Successful Blog

3 Avenues to Safe, Reputable Business Advice

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Safe Advice for Smart Business Decisions

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If you already have your own small business you probably know that finding sturdy, credible business advice can be a tricky task. If you’re just looking to start a business, beware, for there is an endless sea of websites and business “professionals,” willing to give you the “latest and greatest” advice on how to start and run your company. The following tips should help lead you to some safe advice, or at least get you started down the path of making smart business decisions.

Personal, Real-life Advice

Although this can be a bit more expensive than the do-it-yourself route, the quality, personal poignancy, and accuracy afforded by this option is often well worth it. Hiring or meeting with a personal life coach or business coach is an effective way to get good personal business advice without wasting your own precious time searching high and low for it. These professionals will take the time to sit down with you and go over virtually any business concerns or questions you may have. They’ll make sure that the advice they offer is specific to your personal needs and take much of the guesswork out of the equation.

Good Websites

Much like the site you find yourself on now, there are plenty of trust-worthy business sites out there offering quality information. Finding them in the midst of all the clutter now on the net is the tough part. Here is a link to a helpful website offering a top 20 list of the best business websites for Entrepreneurs and CEOs in 2010. The list is still quite relevant for us here in 2012.

Friends and Relatives

If you know any personal friends or family members who’ve started their own successful (or unsuccessful) business ventures in the past, absolutely solicit some advice from them. This is as good an option as any, and one that usually casts a safety net over any intellectual property and personal business ideas depending on your level of trust with said acquaintance. People are usually very willing and often eager to discuss their personal models for success and business experiences with a fellow entrepreneur, especially one they already know. Don’t overlook the enormous potential that your personal connections may hold.

In this dog-eat-dog world, which currently hangs loosely in the balance of a delicate economy, sound advice can be the difference between a successful idea coming to fruition, or fading back into the ethos for someone else to find and successfully develop. Make sure you take the necessary time to research before embarking on any financial endeavors. You never know when or where that last missing link may be hiding. Using the right tools, in any case, surely gives you a better chance of finding it.

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Author’s Bio:
Alex Brown: Alex is a prolific writer with specialization on various aspects of financial finance. His articles on debt, mortgage industry and personal finance are offer valuable guidelines to the readers.

Thank you, Alex!

–ME “Liz” Strauss
Work with Liz on your business!!

Time Waits for No One

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As the saying goes, just about all of us are just one job layoff, illness or other unfortunate happening away from major financial turmoil.

For me, that day of reckoning came some six years ago when I was laid off from my job of five and a half years. Once the initial shock of getting laid off by an e-mail died down, my first thoughts turned to how I would pay my rent, buy food, meet my car payments etc.

I was fortunate in that I had a pair of very supportive parents, not to mention a can-do attitude, reminding myself I was going to see this layoff as a challenge and not the end of the world.

Fast Forward Six Years Later

As I today celebrate my one-year anniversary with another employer, I am thankful that the layoff six years ago did not entirely derail me. While some may just brush off a layoff, I took it personally, especially given what I would discover were the true reasons behind it. As they say, however, move on and move up.

Today’s job finds me working with some extremely talented people, many of whom are quite younger. I see some of myself 10-20 years ago in them today, knowing that they have a ton of opportunities ahead of them.

While I am far from retirement, I am also not foolish enough to not be putting money away for that day.

Yes, I often live paycheck to paycheck like many others I know, but I do my best to take a little from that bi-weekly check and dump it into my 401(k). I also set up my own retirement account a number of years back. While it is certainly nothing to brag about, it is comforting to know that I’m more of a saver than a wild spender.

Lessons Learned Over Time

As I look at the faces of a number of younger co-workers these days, I admire those that pay close attention to how they handle money.

For those putting money away for a rainy day and for decades from now when they retire thumbs up. Although I was by no means careless with my money when I first started working, I would have definitely done some things differently financially if I knew then what I know now.

One of the cool things about my profession of writing is that unlike other jobs that require major physical efforts, something many of us “older” folks will see dwindle in the decades to come, writers need only be of sound mine, have a trusty Internet connection, and an audience desiring to read their content. Until the day comes that I am not physically able to write, you can bet I will be banging out article after article on my keyboard.

