Archive for the ‘Business’ Category

Foreign Outsourcing of American Jobs

Is foreign outsourcing of American jobs by American Companies immoral? I Say YES!

Lawmakers in more than 25 states and in the United States Congress have identified foreign outsourcing as a threat to US employment and prosperity. Legislators must ban federal or state contracts with companies that would outsource jobs to foreign countries.

If no action is taking, US companies will continue to fire American workers in significant numbers and replacing them with foreign workers in low-wage countries such as India, China and Eastern Europe.

Of course, outsourcing is nothing new. The US and State governments and American Corporations have been outsourcing domestically for decades such services as data base management, janitorial services and payroll.

The recent increase in foreign outsourcing in which US companies buy services from foreign-based providers has been make increasingly cost effective due to the personal computer and the Internet.

According to the data from several experts, over one third of the world trade growth has been achieved by means of foreign outsourcing to other countries. This has caused the loss of hundreds of thousands of jobs in the United States and has had a major effect on the US Economy.

Foreign outsourcing has changed the demand for skilled and unskilled labor and altered the structure of wages in the United States. Foreign outsourcing sends production to countries where labor costs are lower than in the US.

As a professional web designer, I have seen many American businesses outsource their web projects to foreign countries. American businesses fail to realize that they are spending their money overseas and not supporting the US economy. They are causing American workers to lose their jobs.

Cire Web Site Design & Hosting provides affordable web design and hosting. We have been in business since 1996. Due to foreign outsourcing we have been forced to reduce our workforce by over 70%.

Buying American may cost more, but it is the moral thing to do. Stand proud America and buy American.

No Personal Guarantees….Your Best Deal!!

Things you may not expect USUALLY HAPPEN! Here’s what happened to a good friend of mine several years ago. Timing doesn’t matter, it could happen TODAY.

My friend went out of town on vacation. Upon his return, he discovered that his “PARTNERS” had signed a MAJOR contract to PURCHASE an expensive computer system WITHOUT even consulting with him.

This is why your AGREEMENTS are so IMPORTANT and MUST be in WRITING! My point is…this can happen to you unless your LEGAL advisor has PROTECTED your best interest in the business. You DO NOT want someone making decisions for you when it is YOUR money at RISK. Even more serious is being on the hook for any borrowed funds from your banker.

Small business owners usually sign PERSONAL guarantees with their banker, which means everything YOU own backs up the company debt. Your % ownership is NOT CONSIDERED unless your legal counsel has protected YOU!

It is a MAJOR decision on your part, just as it has been in my case, to be involved with diverse ownership of your business. You could own 8%, 10% of the firm, however, if YOU sign personal guarantees for the debt of the company then you are backing up 100% of the debt, not just the 8% or 10% based on your ownership.

This is very important for you to understand in your business dealings. Do not THINK these personal guarantees don’t hold “water”. Heaven forbid, but IF your business fails and you (your company) owe the bank money, YOUR FRIENDLY BANKER changes his/her personality.

He now becomes your friendly COLLECTOR and demands full payment (immediately!). It is an amazing sight to see. But, you will not be a happy camper with this new person you are about to find on your doorstep.

Keep in mind, the bank will go after the most LIQUID ASSETS owned by you and/or the other partners. Or the easiest property to sell and convert to CASH. It makes no difference to the banker (now collector) who the fortunate one is to cough up the assets or cash from PERSONAL assets.

The bank expects to be PAID. The bank has ONE concern. Protecting their client’s (customer’s) money. You are facing tough times, yet you agreed to hold them harmless by backing up your loan with personal assets.

With good legal advice, you may be able to limit your liability to the % of stock owned rather than to the whole amount owed. You must put this in place as part of your agreement with the bank at the beginning, not after things go sour.

Obviously, NO PERSONAL GUARANTEES is the best deal of all for YOU! Seek your funds from different sources and try to find a bank that will NOT require a personal endorsement. You have served your firm well when you accomplish this goal.

