Tricks Facing Business Competition

One of the challenges of doing business is the emergence of competitors in the same business. Ali Good Antra, business owners Bebek Garang, said competition in business will always be there and can not be avoided. 

"We should have a provision for this competition so as not to lose competitiveness," Ali said in a talk show Overcome Mighty Competition Culinary SMEs in Tuberose, 2012 at Hall Basket Senayan, South Jakarta, Indonesia, recently. 

According to Ali, when doing business there are several things that must be prepared to face competition, among others: 

1. Mature concept 

Running a business does not just need an idea and passion alone. However, a thorough business concept is also very necessary. The concept of mature business will help you to be able to recognize a variety of potential and market share in the business you want to target. In addition, the concept of mature business will also be able to make the business run more optimally. 

In determining the business concept, there are several things to consider, among others, public taste, or the characteristics of people's lifestyles, purchasing power, sources of raw materials, to the existence of similar businesses. 

"These considerations will help to determine the success or failure of the business done," he advised. 

2. Careful planning 

The concept of mature business, will help to create a business plan that is also mature. "In doing business can not be arbitrary because in business, you are risking quite a lot of investment. If planning is not done, everything will be in vain and a big loss," he explained. In careful planning, a business plan must be made. 

Are included in the business plan include: outlining the concept of business, vision, mission, promotional plans, marketing plans, employee, financial regulation plan, to determine the risk analysis that may be experienced in the business. With the careful planning, you can determine a way out or a solution to any problems that may be encountered, including face similar competition. 

3. Evaluation and innovation 

Competition with similar businesses often can not be avoided. But actually this competition can make you become more creative to be creative. With the competition will make you become more innovative to create an added value in the products sold. Innovations made in a variety of side glances will attract customers to your products over the competition. 

In addition to innovation, it is necessary to evaluate business continuity. You can not just close our eyes in running a business, an evaluation of the deficiencies and the value of doing business is also required to further advance the business dilakukan.a 

4. Market expansion 

To face the business competition, one of the ways that can be used is to expand the product market. Expansion of the product market could mean expanding the focus and target market being targeted. For example, if initially only selling variant of spicy food that is intended for an adult, it could not hurt to create a new variant of the menu that can be enjoyed by the children. The expansion of this market share will also increase revenue while providing added value to the customer on the products sold. 

In addition to expanding market share, market expansion can also be done by opening new branches of business. Branch of this new venture will help to control the market similar business. "However, prior to the expansion of the branch system should attempt has been strong and stable," he advised. 

5. Standardization 

Has many branches can indeed help businesses overcome the tough competition in the business. Only thing to note is the similarity of product variants are sold in all branches owned. 

"Standardization is necessary so that the customers do not be disappointed when purchasing your product in the branches of the business. Standardization is very necessary especially if your culinary business. Standardization recipe serves to generate a sense of uniform in all branches," he said. 

6. System 

A strong business systems will help businesses to survive longer and get the desired profits. Create a business system that is stable and strong. Once considered a strong business foundation, then did the expansion of the market with a variety of business systems desired, for example to open a branch, until the franchise. "With a system that is robust and consistent effort will be a positive value for the investors who are interested in doing business with you," he concluded. (* / Kompas.com)

Reference:

http://www.ciputraentrepreneurship.com/rencana-bisnis/trik-menghadapi-persaingan-bisnis

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How to Find Partners For Business

Sometimes, building a business with a friend to produce something great. But not a few become cracked friendships just because bisnis.Pepatah saying: better to have friends of the business rather than doing business with a friend. It was a portrait of how a partner in a business can be difficult or help the development of your business. 

If you're starting to build a business and need a partner, the following suggestions may be taken into consideration. 

Same vision. Partners who have the same vision with you will facilitate business development direction. How to know the vision of future business partner is the personal approach and more intense in the discussion. 

Tie with a written commitment. Once you find people with the same business vision, fasten it by writing a shared commitment. Agreement in black and white will show your seriousness and partners. Do not forget to do a revenue sharing agreement. 

Sharing is good jobdesk.Good business is runned by people who understand their respective duties. So when you have a business partner, make sure you and they have determined the distribution of each task. 

Defaults. If it turns out your cooperation and partner halfway, then you and your partner have to think about the division of assets and loss of coverage. Talk about it with each other honest from the beginning. 

It's ready to find the ideal business partner? (Readersdigest)

Reference:

http://www.ciputraentrepreneurship.com/business-advice/cara-mencari-mitra-untuk-berbisnis

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Easy Tips to Find Potential Consumer

Consumers are vital to your business indiscriminate what business you are running . Because the number of consumers will support the success of your business . Finding potential customers certainly not as easy as turning the palm of the hand . Here are some ways that you can apply :

Determine the target

Before looking for potential customers , you alone must determine who the target market of your product . This is to facilitate your search for a client or customer which if are interested in using these products .

Be Proactive

Business will not run if you remain silent . Do not wait for clients to come , but you should go to the client and offer your product . Especially when running a new business , it is important to be proactive . Take a look contacts close friend , former co-worker , or family that you think could be potential clients . Approach them and introduce your product . But avoid being forced , so they are not directly away .

