Website: http://barnes-ecommerce.com
Forum: http://barnes-ecommerce.com/phpbb
Recently, the conservative australian labour government, lead by Kevin Rudd, has been cited as not having an "over-arching narative" for the nation.
The prime minister Kevin Rudd and his right wing administration have been in office now for nine months. But to date, they have not proven themselves to be the socially responsible and nation building government that the australian electorate expected.
Beyond failing to provide any form of narative, our nation's economy chokes and splutters, our inadequate infrastructure crumbles, our businesses cry out for skilled staff and our inflation rate increases, while our Mr Rudd and his cohorts foolishly bask in a $22 billion budget surplus.
The stupidity of this tory labour government is overwhelming. They are desperately trying to emulate their right wing political heroes from the past, namely; John Howard, Malcolm Fraser and Robert Menzies, when the reason the australian people voted for them was to empower a socially responsible, caring nation building administration.
Despite their stupidity and lack of vision for the nation's future, Vader form the Wine Traveller's stables has kindly offered his "Ruddisms" as a guiding light for these over paid morons.
Visit http://barnes-ecommerce.com today and read all of Vader's "Ruddisms". You will be glad that you did!
Website: http://barnes-ecommerce.com
Forum: http://barnes-ecommerce.com/phpbb
Wednesday, August 27, 2008
Monday, June 30, 2008
How To Advertise On The Internet
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You Will Last Longer If You Follow Some Of These Tips For Advertising According To The Rules Of "Netiquette"
Do you want to reach millions of potential customers for FREE!
Well, you can if you know how. The Internet, that massive
network of thousands of computers around the world, also know
as the "Information Super Highway," is your ticket to generating
free leads and sales.
But beware the Internet is generally VERY MUCH AGAINST ANY
COMMERCIAL ACTIVITY. The Internet was originally set up by the
government for individuals and universities to have a massive
database of information. The Internet has pretty much gotten
out of control with its explosive growth over the past few
months and years.
The Internet is known basically as an Anarchy. There isn't
really anyone who runs and regulates the Internet, at least not for
now. So pretty much anything goes on the Net. But beware that
there are several thousand Net users who have self-appointed
themselves as the Net Police. The Net users have been know to
devastate other Net users if they do not follow their rules.
The rules are pretty basic: only post in areas that are related
to your message, and DO NOT ADVERTISE! The world we live in is a
very commercial one, and it was only a matter of time when
someone realized that a vehicle, like the Internet, that had the
capability to reach millions could be used to promote business.
And so people began to conduct business on the Net by placing
ads and sending unsolicited E-mail letters.
Several of these advertisers were in for a big surprise. Many
of them have received thousands of hate mail letters known as
"flames." Their boxes were overflowed with hate mail that a lot
of them were forced to go out of business online. Many of these
self-appointed net policeman have even developed blacklists for
advertisers. These lists are then sent to thousands of Net
users and they can send these blacklist members hate mail until
they leave the Net. So advertising is frowned upon on the Net
and it makes several people very angry.
But that doesn't mean that there is not a RIGHT way to do it.
There are little unknown newsgroups on the Internet where
advertising is actually welcome. You can place ads in these
sections and have confidence that you will get some good
response from them, and not much hate mail if any.
These newsgroups are:
alt.forsale
alt.business.import-export
alt.business.misc
aol.misc-ads
alt.make.money.fast
biz.comp.software
biz.comp.services
biz.general
biz.misc
biz.next.newprod
misc.forsale
misc.entrepreneurs
ns.forsale
THERE ARE SEVERAL MORE IF YOU DO SOME HUNTING FOR THEM. THERE
ARE NEW NEWSGROUPS ADDED DAILY, AND SOME MAY WELCOME YOUR ADS.
These newsgroups have several sub topics for you to advertise in.
You can do some careful "digging" on the Internet and find some
hidden areas to advertise in also if you look.
These newsgroups have the ability to be seen by millions, and
for FREE!
Your ad will last about two weeks in each of these groups, at
this time you should re-post your ads.
Keep track of your individual ad response. You may find some
areas are extremely good for your business, and some aren't.
You will save time and money just concentrating on the good
ones.
DO NOT JUST PLACE ADS ANYWHERE! Although you possibly could make
some money by placing ads in all kinds of newsgroups, it will
not outweigh the trouble you will go through to get it.
There is no reason to anger several thousand people just to make
a few bucks. You'll make a lot more if you use good
"netiquette" and develop a good Internet reputation for your
business. If you are into Online Business do it for the long
run, and you will be much better off. As more and more people
come online everyday, you eventually be able to reach more and
more potential customers.
One other way to do advertising, is sort of a "sneaky" but often
welcomed way. Kind of like of press release, or editorial new
product feature. "Donate" a nice article to one of the relevant
topics in common with your business. Then at the end of your
contributed article give a SHORT AND CONCISE "plug" for you
product or service. Let them contact you for more information.
Do not use the ad to do the selling, do that with information
you will send them later.
You can also create what is called a "sig file" which stands for
signature file. This is a footer that is added to the bottom of
all of your posts. Your sig file can have your name, company,
e-mail address, and any short sales message you would like
others to see. This is a good place to tell others to e- mail
you for more info on what you are marketing.
http://mywebcashstore.com/barnes0960
http://24hourwebcash.com/barnes0960
http://mywebcashstore.com/barnes0960
You Will Last Longer If You Follow Some Of These Tips For Advertising According To The Rules Of "Netiquette"
Do you want to reach millions of potential customers for FREE!
Well, you can if you know how. The Internet, that massive
network of thousands of computers around the world, also know
as the "Information Super Highway," is your ticket to generating
free leads and sales.
But beware the Internet is generally VERY MUCH AGAINST ANY
COMMERCIAL ACTIVITY. The Internet was originally set up by the
government for individuals and universities to have a massive
database of information. The Internet has pretty much gotten
out of control with its explosive growth over the past few
months and years.
The Internet is known basically as an Anarchy. There isn't
really anyone who runs and regulates the Internet, at least not for
now. So pretty much anything goes on the Net. But beware that
there are several thousand Net users who have self-appointed
themselves as the Net Police. The Net users have been know to
devastate other Net users if they do not follow their rules.
The rules are pretty basic: only post in areas that are related
to your message, and DO NOT ADVERTISE! The world we live in is a
very commercial one, and it was only a matter of time when
someone realized that a vehicle, like the Internet, that had the
capability to reach millions could be used to promote business.
And so people began to conduct business on the Net by placing
ads and sending unsolicited E-mail letters.
Several of these advertisers were in for a big surprise. Many
of them have received thousands of hate mail letters known as
"flames." Their boxes were overflowed with hate mail that a lot
of them were forced to go out of business online. Many of these
self-appointed net policeman have even developed blacklists for
advertisers. These lists are then sent to thousands of Net
users and they can send these blacklist members hate mail until
they leave the Net. So advertising is frowned upon on the Net
and it makes several people very angry.
But that doesn't mean that there is not a RIGHT way to do it.
There are little unknown newsgroups on the Internet where
advertising is actually welcome. You can place ads in these
sections and have confidence that you will get some good
response from them, and not much hate mail if any.
These newsgroups are:
alt.forsale
alt.business.import-export
alt.business.misc
aol.misc-ads
alt.make.money.fast
biz.comp.software
biz.comp.services
biz.general
biz.misc
biz.next.newprod
misc.forsale
misc.entrepreneurs
ns.forsale
THERE ARE SEVERAL MORE IF YOU DO SOME HUNTING FOR THEM. THERE
ARE NEW NEWSGROUPS ADDED DAILY, AND SOME MAY WELCOME YOUR ADS.
These newsgroups have several sub topics for you to advertise in.
You can do some careful "digging" on the Internet and find some
hidden areas to advertise in also if you look.
These newsgroups have the ability to be seen by millions, and
for FREE!
Your ad will last about two weeks in each of these groups, at
this time you should re-post your ads.
Keep track of your individual ad response. You may find some
areas are extremely good for your business, and some aren't.
You will save time and money just concentrating on the good
ones.
DO NOT JUST PLACE ADS ANYWHERE! Although you possibly could make
some money by placing ads in all kinds of newsgroups, it will
not outweigh the trouble you will go through to get it.
There is no reason to anger several thousand people just to make
a few bucks. You'll make a lot more if you use good
"netiquette" and develop a good Internet reputation for your
business. If you are into Online Business do it for the long
run, and you will be much better off. As more and more people
come online everyday, you eventually be able to reach more and
more potential customers.
One other way to do advertising, is sort of a "sneaky" but often
welcomed way. Kind of like of press release, or editorial new
product feature. "Donate" a nice article to one of the relevant
topics in common with your business. Then at the end of your
contributed article give a SHORT AND CONCISE "plug" for you
product or service. Let them contact you for more information.
Do not use the ad to do the selling, do that with information
you will send them later.
You can also create what is called a "sig file" which stands for
signature file. This is a footer that is added to the bottom of
all of your posts. Your sig file can have your name, company,
e-mail address, and any short sales message you would like
others to see. This is a good place to tell others to e- mail
you for more info on what you are marketing.
http://mywebcashstore.com/barnes0960
http://24hourwebcash.com/barnes0960
Thursday, June 26, 2008
The ABC's of Borrowing
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http://mywebcashstore.com/barnes0960
The ABC's of Borrowing
Summary
Some small business persons cannot understand why a lending institution
refused to lend them money. Others have no trouble getting funds, but they
are surprised to find strings attached to their loans. Such owner-managers
full to realized that banks and other lenders have to operate by certain
principles just as do other types of business.
This Aid discusses the following fundamentals of borrowing: (1) credit
worthiness, (2) kinds of loans, (3) amount of money needed, (4) collateral,
(5) loan restrictions and limitations, (6) the loan application, and (7)
standards which the lender uses to evaluate the application.
Introduction
Inexperience with borrowing procedures often creates resentment and
bitterness. The stories of three small business persons illustrate this
point.
"I'll never trade here again," Bill Smith said when his bank refused to
grant him a loan. "I'd like to let you have it, Bill," the banker said,
"but your firm isn't earning enough to meet your current obligations." Mr.
Smith was unaware of a vital financial fact, namely, that lending
institutions have to be certain that the borrower's business can repay the
loan.
