Dee Power

Bestselling Authors 2 of 10

2009-12-17T09:33:00.000-08:00

2. They Write, And Write And Write….
The productivity, the writing output, of bestselling authors is much greater than the average writer’s. They have the discipline to get up each day and produce high quality work. They don’t wait for the muse to tap them on the shoulder. Some authors’ annual literary production is phenomenal, such as Nora Roberts who often comes out with two extremely popular books each year— year after year. Or Catherine Coulter, who has produced more than fifty bestsellers so far in her career.

What Do Bestselling Authors Have in Common? 1 of 10

2009-11-08T10:20:00.000-08:00

What Do Bestselling Authors Have In Common?
Ten Things That May Surprise You.

What separates the publishing industry elite, the bestselling authors, from all the thousands and thousands of writers who aspire to someday make the bestseller lists? It turns out that writing talent is not the only separating factor; in fact it may not even be the most important factor.

1. Perseverance Is Key

Nearly all bestselling authors faced the same struggles early in their careers that less successful, even unpublished authors, face. Immediate success is rare. One distinction of bestselling authors is that they do not get as discouraged by lack of early success. They persevere. Their desire to succeed is enormous. Bestselling authors often have to demonstrate the patience and stamina to write a number of books before achieving notable success.

Dee Power
Co-author of The Making of a Bestseller: Success Stories From Authors and the Editors, Agents and Booksellers Behind Them.

2009-10-26T10:38:00.000-07:00

A bad agent can be worse than no agent at all.

Types of things to watch out for with agents:

Charging the author a fee up front, to be accepted as a client. Can be called a reading fee, or a monthly “office expenses” charge. The best agents, and most successful ones, only charge a percentage fee of royalties the author earns, typically 15%. Suppose a realtor charged you a fee to come over and tour your house before getting the listing? How quickly would you show that realtor the door. . .
Charging back unusually large “postage and copying fees” to send out an authors’ work. One crooked agency accepts almost every client that contacts them, but in the fine print of the contract they charge “postage and handling” of up to $10 per submission they send out on your behalf. It doesn’t cost $10 to send a letter and a sample chapter of a book to a publisher. This company makes a fortune from these fees whether or not they actually successfully market any of their clients work.
Directing authors toward specific editing services or giving authors’ names to these services. Sometimes they even own the editing service. Some agents make a significant portion of their income from referral fees from these services.
Terms in Agency contracts with writers vary widely. Must be read carefully. Not standard at all.
The agent contacts publishers pretty much at random. The agent’s value to you is in the relationships they have with publishers, so that if the publisher hears from them, they know the book is worth taking a look at. Ask to see copies of rejection letters that come back from publishers. If it looks like just a form letter response, rather than a letter you would send to an acquaintance, you can bet the agent may be just picking names out of a directory of publishers.

Puts forth a weak effort or gives up on the client’s project after a few months. You have a right to ask how active the agent is going to be. How many publishers are they going to contact, how will they follow up? You also have a right to periodic reports as to whom they have contacted and the results. You must determine how much time and attention they are really going to give you.

Another reason it is imperative to have a reputable agent is that the publishing house typically pays the agent, who deducts their “cut” and sends the remainder it to the author. It’s a frightening thought that a less than honest person gets their hands on the money you’ve earned from sweat, blood, and even tears.

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Dee Power, MBA, was born on the East Coast and grew up on the West Coast. She started her writing career in the second grade by writing a Thanksgiving Day play that debuted before many appreciative parents. Dee has been interviewed as an expert on the publishing industry by The New York Times, Washington Post, the Associated Press and various local publications. She and Brian Hill are the authors of The Making of a Bestseller: Success Stories From Authors, and the Editors, Agents and Booksellers Behind Them, Attracting Capital From Angels, Inside Secrets To Venture Capital and the novel, Over Time. You can reach her through her website, http://www.BrianHillAndDeePower.com

2009-08-03T12:56:00.000-07:00

Fiction

Again the query letter should be no more than two pages. Trying to distill all the plot and characters of a complex novel down to a few paragraphs can be agony. But again, everyone is in the same boat. So don’t worry if your first draft doesn’t read quite right.

The fiction query is tricky because you want to show the creativity of your fiction writing—and make a sales presentation to the editor at the same time.

You need to get the reader’s attention right away. Perhaps pose a question: “Have you ever wondered what a near-death experience really feels like?”

Then, summarize the characters, plot, and theme.

Þ Emphasize the challenges the main characters face, and how they overcome them.

Þ The protagonist/antagonist conflict. Drama is conflict.

Þ “Put the characters up a tree, throw rocks at them, bring them back down.”

Remember that memorable books have memorable characters.

“Character drives plot, not the reverse.”—F. Scott Fitzgerald

You also need to describe the genre the book fits in (romance, chic lit, mystery, mainstream, literary). Tell who the audience is for the book. And of course include the word count.

Describe your writing background, publishing credits, or educational level. Along with any specific reasons you are the best person to be writing this particular book.

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Dee Power with Brian Hill are the authors of The Making of a Bestseller: Success Stories From Authors, and the Editors, Agents and Booksellers Behind Them, Attracting Capital From Angels, Inside Secrets To Venture Capital and the novel, Over Time. You can reach her through her website, http://www.BrianHillAndDeePower.com

2009-07-29T16:36:00.000-07:00

To Be or Not To Be: Published

Writer’s Digest estimates that there are 24 million people in the United States that consider themselves writers but less than 5% are published. Published? What exactly is published?

With the advances in technology these days, print on demand specifically, anyone can become “published;” if published is defined strictly as written material that is accessible to the public.

Many authors who have chosen the publish on demand (POD) route, insist on sharing the title of published. It’s true their books can be bought on internet sites, can be ordered in bookstores, although they are not, as a general rule, stocked by bookstores, and are available as bound physical copies, mostly trade paperback.

But isn't there more to being published than being available to the public? Are these authors really published or have their books just been printed? After all, no third party has objectively reviewed their work and deemed it marketable. No publisher has risked their resources, through paying an advance, printing several thousand (or in the case of a small press – several hundred) copies, and devoting marketing efforts to promote the title.

The publishing industry seems to consider publish on demand books second class citizens as well. Many newspapers will not, as a matter of policy, consider POD books for review. Quite a few authors' associations, The Author's Guild to name one, don't accept POD books as qualification for joining. Acquisition editors at publishing houses and literary agents don't consider a publish on demand book a writing credit.

Many bookstores including Barnes and Noble will not stock POD books. Yes, you will find a few copies in bookstores here and there. Bookstores want to support local authors.

I asked Michael Powell Will books published by POD publishers ever reach the mainstream of the bookstores?

Michael’s answer: “No. While the physical appearance of these books has improved over the last few years, the quality of the inside content hasn’t. There’s no recognizable imprint of a house, you don’t know what you’re getting. There is no editor to vet the book, there is no sales staff in place, no catalog, no distribution system, the sales terms aren’t the norm. I don’t think those types of books will ever make it outside the ‘local author’ or ‘regional book’ arena.

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It’s not that I begrudge the status of published to any other writer. Or that I believe there are only so many publishing slots available, and I have to elbow the other writers out of the way, a dance of musical chairs for books if you will.

Just because a title has been accepted by a commercial publisher doesn’t mean that it is necessarily better than any other specific self published book. And not all good books eventually find a publishing home.

There is almost a backlash from publish on demand authors, a bitterness, or jealousy, of commercially published authors. I’m not sure why.

What is the definition of published?

Dee
http://www.BrianHillAndDeePower.com
Co-author of The Making of a Bestseller: Success Stories From Authors and the Editors, Agents and Booksellers Behind Them and several other books.

2009-07-15T12:18:00.000-07:00

Literary Agents: All You Need to Know (well almost)

Part One

Every day for the next two weeks there will be an installment. Questions about agents are encouraged in the comment section. If I don't know the answer I'll try to find out.

The Probability of Publishing

Traditional publishing houses include major players such as Warner Books, small publishers such as Algonquin Books, niche publishers, and regional publishers. Traditional publishers pay the author, usually an advance and royalties based on the actual sales of the book. There is a range between small and large publishing houses as to these payments. But the key is the author gets paid. The author has no upfront fees to pay the publisher and isn’t under any obligation to purchase any books.

Traditional houses are very selective when acquiring books. While 172,000 new books were published in 2005, estimates have been made that only 1 out of 1000 books written gets published. Writers Digest has said that there are 24 million people in the US who describe themselves as creative writers. Less than 5% of these writers have actually, ever, been published.

Publisher or Literary Agent?

Literary agents represent the author’s work to publishers for a percentage of the author’s earnings, both the advance and royalties. An agent is up to date on which editor at what house is interested in what subjects, or in the case of fiction, which genre. Agents act as a screening device for editors at the publishing houses, filtering out the uninteresting, badly written or boring manuscripts and only presenting the professionally polished saleable works to the appropriate editor. Or that’s how it works in theory. A (good) agent can quickly get the attention of book publishers. They spend time and energy developing relationships with publishers.

The agent negotiates the contract between the publisher and the author. There's more to it than just the size of the advance and royalty percentage. There are foreign rights, television and movie rights, audio rights, syndication rights and more. The payment for those rights are split between the publisher and the author. The payment to the author can go against the advance or can be in addition to the advance. In other words, if an advance of $25,000 was paid for the title, the author would have to wait until the sales of the book earn the amount of the advance before any additional monies are paid. Or the payment for the sold rights can be paid immediately. The agent can negotiate which.

The agent receives the entire advance from the publisher and deposits it into an escrow account set up for the author at the agency. The agent then subtracts their commission, usually 15% and writes a check from the escrow account to the author. any additional royalty checks over and above the advance are treated the same way.

Do You Need An Agent?

All three of our nonfiction books were placed by us directly contacting the publisher.

Small publishing houses and niche publishers are more open to being contacted by an author.

An entertainment or literary attorney can negotiate the contract for you, or review it for far less than the 15% agent’s fee.

Editors at major houses attend writers’ conferences and will consider pitches by authors at those conferences.

Romance publishers will often accept queries from authors directly.

