Finding Incorporation Help

by: Sandy Baker

Incorporation help is at your top priority. There are a number of things that you can do to find the information about this situation. You could take the time to hire an attorney, pay the fees for him and the incorporation itself and then wait around until he takes care of it. Or, you can find the companies on the web that can help you handle it yourself. There are many opportunities for you to get the incorporation help that you need. Before you head off to find an expensive attorney to handle the matter though, make sure to take a few minutes to look for the information that you need right here on the web first.

You will find a wealth of information available to you. For example, you will find out what incorporation is and how incorporation help can be provided online. You will be able to have a clear understanding of what you should be doing about your business. Is this for you? What advantages and disadvantages are there for you should you take on incorporation? Answering some of your fundamental questions is one way that the web can provide you with the incorporation help that you need.

Incorporation is the making of a company. It gives a company the right to be its own self, so to speak. Instead of your name being on the bottom line, the company’s name is now there. It allows the company to represent itself. The company can also get its own credit. And, when the company gets sued, as many do, you will find that your personal assets are not nearly as affected as if they would be if you did not get the incorporation help that you are looking for. So, take some time to find the answers to your questions and you will have a solid understanding about whether or not this is the right move for your company. There are some excellent resources on the web that will provide you with the incorporation help you are after!

Making online networking work for your business

by: Amber McNaught

As modern life gets busier and work/life balance becomes more of an issue for everyone, the Internet has really come into its own. We shop online, we chat online – and, if you’re a business owner, there's even the opportunity to network online.

In terms of flexibility, online networking has traditional networking well and truly beat. No longer are business owners forced to take time out from their businesses to fend of the advances of a dozen, business-card-wielding serial networkers at some military-style event. Now we can just log on to one of the many discussion forums dedicated to entrepreneur ship and be winning friends and influencing people in the click of a mouse.

In this respect, online networking is truly good news. With the freedom offered by the Internet, however, comes a whole new set of rules, the flouting of which can end up doing your business more harm than good. Here are just a few of them:

1. Don't be too blatant

Online networking is far subtler than its offline counterpart. It's just not the done thing to blaze into a business forum trailing promises of instant riches and dropping your URL like a scud missile. The trick is to try and integrate yourself into the community, offering advice where it's required and joining in the discussion. By positioning yourself as an expert in your field you'll gain more business in the long-term than blatant self promotion. And speaking of blatant self-promotion…

2. Don't spam

In terms of Internet discussion boards, spamming is defined as posting the same message on more than one board. Just as annoying as the type of spam which clutters your email inbox every day, this type of behaviour is more likely to loose you business than gain it. Resit!

3. You only get back what you give

There are some business owners who shudder at the very thought of giving their advice or help for free. These are the business owners who aren't making much of a success of online networking. The rule is simple: what you get out of it is roughly proportional to what you put in. Show yourself willing to offer your expertise to those who need it, and you'll be repaid in terms of referrals and more business from the people who see your posts.

4. Don’t say anything you wouldn't be happy to say in front of your clients

Online networking differs from "normal" discussion board use in that it's rarely anonymous. If you want to make the most of the experience, you'll need to tell people who you are, and use your URL in your signature. What that means, though, is that anything you say on the discussion board can be traced back to you – and could be seen by your clients. Stick to the rule of never saying on a discussion board what you wouldn't say in the boardroom and this shouldn't be a problem.

5. Don't be rude

This one should really go without saying, but an unfortunate side-effect of Internet discussion boards is that they often make people feel braver than they really are. Protected by the relative anonymity of a screen name, some people will take the opportunity to show their true colours – even when those colours are less than flattering. Remember rule number 4, though: on this kind of forum, you're never anonymous. If your business is identified, then you are too. More importantly, your behaviour will be seen as a reflection on your business. When you come across people whose opinions and pronouncements anger you, then, take a deep breath and step away from the keyboard before you end up saying something you'll regret.

6. Use your signature

Although blatant promotion is a big no-no in the world of online business networking, you still need to promote your business somehow. The place to do that is in your signature file, with a subtle but informative description of your business, and link to your website.

Communication Smoothes the Path of Change

by: Helen Wilkie

Productivity almost always suffers in times of great change, because employee stress dramatically increases due to the universal fear of the unknown. In these times, communication becomes more important than ever.

Often senior executives genuinely believe they are communicating with employees when it comes to matters that affect them. Unfortunately, they often underestimate the number of matters that includes, for the fact is that most high level decisions will affect employees in one way or
another. (That's why a new law recently went into effect in Britain forcing employers to answer employees' questions on any changes or decisions that affect them.)

So how do you know what is important to employees and what to tell them? Well, you need to put yourself in the position, the mind, the heart of employeesÑone employee at a time. If you were that person, what would you be worried about right now in the current situation? What would be important for you to know? What is the worst thing that could happen, and would you want to know about it in advance? How would you want to be told?

Of course, you can't answer those questions yourself. You need input from the very people you are trying to understand. Depending on how much you can discuss or how much is already known, you might ask a few individuals what the grapevine is saying, and what people are worrying and wondering about.

Now, armed with this information, draft the answers to the questions. Of course they must be truthful answers, for insincerity is easily recognized and will deal a death blow to your communication efforts. Then they must be couched in terms that are clear and uncompromising, but also considerate and compassionate. It's worth spending some time on this partÑlack of commitment to your message is also easily read and will automatically raise the cynicism level among employees.

Next comes dissemination of the information. There is, as we all know, no shortage of communication technology in the business world. However, the way a person receives news can dramatically affect how he or she feels about it, so you need to choose the medium very carefully. E-mail can be perceived as cold and unfeeling in many cases, although it is useful for routine updates that don't have emotional overtones. Some messages are better spoken, either by managers to their groups or by the CEO to the whole organization.

If the messengers don't have highly developed communication skills, it's worth engaging the services of professional speech writers or presentation coaches to help them, but be sure the message remains honest, clear and compassionate.

And above all, follow through on your commitments and promises. Nothing turns employees off more than empty words, but sincere, caring, ongoing communication can form the basis for building employee engagement when the present time of turmoil ends.

7 Keys to Internet Business Success

by: Bina Omar

Starting an internet business can be as simple as opening a Yahoo Store. And as complicated as building your own dynamic e-commerce web site. But no matter how you go about it, you need 7 key ingredients to ensure the success of your internet business.

1. Demand

You can have the most awesome product and the most hi-tech web site, but if you can’t generate demand for your product, your business is doomed from the start. There are many ways to generate demand in the online world. You could advertise in ezines, start an affiliate program, encourage word of mouth, referrals, do joint ventures. Remember, without demand, there will be no sales. And without sales, where does that leave you?

