SAN FRANCISCO--The recession and economic turmoil is creating a new class of casualties: Married couples who can't afford to get divorced. In these tough times many people are finding it's cheaper to stay together, even when they can't stand each other.
"The reason that the economy has such an enormous impact on divorce is that most people in the middle-income brackets are getting by on whatever income they have. They're just getting by," said Bonnie Booden, a family law and divorce attorney in Phoenix.
A major factor in the divorce downturn, Booden said, is divorced couples have to establish two separate households with current funds -- a prohibitive factor when you're looking at divorce in tough economic times.
Booden said one out of every two clients is seeking consultations because they can't afford to get divorced. They want to know what other options they might have.
"I tell them about the process, about the cost, and what a reasonable outcome might be. And once they hear the cost, and especially how you have to duplicate two households on the same money that currently funds one household, they try to think about some other options," she said.
Some clients have split up bedrooms and continue to live in the same house, she said. Some split child-care duties so they don't have to deal with each other and live that way until they can figure out what to do. "And I've had people who just throw in the towel and get divorces anyway, creating financial ruin for themselves," she said.
Circuit courts across the country report downturns in the number of divorce and separation filings. Cook County's Circuit Court in Chicago saw a 5% decrease in filings -- about 600 cases -- in the first three quarters of 2008 compared to the same period last year. Similar drops were reported in other cities across the country.
This domestic situation is also confirmed in a poll by the American Academy of Matrimonial Lawyers. The AAML surveyed its members -- all divorce lawyers -- and found that 37% of them have seen a decrease in the number of couples seeking a divorce, while just 19% saw an increase in divorce cases.
Gary Nickelson, president of the American Academy of Matrimonial Lawyers, said people are just, "toughing it out" and putting off the decision to divorce until the economy gets better.
"We're in a perfect storm as far as the divorce business is concerned," Nickelson said. "It's not a surprise to me. That's been my experience over the last 35 years. When you have an economic downturn people are not so quick to change their situation."
Out of options
Some people who come to Booden's office have come from marriage counselors, she said. By the time these couples get to her, she said, they've pretty much run out of options.
Typically, she said she tries to arrange a deal where both parties continue to own their house. She'll split up the equity and apply an interest rate to it to make it reasonable to the person not living in the house, and then distribute the cash when the house is sold after the kids go to college.
"People have to realize the financial meltdown changed everything," she said. That sentiment is echoed by the AAML's Nickelson. "As long as stocks and financials and major assets are down, you're probably going to see a lot of people wait to file for divorce. There's a lot of fear in filing for divorce," he said. "I think that cuts across all genders, races, and all social economic ranges."
Marty Orgel is a freelance writer in the San Francisco Bay Area.
Read more...
Tuesday, December 23, 2008
Divorce Rates Drop as Couples Stay Together Due to Tight Finances
Monday, July 7, 2008
How to Successfully Navigate Your Business through an Economic Downturn
Terry H. Hill
While economic downturns are admittedly difficult, and are formidable obstacles to small businesses that are trying to survive and grow, an economic downturn can open up opportunities. A well-managed company can realize the opportunity to gain market share by taking customers away from their competitors. Resourceful entrepreneurs capture the available opportunities, from an economic downturn, by developing alternate methods of doing business that were never implemented during a prior growth period.
The challenge of successfully navigating your business through an economic downturn lies in the realignment of your business with current economic realities. Specifically, you, as the business owner, need to renew a focus on your core clients/customers, reduce your operating expenses, conserve cash, and manage more proactively, rather than reactively, is paramount.
Here are best practices that will help you to successfully navigate your business through an economic downturn:
Goals:
The primary goal of any business owner is to survive the current economic downturn and to develop a leaner, more cost-effective and more efficient operation. The secondary goal is to grow the business even during this current economic downturn.
Objectives:
• Conserve cash.
• Protect assets.
• Reduce costs.
• Improve efficiencies.
• Grow customer base.
Required Action:
• Do not panic… History shows that economic downturns do not last forever. Remain calm and act in a rational manner as you refocus your attention on resizing your company to the current economic conditions.
• Focus on what YOU can control… Don’t let the media's rhetoric concerning recessions and economic slowdown deter you from achieving business success. It´s a trap! Why? Because the condition of the economy is beyond your control. Surviving economic downturns requires a focus on what you can control, i.e. your relevant business activities.
• Communicate, communicate, and communicate! Beware of the pitfall of trying to do too much on your own. It is a difficult task indeed to survive and to grow your business solely with your own efforts. Solicit ideas and seek the help of other people (your employees, suppliers, lenders, customers, and advisors). Communicate honestly and consistently. Effective two-way communication is the key.
• Negotiate, negotiate, and negotiate! The value of a strong negotiation skill set cannot be overstated. Negotiating better deals and contracts is an absolute must for realigning and resizing your company to the current economic conditions. The key to success is not only knowing how to develop a win-win approach in negotiations with all parties, but also keeping in mind the fact that you want a favorable outcome for yourself too.
Recommended Best Practice Activities:
The Nuts and Bolts… The following list of recommended best practice activities is critical for your business' survival and for its growth during an economic downturn. The actual financial health of your particular business, at the outset of the economic downturn, will dictate the priority and urgency of the implementation of the following best practice activities.
1. Diligently monitor your cash flow: Forecast your cash flow monthly to ensure that expenses and planned expenditures are in line with accounts receivable. Include cash flow statements into your monthly financial reporting. Project cash requirements three-to- six months in advance. The key is to know how to monitor, protect, control, and put cash to work.
2. Carefully convert your inventories: Convert excess, obsolete, and slow-moving inventory items into cash. Consider returning excess and slow-moving items back to the suppliers. Close-out or inventory reduction sales work well to resize your inventory. Also, consider narrowing your product offerings. Well-timed order placement helps to reduce excess inventory levels and occasional material
shortages. The key is to reduce the amount of your inventory without losing sales.
3. Timely collection of your accounts receivable: This asset should be converted to cash as quickly as possible. Offer prompt payment discounts to encourage timely payments. Make changes in the terms of sale for slow paying customers (i.e. changing net 30 day terms to COD). Invoicing is an important part of your cash flow management. The first rule of invoicing is to do it as soon as possible after products are shipped and/or after services are delivered. Place an emphasis on reducing billing errors. Most customers delay payments because an invoice had errors, and therefore, will not pay until they receive a corrected copy. Email or fax your invoices to save on mailing time. Post the payments that you have received and make deposits more frequently. The key is to develop an efficient collection system that generates timely payments and one that gives you advance warning of problems.
4. Re-focus your attention on your existing clients/customers: Make customer satisfaction your priority. A regular review of your customers' buying history and frequency of purchases can reveal some interesting facts about your customers' buying habits. Consider signing long-term contracts with your core clients/customers which will add to your security. Offer a discount for upfront cash payments. The key is to do what it takes to keep your current customers loyal.