YES

An agent can guide you in putting together a book proposal.

An agent is a buffer between the editor and the author during negotiations and throughout the publication process.

An agent knows what is reasonable in a contract and what isn’t.

An agent knows which editor has changed houses or is looking to broaden a list or add a new category to their list.

When there is a disagreement between the editor and the author, the agent can step in and resolve the differences.

Concerning fiction, nearly every major publishing house says they work only through agents. Unsolicited manuscripts are often returned unread.

Even bestselling authors still require an agent.
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Come back tomorrow and we'll cover Finding An Agent.

Dee Power is the co-author, with Brian Hill of Inside Secrets To Venture Capital, Attracting Capital from Angels, and the novel Over Time. Her latest book, The Making of a Bestseller: Success Stories from Authors and the Editors, Agents and Booksellers Behind Them, includes extensive research on the publishing industry and interviews with bestselling authors, editors, agents and experts.

How to Find a Literary Agent: Use the Write Bait

2009-06-21T14:24:00.000-07:00

Most aspiring authors begin their careers with little or no understanding of how to go about finding an agent to represent their work. They quickly learn that most major publishing houses only accept submissions through literary agents. So, they begin sending query letters to agents and, usually, meet with a cool reception, or even hit a high, solid, impenetrable brick wall. We surveyed over 60 literary agents, from both large well-known agencies as well as smaller “boutique” agencies, to get a perspective on how authors can improve their chances of attracting an agent, and to find out the outlook for new authors trying to crack into the publishing industry.

We asked the agents:

In attempting to find an agent, how much competition does a new author really face?

What is the most common reason you decline to represent a writer?

What is the most critical mistake writers make when approaching agents?

Where do agents find clients?

In the next 12 to 24 months do you see the publishing industry becoming more or less favorable for new (unpublished) authors?

In order to obtain the most candid comments possible, we told the agents their responses to our questions would not be attributed to them (and as a result they were even more candid than we expected).

How Much Competition Does A New Author Really Face?

Unfortunately, the response was: a tremendous amount. The agents reported that they receive, on average, 90 unsolicited submissions per week. Out of these more than 4,500 submissions that come in each year, the agents, on average, took on 11 new clients. This means that the typical agent agreed to represent a little more than 2 out of 1000 of the authors that contacted them with unsolicited submissions. Regarding the 998 authors who did not receive a contract, we asked the agents:

What Is The Most Common Reason You Decline To Represent A Writer?

Poor writing 60%
Book was outside the agent’s genre 17%
Agent’s client base was full 10%
Writer’s work and agent don’t click 8%
Other 5%

The good news is that the top two reasons given are factors that are under the writer’s control. Most authors develop and improve their craft over a number of years, and even bestselling authors say when they were first starting out their initial literary efforts left something to be desired. A dedicated writer certainly doesn’t have to remain in that “poor writing” category.

But what exactly is “poor writing”? In the decline letters they send to authors, agents often say they turned the author down because they aren’t enthusiastic enough about the material. A favorite phrase used by agents in turndown letters is, “I simply didn’t fall in love with the writing.” This is probably the source of more author frustration than any other aspect of trying to get published. Success or failure hinges on extremely subjective judgments, and once the judgment is rendered, it is final. Talking an agent out of an opinion is pretty much impossible. Think about your own reading experience. How often do you pick up a novel, read 10 pages, decide you aren’t interested in it, and put it down? Does that mean the writing was “poor”? Not at all. It simply means you didn’t connect with the story, for reasons you may not even be able to articulate. Every individual’s literary taste is different.

One frequently received type of rejection isn’t really ‘rejection’ at all: The agent has all the clients they can handle at the present time, so they really have no choice but to send a decline letter to unsolicited submissions. The agent in this case was doing the author a favor; far worse it would have been to accept a new client that would not get the necessary attention from the agent. Too often, though, authors interpret receiving a decline letter such as this as, “my book must not be any good.” Actually, the agent may not even had time to read your submission package.

Notice that the fact a writer was unpublished was not a significant reason for being rejected as a client.

What Should Be In a Book Proposal

2009-06-08T22:35:00.000-07:00

The agent said yes to the query letter! Finding out how to write a book proposal is your next step.

The agent will let you know what they want to see. Even with an affirmative response, they don’t always ask for a full manuscript. A nonfiction book hasn’t been written yet in most cases, so there isn’t a manuscript to send. What publishers and agents will ask for is a proposal for your nonfiction book.

A Nonfiction Book Proposal

Concept:
A brief, no more than one page description about why your book is unique.

Market:
Who will buy your book and why. Include the demographics of your potential readers and how many of them there are. If you can, quote statistics, such as baseball is the most often viewed sport on TV with x million people watching. Or x number of people attend arts and crafts shows a year. Or $xxx dollars of revenues are generated by customers buying garden tools. Whatever is relevant to your book’s topic.

Competition:
Similar books that have been published in the last year or that will be coming out soon. You can get an idea of soon-to-be published books by going to amazon.com, and searching under key words. When you get a listing of books that you think are similar to yours, then rank by publication date.

Include the title, author, ISBN, and a brief description. Then state why your book is better or what your book addresses that the competition doesn’t.

Go to the library and read currently available books you feel are competitive to yours. Again include the title, author, ISBN, and a brief description. Then state why your book is better or what your book addresses that the competition doesn’t.

All books have competitors.

Promotion:
What you will do for promotion. How will you market your book? Be specific. If you are willing to give seminars or speak at events, try to line up a few. Publishers want authors that actively market their own books. This doesn’t mean that you have to spend money, but it does mean you have to expend effort.

About The Author:
Pretty self explanatory. What makes you the best author to write this book. This is not a resume; include what is relevant to the topic of the book. If you have previous books published list them, with a short description.

Media Placement:
Any newspaper or magazine articles you’ve been featured in. Include articles that you’ve written and have published. Offline, hard copy publications are better than online. Online is better than nothing. Plan ahead and in the months while you’re working on your book proposal see if you can get a few articles placed. If you have just a few, include clippings. If you have more than a few, list the publication, date, title of the article. Writing a book makes you an expert in the eyes of the media, but you have to let them know you’re available.

Endorsements:
If you can get a well known authority figure, expert, celebrity or author to give you an endorsement, or to commit to an endorsement, it puts you ahead in the game.

Chapter Outline or Synopsis:
Two to four pages. Each chapter is listed and the subheadings with a brief description, a paragraph or two explaining what will be included in the chapter.

Sample Chapter:
It doesn’t have to be the first chapter. Pick the chapter you’re most excited to write, or that you are the most knowledgeable about. The editor will judge the quality of your writing by this chapter.

The proposal not including the sample chapter can run from 10 to 20 pages.

Discover How You Can Achieve Your Dream And Get Your Book Published. Sneak peek of Dee Power's new book, The Publishing Primer. Get your free chapter. Find out how books get in bookstores. How bookstores select titles. How the bestseller lists work. What boosts a book to the top of the bestseller list? And frequently asked questions about publishing

What's the outlook for the next generation of authors

2009-05-28T15:03:00.000-07:00

The Outlook for The Next Generation of Authors

Agents do not envision a great deal of change on the horizon. They are mildly negative about the next 12 to 24 months. When asked the reasons behind their forecast, the most common responses were:

Industry Consolidation, Changes Within the Publishing Industry Itself
Changes in Book Retailing
Publishers are Becoming More Risk Averse
The Pessimists
The Optimists
The Impact of the National Economy

So What Can a Debut Author Do?

1) Study the elements of a good query letter.

2) Make your contact letter succinct, positive, but not obnoxious. Stress that you understand the market for your book and how to address that market.

3) Learn what types of manuscripts individual agents are looking for and send yours out to the agents that match up the best with your topic or genre.

4) Don’t give up.

2009-05-19T13:41:00.000-07:00

Why Do Agents Say No?

Literary Agents Everything You Need to Know (well almost)

What is the most common reason agents decline to represent a writer?

60% Poor writing

17% Book was outside agent’s genre
10% Agent’s client base was full
8% Writer’s work and agent don’t click
5% Other

The good news is that the top two reasons given are factors under the writer’s control. Most authors develop and improve their craft over a number of years. An aspiring author certainly doesn’t have to remain in that “poor writing” category forever.

But what exactly is “poor writing”? In the decline letters they send to authors, agents often say they turned the author down because they aren’t enthusiastic enough about the material. A favorite phrase they use is, “I simply didn’t fall in love with the writing.” This is probably the source of more author frustration than any other aspect of getting published. Success or failure hinges on extremely subjective judgments. Think about your own reading experience. How often do you pick up a novel, read 10 pages and decide you aren’t interested in it? Does that mean the writing was “poor”? Not at all. It simply means you didn’t connect with the story. Every individual’s literary taste is different.

One frequently received type of rejection isn’t really “rejection” at all: The agent has all the clients she can handle at the present time, so she really has no choice but to send a decline letter to unsolicited submissions. The agent in this case was doing the author a favor; it would have been far worse to accept a new client who would receive inadequate attention. Too often, though, authors interpret such a decline letter as meaning “my book must not be any good.” Actually, the agent may not have even had time to read the submission package.

An encouraging note is that the agents’ answers here indicated that the fact a writer was unpublished was not a significant reason for rejection.

You’ve got your list of potential publishers or agencies, now what?

The first step for both nonfiction and fiction is the query letter. It is your chance to open doors to the publishing industry, to agents and publishers. Because of the volume of submissions agents and publishers receive, it has become the standard way of make a contact, rather than sending out entire manuscripts. Absolutely, positively include an SASE (self addressed stamped envelope) for the agent/publisher to contact you.

Why you need a query letter and how to write it

You never want to send a full manuscript. It won’t be read. The standard method of contact is the Query letter. A good query letter is short, one to two pages maximum.

The goal of query letter is to get the manuscript or book proposal requested by the agent or publisher. Often they request just the first 60 pages, read that, then decide whether they want to read the full manuscript.

