How Credit Repair Works

With personal debt at an all-time high, a number of individuals have found that they have overextended themselves and have become immersed in debt. As their debt grows, they can't help but get more and more behind… and their credit score pays the price. If you are one of the many who have had problems with your credit in the past (or still have problems with it), you may be considering credit repair as a way to get back on track.
Before you sign up for a credit repair plan, you should make sure that you understand exactly what is involved in repairing your credit score… while there are a lot of credit repair agencies that are legitimate, there are also some that seek to prey on those who need help and perform services that are both immoral and illegal.
What Credit Repair Is
Obviously, the goal of credit repair is to improve your credit score and get you back on track financially after past credit problems. A variety of credit repair services exist, providing everything from credit counselling and debt negotiation to debt consolidation loans and budgeting advice.
When used properly, credit repair services can not only help you to get caught up with your bills and on the path to a better credit score but they can help you to avoid bankruptcy and set you up to avoid credit problems in the future.
Credit repair takes time, however, and should never be viewed as a “quick fix” for your credit.
If an offer claims that they can instantly grant you new credit, then it's likely not only bogus but can also get you into legal trouble if you accept it.
Common Types of Credit Repair
As mentioned above, credit repair can take several different forms. Credit counselling services provide assistance with the budgeting and repayment of your debts, and offer advice on simple ways to improve your credit without additional loans. They also often provide debt negotiation, which is the working out of a settlement with your creditors so that you only have to repay a portion of your original debt within a certain timeframe.
Debt consolidation loans are also used for the purposes of credit repair, allowing you to take out a loan in order to pay off outstanding debts and leaving you with a single monthly loan payment instead of several different payments.
Budgeting assistance services are also available to help you get control of your spending and personal finances.
Avoiding Credit Repair Scams
Unfortunately, there will always be unsavory individuals who seek to make money off of those who are in need of assistance.
Any credit repair service that promises instant results or that offers to simply create a new credit report for you should be avoided… what they're really creating is a business tax identification number, and any individual who uses one is in danger of being charged with fraud and possibly other charges.
Credit repair takes time; if an offer sounds too good to be true, then it likely is.
Repairing Your Own Credit
Of course, by paying off old debts and establishing and maintaining new lines of credit you can begin the process of credit repair yourself.
Request a copy of your credit report and check it for errors, and then focus on clearing the debts that appear as negative reports.
It may take years for all of the negative reports to expire, but by preventing new ones while increasing your positive reports your credit score will slowly rise on its own.

BAD CREDIT PERSONAL LOANS

At some point during most peoples' lives there comes a time when borrowing money is the only option. This may be to buy a house, a car, for home improvements or simply to consolidate debts. Persuading financial organizations to lend money, especially large amounts, is easier for some customers than others. Those who find borrowing particularly difficult are people with a bad credit history. Bad credit includes County Court Judgments (CCJS), decrees and past credit history problems. However, not all is lost is for people with bad credit, for they can avail bad credit personal loans. Never hear of it! Do not worry; we will tell all about bad credit personal loans. A bad credit personal loan is like any other personal loan that one might have availed of in the past. The only difference is that it is for those people who have a bad credit, or in simpler terms, people with a bad ‘credit history'. There are numerous lenders who are ready to give a personal loan if one has a bad credit history. These lenders however, usually require the customer to own their own home as protection or mortgage. Repayments are calculated depending on the amount of money required and the length of time the loan would be required for. For example, the longer the loan is borrowed for the smaller the payments are, but the more interest the customer will pay. It is therefore essential, as the home is used as a guarantee, that the borrower is certain that the repayments can be met before an agreement is made. Some lenders may consider one's credit rating through agencies before sanctioning a personal loan but that in most cases is a formality. Do not forget that they are there to give loan to people with bad credits only. However, if one has a very bad and unimpressive record in the past, he may be refused but that happens in only exceptional cases and surely, he can get his loan from some other lender. Rate of interests in bad credit personal loans may be high at times because they are being given to someone with a bad credit. That is the only disadvantage of otherwise a life-saving loan for many. On the whole, bad credit personal loan is a boon in disguise for people with bad credit and may do wonders for them by rejuvenating their businesses or consolidating debts.

Locating a Bad Credit Mortgage

If you are looking to purchase a home or refinance the one you are currently living in, but believe this may not be a possibility for you because you have bad credit, think again.Just because you have bad credit does not mean you will not be able to receive a mortgage. In fact there are many lenders out there across the United States that are know as wholesale lenders that specialize in lending money to people with bad credit.The names of these wholesale lenders may not ring familiar to you because they are not the typical lending institutions you see on the street corners of your town, otherwise know as banks.The first thing you will need to do is locate a few of these wholesale lenders and shop around for a deal you believe to be fair. If you do not have success finding these lenders on your own, you may want to consider using a broker and have them shop around for you.A broker is not a lender. What they do is assess your situation, than shop around for a lender that deals with bad credit mortgages.Brokers have access to hundreds of lenders across the country and they can usually find one that has a program that may fit your needs.Using a broker may not be such a bad idea, they are usually very experienced in their field and will not only find a bad credit mortgage lender for you, they will also council and educate you along the way.Keep in mind, just because your credit may be less than perfect, does not mean that you are at the mercy of the mortgage companies, you are not.Mortgage companies are very competitive, especially among the wholesale lenders, so be sure to shop around. Don’t limit yourself to contacting only one broker, say no more than four. Allow for each to assess your situation, than base your consideration of which one you will use on the rate and program that they offer you. Good luck.

A Few Thoughts on Securing a Bad Credit Mortgage Loan

Over spending, the endless nights of partying, eating out and more or less buying everything on a whim, has most likely put a dent in your financial situation and will affect how you live your life for years to come. Clearly, the best option is to dampen your lavish lifestyle sooner than later.Alleviating yourself from huge credit card, as well as other head-spinning debts by assessing your options now, before all those debs start blowing up in your face is one way to right your financial ship. One plausible option is a bad credit mortgage loan, and it's a good first step towards a more financially disciplined lifestyle. In other words, a financial second chance.Unfortunately, many people have a hard time facing the reality of their current financial situation and they foolishly think they can go it alone. Fortunately, today's credit markets have geared many of their programs for people just like you and they are more than happy to assist you with your financial woes by doing anything and everything possible to assist you in securing that much needed mortgage refinance to get you back to financial solvency.First, be honest, how bad is your current financial condition. And remember, you need to face the facts honestly and stop playing games and don't let the possible embarrassment of having other's poking through your financial records deter you. You current financial situation if water over the dam, there's nothing you can do about the past so put it behind you and start making the right decisions from this point forward.Rest-assured the individuals you will be working with are professionals who want nothing more but help you because it's in their financial interest as well since most loan officers work on commission if they can't find a way to help you they don't get paid. The system is built around vested interest and so if it's possible to help you they'll find a way. But before you actually take that big leap in to actually applying for a bad credit mortgage loan for yourself, try your best to actually arm your self with (more than) enough information to actually guide you through the debt restructuring process.First, don't be intimidated by the process, it's really not that complicated. More often than not, people allow themselves to get overwhelmed, so take a deep breath, do a little research on what's available and don't be afraid to ask questions or to simply walk away from a deal that you feel isn't right and go down the street or apply online at another lender.Bad credit mortgage loans are readily available but only if you are willing to get out there and put forth a little effort to dig around and find the right lender with the right program for you. Be will to have your financials thoroughly assessed by your creditors and lenders so they have the information they need to do their job, which is clearly to come up with a bad credit mortgage loan that is well suited to your means and capabilities.Just remember that just because you may qualify for a bad credit mortgage loan, does not necessarily equate with you being off the hook. That's simply the beginning to changing your spending habits and approach to money so that a few years from now you can look back at your current financial situation as learning experience that propelled you to a higher level of financial responsibility. Approach this situation correctly by making the necessary changes and you should also be able to look back and realize that it was the wakeup call you needed and possibly one of the best things that's ever happened to you.