2. Order

When you start getting visitors to your web site, it’s now just a matter of turning them into your customers. Okay, maybe it’s not as easy as it sounds. This is why, once your visitor has decided to become a customer, you have to make sure that it is easy for them to do so. Make sure that your ordering process is easy and straightforward. The less clicks to secure an order, the better.

3. Payment

This is one process of your internet business that you’d definitely not want to get wrong - how money is actually transferred from your customer to you. The most popular means of doing this online is through credit card transactions. Credit cards makes full use of a person’s ‘purchase now think later’ attitude. So, your sales would be a lot higher if you accepted credit cards than if you didn’t. This doesn’t mean you shouldn’t have alternative methods. The more payment methods you offer, the easier your customer will find it to pay for your product.

4. Fulfillment

After payment has been made, don’t make the mistake of thinking that the coast is clear. There’s still the matter of delivering your products. If you sell digital products, it is now normal standard to have it delivered instantly. People now expect this, so make sure you set this up. If you sell physical products that needs physical delivery, make sure that you communicate with your customer every step of the way. Ensure them that their goods are on the way. If possible, send them a means to track the movement of their package. Your customers should never feel insecure.

5. Service and Support

Once the sale has been made, it doesn’t stop there. You have to provide excellent customer support. Your internet business customer support will determine, to some extent, whether your customer will request a refund and whether or not they will make repeat purchases. Support abilities of an internet business is getting more and more efficient. So don’t get caught behind. The least you should do is provide timely e-mail support. If you have a busier site, then consider other support methods - online helpdesk, FAQs, live chats, ticket system, knowledge base ….

6. Security

The Internet community is getting more aware of what to look out for in order to protect themselves from many of the net’s less desirable activities. One of which is e-commerce frauds. It is, therefore, up to you to prove to your visitors that they can trust you. Things like using secured server to process payments, can go a long way. Purchase a digital certificate, if you can. Add a physical mail address or a phone number where they can contact you. Anything at all, to give your visitors some peace of mind.

7. Community

Once you’ve received more than just a handful of sales, you should think about starting a community. Making your customers a part of a community, gives them a sense of belonging. Have your community be a part of your product development. Listen to their suggestions. Not only will you get product ideas for your internet business, your sales ratio will increase with every new product release and you will have a loyal customer base.

There you go. Work on these seven keys and you’ll be way ahead of most internet businesses out there on the net today.

Who Cares What YOU Think?

by: Alice Seba

"I hate pop-ups!"
"Audio that starts on a website without warning is annoying."
"What's with these 15-20 page sales letters that just go on and on? I would never purchase anything from a site like that."
"I hate those websites that make me give their email address before giving me any information. When I see those, I click away immediately."
And the list of complaints goes on.
If we hate these things, plus our website visitors and marketing peers tell us they hate these things, we should stop using them, right?
Hold it right there. Basing your marketing decision completely on opinions and preferences is one of the biggest mistakes you can make. It doesn't matter if it's your opinion or if 10 people emailed you to tell you that your website annoys them. NEVER make a judgment based on an opinion. What we think and prefer has nothing to do with the RESULTS of our marketing.
Now, don't get me wrong. I'm not saying to ignore your gut feelings or disregard your potential customers. I'm saying - test it out.
We know everyone hates pop-ups, but the fact is they work when used effectively.
Audio that starts when you visit a website can be highly irritating, but many website owners report increased conversions when they do just that.
Long sales letters can be very effective when selling an individual product...just ask world-class copywriter Michel Fortin who has helped people sell millions online.
I also know someone who runs a 7-figure yearly business and has switched all his websites to the name-squeeze (you know, those idiotic pages that ask for your name and email before giving you any info?)...and he makes more money now.
Does this mean you must blindly use these "irritating techniques"? Nah...your business is unique and you need to base your decisions on cold hard facts (i.e. your testing data) so you can make more cold hard cash.

1 Business Building Tool in Network Marketing

by: Jerry Olthoff

Ever wonder why one person succeeds and another fails in MLM? Or why someone has massive success in a company, then leaves, goes someplace else, and never, ever again duplicates that success? Or why some people spend 5, 10, even 20 years in network marketing with NO success...

Yet they never quit!

Or how an industry that does so many things so wrong can still be so popular ...

This Tool Can Change Your Life

On December 12, 2004, our team released the ebook "Success In 10 Steps", the story of what we have learned from 26 years in MLM.

The feedback has been astonishing.

People say, "I could have written that book!

That was my story.

Why did you steal my story? How could you know exactly what I went through?"

Back in 1991, my mentor was making full-time income from MLM.

He retired from that company and actually joined over 100 network marketing companies in the next few years, to figure out how this industry really works: the good, the bad, the ugly.

Here's what he did:
1. Got on dozens of company conference calls
2. Organized & categorized companies, products, compensation plans, distributor kits, & marketing materials to compare each company with all the others
3. Studied their business models, to understand what kind of behavior certain business models drove
4. Studied how different "upline gurus" trained (or did not train) their people

This process answered all the mysteries. It also revealed some valuable, valuable secrets about network marketing.

Example #1:

The hard-driving, closing salesperson is about 8% of the population. And those 8% have convinced the other 92% that the 8% are right and the 92% are wrong.

How did they do that?

Because that is what THEY do. It works for them, so they have total confidence they are right, and when you feel their confidence, you KNOW they must be right, so you do what they tell you.

92% of the world's population is sales-resistant.

They do not like to be sold, and they do not want to become that pushy, aggressive salesperson nobody likes. Yet when they join MLM, some upline leader tells them,

"Make a list of your friends and family. Call them up. Get 'em into the business. You need to hear 100 'No's for every 'Yes'.

Guess what?

It still only works for the 8%.

If you let them mesmerize you, you can wander aimlessly in the "failure" desert for years...

Maybe forever.

The Choice Is Yours

You can't become something you hate in order to be successful. This model works for the 8% who are real salespeople.

It's a disaster for the rest of us...

A very bad business model.

Example #2:

Every person on the planet has to be educated in the skills of what they're doing.

Whether you're a doctor, carpenter, plumber, ditch digger ... whatever you are... You've got to be taught the skills of that business.

And what "Success In 10 Steps" does for people is, it gets them to realize,

It's not your fault! The people teaching you didn't know any better.

They weren't bad people. They weren't lying to you intentionally. They just didn't know any other way to do the business.