BUSINESS TIP: Let your legal advisor guide you in everything you do; every paper you sign; every decision you make in business. PROTECT the INTEREST of YOUR LOVED ONES!! Do not think, NOTHING can go wrong!! Hire the VERY BEST COUNSEL. OWN 51% of the Stock in your company. THINK long and hard BEFORE accepting any less. Consider all the options available to you

EBITDA – What Does It Mean To You??

If you are just starting your own business, great! If you already have a business, GREAT!! It really does not matter what stage you are currently facing. You MUST have one GOAL in mind when you begin a business.

BUILD YOUR BUSINESS TO SELL!!!

This is the ONLY good reason to start or run your own business. An ideal plan is to set yourself up to sell out and start over every 5 years until you reach the ultimate goal to RETIRE. Obviously, this is not an easy thing to do, but it certainly is a great goal to set into your business plan. Hopefully, you won’t have to face a recession every 5 to 6 years as we did in our 40 plus years business life.

What is EBITDA?? This is a formula that plays into how much you can expect someone to pay for your business in the future. Code: E = earnings; B = before; I = interest; T = taxes; D = depreciation; and the A = amortization. It says, what are your EARNINGS BEFORE INTEREST / TAXES / DEPRECIATION / and AMORTIZATION.

What is your Cash Flow? Your Receivables? Sales Dollars? Expenses? Any buyer will want to know answers to these questions. Plus many more in deciding if they want to buy your business. Another major concern is…who are your customers/clients? How many? Volume of annual business with each? Loyalty to your firm? Will you stay and run the business for the new buyer? Will you carry the note or do you require all cash? Part cash/part stock in a public firm?

You need to know that a publicly traded firm (stock on one of the exchanges) can and will (most likely) pay more for your business than a private suitor. It never hurts to let both private and public firms make you an offer to buy, as you have no way of knowing WHY anybody wants your firm. Everyone will have a different reason based on their future goals and plans in the marketplace.

Just understand NOBODY will love the company like you do today. It’s your BABY. You have raised it from infancy and your life BLOOD / SWEAT and TEARS are all tied up in YOUR value but NOT in the way a buyer will see it. Don’t get your feelings hurt in the process if you really want to sell your business

BUSINESS TIP: A smart business person BUILDS his / her business with ONE GOAL in mind – to turn their effort into VALUE $$$ for a BUYER. NEVER sell to the 1st buyer! Create an AUCTION. People buy a business for reasons YOU may never understand. NOT important! HIRE YOURSELF A DEAL MAKER!!

Starting an affiliate program can be one of the easiest ways to start a home based business. The beauty of having an affiliate program is that you only pay your affiliates when you make money.

An affiliate program will allow you to save money while still achieving valuable advertising. It is the perfect marketing tool because you literally implement an automated advertising campaign that will promote your product or service 24 hours a day, 7 days a week, 365 days a year.

Starting an affiliate program should not be a bank breaking investment. You can hire an affiliate network such as Commission Junction, LinkShare or Performics (Google Affiliate Network), however the start up cost can be expensive and may not fit into your budget. An alternative is to purchase your own affiliate tracking software. This will allow you to start an affiliate program quickly without being required to develop your own software.

Cire Web Site Design & Hosting is using Post Affiliate Pro to manage the Cire Affiliate Network. The software is inexpensive and has many quality features. Post Affiliate Pro is a fully automated and flexible system which allows you to attract, motivate, and reward affiliates who grow your business.

If you cannot find an inexpensive web hosting service to host and support Post Affiliate Pro, contact Cire Web Site Design & Hosting. They have the expertise and experience in using and installing the Post Affiliate Pro tracking software.

Once your affiliate program is launched, a press release should be distributed. PRweb.com allows you to easily send the press release. If you pay them $80, they will guarantee that your press release is picked up by all major search engines, potentially sending you thousands of new affiliates willing to market your products and/or services.

The more affiliates that join your affiliate program, the more money you will make. Manage your affiliates as if they were your most valuable employees. Offer contests, incentives and other perks to keep them motivated.

Starting an affiliate program is a long term commitment and sometimes it may take a while before you really see your program taking off. Remember the main purpose of an affiliate program is to save money while still achieving valuable advertising. If you devote the time and effort to build an affiliate program and if you do it right, affiliate marketing will be your highest return on investment (ROI) of all your advertising efforts.