Do You Need Bad Credit Help

Are you one of thousands with nocredit and no collateral to help secure approval, or you justhave extremely bad credit and no one wants to help you, and allyou hear is stories and more stories?Bad credit is a term used to describe a poor credit rating.Common practices that can damage a credit rating include makinglate payments, skipping payments, exceeding card limits ordeclaring bankruptcy. Bad Credit can result in being deniedcredit. Bad credit can result in a negative rating from the creditreporting agencies. Many factors can contribute to someonegetting a "bad credit" rating, among these are non-payment of anaccount or late payments over an extended length of time.Whether non-payment of an account is willful or due to financialhardship, the result can be the same, a negative rating whichwill result in a low credit score. However, lenders are morewilling to work with individuals if the person contacts thelender to let them know they are having problems meeting theircommitment to pay. 100% Online Debt Relief! No Phone Calls! Youmust have at least $2,500 of total debt over two or moreaccounts to qualify for our Help. Name, email, and Zip Code arerequired. US Residents only. No phone call required - allcustomer interaction is done online!Christian Debt Consolidation Services Professional DebtConsolidation with a Christian perspective. Lower monthlypayments. Reduce or Eliminate High interest rates. Apply now fora FREE NO-OBLIGATION QUOTE!Fast Loans Online by DrCredit We are currently able to provideauto loans, mortgage loans, debt counseling, home equity,refinance loans, debt consolidation loans, personal loans andmuch more...A credit score is defined as a statistical method of assessingan applicant's credit worthiness. An applicant's credit cardhistory; amount of outstanding debt; the type of credit used;negative information such as bankruptcies or late payments;collection accounts and judgments; too little credit history,and too many credit lines with the maximum amount borrowed areall included in credit-scoring models to determine the creditscore.Raising your credit score is possible. It's a well known factthat lenders will give people with higher credit scores lowerinterest rates on mortgages, car loans and credit cards. If yourcredit score falls under 620 just getting loans and credit cardswith reasonable terms is difficult.Here are five things that you can use to raise credit score.1. Correct obvious mistakes.Your credit score is what shows up in your credit report. Reviewyour reports from all three credit bureaus for accuracy once ayear as well as several months before applying for a loan.Changing a mistake on your report can take 30 days to threemonths, or more. Get Your credit report from the three majorbureaus: Experian, Trans Union and Equifax. 2. Pay Your Bills On TimeYour payment history makes up 35% of your total credit score.Your recent payment history will carry much more weight thanwhat happened five years ago. Missing just one payment on anything can knock 50 to 100 pointsoff of your credit score. Paying your bills on time is the best way to get startedrebuilding your credit rating and raising your credit score. 3. Reduce your credit card balances.A heavily weighted factor in your FICO score is how much moneyyou owe on your credit cards relative to your total creditlimit. Generally, it's good to keep your balances at or below 25percent of your credit card limit, said Jeanne Kelly, founder ofThe Kelly Group in Brookfield, Conn., which helps clientsimprove their credit scores.4. Don’t Close Old AccountsIn the past people were told to close old accounts they weren’tusing. But with today's current scoring methods that couldactually hurt your credit score. Closing old or paid off credit accounts lowers the total creditavailable to you and makes any balances you have appear largerin credit score calculations. Closing your oldest accounts canactually shorten the length of your credit history and to alender it makes you less credit worthy. If you are trying to minimize identity theft and it's worth thepeace of mind for you to close your old or paid off accounts,the good news is it will only lower you score a minimal amount.But just by keeping those old accounts open you can raise creditscore for you.5. Avoid BankruptcyBankruptcy is the single worst thing you can do to your creditscore. Bankruptcy will lower your credit score by 200 points ormore and is very difficult to come back from. Once your credit score falls below 620, any loan you get will befar more expensive. A bankruptcy on your credit record isreported for up to 10 years. The reality of a bankruptcy is it will limit you tohigh-interest lenders that will squeeze out high interest ratepayments from you for years. It is better to get credit counseling to help you with yourbills and avoid bankruptcy at all costs. By getting creditcounseling instead of declaring bankruptcy you can raise creditscore over a much shorter period of time.

Get an Auto Loan the Smart Way

Did you know that most people pay hundreds or thousands of dollars more on auto loans than they have to? Get an auto loan the smart way. Read on.Most people really get taken for a ride on their auto loan. Did you know that differences in the total cost of different auto loans can run into a thousand dollars or more? Here’s how you can get the lowest rate:*Make a list of different auto loan lenders and their interest rates and terms, before you go to the dealer (the web is usually the easiest way to do that). Did you know dealers get a commission on the loans they refer? If you’re not careful, that extra bit of money for the lender could mean you pay a higher rate than you would if you got the loan yourself.*Get a credit report and figure out your FICO scores. Removing any incorrect negative information from your report will help you get a better deal. Knowing exactly what your score is will help you figure out what interest rate you can realistically get.*Have bad credit? Try going to your credit union, bank or another institution where you have a relationship. Lenders like to help out established customers. If your bank still won’t help, online "bad credit auto loan" lenders usually offer better less expensive loans than dealers who advertise their great deals for people with poor credit.*Use a vehicle loan calculator. It will tell you what your loan will cost each month. It saves you the time of looking at vehicles you can’t afford, makes you aware of what information you’ll need to apply for a loan, and is a "reality check" of your financial condition.*Comparison shop, comparison shop, comparison shop. You don’t get the least expensive car by choosing a dealer at random, and you won’t get the least expensive auto loan that way, either.Start researching your options now:Get credit reports and FICO scores here:Use this vehicle loan calculator:Comparison shop among these lenders:

Beware Of Bad Credit Payday Loans

Could bad credit payday loans be the answer consumers with lowbank accounts have been looking for? Is there any harm in usingthese services? Aren't they better than using credit cards orgoing hungry?Have you seen the commercials? Cute characters promise financialprosperity. Happy, professional individuals appear to regularlyvisit their corner pay day loan shop as proudly as cashing acheck at the bank. Customers at the grocery store all recommendpay day loans as the easy solution for a lack of funds. WHY USE A PAY DAY LOAN? Some individuals reason that paying a bill with borrowed moneyis better than receiving bad credit marks because of not payingthe bill. This is understandable. However, some financialinstitutions are willing to make the occasional exception ifcontacted about the situation. Or there may be a small fee, butnot a credit report made. Using it for groceries or other items? Consider the true costbefore making a decision. Compare the cost of using a pay day(or cash advance) loan to the fees charged for taking a cashadvance on your own credit card. Can family help? Often thosewho are forced to use pay day loans are not able to repay theloan by the next pay check and that can lead to a cycle of debtand stress. WHAT IS THE COST? Several sources, including a consumer report by the FTC (FederalTrade Commission) and the CFA (Consumer Federation of America)state that usual the usual APR is between 350 - 650% with someas high as 780%. A loan of $100 ranges in cost between $15 - $30. If the loan isnot repaid by the pay date then it can be renewed with anotherfee due at each renewal. A loan of $100 can cost $60 in feesafter 3 renewals. WHO BENEFITS? Based on the warnings issued by federal and consumerorganizations it is clear that using pay day loans or cashadvances from these businesses can often lead to more debt andproblems. Some sites were reported to automatically roll overthe loan and only withdraw the renewal fee on the pay date.Other sites surveyed by the CFA required customers to agree incontract to not participate in class action suits or to file forbankruptcy. For those who are having debt problems it is recommended to seekno- or low-cost credit counseling from a local non-profitorganization. These organizations can help with reducing currentinterest charges and lowering monthly payments. If the problemis budget, you should look to a financial planner who can helpyou to manage the money you do have and avoid using credit atall.

How do commercial debt reduction companies work?

Don’t stress it – commercial debt reduction companies are proven authorities in debt negotiation to reduce your commercial debt in the best way possible for you, especially when you’re least interested in the worst alternatives like Chapter 11.The best debt negotiation companies are there for your small business or medium-sized company - the size of the companies involved is never an issue to these debt negotiation professionals. The heart of the matter is debt reduction to take your commercial debt through rough patches including recession that creates those limited dry spells in your cash flow. Debt Negotiation Will Reduce Your Debt And Save Thousands Off Your Commercial Debt!You know what’s best for your business or companies – and debt reduction companies know best how to get your business back on track. Companies across the country have chosen a debt reduction program to effectively structure their commercial debt.Your debts can seem like an insurmountable obligation – and the most frustrating thing with commercial debt is that as hard as you work to succeed, your supplier companies demanding payment – or even larger factors like a bad economy - create bad credit issues that can be completely out of your control. You know you offer one of the best products or services in the marketplace, and all you need to do is reduce your commercial debt, re-establish your credit rating and get your business back on track. Debt reduction companies understand your hard work and best efforts, so you can depend on qualified counselors, CPA and legal pros in debt negotiation and debt reduction to put your debts on the firing block.

Banking Software: Do You Need It?

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.