Do you think you can wake up one morning and say, "I'm going to be a doctor!"

And you go down and join a company, get a distributor kit for 50 bucks, and you're a doctor?

Of course not. That's ludicrous.

How about a carpenter?

No way. You have to learn pitches and square and level and plumb.

You have to be taught the skills. Yet people get in network marketing, and they're told,

"Call your friends & family." It's the biggest fallacy in the industry.

Network marketing is not a sales business.

It's a teaching & mentoring business.

When you build people, people will build your business. Those upline guru leaders will tell you,

"Well, you didn't make enough phone calls. You're a loser. If it's to be, it's up to me." Have you heard all that stuff?

I bet you believed it, too, haven't you?

Why This Ebook Is Such a Hot Tool For Building Your Business

So the ebook really opens people's eyes to the fact that they've been lied to. You must do your business with people who WANT to be in business with you. You have to sell product to people who LOVE the product and want to purchase it. That only comes through target marketing.

We learned early-on about targeted marketing.

Only talk to people who have raised their hand and want what you have.

Well, guess what? EVERY person who downloads "Success In 10 Steps" is trying to figure out why MLM is not working for them. When you call them up, they could be in a company already. They could be working the business a year or 2 or 5, 7, 10 years. But why would they download that ebook?

They're divulging some critical information. The business is not working for them.

They want to figure out what the problem is. And they're looking to you for help. THAT is the basis of a long-term relationship, and THAT is the effect you can create with "Success In 10 Steps."

See for yourself. Download your copy now.

The Top 5 Setting-Up Mistakes.

by: Eric White

When you're starting a home business, it's all too easy to make mistakes -- after all, you've never done this before. Fortunately for you, though, you can learn from others' errors, by making sure you don't do any of these things.

Thinking Skills You Don't Have Aren't Important.

So you have no idea how to keep records and accounts, or you don't know how to maintain a mailing list. You need to learn these things! Too many home business owners just do the things that they know how to do, and assume that they can probably get by without everything else.

You need to realise that when you're running a home business, you're going to need to do as much as you can for yourself, especially when you're starting out. This means that you can't get by if your business skills are lacking. I always say that everyon'e who is thinking of starting a business should take an inexpensive and quick local business course, and I stand by it -- even if you think you'll be fine, it can't hurt, can it?

Not Managing Your Time.

When you're used to working nine to five, an easy trap to fall into is not managing your time effectively. Your home is full of distractions, and there won't be anyone there to tell you to get on with it. If you're prone to daydreaming or procrastinating then this can be disastrous -- whole days can go by with only tiny amounts of work getting done.

You need to be sure that you have a schedule, and you stick to it. Draw a clear line between work and non-work time, and don't cross the line in either direction. Apart from that, the word to remember is 'prioritise': appreciate that you won't always be able to do everything, but make sure you get at least the important things done.

Making Clients Think You're a Joke.

There are many home businesses where clients might need to visit your home -- but make sure it's fit for visiting! You can't lead them into a messy office, or be holding your dog back from barking at them when you first meet. Remember that professionalism is important, and it's too easy to end up looking silly if you don't plan how you're going to make a good impression when you invite people to your home.

If you can't afford a 'business annex' to your house, then consider hiring someone to look after your dog or children for a few hours while you have a business meeting there. It might also be worth paying a cleaner to give the place a quick once-over, if you haven't had time to clean up for a while.

Not Specialising.

Too many home businesses, when asked who their target market is, say 'well everyon'e, silly'. Your target market is never everyon'e -- if it is, you will fail. You can't just choose an industry and advertise your new-found profession to everyon'e, in the hope that someone will work out that the fact you're an electrician means maybe they should ask you about re-wiring their house.

The key to success is this: think about what you can do, and then market that to people who will want it. Advertise in places where these people are. If your business has no target market, then you have no business, period.

Making Start-Up Costs Too High.

Finally, too many people overestimate how much money it's going to take to start a home business. Do you really all brand-new equipment? If you're spending thousands of dollars before you've made any sales at all, you're setting yourself up for a disappointment.

Start your business on a shoestring, work hard, and expand gradually -- otherwise you're setting yourself up for a big fall. However much you might think you ought to do things 'properly', you need to make sure that you're minimising costs and maximising profit every step of the way, otherwise you're failing yourself as a home business owner. It's when you start to get some bigger clients and better cashflow that you can start paying a little extra to make your business life more comfortable.

How to offer 30 day terms the right way.

by: Marco Terry

What is trade credit?

One of the major differences between consumer and commercial transactions is that most, if not all, consumer transactions are paid in cash or by credit card at the time of sale. Because of this, most consumer businesses never have to worry about extending credit to a customer and can run their operations on an "all cash" basis. This allows them to focus on their core competencies because they don't have to carry slow paying Accounts Receivables and go through the expense of collecting on such accounts.

However, commercial transactions are different. Most clients ask their suppliers to deliver services immediately and then to invoice them for the work, payable 30 days later (also known as offering net-30). In effect, clients ask their suppliers provide them with "trade credit" for 30 days. Although suppliers don't like offering trade credit, most have accepted it as an industry standard and have learned how to operate and live with it. In fact, some suppliers have even mastered how to offer trade credit and use it to better position their companies with leading clients. Large creditworthy customers, such as the government or large companies, will usually demand trade credit as part of their contract negotiations. Some examples of entities that ask for 30 to 60 day payment terms are:

o Fortune 500 companies
o Large and medium sized companies
o State government agencies
o Federal government agencies

On the positive side, providing trade credit to the proper clients can be a tool that allows your company to win important contracts and position it for growth. However, providing credit is also risky and can erode the company's cash position if it is misused. Furthermore, offering trade credit to less-than-creditworthy clients can burden the company with bad debt and affect its growth prospects. Because of this, business owners must walk a fine line balancing their desires to grow their businesses with the necessities of offering credit to their customers.

