Some Useful General Tips For Hiring Travel Agents

Whether you’re planning for a weekend getaway to escape from day to day schedule, a special holiday overseas with friends and family to relax, a trip to your favorite destination or a plan for a new adventure vacation, make sure to plan ahead. Do thorough research for planning your trip as it will help you in understanding the traveling requirements of the place where you want to visit.

For a hassle free planning, it is a good idea to take help of the services of an online travel city guide or a travel agent. A travel agent is one who understands the tour and travel industry and has good connection with travel service providers and help people in planning their trip or vacation. However, never assume that just hiring a travel agent means your task is over. You need to be sure that the travel agent is a good one and offering you valuable services. To help you out, here are some questions that your travel agent must tell you.

• Ask the travel agent about whether the hotel is in good condition and no renovation work is going on at the time of your visit. Plus, the agent must also inform you about the tourist spots that are located near the hotel. Also the total charges so that you don’t have to face with any hidden charges at the last moment.

• The travel agent must be aware of the traveling documents that might be essential while traveling to some particular destination such as your travel insurance papers, visa, passport, health papers, and your prescription and so on. Even you can check travel information online to find out the details.

• Your agent must help you in planning your itinerary. They must guide you and tell you about the pros and cons of any particular place. In case, you need to make changes in the itinerary while traveling, ensure that there are absolutely no charges. This is something that your travel agent must inform you in advance. Otherwise, it will be a good idea to ask your agent to fully explain the restrictions that may appear, on your ticket, to ensure that the planning meets your needs.

• While planning your trip, your travel agent must ask you about your preferences regarding airlines and what type of hotel you would like to stay during your vacation. This is also the most important amongst world travel tips. Most importantly, they must plan everything as per your budget and in case the budget needs to be adjusted, the agent must inform you in advance. It should be never like after doing all the bookings you came to realize that your budget has grown up.

• Also your travel agent must not nag you into anything. In fact they must ask your preferences and work out a customized travel plan for you. This way you can have your preferences and don’t have to compromise on anything that you might not like afterward.

Career in Geospatial Technologies

Geospatial technology is one of the fastest emerging career options in today’s world. Geospatial technologies involves a combination of technologies like GPS, GIS, remote sensing, etc which are used to collect, maps and manipulate information to describe the location and attributes of objects. Students going for this career field help organizations and Companies improve their data integration thereby improving their strategic decision making process.

It has been estimated that geospatial technologies will have annual market revenue of $757 billion by 2017 thereby making it one of the most sought after career in the world. The market is however still to see a sizable force of workers with knowledge in this field. The US faces a shortfall of around 14,000 personnel in this sector per annum.

There are different available careers in geospatial technology and new opportunities are rapidly developing. Analysts, cartographers, surveyors, planners, aerial photographers and mapping technicians are some specialized careers that a student can hope to pursue while studying Geospatial technologies.

So what are the uses of this Technology? Well GPS (Global Positioning System) is used to guide an airplane in runway. The technology uses data received from the satellite for this. Similarly weather forecasters use the technology for remote sensing and arriving at weather forecasts for future days. Mapping tools are used by the Mobile companies based on geographic Information Systems (GIS) to provide their customers with map and directions. All these technologies are a constituent part of the Geospatial technology. As a student of this field, you will be required to collect and manipulate information to describe the location and attributes of objects.

Necessary Skills and Abilities for careers in Geospatial Technologies:

  • Complex problem solving skills
  • Computer/technology understanding and systems analysis
  • Deductive and inductive reasoning
  • Problem sensitivity (identify and tend to existing and possible future problems)
  • Knowledge of: geography, engineering, computers, electronics, mathematics, administration and management, and customer service.

As has been mentioned earlier, this is an emerging career field. A country like India that has 58.6% of its landmass vulnerable to earthquake and over 40 million hectares of land vulnerable to floods annually, the role that this technology will play in the future is tremendous. Universities like the Sambalpur university of Orissa has already started offering courses on Geospatial technology.