5. Re-negotiate with your suppliers, lenders, and landlord:
i) Suppliers: Always keep your negotiations on the level of need, saying that your company has reviewed its cost structure and has determined that it needs to lower supplier costs. . Tell the supplier that you value the relationship you have developed, but that you need to receive a cost reduction immediately. Ask your supplier for a lower material price, a longer payment cycle, and the elimination of finance charges. Also, see if you can buy material from them on a consignment basis. In return for their price concessions, be willing to agree to a long-term contract. Explore the idea of bartering as a form of payment.
ii) Lenders: Everything in business finance is negotiable and your relationship with a bank is no exception. The first step to successful renegotiations is to convince your lenders that you can ultimately pay off the renegotiated loan. You must point out to your lenders why it would be in their best interest to agree to a new arrangement. Showing them your business plan and your action plan that includes your cost-savings initiatives, along with "the how" and "the when" of the implementation of your plan is the best way to achieve this goal. Explain to them that you will need their cooperation to insure that you can survive, as well as, grow your business during the economic downturn. Negotiated items include: the rate of interest, the required security to cover the loan, and the beginning date for repayment. A beginning date for repayment could be immediate, within several months or as long as a year. The key is to realize that your lender will work with you, but that frequent and continual communications with them is critical.
iii) Landlord: Meet with your landlord. Explain your need to have them extend the term of your lease at a reduced cost. Make sure you have a clause in the lease agreement that entitles you to have the right to sublet any or all of the leased space.
6. Re-evaluate your staffing requirements: This is a very critical area. Salaries/wages are a major expense of doing business. Therefore, any reduction in the hours worked through work schedule changes, short-term layoffs or permanent layoffs has an immediate cost saving benefit. Most companies ramped up hiring new employees in the good times, only to find that they are currently overstaffed due to slow sales during the economic downturn. In terms of down-sizing your staff, be very careful not to reduce your staff to a level that forces you to skimp on customer service and quality. Consider the use of part-timers or the current trend of outsourcing certain functions to independent contractors.
7. Shop for better insurances rates: Get quotations from other insurance agents for comparable coverage to determine whether or not your present insurance carrier is competitive. Also, consider revising your coverage to reduce premium costs. The key is to have the right balance-to be adequately insured, but not under or over insured.
8. Re-evaluate your advertising: Contrary to the other cost-cutting initiatives, evaluate the possibility of increasing your advertising expenditures. This tactic realizes the advantage of the reduced "noise" and congestion (fewer advertisers) in the marketplace. The downturn period a great opportunity to increase brand awareness and create additional demand for your product/service offerings.
9. Seek the help of outside advisors: The use of an advisory board comprised of your CPA, attorney, and business consultant offers you objectivity and provides you with professional advice and guidance. Their collective experience in working with similar situations in past economic downturns is invaluable.
10. Review your other expenses: Target an across-the-board cost-cutting initiative of 10-15%. Attempt to eliminate unnecessary expenses. Tightening your belt in order to weather the downturn makes practical, financial sense.
Proactively managing your business through an economic downturn is an enormous challenge and is critical for your survival. However, through well-planned initiatives, an economic downturn can create tremendous opportunity for your company to gain greater market share. In order to take advantage of this growth opportunity, you must act quickly to implement the above best business practices to continue realigning and resizing your company to the current economic conditions.
Copyright 2007-2008 Terry H. Hill
Internet Marketing And A Future Financial Focus
In every business the predominant idea is to set goals that help you conduct business smarter, learn lessons faster and bring more business to your site.
The problem is many entrepreneurs tend to stay focused on their bottom line and to product fulfillment issues. By doing so they may indeed find themselves in the same place 12 months from now. They may also find their business has declined in total sales revenue.
How is that possible?
This is an interesting question especially when, from all appearances, the business owner IS paying attention to their business and that the sales are brisk. It can also seem baffling when it appears that the business owner is busier than they have ever been.
The problem may be that some of the details of business should be delegated to other employees, especially if the business is of significant size.
The sad truth is some business owners are spending too much time in the mailroom and not enough time in long-term strategic planning. Online business grows as new ideas are developed and implemented.
It is not unlike an architect spending all his or her time developing the entryway of a new luxury hotel while failing to draw up plans for the rest of the building. It looks nice from the outside, but the inside is in disarray.
What this means, in the broadest terms, is that you need to pay attention to all aspects of your online business. If you don’t feel adequate to manage certain aspects of the business then find someone who can. When you neglect certain aspects of your business you will almost always run the risk of a loss of long-term business. You will also be subjected to feast or famine cycles where you may have more work than you can handle for a period of time and not enough work for an equal or greater length of time.
It’s a given that you find your business to be an important part of your life. You have invested a lot in the success of your business and that investment is too great to simply allow glaring marketing omissions to go unchallenged.
Sometimes business owners adopt an out of sight - out of mind mentality. They avoid those things that are not on their immediate radar. They push back all those things that are not fires to attend only the tyranny of the urgent.
Internet marketing is one of the very first things to be cast from view for many businesses. The reason this is true is because the role of marketing seems to have little intrinsic value for those online shops that are currently doing a brisk business. It appears to be a sign that they did everything right and can move on to the role of bean counter.
Learn the art of balancing your business interests and include marketing as a prime component for achieving future goals.
Sunday, July 6, 2008
Interesting Facts About Cell Phones
by: Roberto Sedycias
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Besides the standard voice function of a telephone, latest cell phones (telefone celular) have features such as SMS for text messages, MMS for multimedia messages, radio, games, internet connectivity for email, browsing, blogging, music (MP3) playback, memo recording, built-in cameras and camcorders, ringtones, personal organizers, Push-to-Talk (PTT), Bluetooth and infrared connectivity, call registers, streaming video, downloading video, video call, and also serve as wireless modems for PCs that can be connected to the Internet.
The power in a cell phone (telefone celular) is obtained from rechargeable batteries, which can be recharged from the mains, a USB port or a cigarette lighter port in an automobile. Nickel Metal Hydride were the most common types of batteries, which due to the "memory effect" (the user can recharge only when the entire battery is drained off) were replaced by Lithium-Ion batteries, which did not suffer from any memory effect.
Cell phones (telefone celular) came into existence because of the invention of hexagonal cells in 1947, for the base stations by Bell Labs engineers at AT&T. This was further developed during the 1960s by Bell Labs. During a call, the channel frequency could not be changed automatically from one cell (base station coverage area) to another cell (base station coverage area) as the person traveled from the area of one cell to the area of another cell. Amos Joel of Bell Labs invented a breakthrough invention and called it as the `call handoff` by which the channel frequency could be changed automatically from one cell to another cell, during the same call, as the mobile user traveled from one cell to another cell. Due to their heavy construction, these phones were used mainly in automobiles.
The first practical cell phone in a non-vehicle setting, and which could be handheld, was invented by Martin Cooper, the General Manager (Communications Division) of Motorola, who made the world`s first handheld cell phone (telefone celular) call on April 3, 1973.
The technology by which the cell phone (telefone celular) works depends on the mobile phone operator; however, all of them use electromagnetic radio waves, which are in touch with a cell site (base station). The base station is composed of several antennas which are mounted on a pole, tower, or building. Cell sites are spread at a distance of 5 to 8 miles (approx. 8 to 13 km) from each other. The low power transceiver from the cell phone transmits the voice and data to the nearest cell site. During movement, the cell phone will "handoff" the information to other cell site. Mobile phone operators use many technologies to maintain the smooth stream of digitized data from the cell phone to the cell site and vice versa.