Þ Think Like A Businessperson Trying To Make A Sale, Not an “Artist”

Writers tend to think they are the publisher’s customers, as though the publisher exists to make their dream of being a published author come true. The truth is that publisher’s real customers are the people who purchase and read books. So your goal as a writer is to demonstrate how you can help the publisher reach his or her objectives. In the query letter, you introduce both the specific literary work you want to sell them, and yourself, your background and accomplishments.

Þ There is something unique, fresh, different about your book

Þ You are professional: you will be able to deliver the manuscript on time

Þ You are willing to expend effort to market the book

Þ You have the background, experience to write the book you are proposing

Þ It fits in the publisher’s area of concentration

Þ Your book has a large market

The query letter is very challenging to write: you have to choose every word carefully. Also, your target audience reads so many of these each week, it is difficult to make yours stand. Even if you write the “perfect” query letter, it’s still a crapshoot whether your work will be requested.

The emphasis of the query letter is on “Why readers will buy my book,” rather than “Aren’t I a great writer.” Don’t start with: “It’s been my lifelong dream to be a writer.” They don’t care. It is their lifelong dream to sell more books than their competitors.

How many queries should you send out? Try batches of five or ten, then measure the response you get. You may need to tweak the content of your query letter.

Suppose you send out the first batch and no one asks for the book. What does that mean?

Suppose you send out ten. You get three polite turndown letters and no response from the other seven. What should you conclude?

The agent may not be taking on new clients
You have no talent
Your book has no market
You didn’t express yourself well in the letter
The agent is swamped with submissions and didn’t have a chance to reply
The agent is rude and threw your letter away
The publishing industry isn’t interested in new writers
You contacted an agent that is not interested in your genre

Most likely one of the following is the case:

The agent may not be taking on new clients
You didn’t express yourself well in the letter
The agent is swamped with submissions and didn’t have a chance to reply
The agent is rude and threw your letter away
You contacted an agent that is not interested in your genre

Important rule:

Not hearing a positive response should not be interpreted as REJECTION, of you or your work. It may simply mean you are not getting anyone’s attention. In less polite terms, they didn’t give you the time of day.

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Tomorrow: The agent said yes to your query letter - now what?

Dee Power is the author of The Making of a Bestseller: Success Stories From Authors, and the Editors, Agents and Booksellers Behind Them, Attracting Capital From Angels, Inside Secrets To Venture Capital and the novel, Over Time. You can reach her through her website http://www.BrianHillAndDeePower.com

How to Get a Book Published: How Bookstores Select Titles

2009-04-17T12:32:00.000-07:00

After the agents, editors, and the marketing departments at publishing houses have all made their decisions about what will be published, in what quantities, and how the finished product will look, there is one final decision maker who ultimately decides what books will be presented for sale to consumers: The buyer for the bookstores. The decision maker for the independent bookstores is often the owner, or the owner and several employees.

The chains have corporate buyers who specialize in different areas. The buyer looks at the prior sales history of the author, or if it is the author’s first book, the buyer will look at similar titles or topics. Of course the publisher’s sales rep, or the distributor, lets the buyer know of the marketing push the title will receive.

If advance reading copies (ARCs) are available or galleys – the uncorrected page proofs of a book, those are sent to the chains and major independents three to four months prior to the title’s publication date.

Booksellers usually buy their first order of a new title from the publisher through their sales reps. Subsequent orders can be placed directly with the publisher, through a distributor or wholesaler, which allows the bookstore to batch their orders to several different publishers and receive one invoice and make only one payment. It allows the bookstore to return books from different publishers to one place –the wholesaler.

The decisions book buyers make about what titles to stock are a blend of taking into account the sales pitches from publishers’ reps, historical sales data available about an author or a topic, knowledge of their customer base—and to a large extent simply what their gut instinct tells them will be popular.

How to Get a Book Published: Bookstores Sell 50% of Books Published

2009-04-07T12:30:00.000-07:00

50% of books meant for consumers are sold through bookstores. If you're wondering how to get a book published make sure your publisher's books is stocked in bookstores. The first bookstores in the United States were established at least as far back as 1640. At that time, quite a few booksellers were also book publishers. By 1700 there were 30 booksellers in Boston alone. However, these stores didn’t restrict themselves to just books but sold other merchandise as well. Richard Hoe’s invention of the rotary press, which spewed out pages at the rate of 8000 sheets an hour, opened up the mass market for books. The divergence between bookseller and book publisher began to widen.

Book publishing is a $37 billion dollar industry in the United States. It has been estimated that the five large publishing companies, Random House Inc., Penguin USA, Simon & Schuster, Time Warner and HarperCollins, account for nearly eighty percent of all book sales in the US. This has occurred for the same reasons any other industry goes through consolidation: by combining certain administrative or staff functions, costs can be reduced and profits increased. Publishing, relative to many other industries, has not enjoyed a high Return on Investment (ROI) for investors. Now publishers are much more focused on having every single book they publish be profitable. This means a more risk averse philosophy, with a preference for publishing authors with successful track records--a sound business strategy.

Currently there are about 2000 chain bookstore locations. An additional 2200 independent booksellers belong to the American Booksellers Association. There are some 50,000 locations that sell books. Around 50% of books meant for retail sales are sold in bookstores, only about 10 -15% of new books are sold online.

Barnes and Noble is the largest chain with 796 stores. Annual revenues from those stores are $4.7 billion which translates into sales of almost 445 million books per year. A typical Barnes and Noble store offers 150,000 - 200,000 titles to shoppers.

Oddly enough Barnes and Noble is re-instituting the old fashioned idea that booksellers are also publishers. Its wholly owned company, Sterling Publishing, has the publishing or distribution rights to 10,000 titles and has actively published 5000. They own a chunk of IUniverse, a publish-on-demand company. The CEO of Barnes and Noble, Stephen Riggio, is the Chairman of the Board for IUniverse.

Borders Group owns about 1100 stores in the United States and has revenues of about $3.8 billion. It operates Borders Books and Music and Waldenbooks. The chain is the outgrowth of two independent bookstores. Walden Books was established by Lawrence Hoyt in 1962. Borders Books was established by Tom and Louis Borders in 1971. K-Mart Corporation purchased Walden Books, which in turn purchased Brentano's Books in 1984. In 1991 K-mart purchased Borders Books and formed Borders-Walden Group and renamed it Borders Group, Inc. Borders Group Inc. then went public in 1995.

BooksAMillion was founded in 1917 as a news stand and has grown to 205 stores, primarily in the Southeast. They own a book distribution company, American Wholesale Book Company. Revenues were just a bit over $.5 billion in 2008.

Books are sold in a myriad of other locations besides bookstores, such as grocery and drugstores, at the airport, and in the big box stores like the aforementioned K-Mart.

Getting your book into bookstores is a critical step in how to get a book published.

Where Do Agents Find Clients?

2009-03-30T12:24:00.000-07:00

Referral from one of their other clients 39%
Direct contact by the writer 33%
Referral from editors and publishers 9%
Referral from other authors not their clients 8%
Referrals from other agents 5%
Attendance at writers’ conferences 3%
Other 3%

It comes as no surprise that referrals from their current clients were the top method cited. Publishing is a relationship based industry. Contacts are extremely important. A recommendation from someone whose opinion an agent trusts always is valued and receives prompt attention. Several careers of top selling authors were launched when another bestselling author took them under their wing and introduced them to agents or publishers.

What might be surprising is that as many as one-third of the agents said direct contact from the writer was the most common way they found new clients. There is most definitely hope for the budding authors out there, sweating over the last draft of that perfect query letter to send out to agents.

More on agents

2009-03-27T12:18:00.000-07:00

What Is The Most Critical Mistake Writers Make When Approaching Literary Agents For Representation?

Agents we surveyed responded as follows:

Poor writing or poorly prepared contact letter 44%
Inappropriate subject or genre for that agent 22%
Author’s hype, ego, arrogance 18%
Uneducated about publishing process 16%
Lack of knowledge about the book’s competition 8%
No platform for nonfiction 6%

Poor writing or poorly prepared contact letter

It comes as a surprise that agents report they get so many weak query letters. A number of books have been written on the subject of crafting a query such as Making the Perfect Pitch by agent Katherine Sands. Numerous writers’ conferences also cover this topic in depth. A query letter isn’t really that complicated to compose—particularly compared to writing a 100,000 word novel.

Inappropriate subject or genre for that agent

The second most popular response to the question reflects that the writers don’t do their homework when selecting agents to contact. Sending a wonderful query about your, say, cookbook, to an editor that specializes in placing mystery fiction is simply a waste of everyone’s time. Reference books such as Writers Digest Guide to Literary Agents point out very clearly what individual agents are looking for. Not that some of their preferences don’t seem odd, even a bit nonsensical. In one reference guide agent warned, “Don’t send me any right-wing Tom Clancy stuff.’’ Did this agent really mean to say he’d turn down the chance to earn 15% of the mega-royalties author Clancy has earned in his career?

Author hype, ego, arrogance

Agents report that creative people oftentimes have big egos. Hard to believe, isn’t it? Part of the problem stems from author’s awareness of how many other writers they are competing with for the agent’s attention. The temptation to use hyperbole to differentiate oneself can be overwhelming.

Of course, then some of the agents go on to contradict their colleagues by warning against over-selling and arrogance. “Trying to act more like a sales person, and not like a writer,” one agent said. “Hyping the agent. A straightforward recitation is much more effective.” But another one said the worst mistake was, “Not writing an engaging query.” “Writing dreary query letters describing the plot of the book.”

Now we’re starting to get confused. Do the agents want an exciting query, or that “straightforward recitation”?

Uneducated about publishing process

The author who is truly talented and dedicated to the craft of writing has a clear advantage right from the start; the overwhelming response from agents was that the quality of many submissions they receive is poor. The author who can articulate the market for his or her book is also way ahead. The author needs to think of himself as a small businessperson entering a new industry, not as a “literary artist.” They must be able to address the question, Who is going to buy your book and why? Authors who can show they will be helpful in selling the book once it is published are particularly sought after in today’s marketplace. Writers should not assume that an agent, or an editor at a publishing house, will automatically recognize who the target audience is for a book, or how large that audience might be.

