Business and Finance Corner

Archive for the ‘Tips’ Category

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.

Awareness for financial management is very positive, especially if started early

As a first step, setting up an emergency fund or emergency fund first. Emergency funds are the funds needed to meet monthly living expenses until approximately 6-12 months. These funds are necessary if there is something truly emergencies such as prolonged illness or even layoffs.

After an emergency fund collected, then can plan to make short-term financial plans, medium to long term. For example for the short term, aside from the salary scale is for routine needs and savings. While for the short-term financial plan to long, for example, among others, plans to vacation abroad, continue S2/S3 schools, marriage preparation, so plan to buy a home or private vehicle.

The greater percentage of the total salary savings will be better and faster in achieving the plan. On the other hand, if you want to owe, it should be no more than 30 percent of total wages.

If you want to invest, adjusted for risk profile. Do not forget, if we want to invest in high return, of course, will also be a high risk of harm. If you’re still a beginner, we recommend to invest in mutual funds in the past or existing unit-linked life insurance element.

The better our knowledge about the investments, the more we also dare to invest in higher return rate of such shares. For beginners usually a percentage of its investments with low returns (cash) of approximately 70-80 percent and the return of the medium (fixed-income securities) of approximately 20-30 percent of the total funds can be invested. If it still feels less able to provide high return, then you can start to invest in an equity fund of about 10-20 percent of the total funds we can invest it.

There are some things we can do when we / company / business we have experienced something that is causing customer dissatisfaction. Among them:
1) Do not let the occasional look like a simple problem becomes a big problem. If we already know from the start that something that looks small, but later can disrupt the marketing of the product / service. He immediately began to make repairs before the other party to give a sense of dissatisfaction. And if there is party / consumer who does not like the product / service, we must begin to open for improvement. Not only give-denial denial that sometimes it backfired for us. So it will need customer service center so that problems can be resolved early. As well as a more integrated system of course.
2) If necessary (if indeed an error on our part), give an apology to consumers as early as possible. Then we can also provide compensation to existing customers, such as giving discounts, bonuses, etc., that can calm this suasana.Hal to prevent protracted problems that result in a decrease in the image of the product / service that will affect us in our marketing target.
3) Create events that have occurred as a very valuable lesson. Time to make a better system that later can minimize the errors we do not want.

4) Furthermore, we must focus to immediately carry out repairs and providing more positive information, especially to the consumers / customers / our loyal customers. And continue to do follow-up or communication approach with our customers, for example if we have a fairly comprehensive data base, we can give the holiday greeting, birthday and so on with more intensive. Because it can help us retain our marketing in the long term.

For those who want to try but do not have too much capital which could be a franchise business,this is the answer. Surely not just any franchise that you can choose. There are certain tips to choose a good franchise.

A good franchise is a business that is required daily food, beverages, education, salons, garages, retail field. In addition, Investors should be careful in determining to take the business opportunity through franchising. Given the current confusion often occurs between the franchises (franchise) with a business opportunity (BO).

There are two things that are important in determining the regularity of franchise issues including regional zone distribution of franchised units in each region. Is the Franchisor restrict the actors that play in a certain area or not. So there is no rivalry among fellow franchisees. Well, here are a few guides before the vote and took the decision to join the franchise.

1. Do not be embarrassed when confronted with the staff of the franchise business. Even if they have the right to select you, they really need you. Therefore take advantage of the interview sessions with them to dig out the condition of the franchise. They may dig up information about the personality and the financial condition of the investor. You should be able to explore a variety of in-depth information about the company’s franchise operators.

2. Try to identify the background of the company or the entrepreneur, experience, market potential, competition map, as well as the excellence and uniqueness of their product or system. From behind the attacks that interview you can feel their attitudes. Manner and attitude when answering questions you can make a benchmark for their business culture. The more they are open, then it will be better. The more mysterious and closed them, yes even worse. Remember, you will have to exchange information with them.

3. Feel free to investigate the financial condition of the franchisee. Their performance in the past could be a reflection of your business prospects in the future. A good franchisor will not hesitate to share this important information. Franchising is the proper select companies that have produced a profit for years, at least more than three years. Ask also the performance of branches or outlets owned by franchisees long. Are they lucky or even folded. If the lid is why what, so what if a successful recipe. Nothing wrong if you try to dig up information directly from the old first franchisee operates.

4. Select a brand franchise that has been known to the public. Some overseas brand franchise unknown here. But, if their names internationally moncer enough, yes worth considering. So do not be reluctant to investigate their reputation via the Internet or acquaintances abroad.

5. Franchises are not deposits or fixed-interest government bonds. Therefore, do not bet your entire fortune on the business you want to enter. No matter how you intend to follow the franchise, business risk remains. You see, there are many economic factors that are not within the control of the company or any other economic actors, as good as any system and their advantages.

6. Learn and look their best draft contract. Do not hurry yourself nodding and shaking hands sign a deal. Remember, all your rights and obligations listed in the contract documents. So, do not let the contract was only hurt you.

With so many business opportunities around us, how to find the right opportunity? some tips that can hopefully help you.
1. Recognize your talents and interests. Starting a business is not an easy thing. Because it would be helpful if you first identify your strengths. Talents that you have? Are you interested? Two things will help you to filter the various opportunities that exist so you can choose a suitable opportunity for yourself. Therefore, take time to identify themselves first. There is also a good idea you ask for opinions from people close to you so that you obtain a richer perspective.

2. Notice that there are businesses in your neighborhood. To start looking for opportunities, not to far away. You can start by checking your own environment. What efforts are there in your neighborhood? Which businesses are well developed and what is not? By recognizing existing business, you can get a clearer picture of the characteristics of your environment. You also see the wide selection of existing business. There may be suitable for a side business.
3. Consider the needs of the community. Maybe you’ve noticed someone (or yourself) to complain about something. Such complaints are an indication that there is a need that is not answered. Are you able to offer a better solution? If the answer is yes, there is a possibility it was a good opportunity for your business.
4. Read magazines and business books. Do not limit yourself only with what’s in your neighborhood. Reach further by reading the magazines, and books of business. Often you can find interesting ideas in that way. There may be a type of business that has been successfully applied in other places but not in your environment. Maybe you also noticed a new trend emerging. If you’re observant, very probably you will get a good side business opportunities and promising.