The wireless telephone technologies are grouped under heads known as generations, starting from zero generation or 0G. The current generation going on is 4G; however, there are old cell phones (telefone celular) that still operate on 1G, 2G, and 3G technologies. The wireless telephone technologies used in each generation are as given below:
0G: PTT, MTS, IMTS, AMTS, OLT, MTD, Autotel/PALM, ARP
1G: NMT, AMPS/TACS/ETACS, Hicap, CDPD, Mobitex, DataTac
2G: GSM, iDEN, D-AMPS, IS-95/cdmaOne, PDC, CSD, PHS, GPRS, HSCSD, WiDEN, CDMA2000 1xRTT/IS-2000, EDGE (EGPRS)
3G: W-CDMA, UMTS (3GSM), FOMA, TD-CDMA/UMTS-TDD, 1xEV-DO/IS-856, TD-SCDMA, GAN (UMA), HSPA, HSDPA, HSUPA, HSPA+, HSOPA
4G : UMB, UMTS Revision 8 (LTE), WiMAX
Frequency bands: SMR, Cellular, PCS
The impact of cell phone (telefone celular) usage on human health has been of considerable worldwide concern. Research studies in Copenhagen, from the Danish Institute of Cancer Epidemiology, the National Cancer Institute, and the Institute of Cancer Research, do not establish any link between cancer and cell phone usage. However, an intergovernmental agency IARC (International Agency for Research on Cancer) forming part of the World Health Organization of the United Nations, undertook a study of 4,500 users and found a statistically significant link between cell phone usage and tumor frequency. Further research is going on.
Cell phone (telefone celular) usage and driving is a common worldwide phenomenon. Some jurisdictions have banned usage of hand-held phones during driving, but allowed the hands-free fashion of cell phone usage while driving. However, studies have found out that the distraction is caused by the conversation itself; hence, both hand-held and hands-free cell phones contribute towards road traffic accidents. Further studies on cell phone usage and driving are going on.
Nokia Corporation is currently the world`s largest manufacturer of cell phones (telefone celular). Other notable cell phone manufacturers, in alphabetical order, are 3G, Audiovox (now UT Starcom), Benefon, BenQ-Siemens, Fujitsu, High Tech Computer Corporation (HTC), Kyocera, LG Mobile, Motorola, NEC, Panasonic (Matsushita Electric), Pantech Curitel, Philips, Research In Motion, Sagem, Samsung, Sanyo, Sharp, Siemens, Sierra Wireless, SK Teletech, Sony Ericsson, T&A Alcatel, Toshiba, and Verizon.
Rising costs to dominate G8 talks
Rising costs to dominate G8 talks
Rising food and fuel prices are set to top the agenda for leaders of the world's major industrialised nations as they start a key summit in Japan.
The hosts had hoped climate change would be a top issue at the meeting of the Group of Eight (G8) nations but the global economy is sure to dominate.
At the opening lunch, African leaders will set out the effect price rises are having on the world's poorest people.
The summit is also expected to tackle the difficult issue of Zimbabwe.
Food focus
The G8 summit has opened at a resort on the northern island of Hokkaido.
Leaders from member nations - Britain, Canada, France, Germany, Italy, Japan, Russia and the United States - will be joined by counterparts from some 15 other countries, including eight African states.
Japan has spent a record sum of money and deployed about 20,000 police to seal off the remote lakeside town of Toyako for the three-day talks.
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The impact on the global economy of price rises and other shocks such as the credit crunch have eclipsed other concerns, correspondents says.
The BBC's political editor, Nick Robinson, who is travelling to the summit with the UK prime minister, says Gordon Brown will join other leaders in calling for the doubling of food production in Africa.
Our correspondent says the G8 may call for the creation of a panel of international experts to advise on how to predict and hopefully avoid another crisis like this.
The EU has already been spelling out plans to alleviate the food crisis.
European Commission President Jose Manuel Barroso told reporters on the sidelines of the summit the proposed 1bn euro ($1.6bn, $800m) fund to help poor farmers in developing countries would come from unused EU subsidies.
It could help improve farmers' access to seeds and fertilisers, and could provide "safety net measures for the most vulnerable", he said.
The G8 leaders may also face tough questions on aid commitments to Africa.
Three years ago they promised to double aid to the continent by 2010 - but campaigners say they are falling far short of that target.
As well as discussing development issues in Africa, the G8 leaders are widely expected to condemn Robert Mugabe's controversial re-election in Zimbabwe last month.
As he headed to the summit, UN chief Ban Ki-moon said he would discuss the crisis with African leaders there.
Zimbabwe's political parties should "work out an arrangement so that they can really bring back democratic rules, the rule of law and peace and stability in their country", he told the French news agency AFP.
Malaysia summit
A number of other bilateral meetings are taking place on the sidelines of the summit.
Mr Bush, attending his last G8 summit, and Russian President Dmitry Medvedev, attending his first, are expected to discuss the US plan for missile defence installations in the Czech Republic and Poland.
Why not talk about stopping the wars in the world, as most of the G8 countries manufacture and supply the weapons
Mr Brown will also have talks with Mr Medvedev.
Meanwhile, the charity Water Aid has told the G8 that the single most effective measure it could take to prevent the deaths of millions of children in poor countries would be to build toilets and provide clean water.
Hundreds of protesters again marched through Sapporo on Sunday, the city closest to the venue, on the eve of the talks to demand G8 leaders take action on global warming, poverty and rising food prices.
The demonstration, which followed a similar protest on Saturday, was heavily policed and ended peacefully.
Violent anti-globalisation marches have marred past G8 meetings.
As the G8 got under way in Japan, leaders of the world's largest Islamic nations assembled for what is being billed as the D8 summit in Malaysia's capital, Kuala Lumpur, with the issue of inflation high on the agenda there. Read more...McCain campaign calls Obama's words into question
(CNN) -- Sen. John McCain's campaign said Sunday that Barack Obama's remarks on Iraq "have left a significant question as to exactly what he intends."
Sen. John McCain's campaign says Barack Obama has not been consistent on Iraq.
"He has held almost every conceivable position in the course of his relatively brief career in the Senate," said Randy Scheunemann, McCain's foreign policy adviser.
Obama maintains his stance has not changed and said Saturday that "every single word" he says is closely measured.
McCain's campaign suggested Obama's views could be becoming more in line with McCain's Iraq policy.
"The position of [McCain's] campaign is that words do matter, and Sen. Obama's words have left a significant question as to exactly what he intends. If he is now joining Sen. McCain's position and saying that the need to maintain peace and stability in Iraq is a prerequisite before responsible withdrawal, which is Sen. McCain's position, we welcome his conversion to that position," Scheunemann said Sunday in a conference call with reporters.
The war over words started Thursday when Obama told reporters questioning his stance on Iraq that he will "continue to refine" his policies as warranted.
Obama denied any suggestion that he was shying away from his proposed 16-month phased withdrawal of all combat troops from Iraq, calling it "pure speculation" and adding that his "position has not changed."
National reporters and Republicans pounced on his comments. The Republican National Committee put out an e-mail statement saying that Obama was backing away from his position on withdrawal.
Speaking Sunday on CBS' "Face the Nation," Sen. John Kerry defended Obama and accused Republicans of avoiding "reality."
"The Republicans, and John McCain specifically, are trying desperately to get away from the reality of John McCain's position, which is that he has a plan for staying in Iraq and Barack Obama has a plan for getting out of Iraq... [Obama's position] is no change whatsoever in his fundamental determination to end the war," said Kerry, D-Massachusetts.
On the same program, Sen. Lindsey Graham of South Carolina suggested that Obama's stance would lead to failure.
"We're winning because John McCain understood Iraq better than anybody else. The surge has worked. The political, economic and military progress in Iraq is undeniable... The only way we can lose this war now is to go down the road that Obama suggests," he said.