Credit Damage: Getting Compensated for Your Loss

Until recently lawyers for victims of credit damage had little possibility to collect for damages beyond medical treatment, lost wages and property loss. Insurance companies threw up their hands in sympathy, claiming victims can only be compensated for what can be measured — tangible goods and services. But, what happens when the victim has lost considerable time from work, the family bank is broke and monthly payments on mortgages, car loans and credit cards payments are missed? Regardless of the haggling between lawyers and insurance companies, it’s the credit victim who ends up having to live with a bad credit rating. Today, there are legally accepted means for measuring loss of credit through the procedure of Credit Damage Measurement (CDM). CDM is fast becoming a potent tool for recoverable credit damage awards when the damage is not self-inflicted. Previously, both judge and jury, and especially the insurance companies, refused to acknowledge CDM claiming it was speculative because they could not define it as tangible damage. However, in case after case, victims of credit damage who use the CDM method are getting compensation for credit loss. Many factors are changing the old mindset including credit bureau technology improvements, the application of the Fair Credit Reporting Act (FCRA), risk scoring sophistication, and the development of CDM as an objective, repeatable method that measures out-of-pocket damage reliably. Credit Ratings and RecoveryThe impact of a bad credit rating is much more significant than most people think. Consider what poorly rated consumers face when they want to lease or buy vehicles, obtain credit cards, buy or lease or refinance their residence. In most cases, it’s an easy decision for the creditor: the credit application is simply turned down or the borrower is charged a much higher down payment – maybe thousands of dollars more with monthly payments that are typically several hundred dollars more. “A person with bad credit is viewed with suspicion and is charged significantly more for future extension of credit because the lender feels the need to protect against a greater risk or default,” says Tom Key, a civil litigator practicing in Tustin, CA. “Over the years I have heard reports of financial damages from clients who have been wrongfully terminated, defrauded, injured in an accident or suffered losses from breach of contract,” Key says. “These victims were especially distraught over the fact that their prime credit reputation, carefully nurtured for years, is destroyed overnight. It seemed to me that there must be a way to compensate victims for that type of loss.” Key has witnessed the reactions of many jurors who failed to award a victim of credit damage their rightful compensation simply because they could not quantify the damages. “Jurors want a specific loss that they can count, hold and see,” says Key. “Their reasoning is that they need to know that it is genuine. They have a tough time awarding damages based on sympathy. In order for them to confirm authenticity of a claim, they want to see its quantification.” Measuring Loss of CreditworthinessAssuring authenticity has been a sticky situation when it concerns measuring out-of-pocket loss for victims of credit damage — until now. Attorneys who represent victims of credit damage are now utilizing the Credit Damage Measurement method to recover out-of-pocket losses for their clients. “CDM measures the actual out-of-pocket dollars reasonably expected from loss of creditworthiness, which includes higher down payments, higher points and costs on loans, higher interest rates, higher monthly payments, or outright denial of credit,” says Key. “In addition, the CDM method also calculates the rates, costs and other terms applicable to the resulting credit rating by lenders and projects the results over the relevant number of years for the types of loans the client is likely to seek.”Key continues, “For example, if a client’s credit was near perfect before a triggering event, and is subsequently damaged by the event, the CDM procedure can illustrate before and after analyses, calculating the cost of the same loans with the two different credit reports, Pre- injury credit compared to Post-injury credit.” In many cases, CDM clients have already realized significant compensation. In one such case CDM was instrumental in recovering $56,000 for damaged credit reputation. “That calculation is the difference between what refinancing a $140,000 loan would have cost my client with their prior rating, and what it will cost them out-of-pocket with their damaged credit rating —measured over a seven-year period.”Isolated Compensation vs. Repeatable CompensationThe CDM method of measuring intangible credit loss is increasingly becoming the basis of recovery for victims of credit damage. It’s changing the way judges and juries measure recoverable out-of-pocket loss, and then can compensate for loss of credit expectancy. Certainly there are still some skeptics, mostly defendants. Technically, credit damage measurement is intangible. However, CDM has proven an objective and practical procedure to calculate out-of-pocket damage for companies or families to compensate for their credit damage.“To have this kind of measurement is an exciting complexity in our society,” says Key. “CDM is very understandable and a rather simple way to come to a conclusion of loss for the victim. If you understand the math and are an expert at reading credit reports, the calculations and recovery are undeniable. It’s a method of turning isolated compensation into repeatable compensation. It’s changing the way jurors rule on these damaging cases. Because of this method, victims of credit damage can be more fairly and more completely compensated for out-of-pocket damage.”

There Are Tons Of Small Business Grants For Womwn...But Where?

When starting a small business it can be costly, and finding agrant if you’re a women isn’t always the easiest thing to do. Little do most people know, there are millions of dollars justwaiting to be claimed for grants from the government and otherlittle-known organizations. It can be very difficult to findthe right grant for you, and the place of where to get it, butwith a few clicks you too can easily get access to smallbusiness grants for women.It is not a secret that women are beginning to own more and morebusinesses everyday. Not only this, but these businesses arebecoming just as successful if not more then men’s businessesare. If you are looking for a grant, don’t be hesitant to lookbecause of what the business is going to be. There areliterally hundreds to thousands of grants out there for womenwanting to start craft businesses, consulting, brokerage, recordlabels and more.When looking for a grant, there is the option of spendinghundreds of dollars to pay somebody to get you a grant. However, there are other ways that are completely free, but maybe more time consuming then you would hope. One site that isworth checking out is The Ladies Club 2000.com. It is requiredthat you sign up and become a member, free of charge, but thenyou will have access to grant information on how you can becomequalified for a grant and where you can find grants to beginyour business or increase your business.http://www.theladiesclub2000.com/grantsforwomen.htmThere are all kinds of companies out there, and the type ofgrant that you will receive varies for place to place. Onwomens-finance.com, there are two different kinds of grantsoffered. There is the New Business grant that is between $100and $5,000, and there is the existing business grand that rangesfrom $1,000-$5,000. You do have to apply at this site and beaccepted, but it is worth checking this site out below:http://www.womensbusinessgrants.com/It may not seem like it, but our government does want you tosucceed, and that is why there is millions of dollars out therefor you. Most places have ridiculous requirements in order toget a grant such as being over 65, being a minority, or evenhaving bad credit sometimes help the process.There are sites out there that are specifically looking forwomen only to give grants to. These sites are attempting tohelp the women population succeed in entrepreneurialism andbegin the road to succession. The site listed just below herehas a list of about ten different sites that are specificallylooking for women to give grants to.http://www.womanowned.com/Growing/Funding/Opportunities.aspxThere is no reason to get frustrated after not having any luckfinding loans. The government wants you to succeed in openingyour small business, or help develop it that much more. Thereare a few sites listed above that are very much worth checkingout to help you find small business grants for women. Don’t getdiscouraged as this can be time consuming, but once you find thefinancial help needed, you will be on your way to developingyour business.

Seven Cs to Avoid Procedure Writing Errors

You do your best to make sure your organization is operating as effectively as possible. But if your policies and procedures are incomplete, outdated, or inconsistent, then they are not driving the performance improvement they should. When employees try to use incomplete or undefined procedures, waste and costly errors soon follow. Case Study: Procedure Mistakes Add Up Quickly Without knowing it, employees at a local auto parts company were having a costly problem determining when to accept customer credit. The company actually had a detailed credit application procedure, including an exhaustive error correction routine, but the procedure had one fatal flaw: it was not properly indexed. Indexing Improves Procedures Usability Without a way to readily locate and reference the applicable procedure in the operations manual, employees could not find it and were simply not using it at all, leading to an inconsistent process and wildly varying output. Potentially valuable customers were regularly turned away by some staff members, while others accepted bad credit risks because they were unsure of which ones to reject. A small omission like this can add up to thousands of dollars in lost sales and good will. Even the most thorough procedures inevitably have gaps that come from being "too close" to the process or not following the basic rules of effective procedure writing. Profit from Process Experience To be effective, procedures must be action oriented, grammatically correct, and written in a consistent style and format to ensure usability. These guidelines, along with industry "best practices" that are documented in auditable criteria, can be used to improve your procedures: 1. Context. Actions must properly describe the activity to be performed. 2. Consistency. All references and terms are used the same way every time, and the procedure must ensure consistent results. 3. Completeness. There must be no information, logic, or design gaps. 4. Control. The document and its described actions demonstrate feedback and control. 5. Compliance. All actions are sufficient for their intended compliance. 6. Correctness. The document must be grammatically correct without spelling errors. 7. Clarity. Documents must be easy to read and understandable. Quickly Improve Your Policies and Procedures without the Hassle You can quickly resolve these usability problems and improve performance, and also upgrade your documentation to "best practice" standards without hassles or commitments. By beginning to improve your documents, you will be able to identify areas for improvement. And you can start today with the 7 Cs of “best practices”.

Applying For A Credit Card With No Credit History – Tips You Need to Know

Oddly enough, not only will bad credit work against you when applying for a loan or a credit card, but no credit will too. Even though this doesn't seem fair, it is the way things work in the complicated world of consumer credit. Lenders are leery about opening accounts for people with no credit history because they simply have nothing to base your reliability on.So, if you can't build a credit history without credit and you can't get credit without a credit history, just what has a person to do? It's nearly impossible to rent a car, stay in a hotel, or shop online without a credit card, so let's explore a few of the options that can eliminate this Catch-22.Available Credit OptionsAlthough many of the major credit card companies won't give you a card without a credit history, some smaller ones, like department stores, will. Find a department store that will issue you a card and apply for it. You can try getting a gas station card also. Either way, use your card but be sure to make all payments on time. Your goal is to build a good credit history, not just get a credit card.Find a credit card company that will review your overall financial situation and not just your credit history. Some lenders will look at your employment history, your housing situation, and how often you have moved. If this is all on the up and up, they may approve your application. Again, use this card wisely.Credit UnionsIf you are a credit union member, or are eligible for membership, see what their card issuing terms are. Although they are no giving out cards with their eyes closed, they will often have more relaxed conditions for members. You no longer have to work for a specific company to be eligible to join a credit union. So it's well worth checking if there's one in your area.Secured Credit CardsSecured credit cards are offered by lenders who will give you a line of credit that either matches, or is slightly higher than, a cash deposit that you give them to hold. As your experience with the card grows, these lenders will often raise your limit without requiring you to increase your deposit. Eventually, you can use your experience with this lender to apply for cards that are not secured.Student Credit CardsIf you are a student, then you'll be best off with a student credit card. Student credit cards can be a great way of building the credit history that you will need to depend upon after graduation. The important thing here is to remember to use that opportunity wisely. Many banks will issue college students a credit card, especially banks that are located in college or university cities and towns.When you do manage to get a credit card, remember that you are establishing a credit history. Show that you are a good financial risk by paying the bill on time. Don't go crazy with the spending. It will only cause you problems in the future.