Lack of knowledge about the book’s competition

The responses below point up something that many authors don’t even stop to consider what the competition for their book might be. They have no idea whether their book is really new and different (nonfiction) or whether it fits into a fiction category that is “hot.” Food product manufactures talk of the keen competition for shelf space at the grocery story. The same holds true in the bookstore shelves. Can you imagine where in the store your book might appear?

No platform for nonfiction

“Platform” is something everyone in the publishing industry is talking about these days—it should be nominated for the coveted “Industry Buzzword of the Year” award. Having a “platform” is one of the best means of getting your non-fiction book to the top of the agent’s to-do list. Platform simply means the built-in audience you have for your book, and the media exposure you can generate for your book, apart from the marketing done by the publishing house. If you can say, “I am a frequent guest on the _______” (nationally syndicated radio program). Or, “I publish an Internet newsletter that has 20,000 subscribers.” You are telling a publisher that a potential audience already exists for your book—lots of readers know who you are—and therefore you represent less of a risk to the publishing house, because awareness often translates into sales.

FAQ on book publishing

2009-03-08T12:33:00.000-07:00

What is the difference between mass market, trade paperback and hard cover? *********************************************** The way the books are produced and consequently how they’re priced. Mass market are the smallest in size usually 4” by 6”, they are the least expensive from $4.99 to $9.99, the binding is perfect which means the pages are glued in. The cover is paper. Trade paperback is 5” by 7”, mostly nonfiction titles, the prices range from $9.99 to $24.99. The cover is paper and the binding is perfect. Hardcover or hard back comes in various sizes, the pages are stitched to the binding, and the cover is cloth covered over cardboard. The price ranges from $19.99 upward. ********************************

More FAQs on book publishing

2009-03-02T12:32:00.000-08:00

Do I have to pay the advance back? *********************************** In most cases, no, only if you don’t deliver an acceptable manuscript by your deadline. If the actual sales of your book don’t reach the amount that was advanced, and 90% of books don’t, you don’t have to pay the difference back. Which is easier to get published fiction or nonfiction? ****************************************************** Nonfiction. Of the 172,000 books less than 10% were fiction. What category of fiction is the largest. ****************************************** Romance, 55% of all mass market paperback books sold are romances. What is backlist, mid list and front list? ******************************************** Backlist books are those written in the prior year(s) but still selling and still being published. Publishers select a small percentage, probably less than 5% of the books published in a season and actively promote those books in the front of their catalogues with full page descriptions including national promotion, book tours dates, advertising budgets, first print runs, as their front list. 95% of books published are mid list, in the middle of the catalogue, no ad budget, no promotions, no book tours.

Query Letters

2009-03-01T14:08:00.000-08:00

You’ve got your list of potential publishers or agencies, now what? The journey of how to get a book published begins with the query letter.

The first step for both nonfiction and fiction is the query letter. It is your chance to open doors to the book publishing industry, to literary agents and book publishers. Because of the volume of submissions agents and book publishers receive, it has become the standard way of make a contact, rather than sending out entire manuscripts. Absolutely, positively include an SASE (self addressed stamped envelope) for the agent/publisher to contact you.

Why you need a query letter and how to write it
You never want to send a full manuscript. It won’t be read. The standard method of contact is the query letter. A good query letter is short, one to two pages maximum.

The goal of query letter is to get the manuscript or book proposal requested by the literary agent or book publisher. Often they request just the first 60 pages, read that, then decide whether they want to read the full manuscript.

Think Like A Businessperson Trying To Make A Sale, Not an “Artist”

Writers tend to think they are the book publisher’s customers, as though the publisher exists to make their dream of being a published author come true. The truth is that book publisher’s real customers are the people who purchase and read books. So your goal as a writer is to demonstrate how you can help the publisher reach his or her objectives. In the query letter, you introduce both the specific literary work you want to sell them, and yourself, your background and accomplishments.

There is something unique, fresh, different about your book You are professional: you will be able to deliver the manuscript on time You are willing to expend effort to market the book You have the background, experience to write the book you are proposing It fits in the publisher’s area of concentration Your book has a large market

How many queries should you send out? Try batches of five or ten, then measure the response you get. You may need to tweak the content of your query letter.

Suppose you send out the first batch and no one asks for the book. What does that mean?

Suppose you send out ten. You get three polite turndown letters and no response from the other seven. What should you conclude?

1. The agent may not be taking on new clients
2. You have no talent
3. Your book has no market
4. You didn’t express yourself well in the letter
5. The publisher is swamped with submissions and didn’t have a chance to reply
6. The agent is rude and threw your letter away
7. The publishing industry isn’t interested in new writers
8. You contacted an agent or publisher that is not interested in your genre

Most likely one of the following is the case:

1. The agent may not be taking on new clients
2. You didn’t express yourself well in the letter
3. The publisher is swamped with submissions and didn’t have a chance to reply
4. The agent is rude and threw your letter away
5. You contacted an agent or publisher that is not interested in your genre

Important rule:
Not hearing a positive response should not be interpreted as REJECTION, of you or your work. It may simply mean you are not getting anyone’s attention.

Don't give up after the first 10, 20 or even 50 rejections. In this case persistence is a virtue in how to get a book published.

About The Authors
Brian Hill and Dee Power have written several nonfiction books including The Publishing Primer: A Blueprint for an Author's Success and The Making of a Bestseller: Success Stories From Authors and the Editors, Agents, and Booksellers Behind Them. They are also the authors of the novel, Over Time

2009-02-28T14:44:00.000-08:00

Frequently Asked Questions About Publishing

How long does it take to get a book published? ********************************************** On the average about a year. Six months to write a nonfiction book or revise a novel after a publishing contract has been signed and six months for production from editing the manuscript to finding your book in a bookstore. Why does production take six months? ****************************************** The actual production process of revising and editing, copyediting and proofing the galleys could be quicker. But enough time has to be allowed for obtaining endorsements, distributing ARCs (advanced reading copy) and bound galleys to reviewers and promoting the book to booksellers, libraries and such. Many major review publications like Publishers Weekly, insist that they receive the review copy at least four months prior to publication. Many newspapers will not review a book currently available. What is the typical advance and royalty? ******************************************* There isn’t one. The advance can range from $0 to over six figures. Royalties can range from 5% to 15%, based on the net price the publisher receives to retail. The percentage can also be on a sliding scale based on how many books have been sold, the more books, the higher the royalty percentage.Dee

2009-02-20T14:10:00.000-08:00

Getting a book published by a commercial royalty paying publishing house is a tremendous accomplishment. It has been said by Writers Digest that 24 million Americans consider themselves 'writers' and yet less than 5% have published anything.

When we surveyed literary agents (for our book) they said they agree to accept only one out of every 500 writers for representation. The most common reason they decline to represent a writer is poor quality of the writing. You know what didn't even show up on the radar as a reason to decline a new client? The fact the writer was unpublished.

About 15% of novels published by the commercial royalty paying publishing houses are debut novels. There is hope for new writers. There is no bias in the industry against new authors. There are just millions more writers trying to get published than the book industry can support. And it's not the publishers or even the booksellers who are holding back the flood gates. It's the writers themselves, they're just not good enough.

Before you flame me from here to h-ll and back. Think about it. There are millions of people who play golf, but only a handful of golfers who are good enough to be professional.

Millions of people sing, but only a few are good enough to sing professionally.

Millions of people dance, but few, very few, have the talent to dance professionally.

Having a book published is not an entitlement. Authors aren't published because they deserve to be published, because they worked hard or because they have survived misery and abuse. Books are published because the publisher has deemed there is a viable market for the work.

Does every good book get published? No. Are the best selling books the best telling books? No. Are authors who have been published better writers than those who haven't been? Not necessarily.

Don't sell yourself short. Hold out for a real commercial publisher.

Dee

http://www.BrianHillAndDeePower.com

Secured and Unsecured Credit Cards

2008-12-30T12:01:00.000-08:00

Credit card spending is something that the majority of consumers actively participate in. For some it's a matter of convenience. It's easier to use a credit card than worry if you have enough cash. Credit card purchases offer some recourse to the buyer/consumer if they feel they didn't get what they paid for. The charge can be reversed by the credit card company. Some people use credit cards because they want to, while others find themselves doing it out of necessity just to make ends meet.

When it comes to credit cards, there are basically two types available today. They fall into these categories: secured and unsecured credit cards. The exact credit cards you are eligible for will be dependent on your credit history.

An unsecured card is issued to consumers with (at least) a good credit rating. The 'perks' that are attached to it, also depend on one's credit score. Financial institutions determine the credit limit on each card after reviewing things like: debt to income ratio, time on the job, number of open accounts, late payments and missed payments.

This type of credit card typically carries a lower interest rate and fewer miscellaneous fees than a secured credit card. You do not have to pay anything upfront, other than a membership fee, and that can often be waived, in order to be issued an unsecured credit card.

On the other hand, a deposit of some sort is required in order to get approval for a secured credit card. Usually, this deposit will be equal to the credit limit issued. Although, in some cases the credit limit will be higher. It depends on the applicant's credit worthiness. The deposit is not used to make any monthly payments. Don't expect the creditor to do so. It can't be withdrawn for emergencies as long as the credit card account is still open.

Secured credit cards are issued to consumers with a fair to poor credit history. Individuals who have gone through a bankruptcy are typically eligible as well.
These credit cards have very high interest rates and higher fees attached to them. But, most consumers are more than willing to pay these extra fees, in exchange for a second chance at building good credit. Sometimes a secured credit card is the only option.

Many banks refund the initial deposit, after a pre-determined number of on time payments have been made… usually between 12 and 18.
Making timely payments will go a long way, when it comes to re-building credit. It is recommended that a secured credit card be used sparingly, to avoid repeated problems. Use it enough to re-establish your credit but make sure you make the payments on time every month.

