Business and Finance Corner

Archive for June, 2010

Doing business through online media is increasingly becoming a choice, because the capital and operational costs are relatively small. You also are not bound by time and place, so that it can do other work without having to wait with the product you are selling.
To facilitate customers in accessing the website, you should note the following:
1. Excessive site design. It is legitimate to use animation, music, graphics, the site, but not too much. Based on the research, people were more interested in simple site. Decorations that are too crowded will slow the site functions. Remember, Internet users are busy people, who want to get information quickly.
2. Filling the site with links or text that has nothing to do with the business. This will make visitors lazy to visit your site. The lyrics also do not be excessive. Sparingly, in accordance with the purposes of business or goods offered.
3. Creating a site that does not look professional or carelessly. In the online world you have less than 20 seconds to leave a first impression in the minds of visitors. Take advantage of the narrow time best.
4. Make potential customers confused. If too many buttons in the site, the visitor becomes confused. Moreover, if the buttons were scattered everywhere. Use only basic instructions or simple that is already proven to be effective to guide visitors.
5. Putting your contact info in a place hard to find.
6. Rarely update the information. This is the biggest mistake of doing business online. Developing the business world at any time and you should be able to compensate. Update information periodically, at least once a week, ranging from photos, price, to other information about the goods offered.
7. Using a splash page. Splash page is the start page contains a logo that must be clicked in order to get into the site. This page is quite confusing for many Internet users.
8. Require visitors to download a particular feature. Do not install this feature so visitors can access information. Many people consider this a waste of time.
9. Does not provide clear information if the prospective customer must complete a specific form before making a purchase.
10. Send spam. Spam is a form of an e-mail that is sent to many people without being asked. It’s annoying. People will feel their privacy violated.
11. Changing the site address. Mutually address of the site will make you look inconsistent, let alone without notice. Customers so it should be looking for you again, or they think you’re out of business.
12. Ignored the competition. It’s better if you focus your efforts to market, but do not let you miss from other competitors. You should note the efforts of competitors and develop your own strategy.
13. Merchandise mix is irrelevant. You are selling cookies and clothes pregnant. Two things that have nothing to do. Customers will be confused, you actually want to sell something? If you want to sell more than one type of goods, make a different site.
14. Creating a business category, name, or keywords that are too general. When this happens, you can lose to other entrepreneurs.
15. Use your creativity to make something different, but do not also create categories that are too specific. For example selling “roasted venison dumplings spicy sweet flavor.” That’s a poor example.
16. Location to do business at home, does not mean you do not need to get a business license. Enroll and do not forget to pay taxes because of this liability.

Online business is now increasingly an option, as capital and operational costs are relatively small. You also are not bound by time and place, so they can do another job without having to wait with the product you are selling.

Since the buyer did not meet directly with you, they must pay the item via bank (wire or via credit card). You also must provide the goods through delivery services. Therefore, banks and freight forwarding companies into two partners who must-have when it pioneered this business. Now, how to determine who is eligible to be this partner?
Bank
There are two methods of payment for online business. First, cash on advance (paid in advance). This means that buyers pay in advance, before the goods are delivered. Both are cash on delivery (payable when goods are received). That is, buyers pay after the goods are shipped. Choose whichever you deem appropriate. However, employers should select an online cash on advanced methods for anticipating the occurrence of fraud. Not until the order has been shipped, but the payment is not received as buyers fled.
Notice your name listed on the site. Must be complete and clear, according to the name listed at the bank. If there is only one mistake in writing the letter, the payment will not be accepted, and this will slow the process of buying and selling transactions.
Avoid using PayPal (credit card transactions using the internet). In addition to often not safe, it is also considered less practical by the buyer.
Delivery service
Select a delivery service company that has a good network all over Indonesia, such as Tiki, DHL, Postal, FedEx, and others.
You’ll also be working with freight forwarding companies to get a special price. Select a delivery service company is also not too far from your home or place of business. This will make it easier when making a delivery of goods. When delivery of goods in progress, you have to keep in touch with the delivery service company. So when the buyer asks things yet to come, you can give a satisfactory answer.
Prices of goods should be adjusted for shipping prices and vice versa. Do not get shipping price far above the price of goods. For example: the price of USD 80 thousand. If a buyer willing to bear the shipping cost, do not be a problem. But if not? You will lose money.