If I could offer just a word or two of wisdom to those younger folks, think about your futures, especially from a financial point of view. Be smart with your money and think about how you would get by should your world as you now know it be suddenly turned upside down.

I never envisioned 23 years of work having flown by so quickly, although I am very grateful for some of the opportunities that have been presented to me. The difficult times too were good learning experiences, something that allowed me to grow as a person.

Now, however, I would not mind if things would slow down a little, although we all know that time waits for no one.

Photo credit: Facebook

Dave Thomas, who covers among other items workers compensation and small business loans, writes extensively for Business.com.

Investing: Even Fixed Income Products Have Risks

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Investment Risks in Fixed Income Products

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One of the key things to understand when investing in fixed income products is risks associated with this asset class. Contrary to popular notion, fixed income products are not devoid of risks and you need to be aware of them before investing in these products.

Investment risks: The Basics

Risks fall under two broad categories – Systematic risk (also called Market Risk and cannot be mitigated) and Unsystematic risk (this can be mitigated through appropriate portfolio strategies). Systematic risk impacts the entire market. Examples of this include change in government policies. Unsystematic risks are specific to a particular investment and can be mitigated through portfolio diversification. Within a fixed income portfolio, you can diversify your holdings across a number of products and minimize the risk. We will look at the unsystematic risks and see how you can avoid some of them.

Sources of Risks in Fixed Income Asset Class

Interest rate risk: This is caused by movements in interest rates. The value of bonds is inversely correlated to the interest rate and hence an upward movement in interest rates in the market will cause the value of bonds to dip. The Federal Reserve is holding the interest rates low for a prolonged period to spur credit demand in the economy. Once there are visible signs of the economy picking up, the Fed will announce an increase in policy rates which would cause the prices of bonds to decline. While you continue to receive your periodic interest payments on the bonds, the capital value of the bonds that you hold would decline, causing a capital loss. However, if you hold the bonds to maturity, you will not suffer a capital loss, as the bonds would be redeemed by the issuer at the face value.

Re-investment risk: This is the risk that you may not be able to reinvest the proceeds from an earlier investment at the same rate (as the original rate) at the time of maturity. If interest rates go up, you would gain and lose out in a declining interest rate scenario. You have to consider this risk when the maturity profile of the instruments you hold is less than your time horizon for investment. Laddering is a popular technique that helps reduce re-investment risk. What you should do is to invest your money in a staggered manner and vary the maturity profile of your investments. This would help you ride out the volatility on the interest rate front.

Liquidity risk: This is the risk that you may not be able to sell your holdings when desired. Or you may end up selling your holdings far below their intrinsic worth. Certificate of Deposits come with definitive lock in and are not liquid instruments whereas bond funds can be bought and sold on the exchange and carry minimum liquidity risk (the bond funds that are listed heavily traded). Always keep in mind your liquidity needs when you decide to allocate your funds to fixed income instruments.

Exchange rate risk: You would be exposed to exchange rate risk when you invest in instruments denominated in a currency, different from your domestic currency. You may find interest rates attractive in emerging economies and choose to invest in bond funds that hold these securities. What you should also remember is that this investment has an inherent risk of currency exchange rates. During uncertain times, an adverse currency exchange rate movement may offset the interest you earn and even cause a capital loss. One way of mitigating this risk is through currency hedges; however, these instruments are not available to all. And the cost of these hedges may outweigh the returns and make the whole exercise not worthwhile.

Credit risk: This is the risk that the issuer of the instrument may default on the obligations to pay the periodic coupon payments and/ or the principal. You should look for those instruments that carry a high credit rating and not get swayed by attractive coupon on offer. Instruments with good credit ratings carry a lower coupon as a general rule. Sticking to highly rated securities would protect you from this risk.

Summary

If you are looking at building a fixed income portfolio, it would be worthwhile to understand that this asset class is not devoid of risk. The objective of fixed income investing should be to generate steady income without taking undue risks. And understanding the risks in this asset class and ways of mitigating them would help you plan your allocation to this asset class.

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Author Bio:
George is a full time financial adviser and blogger. His interest lies in trading, investment, portfolio management and business finance. He also owns a couple of finance blogs which provide valuable information to intellectual readers.