Keys to providing trade credit successfully
The best way to minimize the risk of providing trade credit to a client is to perform a credit analysis on him. Although no credit analysis is 100% perfect, they allow business owners to make an informed decision on whom to issue credit to. Here are the three key points to making a credit analysis.

o Have the customer fill out a credit application

Have all your customers that want credit fill out a simple credit application. This will allow you to have all relevant facts in a single document. The application should ask for the following information:
1. Company structure
2. Banking relationships
3. Commercial references
4. Supplier references

o Check bank and supplier references

In their credit applications most clients will only list banking and commercial relationships that will position them in a favorable light - however - it is always a good idea to check on all of them anyway. Banks will only be able to confirm that the client has an account with them. Supplier references, however, may provide critical information regarding the clients' payment habits.

o Check commercial credit reports

There are a number of companies that sell commercial credit reports on businesses. As opposed to consumer credit reports that require special permissions, commercial credit reports can be obtained for any business without asking for prior permission. Reports vary in their level of detail and accuracy and can be obtained for as little as a few dollars. However, all reports will include important information to help your credit department make a decision. More detailed reports will cost a few hundred dollars. You can obtain credit reports from the following companies:
a) Dun & Bradstreet (www.dnb.com)
b) Experian (www.experian.com)
c) Credit.net (www.credit.net)

Doing a credit analysis on your clients will allow you to determine how much - if any - trade credit you can give them. Clients that do not have a favorable credit analysis should be placed on a COD (Cash On Delivery) basis, at least initially, to reduce the risk of non-payments.

The challenges of offering trade credit
One of the main drawbacks of providing trade credit is that it can create a cash flow problem for the company that offers it. Large suppliers with adequate cash cushions in the bank can easily afford to offer credit. However, small suppliers with lean bank accounts usually find that offering credit will drain their cash resources and create financial challenges. It is not uncommon for small businesses to find themselves with a cash flow gap after offering trade credit to their larger clients. This gap is created by the fact that the company's Accounts Receivable account is strong while the company's bank accounts and cash position are weak. The cash flow gap places the business at risk of missing payroll and debt payments. It also prevents it from pursuing new opportunities because they don't have the funds to purchase resources or hire the necessary staff.

Bridging the "cash flow" gap

The biggest asset that most new businesses have, aside from their equipment and intangibles (e.g. employees), is their unpaid invoices or Accounts Receivable. Accounts Receivable is an asset that can be quickly converted into cash by using a financial tool called factoring. Factoring allows a business to sell the financial rights to their Accounts Receivable to a third party, called a Factor. As part of the sale, the factor immediately advances a large portion of the cash value of the unpaid invoices to the business. The business can then use this cash infusion to strengthen its cash position and meet its obligations. In the meantime, the factor, which now owns the invoices, waits to get paid by the customer. Factoring enables business owners to outsource their trade credit function to the factor and to turn their companies into the equivalent of an "all cash" business. If you want to learn more about factoring and how it can be used to grow your business, please read our white paper titled "Factoring: Cash on Demand for your business without debt or loans"

About the author:
About Commercial Capital, LLC and Marco Terry

Factoring Financing: How to grow your business without debt or loans

by: Marco Terry

What is factoring?

Accounts receivable financing, also known as factoring, is a powerful financial tool that has fueled the growth and success of a number of companies.

Factoring enables companies to capitalize on their unpaid receivables by selling them to a factoring company for immediate payment. With factoring, companies

immediately get paid for their invoiced work from the factoring finance company, while the factoring company waits to be paid by the customers. Factoring

strengthens a business' cash position by shortening the time to get invoices paid to 48 hours and providing the needed funds to meet current expenses and

target new opportunities.

Factoring Benefits

As opposed to loans and lines of credit that require that the client have tangible assets and strong financials, factoring relies more heavily on the

financial strength of the clients' customer. This is a critical feature,since many new and small businesses do not meet the financial criteria of traditional

lending institutions. However, many small businesses have a roster of financially strong customers that can be leveraged. Factoring empowers businesses to

capitalize on their customer list, and provides them with a tool to transform outstanding receivables into immediate cash, without generating debt. Since

Factoring is not a loan, it is an ideal financial product for the following:

o New and emerging businesses including small and home businesses, consultants and solo-preneurs.
o Businesses with financially strong customers
o Businesses that are preparing to grow significantly
o Business with intangible assets (e.g. consultants)
o Businesses that do not want to take a loan

An additional benefit of factoring is that the factor usually assumes part of the clients' credit risk for the customer. This means that if the customer

becomes financially insolvent due to bankruptcy and does not pay the invoice, the factor will assume the loss. This is a critical service for small companies

who may not be able to afford the bankruptcy of a customer.

Costs

The costs of a factoring transaction - also known as the discount - vary based on a number of variables such as the financial strength of the customer and

the amount being factored. Generally, the discount is a percentage of the invoice's face value that increases with time until the invoice gets paid. Small

businesses, those that have between $20,000 and $300,000 in yearly revenues, can expect to pay a discount rate of about 2% for every ten (10) days that the

invoice remains unpaid. Businesses with factorable revenues in excess of $300,000 can expect lower discount rates.

Factoring at Work: Business Services and Products, Inc. Case Study

Business Services and Products, Inc. (BSP, Inc.) is a small fictional company, which provides business consulting and equipment to local companies. It has

$300,000 of annual revenues and during the past year BSP Inc. has enjoyed significant sales growth. Although most business owners would be very happy to

manage such a company, Jane Sullivan, BSP Inc's president, is very worried about her company's financial position.

Most of BSP Inc.'s customers are large companies with a good reputation for always paying their invoices. However they always take between 30 to 45 days to

pay them. BSP Inc., however, needs to pay their employees every two weeks and their vendors every four weeks. This discrepancy between the time that

customers pay their bills and the time BSP Inc. needs to pay their employees and vendors has created cash flow problems in the past. Furthermore, these cash

flow problems have already caused Jane to delay payroll twice this year and have placed her trade (vendor) credit in jeopardy multiple times. This has also

caused her to pass on a number of significant business opportunities because she was unsure of the company's financial ability to hire and pay for additional

staffers. Unfortunately, BSP Inc. did not have a large enough financial cushion in the bank to afford paying employees while waiting for 45 days new clients

to pay their invoices.

The following table provides an overview of BSP, Inc's current financial position.

Business Services and Products, Inc (without financing)

Yearly sales: $300,000
Lost new sales opportunities: Unknown
Total Sales: $300,000

Variable Costs (60% of Sales): $180,000
Fixed Costs (Rent, phones, etc): $20,000
Total Costs: $200,000

Profit (Sales - Costs): $100,000

Although the company's prospects appear great, Jane may have to stall her company's growth until she builds a large enough cash cushion at the bank to

finance her company's growth. After careful consideration, Jane decided that a factoring line of working capital could help strengthen her company's

financial position. Furthermore, factoring her invoices would enable BSP Inc. to take on new customers and continue growing, knowing that she could

capitalize on her slow paying customers. BSP Inc.'s financing agreement will provide the company with an advance of 70% of her invoiced services. This means

that the company can get 70% of the face value of the factored invoices within 24 to 48 hours of submitting them to the factor. The remaining 30% of the

funds, less the factoring fees, will be quickly rebated as soon as the customer pays their invoice.This line of working capital strengthened the company's

financial position and bank account, enabling Jane to pay for new employees to service new contracts. Jane also decided to use the extra capital to pay her

vendors early, obtaining quick payment discounts and helping to reduce the cost of factoring.