Establish a network by exploiting consumers

Word of mouth marketing , the recommendation of a client is one of the most profitable way of promotion . Ask a friend or anyone who feels satisfied with your product to market it to other colleagues . You can also ask to be introduced to friends of friends , then Liaise network as widely as possible.

Reference:

http://www.ciputraentrepreneurship.com/penjualan-dan-pemasaran/kiat-mudah-temukan-konsumen-potensial

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Tips to Make Your Customers Do the Promotion of Mouth to Mouth

As we know , the traditional promotion of mouth is an effective medium to introduce your business . In addition , this promotion does not require huge costs could even free if the customer satisfied with the products and services you offer.

Customers are the most appropriate media to run this type of promotion . Here are some methods that customers want to be the ambassador of your campaign:

Ask the customer to try

If you want customers to discuss products , ask them to try it and tell others about the results . This is an effective way to create a positive recommendation .

Always engage customers

Ask the opinion and listen to their customers . Make them feel important because the feedback and their opinions respected and accommodated . Notify and inform every activity of the company regarding the customer such as events, new product launch , or other special event .

Creating a forum

Involve the people who influence you make on the forum so that they can share their opinions and feedback . This forum can be started from a simple cocktail party or an online forum involving influential people who can spread the recommendation trust other customers .

Special services

Give a great talking point for your customers . Give special care and provide quality treatment so that they are encouraged to share it . Starbucks coffee is not popular because of the valuable 30 to 40 thousand , but because they are trying to remember all the names of customers at once what their favorite drink each. They provide quality and memorable experience so that customers are willing to pay top dollar for a cup of coffee .

Keep the relationship

Keep always the relationship with the customer . Tell each of the companies is nothing special , give bonuses , and any way to maintain the relationship . It will not only enhance their visit , but they also will start talking about you .

Reference:

http://www.ciputraentrepreneurship.com/penjualan-dan-pemasaran/6-tugas-seorang-chief-marketing-officer-cmo-menurut-philip-kotler

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Shaping Strategy Team Strong Salesman

Sales is the lifeblood of the company , without the company's sales may not live . Behind a result there are sales people behind it . Good sales targets and achieve excellent sales exceeded the target .

While there are elements of luck and blessings in disguise , not always and should not be relied upon . That should be a mainstay is the power and performance of the sales team . How does the company formed a team that we call Super - Team Sales Forces ( abbreviated STSF ) . STSF without being chased will demonstrate high performance for exceptional performance . How can we have a reliable STSF that's what we're talking about this time .

First , recruitment . A seller must have a big ambition would always be a winner , do not give up . If he is a beginner it can be seen from the scores in school if he went in the top three best . If he had experienced as a seller if he has a track record as a salesman or saleswoman best . Then we also need to know the motives concerned in the work .

Is just filling time rather than unemployed , or for the experience or to earn a living to support his family and help parents or siblings . Motives are those that work best to build careers become important in the company , achieving a high level as a manager or director of the company even top leaders . Combined last two motifs are the most good . Surely the work would earnest, insistent , not arbitrary .

Second , training . Training includes knowledge about the company , products and overview of the competition , as well as engineering skills to offer and sell , and how to deal with customers including overcoming rejection . If possible , can also invite speakers well -known motivator who focus on sales and general in order to explore and encourage potential sellers to be an outstanding and superior .

Training is not enough with the class - room trainingakan but also in simulations and role-plays . On-the - job training also needs to be done after the relevant acceptable . Aside from being a well educated individual as a member or part of a team in the techniques of team - dynamics ( team dynamics , interaction , co-exist ) .

Third , mentoring early stage . The initial stage is a crucial stage . How salespeople who have escaped and been through the training begin applying or implementing all he had learned into practice .

Someone who master the theory does not necessarily guarantee or can not master the practice in the field . Mastery is personal theory , practice in the field interacting with others who do not rarely react unexpectedly . Olehkarenaitujika possible in the first few months were considered sufficient , salesman or saleswoman in question accompanied by an outstanding senior to guide him .

In order for the mentoring is done in earnest then the seniors need to be given incentives , if a salesman or saleswoman who mentored successfully with especially good sales record is very good and he received an award as the best mentor with a gift that is quite valuable . Once considered enough time - should not be more than three months - the salesman or saleswoman in question can be removed by yourself.

Fourth , monitoring . Monitors can be done through a written report and a visit to the market , to customers . How acceptance and their assessment of our new salesman or saleswoman . Comments good is not enough , it must be proven with good relationships and increasing sales orders , is a testament both qualitatively and quantitatively .

Furthermore , both for the individual salesman or saleswoman or in teams can be made a sort of matrix or quadrant in three columns : low, medium and high above the line and below the line into the desired qualifications and achievement ( results achieved ) .

Task supervisors and sales managers are located in the column shift to medium low , and then being to high. Rotation to other regions ( geography ) as well as other domains ( demographics ) will show and prove where the salesman or saleswomanyang worthy or fit to be a member of STSF . Fifth , rewards . Tim is a seller that will determine the company's progress in real terms . Remember high sales , make the company great.