Tom Jones lost his temper when the bank refused him a loan because he did
not know what kind or how much money he needed. "We hesitate to lend," the
banker said, "to business owners with such vague ideas of what and how much
they need."
John Williams' case was somewhat different. He didn't explode until after
he got the loan. When the papers were ready to sign, he realized that the
loan agreement put certain limitations on his business activities. "You
can't dictate to me," he said and walked out of the bank. What he didn't
realize was that the limitations were for his good as well as for the
bank's protection.
Knowledge of the financial facts of business life could have saved all
three the embarrassment of losing their tempers. Even more important, such
information would have helped them to borrow money at a time when their
businesses needed it badly.
This Aid is designed to give the highlights of what is involved in sound
business borrowing. It should be helpful to those who have little or no
experience with borrowing. More experienced owner-managers should find it
useful in re-evaluating their borrowing operations.
Is Your Firm Credit Worthy?
The ability to obtain money when you need it is as necessary to the
operation of your business as is a good location or the right equipment,
reliable sources of supplies and materials, or an adequate labour force.
Before a bank or any other lending agency will lend you money, the loan
officer must feel satisfied with the answers to the five following
questions:
1. What sort of person are you, the prospective borrower? By all odds, the
character of the borrower comes first. Next is your ability to manage your
business.
2. What are you going to do with the money? The answer to this question
will determine the type of loan, short or long-term. Money to be used for
the purchase of seasonal inventory will require quicker repayment than
money used to buy fixed assets.
3. When and how do you plan to pay it back? Your banker's judgment of your
business ability and the type of loan will be a deciding factor in the
answer to this question.
4. Is the cushion in the loan large enough? In other words, does the amount
requested make suitable allowance for unexpected developments? The banker
decides this question on the basis of your financial statement which sets
forth the condition of your business and on the collateral pledged.
5. What is the outlook for business in general and for your business
particularly?
Adequate Financial Data is a "Must."
The banker wants to make loans to businesses which are solvent, profitable,
and growing. The two basic financial statements used to determine those
conditions are the balance sheet and profit-and-loss statement. The former
is the major yardstick for solvency and the latter for profits. A
continuous series of these two statements over a period of time is the
principal device for measuring financial stability and growth potential.
In interviewing loan applicants and in studying their records, the banker
is especially interested in the following facts and figures.
General Information: Are the books and records up-to-date and in good
condition? What is the condition of accounts payable? Of notes payable?
What are the salaries of the owner-manager and other company officers? Are
all taxes being paid currently? What is the order backlog? What is the
number of employees? What is the insurance coverage?
Accounts Receivable: Are there indications that some of the accounts
receivable have already been pledged to another creditor? What is the
accounts receivable turnover? Is the accounts receivable total weakened
because many customers are far behind in their payments? Has a large enough
reserve been set up to cover doubtful accounts? How much do the largest
accounts owe and what percentage of your total accounts does this amount
represent?
Inventories: Is merchandise in good shape or will it have to be marked
down? How much raw material is on hand? How much work is in process? How
much of the inventory is finished goods?
Is there any obsolete inventory? Has an excessive amount of inventory been
consigned to customers? Is inventory turnover in line with the turnover for
other businesses in the same industry? Or is money being tied up too long
in inventory?
Fixed Assets: What is the type, age, and condition of the equipment? What
are the depreciation policies? What are the details of mortgages or
conditional sales contracts? What are the future acquisition plans?
What Kind of Money?
When you set out to borrow money for your firm, it is important to know the
kind of money you need from a bank or other lending institution. There are
three kinds of money: short term, term money, and equity capital.
Keep in mind that the purpose for which the funds are to be used is an
important factor in deciding the kind of money needed. But even so,
deciding what kind of money to use is not always easy. It is sometimes
complicated by the fact that you may be using some of the various kinds of
money at the same time and for identical purposes.
Keep in mind that a very important distinction between the types of money
is the source of repayment. Generally, short-term loans are repaid from the
liquidation of current assets which they have financed. Long-term loans are
usually repaid from earnings.
Short-Term Bank Loans
You can use short-term bank loans for purposes such as financing accounts
receivable for, say 30 to 60 days. Or you can use them for purposes that
take longer to pay off--such as for building a seasonal inventory over a
period of 5 to 6 months. Usually, lenders expect short-term loans to be
repaid after their purposes have been served: for example, accounts
receivable loans, when the outstanding accounts have been paid by the
borrower's customers, and inventory loans, when the inventory has been
converted into saleable merchandise.
Banks grant such money either on your general credit reputation with an
unsecured loan or on a secured loan.
The unsecured loan is the most frequently used form of bank credit for
short-term purposes. You do not have to put up collateral because the bank
relies on your credit reputation.
The secured loan involves a pledge of some or all of your assets. The bank
requires security as a protection for its depositors against the risks that
are involved even in business situations where the chances of success are
good.
Term Borrowing
Term borrowing provides money you plan to pay back over a fairly long time.
Some people break it down into two forms: (1) intermediate--loans longer
than 1 year but less than 5 years, and (2) long-term--loans for more than 5
years.
However, for your purpose of matching the kind of money to the needs of
your company, think of term borrowing as a kind of money which you probably
will pay back in periodic instalments from earnings.
Equity Capital
Some people confuse term borrowing and equity (or investment) capital. Yet
there is a big difference. You don't have to repay equity money. It is
money you get by selling a part interest in your business.
You take people into your company who are willing to risk their money in
it. They are interested in potential income rather than in an immediate
return on their investment.
How Much Money?
The amount of money you need to borrow depends on the purpose for which you
need funds. Figuring the amount of money required for business
construction, conversion, or expansion--term loans or equity capital--is
relatively easy. Equipment manufacturers, architects, and builders will
readily supply you with cost estimates. On the other hand, the amount of
working capital you need depends upon the type of business you're in. While
rule-of-thumb ratios may be helpful as a starting point, a detailed
projection of sources and uses of funds over some future period of
time--usually for 12 months--is a better approach. In this way, the
characteristics of the particular situation can be taken into account. Such
a projection is developed through the combination of a predicted budget and
a cash forecast.
The budget is based on recent operating experience plus your best judgment
of performance during the coming period. The cash forecast is your
estimates of cash receipts and disbursements during the budget period.
Thus, the budget and the cash forecast together represent your plan for
meeting your working capital requirements.
To plan your working capital requirements, it is important to know the
"cash flow" which your business will generate. This involves simply a
consideration of all elements of cash receipts and disbursements at the
time they occur. These elements are listed in the profit-and-loss statement
which has been adapted to show cash flow. They should be projected for each
month.
What Kind of Collateral?
Sometimes, your signature is the only security the bank needs when making a
loan. At other times, the bank requires additional assurance that the money
will be repaid. The kind and amount of security depends on the bank and on
the borrower's situation.
If the loan required cannot be justified by the borrower's financial
statements alone, a pledge of security may bridge the gap. The types of
security are: endorsers; co maker and guarantors; assignment of leases;
trust receipts and floor planning; chattel mortgages; real estate; accounts
receivables; savings accounts; life insurance policies; and stocks and
bonds. In a substantial number of States where the Uniform Commercial Code
has been enacted, paperwork for recording loan transactions will be greatly
simplified.
Endorsers, Co-makers, and Guarantors
Borrowers often get other people to sign a note in order to bolster their
own credit. These endorsers are contingently liable for the note they sign.
If the borrower fails to pay up, the bank expects the endorser to make the
note good. Sometimes, the endorser may be asked to pledge assets or
securities too.
A co-maker is one who creates an obligation jointly with the borrower. In
such cases, the bank can collect directly from either the maker or the
co-maker.
A guarantor is one who guarantees the payment of a note by signing a
guaranty commitment. Both private and government lenders often require
guarantees from officers of corporations in order to assure continuity of
effective management. Sometimes, a manufacturer will act as guarantor for
customers.
Assignment of Leases
The assigned lease as security is similar to the guarantee. It is used, for
example, in some franchise situations.
The bank lends the money on a building and takes a mortgage. Then the
lease, which the dealer and the parent franchise company work out, is
assigned so that the bank automatically receives the rent payments. In this
manner, the bank is guaranteed repayment of the loan.
Warehouse Receipts
Banks also take commodities as security by lending money on a warehouse
receipt. Such a receipt is usually delivered directly to the bank and shows
that the merchandise used as security either has been placed in a public
warehouse or has been left on your premises under the control of one of
your employees who is bonded (as in field warehousing). Such loans are
generally made on staple or standard merchandise which can be readily
marketed. The typical warehouse receipt loan is for a percentage of the
estimated value of the goods used as security.
Trust Receipts and Floor Planning
Merchandise, such as automobiles, appliances, and boats, has to be
displayed to be sold. The only way many small marketers can afford such
displays is by borrowing money. Such loans are often secured by a note and
a trust receipt.
This trust receipt is the legal paper for floor planning. It is used for
serial-numbered merchandise. When you sign one, you (1) acknowledge receipt
of the merchandise, (2) agree to keep the merchandise in trust for the
bank, and (3) promise to pay the bank as you sell the goods.
Chattel Mortgages
If you buy equipment such as a cash register or a delivery truck, you may
want to get a chattel mortgage loan. You give the bank a lien on the
equipment you are buying.
The bank also evaluates the present and future market value of the
equipment being used to secure the loan. How rapidly will it depreciate?
Does the borrower have the necessary fire, theft, property damage, and
public liability insurance on the equipment? The banker has to be sure that
the borrower protects the equipment.
Real Estate
Real estate is another form of collateral for long-term loans. When taking
a real estate mortgage, the bank finds out: (1) the location of the real
estate, (2) its physical condition, (3) its foreclosure value, and (4) the
amount of insurance carried on the property.
Accounts Receivable
Many banks lend money on accounts receivable. In effect, you are counting
on your customers to pay your note.
The bank may take accounts receivable on a notification or a
no notification plan. Under the notification plan, the purchaser of the
goods is informed by the bank that his or her account has been assigned to
it and he or she is asked to pay the bank. Under the no notification plan,
the borrower's customers continue to pay you the sums due on their accounts
and you pay the bank.
Savings Accounts
Sometimes, you might get a loan by assigning to the bank a savings account.