Obama on Saturday said he was "puzzled by the frenzy" surrounding his words and maintained he's been "very consistent on Iraq."
Speaking to reporters Saturday as he flew from Butte, Montana, to St. Louis, Missouri, Obama said, "I was a little puzzled by the frenzy that I set off by what I thought was a pretty innocuous statement, which is that I am absolutely committed to ending the war."
Asked if he felt reporters made a mistake, Obama said, "I'm not trying to dump on your guys, but I'm surprised at how finely calibrated every single word was measured. I wasn't saying anything that I hadn't said before, that I didn't say a year ago, or when I was a U.S. senator. If you look at our position, it's been very consistent. The notion that we have to get out carefully has been a consistent position," he said.
Obama held a second news conference on Thursday to clarify his remarks.
Obama placed some of the blame for the confusion on the McCain campaign, saying "I think what's happened is that the McCain campaign primed the pump with the press to suggest that somehow we were changing our policy when we hadn't and that just hasn't been the case. I've given no indication of a change in policy ... I think John McCain's going to have a much harder time explaining how he is willing to perpetuate a presence in Iraq for 10, 20, 50 years."
Meanwhile, both candidates will turn their focus to key battleground states as they court voters across the country this week. 
Coming off a three-day swing through Colombia and Mexico, McCain is expected to tout his plan to create new jobs. He kicks off his week in Denver, Colorado, on Monday.
Both McCain and Obama will speak Tuesday at the League of United Latin American Citizens in Washington.
McCain has a town hall meeting scheduled in Portsmouth, Ohio, later this week, and Obama has events scheduled in Georgia and North Carolina -- two Republican-leaning states.
Obama is also expected to team up with former rival Hillary Clinton for three fundraisers in New York, according to an Obama spokeswomen.
Two of the fundraisers are aimed at raising money for Obama's Democratic presidential campaign, and one is to try to retire the debt from Clinton's failed effort to win the nomination.
On Thursday morning, they will appear together at a women's fundraising breakfast for Obama. All of the events are private. Read more...In Tough Economic Times, Beware These Critical Nest-Egg Mistakes
BOSTON--Recession or not, these are fast becoming hard times, and hard times can lead to bad decisions.
Recently, the Financial Industry Regulatory Authority warned investors to think twice before taking steps that might compromise their nest eggs, such as taking out a reverse mortgage, getting a 401(k) debit card, or cashing in life insurance policies to weather tough financial times.
"Each of these should be considered strategies of last resort," Mary Schapiro, chief executive of the Financial Industry Regulatory Authority said last week in a speech.
"They may raise cash quickly, but each also carries long-term consequences that can undermine financial security in retirement and pose the potential for losing a significant, and sometimes irreplaceable, asset," Schapiro said. FINRA is a nongovernmental organization that oversees U.S. security firms.
According to FINRA, Americans are faced with the perfect financial storm. Rising costs of fuel and food, declines and volatility in the housing and financial markets, and an ever-tightening credit crunch have gathered to form a storm that could lead some Americans to make poor financial decisions. "But tough financial times don't necessarily justify resorting to risky ways to make ends meet," Schapiro said.
Investors could be risking their most valuable assets when they use reverse mortgages, life settlements and 401(k) debit cards to tap much-needed cash.
Retirement accounts
Don't cut back on or stop contributing your 401(k) and, even more importantly, don't cash in all or part of your 401(k). To be sure, plan providers do allow hardship withdrawals in certain situations -- if you face eviction from or foreclosure on your primary residence, for instance, or some other financial calamity.
But if you are under age 59-1/2 and there is no hardship, you'll have to pay ordinary income tax on the withdrawal plus a 10% penalty tax. What's more, many employers will withhold 20% of the amount being withdrawn, so it's possible that a $20,000 withdrawal works out to less than $14,000 when all is said and done.
FINRA also warns that such withdrawals come with another cost - opportunity cost. If you're 40 years old with $40,000 in your 401(k) and it's growing at 6% percent year, excluding additional contributions that money would be worth $107,710 in 17 years. But if that same person withdraws $20,000, that remaining $20,000 would be worth just $53,855 in 17 years. In other words, a withdrawal of $20,000 now costs about $54,000 in future growth.
Worse yet, FINRA warns, creditors have access to any money taken out of a 401(k), be it a loan or hardship withdrawal, in ways they wouldn't if you left the money in a retirement account. Under the Bankruptcy Abuse Protection and Consumer Protection Act of 2005, creditors cannot touch your 401(k) balance or similar retirement savings account -- even if, as a last resort, you file for bankruptcy protection, FINRA said. Of note, balances in IRAs (Roth and traditional) are protected up to a limit of $1 million from creditors.
There are other benefits to maintaining contributions to your 401(k). Contributions reduce taxable income and lower your tax bill. Plus, 401(k) contributions often come with free money: Employers typically match a percentage of your contribution.
That said, if you really need the money from your 401(k), FINRA suggests taking out a loan rather than a withdrawal. You might be able to borrow money at a lower interest rate than a bank would offer. Plus, you won't have to pay taxes on the loan as you would with a withdrawal. Also, if your employer offers one, avoid using a 401(k) debit card, FINRA said.
Life settlements
Don't cash in your life insurance policy using something called a life settlement, FINRA warns. With a life settlement, a third party will buy your life insurance policy from you, typically for more than the cash value but less than the death benefit. According to FINRA, life settlements can be a valuable source of liquidity if you would otherwise surrender your life insurance policy or allow it to lapse, or if your life insurance needs have changed. But life settlements are not for everyone, FINRA said.
For instance, life settlements can have high transaction costs and unintended consequences. You might be unable to buy a new insurance policy, plus you could lose state or federal benefits, such as Medicaid. Also, you will have to pay taxes on the life settlement.
If you really need the money from your life insurance and you still need the coverage, FINRA suggests you borrow against your policy, or check whether you are eligible for accelerated death benefits. If you have a long-term, catastrophic, or terminal illness you might be able get a reduced benefit prior to dying.
Reverse mortgages
If you are over age 62 and have equity in your house, a reverse mortgage might sound intriguing. With a reverse mortgage, you get to convert the equity in your house to cash, plus you get to age in place, in your home. What's more, you don't have to make any interest or principal payments during the life of the loan.
But as with all things that sound too good to be true, especially something that sounds too good to be true for what could be your single largest asset and a future source of retirement income, there's a catch with reverse mortgages. For one thing, the loan costs can be steep. Also, interest is added to the principal, making reverse mortgages "rising debt" loans.
"The bottom line is that reverse mortgages are an expensive option that may prematurely deplete your home equity," FINRA said. "A reverse mortgage is a very serious decision."
Consider, for instance, some of the disadvantages FINRA outlined:
The income or lump sum you receive could impact you or your spouse's eligibility for various state and federal benefits, including Medicaid. Depending on the laws of your state, a reverse mortgage may not enjoy the same home-equity protection that would otherwise apply against creditors, or if you have a health emergency and your spouse must liquidate assets to pay for nursing home care. A reverse mortgage is not the right choice if you want to leave your house to your heirs.
A reverse mortgage may be right for you. But you need to evaluate a number of factors, including your health, your spouse's health, other sources of income, the reason you're tapping your home equity, when to do it, and how wisely you use your loan proceeds - before deciding whether a reverse mortgage is right or not.
