Taking a Job When Your Business is Failing - And How it Might Even Save Your Business

February 22, 2013 By 1 Comment

On the surface, taking a job when it seems that your business is failing is just about the worst outcome for anyone who is self-employed. It appears as if your ship has sunk, and the fact that you have to take a job to replace lost income serves as confirmation of the fact not only to you, but to everyone who learns of it.

But there are reasons why you should not view this outcome as a failure. In fact, all it may be confirming is that you have hit a bump in the road that needs to be surmounted, and taking a job is how you will do it.

A failing business is a blow to the ego - but don’t over-react

If you have ever lost a job that was important to you and most are you can imagine that the loss of a business is pretty hard on the ego. In fact, it can be even worse with a business failure than with the loss of a job.

You probably put your heart and soul into building your business, and if it seems as if it’s about to fail it can be the emotional equivalent of the loss of a loved one. It’s hard not to take such an event very personally.

In truth however you should do all that you can separate yourself emotionally from the fact. If you can, you may recognize the fact that the failure of the business is only apparent. If you approach the situation logically, you may determine that it’s mostly a temporary situation that you need overcome, rather than a major life’s failure.

Most businesses ebb and flow - you may not have failed

The TV image of self-employment is that you quit your job, start a business, and five years later you’re a millionaire living on easy street for the rest of your life. In reality, 99% of business ventures don’t come close to that image.

Most businesses ebb and flow and income will rise and fall. Sometimes those fluctuations occur because the business is cyclical. There are short cycles, such as seasonal businesses, and longer cycles depending upon the industry that you are in. Real estate, for example, tends to be a long cycle business that goes through regular periods of boom and bust, each of which lasting several years.

If your business is in a cyclical decline, particularly a short-term one, it may just be a matter of riding out a rough spot. If the cycles are longer-term, you may have to have a long-term plan for dealing with the drought.

How taking a job might save your business

If your business is cyclical, or if it is going through a rough patch, getting a job could be just what’s needed to save it. The Idea is to never quit on your business!

Taking a job to ride out an income decline may buy you the time you need to get through to better times. If you are going to be an entrepreneur, you’ll have to learn to ride the ups and downs of your business. Taking a job to replace lost cash flow from your business, until circumstances improve, could be a sign of strategic brilliance.

You could for example take a full-time job, and reduce your business to a sideline. The idea will be to keep the business going, and to do what you can to increase cash flow, while you hold a job to pay your bills. Figure the job is temporary, and continue to focus on keeping your business going. The purpose of the job then will be to complement your business and not to replace it.

Think of taking a job as another income source

As a self-employed person, your highest priority is always maintaining and increasing your cash flow. Sometimes you’ll have to step out of the normal routine in order to do this. Getting a full-time job on a temporary basis could be just such a way of doing this. Think of the job as merely another income source a temporary one and it will seem less like a failure, and more like a way forward.

Making a living is more important than any business venture

Though it’s hard not to attach emotion and ego to your business, it’s important to realize that any income producing venture is first and foremost about making a living. That’s more important than whether the income is from either a job or your own business. Sometimes you just have to do what you need to do, and everything else needs to be put aside. If taking a job to supplement your income during a business downturn is necessary, just accept it as part of the process and push forward to a better future.

Don’t wait until it’s too late

If your business income is declining it’s best that you face that reality as soon as possible. If you need a job to supplement or replace your income, don’t agonize over it go out and get it. Delay could be the difference between saving your business and watching it go down the drain!

Many businesses fail because the owner gets caught in the classic deer in the headlights syndrome. Don’t let that be you! Take action as soon as you begin to feel the solvency of your business is in question. If nothing else, the steady income from a job could be what keeps you out of panic mode, and prevent you from making big mistakes that could sink your business forever.

Have you ever been self-employed and forced to take a job?

photo by alancleaver

Filed Under: Life Experience

Wise Investors Practice with a Forex Demo Account

February 20, 2013 By Leave a Comment

If you want to make money in the Forex Market, you have to determine what strategies will work best for you before you invest your money. You have to determine what natural trading instincts you have and what your strong points are.

The best way to be a good Forex trader is to use a Forex demo account. These accounts are great for both new and experienced traders alike and you will find that many of them come in the form of mobile apps or you can log onto them at any computer with web access. Also, your Forex demo account provider should respect you as a user by not harassing you with unsolicited sales contact, ever.