BSP Inc. customers pay their invoices within 30 days of receipt. The discount (factoring fee) for these invoices is 6%. Every time an invoice is paid, the

factor rebates BSP Inc. the remaining 30% that was not advanced less the factoring fee. This means that once the transaction is completed, the factor rebates

24% (30% - 6%) to BSP Inc. Thanks to the factoring line of working capital, Jane was also to secure an additional $120,000 worth of business, bringing her

annual revenues to $420,000.

The following table shows BSP Inc.'s financial position a year after using factoring.

Business Services and Products (with factoring)

Existing Sales: $300,000
New Sales: $120,000 (factored)
Total Sales: $420,000

Variable Costs (60% of Sales): $252,000
Fixed Costs (Rent, phones, etc.): $20,000
Cost of Factoring (6% of $120,000): $7,200
Total Costs: $279,200

Net Profit (Sales - Costs): $140,800

As can be seen from the above table, factoring helped BSP Inc. increase profits substantially from $100,000 to $140,800 - a 40% increase. It placed BSP Inc.

on a more stable financial footing, priming it for growth. Furthermore, the cost impact of factoring on the bottom line was minimal, as it was easily

absorbed by the additional business, showing that factoring was paid for directly by the growth.

Great Payoffs from Workflow Software

by: John Morris

When it comes to the terms, “Streamline Operations” or “Reduce Operating Expenses” and “Cut Labor Costs”, do you really have any idea what these terms actually mean? How much money does the company actually want to save? And how does workflow software help the company to achieve this seemingly insurmountable goal?

When it comes to workflow software, every company definitely has their own sets of procedures as well as methods that they implements when it comes to handling all sorts of day-to-day operations in and out of their companies such as the following: invoicing, time sheets, status reports, new account setup and you might as well include everything else that will be able to make your business tick. The term workflow in workflow software actually refers to the tasks, personnel, procedural steps, required information as well as the various tools that are needed for the steps that that the business has to take in order for it to become successful.

Every company has a unique and different process as compared with other companies in the business, this is why a lot of growing companies usually end up with a highly unorganized business process when it comes to email templates, spreadsheets, shared documents, paper forms and even trivial knowledge which the employees should know in order to be able to handle the day-to-day business.

Majority of the time under such chaos and disorganization often leads to various frustrations and problems for the small company, such every day hassles include: missing paper work, missed deadlines, lost as well as incorrect information as well as extending heavily on working hours in order to complete a certain task. This is what usually happens to unorganized offices and is often referred to as “red tape.” The bottom line is that when red tape starts getting on your customers nerves, it would soon be a downward spiral for your company as well.

So to your company’s rescue comes workflow software automation. But what exactly is workflow software? And how can it will be able to help you out in this company crisis? Workflow software is actually still relatively new to the corporate setting wherein it is a combination of a to-do list as well as project management tool, only set on a different scale.

When it comes to workflow software just think of having a simple to-do list at your hands wherein through the workflow software, that to-do list can now also be accessible by other employees from your company through the company network. This simple to-do list can actually, on its own, keep track of all the items that need to be addressed by everyone in the company. Also, through the workflow software, once certain tasks are completed by the assigned company employees, the workflow software will actually automatically send off other to-do tasks to the appropriate company employees.

The workflow software is actually smart enough to also pass whichever documents or data that is needed to be able to perform whichever tasks that it sends out to the employees. And lastly, if the workflow software’s features are not exciting enough then there are other great features that this automation software has in store for its users. The workflow software can also do some visual status tracking of the tasks at hand, due data monitoring (which ensures every member of your team that a deadline has been set and has to be especially met by the employees, business rules). The workflow software will always make sure that the employees continuously adhere to the company’s rules and regulations, e-mail and database capabilities.

It is incredibly important for a company to have a well sorted out database in order to prevent people from panicking once a certain file has mysteriously disappeared most especially during the time that their boss needs it. All these are jam-packed in the workflow software automation wherein it will certainly be able to help you and your company, and most especially the employees to have a simplified working environment which is highly geared towards being able to produce the best results at any given time. The workflow software will actually enable employees to be able do their job well since they would not be scrambling for lost files anymore as well as all sorts of other hassles that may erupt when you are in a highly disorganized company. It is also equally important that the employees are highly skilled but their skills will not be a match to the cluttered chaos that will be caused by disorganization.

Work Your Home Based Business Idea in Three Easy Steps

by: Jan Heering

Create a Business Plan first
The primary necessity is to get a perfectly designed plan of action for a genuine business. A business plan on its own is useless. It is a mere reflection, but it will not suffice you also need an action plan. A business scheme is the first step in working out your idea into actions that you can follow. Well-illustrated business plans can be found online or at your library.

Begin now

• Do not be afraid of failure. Remember failure is the first stepping stone to success, if this home based business idea does not work out for you now do not let this deter you. Always remind yourself of the spider when you feel like losing hope.
• Do not let that wonderful home-based business idea gather dust. Start today.
• Waiting for the right time to start your business might make success elude you forever. If there is any specific right time, it is right now. Do not waste your precious time.
•
Put a figure on it
This is the greatest stumbling block for most home-based business owners. That is, they fail to evaluate their work. If you do not give proper attention to this, you may have to wrap up your business. You need to know that real figures and numbers are needed for you to stay in business. If this is not your agenda of work, you are probably going all wrong.

Large businesses usually set up balanced scorecards. The idea is to have a referring point to compare how successful your work is. For example, to get five customers in one month you could settle on free seminars but if you see that your plan is not getting you five clients, you need to reassess your plan. Change of plan prevents waste of energy and resources.
Entire contents copyright © 2005 Morpheus Institute.

You Never Have a Second Chance to Make a First Impression: Position Your Company Wisely

by: Kelly ONeil

Copyright 2005 UpLevel Strategies

One of the most profound statements made on the subject of positioning comes from Louis Carroll's, Alice In Wonderland. When Alice asks the Cheshire Cat which path to take, he responds, "If you don't care where you're going, it doesn't make a difference which path you take."

Your positioning statement is the foundation on which all communications activities are based upon. It is the most important marketing practice, and often the most overlooked. Without clearly defined messages and positioning, promotion efforts are fruitless.