Mobile VoIP’s Dependency on Wi-Fi Technology

Many phone users are fleeing from telephone service to the VoIP phone. There is not just one single reason responsible for this migration. There are different things that count into it like; lower calling costs, high data transfer speed, excellent voice quality, portability, more responsive phone system, and a much more reliable phone service. VoIP has no doubt been a great service when compared to the telephone but demands of the customers from the VoIP phone have started to steadily increase as they now want to have a service that is portable in its ultimate sense like a cell phone, which has led to necessitate the mobile VoIP service.

There has been a lot of work done on mobile VoIP to make it a reality from a dream. Earlier efforts were all failed ones, which did not bear any fruit. The biggest hurdle that has always been in the way of spreading mobile VoIP technology is the speed of the wireless internet connection.

Wi-Fi technology and mobile VoIP

Institute of Electrical and Electronics Engineers (IEEE) has worked really hard to bring up new wireless standards that are better in performance and has thoroughly researched on them.

The closest that Wi-Fi technology could earlier get to was the 3G technology which was used to provide the VoIP services on the go. 3G technology had a marked improvement in terms of data transfer speeds that it offered but it still needed a lot more, which it was not capable of. Research and development on Wi-Fi technology finally brought the solution of the 4G technology. 3G was only able to provide the data transfer speeds of 40 megabits per second. On the other hand, 4G technology is much faster than 3G and this is not a miner upgrade but instead a major one. 4G will be able to transfer data at speeds of one gigabit per second, which means 4G is many times faster than the 3G technology.

Many of the wireless internet connection providers have started offering 4G to the customers but it will take time before you are able to enjoy the 4G technology in every part of the world. There is one big problem with 4G and that is its availability in just few parts of the world. This means that you will have to wait to use your mobile VoIP service anywhere you would like to. The wireless network service providers have to face grueling task of investing huge sums of money into upgrading their infrastructure as the current one needs to be upgraded before 4G can be available everywhere. This also is a big challenge for the service providers. Not all companies are capable of making that kind of investment into this technology and secondly not every part of the world has demand for such an expensive technology.

The Travel Health and Safety Mistake That Could Cost Your Company Thousands

Introduction

Workplace health and safety has become commonplace for most companies globally. However, the same basic standards and compliance are conspicuously absent for those whose workplace includes travel. If you want to know more about this mistake that could cost your business thousands if not rectified, then read on. In this article we will look at workplace health and safety, travel hazard identification, travel health and safety in conjunction with the potential business losses. By the end of this article you will have the four basic steps to evaluate your risk and the correction steps to save your business from significant loss.

Workplace Health and Safety

All developed countries have very mature workplace, site or project health and safety regulations, many with stiff penalties for noncompliance. While the overarching legislation provides compliance and standards guidelines, companies are able to apply their own evaluation and measurement of foreseeable threats, following a standardized methodology. This enables companies to benchmark their final results and permits replicatable processes.

Due to this common approach and process maturity, many companies have ventured even further by creating self imposed higher standards such as “no harm”, “zero loss”, “100% safe” and other similar internal campaigns to reduce or eliminate any-and-all injury in the workplace, site or project.

Workplace health and safety is not just practiced in the country of origin but also applied to all their various projects and worksites around the world as a global health and safety standard.

Construction companies have taken this philosophy to the nth degree by displaying at the point of entry to their project, all incidents, days lost, days since last safety event and so on.

Why is none of this applied to travel health and safety?

Travel Hazard Identification

Following on from the workplace health and safety model, activity and location risk registers are typically made before commencement of works and maintained throughout the life of the work activity. When was the last time you saw a travel health and safety risk register or hazard identification register that used a standardized methodology?

If you already have a workplace risk register, documenting the foreseeable threats, naked threat levels, treatment solutions, control measures and residual risk level following all modifier actions, why don’t you have the same documentation for travel health and safety?

If you don’t apply the same process, maintain the same documentation and conduct the same degree of education and communication to reduce the risk, for travel health and safety then you don’t a travel safety program at all. This mistake will not only cost you from a productivity and efficiency perspective but expose you to legal recourse should it be proven you have failed to mitigate the travel health and safety threats of your extended workplace and travel activity.