Newbies and Experienced Traders Gain Benefits from a Forex Demo Account

Most people understand that using a Forex practice account is an excellent idea for people that are new to Forex trading. However, those that have many years of experience with Forex might not feel that these accounts could be of use to them.

Before you spend your money on the current market as an experienced trader, you should always test out your strategies. When you use a demo account, you can practice trading under real market conditions like volatility and real time rates without risk. You will be able to trade gold and silver crosses as well as between 50 and 100 currencies. Once you’ve found your personal groove and successful trading style, you can start making some real world money.

Forex Practice Trading on the Go and What to Look for in a Forex Demo Account

Most demo accounts will allow you to trade from any computer with Internet access. Some even have mobile apps so that you can practice trading from your smartphone. It all depends on your online forex broker.

Once you’ve chosen the account you’re going to use, you want to make sure that you are not signing up for any additional marketing contact via email or even phone calls. If your account is free, then you might notice ads on your trading platform, but that’s to be expected. You might also get a regular email newsletter from the company, but a good company should not demand too much more of your time.

Filed Under: Investing

Online Trading

February 18, 2013 By Leave a Comment

In the past, an investor would need to call his or her broker to make a trade. Now, an investor with a computer and Internet access can trade with ease. Not only that, an investor can make trades with their smart phone applications. Online trading has exploded in the past 15 years as more people are comfortable with making their trades online. Of course, with trading online, an investor must choose a broker wisely.

Before looking for a brokerage house, a trader must define what they need in an online brokerage. Some investors may need to trade options while other investors will want to trade currency. When a trader knows what he or she wants, the trader can decide which brokerage company to choose. Of course, one must do a lot of research when choosing a brokerage company. You can find a few broker at forex.pn.

Sadly, a lot of investors will simply choose the cheapest broker. In reality, a trader should consider more factors than just price. When a broker has low fees, the trader can receive unfavorable trades and end up spending more money. A solid brokerage house should offer multiple ways to trade such as via phone apps and via the website.

Once an investor narrows down the choices, he or she should research the brokerage firm’s ratings. There are plenty of websites where a potential investor can read reviews about all of the online brokerages. One should take reviews seriously; though it should also be remembered that people with unpleasant experiences are going to be more vocal.

In the end, online trading is a powerful tool for an investor. When an investor can trade using the Internet, he or she can save money and make trades quickly. When taking the time to research the brokerages, a trader should not have trouble finding a solid online brokerage house.

Filed Under: Investing

How to Convert Your Passion in to an Income

February 15, 2013 By 8 Comments

Everyone these days seems to be chanting follow your passions and make more money - or some variation of that concept. In theory that sounds simple, not the least of which because most of us can identify our passions pretty quickly. The wrinkle in the directive is figuring out how to convert your passion in to an income.

It’s never as easy as hanging your shingle outside your front door inviting people to do business with you. If there is a market out there you will have to first identify it, then get the attention of enough potential clients, and only then will there be any income.

If you already know what your passion is, how can you convert that into an income in a way that will not have you running out of money on a marketing campaign before you even start making any money?

Fortunately, there are more ways than ever to market your business idea. Some are free, and some cost very little money. That will be important, since any marketing campaign is a long-term venture.

No one ever makes money just running a single a TV commercial; the payoff comes only after you run it hundreds of times in dozens of different markets. If you want to turn your passion into an income, you’ll have to do the same thing, and here are some ways you can without going broke.

Start a website or blog

One of the first, best ways to convert a passion into a business is by starting a website or blog. Nearly every business today needs a website, not just to advertise the business, but also as a place to transact business with their customers.

You can start your own website or blog for not a lot of money. You can get quality web hosting for just a few dollars a month, and then start your site with free templates, such as WordPress. You can build the site yourself, which is not all as difficult as it used to be, or you can hire someone on a contract basis to build one for you. It shouldn’t cost you more than a few hundred dollars total.

Make YouTube videos

If you have a computer and a web cam you can make your own YouTube videos very easily. All you need to do is pitch your product or service in the comfort of your own home, download the video on YouTube and then do what you can do promote it around the web. Think of it as creating your own TV commercial, except that it will cost you nothing!