From a management perspective, positioning is the cornerstone of an effective communications plan. A well-crafted positioning statement defines your company's direction. A positioning statement expresses how you wish to be perceived. It is the core message you want to deliver in every medium. The purpose of this is creating clarity, consistency, and continuity in the way your organization speaks to the market. This makes all forms of communications less complex and easier to manage.

Once established your company should actively apply its new positioning statement to all communications (internal and external) - from marketing collateral to sales material, Web sites to press releases. This means that if communications do not support the sought-after positioning or do not include, reflect, address or amplify the positioning statement and key messages, they are off strategy. This positioning process should be repeated as market conditions require, semi-annually is customary.

An effective positioning statement answers seven essential questions:
• who you are
• what business you're in
• for whom (what people do you serve)
• what's needed by the market you serve
• against whom do you compete
• what's different about your business
• what unique benefit is derived from your product or services

Think of positioning as the perception your target audience has of your product. You have total control over this element of your marketing efforts, and it is critical to how you develop the rest of your plan. Planning your service’s positioning must involve taking into consideration such issues as the competition and how their services and products are perceived, the needs and desires of your target audience, and the element of mystique or drama that your product or service naturally has about it.

In crowded markets, it is very important to position your company and products appropriately. Think about the 3000 messages your audience is bombarded with every day! In order to stand out, your product has to have a clear position in your audience's mind.

Time Management For Your Home Business: 7 Ways To Win The Time Crunch

by: Ken Leonard Jr

Are you working a day job while building your home based dream business? Do you find it difficult to manage your time? Follow these seven tips to get more done growing your business, and have more time for other important things in your life, too.

1) Make And Use A To Do List Daily.

It's easy. Tonight, write down the tasks you need to do, in order of importance (revenue generating tasks first), on a 5x7 index card and tape it to your desk or computer. Tomorrow, do them one at a time, starting at the top of your list. Place any tasks that aren't completed at the top of the next day's to do list before you go to sleep. Seeing that list at the end of the day with everything (or mostly everything) scratched off is a great feeling.

2) Schedule Your Time For The Day.

Make note of your free time (non day job time) and schedule a block for each major activity that you need to do. Save the more involved tasks for the time of day when you are fresh and alert. Try your best to adhere to the schedule, but be flexible. Don't stress out when you run out of time and get off schedule. Over time you will know how much time a task will take to complete and will be able to plan for it better. Remember, this schedule is only a tool for you to set aside time for what you need to do. It's not intended to have a negative affect on you, but it could if you don't be realistic.

3) Do Not Disturb.

Make sure that your most productive periods are free from interruptions. Close your office door if you have to. Plan to use this work time when household distractions will be at a minimum. When the kids go to their grandparent's house. When your husband shoots pool with the guys. When your wife goes shopping. If you have to hang a sign on your office door, do it. You'll be surprised how much more you get done.

4) Make Time For Your Family.

Quality time with your family should not be sacrificed in order to build your home business. If you make time regularly for your spouse and children, they will be able to deal with your No Disturb sign without feeling neglected. Don't be the parent that the kids never see.

5) Take Your Work With You.

If your day job leaves you with slow periods when you do little or nothing, use this time to your advantage. Lunch breaks or smoke breaks can add up to some valuable time by the end of the week. Always carry the tools that you need to do your work with you. Don't go anywhere without your "idea notebook" and pen. Be prepared.

6) Automate Or Hire Out Tasks.

Computers and the internet allow you to automate certain tasks that were once time-consuming manual chores. Use autoresponders to deal with repetitive email questions. Use modern accounting and word processing programs that help you be organized and save you time. Use a list management service/program to make it easier to stay in contact with your prospects and clients. Don't be afraid to hire out some of your most time consuming tasks such as writing, proofreading and product creation. The pros do it, and so can you.

7) Time To Relax.

Don't kill yourself trying to work a day job and build a home based business at the same time. You need time to totally escape from your daily duties occasionally. Exercise is one of the best things you can do for yourself, while helping to manage stress. Don't sacrifice your health for business sake. Take that drive to the beach and walk a mile. Play basketball with your friends. Or just sit outside under a tree and read that new mystery you've been wanting to read. A clear head will do wonders for your productivity.

If you give it a try, you'll see that IT IS possible to solve "the time crunch". Be organized and know what your total work load includes. Think about spending less time watching television, or on other useless activities. Don't forget your family. Even though you are working hard, make sure you are having fun. If you don't love what you are doing, don't do it.

Because enjoying life is what it's all about, right?

Autoresponder Services For Your Business

by: scott morris

In the world of ecommerce, millions of sites are fiercely competing with each other to gain new clients. For any ecommerce site to succeed, it must capture the interest and the trust of its visitors. It is not enough that your site is impeccably designed or has the latest in animation of content. You should focus your efforts not only in attracting visitors but also in leading them to make a purchase. There are dozens of marketing strategies you can use to attract more purchaseers and pump up your sales. One of them is by establishing an excellent and professional reputation for prompt and efficient response.

As more potential customers visit your site, you should expect a flood of inquiries and requests for information. This is an excellent opportunity for you to capture more clients and lead them to purchaseing from your site. Thus, it is important that you carry out an efficient and prompt response to every email you receive. The fastest and most effective way to do this is by utilizing Autoresponder services.

Autoresponder services use a computer program that automatically returns a prewritten message to anyone who sends an email to your site. It is widely used for responding to consumer inquiries and visitor comments and suggestions. Autoresponder services are also used by e-zines in responding to people who subscribe or unsubscribe to their online magazines. Companies, who send out their e-newsletter regularly, also use Autoresponder services.

How can effective Autoresponder services help boost your business? The answer lies in its ability to return a prompt response to any e-mail the site receives. By responding rapidly and efficiently, you create a very good impression on your potential customer. Good Autoresponder services help you get important information back to these customers immediately. An effective Autoresponder service helps you communicate your message promptly, creating a sense of professionalism and efficiency that your clients will definitely appreciate.

Another very important advantage of Autoresponder services is that it saves time with multiple marketing tasks. Certainly, you do not have enough time to personally make and send all correspondence. Autoresponder services allows you to send thank you letters, newsletters, product information, brochures, orders etc. to hundreds of clients almost immediately and simultaneously. Autoresponder services are also indispensable in any email marketing campaign.

Choosing the right Autoresponder services is very important. What then should you look for in an Autoresponder service? First, you should pick an Autoresponder service that is reliable and can give you 24/7 service. You cannot afford to lose a customer because your Autoresponder service failed to answer his query or request for information. The ability to respond promptly is the first thing you must look for in any Autoresponder services.