In such cases, the bank gets an assignment from you and keeps your
passbook. If you assign an account in another bank as collateral, the
lending bank asks the other bank to mark its records to show that the
account is held as collateral.
Life Insurance
Another kind of collateral is life insurance. Banks will lend up to the
cash value of a life insurance policy. You have to assign the policy to the
bank.
If the policy is on the life of an executive of a small corporation,
corporate resolutions must be made authorizing the assignment. Most
insurance companies allow you to sign the policy back to the original
beneficiary when the assignment to the bank ends.
Some people like to use life insurance as collateral rather than borrow
directly from insurance companies. One reason is that a bank loan is often
more convenient to obtain and usually may be obtained at a lower interest
rate.
Stocks and Bonds
If you use stocks and bonds as collateral, they must be marketable. As a
protection against market declines and possible expenses of liquidation,
banks usually lend no more than 75 percent of the market value of high
grade stock. On Federal Government or municipal bonds, they may be willing
to lend 90 percent or more of their market value.
The bank may ask the borrower for additional security or payment whenever
the market value of the stocks or bonds drops below the bank's required
margin.
What Are the Lender's Rules?
Lending institutions are not just interested in loan repayments. They are
also interested in borrowers with healthy profit-making businesses.
Therefore, whether or not collateral is required for a loan, they set loan
limitations and restrictions to protect themselves against unnecessary risk
and at the same time against poor management practices by their borrowers.
Often some owner/managers consider loan limitations a burden.
Yet others feel that such limitations also offer an opportunity for
improving their management techniques.
Especially in making long-term loans, the borrower as well as the lender
should be thinking of: (1) the net earning power of the borrowing company,
(2) the capability of its management, (3) the long range prospects of the
company, and (4) the long range prospects of the industry of which the
company is a part. Such factors often mean that limitations increase as the
duration of the loan increases.
What Kinds of Limitations?
The kinds of limitations, which an owner-manager finds set upon the company
depends, to a great extent, on the company. If the company is a good risk,
only minimum limitations need be set. A poor risk, of course, is different.
Its limitations should be greater than those of a stronger company.
Look now for a few moments at the kinds of limitations and restrictions
which the lender may set. Knowing what they are can help you see how they
affect your operations.
The limitations which you will usually run into when you borrow money are:
(1) Repayment terms.
(2) Pledging or the use of security.
(3) Periodic reporting.
A loan agreement, as you may already know, is a tailor-made document
covering, or referring to, all the terms and conditions of the loan. With
it, the lender does two things: (1) protects position as a creditor (keeps
that position in as protected a state as it was on the date the loan was
made) and (2) assures repayment according to the terms.
The lender reasons that the borrower's business should generate enough
funds to repay the loan while taking care of other needs. The lender
considers that cash inflow should be great enough to do this without
hurting the working capital of the borrower.
Covenants--Negative and Positive
The actual restrictions in a loan agreement come under a section known as
covenants. Negative covenants are things which the borrower may not do
without prior approval from the lender. Some examples are: further
additions to the borrower's total debt, non-pledge to others of the
borrower's assets, and issuance of dividends in excess of the terms of the
loan agreement.
On the other hand, positive covenants spell out things which the borrower
must do. Some examples are: (1) maintenance of a minimum net working
capital. (2) carrying of adequate insurance, (3) repaying the loan
according to the terms of the agreement, and (4) supplying the lender with
financial statements and reports.
Overall, however, loan agreements may be amended from time to time and
exceptions made. Certain provisions may be waived from one year to the next
with the consent of the lender.
You Can Negotiate
Next time you go to borrow money, thrash out the lending terms before you
sign. It is good practice no matter how badly you may need the money. Ask
to see the papers in advance of the loan closing. Legitimate lenders are
glad to cooperate.
Chances are that the lender may "give" some on the terms. Keep in mind also
that, while you're mulling over the terms, you may want to get the advice
of your associates and outside advisors. In short, try to get terms which
you know your company can live with. Remember, however, that once the terms
have been agreed upon and the loan is made (or authorized as in the case of
SBA), you are bound by them.
The Loan Application
Now you have read about the various aspects of the lending process and are
ready to apply for a loan. Banks and other private lending institutions, as
well as the Small Business Administration, require a loan application on
which you list certain information about your business.
For the purposes of explaining a loan application, this Aid uses the Small
Business Administration's application for a loan (SBA Form 4 not included).
The SBA form is more detailed than most bank forms. The bank has the
advantage of prior knowledge of the applicant and his or her activities.
Since SBA does not have such knowledge, its form is more detailed.
Moreover, the longer maturities of SBA loans ordinarily will necessitate
more knowledge about the applicant.
Before you get to the point of filling out a loan application, you should
have talked with an SBA representative, or perhaps your accountant or
banker, to make sure that your business is eligible for an SBA loan.
Because of public policy, SBA cannot make certain types of loans. Nor can
it make loans under certain conditions. For example, if you can get a loan
on reasonable terms from a bank, SBA cannot lend you money. The
owner-manager is also not eligible for an SBA loan if he or she can get
funds by selling assets which his or her company does not need in order to
grow.
When the SBA representative gives you a loan application, you will notice
that most of its sections ("Application for Loan"--SBA Form 4) are
self-explanatory. However, some applicants have trouble with certain
sections because they do not know where to go to get the necessary
information.
Section 3--"Collateral Offered" is an example. A company's books should
show the net value of assets such as business real estate and business
machinery and equipment. "Net" means what you paid for such assets less
depreciation.
If an owner-manager's records do not contain detailed information on
business collateral, such as real estate and machinery and equipment, the
bank sometimes can get it from your Federal income tax returns. Reviewing
the depreciation which you have taken for tax purposes on such collateral
can be helpful in arriving at the value of these assets.
If you are a good manager, you should have your books balanced monthly.
However, some businesses prepare balance sheets less regularly. In filling
out your "Balance Sheet as of ______ 19 ____, Fiscal Year Ends ________,"
remember that you must show the condition of you business within 60 days of
the date on your loan application. It is best to get expert advice when
working up such vital information. Your accountant or banker will be able
to help you.
Cash Budget
(For three months, ending March 31, 19___)
January February March
Budget Actual Budget Actual Budget Actual
Expected Cash Receipts:
1. Cash sales
2. Collections on accounts
receivable
3. Other income
4. Total cash receipts
Expected Cash Payments
5. Raw materials
6. Payroll
7. Other factory expenses
(including maintenance)
8. Advertising
9. Selling expense
10. Administrative expense
(including salary of
owner-manager)
11. New plant and equipment
12. Other payments (taxes,
including estimated
income tax; repayment of
loans; interest; etc.)
13. Total cash payments
14. Expected Cash Balance at
beginning of the month
15. Cash increase or decrease
(item 4 minus item 13)
16. Expected cash balance at
end of month (item 14
plus item 15)
17. Desired working cash balance
18. Short-term loans needed
(item 17 minus item 16, if
item 17 is larger)
19. Cash available for dividends,
capital cash expenditures,
and/or short investments
(item 16 minus item
17, if item 16 is larger
than item 17)
Capital Cash:
20. Cash available (item 19
after deducting dividends,
etc.)
21. Desired capital cash (item
11, new plant equipment)
22. Long-term loans needed
(item 21 less item 20, if
item 20 is larger than
item 20)
Again, if your records do not show the details necessary for working up
profit and loss statements, your Federal income tax returns may be useful
in getting together facts for the SBA loan application.
Insurance
SBA also needs information about the kinds of insurance a company carries.
The owner-manager gives these facts by listing various insurance policies.
Personal Finances
SBA also must know something about the personal financial condition of the
applicant. Among the types of information are: personal cash position;
source of income including salary and personal investments; stocks, bonds,
real estate, and other property owned in the applicant's own name; personal
debts including instalment credit payments, life insurance premiums, and
so forth.
Evaluating the Application
Once you have supplied the necessary information, the next step in the
borrowing process is the evaluation of your application. Whether the
processing officer is in a bank or in SBA, the officer considers the same
kinds of things when determining whether to grant or refuse the loan. The
SBA loan processor looks for:
(1) The borrower's debt paying record to suppliers, banks, home mortgage
holders, and other creditors.
(2) The ratio of the borrower's debt to net worth.
(3) The past earnings of the company.
(4) The value and condition of the collateral which the borrower offers for
security.
The SBA loan processor also looks for: (1) the borrower's management
ability, (2) the borrower's character, and (3) the future prospects of the
borrower's business.
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The ABC's of Borrowing
Summary
Some small business persons cannot understand why a lending institution
refused to lend them money. Others have no trouble getting funds, but they
are surprised to find strings attached to their loans. Such owner-managers
full to realized that banks and other lenders have to operate by certain
principles just as do other types of business.
This Aid discusses the following fundamentals of borrowing: (1) credit
worthiness, (2) kinds of loans, (3) amount of money needed, (4) collateral,
(5) loan restrictions and limitations, (6) the loan application, and (7)
standards which the lender uses to evaluate the application.
Introduction
Inexperience with borrowing procedures often creates resentment and
bitterness. The stories of three small business persons illustrate this
point.
"I'll never trade here again," Bill Smith said when his bank refused to
grant him a loan. "I'd like to let you have it, Bill," the banker said,
"but your firm isn't earning enough to meet your current obligations." Mr.
Smith was unaware of a vital financial fact, namely, that lending
institutions have to be certain that the borrower's business can repay the
loan.
Tom Jones lost his temper when the bank refused him a loan because he did
not know what kind or how much money he needed. "We hesitate to lend," the
banker said, "to business owners with such vague ideas of what and how much
they need."
John Williams' case was somewhat different. He didn't explode until after
he got the loan. When the papers were ready to sign, he realized that the
loan agreement put certain limitations on his business activities. "You
can't dictate to me," he said and walked out of the bank. What he didn't
realize was that the limitations were for his good as well as for the
bank's protection.
Knowledge of the financial facts of business life could have saved all
three the embarrassment of losing their tempers. Even more important, such
information would have helped them to borrow money at a time when their
businesses needed it badly.
This Aid is designed to give the highlights of what is involved in sound
business borrowing. It should be helpful to those who have little or no
experience with borrowing. More experienced owner-managers should find it
useful in re-evaluating their borrowing operations.