YouTube is especially valuable if your potential market is national or global. Since YouTube cuts across state and national boundaries, it’s your opportunity to put your own commercials out to the world.

List your products and services on Craigslist

If YouTube is primarily for national or global reach, then Craigslist is at the opposite end of the spectrum. Advertising on Craigslist is primarily for your local market “ not just in your state or province but in your immediate metropolitan area. Best of all, advertising on Craigslist is free.

Craigslist is the online equivalent to the neighborhood or metropolitan newspaper. It is area specific, and is set up just like traditional classified advertisements.

Participate in seminars

There are a lot of people out there looking to start and promote businesses, and some of them are running seminars. If you could join with one or with several, related but not competing businesses, you may be able to add your own pitch at one or more seminars.

If you’re doing this with related businesses, there is a very good chance that you’ll get some of the customer base that other businesses are trying to reach. Check out what’s going on with business promotions and seminars in your area, and see if you can join in. .

Look to part-time jobs for experience and contacts

This isn’t an area most would-be business people would seek to promote their venture, but could be an excellent starting point. If your passion involves entering a business or career field that you have never been in in the past, getting a part-time job in the business can be an excellent point of entry.

Not only will you get valuable hands-on experience, but you’ll also gain important contacts that will make your business entry easier. And you’ll do it all on someone else’s payroll. It doesn’t get any better than that.

If you want to convert your passion into an income, you’ll almost certainly have to market your idea. If you’re going to do that, you’re going to have to think long-term. You can handle the marketing by paying little or no money, and you’ll have the flexibility to carry on your efforts for as long as it takes to succeed.

With that kind of lead time, you almost can’t help but hit pay dirt.

Do you have a passion you’re looking to convert to an income? Have you tried any of the venues above? Can you suggest others that are free or low cost?

photo by bigtallguy

Filed Under: Career

Insanely High Rates? How to Switch to a Better Credit Card

February 15, 2013 By 3 Comments

Breaking up is hard to do, but sometimes you just need to tell your credit card provider that it’s over. Whether it be that the interest rates on your current card are too high, and pushing you into debt, that the annual fees on your current card seem a bit exorbitant, or that you’re simply being left unimpressed by the service being given by your current provider, sometimes the best solution is to cut your losses and get a new card.

But this is easier said than done. Here are five key steps in switching to a better credit card:

1) Do your research

The Internet makes changing your credit card provider so much easier. Comparative websites will become your best friend in a world of products that seem to all do much the same thing to the untrained eye. These websites can show you everything from how to get a NAB Balance Transfer to help you pay off credit debt, to the range of high limit credit cards on the market, if you’re a big spender.

2) Decide whether a new card is right for you

This seems like a no-brainer. You’re probably saying: Well of course I think a new credit card is right for me, my old one is rubbish and I’m sick of it’s stupid fees. If I wasn’t sure, why would I have clicked on this article?But the thing is that if you’re the sort of person who wants to change credit cards, it means that there’s something wrong and changing cards might not always make it right. If you change cards too frequently, you will end up with a bad credit rating, which will hamper your financial prospects in the future.

3) Get rid of your card debt

If you find yourself consistently unable to make your repayments on your current card, stop. And read step one again. If you still think that you want to swap credit cards, you ideally don’ want to be carrying that debt around with you. Consider using a debit card for purchases in the interim between getting your new card and leaving your old provider. If it’s impossible to pay off your debt before joining a new provider, consider transferring the current debt onto a balance transfer card from a credit union, not a bank. These cards have a fixed interest rate, and can be useful in finally shaking that big, black cloud of debt.

4) Don’t burn bridges

It can be tempting to just call your current provider and tell them you’re leaving in the hope that you will threaten them into a better deal. Bad plan. Think about your credit rating. If you annoy your current providers too much, they may cut your credit limit, which will hurt your credit score. Cordiality is key.

5) Don’t be fooled by the shiny packaging

˜Only 1% interest for the first three months! bright new sign out the front of your bank will say. But don’t be fooled. Always read the fine print on special offers, particularly those with extra low introductory rates, as they nearly always mean ridiculously high fees and rates once the introductory period is over. Sometimes the bank’s old offer is better in the long run even if it doesn’t have such a spiffy billboard.