Therefore they need to obtain an award of compensation in addition to the general . Praise with words alone are not enough . Award must betulbetulberharga , baiksecara maupunnon material - material . The award is given to teams and individuals and should be enjoyed by their families so that the family can also be a driving force for a salesman or saleswomanuntuk achievement .

Outstanding awards given in an annual awards night event for those who are in the top three . Costs incurred for STSF may be considered quite high and excessive , but we need to realize that they are - they are making a big company , therefore, should be seen as an investment that will return not as a mere cost . ( okezone.com)

Reference:

http://www.ciputraentrepreneurship.com/penjualan-dan-pemasaran/strategi-membentuk-tim-salesman-yang-kuat

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3 Ways to Keep People 's Trust

The majority of people have the belief that they can count on when they need to finish a job properly. However , when you appreciate the reliability of a subordinate , you tend to ignore other advantages.

Here are 3 ways to develop better confidence in your staff during this time:

1. Be diligent to examine the development of his work : Make sure that you do not burden them with extra work just because you know that they will do so obediently . Remember they are not machines.
2. Give reward : Give them time to complete the projects that they value personally. Autonomy and appreciation strengthens their ties to the company and increase the chances to survive in the future.
3. Watch them well : you know you can choose a more relaxed approach with employees who have a work ethic and high credibility but closely supervise their work will provide an opportunity to demonstrate their advantages.

Reference:

http://www.ciputraentrepreneurship.com/hrd/3-cara-jaga-orang-kepercayaan-anda

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3 Ways to Spread the Passion in Your Employee Self

Employees who have a passion showed better results in daily life. The best way to cultivate passion within those you lead in the company is to show your own passion , but you do not have to be cheerleaders .

Here are 3 ways to naturally show your enthusiasm and inspire those who are under you :

1. Focus on the positive aspects : The employees know when a leader is really concerned with the company or a project . The leaders who have a passion compelled to continue to talk about what has been successful and try to find ways to fix things that have not been successful .
2. Do not ignore the negative aspects : The leader who has a passion not only pay attention to things good and beautiful . They also did not hesitate to discuss the negative things in a realistic way and help people solve their problems .
3. Set high expectations : It's not given workload that can not be resolved . The leaders who have a passion should be able to inspire and challenge people to do that terbaikn dipimpinna without making them feel excessively burdened .

Reference:

http://www.ciputraentrepreneurship.com/hrd/3-cara-menyebarkan-passion-dalam-diri-karyawan-anda

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Bonuses Really Wanted Your Employees

Is giving money as a bonus for your employees to spend arbitrarily will make your company a more pleasant place to work ? Surprisingly , reward money for each of these employees could have a negative impact on the morale and spirit of their work . Jealousy and competition can emerge . Teamwork dynamics can be disrupted .

Consider switching to a more altruistic program , in which Ana gave employees the same bonus amount with one requirement : The majority of the funds should be set aside for donation prosocial alleviate the suffering of others as a charity .

In a charitable corporation that provides vouchers to employees and encourage them to contribute to charitable efforts that they think are important , people considered to be more satisfied with their jobs and feel the happiness higher .

Other companies ask employees expend funds to treat one another or the little feast : Some teams choose to feast with chocolate , others opt for karaoke .

Bonus prosocial giving gifts that add to the rich experience together as a team . Teams that take the bonus policy is likely to be more compact prosocial and performing better than the team that received the cash to spend on their own .

Reference:

http://www.ciputraentrepreneurship.com/hrd/bonus-yang-benar-benar-diinginkan-karyawan-anda

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7 Types of Employees Not Worth Defended

In the increasingly competitive world of business today, the right to hire labor and productive is an absolute prerequisite . Human resource is an invaluable asset for a company to keep lasting .

However, it can not be denied also that in reality often found a group of employees who are likely to be a burden rather than an asset to the company where bekera . As a business owner and entrepreneur , you need to identify the types of employees who actually make a company going nowhere .

1. The maker of the act : With all the problems and challenges that have emerged , such as the type of employee is still making trouble . Often the cost to be paid as a result of problems that made ​​greater than the benefits it bring to the company.
2. The promiser : Most people have the ' skill ' to lull his superiors by giving promises . They want attention with bombastic promises and often less serious in achieving their own targets set . This type glorify their egos and ambitions could drag the company to those who do not lead but have almost zero realization.
3. The consumer ignoramus : No matter whether your business is new or already established , business is basically how to get and retain customers . So if your employees being spicy and negligence on the consumer , be careful . It could be that he is not an employee of the company's assets that must be maintained.
4. The avoidance of work : Your obligations as a supervisor is to provide a clear description of what he had to do and provide the tools and training needed before employees perform their job according to your request . However , employees do not like this job evaders try even after you give a couple of occasions.
5. The less scrupulous : There are some others that can not be counted on to finish the work as it is almost always forget the important details of their work . For that , you had to keep reminding.
6. The claimants right : A group of employees has the courage and ethics out of bounds . They even do not hesitate to claim that in fact they do not have rights and take legal action to it.
7. Offender rule : any rule in the company and the culture grown in it , you have to establish it as a leader by example real and consistent . Therefore , if you are already a maximal example , you are entitled to claim all your subordinates to follow the appeal . And if they break , do not hesitate to act decisively . Especially if the offense was repeated and fatal .