Government Grants - What are they and how to get them ?

None of these Government Grants require a credit check, collateral, security deposits or co-signers, you can apply even if you have a bankruptcy or bad credit, it doesn't matter. Its Free Money Never Repay! The Federal Government is Giving out over 155.5 billion dollars in Business Grants!Receive Government Small Business Grants for virtually any type of business. Whether it is to start a business or expand your existing business there is money for waiting just for you. The Federal government provides this money to help existing small business owners and those who want to start their own business change their lives and achieve financial independence.The United States Government wants your Small Business to succeed and you will be amazed at the lengths they will go to help ensure your success. At Grant Seeker Pro™ we have designed a State of the art software program that will aid you in locating the perfect grant or grants for your small business!Once you find the programs for Small Business Grants that fit your needs you can use the Grant Seeker Pro™ software program to complete the applications! Don't forget to use your Grant Seeker Pro™ to complete your business plan also!Facts About Government Business Grants:# Over 20 million people gets Government grants every year# Over 10 BILLION dollars for entrepreneurs in the form of Low Interest Small Business Loans. # 4,000,000 people get money to invest in real estate!# Did you know that if every business in America were to apply for and receive an equal share of Government Small Business Grants that each and every business in this great country would receive a $70,000 free cash grant? # Did you know that H. Ross Perot has received Government Small Business Grants?# Did you know Paul Newman has received Business Grants.# Did you know Donald Trump has used Small Business Grants to fund many programs.# Most recently the airlines have received Billions in grants to make sure they stay afloat through these troubled times.Learn about complicated Tax Refunds or Tax Credits. These are programs largely overlooked by the Small Business owner. At tax time these special incentive programs can (depending on the size of your business) save you tens of thousands of dollars!In spite of the perception that people should not look to the government for help, the great government give-away programs have remained so incredibly huge that if each of the approximately 8 million businesses applied for an equal share, they would each receive over $70,000. Thought Affirmative Action was dead? If you did you thought wrong. Though many of the catch phrases are no longer in use most of the money that was available still is.Every year Congressmen and Senators make promises to the people that put them in office. Many of those promises are made to minority groups in specific areas but most are made at a National level.There are also Reserved Free Government Cash Grants now available for the following special interest groups. American Indians, Veterans, Family Members of Veterans, Low Income Families, Community Block Grants, Non Profit Organizations, First Time Home Buyers, Artists, Musicians, Nurses, Teachers, Researchers, The Disabled, People Suffering From HIV and AIDS, Substance Abuse. There are literally Millions Available; All you have to do is ask! Can You Imagine receiving:One Billion Dollars in Minority Business Grants for business start up!Millions in Minority Business Grants to expand your existing business!Receive $8,000 in Minority Grant for Free Legal Advice!Millions Available In Minority Grants for the purchase of your first home!Receive $75,000 Housing Grant to Remodel Your House!Receive $6,000 in Minority Scholarship Grants for College Tuition!

Home Based Business Scams - Tips on Avoiding Them

Maybe the reason you're interested in setting up a home business is because you've seen an ad that perked your interest or you were approached by a friend or colleague about a great home business money-making opportunity and those entrepreneurial juices started to flow. Your imagination starts to flow and dreams of quitting your job fill your every thought.Hello, hey, ok... time to stop dreaming. I hate to burst your bubble or stop your fantasy ride but before you give your boss a piece of your mind there's a few things you need to consider.First, you need to realize that probably 99% of all home business / work from home offers out there are flat out scams. After all, if it was that easy to pay a few dollars and make thousands, wouldn't everyone be doing it by now and why tell you about it?Below I've listed and briefly discussed how to recognize and avoid a few of the biggest scams out there.Location… Location… LocationCheck out every offer and assume it's a scam until you have iron-clad proof that it's not. A few things to consider are: Where did you see that work from home offer? If you got it by traditional mail or by email or saw it on a poster taped around a telephone pole, then I can guarantee you right now that it's not a legitimate offer. On the other hand, if you saw the ad in a newspaper, in a jobs magazine or on a jobs website, then it's a little more likely to be legit - but not necessarily.Envelope StuffingWill this scam ever end? Well, not until people stop falling for it. This is the most established work-from-home scam of all time and it's been going on for what seems like forever now. How it works is that once you pay your money and sign up to work from home, you are sent a set of envelopes and ads just like the one you responded to. The whole idea is to simply get names of people who are interested in home business ops and get a quick buck. You could make a little money if you mail to the right mailing list but don't count it. Work from home offers like this are simply illegal pyramid schemes. You will not make money putting letters into envelopes - so get over it and move on!Shoddy SuppliesThe practice of charging for supplies is hard to pin down to any one scam - it's a common most work-at-home scams work (including the envelope stuffing scam mentioned above). You'll be asked to make a minimal "investment" for whatever materials will be needed to do the work and then you'll receive a collection of very shoddy materials that are worth a fraction of what you paid for them and last but not least you'll soon realize that there was never a market for work anyway.Don't walk - run… if anyone asks for money upfront. Any company worth it's salt would be willing to deduct any "fees" from your first paycheck. Any company not willing to do that, is in all likely-hood simply out to scam you into giving them some upfront money and then as the saying goes… "leaving dodge" as quickly as possible.Working for FreeThis variation on the scam is common with crafts. You might be asked to work from home making clothes, ornaments or toys. Everything appears to be legitimate - you received materials without paying any money and you're doing the work. Unfortunately for you, when you send the work back, the company will tell you that it didn't meet their "quality standards" and will refuse to pay you. They will then sell what you've provided and move on to the next sucker.Never do craft type work from home unless you're selling the items yourself. Remember, you don't need to restrict your sales to consumers only… you could also be selling to wholesalers. The bottom line is this, you need to be the one deciding what you make and then collect the money yourself.Medical Billing, Typing From Home and MoreMany work-from-home scams involve persuading you that some industry has more work to do than it can handle and so it has to outsource to people like you, working from home. For example, you might be told that you'll be typing legal documents or entering medical bills into an electronic database. These scams have one thing in common - they all say that all you need is a computer and they go on to explain that all you need to do to make big bucks is to buy some "special software". The software is package so it appears to be from a completely unrelated company, but don't be fooled - the whole purpose behind this so-called opportunity is to simply sell you the over-priced and worthless software. And of course, once you open and load the software on your computer you will never get your money back because that's how all software guarantees work. Once you break the seal you own it.Starting your own home based business is a dream that millions of people have and it's a legitimate and worthy endeavor. Unfortunately, the crooks out there know this and they play on these desires and so you need to be very cautious. And remember, starting a home business that involves "working" for another company isn't the best idea even if they offer a completely legitimate opportunity. The reason is because even if they do pay you for your work, you still won't earn anywhere near the income could if you were to start a home-based business where you created your own product or service. So why even bother with these outside companies at all?

Internet Marketing: Has Traditional Web Site Optimization (SEO) Outlived Its Usefulness

When it comes to internet marketing, traditional web site optimization (SEO) still stands as the holy grail, but an increasing number of small and medium sized business owners, facing the prospect of high SEO fees, are just now beginning to turn to an alternative promotional method that is generating consistent and quantifiable results at a fraction of the cost.LOS ANGELES, CA (PRWEB) September 17, 2005 - The cost of SEO, at least when it comes to highly competitive keyword phrases, is prohibitive for all but those with deep pockets."Matt Hocken, of Interactive Marketing, Inc., estimates that one can expect to pay upwards of $50,000 - $100,000 a year to secure top ten Google placement for a highly competitive keyword phrase like 'life insurance' or 'debt consolidation' and that's obviously out of the question for the small to medium sized business," Ron Scott, Fast Track SEOP's senior publicist reports.Even the cost for placement using less popular keyword phrases can be high."A Houston publicist recently paid $5,000 to get her website optimized for a small number of obscure keyword phrases that Overture reports are cumulatively generating fewer than 200 inquiries a month. Not told that 50-75% of those searches are being routinely conducted by webmasters, SEOs, and website owners checking the current status of their websites, she's now wondering if she'll ever recoup the expense," Scott says.So what’s the alternative? Pop-ups? Pop unders? Banner ads? Email? Not hardly.Unlike an organic search engine optimization program that can take months and even years to start showing results, internet press releases start generating interest the day they are published."A properly optimized and distributed press release will typically generate 50,000 - 100,000 actual reads the first week it goes on line," says Scott.According to Scott, unlike traditional press releases, 98% of all internet press releases are read by consumers and B2B prospects."Originally, press releases were the exclusive domain of the Fortune 500 and were directed to the mass media, but not any more. Small and medium sized businesses have discovered that they can deliver their messages directly to a broad (national or international) or highly targeted (local or regional) audience on the internet and, thereby, eliminate the tedious process of media placement," he says.Scott points out that the value of an internet press release promotional strategy doesn’t stop there."Press releases can also be optimized for organic search which enables those who find their newly published websites residing in Google purgatory, the opportunity to secure top ten rankings in a week or less," Scott says.To illustrate the value of the internet marketing strategy, Scott points to a release he prepared and distributed on behalf of a little known manufacturer in New Zealand."The first 30 calendar days, it generated 133,686 reads, drove over 25,000 visitors to their website, and generated 100s of inquiries from B2B prospects all over the world," he says. "Since that sampling taken at the beginning of June, the release has generated an additional 42,443 reads and a commensurate level of traffic and inquiries."It's the gift that keeps giving," he says.Has traditional web site optimization outlived its usefulness?"For most of our clients it has," Scott says.