Is Your Firm Credit Worthy?
The ability to obtain money when you need it is as necessary to the
operation of your business as is a good location or the right equipment,
reliable sources of supplies and materials, or an adequate labour force.
Before a bank or any other lending agency will lend you money, the loan
officer must feel satisfied with the answers to the five following
questions:
1. What sort of person are you, the prospective borrower? By all odds, the
character of the borrower comes first. Next is your ability to manage your
business.
2. What are you going to do with the money? The answer to this question
will determine the type of loan, short or long-term. Money to be used for
the purchase of seasonal inventory will require quicker repayment than
money used to buy fixed assets.
3. When and how do you plan to pay it back? Your banker's judgment of your
business ability and the type of loan will be a deciding factor in the
answer to this question.
4. Is the cushion in the loan large enough? In other words, does the amount
requested make suitable allowance for unexpected developments? The banker
decides this question on the basis of your financial statement which sets
forth the condition of your business and on the collateral pledged.
5. What is the outlook for business in general and for your business
particularly?
Adequate Financial Data is a "Must."
The banker wants to make loans to businesses which are solvent, profitable,
and growing. The two basic financial statements used to determine those
conditions are the balance sheet and profit-and-loss statement. The former
is the major yardstick for solvency and the latter for profits. A
continuous series of these two statements over a period of time is the
principal device for measuring financial stability and growth potential.
In interviewing loan applicants and in studying their records, the banker
is especially interested in the following facts and figures.
General Information: Are the books and records up-to-date and in good
condition? What is the condition of accounts payable? Of notes payable?
What are the salaries of the owner-manager and other company officers? Are
all taxes being paid currently? What is the order backlog? What is the
number of employees? What is the insurance coverage?
Accounts Receivable: Are there indications that some of the accounts
receivable have already been pledged to another creditor? What is the
accounts receivable turnover? Is the accounts receivable total weakened
because many customers are far behind in their payments? Has a large enough
reserve been set up to cover doubtful accounts? How much do the largest
accounts owe and what percentage of your total accounts does this amount
represent?
Inventories: Is merchandise in good shape or will it have to be marked
down? How much raw material is on hand? How much work is in process? How
much of the inventory is finished goods?
Is there any obsolete inventory? Has an excessive amount of inventory been
consigned to customers? Is inventory turnover in line with the turnover for
other businesses in the same industry? Or is money being tied up too long
in inventory?
Fixed Assets: What is the type, age, and condition of the equipment? What
are the depreciation policies? What are the details of mortgages or
conditional sales contracts? What are the future acquisition plans?
What Kind of Money?
When you set out to borrow money for your firm, it is important to know the
kind of money you need from a bank or other lending institution. There are
three kinds of money: short term, term money, and equity capital.
Keep in mind that the purpose for which the funds are to be used is an
important factor in deciding the kind of money needed. But even so,
deciding what kind of money to use is not always easy. It is sometimes
complicated by the fact that you may be using some of the various kinds of
money at the same time and for identical purposes.
Keep in mind that a very important distinction between the types of money
is the source of repayment. Generally, short-term loans are repaid from the
liquidation of current assets which they have financed. Long-term loans are
usually repaid from earnings.
Short-Term Bank Loans
You can use short-term bank loans for purposes such as financing accounts
receivable for, say 30 to 60 days. Or you can use them for purposes that
take longer to pay off--such as for building a seasonal inventory over a
period of 5 to 6 months. Usually, lenders expect short-term loans to be
repaid after their purposes have been served: for example, accounts
receivable loans, when the outstanding accounts have been paid by the
borrower's customers, and inventory loans, when the inventory has been
converted into saleable merchandise.
Banks grant such money either on your general credit reputation with an
unsecured loan or on a secured loan.
The unsecured loan is the most frequently used form of bank credit for
short-term purposes. You do not have to put up collateral because the bank
relies on your credit reputation.
The secured loan involves a pledge of some or all of your assets. The bank
requires security as a protection for its depositors against the risks that
are involved even in business situations where the chances of success are
good.
Term Borrowing
Term borrowing provides money you plan to pay back over a fairly long time.
Some people break it down into two forms: (1) intermediate--loans longer
than 1 year but less than 5 years, and (2) long-term--loans for more than 5
years.
However, for your purpose of matching the kind of money to the needs of
your company, think of term borrowing as a kind of money which you probably
will pay back in periodic instalments from earnings.
Equity Capital
Some people confuse term borrowing and equity (or investment) capital. Yet
there is a big difference. You don't have to repay equity money. It is
money you get by selling a part interest in your business.
You take people into your company who are willing to risk their money in
it. They are interested in potential income rather than in an immediate
return on their investment.
How Much Money?
The amount of money you need to borrow depends on the purpose for which you
need funds. Figuring the amount of money required for business
construction, conversion, or expansion--term loans or equity capital--is
relatively easy. Equipment manufacturers, architects, and builders will
readily supply you with cost estimates. On the other hand, the amount of
working capital you need depends upon the type of business you're in. While
rule-of-thumb ratios may be helpful as a starting point, a detailed
projection of sources and uses of funds over some future period of
time--usually for 12 months--is a better approach. In this way, the
characteristics of the particular situation can be taken into account. Such
a projection is developed through the combination of a predicted budget and
a cash forecast.
The budget is based on recent operating experience plus your best judgment
of performance during the coming period. The cash forecast is your
estimates of cash receipts and disbursements during the budget period.
Thus, the budget and the cash forecast together represent your plan for
meeting your working capital requirements.
To plan your working capital requirements, it is important to know the
"cash flow" which your business will generate. This involves simply a
consideration of all elements of cash receipts and disbursements at the
time they occur. These elements are listed in the profit-and-loss statement
which has been adapted to show cash flow. They should be projected for each
month.
What Kind of Collateral?
Sometimes, your signature is the only security the bank needs when making a
loan. At other times, the bank requires additional assurance that the money
will be repaid. The kind and amount of security depends on the bank and on
the borrower's situation.
If the loan required cannot be justified by the borrower's financial
statements alone, a pledge of security may bridge the gap. The types of
security are: endorsers; co maker and guarantors; assignment of leases;
trust receipts and floor planning; chattel mortgages; real estate; accounts
receivables; savings accounts; life insurance policies; and stocks and
bonds. In a substantial number of States where the Uniform Commercial Code
has been enacted, paperwork for recording loan transactions will be greatly
simplified.
Endorsers, Co-makers, and Guarantors
Borrowers often get other people to sign a note in order to bolster their
own credit. These endorsers are contingently liable for the note they sign.
If the borrower fails to pay up, the bank expects the endorser to make the
note good. Sometimes, the endorser may be asked to pledge assets or
securities too.
A co-maker is one who creates an obligation jointly with the borrower. In
such cases, the bank can collect directly from either the maker or the
co-maker.
A guarantor is one who guarantees the payment of a note by signing a
guaranty commitment. Both private and government lenders often require
guarantees from officers of corporations in order to assure continuity of
effective management. Sometimes, a manufacturer will act as guarantor for
customers.
Assignment of Leases
The assigned lease as security is similar to the guarantee. It is used, for
example, in some franchise situations.
The bank lends the money on a building and takes a mortgage. Then the
lease, which the dealer and the parent franchise company work out, is
assigned so that the bank automatically receives the rent payments. In this
manner, the bank is guaranteed repayment of the loan.
Warehouse Receipts
Banks also take commodities as security by lending money on a warehouse
receipt. Such a receipt is usually delivered directly to the bank and shows
that the merchandise used as security either has been placed in a public
warehouse or has been left on your premises under the control of one of
your employees who is bonded (as in field warehousing). Such loans are
generally made on staple or standard merchandise which can be readily
marketed. The typical warehouse receipt loan is for a percentage of the
estimated value of the goods used as security.
Trust Receipts and Floor Planning
Merchandise, such as automobiles, appliances, and boats, has to be
displayed to be sold. The only way many small marketers can afford such
displays is by borrowing money. Such loans are often secured by a note and
a trust receipt.
This trust receipt is the legal paper for floor planning. It is used for
serial-numbered merchandise. When you sign one, you (1) acknowledge receipt
of the merchandise, (2) agree to keep the merchandise in trust for the
bank, and (3) promise to pay the bank as you sell the goods.
Chattel Mortgages
If you buy equipment such as a cash register or a delivery truck, you may
want to get a chattel mortgage loan. You give the bank a lien on the
equipment you are buying.
The bank also evaluates the present and future market value of the
equipment being used to secure the loan. How rapidly will it depreciate?
Does the borrower have the necessary fire, theft, property damage, and
public liability insurance on the equipment? The banker has to be sure that
the borrower protects the equipment.
Real Estate
Real estate is another form of collateral for long-term loans. When taking
a real estate mortgage, the bank finds out: (1) the location of the real
estate, (2) its physical condition, (3) its foreclosure value, and (4) the
amount of insurance carried on the property.
Accounts Receivable
Many banks lend money on accounts receivable. In effect, you are counting
on your customers to pay your note.
The bank may take accounts receivable on a notification or a
no notification plan. Under the notification plan, the purchaser of the
goods is informed by the bank that his or her account has been assigned to
it and he or she is asked to pay the bank. Under the no notification plan,
the borrower's customers continue to pay you the sums due on their accounts
and you pay the bank.
Savings Accounts
Sometimes, you might get a loan by assigning to the bank a savings account.
In such cases, the bank gets an assignment from you and keeps your
passbook. If you assign an account in another bank as collateral, the
lending bank asks the other bank to mark its records to show that the
account is held as collateral.
Life Insurance
Another kind of collateral is life insurance. Banks will lend up to the
cash value of a life insurance policy. You have to assign the policy to the
bank.
If the policy is on the life of an executive of a small corporation,
corporate resolutions must be made authorizing the assignment. Most
insurance companies allow you to sign the policy back to the original
beneficiary when the assignment to the bank ends.
Some people like to use life insurance as collateral rather than borrow
directly from insurance companies. One reason is that a bank loan is often
more convenient to obtain and usually may be obtained at a lower interest
rate.
Stocks and Bonds
If you use stocks and bonds as collateral, they must be marketable. As a
protection against market declines and possible expenses of liquidation,
banks usually lend no more than 75 percent of the market value of high
grade stock. On Federal Government or municipal bonds, they may be willing
to lend 90 percent or more of their market value.