Reference:

http://www.ciputraentrepreneurship.com/hrd/7-jenis-karyawan-yang-tak-patut-dipertahankan

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You Fired ? Do not Worry Because It Can You Be an Entrepreneur whipped

CEO of Y Combinator Vibhu Norby said, fired is one of the best ways to find the right direction in life . Y Combinator company founded Norby is a provider of funds for a number of new businesses in the United States ( U.S. ).

As reported by Business Insider , firing employees could also be the steps to take if you served as a manager or CEO of a company.

According to Norby , the best way that can be done at a low -performing employee is fired as soon as possible . By doing so , the employee will be quick to realize her abilities and soon develop themselves . Norby is the founder of Y Combinator who then fund his Origami.com site.

Long before establishing Origami Norby , he is a web developer at a company . He built a site using ASP.NET equipment when he wants to use an open programming system.

At that time he was working at a game company . He was eager to develop new ideas they have. One day he summoned the management company carefully convey that he was fired.

His boss said , Norby should look for another job because the company may not be the best for him.

Become Entrepreneurs

He said he was surprised and frustrated because fear is not acceptable in any company . But he later worked with his second home in the garage working on a project specific programming . The project was later developed into a large company owned now.

So far fired is the best thing that ever happened to me . That way , I can realize that I am able and more willing to build my own future , he said.

Currently Norby has been a CEO and he sometimes even fire employees who do not work optimally . He believes that the firing of any employee can do a better job at another company.

Reference:

http://www.ciputraentrepreneurship.com/memulai-bisnis/anda-dipecat-jangan-khawatir-karena-itu-bisa-melecut-anda-menjadi-pengusaha

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7 When The Right To Start A Business

Maybe you have realized that the self-employed or own your own company is the best way to improve your life . It is certainly encouraging your confidence to build a self-sufficient business independently. Then , when the time is right to start building your own business ? Compiled from the opinion of Michael Lazerow ( CEO of Buddy Media ) , the following are the best times to establish a line of business :

1 . Best Time While You are Young

The best time to establish a business empire was when he was young . Filled with the spirit of youth and high creativity . Although still minimal experience and often take the wrong decision , but the experience will make him stronger in the future .

2 . Best time is When You Do not Enjoy Your Current Job

If you feel tired , do not enjoy , and often want to run away from your job , then that's a good time to start thinking to build your own business . What is the meaning big salary if you do not feel happy with your job duties . So , take the time to plan your night and workable business strategy .

3 . The Best Time is When You Fired or Quit Company

You may feel very shocked when he received a letter or a layoff must be forced out of the company . It definitely forces you to introspect themselves and examine all aspects related to your life . But optimislah , and believes that 's when the best time to entrepreneurs independently. It will be felt strange when should adapt habits as a candidate working towards the big boss .

4 . Best time is If You Can Focus

The best time to build a company is when you have the opportunity to be able to focus on developing your business . Aspect concerns the focus is usually on how much responsibility you have. The more the amount of responsibility you have ( eg, family responsibilities , responsibility affairs lecture on responsibility at the organization you belong to , etc. ) will make you focus fragmented , making it less appropriate to start self-employment . So , when you have to focus on your business , that is the best time to start your business !

5 . When is the Best Time You Have incurable obsession

You work in a company ? But you always , always , and always haunted by your brilliant ideas to build your business concept ? You can not concentrate and running obsessed by the will of your own company ? If it happens , just get the action to build your own business !

6 . Best time is when you are on Level Intrapreneur

Entrepreneur means employers , while intrapreneurs are professional businessmen who already have and apply kewirausahaanya and succeeded in developing new ideas for innovative utilize various resources in well-established company and then take the risk to build a business that is already different from the run . At this level , you can begin to build your own business .

7 . Time is Today's Best

Many large companies who initially pioneered in times when the economy is bleak . Therefore , do not wait for tomorrow , a week , two years , or after you obtain a college degree . Do it now ! You should look at the meaning of " The Power of Today " , that is, if you miss this day , then chances are 75 % of them will be missed forever ! So , seek opportunities and do now ! Similarly, a brief description of the most appropriate time to build a business , hopefully inspire you .

Reference:

kerjausaha.com

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Five Ways to Start a Business from the Bottom

Having a business is a desire of many people . It's fun raising self-owned businesses . Then the question is how to start a new business from the ground ? sebenarnyanya way to start a business is easy . Required only to have a dream . Due to our dreams can create tremendous business idea , until finally the business idea is realized into a profitable new business opportunities .

Furthermore, starting a business can be done as follows :

1 . Define business idea

Adjust effort will be opened with the capabilities , interests or talents that we have, but without leaving the factor market opportunities that exist in society . The number of successful entrepreneurs , because they chose their preferred field of business . So that we will always strive to develop the business that we have , with happy feelings without any saturation or boredom that often arise . Moreover, it can also start a new business that has never existed in the market so impressed unique and interesting , or open a business that has many in the market but still has a large market opportunity .