Travel Health and Safety

Travel health and safety is not an unachievable task. All the steps have been exhibited above. The only reason it has not already been applied to any company travel management program is due to ignorance, laziness, lack of education, lack of resources, over confidence and avoidance. None of which are defensible for companies that suffer loss of life, reduction in people capital, decreased productivity and financial loss.

Due to the amount or time consumed in business travel, travel may actually constitute a majority component of your overall “workplace”. This is particularly acute for companies with high people capital business models, that sees a lot of consultants, academics, professionals or contractors traveling to the client’s physical business site/s from their respective city/country of residence.

Business Loss

You can’t improve what you can’t measure. Travel health and safety should be measured for loss to the business ranging from productivity to direct financial losses. The problem is that because the cumulative losses are rarely identified in a single cost centre or business unit and more likely spread across multiple functions and business units, businesses fail to identify or acknowledge these overall travel health and safety losses.

Tangible losses are one issue whereas the intangible losses are another matter entirely. Reputation, legal, market share, new business, training and development are all plausible losses from foreseeable risk.

Failure to implement a travel health and safety strategy will in time be discovered as a grave mistake and cost the company/business unit thousands of dollars (or more) in losses.

How Brainwave Technology Can Revolutionize Your Life

Brainwave technology has always remained a fascinating field of study that has changed the way people view the human brain in the past. The technology can actually enhance the performance of your brain and mind in such a great way that can lead you to greater success in life.

The awesome technology covers diverse aspects. Technically, it’s also known as brainwave entrainment or brainwave synchronization technology. It’s a wonderful process that triggers brainwave frequencies to engage into several actions when propelled by a periodic stimulus. The stimulus can be aural or visual in nature depending on the particular process being used.

Meanwhile, there are various aspects one needs to know about the brainwave technology. Among them include, brainwave states, binaural beats, and the frequency following response, total brain synchronization, brainwave patterns and so on. These aspects are usually interwoven in the entire study of the technology under review.

Indeed, brainwave technology can actually revolutionize your life. All you need is to discover how this happens. Well, it all begins by applying the principles of the technology in diverse areas of your life. The technology can be applied in diverse areas of the human life beginning with the mind. It can actually reprogram your subconscious and conscious mind for greater success. It can be used in reducing anxiety and stress in life. This is usually possible when the brainwave patterns are gingered into proper action. The frequencies they contain can help a great deal in relieving you of stress and anxiety.

The technology can also help in inducing relaxation. This is usually possible when the alpha brainwaves are dominant during the periods of rest and relaxation. This can also cause a very unique healing process in the life of the individual involved.

The brainwave process can also induce sleep. If you’re having a case of insomnia, the technology can help you deal with it. The frequencies contained in delta brainwaves are usually in charge of inducing sleep especially when perfect synchronization is achieved in the process.

Your life of meditation can also be enhanced when you use the technology. In most cases, the alpha and theta brainwaves are responsible for enhancing meditative states in the lives of individuals involved. The frequencies they contain work wonders during your sleep and relaxation periods. Again, you can enhance your state of consciousness using the brainwaves patterns. This is usually possible when you’re able to master the processes involved.

In order to benefit from the brainwave technology, you need to locate a reliable resource that can give you the best out of it. There are lots of brainwaves CDs and available. You can equally locate brainwaves websites where you can learn the various processes involved in it. You can easily enhance your subconscious and conscious minds when you engage the technology well. Your entire life can also be changed forever when you continue to apply the basic principles contained in the technology. There’s always the need to locate an expert in brainwaves research to help you out in discovering more on how you can change your life with it.

Automobile Safety – Crash Avoidance Technology

The rate of deaths every year due to auto accidents is increasing annually at very alarming rates. According to statistics every year 1.3 million people die from road accidents and 50 million get injured from these accidents. Reducing and possibly preventing these accidents is one of major issues auto- makers have been battling for decades. Auto-makers believe it is possible to reduce the rate at which these accidents occur and safe some lives with the new safety features and technologies been researched and developed for new and existing vehicles. A few decades ago, seat belts were the cutting edge safety technology, with the rate of accidents increasing more innovative safety technologies and measures were introduced. Blind spot monitoring systems, driver alert tracking systems, airbags, anti-locking break systems, adaptive headlights that enhance night-time visibility and crumple zones in cars are few of the safety features that are now been integrated in new and existing vehicles.