Author bio: Frances Ward is a Sydneysider who is teetering dangerously close to her credit limit this month. Perhaps a bank transfer is in order?

photo by eliazer

Filed Under: Credit, Debt

Why The Envelope System is Perfect for a Marriage

February 13, 2013 By 7 Comments

When it comes to marriage, we’re told that we have to value compromise, and nothing has turned out to be truer. I’ve found that compromise is the only way that two people with their own thoughts and opinions can comfortably work witenvelope systemh one another toward a common goal. One of the most important topics that we compromise and work on every day is our finances.

Of all the money management ideas that I’ve tried, I can say that the envelope system works especially well for my husband and me. The reason is because it’s easy, it’s predictable, and it helps to build good habits.

If you’re unfamiliar with the envelope system, it was popularized by none other than the personal finance guru Dave Ramsey. Essentially, you operate on a cash only basis, splitting up your paychecks into different categories and placing them into envelopes. (You can also purchase cute fabric envelops if you want to be environmentally friendly.)

Here are our categories:

Rent

Car Payment

Gas

Dates

Food

Oops!

 

Yes, we do have a category that says Oops!That’s what we use if we run out of money in one of the other envelopes! The only envelope that we typically burn through is Food.We often get tired after a long day at school/work, and we want to go out to eat to make our lives easier. We either need to budget a little more for food or cut the eating out habit a little more! We’re working on it, but that’s why the envelope system works for so many people. It shows you where you need to improve, and it helps you to remain accountable.

Some couples like to have an extra envelope for spending money, but when I set up the envelopes every month, I put a little bit of cash in my wallet and my husband’s wallet. This is for little things throughout the month that aren’t big enough to merit their own category. Because we use this system, we both feel like we have control over our financial future. We also feel like we are equal, because both of us are getting the same amount of money put in our wallets for incidentals.

This also builds a great sense of teamwork. While I typically have the envelopes in my possession, we both know that they’re there. We both know that we have limits and that every day we make choices on how we want to spend our money.

While every couple is different, I think it’s important to note that we still use a debit card for many of our monthly bills. For example, I always pay my student loans and cell phone bill with my card online. This is just an easier and more convenient form of payment for us. However, it’s the same payment every month so it’s very easy to budget.

Essentially, you can customize this system in whatever way suits your needs best. I know that there are many other ways you can organize your finances with your spouse. Many people have fun money accounts. Others concentrate more on using credit cards to build points. However, what’s important is that you and your spouse are both on board with your method of organizing your finances. For us, this system works best.

How do you and your spouse budget and organize your monthly expenses?

photo by vectorportal

Filed Under: Budgeting Tagged With: , ,

Start a Pension Early to Prepare for Retirement

February 11, 2013 By 5 Comments

If you are in your 20s or 30s and grafting away at work, it might be quite difficult to imagine a point in time 30 or 40 years down the line where you are retired and you are a man or woman of leisure.

Many people simply concentrate on the here and now, but how are you intending to live once you hang up your employment boots? What sort of retirement do you envisage having?
If it is one which involves comfort and living out some of your dreams without the need for debt advice in your latter years, then sorting outretirement a pension early in life is a must.

Most people get a state pension but this is only ever going to provide for your basic needs, therefore you should take the time to look around at different pension schemes in order to top up your funds for retirement.

With people now living longer and longer thanks to medical breakthroughs and changes in lifestyle, you need to try and save more money. Couple that with the rising cost of living which is only going to grow as we get older then it is advisable to
start putting away money for a rainy day as early as possible.

In simple terms, pensions work by you and sometimes your employer paying money into your pension on a regular basis say the start of the month, with funds coming straight out of your wage.

This is then invested so that the fund can grow over time depending on a number of different variables. It is likely that you will be asked to choose a fund based on risk factors, with each carrying different rates of interest.

Eventually, when you retire the pot of money will be paid to you for you to live off for the rest of your life. This could be a lump sum or regular income depending on how your pension scheme is set up.

The amount of money you get in your pension completely depends on how much you have saved, and there are a number of different ways you can do this.

Employers offer workplace pensions, often through a single provider, which you are entitled to join. In fact, the government has now introduced a new law which requires all employers to enrol their workers in to a qualifying workplace scheme if their staff are not already in one.

