Accounts receivable financing, also known as factoring, is a powerful financial tool that has fueled the growth and success of a number of companies.
Factoring enables companies to capitalize on their unpaid receivables by selling them to a factoring company for immediate payment. With factoring, companies
immediately get paid for their invoiced work from the factoring finance company, while the factoring company waits to be paid by the customers. Factoring
strengthens a business' cash position by shortening the time to get invoices paid to 48 hours and providing the needed funds to meet current expenses and
target new opportunities.
Factoring Benefits
As opposed to loans and lines of credit that require that the client have tangible assets and strong financials, factoring relies more heavily on the
financial strength of the clients' customer. This is a critical feature,since many new and small businesses do not meet the financial criteria of traditional
lending institutions. However, many small businesses have a roster of financially strong customers that can be leveraged. Factoring empowers businesses to
capitalize on their customer list, and provides them with a tool to transform outstanding receivables into immediate cash, without generating debt. Since
Factoring is not a loan, it is an ideal financial product for the following:
o New and emerging businesses including small and home businesses, consultants and solo-preneurs.
o Businesses with financially strong customers
o Businesses that are preparing to grow significantly
o Business with intangible assets (e.g. consultants)
o Businesses that do not want to take a loan
An additional benefit of factoring is that the factor usually assumes part of the clients' credit risk for the customer. This means that if the customer
becomes financially insolvent due to bankruptcy and does not pay the invoice, the factor will assume the loss. This is a critical service for small companies
who may not be able to afford the bankruptcy of a customer.
Costs
The costs of a factoring transaction - also known as the discount - vary based on a number of variables such as the financial strength of the customer and
the amount being factored. Generally, the discount is a percentage of the invoice's face value that increases with time until the invoice gets paid. Small
businesses, those that have between $20,000 and $300,000 in yearly revenues, can expect to pay a discount rate of about 2% for every ten (10) days that the
invoice remains unpaid. Businesses with factorable revenues in excess of $300,000 can expect lower discount rates.
Factoring at Work: Business Services and Products, Inc. Case Study
Business Services and Products, Inc. (BSP, Inc.) is a small fictional company, which provides business consulting and equipment to local companies. It has
$300,000 of annual revenues and during the past year BSP Inc. has enjoyed significant sales growth. Although most business owners would be very happy to
manage such a company, Jane Sullivan, BSP Inc's president, is very worried about her company's financial position.
Most of BSP Inc.'s customers are large companies with a good reputation for always paying their invoices. However they always take between 30 to 45 days to
pay them. BSP Inc., however, needs to pay their employees every two weeks and their vendors every four weeks. This discrepancy between the time that
customers pay their bills and the time BSP Inc. needs to pay their employees and vendors has created cash flow problems in the past. Furthermore, these cash
flow problems have already caused Jane to delay payroll twice this year and have placed her trade (vendor) credit in jeopardy multiple times. This has also
caused her to pass on a number of significant business opportunities because she was unsure of the company's financial ability to hire and pay for additional
staffers. Unfortunately, BSP Inc. did not have a large enough financial cushion in the bank to afford paying employees while waiting for 45 days new clients
to pay their invoices.
The following table provides an overview of BSP, Inc's current financial position.
Business Services and Products, Inc (without financing)
Yearly sales: $300,000
Lost new sales opportunities: Unknown
Total Sales: $300,000
Variable Costs (60% of Sales): $180,000
Fixed Costs (Rent, phones, etc): $20,000
Total Costs: $200,000
Profit (Sales - Costs): $100,000
Although the company's prospects appear great, Jane may have to stall her company's growth until she builds a large enough cash cushion at the bank to
finance her company's growth. After careful consideration, Jane decided that a factoring line of working capital could help strengthen her company's
financial position. Furthermore, factoring her invoices would enable BSP Inc. to take on new customers and continue growing, knowing that she could
capitalize on her slow paying customers. BSP Inc.'s financing agreement will provide the company with an advance of 70% of her invoiced services. This means
that the company can get 70% of the face value of the factored invoices within 24 to 48 hours of submitting them to the factor. The remaining 30% of the
funds, less the factoring fees, will be quickly rebated as soon as the customer pays their invoice.This line of working capital strengthened the company's
financial position and bank account, enabling Jane to pay for new employees to service new contracts. Jane also decided to use the extra capital to pay her
vendors early, obtaining quick payment discounts and helping to reduce the cost of factoring.
BSP Inc. customers pay their invoices within 30 days of receipt. The discount (factoring fee) for these invoices is 6%. Every time an invoice is paid, the
factor rebates BSP Inc. the remaining 30% that was not advanced less the factoring fee. This means that once the transaction is completed, the factor rebates
24% (30% - 6%) to BSP Inc. Thanks to the factoring line of working capital, Jane was also to secure an additional $120,000 worth of business, bringing her
annual revenues to $420,000.
The following table shows BSP Inc.'s financial position a year after using factoring.
Business Services and Products (with factoring)
Existing Sales: $300,000
New Sales: $120,000 (factored)
Total Sales: $420,000
Variable Costs (60% of Sales): $252,000
Fixed Costs (Rent, phones, etc.): $20,000
Cost of Factoring (6% of $120,000): $7,200
Total Costs: $279,200
Net Profit (Sales - Costs): $140,800
As can be seen from the above table, factoring helped BSP Inc. increase profits substantially from $100,000 to $140,800 - a 40% increase. It placed BSP Inc.
on a more stable financial footing, priming it for growth. Furthermore, the cost impact of factoring on the bottom line was minimal, as it was easily
absorbed by the additional business, showing that factoring was paid for directly by the growth.
Wednesday, March 10, 2010
Work Your Home Based Business Idea in Three Easy Steps
Create a Business Plan first
The primary necessity is to get a perfectly designed plan of action for a genuine business. A business plan on its own is useless. It is a mere reflection, but it will not suffice you also need an action plan. A business scheme is the first step in working out your idea into actions that you can follow. Well-illustrated business plans can be found online or at your library.
Begin now
• Do not be afraid of failure. Remember failure is the first stepping stone to success, if this home based business idea does not work out for you now do not let this deter you. Always remind yourself of the spider when you feel like losing hope.
• Do not let that wonderful home-based business idea gather dust. Start today.
• Waiting for the right time to start your business might make success elude you forever. If there is any specific right time, it is right now. Do not waste your precious time.
•
Put a figure on it
This is the greatest stumbling block for most home-based business owners. That is, they fail to evaluate their work. If you do not give proper attention to this, you may have to wrap up your business. You need to know that real figures and numbers are needed for you to stay in business. If this is not your agenda of work, you are probably going all wrong.