The latest innovative safety feature which all the car makers are buzzing about is the new crash avoidance technology system. This new system will be based on a technology that will alert drivers of danger and possibly take action on behalf of the driver to prevent crashes from happening, according to auto-makers these technology has the potential of almost completely eradicating car crashes. According to statistics a high percentage of car accidents are caused by the drivers due to bad driving practices or distraction, the crash avoidance technology aims to prevent this as the technology will allow a car detect when a driver fails and act on behalf of the driver to prevent a car crash. Ford, Toyota and Volvo are just a few of the car makers who strongly believe this technology can reduce the rate of car crashes on the road. There are mixed opinions about this new crash avoidance technology as some drivers and researchers are off the opinion that this technology might actually cause more interruption than help for the driver while others are of the opinion that it will help the driver make better decisions.

According to the British drivers association any technology that takes responsibility away from the motorist should be banned, they believe that any technology which requires the driver to do little will make the driver less alert and too relaxed. “We have to be confident that the engineering can cope with a range of complexities in the same way as a human” explains Peter Rodger, the institute of advanced motorists’ chief examiner and former met police traffic inspector. This technology is not close to been developed or completed, the auto industry has and is still developing a lot of innovative safety features for cars, until this technology is finished and ready to be revealed it is not possible to know what its benefits or disadvantages will be.

Future of Online Business Development

Everybody looks for the efficient and effective online business process. Yet, somewhere down the line everyone is concerned about the future of internet business development. It is sure that the upcoming online business era is under the shed of sheer competition. However, experts and analysts are coming up with new online strategy so that online business developers can foresee profitable outcomes.

It is only through the internet business that one think of fading borders, when it comes selling their products to the larger mass. Even the most popular business tycoons have realized that E-Business is the massive growth phase. This is a reason that most of traditional business holders are switching or integrating their business with the electric platform. Thus, the debate of the E-Business seems stronger and more flourishing in the coming years. For people are not so good with internet business development can look up to the internet experts. They will help you with creating, developing, and growing your business on the internet.

However, you must be able to choose your business experts deliberately so that you get the right advice and can precisely draw your ideas into reality. The future proof online business development carries with more easy access of the internet services. Services such as Mobile-ready, social network savvy, useful content can be great managed by online experts and increase your electronic economy.

Future of E-Business development is that it helps in integrating business with the existing business processes and workflows. Moreover, you can select the latest proven Internet technologies to add much to your existing business. Thus, online successes will increased profit steams for your business.

Here go a few commendable steps for the development of online business

  • Brand Development and Consulting: the online marketers take care of your business at the initial stage and secure your tag line for the new business. Right from the business name to the domain name and social media extensions, everything can be a taken care of.
  • Logo, Corporate brand, website Design and brand design on social Media: this is a vital section of your online business development. Including impressive graphic designs, the professional SEO and web designers ensures your website to have a correct professional look and feel. Further, it should mark strong presence on the social media through potential avenues.
  • Marketing and Advertising through Internet Marketing: it is not that only exclusive look works for your website. After your website gets ready, you have to start immense awareness for its proper growth. You can do this through SERP, SEO, Social Media, Forums, Business Directories, PPC, Email, Telemarketing and traditional media. If you have a small business then key is the immediate cash flow which can targeted through internet marketing.

How Much to Pay For a Business

  1. There is no right or wrong amount – There is only what you are prepared to pay and what the seller is prepared to accept – nothing else is relevant.
  2. How much to pay is based on what CASH you can realistically expect to generate from the business in future years – (There are many valuation methods available from complicated mathematical formulas to a simple percentage of sales. These methods make a good cross-check to the method suggested below).