2 . Create the vision and mission of the business

A business must have a clear vision and mission , so that the business objectives and measures can be structured to support business development is built .

3 . Act

No matter how good a business idea that we have , will never be a successful business if we do not act soon . Begin efforts we plan with confidence and perseverance , because running a business to achieve success requires a struggle and a long way with hard work to be performed .

4 . Always learning and doing observations

Observe entrepreneur who has been successful in the same field , when we attempt observe relatively new management strategy they use . Another important thing is deepened knowledge about all things related to the business that we run , so we can be more innovative products .

5 . Face obstacles and failures

To build a successful business is not easy , the barriers and the risk of failure is almost always overshadows every effort . For that we should always think positive against the existing bottlenecks and failures , because in every difficulty there is ease if we would be willing to work hard . Without us knowing it , in a state of urgency will increase one's creativity to find solutions to existing problems . Therefore , facing obstacles and enjoy mental effort as it will strengthen our efforts and increase our ability to build a business .

The key to success is to start a business we dare to make dreams into a real business idea . Never be afraid to fail in starting a business , because any failure will provide valuable lessons for your business move .

Reference :
http://www.ciputraentrepreneurship.com/memulai-bisnis/lima-cara-memulai-usaha-dari-bawah

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Learn How to Invest

By Clint Maher

These days there are literally thousands of ways in which to invest your (or someone else's) hard earned money. Before you commit though, have you taken the time to actually learn how to invest? Have you taken the time to do due diligence and not relied on what someone else has advised? The cheapest advice is at the end of the day, usually the most expensive. So how just do you learn to invest?

Whether you have one dollar or one million dollars, the principles behind investing remain the same. That is to make a return on your investment, and preserve your capital. A most basic concept, but quite often forgotten as when we invest in today's world it can be likened to gambling on a horse race. The trick to coming out on top is to learn how to invest using proven strategies and from people who have gone before you and to learn from the mistakes that they made.

The greed is good days are nearly behind us and many successful investors have began to give back to others buy educating those who are willing to learn in their chosen investment vehicle. This is done in a variety of ways, including books, live seminars, home study DVD's, online webinars and over the phone mentoring.

You can find a mentor in any field you choose, and with the power of the telephone and the Internet, you can be on the other side of the world from them. If you want to be a successful property investor, share or options trader, Internet marketer, or even a business tycoon, then you will be able to find people and companies that are able to help you. Much of this assistance can be found free of charge all over the Internet, and much will cost you substantial amounts.

You may pick up most of the basics on the Internet if you know where to look, but if you really want to get serious, then you must make the best investment you can. You must simply invest in yourself. When we are given something for free, often we will put no value on it and not act on the information. When we have to fork out our own money, we treasure the investment and take action right away on our new learning.

Whatever you wish to invest in, go and read a book on the subject or go to a live seminar. Speak with a financial adviser, providing that they are successful investors themselves. Find like minded people and get to hang out with them, bouncing ideas off them. Do not take advice from someone who only has good intentions like your neighbours or work friends. Remember, the cheapest advice ends up costing you the most.

Take the time every day to do something to improve your knowledge on investing. Turn the TV off and do one of the many credible Internet courses available. Write down just why it is that you are investing and what you want to achieve from investing. If you have no end in sight then how can you possibly get what you want?

One you have taken the time to learn how to invest, you can then make an informed and smart decision, and be able to rest easy knowing that you have put in the required groundwork to make a wise decision when the opportunity does come around. By not rushing in and investing in the first thing that comes along, your potential for bigger capital gains starts to materialize. At the end of the day it all comes down to you, and if you were the one who took the time to learn how to invest.  

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Managing Your Investments Successfully

By Dale Gillham

Managing Your Investments well to be Successful

One of the key criteria to astute investing is to consider when and how you will take your profits - in other words, you need to consider your exit strategy before you invest.

Most investors never give this any consideration because when they invest they expect the asset to rise. And while the asset may rise, the value of the asset is not realised until you sell.

Consequently, this is considered unrealised profits as the asset could fall in value.

Therefore, you need to consider how and when you will exit if your investment turns sour or does not perform as expected.

Unfortunately, many investors mistakenly believe that if they have not sold a share that is falling in value then they are not losing.

But let me demonstrate why the opposite is true.

If I buy a blue chip share that is rising in an uptrend, I know with high probability that the stock will rise a minimum of 20% in price over the next 12 months.

Let’s assume I invest in five stocks throughout the year. Four of the stocks rise in value (all by 20%) and only one makes a loss (also by 20%).

Now let’s convert this into dollar terms.

If I invested $1,000 in every stock then I would have made $200 on each winning trade and lost $200 on the losing trade; therefore I would make $800 and lose $200, which would give me a net profit of $600 or a 12% return on my capital of $5,000.

Now let’s assume I decide to hold onto the stock that was falling in value, because I believe there is a chance it will turn around and start to rise.

However, by the time it has decreased by 50% in value I realise that this is not going to happen. So what is the effect of this on my portfolio?