This move came into effect on October 1st last year, with individual employers’ duties coming into force over the next five years based on their size.

Starting early really does make a difference with pensions. A demonstration from Standard Life shows that if you started saving $200 per month from the age of 25 then the taxman would contribute $24,000. This figure is halved if you start your pension age 45.

Therefore, when retiring at the age of 65 and following the above rules, your pension would be worth in the region of $167,000 if started at 25, compared to just $67,100 if enrollment took place 20 years later.

Not only does starting a pension earlier in life allow you to reap rewards when it comes to retiring, but it gets you in to good financial habits at an earlier age. Being aware of things like pensions, their implications and how they work will make you aware of how important it is to look after your economic well being.

Picking up general practices of financial planning is a good thing, and it should ensure that you are more organised and clued up with other aspects of your income and outgoings.
The Citizens Advice Bureau also recommends starting a pension early in life, stating: “If you’re young, it’s tempting to think that pensions are for older people. But the earlier you start, the longer you’ll have to put money away. You may also have more options later on to retire early. People who leave saving till later in life can end up with smaller pensions or have to work longer to make up the money.”

If you are lucky, you should be looking forward to a long, healthy and happy retirement without the need for debt advice from a company like Debt Free Direct, but much will depend on planning ahead for when your working days are over.

photo by tax credits

Filed Under: Retirement

Tips on Gambling Responsibly

February 10, 2013 By 1 Comment

Gambling is a ubiquitous activity. You can gamble in a casino, at home with your friends, and even by yourself on a phone or computer. No matter where you choose to indulge in a game of chance, the keys to gambling responsibly remain the same. Following this etiquette will keep you safe from debt and will find you enjoying gambling rather than craving it.

The overall goal should be to keep it light and fun. Do not treat it as a job or another means of making money, because you most likely will not win much, if anything. The best way to keep the mood light is bringing your friends along when you gamble, as long as those friends are not heavy gamblers too. Still, close friends will keep an eye on each other better then other gamblers looking to steal your money.

If it is easy for you to get sucked into gambling on online casinos for hours it is best to keep any credit cards out of the picture. Especially in casinos, ATMs are everywhere and it would be too tempting to withdraw more money. Bring a safe amount of cash that in no way infringes upon money that should be going to you and your families necessities. This way you know you should leave when you are out of money and you will have no way of trying to win back your losses. If it is hard to keep track of your money, find a money management tool online that will aid you in determining how much money should be set aside for gambling activities.

It would also be wise not to mix alcohol with gambling on online casinos. Mixing the two will cause you to make irresponsible decisions. Other tips include keeping track of time and not borrowing money. As with any activity a person partakes in, it is best to keep it from becoming an addiction. Anything can become an addiction, but a gambling addiction will see you and your family paying a heavy price. Keep it fun and always have alternative hobbies and activities that you can spend time with.

So, at the end of the day, gambling responsibly is achievable, you just need to be smart about it and plan ahead! One such resource is http://www.jackpotcity.co.uk/mobile-casino/. They are a full fledged gambling resource you could try out and see if you can gamble responsibly!

Filed Under: Debt

Business Finance Options

February 10, 2013 By Leave a Comment

Even in the current economic downturn many businesses are starting up and others are spotting new opportunities for growth. To get a start up, or a new project off the ground quickly a business will often need to borrow money.

If you were to just listen to the news reports you’d be forgiven for thinking that finding finance to run, or better still grow, your business was an insurmountable task at the moment. If you have a project you need to get off the ground then finding the backing shouldn’t be a big hurdle with the right preparation and knowing where to look.

The Business Case: You should expect to be asked for a robust business case, and that seems reasonable anyway. It can be a good exercise to sit down and build your business case from scratch you will often have to face up to minor niggles and inefficiencies that you have got used to living with on a day to day basis, but when put on paper you realize that you have to do something about them.

You will find plenty of tutorials and samples online that you can base your case on. Your bank should be able to help too. But if you are looking to raise a considerable amount of capital it might be worth employing a professional to write your vision in a way that will appeal to the potential financier.

Borrowing money, the personal loan: If you haven’t been in business long, or you are just about to set out into the scary but exciting world of being self employed then you might need to borrow money from friends and family to help you start up.