How to Refinance with Poor Credit

2008-10-20T09:18:00.000-07:00

Mortgage interest rates have greatly decreased over the past seven or eight years, mainly due to the economy sagging. If you got your mortgage before the interest rates went down, you're probably envious of the people who have the same amount of mortgage you have, except their payments are far cheaper due to the lower interest rate. However, you don't have to be envious, as you can get the same interest rate they have—or perhaps an even lower one. All it takes is refinancing your mortgage, and you can accomplish this even if you have poor credit.

What Refinancing Is

Refinancing is can be used for debt consolidation, but also different. When you refinance your mortgage, you essentially take out a new loan to pay off the existing mortgage. This loan comes with a cheaper interest rate and—typically--cheaper monthly payments.

Refinancing can also help you to better your poor credit score, if you decide to refinance for more than the mortgage is worth and use that money to pay off other existing debt. This is known as wrapping your credit card debt into your mortgage, which is a bit like consolidation.

4 Steps to Refinance with Poor Credit

1. Shop Around. Many people believe that in order to get good refinancing, you need to have good credit. That's simply not the case, as in this economy, lenders are more willing to extend refinancing to those with fair or even poor credit. The key is to simply shop around and be willing to do a bit of research before you refinance.

2. Look for Lenders that Specifically Offer Refinancing to Those with Poor Credit. Some of the big name lenders only publicize that they refinance to those with good credit. But most of them also offer plans for refinancing for those with poor credit. Seek those out, and if you find a lender that says they only offer refinancing for people with good credit, ask them if they offer anything at all for people with poor credit. More than likely, they will, especially with how this economy is.

3. Don't Fear the Higher Interest Rate. Let's set one thing straight right now: you will not get the same interest rate refinancing as someone with a better credit score would. You should see a rate that is lower than what you currently have, though, and it's important to realize that even if it's a little lower than you'd like, you can always refinance again in a few years once you've bettered your credit score.

4. Apply Over the Phone or Via Mail. When you apply for refinancing over the internet, the application is usually reviewed by a computer, which can spell automatic bad news for refinancing if you have bad credit. That's why you should apply by the phone or via mail, as you'll be turning your application into an actual human being. Again, with how bad the economy is, and how desperate lenders to loan money, you'll have much more favorable results as the person who is reviewing the application will see that you are genuinely interested in getting a lower interest rate and in making your refinanced mortgage payments on time.

Hidden Credit Card Fees: Where to Find Them

2008-10-12T14:21:00.001-07:00

If you have above average credit, you probably have at least one no fee credit card. Credit card companies reward individuals, who have good credit, with this type of card. Should you be appreciative? In a word no.

All credit cards have hidden fees. Financial institutions issue the cards to make money. Money is made on both sides of the transaction. The merchant pays a per sale fee and a percentage of the total sale as well as a monthly service fee. And of course the consumer pays fees as well. These hidden fees alone add up to millions of dollars each year. Some of them include:

Cash advance fees. There are very few credit cards that don't charge for obtaining cash from an ATM. In reality, these cash advances are considered loans. So, not only do you pay a fee for withdrawing the money but you are charged interest from that moment on. Rates vary, but typically range from 3% to 24%. Your payment usually goes to pay off the balance first before any cash advance is paid back. And that's because the interest rate on cash advances is normally higher than that on merchandise and services purchases.

Pay-by-phone fees. If you usually pay your bills by phone, you may be charged a convenience fee, by your credit card company. Some credit card companies charge an even larger fee if you are paying your bill on the actual due date.

International fees. If you travel abroad and use your credit card, chances are you will be charged an international or foreign transaction fee. The only good news is that this fee is typically lower (1% - 3%) compared to other fees.

Late fees. Don't assume that if you get your payment to the credit card company on the due date that it will be processed that day. Late fees are regularly assessed on payments that were received on time, that way you are not reported for a late payment, but that the company processes the next day or so, that way they can charge the late fee. Check your bill because the due date can change without notice.
Convenience check fees. If you use the convenience checks that are usually included as a perk with many major credit cards, you are probably in for a big surprise. These checks are considered another form of cash advance, so there are fees attached to using them.

Worse yet, in the event that the check is returned because your available credit balance won't cover the amount of the check, you will be charged additional fees, as well.

Look closely at the terms and conditions your credit card company offers and make sure you understand the fee structures so you don't get caught paying extra money.

Do Credit Scores Really Make a Difference - 3 Tips to Improve That Score

2008-10-07T09:20:00.000-07:00

If you have ever wondered if your credit score makes a difference, in day to day credit situations, the answer is a resounding... yes. In fact, the lower your credit score the harder it will be for you to obtain any type of credit. However, it is not impossible as long as you are willing to pay the price.

The price you pay is the percentage of interest your loan or credit card will carry. Since financial institutions are in the business of making money, most don't think twice about issuing credit cards to individuals who have been deemed a 'high credit risk'. To say this practice is big business is putting it lightly.

Currently, the average credit score is 720. As a rule, if your score falls under 600 you will probably pay more in interest than someone with a higher rating.

Several factors are used to determine your credit score. They include: payment history, total debt owed, length of credit history, types of credit used and new credit.

The best thing you can do to improve your credit score is to pay your bills on time. As noted above, this is the most important criteria when it comes to determining your rating.

It is also important to keep your balances as low as possible. This will go a long way in improving your credit score. Why? When your credit cards are almost 'maxed out' you are considered a higher risk, because this shows you probably have a need to reach for a credit card, instead of paying with cash.
Just because you currently have bad credit doesn't mean that it cannot be improved upon. There are steps you can take to 'fix' the situation.

Unfortunately, this process won't happen overnight. Depending on the extent of your ailing credit it will take months, sometimes even years, until you are fortunate enough to have good credit. Look at it this way, it probably took quite a while for your credit to deteriorate... you can't expect the bad stuff to disappear in just a matter of weeks.

Step number one. Obtain copies of the credit reports. You will need one from each of the three major credit bureaus... Equifax, Experian and Trans Union. There are two ways to get your credit reports, at no cost. Every individual in the US is entitled to one free credit report per year, per credit bureau.
If you have already taken advantage of this offer, apply for a credit card. Obviously you won't be approved because of your credit rating, but the denial will entitle you to a free report.

Step number two. Determine a budget. This will give you some idea as to how much extra income you have that can be put toward your outstanding bills. It is always best to pay off higher interest credit cards first... even if the same amount of money will pay off two lower interest cards. You will end up saving money, in the long run.

Step number three. Change your shopping habits. Chances are impulse buying is what got you into debt in the first place. If you can curb the problem, it will make it easier to achieve creditworthiness in the future.

Follow these tips and you can repair your credit rating yourself.

Debt Settlement Scams: What to Watch Out For

2008-10-02T12:16:00.000-07:00

With the declining state of the current economy, more and more individuals are turning toward debt settlement as a means of eliminating their mountains of debt. Debt can cause stress and an overall decline in health. Creditors calling at all hours of the night even bothering you at your place of employment, no wonder many consumers reach a level of extreme desperation, even depression. Is there a light at the end of the tunnel?

There are many debt settlement companies that are completely legitimate. A debt settlement company will review your loans, your income, and assets, and determine a realistic level of payment for each debt you owe. They will then contact each creditor and negotiate a payment plan that's realistic.

Once you've made the lump sum settlement with your creditors you're out of debt. Debt settlement companies don't work for free. The fees can be based on a percentage of your loans, a set up fee, payment fees, and even closing fees.

Unfortunately, there are many debt settlement companies that are only after your money and have no intention of working with you or your creditors.

These companies exist only to bilk service fees out of desperate consumers who see no other way out. Instead of a light at the end of the tunnel there's only a brick wall.

They promise to contact your creditors in effort to lower your current balance and reduce your current payments as much as 50% or more. While legitimate debt settlement companies typically negotiate your balance scam companies offer empty promises, take your money and run!

One debt settlement scam that is gaining in popularity is the no hassle enrollment plan. This occurs when the company in question wants you to enroll in one of their plans over the phone, without any type of qualifying process or verification of your actual debts. Of course you have to pay a membership initiation fee and, most likely a monthly fee while they review your finances. If you decide not to continue in the program, too bad, there aren't any refunds.

Another popular debt settlement scam is one in which the company tells you that your creditors have agreed to the repayment plan and they haven't even been contacted. Or the settlement company has sent a letter to the creditor telling them the payments are being held in a trust account and have to reach a certain balance before they'll be paid. The consolidation company comes up with a monthly payment that the consumer pays them every month. A good chunk, as much as $50 to $100, goes to the settlement company as service fees. The money is held in a "trust" account until the balance reaches a certain level.

The consolidation company then pays the creditor. But if the creditor hasn't agreed to this plan, and most won't, they can continue to collect on the debt through whatever means legally available.

This type of plan could only make matters worse, because most creditors will not wait that long to receive full payment. In all likelihood, they could still take you to court.

Be aware that debt settlement is not the same thing as debt consolidation, or debt counseling.

Why Use a Debt Consolidation Company or Service

2008-09-30T12:41:00.000-07:00

Facing a mountain of debt? Consider using a debt consolidation company or service to aid you in rectifying situation. As the unemployment rate and the cost of goods and services continue to rise, more and more people are choosing this option.

A debt consolidation company does just that ... consolidates your unsecured debt into one payment. This makes it much easier to keep track of things.

Instead of issuing checks to several creditors each month, you simply issue one payment to the debt consolidation company. In turn, they distribute agreed-upon payments to creditors.

hen you work with this type of company they will contact your creditors on your behalf. They have the ability to negotiate with them, in regard to lowering your interest rates and removing fees for things such as late payments and over limit balances.

The majority of creditors are willing to negotiate because they would rather recoup some money rather than no money at all. This also will help to ensure that they will not have to take you to court, in the future. Doing so, means they would have to pay for their own legal representation.

In some cases a debt consolidation company can lower your payments, up to 50%. This means you will pay off your debt in half the time, saving hundreds and even thousands of dollars in interest alone.

There are Internet-based debt consolidation companies that will work with you in the comfort of your own home. You can easily fax required documents and make your payments online.

Double Your Living Space With Outdoor Garden Rooms

2008-09-24T14:37:00.000-07:00

Garden Rooms are an extension of your living room; and of course dining room, bedroom, and family room. A small house can seem to have doubled in space when the backyard, side yards and front yard are divided into livable areas each with a specific purpose.