You may have found the best advice regarding life insurance

You may have found the best advice regarding life insurance.
When you are trying to find top advice concerning life insurance, it will be easier said than done extricating superior advice from foolish life insurance suggestions and support so it is important to know how to judge the advice that is offered. Now we'd like to offer you some advice which we think you should use when you are trying to find information about life insurance. You need to understand that any recommendation we present to you is only pertinent to internet help on life insurance. We are unable to offer any guidance or advice for conducting research offline. A great hint to follow when you're presented with help or advice about a life insurance web is to verify the ownership of the website. Doing this could reveal the owners life insurance credibility The quickest way to work out who owns the life insurance web site is to find the sites 'about' page. Any worthwhile website providing information on life insurance, will almost always provide an 'about' or 'contact' page which will record the site owner's contact details. The details should divulge major points about the owner's skill and understanding. You can then arrive at a decision about the webmaster's familiarity and qualifications, to provide advice to you regarding life insurance.

Book Printing Press In The Present Time

The printing industry has changed immensely and the greatest proofs are imminent especially in book printing. In ancient times, only a limited number of books are published since very few authors are willing to write their books. You see books during those times are all hand written. Writing a book may take a year or so to finish. And of course we all know that handmade products are usually expensive so just imagine how much a book would costs during the ancient times. If the actual writing already poses a problem just think of the problem in reprinting the same book. But thanks to the development of printing technology more books and other printed materials are easily printed today. Aside from that, there are also other options that are available to improve the quality of each book printed. As much as there are so many types of books there also numerous book printers and publishers that offers varying costs and benefits. Book printing in its simplest sense is the method of having a book printed. But is it really all printing? Or is there something more to it that meets the eye? Book printing should never be confused with traditional publishing. Traditional publishing refers to the entire life cycle of a book starting off with the development of the book, then the creative design for the cover followed by printing, manufacturing, distribution and then the marketing of the books. Book printing is more of “your-own” publishing and printing scheme since you are the publisher and at the same time the printer of your own book. At present there is a vast number of book printing presses already used by publishers as well as book manufacturers. Nevertheless, there are also local print shops that offer book printing services. The difference between professional book printing and your local print shop lies on the quality of the output. Books that have undergone professional book printing press procedures are more superior in terms of prints and then the colors used are more impressive compared to the quality of books that are simply done by inexperienced local copy shops. An excellent choice of book printing company is one that takes the time to explain to its customers the benefits that may be derived from the technology in order to help their customers in correctly choosing the correct format, page count, ink type, colors as well as provide their customers with the quotes to help them with their budgets.

Build Your Own Insurance Business with InsureAmerica

The new website is part of the company’s aggressive growth and expansion plan to further extend its national reach.“We know we have a business opportunity and a system that health insurance agents and agency owners can be successful with. We just needed an avenue to express this,” states Dan Roberts, Vice President, Sales and Marketing. “The days of simple newspaper ads are a thing of the past. People want more information and want to know what you can do for them. This is what our recruiting site is about…the agents and what we can do to make them successful.”The website address, www.byoib.com, comes from the acronym of the phrase Build Your Own Insurance Business, which is the recurring theme of the website. InsureAmerica isn’t about selling health insurance. It’s goal is to also help others grow their own businesses.“Selling health insurance and running your own insurance office is a daunting task and at times agents can feel like they are all alone. Through this website we want to convey to potential agents that we are here to help them and that they are not successful because of us, but that we are successful because of them. We have people in our group that have built very lucrative businesses and enjoy helping others do the same,” says Dan Roberts, Vice President, Sales and Marketing.In addition to being able to see commissions and earnings information, potential agents can find out more about the products that InsureAmerica represents, the in-house lead program and company background.About InsureAmericaHeadquartered in Dallas, TX, InsureAmerica has been providing individuals and small businesses with quality health insurance for 17 years. The company has a nationwide presence with agents in 30 states. Insurance of America offers health insurance, life insurance and health savings accounts, among other products. All products are provided by A-rated or better carriers and endorsed by the National Business Association.

Why Is Small Business Health Insurance Worth It?

If you’re looking for a guide to how to get health insurance andwhat kind of health insurance is best for your small business,then this is the article for you. Your business qualifies forsmall business health insurance if you have anywhere between twoand fifty employees in it. If you are self employed then you’llwant to look into getting self employed health insurance.There are many benefits to getting small business healthinsurance. A small business health insurance plan will helpspread the financial risk around to everyone and not justyourself. As this is the case, this generally will bring lowerpremiums and more extensive coverage. Along with this, thehealth insurance provides medical care for you and all otheremployees as well.With a small business health insurance people often get groupinsurance. This too has its advantages on several differentaspects. All contributions from the employers are 100% taxdeductible, and you’ll save on payroll taxes as well. Smallbusinesses will be eligible for group insurance just as long asyou have two or more full time employees working.When setting up a group insurance plan for your small business,all members will be set up with a coverage plan with ratescalculated using the group and individuals. After that it is upto the separate employees themselves if they wish to add ridersand additional coverage to satisfy their needs. Keep in mindthat not all employees in the small business have to join thegroup plan. Just as long as there is no fewer then twoemployees in the business that have the group insurance plan,then you will be fine.The cost of the group insurance plan varies based on severaldifferent characteristics. Some of these include age, healthstatus, business and/or residential location and so on. Likeeverything in this world it’s not going to be cheap, but it willbe cheaper then having a bunch of separate health insuranceplans. Most health plans are going to require employees to pay at leasthalf of the premium cost for covered employees. Some employeeswill offer to pay 100% of the cost, white now there is a newhealth plan giving employees the option to pay as little as 25%of the cost. Just know that typically most types of coveragewill cost employees a minimum of $1,600-$2,500 per year peremployee. By clicking on the link below you can begin gettingquotes for your small business health insurance. http://www.buyerzone.com/benefits/health_insurance/qz_questions_2.jhtmlJust remember that many times medical services are neededunexpectedly. If you or other employees do not have healthinsurance this could be a devastating blow to the wallet. Thecost of a hospital visit, depending on the circumstance, willmany times be much higher then the cost of health insurance. You want to be able to live life knowing that you’re insuredjust in case the unexpected happens. Nothing hurts to at leastlook at some quotes and talk it over with other employees, butyou have the power to make the decision.

Newspaper Printing Transcending Time

Newspapers have been a remarkable part of human society way back some five centuries ago. Newspapers especially in Renaissance Europe are hand written and then privately circulated among merchants since the most common topics discussed are all about wars and then economic conditions that affect society. The first ever printed newspapers appeared in Germany in 1400 in the form of pamphlets or broadsides which are often times exaggerated in content. Its usual topic concerns German’s atrocities like the famous folklore about Count Dracula.The earliest predecessors of newspaper in the English-speaking world are called corantos which are small news pamphlets that contained noteworthy events. And the very first consecutively published newspaper was titled The Weekly Newes which was made available in the year 1622. Numerous newspapers of different titles also followed but they copied the format of The Weekly Newes. The first ever published true newspaper in English was the London Gazette which was distributed in the year 1666. This newspaper was officially approved among the vast number of periodical titles and lasted for about a century.The first newspaper printing press was used by Ben Franklin which was called the Ramage Press. This printing press was constructed entirely out of wood however there are also some parts that make use of iron. This printing press is now displayed at the National Museum in Washington. Another printing press was developed by Earl Stanhope but this time he created his printing press frame using entirely iron. For the power he combined toggle joint and lever. The quest for perfecting the printing press technology has continued to great parts of the world until the year 1850 to 1860 which showed great advancements in the presses. It was during these years that fast printing was developed to answer the ever increasing demands for newspaper. But there are some problems with the created presses and it has something to do with the plates used for the presses. However, this problem was solved in the year 1861 by the application of a steam bed that is used to dry a novel style of paper mache mold. This novel style of paper mache mold is use to make a stereotype replica of the type pages which are in the form of plates which are fitted around the cylinders. The process usually takes an hour or so to come up with a single plate. On the contrary the present day presses are capable of creating plates in minutes and has the ability to print on both sides of the paper while passing through the presses. The octuple machine is one of the most awaited printing press at present since it has the ability to fold and counts 96,000 complete 8-page paper per hour or 48,000 complete 16-page papers at sizes like that of the ordinary daily newspaper. Right now only one of this machine is placed in operation and can be seen in the printing room of the New York World.