What are some alternatives to a reverse mortgage? According to FINRA, you could sell your house and then downsize or rent, or take out a home equity loan, or get help from your children or local government assistance program. Any of those tactics could unlock the equity in your home without the cost of a reverse mortgage.
Copyright © 2008 MarketWatch, Inc.
Friday, July 4, 2008
Gran, 70, gives birth to twins
A 70-YEAR-OLD Indian woman has become the world’s oldest mum after giving birth to twins.
Omkari Panwar, the wife of a retired farmer, delivered a boy and girl by caesarean section on Friday.
The frail pensioner, who has two adult daughters and five grandchildren, underwent IVF treatment to produce a male heir to the family’s smallholdings.
Mum ... Omkari Panwar, 70
Her husband, Charan Singh Panwar, 77, mortgaged his land, sold his buffalos, spent his life savings and took out a credit card loan to finance the treatment.
“At last we have a son and heir,” he said. “We prayed to God, went to saints and visited religious places to pray for an heir.
“We kept no stone unturned and God has rewarded us. The treatment cost me a fortune but the birth of a son makes it all worthwhile. I can die a happy man and a proud father.”
Record
The twins, born one-month premature and weighing only two pounds each are healthy and expected to survive, according to doctors at Jaswant Roy Speciality Hospital.
Family ... Omkari and relatives
Omkari, who has no birth certificate and does not know the day she was born, uses the date of India’s independence in 1947 to guess her age.
She said she was nine when the British Raj left India meaning she is now 70.
She lives in Muzaffarnagar, seven hours drive north of the capital New Delhi.
Romanian Adriana Iliescu, who gave birth to a daughter, aged 66 in 2005, is the world’s previous oldest mother.
After being told she had beaten the record by four years, Omkari said: “If I am the world’s oldest mother it means nothing to me. I just want to see my new babies and care for them while I am still able.”
Gynaecologist Nisha Malik, who performed an emergency operation on the 70-year-old said: “I was shocked when this old lady told me she was pregnant. I have been practising medicine for 20 years and I have never heard of such a case.”
Read more...Tuesday, July 1, 2008
Top 10 Reasons Why you should NOT "go" on a Diet
by: Holly Rigsby
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It's a Fact - Diets will only make you fatter.
When it comes to the latest in Diet fads, we are quite gullible and easily tempted by a Diet's empty promised. Reason being....the diet industry KNOWS we are in search of the "quick fix" and will only play with our emotions - our desperation for the quickest way to relieve looking and feeling fat.
Diets are nothing more than Temporary Solutions with many lingering, negative side effects.
Here are the Top 10 Reasons Why you should NOT "go" on a Diet
1. Diets do NOT work.
Diets have a 99% Failure Rate. Have you noticed a pattern yet? Lose weight....quickly regain it? Over time, studies show if you diet you are more likely to be overweight than people who eat normally and make small gradual changes to their lifestyle. No, the Law of Averages does not apply to this faulty system.
2. Dieting can be Dangerous.
Any time you severely restrict the amount or types of foods you eat you put your health and life at risk. Dieting has been related to injuries and sudden deaths from electrolyte imbalance, malnutrition, and heart arrhythmia's. Weight cycling, or yo-yo-ing weight, is associated with higher death rates - especially if some type of pills are being used. At no point should you ever place weight loss above your health.
3. Dieting Destroys your Metabolism.
Diets will cause your weight to quickly cycle up and down. Sure, you may lose weight quickly because you are simply not eating enough. In the initial stages, the first seven to nine pounds lost are water, presenting a real danger of dehydration and mineral deficiencies. Even more terrifying ins the break down of lean muscle due to inefficient nutrients and calories. If you are losing more than 3-4 pounds a week, you can be sure this is what is happening - very little fat is lost this state.
Now, any muscle loss will cause your metabolism slow to a crawl. The cumulative effect takes place for you cannot survive very long on very low calories (1200 or less) and you will eventually eat more - on top of a slower metabolism. All those excess calories will be stored as fat - causing rapid weight gain.
4. Dieting is Exhausting.
Diets are just reduced calorie Fads disguised by a clever gimmick. "Lose weight while you sleep" "Eat all you want and still lose weight" Not eating enough or cutting out certain food groups means your body may not be getting the energy it needs, or may lack certain nutrients. You will feel exhausted, light headed and experience some not-so-fun mood swings.
5. Dieting is Disruptive.
Dieting negatively affects your normal eating patterns. Diets can lead to binge eating, overeating and chaotic eating. When you diet, it is common to override your internal signals telling you to eat. You end up trying to use willpower or resist hunger signals and may even go as far as taking appetite suppressants. This results in being unable to know when you really are hungry or wore....when you're full.
6. Dieting can lead to eating disorders.
Experts state that the high rates of eating disorders in the U.S. are due in part to people dieting, losing weight, rebounding, and becoming chronic dieters.
7. Dieting Causes Food Obsessions.
If you spend a large amount of time and energy depriving yourself of food or certain types of food - you will spend more time thinking about food and become obsessed attempts to control your weight by what you choose to eat or not eat. How long do you want to live like this?
8. Dieting Diminishes Women.
There is way too much attention focused on our appearance and an arbitrary number on the scale. In the midst of this focus - we end up avoiding what really matters to us - our dreams and ambitions. Even worse, it erodes our confidence and self-respect.
9. Dieting Intensifies Negativity.
If you diet, you are more judgmental and critical of yourself and others. Once again, wasted time and energy.
10. Diets Put Your Life on Hold.
Does this sound familiar...."I'll be happy when I weigh "x pounds." Guess what, the issues in your life are not related to your weight. Take responsibility and take back control of your life. Decide to be happy now and do what it takes to live a lifestyle that reflects your priorities.
So this year resolve to NOT go on a Diet. Set Yourself Free from this miserable, guaranteed to fail weight loss cycle. Do NOT let the diet industry make money by taking advantage of you. It is time to stand up for yourself and take control.
Brainwave Entrainment” Can Help You Dramatically Improve Your Mental Abilities!
Brainwave Entrainment” Can Help You Dramatically Improve Your Mental Abilities!
by: Sonika Gandotra
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I am a great fan of Stephen Pierce and recently I came across his website in which he talked about Brainwave Entertainment. I think it will be worth while to disseminate such a crucial piece of information with people who are interested in good health.
I have just taken the few facts from this website in this article for everybody,s benefit:
Recently, professionals in the areas of psychology, neurology, medical health and self-help have begun utilizing the power of brainwave entrainment in their work with patients.
What is brainwave entrainment? It is a relatively young but rapidly growing field that involves the study of how altering brainwaves naturally can allow people to easily enter states of increased intelligence, creativity, relaxation, pure energy and more!
Here’s the science behind this incredible breakthrough: The brain is made up of billions of brain cells called neurons, which communicate with each other using electrical signals.
All of these neurons sending signals at once produce a large amount of electrical activity commonly called a Brainwave pattern, because of its “wave” or cyclic-like nature.
Researchers and scientists have found that different bands of brainwaves are associated with different mental states. For instance, the brainwaves of a sleeping person are much different than the brainwaves of an individual who is wide awake.
Years of research has shown that brainwaves not only provide insight into an individual’s mind and body, but they can be stimulated to actually change that person’s current state.
By causing the brain to produce or decrease specific types of brainwave frequencies, it is possible to bring about a large variety of mental states and emotional reactions.