The bank may ask the borrower for additional security or payment whenever
the market value of the stocks or bonds drops below the bank's required
margin.
What Are the Lender's Rules?
Lending institutions are not just interested in loan repayments. They are
also interested in borrowers with healthy profit-making businesses.
Therefore, whether or not collateral is required for a loan, they set loan
limitations and restrictions to protect themselves against unnecessary risk
and at the same time against poor management practices by their borrowers.
Often some owner/managers consider loan limitations a burden.
Yet others feel that such limitations also offer an opportunity for
improving their management techniques.
Especially in making long-term loans, the borrower as well as the lender
should be thinking of: (1) the net earning power of the borrowing company,
(2) the capability of its management, (3) the long range prospects of the
company, and (4) the long range prospects of the industry of which the
company is a part. Such factors often mean that limitations increase as the
duration of the loan increases.
What Kinds of Limitations?
The kinds of limitations, which an owner-manager finds set upon the company
depends, to a great extent, on the company. If the company is a good risk,
only minimum limitations need be set. A poor risk, of course, is different.
Its limitations should be greater than those of a stronger company.
Look now for a few moments at the kinds of limitations and restrictions
which the lender may set. Knowing what they are can help you see how they
affect your operations.
The limitations which you will usually run into when you borrow money are:
(1) Repayment terms.
(2) Pledging or the use of security.
(3) Periodic reporting.
A loan agreement, as you may already know, is a tailor-made document
covering, or referring to, all the terms and conditions of the loan. With
it, the lender does two things: (1) protects position as a creditor (keeps
that position in as protected a state as it was on the date the loan was
made) and (2) assures repayment according to the terms.
The lender reasons that the borrower's business should generate enough
funds to repay the loan while taking care of other needs. The lender
considers that cash inflow should be great enough to do this without
hurting the working capital of the borrower.
Covenants--Negative and Positive
The actual restrictions in a loan agreement come under a section known as
covenants. Negative covenants are things which the borrower may not do
without prior approval from the lender. Some examples are: further
additions to the borrower's total debt, non-pledge to others of the
borrower's assets, and issuance of dividends in excess of the terms of the
loan agreement.
On the other hand, positive covenants spell out things which the borrower
must do. Some examples are: (1) maintenance of a minimum net working
capital. (2) carrying of adequate insurance, (3) repaying the loan
according to the terms of the agreement, and (4) supplying the lender with
financial statements and reports.
Overall, however, loan agreements may be amended from time to time and
exceptions made. Certain provisions may be waived from one year to the next
with the consent of the lender.
You Can Negotiate
Next time you go to borrow money, thrash out the lending terms before you
sign. It is good practice no matter how badly you may need the money. Ask
to see the papers in advance of the loan closing. Legitimate lenders are
glad to cooperate.
Chances are that the lender may "give" some on the terms. Keep in mind also
that, while you're mulling over the terms, you may want to get the advice
of your associates and outside advisors. In short, try to get terms which
you know your company can live with. Remember, however, that once the terms
have been agreed upon and the loan is made (or authorized as in the case of
SBA), you are bound by them.
The Loan Application
Now you have read about the various aspects of the lending process and are
ready to apply for a loan. Banks and other private lending institutions, as
well as the Small Business Administration, require a loan application on
which you list certain information about your business.
For the purposes of explaining a loan application, this Aid uses the Small
Business Administration's application for a loan (SBA Form 4 not included).
The SBA form is more detailed than most bank forms. The bank has the
advantage of prior knowledge of the applicant and his or her activities.
Since SBA does not have such knowledge, its form is more detailed.
Moreover, the longer maturities of SBA loans ordinarily will necessitate
more knowledge about the applicant.
Before you get to the point of filling out a loan application, you should
have talked with an SBA representative, or perhaps your accountant or
banker, to make sure that your business is eligible for an SBA loan.
Because of public policy, SBA cannot make certain types of loans. Nor can
it make loans under certain conditions. For example, if you can get a loan
on reasonable terms from a bank, SBA cannot lend you money. The
owner-manager is also not eligible for an SBA loan if he or she can get
funds by selling assets which his or her company does not need in order to
grow.
When the SBA representative gives you a loan application, you will notice
that most of its sections ("Application for Loan"--SBA Form 4) are
self-explanatory. However, some applicants have trouble with certain
sections because they do not know where to go to get the necessary
information.
Section 3--"Collateral Offered" is an example. A company's books should
show the net value of assets such as business real estate and business
machinery and equipment. "Net" means what you paid for such assets less
depreciation.
If an owner-manager's records do not contain detailed information on
business collateral, such as real estate and machinery and equipment, the
bank sometimes can get it from your Federal income tax returns. Reviewing
the depreciation which you have taken for tax purposes on such collateral
can be helpful in arriving at the value of these assets.
If you are a good manager, you should have your books balanced monthly.
However, some businesses prepare balance sheets less regularly. In filling
out your "Balance Sheet as of ______ 19 ____, Fiscal Year Ends ________,"
remember that you must show the condition of you business within 60 days of
the date on your loan application. It is best to get expert advice when
working up such vital information. Your accountant or banker will be able
to help you.
Cash Budget
(For three months, ending March 31, 19___)
January February March
Budget Actual Budget Actual Budget Actual
Expected Cash Receipts:
1. Cash sales
2. Collections on accounts
receivable
3. Other income
4. Total cash receipts
Expected Cash Payments
5. Raw materials
6. Payroll
7. Other factory expenses
(including maintenance)
8. Advertising
9. Selling expense
10. Administrative expense
(including salary of
owner-manager)
11. New plant and equipment
12. Other payments (taxes,
including estimated
income tax; repayment of
loans; interest; etc.)
13. Total cash payments
14. Expected Cash Balance at
beginning of the month
15. Cash increase or decrease
(item 4 minus item 13)
16. Expected cash balance at
end of month (item 14
plus item 15)
17. Desired working cash balance
18. Short-term loans needed
(item 17 minus item 16, if
item 17 is larger)
19. Cash available for dividends,
capital cash expenditures,
and/or short investments
(item 16 minus item
17, if item 16 is larger
than item 17)
Capital Cash:
20. Cash available (item 19
after deducting dividends,
etc.)
21. Desired capital cash (item
11, new plant equipment)
22. Long-term loans needed
(item 21 less item 20, if
item 20 is larger than
item 20)
Again, if your records do not show the details necessary for working up
profit and loss statements, your Federal income tax returns may be useful
in getting together facts for the SBA loan application.
Insurance
SBA also needs information about the kinds of insurance a company carries.
The owner-manager gives these facts by listing various insurance policies.
Personal Finances
SBA also must know something about the personal financial condition of the
applicant. Among the types of information are: personal cash position;
source of income including salary and personal investments; stocks, bonds,
real estate, and other property owned in the applicant's own name; personal
debts including instalment credit payments, life insurance premiums, and
so forth.
Evaluating the Application
Once you have supplied the necessary information, the next step in the
borrowing process is the evaluation of your application. Whether the
processing officer is in a bank or in SBA, the officer considers the same
kinds of things when determining whether to grant or refuse the loan. The
SBA loan processor looks for:
(1) The borrower's debt paying record to suppliers, banks, home mortgage
holders, and other creditors.
(2) The ratio of the borrower's debt to net worth.
(3) The past earnings of the company.
(4) The value and condition of the collateral which the borrower offers for
security.
The SBA loan processor also looks for: (1) the borrower's management
ability, (2) the borrower's character, and (3) the future prospects of the
borrower's business.
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Computer Information You Need To Know
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This is a great older article on computer technology. It is probably from around the mid to late nineties. It has a great retro feel to it. But it also feels very dated and goes to show how quickly technology in this field moves. I hope some one out there enjoys this article.
This is a series of reports to help you understand the world
of computers and to determine how they can bring many benefits to your
personal life and home business. So, if you want to read the entire series
and learn along with us - you'll need to contact THE PUBLISHER right away
to make sure they mail you copies of the entire report series.
Getting Familiar with the PC Computer:
Before you purchase your new computer, you must first understand a little
about them. There are 2 parts needed to complete a computer system -
The HARDWARE and the SOFTWARE. The hardware is what you carry home
when you purchase one. Hardware consists of the following components:
� CPU (Central Processing Unit). This is the square part of your computer
system that houses the floppy disk drive and hard drive.
� Monitor. This is the television-type screen of the computer you use to
type and create your work on.
� Keyboard. This is the typewriter-like keys you use to type in
information and commands for your computer to understand.
� Printer. This is what you use to print out your data (letters, mailing
lists, and everything else.)
� RAM (Random Access Memory). The amount of information your monitor can
hold at one time is called RAM. Computer memory is measured in bytes
and megabytes (1,000 bytes = 1 megabyte and is expressed: 1MG.)
The more RAM your monitor has, the better. Be sure and get a minimum
of 1MG of RAM for your monitor to run most of the software on the
market today; preferably 4MG if you can afford it.
� Hard Drive. Your hard drive is a gigantic storage tank for all your
software. It's impossible to operate any software on the market today
(unless you just want to play simple games) without a hard drive.
A hard drive takes the place of floppy disks. You copy information
from your floppy disks to your hard drive and it stays there - even
when you turn your computer off at night. The size of a hard drive
is measured in MG's (megabytes). A standard size hard drive to purchase
to run most of the software on the market today would be 120MG.
Anything less means you will have to purchase more floppy disks as you
fill up your hard drive, which will slow up your operation considerably.
The second part of your computer system is the SOFTWARE. Without software
your computer will just sit on the desk and look at you. It's like buying a
toaster without an electric cord. Without a means of plugging the toaster
into the electric socket, the toaster will not work. Without software, a
computer will not work. Therefore, don't be surprised when you spend $500
to $3,000 for a computer and find out you have to invest another $200 or
more for the beginning software.
Shareware programs are very popular with new computer buyers to reduce this
cost - but you do need to invest some money in a good word processing package
(like WordPerfect� or Word for Windows.) If you purchase a new computer,
normally most of your beginning software is supplied to you from the factory
and if your first computer is purchased from an individual advertising in the
paper - they normally give you free software too. But be prepared to buy
specific software for your specific needs now or soon because your individual
needs may differ.