Choosing a Web Hosting Company

If you are currently engaged in any facet of online business, even service sectors, it is a safe assumption that you pay for hosting your website in some fashion.

Web Hosting choice often comes down to cost, speed, stability, and security.

Cost: While cost is an important factor in choosing a website hosting service, it should be your least important factor. There are many low cost hosting services available, but do they provide support, speed, stability, and security?

Dependence and support: Does the web hosting service provide 24×7 support? Do they respond rapidly to your issue? Can you depend on them?

Degree of reliability, security and speed of access: Speed, security and stability are extremely important for the success of any online business. While choosing a reliable web hosting service you need to ensure that this is taken care of. Your site also has to be secure of intruders at all times. A site that is not available, not updated on time or is down, will lose many online visitors. If an online visitor finds your site listed on a search engine, and he tries to access it but finds it down, he is will move on to the next link and you will lose a potential customer. Even slow working websites are very frustrating.

So how do you know if a hosting company is reliable or not? By word of mouth or feedback from others! If that’s not possible then let me recommend Cire Web Site Design & Hosting, they have been in business since 1996 and have a proven track record. They also guarantee a 99.9% up time and provide 24×7 support. Up time refers to the percentage of time your website is accessible via the Internet.

Web hosting is something that you should just purchase and forget about. Choosing a reliable web hosting company will allow you to focus on your customers, your business and your profitability.

Just for fun…we will assume (a bad idea!) that you are already in business. Your success will “HINGE” on your ability or savvy in hiring staff (personnel). This one responsibility will become your most important JOB!

Obviously, you have to FUND (money) the venture (your business). There are some things we will simply take for granted. You have to pay your staff; buy inventory; rent the building/office; pay for insurance; pay your lawyer and accountants. All of these expenses are automatic. No need to begin if you don’t have the money.

Hiring staff is extremely important. Get experts to help you set up your personnel department BEFORE you hire the first employee (unless it is your spouse or kids!).

You cannot LOOK at a person and make a judgment call simply because you LIKE them. I know, it may be your best friend. Don’t hire him/her! Usually a very bad decision. Remember, we are starting a business, not a buddy group where we will always eat together; work together; sing in the church choir together!

Do you get my point? Don’t do it! It is YOUR money! Your banker expects YOU to pay back the loan. No one else. YOU!! It is your neck that is on the line.

How do you go about hiring staff? Have you ever had the responsibility of hiring in a previous job? Deciding on the best candidate for you to hire? Maybe you have been the hiring authority for a previous employer; could have been a national firm or even a small privately owned firm. It really doesn’t matter. Could have been on a committee responsible for hiring your minister or the director of education or the choirmaster. The point is… this is an extremely important responsibility for any of us to undertake on behalf of our firm, church, association, fraternity, etc.

Investigate the Resume in Detail

It is estimated that over 40% of all resumes have some discrepancy….this means the truth has been stretched to make the person look better than they are. There are professional resume writers that know how to use words. Not always understood as presented…i.e. taking graduate courses, etc. (this apparently means to some that they are taking courses to graduate). I’m sure you understand the point. THEY ARE LIARS!

BUSINESS TIP: Inspect what you expect….an old saying but a wise one. HIRING a new employee is a critical process. Check backgrounds in DETAIL! Resumes are built by professionals…NOT on YOUR TEAM! Take absolutely No chances. Good employees WILL MAKE YOU. BAD EMPLOYEES WILL DESTROY YOU!

Mobile commerce is commonly referred to as mCommerce. It is the mobile version of e-commerce. mCommerce is where eCommerce was a few years ago, reasdy to explode over the next several years with many retailers from myriad industries all vying for the customer’s dollar. mCommerce will grow dramatically in the near future supporting simple to complex commerce transactions.