HOW MUCH TO PAY – THE METHODOLOGY

STEP 1: NORMALISED PROFIT

Calculate a “normalised” annual cash profit (before tax) the business is likely to earn next year based on its past history. This is usually done by beginning with Last Year’s annual profit and making adjustments for items

  • incurred last year but won’t be incurred next year
  • to be incurred next year but weren’t incurred last year
  • Non-cash items

Examples of items you could adjust for

INCREASE PROFIT BY

    • Any wages or benefits paid to the business owner (or people related to the business owner) who will not be continuing when you own the business. This is not just wages but superannuation, medical benefits, motor vehicles, non-business (or slightly business) travel etc.
    • Interest Paid and any Other Finance Costs (that you will not be responsible for)
    • Depreciation and any other Non-Cash Items
    • Any Non-recurring expenses that occurred in the prior year (e.g. legal fees on a case which is now resolved)
  • The expected annual profit of any new (major) customers not included in the past year’s sales

DECREASE PROFIT BY

    • The market wage & benefits payable to you and any partner/relation that will work in the business (the amount is what you would be paid if the business was owned by a 3rd party and not necessarily what you will actually be paid)
    • Any expenses that will be incurred in future years, which are not included in last years’ profit (e.g. the business moved premises 3 months ago into a more expensive site – decrease the profit to reflect the new rental for the next 12 months less what was paid last year)
    • Any revenue earned last year that would be considered abnormal or not likely to occur next year (e.g. a large client was lost to a competitor, a “special” job which won’t occur again)
  • If there is likely to be significant capital expenditure (new equipment) over the next 3 to 4 years then an adjustment should be made (usually the cost of the equipment divided by the estimated years it will be used in the business)

At the completion of this stage we will have a value which represents the NORMALISED CASH PROFIT. This is the amount of profit before income tax that the business is expected to earn next year if it continued to run as it has done in the past.

STEP 2: SELECT AN APPROPRIATE MULTIPLE

There have been books written on what multiple to select and why, but here’s a RULE OF THUMB which has served me well through many purchases. There are 2 ranges

  • Smaller Business (Profit less than $100,000) 2 to 3
  • Medium Business (Profit $100,000 to $500,000) 3 to 4

(This methodology is not suitable for larger businesses)

STEP 3: CALCULATE THE VALUATION RANGE

Multiply the NORMALISED PROFIT calculated in Step 1 with the MULTIPLES in Step 2.

E.g. If you had a normalised profit of $150,000, the valuation range would be $450,000 to $600,000

STEP 4: NARROW THE VALUATION RANGE

To narrow the range further compile a list of factors which either improve or detract from the certainty that you will earn the normalised profit amount calculated in Step 1. Each factor that improves the certainty will support paying a higher amount in the range, each factor that detracts from the certainty supports paying a lower amount in the range. Based upon the number and importance of the factors in each category will allow you to tighten the range to either the lower, middle or upper portion of the range calculated above.

Examples of factors include

1. Age of Business

A business that has existed for 20 years is likely to have more certain earnings and be more established in a market than a business that has existed for 2 years

2. Size of Business

Generally the larger the business the more likely the business would survive any negative events

3. Certainty of Revenue Stream

There are many items that might improve or detract from revenue including

    • Does the revenue naturally occur each year (e.g. an accounting firm which would usually see the same clients to do their tax returns each year) V’s carpentry business which receives most of its clients from internet or yellow pages advertising

  • Is the revenue made up of a lot of smaller clients V’s a few larger clients? Whilst larger clients may be more profitable, they have a higher risk to the business should they take their business elsewhere.

4. Working Capital Required

The larger the working capital required (Debtors + Inventory – Creditors), the less you want to pay. Compare 2 identical businesses, the first requires you hold $200,000 worth of inventory, the second has an arrangement with suppliers to ship directly to customers. At the very least, you save interest on $200,000, plus the extra staff required to receive, pack and ship the stock, do stocktakes etc.

5. Economic Factors

What is the outlook for the next 2-3 years – if the economy or industry is likely to worsen then your valuation should be more conservative.

6. Market Position/Competitors

How secure is the business – are there are a lot of competitors in the industry(many competitors drive down profit margins), are there any new competitors and how difficult is it for a new competitor to enter the market, what impact would a new competitor have on the business.

7. Industry

Is the market growing or declining?

E.g. there are 2 businesses earning identical profit, one sells mobile telephone technology, and one sells facsimile machines. The mobile phone business is likely to have the stronger growth in the future and therefore you’re likely to pay more than you would for facsimile machine business which is old technology and declining sales.