Large businesses usually set up balanced scorecards. The idea is to have a referring point to compare how successful your work is. For example, to get five customers in one month you could settle on free seminars but if you see that your plan is not getting you five clients, you need to reassess your plan. Change of plan prevents waste of energy and resources.
Entire contents copyright © 2005 Morpheus Institute.
The primary necessity is to get a perfectly designed plan of action for a genuine business. A business plan on its own is useless. It is a mere reflection, but it will not suffice you also need an action plan. A business scheme is the first step in working out your idea into actions that you can follow. Well-illustrated business plans can be found online or at your library.
Begin now
• Do not be afraid of failure. Remember failure is the first stepping stone to success, if this home based business idea does not work out for you now do not let this deter you. Always remind yourself of the spider when you feel like losing hope.
• Do not let that wonderful home-based business idea gather dust. Start today.
• Waiting for the right time to start your business might make success elude you forever. If there is any specific right time, it is right now. Do not waste your precious time.
•
Put a figure on it
This is the greatest stumbling block for most home-based business owners. That is, they fail to evaluate their work. If you do not give proper attention to this, you may have to wrap up your business. You need to know that real figures and numbers are needed for you to stay in business. If this is not your agenda of work, you are probably going all wrong.
Large businesses usually set up balanced scorecards. The idea is to have a referring point to compare how successful your work is. For example, to get five customers in one month you could settle on free seminars but if you see that your plan is not getting you five clients, you need to reassess your plan. Change of plan prevents waste of energy and resources.
Entire contents copyright © 2005 Morpheus Institute.
Tuesday, March 09, 2010
You Never Have a Second Chance to Make a First Impression: Position Your Company Wisely
One of the most profound statements made on the subject of positioning comes from Louis Carroll's, Alice In Wonderland. When Alice asks the Cheshire Cat which path to take, he responds, "If you don't care where you're going, it doesn't make a difference which path you take."
Your positioning statement is the foundation on which all communications activities are based upon. It is the most important marketing practice, and often the most overlooked. Without clearly defined messages and positioning, promotion efforts are fruitless.
From a management perspective, positioning is the cornerstone of an effective communications plan. A well-crafted positioning statement defines your company's direction. A positioning statement expresses how you wish to be perceived. It is the core message you want to deliver in every medium. The purpose of this is creating clarity, consistency, and continuity in the way your organization speaks to the market. This makes all forms of communications less complex and easier to manage.
Once established your company should actively apply its new positioning statement to all communications (internal and external) - from marketing collateral to sales material, Web sites to press releases. This means that if communications do not support the sought-after positioning or do not include, reflect, address or amplify the positioning statement and key messages, they are off strategy. This positioning process should be repeated as market conditions require, semi-annually is customary.
An effective positioning statement answers seven essential questions:
• who you are
• what business you're in
• for whom (what people do you serve)
• what's needed by the market you serve
• against whom do you compete
• what's different about your business
• what unique benefit is derived from your product or services
Think of positioning as the perception your target audience has of your product. You have total control over this element of your marketing efforts, and it is critical to how you develop the rest of your plan. Planning your service’s positioning must involve taking into consideration such issues as the competition and how their services and products are perceived, the needs and desires of your target audience, and the element of mystique or drama that your product or service naturally has about it.
In crowded markets, it is very important to position your company and products appropriately. Think about the 3000 messages your audience is bombarded with every day! In order to stand out, your product has to have a clear position in your audience's mind.
Your positioning statement is the foundation on which all communications activities are based upon. It is the most important marketing practice, and often the most overlooked. Without clearly defined messages and positioning, promotion efforts are fruitless.
From a management perspective, positioning is the cornerstone of an effective communications plan. A well-crafted positioning statement defines your company's direction. A positioning statement expresses how you wish to be perceived. It is the core message you want to deliver in every medium. The purpose of this is creating clarity, consistency, and continuity in the way your organization speaks to the market. This makes all forms of communications less complex and easier to manage.
Once established your company should actively apply its new positioning statement to all communications (internal and external) - from marketing collateral to sales material, Web sites to press releases. This means that if communications do not support the sought-after positioning or do not include, reflect, address or amplify the positioning statement and key messages, they are off strategy. This positioning process should be repeated as market conditions require, semi-annually is customary.
An effective positioning statement answers seven essential questions:
• who you are
• what business you're in
• for whom (what people do you serve)
• what's needed by the market you serve
• against whom do you compete
• what's different about your business
• what unique benefit is derived from your product or services
Think of positioning as the perception your target audience has of your product. You have total control over this element of your marketing efforts, and it is critical to how you develop the rest of your plan. Planning your service’s positioning must involve taking into consideration such issues as the competition and how their services and products are perceived, the needs and desires of your target audience, and the element of mystique or drama that your product or service naturally has about it.
In crowded markets, it is very important to position your company and products appropriately. Think about the 3000 messages your audience is bombarded with every day! In order to stand out, your product has to have a clear position in your audience's mind.
Time Management For Your Home Business: 7 Ways To Win The Time Crunch
Are you working a day job while building your home based dream business? Do you find it difficult to manage your time? Follow these seven tips to get more done growing your business, and have more time for other important things in your life, too.
1) Make And Use A To Do List Daily.
It's easy. Tonight, write down the tasks you need to do, in order of importance (revenue generating tasks first), on a 5x7 index card and tape it to your desk or computer. Tomorrow, do them one at a time, starting at the top of your list. Place any tasks that aren't completed at the top of the next day's to do list before you go to sleep. Seeing that list at the end of the day with everything (or mostly everything) scratched off is a great feeling.
2) Schedule Your Time For The Day.
Make note of your free time (non day job time) and schedule a block for each major activity that you need to do. Save the more involved tasks for the time of day when you are fresh and alert. Try your best to adhere to the schedule, but be flexible. Don't stress out when you run out of time and get off schedule. Over time you will know how much time a task will take to complete and will be able to plan for it better. Remember, this schedule is only a tool for you to set aside time for what you need to do. It's not intended to have a negative affect on you, but it could if you don't be realistic.
3) Do Not Disturb.
Make sure that your most productive periods are free from interruptions. Close your office door if you have to. Plan to use this work time when household distractions will be at a minimum. When the kids go to their grandparent's house. When your husband shoots pool with the guys. When your wife goes shopping. If you have to hang a sign on your office door, do it. You'll be surprised how much more you get done.
4) Make Time For Your Family.
Quality time with your family should not be sacrificed in order to build your home business. If you make time regularly for your spouse and children, they will be able to deal with your No Disturb sign without feeling neglected. Don't be the parent that the kids never see.
5) Take Your Work With You.