–ME “Liz” Strauss
Work with Liz on your business!!

Do You Manage the Objectives of Project Management?

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Focusing …

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What are the main objectives of project management?

Simply put, project management simply means the planning, organisation and management of the resources necessary to bring about a successful conclusion to a specific task (‘deliverable’), or group of tasks. There are numerous software packages available setting out detailed methodologies and providing project management training for managers who are new to the role.

Project objectives define a project. Projects by their very nature dictate that a number of different parties are involved in completing the various elements of the project and it is vital that all those participating are totally clear on what the final deliverable is, and what the staged objectives to achieve that deliverable are. It is the overall project manager’s job to draw together each of the separate strands of work, on time and on budget and oversee the project to a successful conclusion where the deliverables are presented to the client as agreed at the project outset. In the case of large projects where multiple teams are assembled, some project management training may be required by less experienced project team leaders and this may take place either prior to the project commencing or ‘on the job’ as a learning curve.

There are three primary elements which make up the basic project objectives to be realised.

  1. Firstly, a ‘drop dead date’, or completion date by which the final deliverable must be achieved, must be agreed and recorded in the project plan. A series of milestone dates should then be applied to the project plan by which the various smaller tasks must be completed to keep the overall plan on schedule. It is important to incorporate short periods of ‘slippage’ into the project plan around the tasks most likely to be delayed and it is the project manager’s responsibility to identify such tasks and accurately estimate the amount of slippage to be allowed for. Clearly, one of the key skills of the effective project manager is time management, both his own and that of his team.
  2. Project costing must also be explored and integrated into the overall plan. The financial aspect of costs will be recorded in a separate budget spread sheet. It is extremely important that the financials are projected as accurately as possible and are monitored closely as the various stages of the project are completed. Other costs are measured in terms of the personnel who make up the project team, third party suppliers who will be required to make a contribution at certain stages and equipment or materials required depending upon the nature of the final deliverable.
  3. The final main project objective is the quality of the final deliverable. This must be to a standard acceptable to and agreed with the project sponsor and client. Most contractual agreements between the project sponsor and client will have a clause dictating that a forfeit will be levied should the project fail to be produced on time, on budget and to the required standard.

Know your objectives and you’ll be able to report with clarity. Your role will be mission critical in keeping everyone aware of how the project is progessing and how to keep it on track.

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Author Bio

Blathnaid Magill has an MBS in Electronic Business from University College Cork, Ireland. She enjoys writing about software and technology. She is currently writing on behalf of QA, who are the leading providers in Project Management Training.

Thank you, Blathnaid!

–ME “Liz” Strauss
Work with Liz on your business!!

Build a house made of bricks

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Rosemary O’Neill

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When my dad used to read me The Three Little Pigs, he’d put a lot of gusto into the Big Bad Wolf’s famous threat…”I’ll huff, and I’ll puff….and I’ll BLOW your house down!” He’s an amazing storyteller, and that one has stayed with me. I always strive to assemble bricks, rather than straw.

Every day on the internet, status updates, blog posts, pins, and various pieces of social flotsam and jetsam flow by. You’re probably contributing to the flow yourself. (I know I am!)

Today’s question is…

Are you contributing anything of lasting value, either to your business or to the world?

Take a look at last week’s social output and see whether any of it will:

  • Be true 3 years from now (evergreen content)
  • Add beauty to the world (original artwork)
  • Teach someone a valuable skill (how-to)
  • Build a searchable resource (SEO)
  • Help make your business case (customer support)
  • Lift others up (inspiration)

You’ve heard of the Three Little Pigs …
Which little pig are you?

The house made of straw – you’ve got a Facebook page, which you haven’t updated in a couple of weeks, and a website that’s “brochure-ware” from 2005. They aren’t linked together. You think you’ll get around to fixing it “someday.”

The house made of twigs – you’ve got an up-to-date website, and social accounts on Facebook, Twitter, and YouTube, but the content is not connected, and there’s no editorial calendar, no plan behind it. You spend the day flitting around from one platform to the other, ignoring your core business.

The house made of bricks – your website is an interactive, social hub, with deep resources for your customers. It’s optimized for search, and you put out a steady, consistent stream of varied content. Your audience responds and shares their own related content on your site, building a valuable asset that’s under your control. Your social streams are all accessible from one elegant, branded home.