On the losing trade, I lost 50% or $500, meaning the unrealised net profit changes to only $300 ($800- $500 =$300) or 6% profit on my $5000 capital.

By allowing the losing trade to fall below 20% halved the return on my portfolio from 12% to 6%.

The longer a stock continues to fall the greater the effect on your overall profitability, which is why it is so important to ‘cut your losses short and let your profits run’.

In essence, allowing your losses to run into bigger losses turns a good investment strategy into an average one.

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18 Personal Loan Tips For Intending Borrowers

By Frank Hills

Frank Hills is a Money Tips Editor and a regular contributor to Money Tips monthly newsletters

18 Personal Loan Tips For Intending Borrowers

If you're thinking of borrowing money to buy a car, boat, debt consolidation, home repairs, medical bills or anything else for that matter, here are some red hot tips to make the process much, much easier.

1. Avoid unsecured loans if possible

Avoid using unsecured personal loans if you can put up some security for your borrowings. This will get you a lower interest rate. A home equity loan, or redraw of extra repayments, allowing you to borrow against the equity built up in your own home or an investment property, is the best option of all, and could get you finance at up to 5 percent less than a personal loan.

2. Be honest in loan applications

Be honest about why you want the loan. Your bank may be able to offer you a loan option that better suits your circumstances. There are an increasing variety of different types of personal credit these days; car loans, commercial loans, leases, home equity loans, are just some of the examples.

3. Can't get a standard loan? There are alternatives

If the banks, building societies and credit unions won't lend to you because you're self employed, newly arrived in the country or have a poor credit history, consider the booming non-conforming and "low doc" loan market. A number of non-bank lenders offer loans which especially cater for this type of borrower. The interest rates on non-conforming loans are generally higher but come down after a few years of on-time repayments.

4. Check your statements for errors

There are claims that more than 50 percent of loan statements contain calculation errors. Simple mistakes, like the entry of the incorrect balance or the application of the wrong interest rate at the wrong time can be costly and mostly favour the lender. We all make mistakes, even bank computers make them and that's why borrowers should keep a close eye on loan statements. Various software for your home PC is available that can run a check on your statements.

5. Consider smaller lenders too

When shopping around for a car loan, consider community banks, credit unions and other smaller financial institutions which might be more approachable, and offer lower interest too.

6. Do you have to take out a personal loan at all?

Think twice before borrowing money without security. You may have a better option already available; home equity extension to your home loan, a new loan that uses your property as security, a credit card, or even a rich relative!

7. Do you qualify for a 'relationship discount'?

Relationship discounts are available from banks and credit unions for those borrowers who consolidate a range of banking business with the one institution. Home and personal loan interest rate discounts, term deposit bonuses, savings account fee waivers and credit card annual fee waivers are commonly offered.

8. Don't just take the dealer finance. Don’t accept loan or lease finance offered by a car dealer before comparing the offer with finance options offered by your bank or other credit providers. Dealer finance might be less hassle but you could well end up with an expensive loan and more restrictive terms and conditions. The same goes when buying furniture or any consumer goods where finance terms are offered.

9. Don't make multiple applications

Don’t fill out applications at several financial institutions and have all of them checking into your credit history. This can make you look desperate and lower your credit score.

10. Don't rely solely on comparison rates

All lenders must now include "comparison rates" in advertisements for their home loans and personal loans to help consumers get a feel for their total cost - fees and the interest. Don't rely solely on comparison rates when choosing a loan and beware of their shortcomings. They only take into account fees and interest rates, not the features and how suitable the loan is for your circumstances.

11. Have the right information when applying

What you will be required to supply in any application for lease finance will depend on whether the lease is for personal or business use.

Personal lease applications will require:

·        proof of current employment

·        income details or tax returns

Business lease financing requires more detailed information and may include your:

·        balance sheet

·        tax returns

·        cash flow projections

·        business plan

Confirm with the lender what you will need before the interview.

12. Have you considered a credit card?

Consider also a credit card as your source of credit. Interest rates are generally higher but credit cards are easier to secure and offer greater flexibility of repayments.

13. Honesty counts

Be honest about why you want the loan. Your bank may be able to offer you a loan option that better suits your circumstances. There are an increasing variety of different types of personal credit these days; car loans, commercial loans, leases, home equity loans, are just some of the examples.

14. Keep accurate records

Keep accurate records of your deposits and ATM transactions. It is also wise to keep copies of your loan application and approval documents in a safe place.

This is the best way to avoid hefty fees which may be charged by a bank when its customers want to see copies of their cheques or loan files.

15. Know what interest rate applies

When offered car finance, either lease or loan, always be sure you know what interest rate applies. Lenders often ‘sell’ you their finance packages by quoting the monthly repayments only. This may disguise a high interest rate.

16. Look beyond the banks

Get a feel for what's on offer across the wide range of financial providers around these days. Credit unions, building societies, mortgage originators, community banks and boutique online or telephone banks may offer better interest rates or lower fees than the big banks because they are anxious to win new business or they are non-profit organisations.