If your day job leaves you with slow periods when you do little or nothing, use this time to your advantage. Lunch breaks or smoke breaks can add up to some valuable time by the end of the week. Always carry the tools that you need to do your work with you. Don't go anywhere without your "idea notebook" and pen. Be prepared.
6) Automate Or Hire Out Tasks.
Computers and the internet allow you to automate certain tasks that were once time-consuming manual chores. Use autoresponders to deal with repetitive email questions. Use modern accounting and word processing programs that help you be organized and save you time. Use a list management service/program to make it easier to stay in contact with your prospects and clients. Don't be afraid to hire out some of your most time consuming tasks such as writing, proofreading and product creation. The pros do it, and so can you.
7) Time To Relax.
Don't kill yourself trying to work a day job and build a home based business at the same time. You need time to totally escape from your daily duties occasionally. Exercise is one of the best things you can do for yourself, while helping to manage stress. Don't sacrifice your health for business sake. Take that drive to the beach and walk a mile. Play basketball with your friends. Or just sit outside under a tree and read that new mystery you've been wanting to read. A clear head will do wonders for your productivity.
If you give it a try, you'll see that IT IS possible to solve "the time crunch". Be organized and know what your total work load includes. Think about spending less time watching television, or on other useless activities. Don't forget your family. Even though you are working hard, make sure you are having fun. If you don't love what you are doing, don't do it.
Because enjoying life is what it's all about, right?
You bet.
1) Make And Use A To Do List Daily.
It's easy. Tonight, write down the tasks you need to do, in order of importance (revenue generating tasks first), on a 5x7 index card and tape it to your desk or computer. Tomorrow, do them one at a time, starting at the top of your list. Place any tasks that aren't completed at the top of the next day's to do list before you go to sleep. Seeing that list at the end of the day with everything (or mostly everything) scratched off is a great feeling.
2) Schedule Your Time For The Day.
Make note of your free time (non day job time) and schedule a block for each major activity that you need to do. Save the more involved tasks for the time of day when you are fresh and alert. Try your best to adhere to the schedule, but be flexible. Don't stress out when you run out of time and get off schedule. Over time you will know how much time a task will take to complete and will be able to plan for it better. Remember, this schedule is only a tool for you to set aside time for what you need to do. It's not intended to have a negative affect on you, but it could if you don't be realistic.
3) Do Not Disturb.
Make sure that your most productive periods are free from interruptions. Close your office door if you have to. Plan to use this work time when household distractions will be at a minimum. When the kids go to their grandparent's house. When your husband shoots pool with the guys. When your wife goes shopping. If you have to hang a sign on your office door, do it. You'll be surprised how much more you get done.
4) Make Time For Your Family.
Quality time with your family should not be sacrificed in order to build your home business. If you make time regularly for your spouse and children, they will be able to deal with your No Disturb sign without feeling neglected. Don't be the parent that the kids never see.
5) Take Your Work With You.
If your day job leaves you with slow periods when you do little or nothing, use this time to your advantage. Lunch breaks or smoke breaks can add up to some valuable time by the end of the week. Always carry the tools that you need to do your work with you. Don't go anywhere without your "idea notebook" and pen. Be prepared.
6) Automate Or Hire Out Tasks.
Computers and the internet allow you to automate certain tasks that were once time-consuming manual chores. Use autoresponders to deal with repetitive email questions. Use modern accounting and word processing programs that help you be organized and save you time. Use a list management service/program to make it easier to stay in contact with your prospects and clients. Don't be afraid to hire out some of your most time consuming tasks such as writing, proofreading and product creation. The pros do it, and so can you.
7) Time To Relax.
Don't kill yourself trying to work a day job and build a home based business at the same time. You need time to totally escape from your daily duties occasionally. Exercise is one of the best things you can do for yourself, while helping to manage stress. Don't sacrifice your health for business sake. Take that drive to the beach and walk a mile. Play basketball with your friends. Or just sit outside under a tree and read that new mystery you've been wanting to read. A clear head will do wonders for your productivity.
If you give it a try, you'll see that IT IS possible to solve "the time crunch". Be organized and know what your total work load includes. Think about spending less time watching television, or on other useless activities. Don't forget your family. Even though you are working hard, make sure you are having fun. If you don't love what you are doing, don't do it.
Because enjoying life is what it's all about, right?
You bet.
Smart Investment When Buying a Laptop
Have you priced a laptop computer lately? Buying a new laptop is a big investment; and just how big of an investment you want to make is entirely up to you. Look in your Sunday newspaper flyers to see countless models on sale each week. Initially selections were made by looking at the specifications and the general appearance. However that’s not the sole criteria any longer. Everyday more and more people are now stepping inside the mobile world. With so many models of laptops now available, how can you be sure about the choice you make? Below are several factors you should consider: CPU (Central Processing Unit), Video Card, hard disk, noise, battery life and RAM (Random Access Memory).
CPU is the main component which determines the performance of your computer and also the heating and the battery life. There is a trade-off between the CPU performance and the battery-life and power consumption (heating). If you want a laptop which would replace a desktop and if you are not planning to travel with it a lot then there are several different offers with desktop CPUs integrated in the laptop main board (such as a P4).
If you are fond of mobility and are going to use your new laptop for your business purposes or school, then you should consider buying a laptop with more suitable CPUs. AMD Athlon can be a solution: Athlon processors are designed for users who are looking for economical solutions, both purchase and usage. Older models of Athlon are no where near Intel Pentium products from the point of performance, and yet new models like 2800+ are potent enough to compete with P4 2.8 GHz.
There is one more model of CPU that many of the customers prefer: Centrino. Centrino is the new attempt of Intel to balance the tradeoff between the performance and mobility issues. With the 2 MB second level cash, the Pentium CPU is modified for the laptop which eases the burden of the CPU and implicitly pulls down the levels of heating and power consumption.
RAM and the graphic card are also two important factors for the quality of the laptop. There are two kinds of RAM on the market: SD RAM and DD RAM. In any case, there is no tradeoff, no comparison: DD RAM is better, and yet, you still have to be careful about the clock specification of the RAM. If you buy a RAM with 3.0 MHz clock speed, you will see the performance improvement it supplies to the whole system. Another thing to consider is that some computers have 512 MB RAM with two slots (256 x 2) which is not very good for the new laptop you are going to buy. Overall, if you want a good laptop, you should consider one equipped with a 3.0 MHz, 512 MB, DD RAM.
There are various video cards on the market today. The first thing you should check is the “ON-Board” specification in the video card. These cards are integrated into the main board and generally use your main RAM as for the video memory. If you are going to use your laptop for general purposes, not for gaming or 3-D design which would require 3D hardware acceleration, these laptops with onboard video card are for you. However, if you are a professional Counter Strike player, you would be disappointed with the screen delays and freezes.