When you start pricing computer systems you will find they range considerably
in price. This is because you can mix-and-match all the custom qualities
available to you in almost any way to fit your particular budget. Since most
beginners don't know enough about a computer or how they'll effect their
lives, it's sometimes impossible to mix-and-match to your particular needs
when you don't even know what they are. A good mail order publication for
computer bargains is the Grapevine Journal, PO Box 488, Bluff City TN 37618
but perhaps the following will help:
Like a television set, monitors come in black/white or colour. If you want to
save $150 or more, just specify that you want a black/white monitor.
To further confuse you though - both black/white and colour monitors also
come in a variety of types. Each type determines how clear and definite
things appear on the screen. Different types include VGA, Super VGA, CGA,
EGA, PGA, MDA and Hercules. The industry standard at this time is Super VGA.
It's compatible with almost every type of software. It's clear and easy on
your eyes and very affordable. You can purchase a Super VGA colour or a
Super VGA black/white.
To complete your computer system purchase, you'll need to choose the right
printer for your needs. Since there is such a wide variety to choose from
with prices ranging from $120 to $6,000 we need to look at what each one is,
and how much it costs to operate and maintain.
� Dot-Matrix Printers. These printers print using a series of dots.
There are 9-pin and 24-pin dot matrix printers. A 9-pin will print
9 dots per inch on your paper, where a 24-pin will print 24 dots per
inch on your paper. Naturally, a 24-pin is going to make your print-out
with more detail and clarity because there is more printing per inch
therefore if there is only a small difference in price _ you should get
the 24-pin. Dot-matrix printers don't cost much to maintain. They use
a printer ribbon similar to a typewriter ribbon at an average cost of
$12 each. The ribbon has about the same life as a typewriter ribbon,
so you be the judge as to how long they'll last you. A dot matrix
printer is a perfect investment if you plan to use your computer for
mailing lists and occasional writing of letters.
There is also a software you can buy called "Emu laser" (purchase from
Tiger Software for $69.95 by calling 1-800-888-4437) that will make your
dot matrix printer think it's a laser printer. The print-out will almost
be of the same professional quality but your printer will print much
slower. (Emu laser is not recommended for older computers with a 8086
or similar processor. A minimum of a 286 or 386-based computer system
is recommended)
� Daisy Wheel Printers. Don't get stuck with one of these. Remember the
old IBM Electric typewriters that used a wheel to type a character
instead of a typewriter key?
This is what a daisy wheel printer uses. You can NEVER print a
photograph or picture and it's not too great at drawing lines and boxes
either. Besides, you can get a dot matrix printer for a much lower
price and print anything you want to!
� Inkjet and Bubble jet Printers. Both of these printers use a WET ink to
print onto the paper. There is no danger in smearing because the ink
dries instantaneously _ however, if the printed page draws moisture or
something is spilled on it, you could have a few problems and have to
print the page again. Although they are not costly to maintain, if you
have a mail order business the chances of ink smearing during the
mailing process is greater. Therefore, inkjet and bubble jet printers
should not be used _ especially for printing labels to apply to the
outside of the envelope.
� Laser Printers. If you plan to do more with your computer than maintain
mailing lists, keep records and write occasional letters; you will want
to seriously look at purchasing a laser printer. A laser printer hardly
ever wears out and is one of the best investments you can make if you're
in for the long-haul. A laser printer is like a mini-computer. It has a
memory board in it and will accumulate an entire page in it's memory
banks BEFORE it prints the page. Just like making sure you have enough
RAM in your computer to operate the software, you need enough RAM in
your laser printer to print a page. How much memory do you need? If
all you wanted to print was a 1-page letter containing only words you
could print it on a laser printer with 512K of memory. However, if you
want to print that same letter with a graphic (cartoon, photograph,
lines, boxes, etc.) you would need more memory in your printer. The
"safe" amount to purchase would be 1MB but we highly recommend 4MB.
This way, you won't be in any trouble when you are trying to print
something that takes up 2MB of memory and you only have 1MG on your
printer.
After you've found the best computer for your needs at a price you could
afford, it's time to read over the manufacturer manuals that come with your
computer. Even if you can't understand them, at least spend time to peruse
the information over once. This step is important in your learning process
and to understand the particular computer and printer you purchased.
If you purchased a brand new computer, the manufacturer has probably already
installed everything on your hard drive so all you have to do is turn the
computer on and work through the on-screen learning tutorial to get you up
and running quickly. If not - and if you're still confused after going
through the tutorial, simply enrol in a computer class in your area.
These classes are not expensive and shouldn't cost more than $10 for a 1-day
class. If you purchased a brand new computer at a computer store in your city
or town, most of them will give you a free lesson or two. Or, perhaps you
know a friend or relative that already has own of their own and can give you
some one-on-one instruction.
Whatever method you choose to learn the basic operations of your computer
system is up to you; but do dedicate the first week or so of your life with
your new computer friend to learning how it operates. This basic training
ground is essential in your growth and the growth of your business.
You Finally Got the Thing Ready to Go - Right? So now you have learned how
to turn the thing on and do a few things. Perhaps you have even advanced to
the point of typing your first letter and have printed it out on your
printer. Great! You are progressing fine.
But now we're up to the costly part of owning a computer - purchasing
additional software. As previously discussed, software is the programs
that you buy in order to make the computer do what you want it to do.
If you want to write a letter, you have to have a word processing software
program (e.g., WordPerfect or Microsoft Word.) If you want to keep records
of your checking account, you will have to buy a separate software program
to do that; and still another separate database software to maintain your
mailing list.
Most beginners will ask: "Isn't there just one big software program I can
buy that will do everything?" The answer is NO. This is how software
manufacturers stay in business. Besides, a computer is customized to YOU
and your particular needs. You may be an artist and want to purchase a
software program for drawing pictures on your computer. I, on the other
hand, would have no use for a program like this since I can't draw.
Therefore, it would be impossible to have one great big software program
that could do everything for everybody and meet every need that everyone
would have.
There are some software packages that come as one entire package and claim
to have most of the software needed by a generalized majority (small
business owners, for instance.) One popular, well-known program is
WordPerfect 6.0. Another one is AmiPro. Both of these are excellent packages
and if you can afford the $300 or so investment right now - this would be the
best recommendation for your initial software purchase.
However, if you cannot afford to buy the system and spend another $300 on
software at the present time you can use alternative solutions. There are
a wide variety of medium-priced packages in the under $100 range from such
companies like Pro-Media International, (800) 998-2822 and Micro Warehouse,
(800) 367-7080 or Windows Exchange, (800) 845-1900 to name a few.
You also might want to consider picking up a copy of Windows Magazine at
the newsstand, or order one directly from the publisher at PO Box 5006,
Pittsfield MA 01203-9951. Undoubtedly Windows was already installed by
the factory when you purchased your system. Windows is an "operating
environment" just like DOS is. An "operating environment" simply means
the major software that other software programs need for them to operate
themselves. DOS means "Disk Operating System" but it also performs
maintenance and protection of your system too.
SELECTING SOFTWARE
Invest on your software wisely. Select your software carefully. One easy way
to do that is to purchase SHAREWARE and FREEWARE before investing the
big bucks. WordPerfect software for instance retails for around $300, but you
can purchase PC Write, a shareware word processing software for $5 from
S-Software (800) 243-1515.
BUYING SHAREWARE
There are some disadvantages when purchasing shareware and freeware.
Some of them are really good while some of them are relatively useless.
This is why it's important to rely on a good shareware distributor (a company
that only deals with selling shareware) that is very selective in the programs
they include in their catalogue. One such company is The American Shareware
Network, 250 Arlington St, Marshfield MA 02050, phone (617) 834-9208.
The American Shareware Network carefully installs and operates the software
program before it is listed in their catalogue for sell. They only choose
top-of-the-line programs that are popular and worth the money. They also are
honest in making sure the diskettes they send the programs on are full. Some
rip-off shareware distributors will take a program that will fit on 1 or 2
disks and split them up into 4 or 5 different one. Then they'll charge you
around $2 per disk and make you think you are getting a bargain. In actuality
you would have been better off purchasing from the shareware distributor that
advertises at a price of $3.49 per disk.
Also, don't make the mistake of going crazy ordering lots of shareware.
You don't want to have 100 different software programs on your computer that
do 100 different things. This would make life too confusing and you'd have to
learn them all. You'd never know any of them well enough - just a little bit
about each one. The whole idea here is to try out several different shareware
programs in the particular software category you need before you invest money
into the commercial software programs.
DESKTOP PUBLISHING
You should streamline your needs and the functions you want your computer to
perform. Most of us will be buying a computer for our home-based business.
Therefore, you need to find a good software program that will do the job you
need for your particular situation. If you're going to be a typesetter, try
out a variety of desktop publishing software until you find the one that does
everything you want it to do and more. One fantastic look-alike of the
popular PageMaker software (retails: $549) is a program called Page Plus. In
1993, the price is only $60 - a 90% savings over its counterpart. (Purchase
from Serif, Inc, PO Box 803, Nashua NH 03061 (800) 869-8909.)
In addition, if you will be selling mailing lists, concentrate on a good
database software. If you will be writing and selling reports, concentrate
on finding a good word processing software. If you plan to draw and create
art, find a good CAD or drawing software program.
After locating the right software for your particular business, go through
the same procedure in finding a good business accounting software you feel
comfortable with so you can keep accurate records of your daily business
transactions.
Do your best to narrow the different software programs on your computer down
to as few as possible. This way, you can really learn each one of them and
become an expert much quicker than trying to learn a whole bunch at once -
thus, creating confusion rather than knowledge.
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This is a great older article on computer technology. It is probably from around the mid to late nineties. It has a great retro feel to it. But it also feels very dated and goes to show how quickly technology in this field moves. I hope some one out there enjoys this article.
This is a series of reports to help you understand the world
of computers and to determine how they can bring many benefits to your
personal life and home business. So, if you want to read the entire series
and learn along with us - you'll need to contact THE PUBLISHER right away
to make sure they mail you copies of the entire report series.