If you're buying a new house that is in the process of being built decide now what the priorities are for your outdoor spaces. For example if entertainment is high on the list you'll need a level patio for dining with ample room for tables and chairs. Evening lighting extends the usability of the area well into the night. The dining room shouldn't be too far removed from the kitchen as getting the food to the area while it's still hot will be a challenge.

The first task is to measure the yard and draw a scale map. Include any trees, fencing, slopes or terraces. Note which way the yard faces. A yard facing the west will need some shade area from the brilliant late afternoon sun. A north yard has the advantage of shade but will be considerably cooler in the Spring and Fall months.

An automatic watering system cuts down on chores and can actually conserve water when it's preset. No forgetting to turn the lawn sprinklers off and flooding the garden. More than one station is efficient for watering different zones. Trees may only need to be water once very 10 days to two weeks while a perennial border needs at least an inch of water on a weekly basis. Two, or more, watering stations make it possible to accommodate both.

House builders can install the pipes needed for a watering system at the same time the plumbing for the house is installed. And they can provide for outside lighting as well. If you're considering a natural gas powered fireplace for evening fires it can be installed at the same time as the gas for the home's heating system.

If your home is custom built, expanding the plans to include the outdoor rooms shouldn't be a problem. And even if your home isn't being custom built, your house builder can lay the foundation for a backyard patio at a more cost effective rate if it's done at the same time as laying the foundation for the house.

After you've decided on your backyard priorities and have your scale map, sketch out where you would locate major hardscape features such as a gazebo, play yard for children, water features, and patios. Establish a budget for each feature and for the yard as a whole. Remember you don't have to complete the entire yard at once.

Flexibility is important. You may have your heart set on a huge swimming pool and then find out that since you have children, the pool will have to be fenced even within your own backyard. Or that bedrock may prevent excavation of a pool without expensive blasting.

When Should You Consider Bankruptcy?

2008-09-12T14:18:00.000-07:00

If you are in midst of a financial crisis, bankruptcy is just one option. There are no set in stone rules when it comes to filing. Everyone's situation is different and must be analyzed on a case-by-case basis. Keep in mind this final action will follow you for at least 10 years and perhaps longer. While it falls off your credit report, many loan applications ask if you've ever filed for bankruptcy. Court records are open to the public and many are easily electronically accessible.

Of course your credit report will reflect your financial actions and as such will affect your ability to get insurance, loans, and perhaps even employment.

If you are questioning the possibility of filing for bankruptcy, there are several things to mull over before making your final decision.

If you have a good job that provides you with a steady income, you are probably not the best candidate. You should seriously consider modifying your lifestyle in order to begin paying back your debts. The judge has the option of dismissing a case if he feels there is adequate income for re-payment, over a specified time period. This is especially true if the majority of debt is credit card related.

The court will review your income, assets, and debts before allowing the action to be finalized. If the judge feels that you could pay off your debts by selling assets or cutting back on expenditures your request may not be granted.

With the recent changes in the law, filing is quite expensive. If your case were to be dismissed, you would be out hundreds of dollars that could have been put toward your debt.

Many credit counselors will tell you that you should other actions first. They recommend selling items such as jewelry, electronics or even antiques and using the profits to pay down your debt.

They also recommend getting a second job, if at all possible. Of course, not everyone's schedule can accommodate this option, but if you have time the additional income will probably go a long way when it comes to paying off your creditors.

Bankruptcy will not allow you to keep assets that have been secured by a loan. The asset, such as a car or furniture, will have to be surrendered to the creditor. Some debt such as back child support and student loans won't be forgiven. You'll still owe them.

Whether or not you file for bankruptcy is the personal decision. Consider your options carefully, before making your final move.

Why Tenant Screening Reports are Important

2008-08-25T13:56:00.001-07:00

Investing in real estate can be a profitable way to increase your wealth in two ways. The first is simply the gain on the property when you sell it. The second is that if the property is leased it can generate an ongoing stream of revenue. In some cases that revenue stream can be enough to pay the mortgage on the property every month.

Most commercial properties depend on rental revenue as a primary factor in their income projections. The value of the property includes the discounted value of the rental revenue in the calculation, as well as the value of the building itself and land.

Residential property, especially single family homes, usually sell on a square footage basis and don't consider any leasing income in the determination of value.

Tenant Screening is a critical aspect of successfully managing a portfolio of residential rental properties. The wrong tenant can not only result in lost revenues but property damage as well.

Different states (and countries for that matter) have different rules, regulations, and laws which determine when and how a tenant can be evicted. The process can take up to a year. Not only do you lose the incoming cash flow from the rental payments, you have the additional expenses of paying an attorney to handle the eviction. A pre-leasing investigation known as a tenant report can help you avoid this situation.

While it's important to real estate investment companies to make sure that their tenants are financially stable, it's critical for individual investors. The loss of rental income from just one property can be devastating to an individual. The property can't be leased again until the current tenant is evicted for nonpayment.

Most investment companies have a number of properties and can absorb a loss on an occasional basis. Individuals who invest in residential properties that they intend to lease must complete the required due diligence to assure themselves that the tenant is credit worthy, ethical, and doesn't have a history of property damage, a criminal record, or prior evictions. A rental application is just the first step in this process. Tenant reports verify that the potential tenant is who they say they are by checking social security numbers, driver's license, prior addresses, and of course that they have the financial wherewithal to make the rental payments.

Tenant credit reports verify any bankruptcies, short pays, loans and credit accounts, all important factors which should be taken into consideration when signing a rental or lease agreement. A tenant who has not historically been financially responsible in the past has a much higher probability of being irresponsible in the future. In other words if there have been problems in the past with making the rental payments on time and in full, those problems will most likely continue in the future.

While in most cases the landlord won't be held liable for any criminal activities that take place on their premises, their insurance will most likely increase.

If you're considering investing in residential real estate and leasing the properties, there are services which will compile a tenant report for you. It's money well spent.

Loans for Business Start Ups

2008-08-22T15:33:00.001-07:00

Starting a business is pressure enough. Trying to find loans for business start ups is doubly difficult. Your local Small Business Development Center can help. The Small Business Development Centers are funded by the Small Business Administration and the local community colleges. Their counselors can provide you with direction on what types of loans are available for small businesses in your area.

Many cities have offices to help business start ups, as do many chambers of commerce. The cities themselves sometimes offer localized loan programs. These programs are to encourage businesses in disadvantaged areas of the city. Some of the city loan programs are tied to increasing employment in the area.

Another option is to contact your local SCORE (Service Core of Retired Executives) office, many of the SCORE participating executive come from the banking industry. They’ll know which bank is actively recruiting small business loan applicants and which banks aren't.

One word (okay more than one) about loans from the government. The US Federal government has an office called the Small Business Administration. The SBA does not make loans for business start ups directly but guarantees the loan to the financial institution who actually makes the loan. There are no grants through the SBA. Contact your bank to see if they participate in the SBA loan programs.

Don't overlook a credit card as a way to get a loan for a business start up. Many cards offer low rates for the first six months. If your personal credit rating is good you should be able to get a card (or two) to get your business going.

You might reconsider whether you actually need a loan for your business start up or whether there might be other ways to finance your business. You might consider trade and barter, getting merchandise on consignment, leasing equipment including office furniture, or obtaining 90 day payment terms for inventory you purchase.

Marketing Strategies

2008-08-17T09:11:00.000-07:00

Image

When customers think of your company and its products/services what will come to mind? Will your image emphasize high quality and exclusiveness, or perhaps friendly, and value oriented. Fast response, high tech, or customer service oriented? Young and on the edge or traditional and well established? The image you define for your company is then carried through in your marketing materials.

Distribution or how will you get your product to market? What channels of distribution will you use? Will you sell directly to the end user or wholesale the product? Will you use outside sales representatives or an in-house sales force? Commissioned or non-commissioned? Will you license the product and have someone else market the product for you? If a website will you develop an affiliate program, partnerships and links with other websites?

Promotion or how will you tell your customers your product is available? Word of mouth? Referrals? Advertising through print, TV, newspaper, radio, direct mail, websites, brochures, coupon, or co-op? Trade shows? How will you use publicity?

Search Engine Optimization (SEO) are the methods used to increase the ranking of a site in the search engines so it shows up high. That's important because people searching for a subject usually will choose one of the sites on the first page to visit, usually one of the first 3 or 4 sites listed. The higher a site rates the more traffic will be generated from the search engines. SEO Consultants use a number of techniques such as meta tags, directory submissions, and backlinks.

Website Design is important to every business whether they have a physical presence or are strictly an Internet based business. A poorly designed site can lose sales and chase visitors away. A site that uses too many flashy bells and whistles can come off as unprofessional. Web Site Designers use many tools to develop a site that represents your business.

Marketing Objectives

2008-08-15T14:34:00.000-07:00

Marketing strategy matters and its importance can't be overstated. Entrepreneurs have a tendency to fall in love with their product/service and just assume that everyone else will feel that same attraction. Too often all the company funds have been expended by the time the product is ready for market under the logic that very little marketing will be required once customers realize the product is available.

"Build it and they will come" works in the movies not in the business world. Search Engine Optimization, keyword strategies, website design and much more are part of marketing your company and product on the Internet.

Entrepreneurs often talk more about how much of the product they intend to sell rather than how they are going to sell it.

The Marketing Strategies consists of:

Marketing Objectives
Image Definition
Distribution
Promotion

Marketing Objectives

This is the nitty gritty of the marketing. The objectives should be expressed as either units sold, or revenues achieved, within a time period. Justify the objectives based on the size of the market, market trend, target market, and your marketing strategies.

More on Angels

2008-08-07T13:15:00.000-07:00

It has often been stated that angels do not have as much expertise with negotiations, especially with establishing a value for the company’s equity, as venture capital firms might. They may not have standard contracts or terms to present to the entrepreneur. It is important that the entrepreneur has an experienced attorney to consult with during the negotiation process.