Another key factor you should consider when choosing Autoresponder services is flexibility. Good Autoresponder services allow you to customize unique responses that will have maximum effect on the customer. You should avoid creating an impression that the customer is communicating with a machine instead of a real human being. Excellent Autoresponder services lets you provide the information that is specifically targeted for what the potential customers are looking for. Because any email from potential customers essentially represent the customer's intent on getting more information about your product, which can ultimately lead to direct sales, all emails are important. Thus, a top Autoresponder service must fulfill all these duties to help you boost your business.

Banking Software: Do You Need It?

by: Sandy Baker

Whether you are considering the purchase of banking software for your personal use or for your business use, there are many reasons to consider this type of software. For one, you will reap many rewards. For another, it will relieve much work from your shoulders. But, do you need a banking software? You probably do not need a banking software if you maintain your checkbook accurately. You probably do not need it if you know how much you are spending on your various expenses each month. You also probably do not need it if you know how much of your income is going towards savings. But, then again, are any of us good at this type of organization?

Banking software really can help you manage your everyday and monthly expenses. It can help you to know what is happening in each function of your business as well. Who are you paying and how much are you paying them? What is your income to spending ratio? Are you saving enough? Are you investing well? These things are all things that a banking software can help you to manage.

Many banking software options allow you to connect right to the web so that your daily information can be downloaded and managed. No more balancing a check book when you can use the software instead. In fact, it will do that for you.

Another nice feature about a banking software is that it will allow you never miss another deadline for bills again. This is a great option because it allows you to know when you need to send out a payment so that you don?t have to deal with missing payments, late fees or even worse, bad credit reporting.

Banking software is exceptional when it comes to business use as well. It can organize just about any type of solution that you need it to and allow you to excel in your businesses' overall plans. Consider a banking software for all of your needs.

Point Of Sale Systems: How to Choose One That’s Right for Your Business

by: Mark Henry

A point of sale (POS) system can have a dramatic impact on the way you run your business -- and on your bottom line. Choosing the right one requires careful planning.

Here are some of the things you need to think through to make a good decision when selecting POS equipment and systems for your business. Use this list as a starting point for your planning process.

* First of all, price should not be the main consideration when purchaseing a POS system. The improved efficiency, greater flexibility and better reporting should pay for the investment in a reasonable period of time.

* Don’t start off by calling for lists of features of various POS systems. Instead, start with a comprehensive analysis of what your business requires.

* Do you have operations spread over multiple locations? What are the implications?

If you run a restaurant, for example, you may need to keep some parameters common across locations while varying others. For instance, your menu may be identical at all locations, but prices of some items may vary from one outlet to another. The system you choose must be capable of implementing such differences.

* How easily can you make changes to the system? You can be sure that your business will keep changing in many respects -- employees join and leave, prices go up or down, your product range expands, locations get added or deleted and so on.

Ask yourself if the programming interface will easily allow your employees to execute such changes.

* Will it be possible to make changes ahead of time? For example, if you’re beginning a special promotion on November 15, can you input the price changes well in advance and set the system to automatically effect the changes on that date?

This as well as other types of flexibility are essential for many retail operations.

* To what extent will the POS system need to integrate with your accounting system? Does it have to be real time? Or is it enough to have an export of entries at day-end?

* If you are running a bar, does the POS system need to work with liquor control devices? A liquor control device tracks pours from bottles. This makes billing easier and reduces shrinkage.

* Will the credit / debit card processing system in the POS equipment work well with your merchant account?

* Will the system allow you to implement special deals for frequent shoppers? For instance, each purchase could have points associated with them and these points could eventually translate into lower prices or free gifts.

* What reporting capabilities will you need? If you work across multiple locations, will the system give you an online real-time report of transactions completed?

Most dealers will have sample reports available. Ask to see them so that you can compare better.

* In most cases, the POS system will have to be upgraded as your needs evolve and expand. How quickly can the dealer respond to your needs?

Also, most dealers put out regular software upgrades. Are they included in the contract or does the dealer charge extra for them?

For the sake of avoiding compatibility problems, plan to purchase new hardware of the same kind as the original. That way you’ll ensure everything works well together -- and even if there are problems, you can get the dealer to handle it.

* Support is a critical consideration. What happens if your POS system goes down? This can have a serious impact on the business. You need to get a detailed written agreement on how the dealer is going to handle breakdowns.

The dealer may try to diagnose and solve the problem over phone initially. If that doesn’t work, they may send support staff to your location. And if the problem can’t be solved quickly, you may need to get equipment on loan till your system is repaired.

POS system downtime can have serious implications. Make sure you get the support you need.

The above list should help trigger ideas about the kind of issues you need to look at. Do your planning well before deciding on a POS system for your business.

Great Payoffs From A Workflow Software

by: Trevor Marshall

When it comes to the terms, “Streamline Operations” or “Reduce Operating Expenses” and “Cut Labor Costs”, do you really have any idea what these terms actually mean? How much money does the company actually want to save? And how does workflow software help the company to achieve this seemingly insurmountable goal?

When it comes to workflow software, every company definitely has their own sets of procedures as well as methods that they implement when it comes to handling all sorts of day-to-day operations in and out of their companies such as the following: invoicing, time sheets, status reports, new account setup and you might as well include everything else that will be able to make your business tick. The term workflow in workflow software actually refers to the tasks, personnel, procedural steps, required information as well as the various tools that are needed for the steps that the business has to take in order for it to become successful.

Every company has a unique and different process as compared with other companies in the business, this is why a lot of growing companies usually end up with a highly unorganized business process when it comes to email templates, spreadsheets, shared documents, paper forms and even trivial knowledge which the employees should know in order to be able to handle the day-to-day business.

Majority of the time, such chaos and disorganization often leads to various frustrations and problems for the small company, such every day hassles include: missing paper work, missed deadlines, lost as well as incorrect information as well as extending heavily on working hours in order to complete a certain task. This is what usually happens to unorganized offices and is often referred to as “red tape.” The bottom line is that when the red tape starts getting on your customers nerves, it would soon be a downward spiral for your company as well.

So to your company’s rescue comes workflow software automation. But what exactly is a workflow software? And how can it help you out in this company crisis? Workflow software is actually still relatively new to the corporate setting wherein it is a combination of a to-do list as well as project management tool, only set on a different scale.