These are only a selection of the factors and there may be others which are very relevant, (perhaps specific to your deal) and these should also be taken into account.

FACTORS THAT YOU SHOULD NOT INCLUDE

There are 2 special factors, which you may be tempted to include but shouldn’t

1. How you will improve the Business

Perhaps you have a special skill, contacts, or insight that will generate more profit than what the business is currently earning. Surely that will allow you to pay more for the business – Yes… and No

Yes, it will increase the profit and add to the value of the business…

No, you should not pay more for the business because of it. This is the extra profit that you are generating for the business, why should you pay the current owner for it? – he hasn’t done anything. The value you add to the business, is what you should receive when you SELL the business, do not pay this to the current owner.

2. Future Opportunities for the Business

The owner has explained to you how the business has many wonderful opportunities for additional sales but he hasn’t had the time or money to pursue.

This will increase future profits so you could pay more – WRONG!

    • it hasn’t happened yet and it might not happen for many reasons, even if it does it’s never as easy as the current owner tells you (if it was, he would have found a way, and he wouldn’t be selling the business)
  • if it does happen – you will be the one who makes it happen – why should he receive anything for this

OTHER TIPS

    • Don’t get into a conversation with the seller about how you arrived at the purchase price. This will spiral into you shouldn’t add back this, did you include that, and the multiple should be higher… this is not helpful. You have calculated a price that you will pay and that’s all the seller needs to know. Of course, there is likely to be a negotiation process so leave yourself some room to go up from your first offer).
    • Get an accountant to assist with the due diligence
    • When apportioning the purchase price amongst the assets, in most countries the best tax outcome will be to put the maximum value to assets in the following order
      • Inventory
      • Equipment and other depreciable items
      • Goodwill (as low as possible)
    • For the seller it is usually best in reverse and I have seen deals where the contract is left blank in this area, and each party fills in their own values later – check with your solicitor
    • Deduct any accrued employee entitlements from the purchase price (e.g. annual leave, long service leave)
  • Whilst it always preferable to have the previous owner to stay in the business for a handover period, if you are taking over their role, in practice it is usually best to let them go as soon as you are comfortable with the business

Down Payments On Business Loans And Where You Can Get Yours

All small business lenders – banks, private lenders, alternative financing companies, SBA, etc. – have one major thing in common. They require some form of down payment.

Let’s say that you are requesting an unsecured business loan from your bank. And, you are asking for $80,000 that you want to use to purchase some inventory and supplies as well as to bolster your marketing efforts.

And, your bank approves that request. However, they only approve 80% of your requested amount or $64,000. What?

Or, your business is in need of a new routing machine to handle your ever increasing customer load. The equipment costs $50,000. Your lender approves your request but will only fund $40,000 or 80% of what you need. Huh?

Or, your business has $100,000 in outstanding invoices just waiting to get paid by your customers. Yet, you have new orders coming in everyday that you just do not have the cash on hand to start or complete. Therefore, you approach an asset based lender or accounts receivable factor and ask for an advance on those invoices that will pay within the next 30 days. However, the lender will only fund 80% or $80,000 against those invoices – even though they take control of 100% of their face amount. Really?

Down Payments

Why do lenders require down payments? It all started with banks centuries ago. They determined, through trial and error – mostly error – that if a borrower were to put at least 20% down – have 20% of their own money attached to the loan – then they are 80% less likely to just walk away from that loan should the going get tough.

Thus, they determined that 20% in a down payment was both enough to better ensure that their borrowers will repay those loans – the one thing they want the most – and that 20% was enough of an amount (high and low) that only serious borrowers would and could be able to raise that amount.

In fact, when the government got involved in the banking and lending industries, this down payment figure of 20% was one of the first things that they agreed on as a standard practice and now hold these lenders to that standard.

Bottom line is that having a down payment in nearly all lending – mortgage loans as well as business loans – is now the standard and is already calculated in their underwriting process. Thus, you request a business loan for $100,000 – the lender already marks it down by 20%.

Now, leave it to the SBA to throw a wrench into this discussion. The SBA has a business loan program – their 504 loan program – which helps local small businesses finance commercial real estate or business equipment in their local areas. These loans are secured – 100% – by the real estate or equipment. Thus, with this specific loan program – this secured loan program – the SBA lowered its down payment requirement to 10%. Still a down payment but less of a burden on the borrower.