What Factors Determine Term Life Insurance Rates

Term life insurance policies provide a limited coverage period, which is determined by the policy owner. Term life insurance rates are actually the cheapest form of life insurance, but there are different rates for different people. This is because once the term of the policy is up you don’t receive any payout from the policy. If you take out life insurance at a young age, you will get much better term life insurance rates than if you wait until you are older.The total cost of your term life insurance rates can be tricky. Some term life insurance policies appear to cost more, but may, in fact, be cheaper when you look at the total cost of the term life insurance policy. For example, annual renewable policies increase your premiums every year and thus may appear to be more expensive than level term policies where the premiums never increase (although the initial premiums for a level term policy will be higher). But, in fact, level premium policies may involve higher costs over the policy's full term, and become particularly expensive when you try to renew your policy at the end of the term. This is why you do have to compare term life insurance quotes.Some of the factors that influence your term life insurance rates are:· Whether or not you smoke. Tobacco users are twice as likely to die as non tobacco users while they are insured. Life insurance companies take this into account when they set their premium and cash benefits levels. You can save from 20% to 30% on premiums by quitting smoking. · Medical Record. If you have a terminal illness, it is unlikely that any life insurance company will issue a policy. In the case of heart disease, you will get a policy but your rates will be high· Occupation. if you work in a dangerous occupation, such as working on a ship that carries gas, this will put you into a higher bracket when it comes to getting rates for term insurance. You will have to shop around to compare term life insurance quotes if you are in this category. Term life insurance rates vary a lot, and you can do something about your premiums by taking some decisions to become more healthy, like giving up smoking.

Catalog Printing: A Subtle Way Of Seducing Customers

As a business grows so is its need for better and cost-effective advertising materials. One option that business owners may try to consider is catalog printing. Catalogs are not only known for its ability to effectively grab the attention of customer but it is also famous in terms of the convenience it brought its readers. Convenience in the sense that it can be easily browsed and especially when done in full colors can really left a mark on the minds of its readers. Catalogs are best option for businesses who may want to increase their sales. Another advantage derived in employing catalogs is that it saves the business time and money. There would be no need to employ separate advertisement materials for each product and services since everything are incorporated in a single catalog. The catalog will not only showcase products and services but will also show the prices as well as the individual description of each products and services. Customers are therefore provided with ample information that assists them in deciding whether they want to purchase or not. Catalogs also provide a source of future sales since customers who may not have at present the money to buy any of the products and services on display would tend to keep the catalog for future reference of any product and services they may want to purchase. The significance of catalogs in promoting business is undeniable that is why it is important to hire only the best catalog printing company there is. A well crafted catalog can tempt customers to take hold of products and services even if they don’t have a need for it yet. Professionally done catalogs are like nymphs seducing customers to indulge and take hold of products and services. You can attest to the catalog’s effectiveness in captivating customers, how many times have you ordered products that you don’t necessarily need, simply because the pictures look so tempting that you feel you just have to have one of those displayed products? I for one have always been a victim to the allure of catalogs. I just can’t seem to resist astounding pictures of cosmetics, bags, shoes….you name it, I ask you what a girl to do especially when the catalog is teeming with great discounts?And how about catalogs on cars? Those awesome full color catalogs that seem to say go and ask your bank if they can grant you a loan right away! The effects that catalogs have on its readers are simply amazing that is why it is important to hire only the best catalog printing services available.

Win Federal Contracts for Your Small Business

The United States Federal Government spends more than $600 billion dollars each year on buying goods and services from the private sector. The federal government is the world biggest consumer of goods and services, and advanced technology systems. The government purchases an array of products and services in nearly every category. The federal government spends billions of dollars yearly on training and development, information technology, telecommunication products, law enforcement, fire safety, management consulting, medical services, environmental services, just to name a few. Are there real federal opportunities for your small business? I can’t tell you with certainty that it does but I can tell you that federal policy actively encourages agencies to give procurement preferences to small, small disadvantaged and women owned firms by establishing annual procurement goals. The enormous federal marketplace offers potentially lucrative business opportunities.The Small Business Administration negotiates annual procurement goals with each agency to ensure that small, minority and women owned firms get their fair share of federal procurement contracts.Example of Federal Procurement Contract Award Goals for Fiscal Year 2005 23 percent of prime contracts for small businesses 5 percent of prime and subcontracts for small disadvantaged businesses 5 percent of prime and subcontracts for women-owned businesses 3 percent of prime and subcontracts for HubZone small businesses 3 percent of prime and subcontracts for service disabled veteran owned businessesUnder the Small Business Act all federal government contracts under $100,000 must be targeted to small, small disadvantaged, small women-owed and small service disabledowned companies. This federal law creates very distinct marketing advantages and business opportunities for small, minority, and women owned businesses seeking to to business with the federal government.The Federal Government provides small businesses with procurement resources within Federal Agency Offices and Specialize Programs.Here are some of the Small Business Procurement resources: Offices of Small and Disadvantaged Business Utilization (OSDU) within federal agencies is responsible for promoting the use of small, small disadvantage and special status businesses. Small Business Administration’s Office of Government Contracts administers programs and services designed to help small businesses meet the requirement necessary to compete for and receive contracts. Mentor-Protégé Program is designed to encourage federal prime contractors to form a partnership and provide technical assistance to Small Business Administration certified women-owned, small disadvantaged and small businesses owned and controlled by service disabled veterans. WomenBiz.gov is an online gateway for women owned business seeking to do business with the federal government. Minority Business Development Agency which is part of the United States Department of Commerce offers assistance to minority owned businesses.The Federal Government is a major and growing marketplace. With over 2500 buying offices nationwide and expanding budgets buyers are waiting to hear from your small business. The financial rewards are well worth the time and efforts. Don’t sit on the sidelines recession proof your small business and start marketing your products and services to the federal government. Get your slice of the $600 billion dollar federal contracting pie.

Business Disaster? Won't Happen to Me

As fast as you can say business disaster, your business can go up in smoke. That's what happened a while back to Castle Carpet One. Gone were thousands of dollars worth of equipment and carpet, plus two smaller businesses that were housed in the same building. Luckily the owners, Larry and Diane Cox, had plenty of business insurance to cover their physical losses. But they lost their most important business asset - customer records - because of failed back up systems. Rebuilding their customer base will be tough and the long-term revenue impact is hard to measure. With disasters like hurricanes, tornados, fires, floods and terrorism, to name a few, it's critical for small companies to have a disaster plan. And for companies with only one location, it's even more important. One location companies have the potential to lose the entire business if disaster strikes. For a home-based business, it's even worse. You could lose your home and your business in one swoop. Any small business owner can minimize the damage by simply having proactive strategies in place to deal with an emergency when it happens. What if: - You arrive at your business to find it vandalized and all of your customer records missing? - Your most critical employee becomes ill and requires an extended absence? - Your computer hard drive (or network) crashes? - You become the primary care giver for a sick family member? - You become ill and can't manage your customer commitments? - Your business becomes inaccessible because of an emergency on your street? What would you do? Would your business survive? What would you grab if you had to leave your business quickly? After the emergency, how would you communicate with your employees? Customers? How long would it take to get back to business as usual? Without a disaster plan, you'll have a harder time getting back to work. Most businesspeople think it will just take two or three days. That's tough to do if you have no plan for action and little money to move forward. The reality, experts say, is more like several months and at least 25 percent of businesses that experience a disaster never reopen. But most small business owners just don't make time for planning. We think it's "never going to happen to us." It could. The time to formalize a game plan for an emergency is before it happens. Do it now.