How does this work? “Entrainment” is a principle in physics, where two cycles synchronize naturally with each other in order to work more efficiently. Entrainment is applied to chemistry, astronomy, electrical systems and much more – but can also be applied to the brain.
When the brain is provided with a stimulus, through the ears, eyes or other senses, it emits an electrical charge in response. This is called a Cortical Evoked Response. These electrical responses travel throughout the brain to become what an individual sees and hears.
When the brain is given a consistent, repeating stimulus, such as drum beats or flashes of light, the brain responds by synchronizing, or entraining, its electric cycles to the external rhythm. This is commonly called the Frequency Following Response (or FFR), and it can be used to effectively alter the brainwave pattern of the audience.
This I personally realised after listening to the scientifically proven Beta Brainwave Entertainment to understand that we have an all access pass to the high performance peak state that our world’s greatest achievers know intimately.
The EEG visual shown at the beginning of this article was taken while observing the effects of Beta Brainwave Entertainment on an independent listener. This visual reading not only proves that Beta Brainwave Entertainment works, but powerfully demonstrates how quickly your mind can be optimized and your cerebral functioning accelerated.
The Baseline (left-side) illustrates the listener’s brainwave activity prior to listening to Brainwaves. The Beta Increase (right-side) shows the considerable increase in beta activity after just 20 minutes of listening to Beta waves.
Brainwave research on cognitive performance has pointed to the mid Beta brainwave frequencies as the zone to create a super focus mental state, intellectual endurance, and optimize your brain to handle intensive task with high levels of mental stamina.
As you listen to your brainwaves will be entrained into the Beta brainwave zone and have you mentally fine tuned for success.
If you have ever dreamed of realizing your full potential and receiving all the benefits that will help you to quickly and easily unleash your mental powers and achieve your dreams. Listen to this audio and you will:
Sharpen your mental focus, attention, and concentration
Enhance your thinking speed and clarity
Improve your ability to remember and recall information
Increase your mental energy and alertness
And much, much more
you can be experiencing acute concentration, accelerated cognition and amazing mental states that the most focused and zoned achievers on the planet know.
Think of the tremendous impact this could have on your life! and improving your mental efficiency could:
Help you excel in your career
Improve the quality of your life
Improve your marriage
Make you more content
Make you more confident
And much, much more!
If you wish to receive more info on this subject, you can visit http://www.1shoppingcart.com/app/?af=714431 Read more...
The Coming Age Of HDTV - What Does It Mean To Me?
by: Lloyd Howard
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HDTV - high-definition television: it is something that has been discussed for some time now, however not everyone has a strong sense of what it is and why he or she would want to have it. Because all television stations will be required to broadcast a digital signal after February 17, 2009, many viewers are beginning to ask a lot more questions about how the new digital age of television will affect their personal viewing experience. They want to know whether or not their television set will be compatible, whether or not they will have to replace it, and what steps they will have to take in order to keep watching their favorite shows. How To Identify If Your Television Is An Analog TV Analog television has been with us since the inception of television broadcasting. Analog is the old way of processing a television signal. Television technology took a big leap in the 1960's with the transition from television tubes to circuit boards, but that conversion failed to bring with it any major strides in the quality of the television picture. If your current television does not have a logo on its front that indicates DTV (Digital TV), EDTV (Enhanced Definition TV), or HDTV, then your television set is an analog TV. Understanding The Transition From An Analog Signal To The New Digital Signal Digital image processing is a technology that began in earnest during the 1970's, when Japanese technology companies began to explore the concepts of HDTV. The Japanese TV manufacturers were exploring ways to improve the picture quality of the television image, as a way to find more customers for their television products. While Americans were busy playing with building the computer industry, the Japanese were hard at work trying to build a better television set. The first HDTV systems developed by the Japanese still relied on the old analog system of sending a broadcast signal to their televisions, but they were still able to produce a better television viewing experience. When initially introduced to the U.S. Government, the new HDTV system produced a myriad of concerns, which included the issue of an analog HDTV-system needing more bandwidth than what was currently allotted to the television broadcasters. In 1993, a consortium of American researchers and manufacturers (known as The Grand Alliance) joined forces to find a way to bring HDTV-quality to the American public, while keeping the bandwidth requirements of broadcasters within the existing limits. Researchers soon understood that they would need to push at least part of the television signal in a digital format to make sure that HDTV could be transmitted within the limits currently allotted to the television broadcasters. By the time they had finished their work, the Grand Alliance had created a system that was 100% Digital. In 1995, after considerable opposition from the television broadcast industry, the U.S. Federal Communications Commission officially set the standard for completely digital HDTV broadcasting system. This put into motion the events that are just now coming to fruition, with the rollout of the new Digital Television broadcasting system. Although most television stations have been broadcasting a Digital Television Signal now for a few years, analog television owners have been none the wiser. But that will all change on February 17, 2009. Will My Analog Television Stop Working In 2009? The simple answer is "yes", but that does not mean that you will have to buy a new television in order to get the new digital broadcasts. While you may not need to replace your television set, you may have to make changes in how you get your television signal. There are in fact three ways that the average consumer can continue to get a television signal using their old television set: 1. Subscribe to a cable television service (and use their digital television converter); 2. Subscribe to a satellite television service (and use their digital television converter); or 3. Buy a DTV converter (Digital TV Converter) to receive signals from your analog antenna and to convert that signal back to analog, so that you can continue to use your analog television. (If you receive your television signal over-the-air, the Federal Government has implemented a Coupon Program to help consumers offset the cost of the DTV converter boxes: http://www.ntia.doc.gov/dtvcoupon/index.html ) Understanding The Three Facets Of The New Digital Technology 1. Lines Of Resolution The newer digital technology is all about Lines Of Resolution. With more lines of resolution, the viewer will receive more image information, therefore bringing the viewer much more picture clarity and detail. When the Japanese rolled out HDTV on the Japanese mainland, the lines of resolution numbered 1080. To put this into perspective, the standard analog TV signal exhibits 330 lines of resolution. This makes it more than clear that the original analog HDTV format really was a real issue for television broadcasters in the United States. To produce a resolution of 1080 lines on a system designed for 330 lines would have literally required three times the bandwidth of the current analog system. Here are the standard television resolutions: * Analog Television - 330 Lines of Resolution * VCR's - 240 Lines of Resolution * DVD's - 480 Lines of Resolution * EDTV - 720 Lines of Resolution * HDTV - 1080 Lines of Resolution There is a caveat to this chart though. The minimum requirement of the FCC is that broadcasters must produce a minimum of 720 Lines of Resolution. As a result, some broadcasters like ABC chose the 720-resolution, and yet they can still legally call their programming standard, HDTV. Other broadcasters like PBS opted for the higher 1080 format. Good for them. In 1998, when the first HDTV's became available to the buying public, the Headline News newscasters were joking that with the rollout of HDTV, we the audience would be able to see every blackhead and blemish on their faces. Of course, they were probably correct in that assumption. The detail of the HDTV-signal is absolutely amazing. 