Getting Familiar with the PC Computer:
Before you purchase your new computer, you must first understand a little
about them. There are 2 parts needed to complete a computer system -
The HARDWARE and the SOFTWARE. The hardware is what you carry home
when you purchase one. Hardware consists of the following components:
� CPU (Central Processing Unit). This is the square part of your computer
system that houses the floppy disk drive and hard drive.
� Monitor. This is the television-type screen of the computer you use to
type and create your work on.
� Keyboard. This is the typewriter-like keys you use to type in
information and commands for your computer to understand.
� Printer. This is what you use to print out your data (letters, mailing
lists, and everything else.)
� RAM (Random Access Memory). The amount of information your monitor can
hold at one time is called RAM. Computer memory is measured in bytes
and megabytes (1,000 bytes = 1 megabyte and is expressed: 1MG.)
The more RAM your monitor has, the better. Be sure and get a minimum
of 1MG of RAM for your monitor to run most of the software on the
market today; preferably 4MG if you can afford it.
� Hard Drive. Your hard drive is a gigantic storage tank for all your
software. It's impossible to operate any software on the market today
(unless you just want to play simple games) without a hard drive.
A hard drive takes the place of floppy disks. You copy information
from your floppy disks to your hard drive and it stays there - even
when you turn your computer off at night. The size of a hard drive
is measured in MG's (megabytes). A standard size hard drive to purchase
to run most of the software on the market today would be 120MG.
Anything less means you will have to purchase more floppy disks as you
fill up your hard drive, which will slow up your operation considerably.
The second part of your computer system is the SOFTWARE. Without software
your computer will just sit on the desk and look at you. It's like buying a
toaster without an electric cord. Without a means of plugging the toaster
into the electric socket, the toaster will not work. Without software, a
computer will not work. Therefore, don't be surprised when you spend $500
to $3,000 for a computer and find out you have to invest another $200 or
more for the beginning software.
Shareware programs are very popular with new computer buyers to reduce this
cost - but you do need to invest some money in a good word processing package
(like WordPerfect� or Word for Windows.) If you purchase a new computer,
normally most of your beginning software is supplied to you from the factory
and if your first computer is purchased from an individual advertising in the
paper - they normally give you free software too. But be prepared to buy
specific software for your specific needs now or soon because your individual
needs may differ.
When you start pricing computer systems you will find they range considerably
in price. This is because you can mix-and-match all the custom qualities
available to you in almost any way to fit your particular budget. Since most
beginners don't know enough about a computer or how they'll effect their
lives, it's sometimes impossible to mix-and-match to your particular needs
when you don't even know what they are. A good mail order publication for
computer bargains is the Grapevine Journal, PO Box 488, Bluff City TN 37618
but perhaps the following will help:
Like a television set, monitors come in black/white or colour. If you want to
save $150 or more, just specify that you want a black/white monitor.
To further confuse you though - both black/white and colour monitors also
come in a variety of types. Each type determines how clear and definite
things appear on the screen. Different types include VGA, Super VGA, CGA,
EGA, PGA, MDA and Hercules. The industry standard at this time is Super VGA.
It's compatible with almost every type of software. It's clear and easy on
your eyes and very affordable. You can purchase a Super VGA colour or a
Super VGA black/white.
To complete your computer system purchase, you'll need to choose the right
printer for your needs. Since there is such a wide variety to choose from
with prices ranging from $120 to $6,000 we need to look at what each one is,
and how much it costs to operate and maintain.
� Dot-Matrix Printers. These printers print using a series of dots.
There are 9-pin and 24-pin dot matrix printers. A 9-pin will print
9 dots per inch on your paper, where a 24-pin will print 24 dots per
inch on your paper. Naturally, a 24-pin is going to make your print-out
with more detail and clarity because there is more printing per inch
therefore if there is only a small difference in price _ you should get
the 24-pin. Dot-matrix printers don't cost much to maintain. They use
a printer ribbon similar to a typewriter ribbon at an average cost of
$12 each. The ribbon has about the same life as a typewriter ribbon,
so you be the judge as to how long they'll last you. A dot matrix
printer is a perfect investment if you plan to use your computer for
mailing lists and occasional writing of letters.
There is also a software you can buy called "Emu laser" (purchase from
Tiger Software for $69.95 by calling 1-800-888-4437) that will make your
dot matrix printer think it's a laser printer. The print-out will almost
be of the same professional quality but your printer will print much
slower. (Emu laser is not recommended for older computers with a 8086
or similar processor. A minimum of a 286 or 386-based computer system
is recommended)
� Daisy Wheel Printers. Don't get stuck with one of these. Remember the
old IBM Electric typewriters that used a wheel to type a character
instead of a typewriter key?
This is what a daisy wheel printer uses. You can NEVER print a
photograph or picture and it's not too great at drawing lines and boxes
either. Besides, you can get a dot matrix printer for a much lower
price and print anything you want to!
� Inkjet and Bubble jet Printers. Both of these printers use a WET ink to
print onto the paper. There is no danger in smearing because the ink
dries instantaneously _ however, if the printed page draws moisture or
something is spilled on it, you could have a few problems and have to
print the page again. Although they are not costly to maintain, if you
have a mail order business the chances of ink smearing during the
mailing process is greater. Therefore, inkjet and bubble jet printers
should not be used _ especially for printing labels to apply to the
outside of the envelope.
� Laser Printers. If you plan to do more with your computer than maintain
mailing lists, keep records and write occasional letters; you will want
to seriously look at purchasing a laser printer. A laser printer hardly
ever wears out and is one of the best investments you can make if you're
in for the long-haul. A laser printer is like a mini-computer. It has a
memory board in it and will accumulate an entire page in it's memory
banks BEFORE it prints the page. Just like making sure you have enough
RAM in your computer to operate the software, you need enough RAM in
your laser printer to print a page. How much memory do you need? If
all you wanted to print was a 1-page letter containing only words you
could print it on a laser printer with 512K of memory. However, if you
want to print that same letter with a graphic (cartoon, photograph,
lines, boxes, etc.) you would need more memory in your printer. The
"safe" amount to purchase would be 1MB but we highly recommend 4MB.
This way, you won't be in any trouble when you are trying to print
something that takes up 2MB of memory and you only have 1MG on your
printer.
After you've found the best computer for your needs at a price you could
afford, it's time to read over the manufacturer manuals that come with your
computer. Even if you can't understand them, at least spend time to peruse
the information over once. This step is important in your learning process
and to understand the particular computer and printer you purchased.
If you purchased a brand new computer, the manufacturer has probably already
installed everything on your hard drive so all you have to do is turn the
computer on and work through the on-screen learning tutorial to get you up
and running quickly. If not - and if you're still confused after going
through the tutorial, simply enrol in a computer class in your area.
These classes are not expensive and shouldn't cost more than $10 for a 1-day
class. If you purchased a brand new computer at a computer store in your city
or town, most of them will give you a free lesson or two. Or, perhaps you
know a friend or relative that already has own of their own and can give you
some one-on-one instruction.
Whatever method you choose to learn the basic operations of your computer
system is up to you; but do dedicate the first week or so of your life with
your new computer friend to learning how it operates. This basic training
ground is essential in your growth and the growth of your business.
You Finally Got the Thing Ready to Go - Right? So now you have learned how
to turn the thing on and do a few things. Perhaps you have even advanced to
the point of typing your first letter and have printed it out on your
printer. Great! You are progressing fine.
But now we're up to the costly part of owning a computer - purchasing
additional software. As previously discussed, software is the programs
that you buy in order to make the computer do what you want it to do.
If you want to write a letter, you have to have a word processing software
program (e.g., WordPerfect or Microsoft Word.) If you want to keep records
of your checking account, you will have to buy a separate software program
to do that; and still another separate database software to maintain your
mailing list.
Most beginners will ask: "Isn't there just one big software program I can
buy that will do everything?" The answer is NO. This is how software
manufacturers stay in business. Besides, a computer is customized to YOU
and your particular needs. You may be an artist and want to purchase a
software program for drawing pictures on your computer. I, on the other
hand, would have no use for a program like this since I can't draw.
Therefore, it would be impossible to have one great big software program
that could do everything for everybody and meet every need that everyone
would have.
There are some software packages that come as one entire package and claim
to have most of the software needed by a generalized majority (small
business owners, for instance.) One popular, well-known program is
WordPerfect 6.0. Another one is AmiPro. Both of these are excellent packages
and if you can afford the $300 or so investment right now - this would be the
best recommendation for your initial software purchase.
However, if you cannot afford to buy the system and spend another $300 on
software at the present time you can use alternative solutions. There are
a wide variety of medium-priced packages in the under $100 range from such
companies like Pro-Media International, (800) 998-2822 and Micro Warehouse,
(800) 367-7080 or Windows Exchange, (800) 845-1900 to name a few.
You also might want to consider picking up a copy of Windows Magazine at
the newsstand, or order one directly from the publisher at PO Box 5006,
Pittsfield MA 01203-9951. Undoubtedly Windows was already installed by
the factory when you purchased your system. Windows is an "operating
environment" just like DOS is. An "operating environment" simply means
the major software that other software programs need for them to operate
themselves. DOS means "Disk Operating System" but it also performs
maintenance and protection of your system too.
SELECTING SOFTWARE
Invest on your software wisely. Select your software carefully. One easy way
to do that is to purchase SHAREWARE and FREEWARE before investing the
big bucks. WordPerfect software for instance retails for around $300, but you
can purchase PC Write, a shareware word processing software for $5 from
S-Software (800) 243-1515.
BUYING SHAREWARE
There are some disadvantages when purchasing shareware and freeware.
Some of them are really good while some of them are relatively useless.
This is why it's important to rely on a good shareware distributor (a company
that only deals with selling shareware) that is very selective in the programs
they include in their catalogue. One such company is The American Shareware
Network, 250 Arlington St, Marshfield MA 02050, phone (617) 834-9208.
The American Shareware Network carefully installs and operates the software
program before it is listed in their catalogue for sell. They only choose
top-of-the-line programs that are popular and worth the money. They also are
honest in making sure the diskettes they send the programs on are full. Some
rip-off shareware distributors will take a program that will fit on 1 or 2
disks and split them up into 4 or 5 different one. Then they'll charge you
around $2 per disk and make you think you are getting a bargain. In actuality
you would have been better off purchasing from the shareware distributor that
advertises at a price of $3.49 per disk.