Angels are remarkable in that they invest in companies at the riskiest stage of all, before the company has reached enough milestones to be able to say with confidence it will survive, let alone become a thriving, valuable business. Experienced angels know that they will likely not make money with the majority of businesses they invest in. But finding a “winner” can mean extraordinarily high returns on their invested capital, along with the satisfaction of watching a company they assisted grow and become a force in the marketplace.

Angels want both types of “returns”: financial plus a feeling of making a positive contribution. Entrepreneurs who wish to entice angels into investing must make sure they appeal to both these needs.

It is a mistake to not view angels as professional investors. They did not become millionaires by making naïve investment decisions. Entrepreneurs approaching angels need to be as thoroughly prepared as they would when approaching “professional” venture capital firms.

Another mistake is believing that there is an angel investor for every conceivable business idea. A business that will never be able to do more than provide a good living for the owners is not a suitable candidate for angel investment. They seek companies that have a good chance of growing rapidly, gaining significant market share, and have barriers to competitive entry—pretty much the same thing venture capitalists look for.

Angels do not want to invest in a yogurt shop in the strip mall. Now if you came up with a new formula for yogurt that could be franchised, it might be a different story.

2008-08-04T13:11:00.000-07:00

Angel/Private Investors

When an entrepreneur says, “I need to go out and get venture capital,” what does that really mean? In one sense, ‘venture capital’ could be defined as any type of financing for an early stage company. But entrepreneurs who believe that they need to go out and contact Venture Capital Firms for their capital needs, can be starting down a long and frustrating path. Many of these firms are not terribly interested in seed stage or pure start-up companies, preferring to jump on board when the company has achieved a certain number of milestones in product development and securing customers for the product. And no amount of persuasion by the entrepreneur can get the Venture Capital Firm’s partners to deviate from their investment focus.

So who does assist the usually cash strapped start-up entrepreneur?

The financial life cycle of a company often looks like this:

Stage Need for Capital Amount Needed Likely Source

Seed Organizing company $ 50,000 Friends, family, yourself

Start-up Product development, launch $500,000 Angel investors

First stage Market penetration $2 million Angels & Venture Capital Firms

Second stage Expansion $10 million+ Venture Capital Firms

Wealthy individuals, often termed angel investors, are by far the most important source of equity capital for early-stage companies. Typically, these individuals have been successful entrepreneurs themselves, and as such have a keen understanding of the trials and tribulations of building a company. In the ideal situation, an angel investor, or a group of angels, can provide much more than financing for an entrepreneur: the angels can often bring organizational, technical, marketing, and financial expertise. And of critical importance, the angels often have valuable contacts with potential customers, vendors, and even sources of capital for the next stage in the company’s development.

Angels vary widely in their investment experience and their approach to working with companies they invest in. Some invest only in companies related to there area of expertise; in other words, an angel who built and sold an enterprise software company would look for other enterprise software companies. In general, however, angels are willing to consider investments in a broad range of companies: high-tech, traditional or “old economy” companies, distribution, manufacturing, service.

From the entrepreneur’s standpoint, there are two major difficulties with obtaining angel financing: how to find the angels in their local community, and how to handle the negotiations. Finding them is difficult because, in the past angel, investing has been done on an extremely informal basis.

The entrepreneur’s company was referred to the angel through a mutual friend or business acquaintance. And angels do not seek publicity for their investment activities, for fear they will be overwhelmed with entrepreneurs seeking capital. There are no reliable directories of individual angels as there are for venture capital firms. For the entrepreneur, this means that the best way to find angel investing is through diligent networking in their local business community, attending events and letting people know that the company is seeking financing. Contacting angel networks, and participating in angel online matching services, both described below, are additional ways to meet angel investors.

How Much Capital Do You Need?

2008-08-01T13:08:00.000-07:00

As much as I can get! This would be the answer readily shouted out by most entrepreneurs. The fact is though, both over and underestimating the amount of capital needed to fund a business can have serious negative consequences.

Underestimating what you need can cause problems ranging from having to go through the whole time consuming fund raising process again, to having to shut down the company because funds have run dry. Having to go back to the original investors and ask for more money often undermines the entrepreneur's credibility with the investors and can cause a significant dilution in the founder's ownership.

Obtaining more than enough capital may seem like a blessing at first, but it can breed a lax attitude toward expense control. "If you have it, spend it," is not an advisable motto for a new company. If the investment takes the form of equity, raising too much money means that the founder's share of the business was reduced more than was necessary--and this violates one of the maxims of entrepreneurship: hold on to those equity points!

Typical advice given to entrepreneurs is to do a cash flow projection, or cash budget, and then add 10%, 20% or even 50% to this amount, for "contingencies." These contingencies are all the things that can go wrong in a start-up venture, all the unfavorable events that can negatively affect results.

Contingency planning is a skill that does not come easily to all entrepreneurs--even those with a finance background. How do you get the cockeyed optimist (what you absolutely must be to even conceive of the idea of the starting a company), who expects the best, to plan for the worst?

Money and your Startup Business

2008-07-29T12:46:00.000-07:00

What is the most common reason small business fail? Lack of adequate funding. Money may not buy happiness but it is critical for the success of any business. Cash is king and don't confuse cash with profits. Your income statement may show a healthy profit and your bank account show a deficit.

Say Startup Finance to most entrepreneurs and they immediately think of venture capital. Venture capital isn't appropriate for probably 99% of startups. In 2007, according to PriceWaterhouseCoopers venture capital survey, only 3,914 companies received venture capital in the United States, and the majority of the funding was invested in established companies.

The August issue of Entrepreneur magazine states that $29.4 billion was invested in 2007. Sounds like a lot, but private investors, or angel investors, account for about ten times that investment amount and in quite a few more companies. Angel investors also invest in earlier stages, often when there really isn't a company, just the management team and a business plan.

Since angel investors have no reason to report their investments to the public, it's difficult to estimate exactly what their contribution is. However, the Center for Venture Research at the University of New Hampshire says that angel investors invest 30 times more money than VCs. And while the average investment per company for venture capital is roughly 10 million dollars, angels invest about $75,000 per company per investment according to a study done by Profit Dynamics.

So why do entrepreneurs often focus their capital raising efforts on venture capital firms? Probably the most common reason is that they're easy to find. Most VCs have websites where they not only highlight their previous investments but outline what types of companies they currently are looking to invest in.

Besides venture capital and private investors, there are other sources of capital for startup businesses. Loans, family and friends, and credit cards comprise some of the more easily accessible sources of capital. Many small business people use the equity in their home to fund their business. Or use a portion of their savings or equity investments.

What about Business Startup Grants? According the Small Business Association there are no grants for businesses. What they do offer are SBA backed loans that can be acquired through traditional lending sources. Any grants awarded by the US government are on a competitive basis for specific purposes and usually are related to research.

Private foundations offer grants, but most often the grants are awarded to nonprofit organizations.

Startup Funding is important to the long term success of your business.

Can a person with Poor credit get debt consolidation?

2008-07-27T13:34:00.000-07:00

Since debt consolidation features lower interest rates, it naturally relies on the credit score of the individual. It's easy to see why many with poor credit think they will not qualify for a debt consolidation loan of any kind. The thing is, everyone can qualify for a loan, regardless of their credit score, as there is always at least one lender who will loan the money. So if you have poor credit, yes, you can get a debt consolidation loan.

How to Get Debt Consolidation with Poor Credit

Unfortunately, getting debt consolidation with poor credit is not as easy as getting it with good credit, so you're going to have to do a bit of searching around to find debt consolidation loans. You can try looking online for lenders by using Google or any other search engine and typing in terms like “debt consolidation with poor credit” or “debt consolidation poor credit”.

Once you find a few lenders offering debt consolidation for those with poor credit, take some more time to research each of them. Make sure they're legitimate and aren't in trouble with Better Business Bureau or any credit agencies. To do this, simply type in the name of the lender followed by the term “review” and you should find a ton of information.

You should keep in mind that because you have poor credit, you'll usually have a higher interest rate for the debt consolidation; however, it will still be lower than the credit card interest rates themselves, so you'll still end up saving money.

Is debt consolidaiton possible with poor credit?

2008-07-21T09:15:00.001-07:00

Is debt consolidation possible with poor credit?

You've dug yourself into quite a hole with several thousand dollars of debt on 5 or 10 different high interest rate credit cards. Your credit score is very poor due to all the debt you've accumulated and the missed payments that have ensued. Given the scenario, you may think that you have a long road ahead of you before you'll get out of debt—and that's definitely true. You might be thinking about debt consolidation and whether or not it's even possible with poor credit. You'll find out about it here.

What is Debt Consolidation?

If you've only heard of debt consolidation, but don't know what exactly it is, it's time to learn. In simple terms, debt consolidation is a technique of paying off debt in which the person who is in debt takes out one large loan to pay off all other loans. The newer, bigger loan is typically a much more secure loan featuring a cheaper interest rate and cheaper monthly payments than the individual loans would have. As a result, hundreds of dollars can be saved every month when using debt consolidation as opposed to paying loans off individually.

Boost your Management Team Part 2

2008-07-16T12:20:00.001-07:00

Business Appraisers can tell you how much your business is worth and why. If you're considering refinancing, that business appraisal can help you determine how much debt the company can carry.

If you're considering selling your business the business appraiser can provide a ball park valuation. Of course the buyer will want to conduct their own due diligence and may even hire their own independent business appraiser, that's to be expected. The appraisal you have completed gives you a bench mark to start negotiations.

A Business Plan Consultant can expedite the business planning process. If you're looking for investors a well thought out concise business plan is critical. If you're considering starting a company, a business plan will help you improve your chances for success and avoid making serious mistakes. You may be the only one who reads this plan, although you should have input from a number of other people with business experience. A business plan is an important ingredient to the success of a start-up business.

Using Consultants to provide services you need on an outsourcing basis can be much less expensive in the long run than hiring someone as an employee. The consultant probably will cost more on an hourly basis but you only need their services on a project basis. Consultants can provide programming, technical assistance, and communications expertise, just to name a few areas.