An Emerging Market

mCommerce is one of the most exciting ways that vendors can drive revenues and improve profit margins. It will dramatically enhance the customer experience both inside and outside the store. mCommerce applications can provide important assistance in acquiring and retaining customers while reducing the cost to service providers.

mCommerce can help consumers with quicker information access, increased productivity, and more timely responses to inquiries. It will give retailers the ability to service, sell and deliver to consumers anywhere, at anytime. mCommerce will help reduce operating cost and the risks associated with online Marketing. Mobile commerce has grown rapidly in Europe and Asia and it is only time before it dramatically takes off in the United States. One of the main factors contributing to the success mCommerce has experienced in Europe and Asia is directly related to the costs of mCommerce technology compared to the costs of substitute venues.

Mobile Phones

The Mobile phone is a great tool for merchants to diversify sales channels, expand the reach of their business, improve communications, and maximize profits. ShopRMall.com, a shopping portal that offers direct links, coupons, and special offers for online stores, has launched iphone.shoprmall.com, an iPhone/iPod Touch version of the ShopRMall site. The new site includes daily coupons and special offers along with easy access to over 1,000 name brand and specialty stores, all from a familiar iPhone interface.

Nearly all mobile phones, in Japan, have built-in bar-code readers, making it easy for users to scan a bar code from a magazine ad, which launches the phone’s Web browser and delivers the advertiser’s mCommerce storefront.

In the United States, only a small portion of mobile users are using their device for financial services but that number is expected to grow rapidly. mCommerce, is something that companies should not ignore. mCommerce will help them to reduce internal costs, improve relationships with customers, and build brand loyalty. One market leading financial services firm has stated that “early adopters have balances 10 times higher and trading volumes five time higher than average customers”.

Conclusion

mCommerce is here, and it’s only a matter of time before it becomes as familiar as a credit card transaction. It is certainly ready for the online merchant. mCommerce is an emerging market that offers huge opportunities for extending remote purchasing. Retailers should prepare for mCommerce by understanding how it works. This will ensure that their business stays ahead of their competition.

Whether you are a consumer or a business owner, most of us will use a merchant account service. When you make an Internet purchase with a debit, credit, or gift card most stores require a merchant account to process your electronic payment. The merchant account allows buyers and sellers to use and accept non-cash payments for goods and services.

An Internet business can not take cash payments, but they can take checks. However, they will be losing a lot of potential customers by accepting only check payments. It is also safer for the consumer to use a credit card when purchasing on the Internet.

For new businesses, I highly recommend Google Checkout for your merchant account services. Google Checkout is a checkout process that you provide on your web site to enable your customers to buy from you quickly and securely, using a single user name and password. For a small business, Google Checkout is particularly advantageous, because it helps legitimize your brand.

With Google Checkout, there are no monthly, setup, or gateway service fees. When a purchase is made they charge the merchant 2% + $0.20 per transaction. However, If you advertise with Google AdWords, you will also be eligible for free transaction processing for some or all of your Google Checkout sales each month. For every $1 you spend on AdWords each month, you can process $10 in sales the following month for free through Google Checkout.

If you aren’t an AdWords advertiser, learn more about AdWords and sign up to earn free transaction processing with Google Checkout. The more you spend to promote your business through AdWords, the more you save on transaction processing fees with Google Checkout.

A merchant account service is critical for a successful business. It is a low risk way to make and accept payments electronically. If you are trying to establish your own business, you should make it a priority to have a merchant account . This will give you the proper payment processing options for the convenience of you and your customers.

Do you want to succeed in business? Life? Parenthood? Marriage? Friendships?

Obviously, all of us would quickly say YES! Such a dumb question for someone to ask us! I didn’t ask the question to make any of us look dumb, but to get our thoughts on the right track.

Certainly, we want success in all areas of life. My suggestion is that you select outstanding advisors to help you when faced with tough decisions in every area you face, particularly where you are about to make big decisions without knowledge or experience.

We are primarily concerned about business decisions in these discussions; however, some of us go into business the same way we go into marriage…no experience…no training…no education…poor role models …and then we are expected to bring happiness to another person to whom we are now married.

Usually, we try to do this by changing the other person into what we think they should be, while they are trying to do the same to us. It does not work! Most of us will never change! We don’t want to change for one thing and if we did, it would already be done.

ADVISORS are extremely important. You must have them to be successful. There are 4 important Persons you need to select BEFORE you begin your business:

LAWYER ACCOUNTANT BANKER INSURER