Also, don't make the mistake of going crazy ordering lots of shareware.
You don't want to have 100 different software programs on your computer that
do 100 different things. This would make life too confusing and you'd have to
learn them all. You'd never know any of them well enough - just a little bit
about each one. The whole idea here is to try out several different shareware
programs in the particular software category you need before you invest money
into the commercial software programs.
DESKTOP PUBLISHING
You should streamline your needs and the functions you want your computer to
perform. Most of us will be buying a computer for our home-based business.
Therefore, you need to find a good software program that will do the job you
need for your particular situation. If you're going to be a typesetter, try
out a variety of desktop publishing software until you find the one that does
everything you want it to do and more. One fantastic look-alike of the
popular PageMaker software (retails: $549) is a program called Page Plus. In
1993, the price is only $60 - a 90% savings over its counterpart. (Purchase
from Serif, Inc, PO Box 803, Nashua NH 03061 (800) 869-8909.)
In addition, if you will be selling mailing lists, concentrate on a good
database software. If you will be writing and selling reports, concentrate
on finding a good word processing software. If you plan to draw and create
art, find a good CAD or drawing software program.
After locating the right software for your particular business, go through
the same procedure in finding a good business accounting software you feel
comfortable with so you can keep accurate records of your daily business
transactions.
Do your best to narrow the different software programs on your computer down
to as few as possible. This way, you can really learn each one of them and
become an expert much quicker than trying to learn a whole bunch at once -
thus, creating confusion rather than knowledge.
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Wednesday, June 25, 2008
Secrets Of Successful Authors
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When the writing bug hits you, get out your pencil, typewriter,
word processor or tape recorder and go to work.
Personal wants and desires, such as "How to Make Money" can put
you on the road to success in the writing field. there are five
main emotional appeals for selling this kind of publication:
Money, Self Preservation, Family, Romance, Recognition. These
appeals can all be built into your writings.
It pays to make up a good advertising schedule several months in
advance and when you do hit the pages with your ads, be sure
they "Drip" with enthusiasm!
The title is of the greatest importance. It alone can determine
the sales volume to a large degree. Price your report so that
you can come out with a good profit. You will want to make
tests to see if your publication will bring in the required
price before going into full scale advertising.
Most people are dreamers not "doers". It is only a short step
to be a doer. Just do it!
Sometimes it is better to write a strong ad before you write the
report, then make the report live up to your ad. Make your ads
friendly.
Write about a special subject in a unique way: Strive to write
in such a way that you will get repeat orders or will receive
orders from the same customers for your other books and
products. Have a follow-up program ready to go.
Ship your orders without delay. Don't hold them up for checks
to clear. It will do you much more damage than getting a few
bad checks. Offer a free bonus for "buying today".
Get quality printing for use with all your paper needs
(letterheads, envelopes, circulars, sales letters, return
envelopes, order forms, etc.)
You can set up a distributor program, sell your publications
direct to the consumer, or use both methods.
It's a good idea to give your other publications a boost within
the pages of your other reports and books, but don't brag about
your accomplishments or try to sell all your own products in the
body of your publication.
HOW TO PRICE YOUR BOOK!
Whatever amount you come up with for the price of your book,
remember that advertising expense will usually take 50% to 60%
of your selling price if you are to promote your book properly
and get into the mass market. This only leaves 40% to 50% of
the sales proceeds for all your other expenses and a reasonable
profit for your efforts. And don't forget "all other expenses"
include not only the cost of typesetting, printing, mailing and
other direct expenses, but also includes numerous variable and
indirect expenses; such as auto, depreciation, insurance, and
all the other "general overhead", even if you only work
part-time from your home. Then you must have enough left over
to "pay yourself" a reasonable draw for your time, effort and
risk!
Failure to understand the "Mathematics of Mail Order" is the
basic reason most people do not succeed when trying to sell
books by mail.
One of the most important points to learn about mail-order
mathematics is just exactly where your break-even point is.
This varies drastically depending on the total units produced
and sold. The more units sold the less the cost per unit. In
other words, the more you sell the more flexible you can be in
pricing your product.
Never price a publication at less than total cost, just to
increase sales, unless you have computed correctly that the
increased sales will reduce you unit cost sufficiently to
overcome any potential loss.
On the other side of the "coin", if the price of your
publications is too high, you could be in a worse position than
if selling for only half the price. Maybe a price reduction of
50% will get you 500% more sales thus lowering your variable
costs per unit sufficiently. The loser is immediately turned
into a blockbuster! Only tests will tell!
http://affiliatemarketinginternetprogram.com
http://mywebcashstore.com/barnes0960
http://24hourwebcash.com/barnes0960
http://24hourwebcash.com/barnes0960
http://mywebcashstore.com/barnes0960
When the writing bug hits you, get out your pencil, typewriter,
word processor or tape recorder and go to work.
Personal wants and desires, such as "How to Make Money" can put
you on the road to success in the writing field. there are five
main emotional appeals for selling this kind of publication:
Money, Self Preservation, Family, Romance, Recognition. These
appeals can all be built into your writings.
It pays to make up a good advertising schedule several months in
advance and when you do hit the pages with your ads, be sure
they "Drip" with enthusiasm!
The title is of the greatest importance. It alone can determine
the sales volume to a large degree. Price your report so that
you can come out with a good profit. You will want to make
tests to see if your publication will bring in the required
price before going into full scale advertising.
Most people are dreamers not "doers". It is only a short step
to be a doer. Just do it!
Sometimes it is better to write a strong ad before you write the
report, then make the report live up to your ad. Make your ads
friendly.
Write about a special subject in a unique way: Strive to write
in such a way that you will get repeat orders or will receive
orders from the same customers for your other books and
products. Have a follow-up program ready to go.
Ship your orders without delay. Don't hold them up for checks
to clear. It will do you much more damage than getting a few
bad checks. Offer a free bonus for "buying today".
Get quality printing for use with all your paper needs
(letterheads, envelopes, circulars, sales letters, return
envelopes, order forms, etc.)
You can set up a distributor program, sell your publications
direct to the consumer, or use both methods.
It's a good idea to give your other publications a boost within
the pages of your other reports and books, but don't brag about
your accomplishments or try to sell all your own products in the
body of your publication.
HOW TO PRICE YOUR BOOK!
Whatever amount you come up with for the price of your book,
remember that advertising expense will usually take 50% to 60%
of your selling price if you are to promote your book properly
and get into the mass market. This only leaves 40% to 50% of
the sales proceeds for all your other expenses and a reasonable
profit for your efforts. And don't forget "all other expenses"
include not only the cost of typesetting, printing, mailing and
other direct expenses, but also includes numerous variable and
indirect expenses; such as auto, depreciation, insurance, and
all the other "general overhead", even if you only work
part-time from your home. Then you must have enough left over
to "pay yourself" a reasonable draw for your time, effort and
risk!
Failure to understand the "Mathematics of Mail Order" is the
basic reason most people do not succeed when trying to sell
books by mail.
One of the most important points to learn about mail-order
mathematics is just exactly where your break-even point is.
This varies drastically depending on the total units produced
and sold. The more units sold the less the cost per unit. In
other words, the more you sell the more flexible you can be in
pricing your product.
Never price a publication at less than total cost, just to
increase sales, unless you have computed correctly that the
increased sales will reduce you unit cost sufficiently to
overcome any potential loss.
On the other side of the "coin", if the price of your
publications is too high, you could be in a worse position than
if selling for only half the price. Maybe a price reduction of
50% will get you 500% more sales thus lowering your variable
costs per unit sufficiently. The loser is immediately turned
into a blockbuster! Only tests will tell!
http://affiliatemarketinginternetprogram.com
http://mywebcashstore.com/barnes0960
http://24hourwebcash.com/barnes0960
Monday, June 23, 2008
They Laughed When I Said I Was Starting My Own Business!
Now they are in awe as I live life on my terms! You can too! Read on for details!
http://affiliatemarketinginternetprogram.com
http://24hourwebcash.com/barnes0960
http://mywebcashstore.com/barnes0960
UPDATED "24 Hour Web Cash Business" You can begin making money on the internet immediately with this internet business, thanks to our new updated program. Here's a sampling of what you get with this RISK FREE instant internet business start-up program;
Custom, money making website linked with fortune 500 companies who will pay you to send people to their site.
No inventory
No Selling
Automated system - you earn up to 45% and $500 per referral.
Plus you get THE HOTTEST places in the USA to advertise. Our INSIDER REPORT for finding hot prospects who are looking for what you offer.
We've cracked the code and take the mystery out of making money on the internet. This system puts cash in your pocket in 14 days or less! Builds passive income.
Call today to learn about our RISK FREE PROGRAM
at 1-800-719-8268 0960
P.S. To get over $250 in FREE BONUSES included with your business and website, you must take action within the next 72 hours.
So call 1-800-719-8268 0960 right now!
Or visit; http://24hourwebcash.com/barnes0960 before its too late.
http://affiliatemarketinginternetprogram.com
http://mywebcashstore.com/barnes0960
http://24hourwebcash.com/barnes0960
http://affiliatemarketinginternetprogram.com
http://24hourwebcash.com/barnes0960
http://mywebcashstore.com/barnes0960
UPDATED "24 Hour Web Cash Business" You can begin making money on the internet immediately with this internet business, thanks to our new updated program. Here's a sampling of what you get with this RISK FREE instant internet business start-up program;
Custom, money making website linked with fortune 500 companies who will pay you to send people to their site.
No inventory
No Selling
Automated system - you earn up to 45% and $500 per referral.
Plus you get THE HOTTEST places in the USA to advertise. Our INSIDER REPORT for finding hot prospects who are looking for what you offer.
We've cracked the code and take the mystery out of making money on the internet. This system puts cash in your pocket in 14 days or less! Builds passive income.
Call today to learn about our RISK FREE PROGRAM
at 1-800-719-8268 0960
P.S. To get over $250 in FREE BONUSES included with your business and website, you must take action within the next 72 hours.
So call 1-800-719-8268 0960 right now!
Or visit; http://24hourwebcash.com/barnes0960 before its too late.
http://affiliatemarketinginternetprogram.com
http://mywebcashstore.com/barnes0960
http://24hourwebcash.com/barnes0960
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