialist. This is how you should treat your small business marketing. Using an Ad Agency could be one of the smartest things you could do to help ensure your business does not fail.

It is well known that 80% of all businesses fail within the first 5 years. How many of those millions of heartbroken owners could have been part of the 20% only if they would have not been a “know it all” and asked the experts for help in areas they didn’t have an idea in. Throughout the years of running an Ad Agency, we have never had a client spend more money with us than if they would have done it alone. In a majority of cases, they actually have saved thousands of dollars with us. This is for a few reasons. One is the enormous buying power good Ad Agencies have.

We can buy in bulk and pass the savings to all of our clients. Ad Agencies also have more negotiating power. Going into a buying process with 5-10 clients at one time can give us a huge advantage in negotiating power. One thing that new and existing business owners fail to do is create an actual advertising marketing plan for the year. This can be done at any time during the year and not just January first.

Create a plan for the next 12 months based on your target audience and your budget. We never come to a client and tell them how much they should spend for the year. We take your budget and create a plan for you, at a price you can afford. We handle over $38 million in advertising dollars every year, but we service the $5000 startup or the $100k budgets. Any and all are welcome to participate in our programs.

To your Success

Chauncey Penfold

337-856-9461

skype chauncey.penfold

3 Million Items and Counting, Bidville Becomes Big Business

Since their introduction, online auction sites have been making e-history as some of the most popular destinations on the Internet. From designer-label clothing to grandmas jewelry to cars and even houses, anything and everything imaginable can be auctioned off online.

Since their introduction, online auction sites have been making e-history as some of the most popular destinations on the Internet. From designer-label clothing to grandmas jewelry to cars and even houses, anything and everything imaginable can be auctioned off online.

People who place items for sale on auction sites are attracted to the prospect of building a business from home with no morning traffic jams and little required capital to start. And bidders are drawn to the unique shopping opportunities and the potential to purchase hard-to-find items from all over the world.

Increasingly, buyers and sellers are discovering the unique benefits of using emerging sites rather than the giants of the industry, such as eBay. Bidville.com is one such site that has been quietly gaining momentum in the wake of eBays ongoing fee increases.

Bidville started in 1999 primarily as a sports card auction site, but began expanding its merchandise base in late 2003 to take advantage of burgeoning market opportunities. Throughout 2004, its membership base increased to nearly 1 million members and the number of items listed daily reached 3 million. In addition, the site now has more than 600 storefronts that sell anything from collectibles to electronics at a fixed price.

Bidville markets itself as the alternative auction site because it does not charge listing fees. Rather, sellers pay what is called final success fees after their items sell. These fees, at no more than 5 percent of the selling price, are lower than what other sites charge.

So what is the key to Bidvilles success? The company is striving to expand its growing community of loyal members and makes it a policy to give them personalized attention. While most auction sites answer questions with an automated reply, Bidville has live customer service representatives who respond to all queries within 24 hours.

Some thing new

Chauncey Penfold

337-856-9461

skype chauncey.penfold

3 Easy Ways To Make More Money This Year

Successful business owners all have one thing in common, they are never satisfied with sales levels. Whether you are making $10,000 a year or $1 million a year, there is always a possibility for growth.

Growth only comes when you realize it can happen. You will not grow if you are content or can not see the future possibilities for growth.

Here are three easy ways that you can transform your business from the level it is at, into a profit making machine.

1. Always track statistics

This may seem obvious, but most people never do it. You should always track and gather as much information as possible. Track walk in customers, track purchases, evaulate marketing, monitor amount of purchases, frequent vistiors, non-buying prospects, etc.

With this knowledge you will be more informed as to how you marketing dollars are doing and where you can increase production.

2. Find people you can trust

For my websites I have one person that writes nearly full time for me. I can send her topics for articles or websites, and she does the research and writes well thought out articles. I can pay her in advance and know that she is going to be there when I need writing at the last minute.

You definitely need people you can trust as well. These people may be your managers, family members, or just friends who can help in a pinch.

3. Develop your passion

Sometimes I need to take a drive through the country to remember why I love what I am doing. It is easy to get caught up in the fray of customer service and deadlines, but for me the most productive time is always when I am out of my business element. Use this time away to revive your passion.

Next time you are thinking that it is not possible for your business to make money, remember and put these 3 easy tips into practice!

Growth only comes when you realize it can happen. You will not grow if you are content or can't see the future possibilities for growth.

Here are three easy ways that you can transform your business from the level it is at, into a profit making machine.

1. Always track...

Keywords:
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Successful business owners all have one thing in common, they are never satisfied with sales levels. Whether you are making $10,000 a year or $1 million a year, there is always a possibility for growth.

Growth only comes when you realize it can happen. You will not grow if you are content or can't see the future possibilities for growth.

Here are three easy ways that you can transform your business from the level it is at, into a profit making machine.