The last technical detail is the hard disk. While buying a hard disk there is a detail which is much more important then the capacity: RPM. Rotation Per Minute determines how fast the data transfer rate is to the CPU to be processed so this specification also plays a huge role while dealing with multimedia stuff.
So if you’re in the market for a new laptop computer, one suggestion is to consider buying a Centrino laptop with an on board video card with a big RAM if you are planning to use it for school or business purposes and also randomly for movies and music. Nevertheless, Pentium computers with AGP or PCI Express video off-board video cards would give you the performance of a desktop if you don’t mind the weight, noise and the heating of the laptop.
With so many decisions to make, take your time; do your homework and invest wisely.
CPU is the main component which determines the performance of your computer and also the heating and the battery life. There is a trade-off between the CPU performance and the battery-life and power consumption (heating). If you want a laptop which would replace a desktop and if you are not planning to travel with it a lot then there are several different offers with desktop CPUs integrated in the laptop main board (such as a P4).
If you are fond of mobility and are going to use your new laptop for your business purposes or school, then you should consider buying a laptop with more suitable CPUs. AMD Athlon can be a solution: Athlon processors are designed for users who are looking for economical solutions, both purchase and usage. Older models of Athlon are no where near Intel Pentium products from the point of performance, and yet new models like 2800+ are potent enough to compete with P4 2.8 GHz.
There is one more model of CPU that many of the customers prefer: Centrino. Centrino is the new attempt of Intel to balance the tradeoff between the performance and mobility issues. With the 2 MB second level cash, the Pentium CPU is modified for the laptop which eases the burden of the CPU and implicitly pulls down the levels of heating and power consumption.
RAM and the graphic card are also two important factors for the quality of the laptop. There are two kinds of RAM on the market: SD RAM and DD RAM. In any case, there is no tradeoff, no comparison: DD RAM is better, and yet, you still have to be careful about the clock specification of the RAM. If you buy a RAM with 3.0 MHz clock speed, you will see the performance improvement it supplies to the whole system. Another thing to consider is that some computers have 512 MB RAM with two slots (256 x 2) which is not very good for the new laptop you are going to buy. Overall, if you want a good laptop, you should consider one equipped with a 3.0 MHz, 512 MB, DD RAM.
There are various video cards on the market today. The first thing you should check is the “ON-Board” specification in the video card. These cards are integrated into the main board and generally use your main RAM as for the video memory. If you are going to use your laptop for general purposes, not for gaming or 3-D design which would require 3D hardware acceleration, these laptops with onboard video card are for you. However, if you are a professional Counter Strike player, you would be disappointed with the screen delays and freezes.
The last technical detail is the hard disk. While buying a hard disk there is a detail which is much more important then the capacity: RPM. Rotation Per Minute determines how fast the data transfer rate is to the CPU to be processed so this specification also plays a huge role while dealing with multimedia stuff.
So if you’re in the market for a new laptop computer, one suggestion is to consider buying a Centrino laptop with an on board video card with a big RAM if you are planning to use it for school or business purposes and also randomly for movies and music. Nevertheless, Pentium computers with AGP or PCI Express video off-board video cards would give you the performance of a desktop if you don’t mind the weight, noise and the heating of the laptop.
With so many decisions to make, take your time; do your homework and invest wisely.
Monday, March 08, 2010
Autoresponder Services For Your Business
In the world of eCommerce, millions of sites are fiercely competing with each other to gain new clients. For any eCommerce site to succeed, it must capture the interest and the trust of its visitors. It is not enough that your site is impeccably designed or has the latest in animation of content. You should focus your efforts not only in attracting visitors but also in leading them to make a purchase. There are dozens of marketing strategies you can use to attract more buyers and pump up your sales. One of them is by establishing an excellent and professional reputation for prompt and efficient response.
As more potential customers visit your site, you should expect a flood of inquiries and requests for information. This is an excellent opportunity for you to capture more clients and lead them to buying from your site. Thus, it is important that you carry out an efficient and prompt response to every email you receive. The fastest and most effective way to do this is by utilizing Autoresponder services.
Autoresponder services use a computer program that automatically returns a prewritten message to anyone who sends an email to your site. It is widely used for responding to consumer inquiries and visitor comments and suggestions. Autoresponder services are also used by e-zines in responding to people who subscribe or unsubscribe to their online magazines. Companies, who send out their e-newsletter regularly, also use Autoresponder services.
How can effective Autoresponder services help boost your business? The answer lies in its ability to return a prompt response to any e-mail the site receives. By responding rapidly and efficiently, you create a very good impression on your potential customer. Good Autoresponder services help you get important information back to these customers immediately. An effective Autoresponder service helps you communicate your message promptly, creating a sense of professionalism and efficiency that your clients will definitely appreciate.
Another very important advantage of Autoresponder services is that it saves time with multiple marketing tasks. Certainly, you do not have enough time to personally make and send all correspondence. Autoresponder services allows you to send thank you letters, newsletters, product information, brochures, orders etc. to hundreds of clients almost immediately and simultaneously. Autoresponder services are also indispensable in any email marketing campaign.
Choosing the right Autoresponder services is very important. What then should you look for in an Autoresponder service? First, you should pick an Autoresponder service that is reliable and can give you 24/7 service. You cannot afford to lose a customer because your Autoresponder service failed to answer his query or request for information. The ability to respond promptly is the first thing you must look for in any Autoresponder services.
Another key factor you should consider when choosing Autoresponder services is flexibility. Good Autoresponder services allow you to customize unique responses that will have maximum effect on the customer. You should avoid creating an impression that the customer is communicating with a machine instead of a real human being. Excellent Autoresponder services lets you provide the information that is specifically targeted for what the potential customers are looking for. Because any email from potential customers essentially represent the customer's intent on getting more information about your product, which can ultimately lead to direct sales, all emails are important. Thus, a top Autoresponder service must fulfill all these duties to help you boost your business.
As more potential customers visit your site, you should expect a flood of inquiries and requests for information. This is an excellent opportunity for you to capture more clients and lead them to buying from your site. Thus, it is important that you carry out an efficient and prompt response to every email you receive. The fastest and most effective way to do this is by utilizing Autoresponder services.
Autoresponder services use a computer program that automatically returns a prewritten message to anyone who sends an email to your site. It is widely used for responding to consumer inquiries and visitor comments and suggestions. Autoresponder services are also used by e-zines in responding to people who subscribe or unsubscribe to their online magazines. Companies, who send out their e-newsletter regularly, also use Autoresponder services.