2. Aspect Ratio Another factor connected to the new HDTV-format is the Aspect Ratio. In a standard analog television, the Aspect Ratio is a 4-by-3, which nearly looks square. The 4-by-3 ratio means that it can be measured 4-parts wide to 3-parts high. With the new HDTV format, the Aspect Ratio has been changed to the same format seen in the movie theatre - a 16-by-9 Aspect Ratio, or 16-parts wide to 9-parts high. 3. Sound Quality The third factor connected to the new HDTV-format is Sound Quality. In fact, most HDTV programming will carry with it Dolby Digital 5.1 surround sound, as frequently heard on DVD's. So long as you have a surround sound unit attached to your television set, the surround sound will enable to the television viewer to be immersed in the sound, so much so as it often feels as if you are in the middle of the action happening on your television set. In Conclusion... While it is true that you do not need to upgrade your television from the analog format to the new digital format, you might seriously consider doing so anyway. Now that we are quickly approaching the end of the analog-television era, the cost of HDTV television sets has fallen considerably. Whereas five years ago, the average HDTV cost in the range of $3-4,000, the cost of most HDTV's has fallen to under $1200 today. After February 17, 2009, the cost of HDTV should drop again, making it much more affordable to the general public. Although it will be possible to convert the digital television signal to analog, you will lose the extra picture detail on the conversion. So, if you stick with your analog television, you will be restricting yourself to the quality of picture you are currently receiving, even after the change in television broadcasting formats is complete. Although color-technology was first introduced to audiences with the release of The Wizard Of Oz in 1939, color television did not become mainstream until the late-1960's. And although the technology of color was mainstream, black-and-white televisions were still being manufactured and sold well into the 1980's. Fortunately, this transition will be a bit quicker than the conversion from black-and-white to color. Under the FCC rules for the transition to digital television, television manufacturers were required to include a digital tuner in all television sets manufactured after March 1, 2006. This conversion is much like the transition from AM to FM as the standard listening medium in the radio industry. Radio listeners could not listen to FM stations until which time they had upgraded their radio from AM to the AM/FM format. The same thing will happen here as well. If you want to receive the beautiful, high-quality HDTV images, you will need to upgrade to a television set capable of displaying the HDTV images. If you have any lingering doubts about the better HDTV standard, all you need to do is to visit your local television store and see for yourself just how awesome of a picture HDTV actually produces. Just as Dolby Digital Surround Sound enables the listener to feel as if they are in the middle of the action on the television, HDTV permits the viewer to feel as if they are standing in the same room as the actors, on the sidelines at the football game, or on the same beach as the models - it really is that good of a picture. |
Home Based Business Tips for Newbie
Home Based Business Tips for Newbie
by: Tsuyoshi Suzuki
A major concern of all Home Based Business Entrepreneurs is to get Traffic to their websites. Most people who have searched for a suitable home based Internet Business opportunity complain about a common illness: They are sick and tired of websites that promote best home based Internet Business opportunities… sick and tired of the false promises, the over-hyped sales pitches, and the downright SCAMS that lurk behind most Internet Business opportunities. Millions of people around the world have had the dream of finding the perfect home based business and being able to fire their boss.
Starting a home based internet business can be a run away success if the website comes up within the first 20 results of organic searches. Promoting your Internet Business Offline is a great way of getting over this problem and at the same time creating an image for yourself and your Home Based Business. Hence SEO is one of the main tools for your websites promotion as well as marketing, when starting a home based internet business.
Looking at the above statistics and statements, you must have gathered a basic picture in your mind on how important SEO can be to your starting a home based internet business. If you are new to the Internet business, you might feel that you would prefer to remain anonymous because you are still learning the trade and have no expertise to share. Once you’ve decided what you are going to sell on the internet and how, you venture online to search for profitable home based business opportunities that appeal to you.
In addition to diversifying your online business, you should also take a few other things in account that are unique to the problems that home based business owners face. These are just a few of the reasons that you should consider diversifying your business. Promoting an home business calls for 3 things: increasing traffic to your website, selling goods/services that are worth the money and retaining/adding to your customer base.
In order for your internet home business to be successful, your website must well set up so that it attracts the traffic you need, and so that the visitors who will come to your website will make you some money. For your business to be successful, it is important that you constantly improve your website or products/services, and you can achieve this by having a feedback form on your website. The final fear to overcome when thinking about putting your photo on the Internet for your website, is that you are not good looking or just don't photograph well.
One of the easiest, low capital and requirement little knowledge and skill initially to build a home based business is to join a MLM or network company. Another way is to get into the mind of the small home business owner. As a Web Designer or a Business owner wearing a Web Designer Hat it seems you have 2 Choices, do what seems right and in many ways best and use a Pretty Directory Structure and Loose Ranking points or Throw out the Directory Structure and Gain Ranking Points.
Tsuyoshi E. Suzuki makes it easy to build your home based business and earn a substantial income. Finally, you should make sure that lifetime support for your profitable home based business opportunity is provided. For more information, make sure you follow the link in the recourse box below now. Read more...
Home Based Business Tips for Newbie
Home Based Business Tips for Newbie
by: Tsuyoshi Suzuki
A major concern of all Home Based Business Entrepreneurs is to get Traffic to their websites. Most people who have searched for a suitable home based Internet Business opportunity complain about a common illness: They are sick and tired of websites that promote best home based Internet Business opportunities… sick and tired of the false promises, the over-hyped sales pitches, and the downright SCAMS that lurk behind most Internet Business opportunities. Millions of people around the world have had the dream of finding the perfect home based business and being able to fire their boss.
Starting a home based internet business can be a run away success if the website comes up within the first 20 results of organic searches. Promoting your Internet Business Offline is a great way of getting over this problem and at the same time creating an image for yourself and your Home Based Business. Hence SEO is one of the main tools for your websites promotion as well as marketing, when starting a home based internet business.
Looking at the above statistics and statements, you must have gathered a basic picture in your mind on how important SEO can be to your starting a home based internet business. If you are new to the Internet business, you might feel that you would prefer to remain anonymous because you are still learning the trade and have no expertise to share. Once you’ve decided what you are going to sell on the internet and how, you venture online to search for profitable home based business opportunities that appeal to you.
In addition to diversifying your online business, you should also take a few other things in account that are unique to the problems that home based business owners face. These are just a few of the reasons that you should consider diversifying your business. Promoting an home business calls for 3 things: increasing traffic to your website, selling goods/services that are worth the money and retaining/adding to your customer base.
In order for your internet home business to be successful, your website must well set up so that it attracts the traffic you need, and so that the visitors who will come to your website will make you some money. For your business to be successful, it is important that you constantly improve your website or products/services, and you can achieve this by having a feedback form on your website. The final fear to overcome when thinking about putting your photo on the Internet for your website, is that you are not good looking or just don't photograph well.
One of the easiest, low capital and requirement little knowledge and skill initially to build a home based business is to join a MLM or network company. Another way is to get into the mind of the small home business owner. As a Web Designer or a Business owner wearing a Web Designer Hat it seems you have 2 Choices, do what seems right and in many ways best and use a Pretty Directory Structure and Loose Ranking points or Throw out the Directory Structure and Gain Ranking Points.
Tsuyoshi E. Suzuki makes it easy to build your home based business and earn a substantial income. Finally, you should make sure that lifetime support for your profitable home based business opportunity is provided. For more information, make sure you follow the link in the recourse box below now. Read more...