Nowadays, debt is so common for us. There are many finance institution which offers a debt. The condition of our economy today is forcing us to choose the loan as our financial solutions, but carefully in choosing a debt. You have to find a company that offer consolidation type services. Then you have to know which credit card debt consolidation is good and which ones are not. There are many people around the world who have chosen credit card consolidation companies. But you should be wary of companies that offer immediate debt relief or repair bad credit in a few days. It is worried that it is merely a fraud; therefore you need to know which companies are really good. You could look into the company’s history or financial records to find the reliable information.

Besides, you can also looking for reliable debt settlement companies. To find it is not easy but you can try to do the same method as explained above. When it comes to personal debt, it can be quite overwhelming. If the amount of personal debt seems insurmountable, then it might be a long time for a debt settlement company or a debt management program. Debt settlement companies will contact creditors on behalf of the borrower and try and negotiate a lower payment by getting a reduction in principal, reduction in interest rates or both.

There are a number of debt solution programs, and a variety of companies, that you can turn to for help in overcoming your debt problems. Debtfreedestiny.com finds and ranks the best debt relief programs available today. You can choose a reputable debt relief companies in this website.

It was hard to believe if any man in this world which is free from bondage of debt. For instance, buying a home in need of funds so that forces us to get into debt. Not to mention the cost of school children to college. Often, these conditions make difficult to escape from the hands of debt. How do I fix this?

The good debt
Talking about debt, ideally not reach 36 percent of your gross income. And, this benchmark is usually viewed by the bank when it will lend money to spend, put it to the house.

However, it is also wise if you stay out of debt because it means that all earnings will be sucked in to meet the needs of big budget so there was no reserve fund for emergency purposes.

If so, what should be done by couples when faced with debt?

First, know what is meant by good debt and bad debt. Definition of good debt is anything that you need, but can not be obtained, except by selling all assets.

Examples of good debt is to buy a home. The reason, less likely to pay off the purchase of homes at once. But do not be too ambitious in buying dream home, make sure you have calculated in financial terms during the installment lasts. Clearly, the lower your loan, also shorter time installments.

Beware of bad debt
So, what is called a bad debt? He is a good or service that is not really necessary, but you want it, when earnings did not suffice. Characteristic is usually purely for instant consumption, making your net income shrinks, removing the possibility for investment or a bigger income. Worst cases of mismanagement of this case is the use of credit cards that are usually high-interest.

If you do not want bad debt, which must be done is simple, namely to know where the analysis of spending patterns and that’s not important or not needed. For example, when I went shopping for a monthly, you are often tempted to buy an electronic device or accessory, which does not need to be purchased. Avoid this habit to establish intent or a detailed list of groceries from home.

Divert also mindset when shopping. Do not think, “I’ve worked hard, I deserve to buy clothes for many millions or beach vacation to X which cost tens of millions”. But in fact, your credit card debt has soared, reaching millions. Would not be better diverted funds to pay the mortgage?

It is not allowed, you know, use a credit card. However, a better use for the needs of large or sudden. Like when the ill family member, a credit card could be used to pay for treatment advances in hospital while waiting for the fuse of health insurance claims.

Do not forget to always pay credit card bills. Try to pay higher than minimum payments, yes. However, it is better if you prioritize paying credit card bills with the highest interest and specify a limit on payments per month without disturbing the other primary needs.

There are still options
So what if the debt has been climbing, is it too late? The important thing is do not panic because it will not solve the problem, even complicate. Stay focused on main goal, ie pay it off.

Although it took a long time and have to sacrifice some secondary needs, in the end all for your good, right? Do not also continue the habit of debt, no need to panic if you see something you want to buy. Always think carefully, whether you really need it? If yes, you can save money or if you are saving less reliable, just follow the program in a bank savings plan.

Finally, it must be noted that basically is not how much fresh funds owned, but is there a way to make your money “work hard” so that it can generate more money as investments.