17. Try lenders with whom you are a regular customer

Take advantage of the human factor. Being a familiar face may earn you some slack if your credit background is smudged.

18. Understand what's on offer

Is the interest rate fixed or variable? What up-front, annual or ongoing fees are charged?

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Make Time For Your Financial Checkup

By Galia Gichon

Galia Gichon is the founder of Down-to-Earth Finance in the United States.

Make Time For Your Financial Checkup

When we examine our priority lists, our finances tend to be near the bottom. Yet, when we examine our “worry” list, finances are usually near the top.

There are three main reasons why we don’t make finances a priority:

> lack of time,
> lack of money,
> lack of knowledge.
While all are valid reasons, making time for a financial checkup can help us sleep better at night and motivate us to meet our financial goals.

Did you know that so-called “high” planners — those that demonstrate a greater willingness to plan their finances — have a nearly 20% higher net worth on average than “low” planners?
Consider this tale of two savers: “Jenny” and “Phil.” Jenny saved $100 each month from age 25 until age 35, and then stopped. Phil started saving $100 each month from age 40 to age 65. Who had more at age 65? Jenny did — even though she stopped saving when she was 35!
Starting Down The Path

How many of us have wanted to start our own business for years, but are too nervous about losing a steady wage from an employer or have financial constraints that represent continuous obstacles to living our dreams?

Your dreams can happen. And you can make it happen in the short-term by taking a few key steps:

• set up an automatic savings account,
• refinance loans at a lower cost,
• plug the leaks in your monthly spending (do you really need that cappuccino every afternoon?),
• move your money into a higher-yielding savings (such as money market or ultra-short term bonds).
Design A Plan

When tackling a major financial challenge, such as saving for your retirement or getting rid of credit card debt, finding the time to design a plan can offer tremendous rewards. By doing any of the following you can begin to see the light at the end of the tunnel:

• learn the monthly amount to save for your retirement (check out an online calculator at a financial website such as www.financialservicesonline.com.au),
• examine your monthly spending (including annual expenses such as vacation and professional services).
You could start sleeping better at night before you know it!
Time, Money and Knowledge



Still worried about having enough time? Don’t.

Once you design your own personal financial health plan, you won’t need to monitor it every week. Simply schedule a checkup every six months. As for money, you can start saving and investing right away — even if you have no money saved.

To gain knowledge, if you aren’t motivating yourself, take a course, hire an advisor, or read a book. Make it a priority and get started now!
Consider these words of wisdom:
“Money is the opposite of the weather. Nobody talks about it, but everybody does something about it.” – Rebecca Johnson, in Vogue
“Never spend your money before you have it.” – Thomas Jefferson
“I'd like to live as a poor man with lots of money.” – Pablo Picasso
“This one step — choosing a goal and sticking to it — changes everything.” – Scott Reed

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Insurance: Why worry?

By Matt Davis

Matt Davis is a Money Tips Editor and a regular contributor to Money Tips monthly newsletters

Insurance: Why worry?

During our lives all of us are exposed to the possibility of a variety of risk events such as:

• Work accidents
• Major illnesses
• Death
• House fire
• Motor accidents
• Theft

While death is of course inevitable at some time, some of the other risk events may never happen. Also the likelihood of some of these risks occurring may be greater at particular stages of our lives. For instance most major road accidents involve younger people while most major illnesses occur with advancing age.
Also at different times of our lives our financial plans and our dependents are more vulnerable to the financial effects of the risk events occurring. For example a family with young children, a large mortgage and only one breadwinner would experience tremendous pressure if the breadwinner became incapacitated for one reason or another.
The following chart illustrates how some risks and their insurance remedies may assume more importance at different stages of our lives:

Concerns	Early Years		Midlife		Wind Down
	15-24	25-34	35-44	45-54	55-64	65+
Debts	*	***	***	**	*
Children		**	***	**	*
Spouse		***	**	*	*
House		***	**	*	*
Parents		*	*	**	***	*
Job Loss	*	***	***	**	*
Car Crash	***	**	*	*	*	**
Work Accident	***	**	*	*	*
Long Term Illness		*	**	**	***	***
Traumatic Illness		**	**	***	***	***
Type Of Protection Needed
	15-24	25-34	35-44	45-54	55-64	65+
Medical Services	*	**	**	***	***	***
Income Replacement	**	***	***	***	**
Lump Sum	*	***	***	***	***
Long Term Care			*	**	***	***
Property Replacement	***	***	***	**	**	**

HIGH IMPORTANCE *** 
MEDIUM IMPORTANCE ** 
LOW IMPORTANCE *
The chances of being able to accurately predict when a risk event will happen are very slight. Occasionally there will be symptoms of the onset of a disease but usually these things come out of the blue.
Therefore, if our finances would be vulnerable to the consequences of a risk event, it would be wise to protect ourselves and our dependents against those consequences. This can be done in a number of ways, from taking steps to ensure that we are not endangered through to purchasing insurance that would compensate for the financial consequences of the risk event occurring.
Here are five steps that can help to manage personal risk:


1. Identify the risks that you are exposed to now and in the future.
You should look at the risks that may affect your body or that of your partner, such as death, disability, illness and the need for long term care due to aging. And you should consider risks from theft, fire and other misfortunes relating to any property you may have.