Types Of Down Payments

Now, there are essentially two forms of legitimate down payments.

1) Simply cover the 20% with your own cash. You need $80,000 for your equipment purchase, the bank will provide 80% or $64,000 and you cover the other $16,000 out of your own pocket.

2) You have built in equity in the item being bought with the loan. Here, you are buying a commercial property to expand your small business (and quit paying outrageous rents). The purchase price is $250,000. Yet, that price is only 80% of its market value – the market value is $312,500. Thus, the difference between the purchase price and the true value of the property is the 20% – 20% equity in the property.

Where To Get That Down Payment

There are several ways that you – the business borrower – can get that required down payment as most small business owners either do not have that kind of cash on hand to cover the 20% or just do not know where to obtain it.

Don’t Pay It:

1) Negotiate with the lender. While this does not provide you the equity to put down – it can alleviate that requirement all together. If your business is strong enough and the lender really wants to work with you – then negotiate that requirement away – and get that lender to cover 100% of your needs.

2) Negotiate with the seller. If you are buying a physical asset like equipment or commercial real estate then negotiate the price to 80% of the asset’s value. Kind of hard to do these days with property values being as low as they are and that most equipment vendors do not have control over their prices – but, if the person wants to sell as bad as you want to buy – then they will find a way to work with you – they always do. MSRP prices are more wish lists then actual prices.

Find The Money:

3) Personal loan. Do you have equity in your home or other personal assets? Can you get a personal loan based on the personal income you do have? Can you tap some other source of personal income or equity – that 1) does not relate to your business and 2) does not put an additional burden on your company?

Most lenders will find out about all of your business debt and most of your personal debt during their approval process. Know that with the business debt, they will include that in their underwriting process when approving your business loan request. And, if they find out that you took another business loan to cover your down payment – they tend to frown on that. But, if they find out that you have a personal loan – even if they know that you did that to cover your down payment – it is still a personal loan and something that ties you personally to that new loan request – means you might get away with it.

Or, try to get a personal loan from a friend or family member. This way, it is not reported anywhere and very hard for the new lender to find out about it. This could be a loan or even an equity injection for stock or ownership in the company. Either way, it should not directly affect your new loan request.

The idea here is simple. Let’s say that you need a business loan for $100,000. You request that amount at 8% for three years. This would set your monthly payment at $3,134. But, if the lender will only approve and fund 80% or $80,000 – then your required payment would drop to $2,507 – leaving the difference of $627 to cover that personal loan you need for the down payment ($627 is more then enough to cover the $20,000 personal down payment loan for the same term at the same rate).

4) Sell off unneeded or unused assets – personal or business. This way you get needed money from assets that you don’t need or want and you don’t have to pay that money back – it is free and clear for you to use. Thus, while you are only getting 80% of your requested loan amount – you only have to pay for that 80%. And, the $627 difference – outlined above – is money that you now don’t have to pay to any lender – it is added money in your pocket or for your business.

5) Lastly, use your business. Let’s say that your business needs a $100,000 to expand. Now, it could get a loan now or it could save up its own money – its own profits – for the next 3 years (your business has to be generating some form of profits for you to be able to afford the loan payments in the first place – thus, it can just save that money itself).

But, not wanting to or not seeing it as a viable option to wait 3 years – your business can just save that money (profits) for that down payment only – save for 7 months or so to get that needed 20% – then request the loan. This would have the same benefits of selling off assets for that needed cash without losing the use of those assets. The only requirement here or burden on the business is time – the 7 months.

The Main Reasons For The Growth Of The Home Based Business Industry

“Opportunity does not knock, it presents itself when you beat down the door.” – Kyle Chandler

What is the Home Based Business Industry?

An entrepreneurial business is mainly operated from home, mostly by the business owner himself. Some people refer to it as micro enterprises, working online, or small businesses. A small or micro business may not necessarily be a home based business.

It is important for the development of our home business opportunity to achieve financial independence in the global economy of the 21st century, to have a view of the total size of this industry and some views on possible future development and growth. This evaluation of the trends of the industry will help to dream-it-plan-it-do-it.