Internet Marketing And A Future Financial Focus
Internet Marketing And A Future Financial Focus
by: Scott Lindsay
How to Successfully Navigate Your Business through an Economic Downturn
by: Terry H Hill
| An economic downturn is a phase of the business cycle in which the economy as a whole is in decline.This phase basically marks the end of the period of growth in the business cycle. Economic downturns are characterized by decreased levels of consumer purchases (especially of durable goods) and, subsequently, reduced levels of production by businesses. While economic downturns are admittedly difficult, and are formidable obstacles to small businesses that are trying to survive and grow, an economic downturn can open up opportunities. A well-managed company can realize the opportunity to gain market share by taking customers away from their competitors. Resourceful entrepreneurs capture the available opportunities, from an economic downturn, by developing alternate methods of doing business that were never implemented during a prior growth period. The challenge of successfully navigating your business through an economic downturn lies in the realignment of your business with current economic realities. Specifically, you, as the business owner, need to renew a focus on your core clients/customers, reduce your operating expenses, conserve cash, and manage more proactively, rather than reactively, is paramount. Here are best practices that will help you to successfully navigate your business through an economic downturn: Goals: The primary goal of any business owner is to survive the current economic downturn and to develop a leaner, more cost-effective and more efficient operation. The secondary goal is to grow the business even during this current economic downturn. Objectives: • Conserve cash. • Protect assets. • Reduce costs. • Improve efficiencies. • Grow customer base. Required Action: • Do not panic… History shows that economic downturns do not last forever. Remain calm and act in a rational manner as you refocus your attention on resizing your company to the current economic conditions. • Focus on what YOU can control… Don’t let the media's rhetoric concerning recessions and economic slowdown deter you from achieving business success. It´s a trap! Why? Because the condition of the economy is beyond your control. Surviving economic downturns requires a focus on what you can control, i.e. your relevant business activities. • Communicate, communicate, and communicate! Beware of the pitfall of trying to do too much on your own. It is a difficult task indeed to survive and to grow your business solely with your own efforts. Solicit ideas and seek the help of other people (your employees, suppliers, lenders, customers, and advisors). Communicate honestly and consistently. Effective two-way communication is the key. • Negotiate, negotiate, and negotiate! The value of a strong negotiation skill set cannot be overstated. Negotiating better deals and contracts is an absolute must for realigning and resizing your company to the current economic conditions. The key to success is not only knowing how to develop a win-win approach in negotiations with all parties, but also keeping in mind the fact that you want a favorable outcome for yourself too. Recommended Best Practice Activities: The Nuts and Bolts… The following list of recommended best practice activities is critical for your business' survival and for its growth during an economic downturn. The actual financial health of your particular business, at the outset of the economic downturn, will dictate the priority and urgency of the implementation of the following best practice activities. 1. Diligently monitor your cash flow: Forecast your cash flow monthly to ensure that expenses and planned expenditures are in line with accounts receivable. Include cash flow statements into your monthly financial reporting. Project cash requirements three-to- six months in advance. The key is to know how to monitor, protect, control, and put cash to work. 2. Carefully convert your inventories: Convert excess, obsolete, and slow-moving inventory items into cash. Consider returning excess and slow-moving items back to the suppliers. Close-out or inventory reduction sales work well to resize your inventory. Also, consider narrowing your product offerings. Well-timed order placement helps to reduce excess inventory levels and occasional material shortages. The key is to reduce the amount of your inventory without losing sales. 3. Timely collection of your accounts receivable: This asset should be converted to cash as quickly as possible. Offer prompt payment discounts to encourage timely payments. Make changes in the terms of sale for slow paying customers (i.e. changing net 30 day terms to COD). Invoicing is an important part of your cash flow management. The first rule of invoicing is to do it as soon as possible after products are shipped and/or after services are delivered. Place an emphasis on reducing billing errors. Most customers delay payments because an invoice had errors, and therefore, will not pay until they receive a corrected copy. Email or fax your invoices to save on mailing time. Post the payments that you have received and make deposits more frequently. The key is to develop an efficient collection system that generates timely payments and one that gives you advance warning of problems. 4. Re-focus your attention on your existing clients/customers: Make customer satisfaction your priority. A regular review of your customers' buying history and frequency of purchases can reveal some interesting facts about your customers' buying habits. Consider signing long-term contracts with your core clients/customers which will add to your security. Offer a discount for upfront cash payments. The key is to do what it takes to keep your current customers loyal. 5. Re-negotiate with your suppliers, lenders, and landlord: i) Suppliers: Always keep your negotiations on the level of need, saying that your company has reviewed its cost structure and has determined that it needs to lower supplier costs. . Tell the supplier that you value the relationship you have developed, but that you need to receive a cost reduction immediately. Ask your supplier for a lower material price, a longer payment cycle, and the elimination of finance charges. Also, see if you can buy material from them on a consignment basis. In return for their price concessions, be willing to agree to a long-term contract. Explore the idea of bartering as a form of payment. ii) Lenders: Everything in business finance is negotiable and your relationship with a bank is no exception. The first step to successful renegotiations is to convince your lenders that you can ultimately pay off the renegotiated loan. You must point out to your lenders why it would be in their best interest to agree to a new arrangement. Showing them your business plan and your action plan that includes your cost-savings initiatives, along with "the how" and "the when" of the implementation of your plan is the best way to achieve this goal. Explain to them that you will need their cooperation to insure that you can survive, as well as, grow your business during the economic downturn. Negotiated items include: the rate of interest, the required security to cover the loan, and the beginning date for repayment. A beginning date for repayment could be immediate, within several months or as long as a year. The key is to realize that your lender will work with you, but that frequent and continual communications with them is critical. iii) Landlord: Meet with your landlord. Explain your need to have them extend the term of your lease at a reduced cost. Make sure you have a clause in the lease agreement that entitles you to have the right to sublet any or all of the leased space. 6. Re-evaluate your staffing requirements: This is a very critical area. Salaries/wages are a major expense of doing business. Therefore, any reduction in the hours worked through work schedule changes, short-term layoffs or permanent layoffs has an immediate cost saving benefit. Most companies ramped up hiring new employees in the good times, only to find that they are currently overstaffed due to slow sales during the economic downturn. In terms of down-sizing your staff, be very careful not to reduce your staff to a level that forces you to skimp on customer service and quality. Consider the use of part-timers or the current trend of outsourcing certain functions to independent contractors. 7. Shop for better insurances rates: Get quotations from other insurance agents for comparable coverage to determine whether or not your present insurance carrier is competitive. Also, consider revising your coverage to reduce premium costs. The key is to have the right balance-to be adequately insured, but not under or over insured. 8. Re-evaluate your advertising: Contrary to the other cost-cutting initiatives, evaluate the possibility of increasing your advertising expenditures. This tactic realizes the advantage of the reduced "noise" and congestion (fewer advertisers) in the marketplace. The downturn period a great opportunity to increase brand awareness and create additional demand for your product/service offerings. 9. Seek the help of outside advisors: The use of an advisory board comprised of your CPA, attorney, and business consultant offers you objectivity and provides you with professional advice and guidance. Their collective experience in working with similar situations in past economic downturns is invaluable. 10. Review your other expenses: Target an across-the-board cost-cutting initiative of 10-15%. Attempt to eliminate unnecessary expenses. Tightening your belt in order to weather the downturn makes practical, financial sense. Proactively managing your business through an economic downturn is an enormous challenge and is critical for your survival. However, through well-planned initiatives, an economic downturn can create tremendous opportunity for your company to gain greater market share. In order to take advantage of this growth opportunity, you must act quickly to implement the above best business practices to continue realigning and resizing your company to the current economic conditions. Copyright © 2008 Terry H. Hill |