Sanity Check - Buying a Business

In the business broker community there is a review process that helps a buyer determine if a business purchase makes sense or not. This check can be done by a Fortune 500 company where everything is figured down to the penny and takes 1000 hours of research or it can be done by a small main street shop buyer who figures it out in 1 hour. Each item in this review process requires a decision. This decision can be based on extensive research or just on a reasonable guess. The beauty of this process is; how long you want to spend on doing this activity is totally up to you. As we review this process, I will explain the variables of this system so you can make the necessary decisions where needed. Remember, this is only a tool to help you make decisions about a business purchase; it is not a sure-fire foolproof system. I will just lay it out for you and you make your own decision as to the validity of this formula for analyzing a business purchase that you may want to make. The Sanity check requires two mathematical formulas, which require dollar amounts or other numbers to be entered in each formula. The math is calculated and then the results are compared against the purchase price. If it doesn’t work out the way you wanted, you have the option of then going back and change some of the numbers and do the calculation a second time. The two formulas are: 1. SP + WC – BF = CRSale Price + Working Capital - Borrowed Funds = Cash Requirement 2. SDE – FMW (FO) – DS - ROI = Extra Profit/LossSellers Discretionary Earnings - Fair Market Wage (for the owner) - Debt Service - Return on Investment (Cash Requirement x Interest rate -Stated as a Percentage) = Extra Profit/LossSince each item in the formula needs to have a dollar amount determined, we will define the terms and then discuss how the dollar amount is derived at. Terms Definition:Sale Price: The price that is being asked for the business or the price the buyer is thinking of offering. Depending on when you do this analysis. If you are trying to determine an asking price you would calculate all the other numbers in these two formulas to determine what should be your offering price. We will do examples to make this clear later in this article. Working Capital: The short-term assets minus the short-term liabilities is the accounting definition. The simple explanation would be the amount of money necessary to be invested by the buyer to run the daily operations of the business, once purchased. This would include monies tied up in inventory, and accounts receivables. Money invested to pay the landlord’s or utility company’s deposits. Also included is the money spent on the business purchase to cover the loan origination costs and purchase escrow fees when buying the business. It is the total funds invested into the business to keep it running. The down payment given to the seller is not part of this number, since it is included as a separate item. Calculation notes:1. Cost of inventory: $_________________ (+)2. Accounts receivable: $_________________ (+)3. Landlord deposit: $_________________ (+)4. Utility Deposits: $_________________ (+)5. Escrow fees to purchase: $_________________ (+)6. Loan origination costs: $_________________ (+)7. Short term liabilities* $ _________________ (--) Total Working Capital $_________________* Short-term liabilities are defined as liabilities that are to be paid off within 1 year – accounts payables and the part of any notes payable that are to be paid within 1 year.Borrowed Funds: The loan made for a business purchase from a bank or private party. The private party can be the seller or some friend or relative who might be willing to make a loan. This is borrowed money that must be paid back to someone at some time in the future. Cash Requirement: This is the invested cash required to both buy a business, and working capital-to run the business. The amount of cash needed to make the business purchase and run the operations of the business after deducting all borrowed funds, regardless of source. Sellers Discretionary Earnings / Owners Total Benefits: This is the total of all the non-business related benefits going to a business owner or his family on an annual basis that have been paid for, by the business. Included in this is definition are taxable profit from operations, unreported cash income, owners salary, salaries to non-working family members, any amount over the fair market value of salaries paid to working family members, family auto expenses, family telephone, family office expenses, health and life insurance for any or all family members, pension plan/ profit sharing contributions paid for the benefit of family members. This can also be stated as the reason why most people go to work everyday; they get family support for working. Calculation notes:1. Taxable profit from operation $_________________ (+)2. Cash $_________________ (+)3. Owners Salary $_________________ (+)4. Salaries of non-working family members $_________________ (+)5. Amount over the fair market value of wages of working Family members $_________________ (+)6. Family Auto Expenses $_________________ (+)7. Family Telephone Expense $_________________ (+)8. Family Office Expense $_________________ (+)9. Health and Life insurance ofAny/all family members $_________________ (+)10. Pension plan/profit share family members $_________________ (+)Total Seller Discretionary Earnings: $_________________Return on Investment: We need to have this stated as a dollar amount in Formula two. ROI is calculated as follows: Cash Requirement X “a Percent” - the greater the risk, the higher the percentFirst we must determine what the interest rate return we wish on our investment. This is a very subjective percentage and a change in this number can change the whole result of this analysis. If it is of any help, many financial investors in “Corporate America” feels they need to get a 20% return on their invested capital. Companies do not always make money and therefore the possible loses are built into the ROI. Some of the reasons are: companies are bought and go broke, overseas competition causing expectations of growth and income not to be met, and lastly government regulations periodically close whole industries. These are just some of the many risks involved in owning a business. Putting your money in a bank has little risk, because the Federal Government insures your deposits in the bank. The stock market has a lot of risk that many people do not fully understand, causing them to accept a long term ROI of 10-13% from mutual fund investments. A 95% drop in stock prices like the dot.com stocks or what happened when we had the oil embargo in 1992 are indications that the stock market can be a much higher risk than people realize. I personally feel that owning your own business and buying real estate are much lower risks, providing a much higher return. The proof of this can be found in the number of people who got rich in real estate and the over 25 million small business owners across this country. Figure out what ROI you want and insert this number as .20 amount to represent 20% or .06 to represent 6% ROI. This is an annual return on invested money. Once you have a percentage return on your investment we need to multiply it by the Cash requirement in order to come up with a dollar amount return needed. This restated is Dollars invested x percentage (stated as a decimal) = Dollar return on investment.Examples:1) Investment of $50,000.00 @ 6% Return On Investment (ROI) would be calculated as follows: $50,000.00 X .06 = $3,000.000 (Dollars return on investment)2) Investment of $50,000.00 @ 20% Return On Investment (ROI) would be calculated as follows: $50,000.00 X .20 = $10,000.00 (Dollars return on investment)Debt Service: The reason we need this number is because this is a financial expense of owning a business. It is not an operating expense of the daily business operations but if you have debt, in your business, you must be able to make the payments, out of the business operations profit. Usually this payment is mostly interest and a smaller portion is the principal reduction of the loan balance. Most professionals deduct the whole payment when doing this analysis, because the business must generate enough profit to make the whole payment. My personal preference is to just deduct the interest portion and to add the principal portion of the payment to working capital amount needed. This counts as more money being put into the business just like financing inventory and/or accounts receivables. For simple one-hour analyses it is not worth splitting up the payment. In the case of a very large principal reduction payment it could be unreasonable to not split it up. It is up to you. You can always try it both ways, since this is a process to raise your understanding, not to come up with a fixed answer of, yes! it is a buy or no! it is not a buy. Fair Market Wages: This is an amount that the new or old owner would be paid, if he were an employee not the owner. If the owner were the company salesman and also the company bookkeeper working a total 60 hours a week, a reasonable salary would have to be determined for each job. As an example only, lets say that an outside salesman, in your industry, could make $40,000 per year. And a bookkeeper usually charges $15 per hour. The salesman might very well work 50 hours at this job to earn this salary. If a bookkeeper would work 10 hours per week doing the bookkeeping that would mean 520 hours per year (10 hours x 52) times $15.00 per hour which comes to $7800 per year for the bookkeeper. The two Fair Market Salaries would come to $47,800 ($40,000 + $7,800). Sometimes the market salaries are not so easy to figure. Lets take an owner who owns a 99-cent discount type store. This shopkeeper works 70 hours per week behind a counter in the store. You can hire a counter person for $7.00 per hour so this becomes (70 hrs x $7.00 per hour x 52 weeks). Then you start discussing that this $7.00 per hour counter person would not be able to do the buying. You might want to figure a purchasing agent's salary. This can be done or you can just do simple numbers, leaving the salary only based on a counter person’s wages. DOING THE MATHBy now you have the information to come up with numbers to put into the formula. Let us create a scenario. This was a transmission shop. The customers pay COD-upon pick up of the car. The parts inventory is from old transmissions and show on the books as worth nothing. The seller-owner is asking $75,000 for this business that he is able to takes out $50,000 in profit or benefits. In an interview, the owner mentioned that if a buyer will put $40,000 as a down payment he would carry the $35,000 balance at 5% interest for 5 years. By observation, we can see that the current owner sits in the office and does the bookkeeping, orders parts and makes bank deposits. He has a manager who bids jobs and handles production. No one is going out and calling on prospective business, which is one thing the owner should be doing with his time, but he is not doing. Lets go through what the numbers are with this example. Math Formula #1: Sale Price + Working Capital - Borrowed Funds = Cash Requirement Sales Price: $75,000Working Capital: The business requires $10,000 cash infusion upon close of escrow, mostly to pay the landlords deposits and start a new marketing campaign. Borrowed Funds: $35,000So, the calculation for formula #1 looks like this: Sales Price: $75,000Working Capital (+) $10,000Borrowed Funds (-) $35,000 =Cash Requirement: $50,000.00Math Formula #2: Sellers Discretionary Earnings - Fair Market Wages For Owner - Debt Service - Return on Investment (Cash Requirement x Percentage) = Extra Profit/LossSeller Discretionary Earnings in this case is, let us say, $50,000.00.Fair Market Wage: You can calculate what you consider fair or you can put all of the other numbers into the equation and see what is left for salary. If you like the salary you buy the business, if not you do not. If we were to calculate what the owner’s salary should be I would not pay much for what he does. Even though he puts in 50 hours a week he really only works 15 hours a week of true production. I am figuring 5 hours for bookkeeping and banking and 10 hours for ordering parts and answering phone calls. At $15.00 per hour he is earning $225.00 a week ($15.00 x 15 hours) and that multiplied times 52 weeks comes to $11,700 per year. Debt Service: My financial calculator says that if you borrow $40,000 for 5 years (60 months) at 5% and the balance at the end of the 60-month is zero, the monthly payments come to $660.49. Since the formula requires yearly figures we multiply by 12 and get $7,925.92. Most of this payment is principal reduction but we are going to just deduct all of the payment as is generally accepted in the industry. Return on Investment: We are going to use the 20% figure we discussed above. Formula one determined that $50,000 was needed as an investment which is multiplied by 20% (.20) = $10,000 per year return on investment.Formula #2 (Sellers Discretionary Earnings - Fair Market Wages (For Owner) - Debt Service - Return on Investment (Cash Requirement x Percentage) = Extra Profit/Loss) would the look like this: Seller Discretionary Earnings: $50,000.00- Fair Market Wages: $11,700.00 (-)- Debt Service: $ 7,925.00 (-)- Return on investment: $10,000.00 (-)= Extra Profit/Loss: $20,375.00This means that after deducting from the income, wages, financing costs and a return on your cash investment the business still generates $20,375 more profit. Now would you buy this business under these circumstances? It would appear, yes! Of course this is based on a few assumptions, which might not be true. Lets look at them again.The owner is only working 15 hours a week or he is only doing 15 hours of real work even though he is sitting around all day. The other assumption is that a 20% return on your investment is a sufficient return for the risk. We can also consider that if the new owner puts in an extra 25 hours a week doing productive sales the business should be able to afford to pay him another $20,375 for the first year. It would appear that if the sales work was done then the profit should greatly increase in the second year or maybe even the second month. Conclusion:This is a tool to help you analyze a business. It is not the end-all of a business appraisal or evaluation. Just a tool to help increase your understanding of a business’s value that you may be seeking to purchase. Have fun with it.