It’s so easy to get caught up in the day-to-day social whirl, and never take the time to make a blueprint for your house. My recommendation is to set aside a few hours a week to work on the plan, build an editorial calendar, and be sure you’re building with bricks.

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Author’s Bio: Rosemary O’Neill is an insightful spirit who works for social strata — a top ten company to work for on the Internet . Check out their blog. You can find her on Google+ and on Twitter as @rhogroupee
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Invest or Pay off Debts in Today’s Economy?

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While the stock market seems to have settled down, many individuals can’t help but question whether it is best to invest while there are some good stocks available or should they pay off debts, especially credit cards?

Even though there is no set answer, individuals need to realistically look at their own situation to see which financial decision is more prudent for their case.

Issues to Confront

In the event you are weighing which road to travel, you need to determine the larger number, the return on investment or the interest you are currently paying for your credit cards. For those people who are paying greater interest than they could earn, they are advised to pay down their debt first.

When it comes to paying down debts, some financial experts will advise you to place your debts in order, from those charging the largest interest rates to ones charging the least.

On the flip side, others will advise placing them from smallest to biggest, paying off the smallest one first and making at least minimum payments on the others. Some view this as not only getting a debt paid off, but giving a consumer something to feel good about when the debt is removed.

Know the Tax Implications

With tax season here for the next few months, another factor for individuals to consider is what tax implications will befall them.

Individuals should look at whether the interest on their investment is taxable, along with if the interest on their debt is tax-deductible. When investing in items like traditional IRAs and 401 (k) plans, you can decrease your taxable income, so those investments can assist you.

Individuals should also take into consideration that investing is best done when finding returns that significantly top the interest on their debts.

Over time, individuals will be able to pay off high-interest obligations, while likely tracking down save investments that offer a better return on their money as opposed to paying more on their lower-rate debts.

Preparing for the Future

Finally, while credit card and other debts are something you can’t run and hide from, remember that your future financial picture is even more important today, given the questions about the strength of Social Security when you retire down the road.

If you’re able to eliminate high-interest consumer debt, start saving as much as possible. The best place to kick things off is a 401(k). The next best choice is an IRA.

Along with placing money in a retirement account, you will need to have a “rainy day” fund that’s readily available in an emergency so you do not rely on credit cards.

You should put aside enough funds to hold you over for three months if your paycheck suddenly ceased. If you have less-than-steady income, think about putting aside six months of income, potentially through a high-yield savings account or money market fund monthly basis until reaching a desired amount.

As noted earlier, each situation will warrant its own analysis, but paying down debts and investing in your future are both win-win scenarios.

Do the Math

If you’re still not sure about the best avenue to take regarding your financial situation, consider this example:

Let’s say you’re behind $15,000 on a credit card and your savings account contains some $15,000. Throw in a credit card interest rate that is at 10 percent and the bank is compensating you less than 2 percent on your account.

While your first inclination is to pay off the credit card and move that debt behind you, make sure there are no investment opportunities that could arise. Yes, investing in pretty much any product or brand is a risk, but the rewards can be great.

Should you come across an investment option or find some stocks or bonds that are providing good returns, you may think twice about putting all that money towards the debt, rather doing some investing. Perhaps you should do both?

As someone who has had to deal with debt due to a divorce and job layoff, I can tell you from firsthand experience that paying down a debt is a great feeling, even if it takes some time to do it.

In the event you’re still having questions as to which road to take (debt or investments), consider a few questions:

  1. What if the proposed investment does well after you’ve paid off your debt?
  2. What happens if you postpone paying down the debt and put the money towards the investment and the investment tanks? Where does that leave your psyche?
  3. What if you put half the money towards your debt and half towards your investment? Can you live with not fully paying down the debt and continuing to carry a balance?

As you can see, there are a number of roads to travel when deciding on paying down debt or investing those dollars.

Whichever road you head down, map out your plans ahead of time so you don’t get lost.

Dave Thomas, who covers topics such as starting a small business, writes extensively for Business.com, an online resource destination for businesses of all sizes to research, find, and compare the products and services they need to run their businesses.