When it comes to workflow software just think of having a simple to-do list at your hands wherein through the workflow software, that to-do list can now also be accessible by other employees from your company through the company network. This simple to-do list can actually, on its own, keep track of all the items that need to be addressed by everyone in the company. Also, through the workflow software, once certain tasks are completed by the assigned company employees, the workflow software will actually automatically send off other to-do tasks to the appropriate company employees.

The workflow software is actually smart enough to also pass whichever documents or data that are needed to be able to perform whichever tasks that it sends out to the employees. And lastly, if the workflow software’s features are not exciting enough then there are other great features that this automation software has in store for its users. The workflow software can also do some visual status tracking of the tasks at hand, due data monitoring (which ensures every member of your team that a deadline has been set and has to be especially met by the employees, business rules). The workflow software will always make sure that the employees continuously adhere to the company’s rules and regulations, e-mail and database capabilities.

It is incredibly important for a company to have a well sorted out database in order to prevent people from panicking once a certain file has mysteriously disappeared most especially during the time that their boss needs it. All these are jam-packed in the workflow software automation wherein it will certainly be able to help you and your company, and most especially the employees to have a simplified working environment which is highly geared towards being able to produce the best results at any given time. The workflow software will actually enable employees to be able do their job well since they would not be scrambling for lost files anymore as well as all sorts of other hassles that may erupt when you are in a highly disorganized company. It is also equally important that the employees are highly skilled but their skills will not be a match to the cluttered chaos that will be caused by disorganization.

For Entrepreneurs A SIMPLE Plan May Be Best

by: Tim Knox

Q: I own a small decorating business and I’ll be the first to admit that I don’t know anything about taxes or retirement plans. I’d like to set up a 401(k) or an IRA or some other kind of retirement plan for me and my three employees. What are the various retirement plan options available for a small business owner and in your opinion, which would work best for me?
-- Wanda S.

A: Wanda, I appreciate your confidence in my humble opinion, but asking me for financial advice is like asking Donald Trump for a recommendation on hair care products. I can tell you what works best for me and my business, but you’ll need to do your homework and seek professional advice to figure out what would work best for you. As a side note, I hear that Donald Trump is coming out with his own line of hair care product soon to be called “Big Head.” The formula is 1% mousse, 1% liquid nails, and 98% hot air. It should be a big seller among the high brow, comb-over crowd.

Here’s my best advice on retirement plans: find yourself a financial advisor (or financial planner) who is has experience working with small businesses and have him or her explain the options available and make a recommendation as to the type of plan best suited for you and your business. When I say “financial advisor” I’m not talking about your know-it-all brother-in-law or your accountant. I’m talking about a broker or financial planner (or other licensed professional) who has a proven track record of making his clients money and is an expert on IRAs, 401(k)s, mutual funds, etc.

The best way to find a good financial advisor is to ask for referrals from your most successful friends and associates. Find the richest, stingiest man in town and ask who his advisor is. Meet with several advisors, explain your situation, and ask for their recommendations. You should also make sure the advisor is a good fit for your personality and your business. If all goes well you will be doing business with this person for many years to come, so make sure the relationship feels comfortable to you and that you are confident in the advisor’s ability to manage your money.

Let me give you a quick overview of a few of the retirement plans available to small businesses so you at least have an idea of what’s out there before you start your search for a good financial advisor.

As a small business you basically have three types of retirement plans that you can take advantage of: the Self-Employed 401(k); the Simplified Employee Pension Plan or SEP IRA, and the Savings Incentive Match Plan for Employees or SIMPLE IRA. Each allows you to make pre-tax contributions to the plan, which lets you save for retirement and lessen your taxable income by the amount of the contribution. Your investments also grow tax-deferred until withdrawal.

A Self-Employed 401(k) is an option for self-employed individuals or business owners with no employees other than a spouse. The business can be a sole proprietorship, a partnership, or a corporation, including S corps. You can make salary deferrals to this type of plan of up to $14,000 for 2005.

Next is the Simplified Employee Pension Plan or SEP IRA. A SEP is an option if you earn a self-employed income from a full or part time business, even if you are covered by a retirement plan at your fulltime job. A SEP allows you to contribute up to 25% of earned income, up to $41,000 for 2004 and $42,000 for 2005.

My preferred type of retirement plan is the Savings Incentive Match Plan for Employees or SIMPLE IRA. The SIMPLE IRA was created to make it easier for small businesses with 100 or fewer employees to offer a tax-advantaged, company sponsored retirement plan.

With a SIMPLE IRA you and your eligible employees may contribute up to 3% of earned income (with a maximum contribution of $10,000) on a pre-tax basis to individual SIMPLE IRAs. You must deduct Social Security and Medicaid from your gross income, but you can then make your SIMPLE IRA contribution before other taxes are levied, effectively lowering your taxable income.

As the employer you must make “matching” or “non-elective” contributions into your employees’ SIMPLE IRA accounts. Matching contributions means that the business matches the elective deferral contributions made by employees. For example, if the employee opts to contribute 3% of his salary to the plan, the employer must match the 3% contribution.

At first you might cringe at matching your employees’ contributions, but as the business owner and an employee yourself this can be great news. As an employee of your own business you can contribute up to $10,000 to your SIMPLE IRA and the business can then match your contribution dollar-for-dollar, which means that you can put up to $20,000 in tax free dollars into the plan per year. The cost of the contributions is also deductible as a business expense.

The non-elective contribution option requires that the company contribute 2% of every employee’s earned income to the plan on the employee’s behalf regardless of whether or not the employee contributes to the plan himself. For 2005 the maximum contribution you would be required to make is $4,200.

Like a traditional IRA, you can withdraw money from a SIMPLE IRA at any time; however distributions within the first two years of participation are subject to higher early withdrawal penalties than traditional IRAs or Roth IRAs. Withdrawals within the first two years are subject to a 25% early withdrawal penalty. Withdrawals taken after the first two years are subject to a 10% early withdrawal penalty.

As the employer, the advantages of a SIMPLE IRA include: company contributions to the plan are tax deductible as a business expense; plan documents are simple and easy to administer; administration costs are low; and there is no government reporting required by the employer.

The advantages of a SIMPLE IRA for your employees include: contributions are immediately 100% vested; contributions and earnings are tax-deferred until withdrawal; employees can contribute 100% of earned income up to $10,000 for 2005; and employees can direct their own investments within the IRA.

This is a complex topic and I’ve just tipped the iceberg here, but hopefully this will give you enough information to get the investment ball rolling.

Here’s to your success!

About the author:
Tim serves is the founder of DropshipWholesale.net, an online organization dedicated to the success of online and eBay entrepreneurs.