1. Always track statistics

This may seem obvious, but most people never do it. You should always track and gather as much information as possible. Track walk in customers, track purchases, evaulate marketing, monitor amount of purchases, frequent vistiors, non-buying prospects, etc.

With this knowledge you will be more informed as to how you marketing dollars are doing and where you can increase production.

2. Find people you can trust

For my websites I have one person that writes nearly full time for me. I can send her topics for articles or websites, and she does the research and writes well thought out articles. I can pay her in advance and know that she is going to be there when I need writing at the last minute.

You definitely need people you can trust as well. These people may be your managers, family members, or just friends who can help in a pinch.

3. Develop your passion

Sometimes I need to take a drive through the country to remember why I love what I am doing. It is easy to get caught up in the fray of customer service and deadlines, but for me the most productive time is always when I am out of my business element. Use this time away to revive your passion.

Next time you are thinking that it is not possible for your business to make money, remember and put these 3 easy tips into practice!

TO YOUR SUCCESS

Chauncey Penfold

337-856-9461

skype chauncey.penfold

Summary:

Successful business owners all have one thing in common, they are never satisfied with sales levels. Whether you are making $10,000 a year or $1 million a year, there is always a possibility for growth.

"Tools to Optimize Your Health and Well Being"

Do you want to lose weight and feel better about yourself? The first step towards weight loss and a healthy lifestyle is to develop a plan of action. Start by evaluating your goals. Do you want to fit into your old jeans or keep up with your younger friends in a pickup basketball game? Maybe you just want to feel better about yourself.

After setting goals, you should begin to consider how to make your goals come to life. For most people, a change in lifestyle, through diet and/or exercise, is needed to reach long term weight loss goals. A Chi Machine can make a great addition to your new, healthy lifestyle.

Chi Machines, like the Chi Vitalizer CY-106, provides passive exercise through an elliptical motion that can help to increase circulation and lymphatic system drainage. This can help to eliminate toxins from the body and increase metabolism, helping to make your dietary and active exercise programs that much more effective.

Using a Chi Machine after a long, hard day can help you to relax and keep you from overeating as a response to the stresses in your life. Making a Chi Machine a regular part of your weight loss plan can create structure that allows you to stick to the other parts of your diet as well.

Consider using your Chi Machine for 5-15 minutes a day, either before or after your other exercises or before eating a healthy snack. A lack of exercise and increasing weight can become part of a never-ending spiral. Using a Chi Machine can help you to increase your anabolic metabolism and decrease catabolic metabolism.

Catabolic metabolism is a negative force that can inhibit weight loss and contribute to the negative spiral of weight gain and poor health. Read more about Anabolic and Catabolic Metabolisms at AllAboutMassagers.com. Creating a routine and sticking to it is the most important aspect of weight loss success and a Chi Machine can help you achieve your goals and begin a new, healthy lifestyle.

To your success

Chauncey Penfold

337-856-9461

skype chauncey.penfold

Increasing Your Online Marketing

Online Marketing has become essential in todays world as the world is improving and the companies are finding new methods to do their business. Many companies are finding new ways to do their business. Everyone thinks of improving their sales with an online marketing business. So below are some tips to help you implement the new method to increase your sales business.

Many of them concentrate on their business during online marketing. They do not think that customer may need something other than their product. If you are really interested in increasing your sales, try selling the backend products. Find out whether customers require any other products and sell them from your Website. Your sales will be increased from 30 to 50 percent by this method.

One fine example is I have buyed the book from Amazon many days ago, I got the mail from them about the new book that they have placed on the website. I just visited the website to give it a trial but when I saw the book, it was amazing and buyed that from amazon. As many customers might be interested in other products. One more example I can say is home shopping through online marketing, I have buyed one product from them many days ago still also they will be sending the news about their new products and discounts. If I found the product at best price, I always buy from them, checking frequently to the websites.

If you sell a wide range of products to the existing customers, then I am sure that your business will be growing as the existing customers hold long relationships and we have already gained their attention. You have already built your trust in them, already closed the first sale and they know that you will be sending the product on time. New customers will be always their but maintaining a relationship with the existing customers is always important as they improve the sales. If your product is not the replaceable one then this is the best thing to add backend products which attract the customer.

Hope this might had given you a lot of information on increasing the sales. Definitely I will say that, if you add more products to your online marketing website then your sales will increase faster. This is one of the very best methods to increase the sales of your company.


Increasing Your Online Marketing

By: manipadisetti

Article Source: articlesnatch

7 Key Tactics for The Small Business Owner

For most folks, owning your own business is a dream come true. The freedom of being your own boss and succeeding to the best of your ability are facts of life for the small business owner. Sure, there's more stress than what you probably imagined when you were creating your grand plans, but with a little strategy and planning you can overcome any tough spot you get in. There are 7 tactics developed by successful marketers that are sure to make your business as successful as theirs.