Another risk that some readers may need to consider is the risk that someone may decide to sue you for a loss that they consider you have caused them. This can particularly affect professionals and tradespeople. Often having adequate Professional Indemnity Insurance is a condition of operating in a particular field but if this affects you, you should ensure that your cover is adequate against likely successful claims.


2. Analysis of Risks. 
The answers to the following three questions will provide a good basis for your risk management program:

• What is the potential loss if the risk event occurred?
• Who will suffer the loss?
• How likely to occur is it?

The way they can work is illustrated in the following example:
Bill and Sue are in their early 30's and both have good jobs earning $50,000 and $40,000 respectively. They are paying $15,000 p.a. on the mortgage on their house and are saving $20,000 p.a., half in superannuation and half in other investments. Sue is about to leave the workforce to start a family and they need to consider what would be the impact of any reduction of Bill's earning capacity.
The answers to the three questions could be:
If Bill was completely incapacitated, the family income could reduce to zero, they could deplete their savings and in the worst case they could lose their house due to their inability to continue their mortgage payments. As well as their living expenses they need to consider the impact of medical bills which could make the situation worse. The situation could be eased if Sue were able to go back to work.
They would suffer these financial consequences directly. They could face extreme financial hardship which, of course, could drastically affect their child's future prospects. If Bill were to die he would not feel the financial effects himself but Sue would have to cope with the double whammy of financial disaster and grief at his loss.
In this instance, too much hangs on one person's health for it not to be vital to insure Bill against death and disability and to have good medical insurance for the whole family. However, his family medical history may give some pointer towards the need for particular protection.
Of course this is only one of the risks of death that this family is exposed to. They would also need to analyse the implications of any misfortune that could befall Sue. If she were to die or be disabled with a young family, the last thing Bill would need on top of his grief would be the extra financial costs of housekeeping and raising the children.


3. Reduction of Risks. 
This is the process of doing something that will reduce the likelihood of a risk event happening. Again a set of three questions can be asked:

• What precautions can be taken?
• Are the precautions reasonable? (remember you have to live and
  enjoy your life).
• What will be the benefits of taking the precautions? These could be
  reduced insurance premiums or other side benefits.

Often simple precautions like installing deadlocks or always locking the car can reduce the likelihood of loss quite considerably. And reducing weight, eating healthy food and giving up smoking can reduce the likelihood of early traumatic illness. You might even find that some of these actions (e.g. giving up smoking) can make your insurance cheaper too.


4. Consider Retaining Some Risk
It could be that the cost of obtaining protection might outweigh the benefits. Or the likelihood of the risk event occurring is very slight or its cost could be easily afforded. In these instances it may be prudent to retain the risk yourself, to self-insure.
Decisions on retention should not be taken until the previous three steps have been completed. It is also vital that we don't underestimate the consequences of the risk if we decide to self-insure. Remember we can't go back and tidy up once the event has happened. It is therefore prudent to get expert advice before taking this option.
However once a risk is identified, analysed and reduced as much as possible a rational decision to self insure may be considered. The questions to ask at this stage are:

• If the event does happen what will be its financial impact? (can
  you afford it?)
• Can you afford the insurance premiums?
• Can part of the loss be afforded?
• Do the premiums represent good value?

5. Buy Protection Against the Financial Consequences of the Risk Event
When you have decided it would not be prudent to carry the financial consequences of the risk yourself you need to purchase appropriate insurance protection. This transfers the financial consequences of the risk event to the insurer and to compensate them for taking on that risk you pay them a premium.
The act of buying insurance does not reduce the likelihood of the risk event occurring but it does mean that the financial consequence is removed or reduced. In our earlier example, insuring Bill's life for a large amount will not reduce the likelihood of his death but it does mean that if that unfortunate event was to occur Sue and the family could cope financially.
The range of insurance cover that can be purchased is extremely broad. Cover for just about every conceivable risk is available. Some policies cover a number of related risks while others are very specific covering only the financial consequences of a very particular risk event. Some risks are covered by the policies of a number of insurers while for other more specialised risks only one or two insurers provide cover.
Different insurance policies provide a wide variety of different benefits which may include:

• A specific lump sum of money.
• A lump sum of money plus bonuses related to the company's
  investment performance.
• Cost of replacement of or repairs to a damaged or stolen item.
• Provision of a stream of income
• Meeting all or part of defined medical expenses.

Sometimes your premium will just buy cover for a particular period of time, at the end of which you have to renew your policy. In other instances the premiums are regular and may even have a savings/investment component built in.
Because the range of insurance on offer is so wide, you should shop around before you purchase. First you should find the policies on offer that cover the risks you need covered. Then you should read the policy to make sure that there are no exclusions relating to a particular risk you might face.
Also check that the benefits are in a form that will be appropriate should the risk event occur. And lastly you should look for the most cost effective of the products that would cover your particular risk need.
This can be very complex, so most people find it is very useful to purchase their insurance from an expert with specialist knowledge in that.

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