How can effective Autoresponder services help boost your business? The answer lies in its ability to return a prompt response to any e-mail the site receives. By responding rapidly and efficiently, you create a very good impression on your potential customer. Good Autoresponder services help you get important information back to these customers immediately. An effective Autoresponder service helps you communicate your message promptly, creating a sense of professionalism and efficiency that your clients will definitely appreciate.
Another very important advantage of Autoresponder services is that it saves time with multiple marketing tasks. Certainly, you do not have enough time to personally make and send all correspondence. Autoresponder services allows you to send thank you letters, newsletters, product information, brochures, orders etc. to hundreds of clients almost immediately and simultaneously. Autoresponder services are also indispensable in any email marketing campaign.
Choosing the right Autoresponder services is very important. What then should you look for in an Autoresponder service? First, you should pick an Autoresponder service that is reliable and can give you 24/7 service. You cannot afford to lose a customer because your Autoresponder service failed to answer his query or request for information. The ability to respond promptly is the first thing you must look for in any Autoresponder services.
Another key factor you should consider when choosing Autoresponder services is flexibility. Good Autoresponder services allow you to customize unique responses that will have maximum effect on the customer. You should avoid creating an impression that the customer is communicating with a machine instead of a real human being. Excellent Autoresponder services lets you provide the information that is specifically targeted for what the potential customers are looking for. Because any email from potential customers essentially represent the customer's intent on getting more information about your product, which can ultimately lead to direct sales, all emails are important. Thus, a top Autoresponder service must fulfill all these duties to help you boost your business.
Banking Software: Do You Need It?
Whether you are considering the purchase of banking software for your personal use or for your business use, there are many reasons to consider this type of software. For one, you will reap many rewards. For another, it will relieve much work from your shoulders. But, do you need a banking software? You probably do not need a banking software if you maintain your checkbook accurately. You probably do not need it if you know how much you are spending on your various expenses each month. You also probably do not need it if you know how much of your income is going towards savings. But, then again, are any of us good at this type of organization?
Banking software really can help you manage your everyday and monthly expenses. It can help you to know what is happening in each function of your business as well. Who are you paying and how much are you paying them? What is your income to spending ratio? Are you saving enough? Are you investing well? These things are all things that a banking software can help you to manage.
Many banking software options allow you to connect right to the web so that your daily information can be downloaded and managed. No more balancing a check book when you can use the software instead. In fact, it will do that for you.
Another nice feature about a banking software is that it will allow you never miss another deadline for bills again. This is a great option because it allows you to know when you need to send out a payment so that you don?t have to deal with missing payments, late fees or even worse, bad credit reporting.
Banking software is exceptional when it comes to business use as well. It can organize just about any type of solution that you need it to and allow you to excel in your businesses' overall plans. Consider a banking software for all of your needs.
Banking software really can help you manage your everyday and monthly expenses. It can help you to know what is happening in each function of your business as well. Who are you paying and how much are you paying them? What is your income to spending ratio? Are you saving enough? Are you investing well? These things are all things that a banking software can help you to manage.
Many banking software options allow you to connect right to the web so that your daily information can be downloaded and managed. No more balancing a check book when you can use the software instead. In fact, it will do that for you.
Another nice feature about a banking software is that it will allow you never miss another deadline for bills again. This is a great option because it allows you to know when you need to send out a payment so that you don?t have to deal with missing payments, late fees or even worse, bad credit reporting.
Banking software is exceptional when it comes to business use as well. It can organize just about any type of solution that you need it to and allow you to excel in your businesses' overall plans. Consider a banking software for all of your needs.
Point Of Sale Systems: How to Choose One That’s Right for Your Business
A point of sale (POS) system can have a dramatic impact on the way you run your business -- and on your bottom line. Choosing the right one requires careful planning.
Here are some of the things you need to think through to make a good decision when selecting POS equipment and systems for your business. Use this list as a starting point for your planning process.
* First of all, price should not be the main consideration when buying a POS system. The improved efficiency, greater flexibility and better reporting should pay for the investment in a reasonable period of time.
* Don’t start off by calling for lists of features of various POS systems. Instead, start with a comprehensive analysis of what your business requires.
* Do you have operations spread over multiple locations? What are the implications?
If you run a restaurant, for example, you may need to keep some parameters common across locations while varying others. For instance, your menu may be identical at all locations, but prices of some items may vary from one outlet to another. The system you choose must be capable of implementing such differences.
* How easily can you make changes to the system? You can be sure that your business will keep changing in many respects -- employees join and leave, prices go up or down, your product range expands, locations get added or deleted and so on.
Ask yourself if the programming interface will easily allow your employees to execute such changes.
* Will it be possible to make changes ahead of time? For example, if you’re beginning a special promotion on November 15, can you input the price changes well in advance and set the system to automatically effect the changes on that date?
This as well as other types of flexibility are essential for many retail operations.
* To what extent will the POS system need to integrate with your accounting system? Does it have to be real time? Or is it enough to have an export of entries at day-end?
* If you are running a bar, does the POS system need to work with liquor control devices? A liquor control device tracks pours from bottles. This makes billing easier and reduces shrinkage.
* Will the credit / debit card processing system in the POS equipment work well with your merchant account?
* Will the system allow you to implement special deals for frequent shoppers? For instance, each purchase could have points associated with them and these points could eventually translate into lower prices or free gifts.
* What reporting capabilities will you need? If you work across multiple locations, will the system give you an online real-time report of transactions completed?
Most dealers will have sample reports available. Ask to see them so that you can compare better.
* In most cases, the POS system will have to be upgraded as your needs evolve and expand. How quickly can the dealer respond to your needs?
Also, most dealers put out regular software upgrades. Are they included in the contract or does the dealer charge extra for them?
For the sake of avoiding compatibility problems, plan to purchase new hardware of the same kind as the original. That way you’ll ensure everything works well together -- and even if there are problems, you can get the dealer to handle it.
* Support is a critical consideration. What happens if your POS system goes down? This can have a serious impact on the business. You need to get a detailed written agreement on how the dealer is going to handle breakdowns.
The dealer may try to diagnose and solve the problem over phone initially. If that doesn’t work, they may send support staff to your location. And if the problem can’t be solved quickly, you may need to get equipment on loan till your system is repaired.
Here are some of the things you need to think through to make a good decision when selecting POS equipment and systems for your business. Use this list as a starting point for your planning process.
* First of all, price should not be the main consideration when buying a POS system. The improved efficiency, greater flexibility and better reporting should pay for the investment in a reasonable period of time.
* Don’t start off by calling for lists of features of various POS systems. Instead, start with a comprehensive analysis of what your business requires.