An alternative could be a personal loan from the bank. You could even use your credit cards to raise a small sum but if you do be most conscious of the interest rate you are likely to pay, and the fact that drawing cash on a card results in immediate interest charges.

If you have some wriggle room in a mortgage it could be cheaper to borrow back up to your loan limit or perhaps have a word with your parents about doing just that.

The business loan: If you have been in business for a while and you can provide healthy accounts than you should be able to arrange a business loan from your bank. While it may be a little more expensive than a personal loan, remember that the finance charges on a business loan are usually tax deductible.

Likewise if you own your business premises then it might be worth considering a business mortgage on your premises, or an alternative is a sale and lease back of the land, or perhaps some of your longer life assets. With a sale and leaseback deal you retain the use of the asset, but you realize its value in a lump sum. In return you pay a monthly lease for its use including an interest payment which is usually tax deductible.

Invoice Finance: Many businesses find that while their turnover is good, they have a problem with creditors taking too long to pay their invoices and this leads to a cash flow problem. A potential solution is an invoice finance arrangement that releases much of the value of the invoice back into the business for a small fee, or interest paid on the amount financed. The service can often be discrete if the business doesn’t want its customers to become suspicious that the business might be in trouble. Although in actual fact so many businesses use invoice finance, or factoring as it’s often called that it is just considered good business sense. You can talk to an independent factoring broker to find the best deal from a lender experienced in your market.

Don’t let a lack of funds hold you back. If you know what you’re doing and can demonstrate a healthy potential for your business then you should be able to raise the capital you need to grow.

Filed Under: Budgeting, Investing

How To Stay Motivated To Stick To A Budget

February 8, 2013 By 1 Comment

February is here, and that means many of us are losing steam when it comes to our New Yea’s Resolutions.

While I’ve already accomplished some of my New Year’s Resolutions, I’m still lagging when it comes to others, like running regularly and eating better!

In fact, when I think about it, sticking to an exercise plan is very similar to sticking to a budget. They both take a significant amount of time, dedication, hard work, and accountability.

So, how can I stay motivated to run and at the same time, stay motivated to budget? Well, that’s easy. The same principles apply! Check out the motivators below:

Motivation: The Realization That It’s Good For You

I know that running is good for me. I have to stay in shape, I’m young, and there’s no reason why I shouldn’t be able to run for a mile straight (so far, I can only run a half mile before I have to start walking!) Running keeps my blood pumping and my heart rate high, which is good for my long-term health.

Similarly, budgeting is also good for me. It helps me to keep my finances in tip top shape. When I budget, I know exactly how far I’ve come and how far I need to go to reach my goals. Budgeting keeps my money organized, which helps me to avoid late fees and frustrations down the road.

Motivation: You Can’t Let Your Friends & Family Down

I absolutely cannot motivate myself to go running by myself. I will definitely cut corners and stop before I’m supposed to. However, when I am meeting a friend or running with my husband, I know I have to go a certain speed and run for a certain amount of time.

Similarly, when you budget, friends and family are great motivators to keep you on track. Do you and your spouse want to save for a house? Budget together! Do you want to pay off your student loans so you can finally declare yourself debt free? Tell your friend about it, and ask her to check in on your progress. Start a blog, get a twitter account; it doesn’t matter how you do it. What’s important is that you find a way to announce your budgeting goals to the world, so you won’t want to let them down. That’s motivation enough!

Motivation: Visualize The Reward At The End of The Road

As I run and my legs start burning, I really, really don’t want to keep going. Yet, when I visualize how I’ll look when I’m in tip top shape, it makes me what to keep putting one foot in front of the other. I know that nothing worthwhile comes easy, and I know that being in great shape won’t just fall out of the sky. I have to keep working, and that means remembering where I’ll be at the end of the road.

Similarly, I know there’s nothing enjoyable about eating in when you really want to go out. I know it’s hard to pass on the Starbucks coffee or that cute pair of shoes. Budgeting can really take the fun out of day-to-day life, but once you get the hang of it and start getting financially secure, it’s actually so much better than anything you could ever buy for yourself.

So remember, it’s all about the end goal (not the journey) when it comes to budgeting and running! I hope that the motivational techniques listed here can help you to have a happy and healthy 2013.

What are some ways that you stay motivated?

photo by psousa

Filed Under: Budgeting Tagged With: ,