It has become a common phenomenon that many of our colleagues, or the people around us who often complain that their messy financial condition. Financial planning is actually an essential activity that must be done by everyone and this is what will differentiate between groups of people who always stuck by the lack of liquidity and a group of people who can enjoy life.

1. Diagnose the financial condition
The first step that needs to be done in preparing the financial plan is to diagnose the condition of our current personal finances. Must be considered in diagnosing the financial condition is the amount of total revenue, total expenditure, the amount of assets and liabilities are debts that we have.

Real asset is anything that gives the results or our support of productive activities. Simple example is the house we live in and the vehicles that we use can be classified into an asset because it supports our productive activity, while the villas, stereo sets, acoustic guitars, golf clubs and a second vehicle which we rarely use, certainly not an asset category. Savings and investment is one of the real intentions yielding assets.

Debt is a common thing done and really not something to be feared. Debt is essentially adding our purchasing power by appealing to our revenues in the future into the present.

Matters more in terms of debt is the type and amount of debt repayment obligations that must be our responsibility. Home loans and productive vehicle is clearly a type of debt is reasonable and can be tolerated, but credit card debt is a type of debt that absolutely must be avoided. Interest rate credit card debt reaching an average of 35-48 percent per year and this is clearly a burden our financial liquidity.

2. Own Emergency Fund
The second step in preparing the financial plan is to check the availability of emergency funds that we have. Emergency fund is a fund which should be available at any time if unforeseen expenditures arise.

The amount of emergency funds to be held in the financial planning varied, ranging from 5 to 20 times our total monthly expenditure, depending on the load that we bear. When we were still single, then simply have a five-month emergency fund total expenditures, while more and more members of our family, the greater the emergency funds that we must prepare.

Types of investment options for an emergency fund is an investment which are liquid and have a level of investment risk is relatively small. Investment in an emergency fund is not for the purpose of growth but rather on the availability at any time and are not cracked by inflation. It must be realized that the size of this emergency fund should be increased in line with the increase in our standard of living.

3. Make a List of Expenditures
The third step in preparing the financial plan is to create a list of expenditures. At this stage the absolute do is check for this type of expenditure which we live.

Broadly speaking the types of expenditure can be divided into four sections, namely the obligation to pay debts, routine expenditures such as household expenses, electricity, telephone, etc., investment and personal expenditure.

Must be clearly distinguished between routine expenditure and personal expenses. Routine expenditure is the kind of expenditures that absolutely must be done to support our productive activity, could not be saved without degrading the quality of life and can not be avoided, while personal spending is the kind of expenditures that must be sacrificed if there is a decline in income.

Investments must also be a priority in the allocation of “expense” we. This investment is useful to improve our quality of life in the future. Investments will acquire assets that we have and be a source of passive income.

Investment culture should be done early start, how small of our revenues. The amount of the allocation “expense” for the minimum investment is 10 percent of our total revenue. In order for this condition is reached, the allocation of investment rather than from the rest of our income after deducting the expenses, but had been allocated as soon as we receive revenue.

It must be realized that the investments that give high returns but have always had a high level of risk and the risk level should be fixed in accordance with the characteristics of our risk tolerance. The more established the condition of our economy, then the asset allocation in the form of investment must be getting bigger, until, in turn, we can achieve financial freedom if the results we receive from our investment in working assets have exceeded or at least close to the results of our productive work.

Personal spending is the only type of expenditure which may and should be sacrificed when there is an increase the percentage of expenditures in the three headings of other expenditures. Postal delays and reductions in private spending will not reduce the quality of our lives and not harm our financial condition in future.

Once we fix our financial situation then we should enter the fourth step, which is planning a short-term financial goals and our long-term. In determining the short-term financial goals and long-term financial goals should be clearly outlined to be achieved and the range of time to achieve it.

Target goals should be realistic and of course adapted to our conditions. Long-term target and then broken down into short-term targets and strategies for achieving that goal.

One of the most decisive factor of success in achieving financial goals is the commitment and order us to obey pre-determined strategy. Financial planner professional from the banking world can be engaged to organize our financial goals.