* Do you have operations spread over multiple locations? What are the implications?
If you run a restaurant, for example, you may need to keep some parameters common across locations while varying others. For instance, your menu may be identical at all locations, but prices of some items may vary from one outlet to another. The system you choose must be capable of implementing such differences.
* How easily can you make changes to the system? You can be sure that your business will keep changing in many respects -- employees join and leave, prices go up or down, your product range expands, locations get added or deleted and so on.
Ask yourself if the programming interface will easily allow your employees to execute such changes.
* Will it be possible to make changes ahead of time? For example, if you’re beginning a special promotion on November 15, can you input the price changes well in advance and set the system to automatically effect the changes on that date?
This as well as other types of flexibility are essential for many retail operations.
* To what extent will the POS system need to integrate with your accounting system? Does it have to be real time? Or is it enough to have an export of entries at day-end?
* If you are running a bar, does the POS system need to work with liquor control devices? A liquor control device tracks pours from bottles. This makes billing easier and reduces shrinkage.
* Will the credit / debit card processing system in the POS equipment work well with your merchant account?
* Will the system allow you to implement special deals for frequent shoppers? For instance, each purchase could have points associated with them and these points could eventually translate into lower prices or free gifts.
* What reporting capabilities will you need? If you work across multiple locations, will the system give you an online real-time report of transactions completed?
Most dealers will have sample reports available. Ask to see them so that you can compare better.
* In most cases, the POS system will have to be upgraded as your needs evolve and expand. How quickly can the dealer respond to your needs?
Also, most dealers put out regular software upgrades. Are they included in the contract or does the dealer charge extra for them?
For the sake of avoiding compatibility problems, plan to purchase new hardware of the same kind as the original. That way you’ll ensure everything works well together -- and even if there are problems, you can get the dealer to handle it.
* Support is a critical consideration. What happens if your POS system goes down? This can have a serious impact on the business. You need to get a detailed written agreement on how the dealer is going to handle breakdowns.
The dealer may try to diagnose and solve the problem over phone initially. If that doesn’t work, they may send support staff to your location. And if the problem can’t be solved quickly, you may need to get equipment on loan till your system is repaired.
Sunday, March 07, 2010
Great Payoffs From A Workflow Software
When it comes to the terms, “Streamline Operations” or “Reduce Operating Expenses” and “Cut Labor Costs”, do you really have any idea what these terms actually mean? How much money does the company actually want to save? And how does workflow software help the company to achieve this seemingly insurmountable goal?
When it comes to workflow software, every company definitely has their own sets of procedures as well as methods that they implement when it comes to handling all sorts of day-to-day operations in and out of their companies such as the following: invoicing, time sheets, status reports, new account setup and you might as well include everything else that will be able to make your business tick. The term workflow in workflow software actually refers to the tasks, personnel, procedural steps, required information as well as the various tools that are needed for the steps that the business has to take in order for it to become successful.
Every company has a unique and different process as compared with other companies in the business, this is why a lot of growing companies usually end up with a highly unorganized business process when it comes to email templates, spreadsheets, shared documents, paper forms and even trivial knowledge which the employees should know in order to be able to handle the day-to-day business.
Majority of the time, such chaos and disorganization often leads to various frustrations and problems for the small company, such every day hassles include: missing paper work, missed deadlines, lost as well as incorrect information as well as extending heavily on working hours in order to complete a certain task. This is what usually happens to unorganized offices and is often referred to as “red tape.” The bottom line is that when the red tape starts getting on your customers nerves, it would soon be a downward spiral for your company as well.
So to your company’s rescue comes workflow software automation. But what exactly is a workflow software? And how can it help you out in this company crisis? Workflow software is actually still relatively new to the corporate setting wherein it is a combination of a to-do list as well as project management tool, only set on a different scale.
When it comes to workflow software just think of having a simple to-do list at your hands wherein through the workflow software, that to-do list can now also be accessible by other employees from your company through the company network. This simple to-do list can actually, on its own, keep track of all the items that need to be addressed by everyone in the company. Also, through the workflow software, once certain tasks are completed by the assigned company employees, the workflow software will actually automatically send off other to-do tasks to the appropriate company employees.
The workflow software is actually smart enough to also pass whichever documents or data that are needed to be able to perform whichever tasks that it sends out to the employees. And lastly, if the workflow software’s features are not exciting enough then there are other great features that this automation software has in store for its users. The workflow software can also do some visual status tracking of the tasks at hand, due data monitoring (which ensures every member of your team that a deadline has been set and has to be especially met by the employees, business rules). The workflow software will always make sure that the employees continuously adhere to the company’s rules and regulations, e-mail and database capabilities.
It is incredibly important for a company to have a well sorted out database in order to prevent people from panicking once a certain file has mysteriously disappeared most especially during the time that their boss needs it. All these are jam-packed in the workflow software automation wherein it will certainly be able to help you and your company, and most especially the employees to have a simplified working environment which is highly geared towards being able to produce the best results at any given time. The workflow software will actually enable employees to be able do their job well since they would not be scrambling for lost files anymore as well as all sorts of other hassles that may erupt when you are in a highly disorganized company. It is also equally important that the employees are highly skilled but their skills will not be a match to the cluttered chaos that will be caused by disorganization.
When it comes to workflow software, every company definitely has their own sets of procedures as well as methods that they implement when it comes to handling all sorts of day-to-day operations in and out of their companies such as the following: invoicing, time sheets, status reports, new account setup and you might as well include everything else that will be able to make your business tick. The term workflow in workflow software actually refers to the tasks, personnel, procedural steps, required information as well as the various tools that are needed for the steps that the business has to take in order for it to become successful.
Every company has a unique and different process as compared with other companies in the business, this is why a lot of growing companies usually end up with a highly unorganized business process when it comes to email templates, spreadsheets, shared documents, paper forms and even trivial knowledge which the employees should know in order to be able to handle the day-to-day business.
Majority of the time, such chaos and disorganization often leads to various frustrations and problems for the small company, such every day hassles include: missing paper work, missed deadlines, lost as well as incorrect information as well as extending heavily on working hours in order to complete a certain task. This is what usually happens to unorganized offices and is often referred to as “red tape.” The bottom line is that when the red tape starts getting on your customers nerves, it would soon be a downward spiral for your company as well.
So to your company’s rescue comes workflow software automation. But what exactly is a workflow software? And how can it help you out in this company crisis? Workflow software is actually still relatively new to the corporate setting wherein it is a combination of a to-do list as well as project management tool, only set on a different scale.