1. Create A One of a Kind Selling Point

If you want to stand out from the crowd, create a unique selling proposition that stresses the benefits the customers will receive from doing business with you. Will they get faster service? Go ahead and dramatize it, but keep the customer at the focus..."Get free overnight delivery!" Hey, it tells the customer...you get quick service and a discount on shipping. Two definite benefits in one statement.

Why should someone buy from you and not your competitor? I hate to deal a blow to your ego, but it really has nothing to do with you , your product, or your service. Yeah, its a little self-centered, but customers are attracted by offers that point out the things that benefit THEM.

Don't go out on a limb to create new products and services to get attention. Just, add a special benefit to the ones you already have... maybe it's quicker service. The most effective things to emphasize are benefits that your competition cannot or is not willing to give.

2. Use Testimonials

Hey, we all know that business owners think their product or services are the best thing going, but it's what the current customers think about it that really matters to your prospective customers. They're the ones who see things from their point of view... what they have to say about the business has an impact.

Testimonials play an important part in advertising - especially for small businesses. Yeah, big businesses with well-known names don't have to worry about it, but small companies can use testimonials as marketing tools to build credibility.

Think about it...how else can we gain credibility than by creating a group of satisfied customers and shouting what they have to say? Let's look at some ways we can make testimonials an effective part of our marketing campaigns.

3. Upsell

Upselling is one of the most successful marketing trends today. Everywhere you go, someone is trying to get you to buy more. From McDonalds with its supersize options to clothing stores that try to sell you shoes to match your outfit, everyone's jumping on the band wagon. Why? It works!

Your customers already know that you have great products and provide satisfactory service. They trust you to come through for them. Think about it... it's much easier to make sales to someone you already have a relationship with.

Use every opportunity to increase your sales volume within the customer audience you already have. Do you have a product that goes with the one they are purchasing? Offer it to them at the register. It's a proven and effective method for increasing sales. You may be shocked at the additional sales you can generate from those who are already buying from you.

4. Make Your Price Seem Smaller

Divide and conquer... The old war tactic works in marketing too! When the price seems too steep, break it down into "buyable" size bites. An $120 item is only 12 low monthly payments of $10. A $365 purchase would only cost $1 per day. Now that sounds affordable!

5. Paint The Benefits Pretty

Customers buy because they want to enjoy the benefits of the purchase. A lady might buy a dress because she wants to feel sexy, or a man will buy a book because he finds pleasure in reading. Emotions are the key element that drives purchases.

Use word pictures to stir up the emotions that will instigate the sale. Let them "feel" the benefits, and they'll be more apt to head for the cash register. Put them where you want them.

6. Create Attention Getting Headlines

Are you ready to capture your reader's attention with great copy? The headline is the place to start. How often do you scan the newspaper's headlines before you decide whether or not to read the article? Yeah, that's where we lose or gain the reader's interest, so it's a pretty important part of the advertisement.

A good headline should telegraph its message in twelve words or less. Double check those headlines. Do they make a promise of a positive benefit, or ask a provocative question? Don't settle for less than attention grabbing statements.

7. Provide An Offer They Can't Resist

Is your deal too good to pass up? If not, you need to improve it. Hey, I'm not talking about cutting prices even more...you've still got to make a profit. You can make the deal sweeter just by increasing the readers knowledge of the value of the product, or adding bonuses that are perceived as valuable, but cost you little.

Motivate buyers with expirations. Yeah, an open ended offer encourages procrastination...which leads ...yep, nowhere. When the customer knows he has until Saturday to purchase an item he'll pay more for on Sunday, he'll make it a priority to head for your shop.

Chauncey Penfold

337-856-9461

skype chauncey.penfold

Hello, I'm Johnny Cash"- Surprising Lessons For Work At Home Moms

I've unearthed some surprising bits of wisdom for new Moms by listening to Johnny Cash lately. I thought I would share some of these tidbits from the Rockabilly legend.

1) Understand Your Man ...err, target market!

That's right. Do you understand your target market? Are you aware of her needs, desires and driving ambitions? Does your website speak to your target audience? If not, perhaps you should make some changes or your website visitor or customer will be "as gone as a wild goose in winter" too!

2) A Boy Named Sue

Life isn’t easy for a boy named Sue...and life isn’t easy for a Moms either. In your business you will have those confidence killers, dream stealers, fun suckers...whatever you want to call them. You will have people who try to tell you that you can't achieve your goals, that what you try won't work. Don't let them get you down!

Sue's father told him, "This world is rough, and if you're going to make it, you've got to be tough."

How can you get tough in your business?

3) Man In Black- or Branding 101

J.R. Cash didn't don the all black suit because he didn't have anything else to wear. It was his trademark. He wore all black for a reason.