Small business investments

State laws have been relaxed to make it easier for small business to raise start-up and growth financing from the public. Many investors view this as an opportunity to “get in on the ground floor” of an emerging business and to “hit it big” as the small businesses grow into large ones.Statistically, most small businesses fail within the first few years. Small business investments are among the most risky that investors can make. This guide suggests factors to consider for determining whether you should make a small business investment.Risks and investment strategyA basic principle of investing in a small business is: Never make small business investments that you cannot afford to lose! Never use funds that may be needed for other purposes, such as college education, retirement, loan repayment, or medical expenses.Instead, use funds that would otherwise be used for a consumer purchase, such as a vacation or a down payment on a boat or a new car.Above all, never let a commissioned securities salesperson or office or directors of a company convince you that the investment is not risky. Small business investments are generally hard to convert to cash (illiquid), even though the securities may technically be freely transferable. Thus, you will usually be unable to sell your securities if the company takes a turn for the worse.In addition, just because the state has registered the offering does not mean that the particular investment will be successful. The state does not evaluate or endorse any investments. If anyone suggests otherwise, they are breaking the law.If you plan to invest a large amount of money in a small business, you should consider investing smaller amounts in several small businesses. A few highly successful investments can offset the unsuccessful ones. However, even when using this strategy, only invest money you can afford to lose.Analyzing the investmentAlthough there is no magic formula for making successful investment decisions, certain factors are considered important by professional venture investors. Some questions to consider are:Ø How long has the company been in business? If it is a start-up or has only a brief operating history, are you being asked to pay more than the shares are worth?Ø Consider whether management is dealing unfairly with investors by taking salaries or other benefits that are too large in view of the company’s stage of development, or by retaining an inordinate amount of equity stock of the company compared with the amount investors will receive. For example, is the public putting up 80 percent of the money but only receiving 10 percent of the company shares?Ø How much experience does management have in the industry and in a small business? How successful were the managers in previous businesses?Ø Do you know enough about the industry to be able to evaluate the company and to make a wise investment?Ø Does the company have a realistic marketing plan and do they have the resources to market the product or service successfully?Ø How or when will you get a return on your investment?Making money on your investmentThe two classic methods of making money on an investment in a small business are resale of stock in the public securities markets following a public offering, and receiving cash or marketable securities in a merger or other acquisition of the company.If the company is not likely to go public or be sold out within a reasonable time (i.e., a family-owned or closely held corporation), it may not be a good investment for you – despite its prospects for success – because of the lack of opportunity to cash in on the investment. Management of a successful private company may receive a good return indefinitely through salaries and bonuses, but it is unlikely that there will be profits sufficient to pay dividends in proportion with the risk of the investment.Other suggestionsInvestors must be provided with a disclosure document – a prospectus – before making a final decision to invest. You need to read this material before investing.Even the best small business venture offerings are highly risky. If you have a nagging sense of doubt, there is probably a good reason for it. Good investments are based on sound business criteria and not emotions. If you are not entirely comfortable, the best approach is usually not to invest. There will be many other opportunities. Do not let a securities salesperson pressure you into making a decision.It is generally a good idea to see management of the company face-to-face to size them up. Focus on experience and record of accomplishment rather than a smooth sales presentation. If possible, take a sophisticated businessperson with you to help in your analysis. Beware of any information that differs from, or is not included in the disclosure document. All significant information is required by law to be in the disclosure document. Immediately report any problems to your state Office of the Commissioner of Securities.ConclusionGreater numbers of public investors are “getting on the ground floor” by investing in small businesses. When successful, these enterprises enhance the economy and provide jobs. They can also provide new investment opportunities, but the advantages must be balanced against the risky nature of small business investments.

For Entrepreneurs A Simple IRA May Be Best

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 1ousse, 1iquid nails, and 98
ot 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 25f 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 3f 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 3f his salary to the plan, the employer must match the 3 ontribution.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 2f 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 25arly withdrawal penalty. Withdrawals taken after the first two years are subject to a 10arly 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 100ested; contributions and earnings are tax-deferred until withdrawal; employees can contribute 100f 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!

China Portfolio Insurance

Are you excited about the upside potential of China but can’t pull the trigger because of the significant downside risk? Here is a way to invest in China growth and still sleep at night. China has been the largest economy in the world for eighteen of the past twenty centuries and it is clearly determined to regain its role as the hegemonic power in Asia and then challenge U.S. global leadership. Will it be able to sustain its 10% economic growth rate, quell rural discontent, build a sound market-based financial system, privatize dominant state-owned enterprises and move towards openness and democracy? This is a tall order and you can put me in the skeptic column. Nevertheless, China’s raw industrial power, momentum and the palpable ambition of the Chinese people could realistically yield a huge return. I advise my clients to go ahead and invest in China but emphasize that this is a speculative investment. It is smart to protect against the considerable downside risk. Here is a simple plan you might want to execute to capture the upside while cutting your losses if the Chinese economy hits a speed bump. First, you could take a broad stake in China through investing in the China iShare exchange-traded fund (FXI) that is comprised of 25 of the largest and most liquid China names. All of the 25 stocks included in the China iShare are listed on the Hong Kong Stock Exchange. Some of them are incorporated in mainland China (H shares) and some of them are incorporated in Hong Kong (red chips). The China iShare has been picking up steam in the last few months and is up just over 12% so far this year. The China iShare provides good exposure to three key sectors of China: energy (20%), telcom (19%) and industrial (18%). This concentration can be viewed as a plus or a minus depending on your perspective. For example, some smart investors are placing a bigger bet on China’s consumer markets. The top five companies represent 40% of the index. The annual operating expenses of the China iShare are only 0.74% compared to 2% plus for other alternatives out there including actively managed China and greater China regional funds. Keep in mind that most of these companies are still largely controlled and owned by the Chinese government. Next, you could take out some insurance to protect this position by purchasing a put option on the China iShare (FXI). It sounds complicated but is actually very straightforward. An option is a right to buy (call) or sell (put) 100 shares of a security on a fixed expiration date at a set price (strike price). For this right an investor pays a fee or premium. While you may grumble about paying the premium with cold hard cash when you might not need it, you probably have home insurance just in case disaster strikes and no doubt you have some life insurance as well. Why not protect your portfolio as well? It is especially important to consider hedging against more risky emerging markets such as China. While countries like China offer tremendous upside potential, the downside risk can be daunting and immobilize even the bravest investor. Let’s look at a couple of examples. Say you buy 100 shares of the China iShare (FXI) which is trading at $62 per share. Your total exposure is $6,200. Then purchase a put option (right to sell the China iShare) that gives you the right to sell FXI at a price of $60 on the third Friday in January 2008. I think we all can agree that a lot could happen to China, good and bad, from now until January, 2008. If the price of the China iShare moves down toward the strike price, the value of the option will increase. This will cost you a premium of a little over $500 but limits your potential loss to $2 per share plus the premium. Or buy a put option at a strike price of $50 and your premium drops to about $200 with a worst case scenario of a loss of $12 per share plus the premium. Here is another example. You know Latin American markets are hot and believe the bull market will continue but are wary that there is the potential for a sharp pullback. You could buy 100 shares of the Latin America 40 iShare (ILF) giving you exposure to Brazil, Argentina, Mexico and Chile at a price of $113 for a total exposure of $11,300. Then buy a put option giving you the right to sell 100 shares at a strike price of $100 in March 2006 for a premium of around $300. Your worst case scenario would then be a loss of 15% with unlimited upside. Keep a cool head when investing in emerging market countries like China. They should represent only be a small portion of your portfolio and, whenever possible, take out some insurance.