When it comes to workflow software just think of having a simple to-do list at your hands wherein through the workflow software, that to-do list can now also be accessible by other employees from your company through the company network. This simple to-do list can actually, on its own, keep track of all the items that need to be addressed by everyone in the company. Also, through the workflow software, once certain tasks are completed by the assigned company employees, the workflow software will actually automatically send off other to-do tasks to the appropriate company employees.
The workflow software is actually smart enough to also pass whichever documents or data that are needed to be able to perform whichever tasks that it sends out to the employees. And lastly, if the workflow software’s features are not exciting enough then there are other great features that this automation software has in store for its users. The workflow software can also do some visual status tracking of the tasks at hand, due data monitoring (which ensures every member of your team that a deadline has been set and has to be especially met by the employees, business rules). The workflow software will always make sure that the employees continuously adhere to the company’s rules and regulations, e-mail and database capabilities.
It is incredibly important for a company to have a well sorted out database in order to prevent people from panicking once a certain file has mysteriously disappeared most especially during the time that their boss needs it. All these are jam-packed in the workflow software automation wherein it will certainly be able to help you and your company, and most especially the employees to have a simplified working environment which is highly geared towards being able to produce the best results at any given time. The workflow software will actually enable employees to be able do their job well since they would not be scrambling for lost files anymore as well as all sorts of other hassles that may erupt when you are in a highly disorganized company. It is also equally important that the employees are highly skilled but their skills will not be a match to the cluttered chaos that will be caused by disorganization.
Can An Employee Survey Help You?
An employee survey can provide you with a good understanding of what is happening within your business when you are not there or what your employees think of working there. While any company can benefit from doing an employee survey, there are many reasons for those companies that have issues with such things as poor retention of employees and high turnover to those companies that have a low productivity level. Finding out what is happening behind the scenes will help you to determine what you can do to improve these situations.
For many of those who do an employee survey within their business, it is an eye opener. It can relate good things such as why employees like working with you and how well you pay them and treat them. But, it is also a great way of measuring ways in which you can improve. For many businesses, it can be a turning point.
Because the survey will be conducted through the use of a blind study, that means that the employees who partake in it can do so with the confidence of knowing that their opinions will not be judged or they will not receive harsh treatment if they do not provide good answers.
So, what areas can you learn about on the employee survey? You can learn about many areas from communication down to how well your management team is treating employees. You can learn of why people think about quitting and what things you can do to make things better for them. Little things are often important things to employees. You can also find out about really worrisome issues such as harassment and be more aware of what is really happening behind the scenes.
The employee survey can be done by any number of outside agencies who will provide for your employees a questionnaire. They will then review the information provided and come back to you with the information you need. You'll find that you have options in helping to create an employee survey or you can use a generic model as well. Whatever you choose, realizing that you can benefit from getting an employee survey taken care of is very important in helping your business take the next step forward.
For many of those who do an employee survey within their business, it is an eye opener. It can relate good things such as why employees like working with you and how well you pay them and treat them. But, it is also a great way of measuring ways in which you can improve. For many businesses, it can be a turning point.
Because the survey will be conducted through the use of a blind study, that means that the employees who partake in it can do so with the confidence of knowing that their opinions will not be judged or they will not receive harsh treatment if they do not provide good answers.
So, what areas can you learn about on the employee survey? You can learn about many areas from communication down to how well your management team is treating employees. You can learn of why people think about quitting and what things you can do to make things better for them. Little things are often important things to employees. You can also find out about really worrisome issues such as harassment and be more aware of what is really happening behind the scenes.
The employee survey can be done by any number of outside agencies who will provide for your employees a questionnaire. They will then review the information provided and come back to you with the information you need. You'll find that you have options in helping to create an employee survey or you can use a generic model as well. Whatever you choose, realizing that you can benefit from getting an employee survey taken care of is very important in helping your business take the next step forward.
Today I am going to talk about something that seems to be one of those things that people either love or hate. What I am talking about is network mark
There are a number of ways that you can find tax services companies. The yellow pages is a good place to start for companies in your area but, depending on where you live, the list of names may be extremely long. It is a good idea to ask your friends, colleagues and business partners to recommend the tax services that they have found helpful and efficient in the past. Then you can call the tax services professionals that you have on your list and discuss your requirements.
The first step in finding the best tax services for your needs is deciding what level of help you require. Perhaps you simply need someone who can file a simple tax return but has to wade through your slightly disorganized accounting documents, or maybe you have a number of employees and need
assistance sorting out their tax withholding s or you may even want all of these tax services, and more. The size of the tax services company may also be an issue. You may want one person to be able to perform all of your tax work, especially if you are only a small business owner or you may want a team of tax professionals and you want to find tax services that have a number of specialists available. Once you have identified the type of tax services then you can begin your search more easily. Your available tax services budget is obviously going to be an issue but you should try to allocate as much money as possible to ensure that you can afford the best possible tax services. Remember that you can incur heavy fines if you have incorrectly filed your tax return or are late paying any type of tax that your business is liable for.
Apart from professional qualifications and references one of the most important points to consider when assessing which of the tax services companies you want to use is whether you feel comfortable with the person you are dealing with. At the end of the day you are going to trust them with your financial records and it is essential that you feel that you can depend upon the person.
Every business, at some time, needs the help of some type of tax services at some stage. Large organisations usually have their own tax services department with accountants and tax lawyers but small companies often have to hire tax services on a regular basis to help keep their tax returns and other issues in order. It is important to know how to find the best tax services, no matter what type of business you are involved with.
The first step in finding the best tax services for your needs is deciding what level of help you require. Perhaps you simply need someone who can file a simple tax return but has to wade through your slightly disorganized accounting documents, or maybe you have a number of employees and need
assistance sorting out their tax withholding s or you may even want all of these tax services, and more. The size of the tax services company may also be an issue. You may want one person to be able to perform all of your tax work, especially if you are only a small business owner or you may want a team of tax professionals and you want to find tax services that have a number of specialists available. Once you have identified the type of tax services then you can begin your search more easily. Your available tax services budget is obviously going to be an issue but you should try to allocate as much money as possible to ensure that you can afford the best possible tax services. Remember that you can incur heavy fines if you have incorrectly filed your tax return or are late paying any type of tax that your business is liable for.
Apart from professional qualifications and references one of the most important points to consider when assessing which of the tax services companies you want to use is whether you feel comfortable with the person you are dealing with. At the end of the day you are going to trust them with your financial records and it is essential that you feel that you can depend upon the person.
Every business, at some time, needs the help of some type of tax services at some stage. Large organisations usually have their own tax services department with accountants and tax lawyers but small companies often have to hire tax services on a regular basis to help keep their tax returns and other issues in order. It is important to know how to find the best tax services, no matter what type of business you are involved with.