What about you? Are you working on your brand? In a world full of Elvis Presley’s and Jerry Lee Lewis’s, how will you stand apart? And remember, your target market doesn't have to be just like you- Johnny Cash wrote Folsom Prison Blues and connected with inmates when he had never yet step foot in jail!

4) The Legend of John Henry's Hammer

This song has two bits of wisdom:

a) Learn your business and you will succeed

John Henry's Daddy told him to: "Learn to a turn a jack, learn to lay a track, learn to pick and shovel too." Are you learning all you can about Internet Marketing so that you can succeed in your business? Do you reinvest in eBooks, coaching and mentoring, and software like John Henry's hammer?

b) Technology has its place but it can't take the place of humans.

When the steam engine threatened to take the place of men, Johnny proved that in the end, humans are more valuable. Learn to use technology (like auto responders) but remember that your website visitor is a human and inject some of yourself into your marketing efforts.

5) One Piece at a Time

This ballad is about a man who decides to build a Cadillac. He steals one piece at a time from the assembly line "and it didn't cost him a dime". But in the end, it didn't work out exactly like he planned!

Does your website look like a pieced together jalopy? Are you unwilling to spend any money on your own domain and hosting, content with a free site cluttered up with ads?

6) In The Jailhouse Now

Please don't throw away your hard work by doing one of the following things:

Spamming

Copying other people's articles or content

Stealing graphics

Clicking on your Adsense ads

Not keeping records and neglecting to pay taxes

It just isn't worth it, and you may find yourself in the jailhouse. Much better to Walk the Line so you can sleep at night.

7) Ring of Fire

Maybe you've made a bad choice... entered into a shotgun romance with a business that's not right for you. Don't be afraid to realize this, chuck everything and start over! Don't beat your head against the wall if, after working hard on a project, you decide it's just not profitable. Better to find your match and pour your energies into that.

In this song, June Carter Cash chronicles her growing attraction to John. Though they were both involved with other people, they were obviously soul mates and ended up making music and growing old together for the next 40 years.

May you make beautiful music with your business!

Chauncey Penfold

337-856-9461

Skype chauncey.penfold

$3 Million in 6 Months With Adsense!

The Power Play Interviews: Markus Frind- $3 Million in 6 Months

This is the first in a series of Internet Success Stories that you will begin to see on the Power Play Blog. Hope you enjoy them!

Markus Frind, the creator of Plentyoffish.com is a success story worth noting, as he has managed to take a niche formerly ruled by giant corporations and give it his own brand of marketing savvy. A case of David vs. Goliath, where the little guy comes out on top in the end. Markus is the top "individual" adsense publisher in terms of page views. Lets find out what some of his secrets are as he shares some advice with our readers. Feel free to comment!

Markus, what is your experience in computer programming and how did it prepare you for becoming a webmaster?

The average page views a day is around 14 million for the last week. I'm getting another 80 million pageviews a day from users polling the site to see if they have new messages. Really intensive bandwidth wise!

When I go to your website, I notice that the ads are targeted to my region, yet I have not even registered- can you explain to our readers how you accomplish this feat?

I'm just using ip2location.com- Basically I take your IP, look it up in the database and it tells me what your city is. I then bring up a list of users in your city, nothing magical about it at all.

Are most of your visitors coming primarily from search engines (SERPS), or are you finding that they come from other avenues? Do you actively advertise in the media?

Search engines account for something like 2% of my traffic. The vast majority of my traffic, like any other site with over 5 million pageviews a day comes from word of mouth, and repeat visitors.

The services on your site seem to be offered at no cost to the registrants. Is there some advantage you have over your competitors that allows you to do this?

I've developed new algorithms that allow me to create a mega site for next to no cost. Several years ago I created algorithm that was thousands of times faster then the algorithm used in the 1990's to find a string of 22 prime numbers. At the time a professor used several super computers and hundreds of regular computers over the course of several years to find a record. I did the same thing on 1 computer in 2 weeks.

Fascinating! Are there any other sites you currently maintain, or is plentyoffish.com the only one?

Its the only site at the moment. I've got a few other sites I registered for friends so they could learn to do marketing/affiliate stuff. At this point i think 1 site is enough.

Any tips for those looking to create a profitable endeavor on the internet?

IF someone else thinks what you are doing is a cool idea I'd say it isn't... Find something no one else thinks is important and build up a site with big traffic in that area. Also keep in mind, sites that have low monetization today but have traffic may be the gold mines of tomorrow. In the internet world anything and everything will be monetized at some point and traffic is king.

Traffic is King- very wise advice, Markus. One last question- How do you find the time to maintain such a large commodity on the internet? Surely you must have some other interests in life besides programming and website monitoring?

It only takes a hour a day on average, but its very tiring work. I spend the other couple of hours reading and seeing what is going on.

Hope you enjoy the article

chauncey Penfold

337-856-9461