Very reliable statistical information is not freely available because these businesses are not well defined and are not part of governmental statistical planning and strategic information data. Some research and other information are available and will help us to get a broad view of the importance and trends of this industry.

Some general trends of and comments on the Business Industry:

The prospect of working from home has gained credibility over the years. It is no longer seen as a kind of part time job that the wife is doing from home while caring for her children. Take into account that most companies, about two-thirds of all companies, begin at home. That includes big companies like Apple Computer, Baskin-Robbins ice cream, Electronic Data Systems, Hallmark cards, the Lillian Vernon catalogue, and Purex.

In the USA, the average income generated by the home based business is substantial, as indicated by the following:

“Plus many home businesses do generate substantial revenue. About 35% have revenues of more than $125,000 and 8% more than $500,000. The median household income is $50,233 for households in general and roughly $75,000 for home entrepreneurs. The income for home based business owner is thus substantially higher than it is for the population as a whole.”

The home entrepreneurs business employs about 13.2 million people in the USA. It is estimated that about 50% of these are home based businesses. The assumption is that the home based businesses employs about 6.6 million people in the USA.

The home business industry is developing fast and becomes more important due to the following:

• The growth in the internet and the people connected to the internet. Two billion people are connected via the internet and this number grows by 200 million each year.

• Growth in the availability and lowering of the costs of broadband communication and connections worldwide has a positive influence on people connecting to the internet.

• The internet, increased online purchasing, money transfer mechanisms (notably PayPal), reliable global shipping, the decline in informal trade barriers and networks created through immigration have all made it easier for small businesses to serve global markets. The internet has been particularly important in enabling small businesses to cost effectively serve small market niches (the ‘long tail’ phenomenon).

• The development of computer technology, software, printers, dedicated telephone lines, and mobile phones creates new opportunities for the home based business and makes it more viable to operate a business from home. Affordable and powerful new technologies will continue to create new opportunities for the home based business. These technological developments will help to keep this industry growing.

• New innovations like:
o Express parcel delivery, distribution, cloud based IT services.
o Outsourcing, freelancing, communication technology, and the availability of skilled people in foreign countries makes it possible to not to have to perform all tasks at the premise of the home based business. It is easier to operate from a small premise at home.
o New business models have created new job opportunities for the development of home based business. Two examples are the network marketing industry, or multilevel marketing, and franchising.

• The growth of the knowledge and service based industries requires little office or working space and economies of scale does not apply.

• People are making lifestyle changes and prefer to work from home as it gives them flexibility, it saves time, and it eliminates commuting costs.

• The computer home business is not exclusively dependent on the local market to generate income, or for its financial existence; that makes this kind of business less vulnerable to economic cycles.

• Many people do need an extra source of income due to debt or other financial reasons and start their own home based business part time to generate a second income stream.

• With employer benefit packages being cut and the chances of losing a corporate job increasing, many view starting a home based business as no more risky than traditional employment. Job and income security drives people to start looking for and to develop an extra source of income for them.

• Due to demographic and social shifts. Aging baby boomers, women, Gen Y and others are all seeing home based business ownership as an increasingly viable work option. An interest in achieving work/life balance, flexibility, the opportunity to pursue a passion and working for your self are some of the reasons given for starting a home based business.

• There is a lack of corporate jobs. Large corporations have been battered by the recession. Even if the economic recovery is strong, it is unlikely that these companies will dramatically increase hiring. Instead of hiring full-time staff, they will stay flexible and lean through the increased use of technology, contractors, partnerships, and outsourcing. As a result, starting a home based business will be the best, and in many cases, the only option for corporate refugees.

“Nevertheless, owners are much more satisfied with their quality of life than other small business owners. However, the majority of owners do not appear to have made a financial trade-off in order to secure this quality of life.”

The number of people connected to the internet is growing very fast. Broadband is becoming more available in the world. The internet support technology and mobile applications of communication is growing at an astronomical rate. These developments create new opportunities for the internet related businesses.

It is being considered by some researchers that these developments will have a greater influence on the world economy than any economic revolution in history.