The rarely told truth about network marketing
Today I am going to talk about something that seems to be one of those things that people either love or hate. What I am talking about is network marketing, also called mlm or multi-level marketing. Right from the beginning I will say that there is no need to have extreme views about this, it is simply a business model that you can use if you wish.
However, it is crucial that you understand HOW the business model of network marketing works.
I think there are basically two reasons that some people seem to be almost electrocuted, simply by hearing someone mention the word network marketing. Either they have tried it themselves, and because they didn't have a clue on how to do it they failed miserably. Or they belong to the group of people who can't get the idea that mlm = pyramid scheme out of their heads.
This second misconception is easy to debunk. Pyramid schemes are illegal almost everywhere, do you really think large multinational companies could operate year after year on an entirely illegal basis?
Secondly, this view on network marketing shows that the speaker is ignorant. He or she hasn't done an ounce of homework on the various businesses that are available to each of us today, and they are ignorant of the industry itself.
This means they aren't serious. It means they "would like" to make more money, but have no intention of making it happen. They continually "look" for home businesses, which is enough to satisfy their minds that they "did everything they could", but everything they find out there is flawed and are "scams". They are looking to buy "hope", not a business.
There is a Chinese saying that goes something like this:"If you spend too much time thinking about your next step, you will be standing on one leg for the rest of your life". Yes, there ARE scams out there, but mlm is not a dirty word and it is not a synonym for scam. Get over it!
***********************************************
BREAKING NEWS! Corporate America a Pyramid Scam?
***********************************************
As for the comparison to a pyramid in general - think of any company that comes to mind. The company will probably have a CEO, president, vice presidents, middle management, a sales force, and hourly employees.
It goes without saying that the guy at the top, the CEO, is going to make the most money, and the compensations continue to decrease down the ladder which starts at his cushy leather chair. The only way to get paid more and move up the ladder is to boot someone else out of their spot - and this is what people call okay and normal!
Not to mention the fact that the corporate slave masters seem to have no problem with working people to the limits...and then kicking them out the door before any of the benefits kick in. (As always there are some exceptions, of course). How is this any less pyramid than network marketing? All people in the company work hard, but ONLY those at the very top has "permission" to make a lot of money.
Now, in network marketing the basic idea is that it will be of great benefit to everyone involved to help people who are new reach the top. In fact the whole business idea hinges on this idea - the only way to become really successful in the long term is to help others. Of course there will always be a mathematical limit to how large a network can become, but with todays global marketplace, and a suitable compensation plan, there is usually plenty of room for everybody.
A network marketing company can diversify and find new markets, just like all companies have to.
But what about the miserable statistics of network marketing, the over 90% drop-out rate etc.?
This is mainly caused by the simple fact that not that many people know how to do network marketing correctly. And I must admit that some network marketing companies are responsible for this themselves, by providing useless ideas like making a "100 list" etc.
You see, this is a somewhat unique industry. Most people don't realize that network marketing is a business of marketing and promotion pursued by people who have NO IDEA how to market and promote.
Read the above paragraph once more and let it sink in...
If you are going to be involved in network marketing you need to develop both the right mind set and acquire the right knowledge (no, they usually don't teach this in college).
You must learn that when you do this business right:
* You don't have to "sell"
* You don't have to ask people to join your business.. They ask you!
* You don't have to post "work at home" flyers!
* People will PAY YOU to prospect them
You should learn that this is not at all about the Vitamins or whatever product your company is selling. In fact, this is one of the single biggest mistakes people make in network marketing.
However, it is crucial that you understand HOW the business model of network marketing works.
I think there are basically two reasons that some people seem to be almost electrocuted, simply by hearing someone mention the word network marketing. Either they have tried it themselves, and because they didn't have a clue on how to do it they failed miserably. Or they belong to the group of people who can't get the idea that mlm = pyramid scheme out of their heads.
This second misconception is easy to debunk. Pyramid schemes are illegal almost everywhere, do you really think large multinational companies could operate year after year on an entirely illegal basis?
Secondly, this view on network marketing shows that the speaker is ignorant. He or she hasn't done an ounce of homework on the various businesses that are available to each of us today, and they are ignorant of the industry itself.
This means they aren't serious. It means they "would like" to make more money, but have no intention of making it happen. They continually "look" for home businesses, which is enough to satisfy their minds that they "did everything they could", but everything they find out there is flawed and are "scams". They are looking to buy "hope", not a business.
There is a Chinese saying that goes something like this:"If you spend too much time thinking about your next step, you will be standing on one leg for the rest of your life". Yes, there ARE scams out there, but mlm is not a dirty word and it is not a synonym for scam. Get over it!
***********************************************
BREAKING NEWS! Corporate America a Pyramid Scam?
***********************************************
As for the comparison to a pyramid in general - think of any company that comes to mind. The company will probably have a CEO, president, vice presidents, middle management, a sales force, and hourly employees.
It goes without saying that the guy at the top, the CEO, is going to make the most money, and the compensations continue to decrease down the ladder which starts at his cushy leather chair. The only way to get paid more and move up the ladder is to boot someone else out of their spot - and this is what people call okay and normal!
Not to mention the fact that the corporate slave masters seem to have no problem with working people to the limits...and then kicking them out the door before any of the benefits kick in. (As always there are some exceptions, of course). How is this any less pyramid than network marketing? All people in the company work hard, but ONLY those at the very top has "permission" to make a lot of money.
Now, in network marketing the basic idea is that it will be of great benefit to everyone involved to help people who are new reach the top. In fact the whole business idea hinges on this idea - the only way to become really successful in the long term is to help others. Of course there will always be a mathematical limit to how large a network can become, but with todays global marketplace, and a suitable compensation plan, there is usually plenty of room for everybody.
A network marketing company can diversify and find new markets, just like all companies have to.
But what about the miserable statistics of network marketing, the over 90% drop-out rate etc.?
This is mainly caused by the simple fact that not that many people know how to do network marketing correctly. And I must admit that some network marketing companies are responsible for this themselves, by providing useless ideas like making a "100 list" etc.
You see, this is a somewhat unique industry. Most people don't realize that network marketing is a business of marketing and promotion pursued by people who have NO IDEA how to market and promote.
Read the above paragraph once more and let it sink in...
If you are going to be involved in network marketing you need to develop both the right mind set and acquire the right knowledge (no, they usually don't teach this in college).
You must learn that when you do this business right:
* You don't have to "sell"
* You don't have to ask people to join your business.. They ask you!
* You don't have to post "work at home" flyers!
* People will PAY YOU to prospect them
You should learn that this is not at all about the Vitamins or whatever product your company is selling. In fact, this is one of the single biggest mistakes people make in network marketing.
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