When hiring a consultant, or consulting firm, ask for references and check those references. A good place to start the search for a consulting firm is to ask your attorney and accountant for recommendations.

Boost your Management Team Part 1

2008-07-12T13:37:00.000-07:00

A key element to entrepreneurial success is choosing the right people to be part of your management team. In fact, angel investors and venture capitalists both view strength of the management team as the major determining factor in whether they are willing to make an investment in the company. But it is also important for an entrepreneur to have outside advisors he or she can trust and rely on, an accountant being one of these. Even a start-up company with little or no revenues needs to have a good accountant available, as well as an attorney who has experience with young businesses.

Accountants are important members of a company's team. If you're a start-up or small business you may not have the resources to hire an accountant full time. There are software programs that can do most of the data entry but it's still a good idea to hire an accounting firm on a consulting basis to oversee your accounting systems, processing, and tax returns.

Attorneys are just as important, perhaps more so than accountants. An attorney can guide you to select the most appropriate way to set up your business. The best time to retain an attorney is before you need one. It's worth the money to know that if something comes up you have a legal expert who is familiar with your company. Attorneys have valuable contacts with venture capital firms and private investors. They know what is reasonable in a private offering , what isn't, and what must be included.

An attorney can also help you protect your intellectual property, trademarks, trade names and trade secrets. While it may seem expensive to have an experienced attorney on your management team it will avoid problems later.

More tomorrow.

Is franchising for you?

2008-07-09T15:25:00.000-07:00

Wouldn't it be great if someone handed you a successful business that came with an owner's manual that told you exactly what you needed to do, when to do it, and how? Well that's pretty much what you get when you buy a franchise. You probably recognize the big names in franchising like McDonald's, or Holiday Inn, but there are lesser known names and franchises that can be started slowly and with much less cash.

A franchiser sells the rights to use their business, name, practices, and methods. When you buy a franchise you are basically buying a clone of a successful business and the method to reproduce that success. In exchange you usually make a cash payment up front which can range from a few thousand dollars to substantial amounts of money. You may also have to pay an on-going percentage of your revenues to the franchiser.

Every kind and type of business has been franchised. For example: there are pet franchises for those who love animals and want to use that love and knowledge in a business. If the perfect cup of coffee makes you giddy with delight you might want to consider coffee franchises. Or perhaps you like to get down to the nitty gritty and consider cleaning franchises . If you want to see a wide variety of examples, Entrepreneur Magazine has an annual issue devoted to the top 1000 franchises.

Different franchises vary as to how much freedom you have to run your business. Some franchises retain control of how you operate the business, how, what, and when you advertise, and the quality of the product. They can even mandate what suppliers you must purchase from. Check the contract to make sure you understand what you can and can not do.

A franchise can be a profitable business and has a proven track record, but they don't run themselves you'll still have to work, but at least you'll know that your work has a good probability of paying off.

Commercial signage on cars

2008-07-09T14:28:00.000-07:00

It sounds like a good idea: put a vinyl sign on your car advertising your business or website. It works if you have a short and snappy url, business name, or phone number and your car is exposed to lots of other cars or pedestrians. Of course if you don't drive much and your car stays in your driveway or garage it's not going to get a lot of visibility.

There is a hidden problem with placing advertising on your vehicle. Some states will classify your car as a commercial vehicle if it has signage on it. Car insurance for commercial vehicles can be much higher than for private use vehicles. There are also ramifications if you get in an accident with the car, your business could be liable for any damages as well as you personally.

Complete auto insurance coverage is important, whether you use your car in your business or not, but it's vitally important if you do. There can be a fine line between using a private vehicle to conduct business and a commercial vehicle. For example you may use your car to get to your place of business and perhaps conduct errands such as picking up office supplies, but that doesn't necessarily make it a commercial vehicle. If your car is an integral part of your business, you make deliveries, pick up clients, or provide transportation then it would be considered a commercial vehicle.

Ignorance is not bliss in this case. If you're in an car accident and the determination is made that your vehicle was not properly insured as a commercial vehicle you may not be covered at all. Your home, savings, any assets, even your business could be at risk. Check your state regulations and talk with an insurance agent. If you would prefer to acquire insurance without an agent you can still do that.

Shop around for the coverage you require. You might be more comfortable with higher deductibles for damages but lower premiums. Your driving record, credit rating, make of the car and how many miles you drive each month all affect your premiums.

4 Options to Get a Credit Card Even with Bad Credit

2008-07-06T13:49:00.001-07:00

When you get turned down for a credit card because of bad credit, it's really not the end of the world. You still have many options, as you're about to find out.

Option #1: Your Credit Union/Bank

Most credit unions and banks now offer special credit cards for their customers. If you have a checking or savings account with a financial institution, check with them and see if they offer a credit card. If they do, apply for it. Chances are, you'll get accepted, albeit with a low credit limit, simply because you've proven yourself worthy based on your history with them. If, however, you've overdrawn your checking account, you may want to wait a few months and make sure you have a good history with them before applying.

Option #2: Local Stores

Generally speaking, getting a credit card from a place like JC Penney or Sears or Target is frowned upon because of the high interest rates these stores have for their credit cards, but for those with bad credit, they really don't have anything to lose by applying for a card with a store. In fact, it can be the start of re-establishing credit and getting a better card in the future. More than likely, if you apply for such a credit card, not only will you be accepted, but you'll probably get a decent credit limit. As long as you pay the balance in full, it'll be a good deal for you.

Option #3: Co-Signer

A lot of people with bad credit overlook one fact: if they get someone with decent/good credit to co-sign with them for the credit card, they'll most likely be accepted for even those credit cards that require good credit. Most people don't like asking someone to co-sign with them, as it can make them feel as if they're unworthy, but it is really a solid solution provided you're willing to make payments on-time every month on the credit card. If you have a spouse, getting a co-signer should be very easy.

Option #4: Secured Credit Card

Because of the fact that so many have bad credit, a lot of credit card companies now offer something called a secure credit card. A secured credit card is a credit card that is backed by the borrower's own savings account, so that if they spend too much, it comes out of their own money and not the company's money. While secured credit cards aren't for everyone, they're a great way of helping someone with bad credit to re-establish themselves.

Forex and the Stock Market: What are some differences?

2008-07-02T12:36:00.000-07:00

Volatility is much less with Forex.

An individual stock can increase or decrease in value tremendously during a one day period. The stock market itself can climb 100 points and then spiral downward in a two day period. Currencies change much more slowly. On a day by day basis, volatility of the major currencies is less than 1%. Profits are made on fractions of a percentage point in change in value.

Buy in pairs: sell one currency and buy another one in the same transaction

Forex trading is done by selling one currency to buy another currency in the same transaction at the same time. Stocks are sold one stock at a time. Each transaction is independent and has no effect on the other if more than one stock is bought and sold at the same time.

Buying on margin

Trading on the margin or leveraged trading, as it is also called, means that you are not required to deposit, or put up, the full value of the trade or position. When trading stocks you can usually only buy 50% of the value of the stock on margin. The remainder has to be deposited in your brokerage account. The brokerage house charges interest on the balance. Trading through a Forex trading platform on the margin means only a small percentage of the lot has to be deposited and there is no interest charged. In fact up to 200 times the value of your account can be leveraged. In either case the buying and selling on margin can substantially increase profits and losses.

There is no centralized exchange system for forex trading. It's all OTC, over the counter. The transactions between the seller and buyer is conducted by telephone or via an electronic network. There are websites that provide the required network or you can buy software.

24 hours a day from Sunday through Friday

Stock markets open in the morning and close every evening. Not so with forex. The trading begins on Sunday 5:00 PM ET and continues until Friday 5:00PM ET. FX begins in Sydney as the business day starts then continues around the world as each market opens. Tokyo is first, then London, and New York. Forex traders don't have to wait for a market to 'open' to respond to currency fluctuations. They can react to changes caused by economic, political or social events in real time as they happen.

Forex: Is it for you?

2008-07-01T07:45:00.000-07:00

Forex trading is the buying of one currency and the selling of another at the same time. The trading is always done in pairs. There is no physical market where the exchange takes place. The transaction occurs between banks, corporations and individuals. One entity is buying and the other selling. The market is open 24 hours a day and only closes for 48 hours from Friday to Sunday.

About 90% of the foreign exchanges are for profit, while 10% are completed by companies who have sold their goods and services in another country and want to convert that currency back to their own.

The internet has made it possible for individuals to compete in forex trading through online trading platform and using a Forex broker. Minimum accounts can range from a few cents to thousands of dollars.

4 Options to Get a Credit Card Even with Bad Credit

2008-06-30T17:32:00.000-07:00

When you get turned down for a credit card because of bad credit, it's really not the end of the world. You still have many options, as you're about to find out.

Option #1: Your Credit Union/Bank

Option #2: Local Stores

Option #3: Co-Signer

Option #4: Secured Credit Card

2008-06-27T08:34:00.000-07:00

With gas prices escalating it seems there ought to be a way to decrease the money we spend on gas. Not the science fiction method of converting your car to run on water instead of gas, or buying an expensive hybrid car that runs on electricity and gas. If you did that you'd have to own that car for the next bjillion years to come out ahead on the gas savings.

One method of saving on gas is to bunch your errands all into one trip. For example if you take your kid to school, also do your grocery shopping, pick up the dry cleaning, and return the books to the library on that same trip. Even better is to get a car pool going in the neighborhood where you only have to drive to school once a week. Picking up the other children that one time a week will use less gas than driving to and from five days a week.

When you're waiting in line at the drive up window at a fast food, bank, dry cleaning store. Turn off the engine if you'll be waiting more than a few minutes.

One way that will help you earn money on your gas purchases thereby decreasing the money you spend on gas is to get a gas card. Gas cards are credit cards that reward you for your gas purchases and other purchases. Every time you use the card you can get cash back, earn reward points for gas purchases. It's something to think about.

2008-06-26T10:10:00.000-07:00

Even With Bad Credit, You Can Get An Auto Loan

Getting an auto loan for people with bad credit isn't as hard as you might believe. An auto loan is a secured loan, which makes it a little easier. With a car loan, the lender will hold on to the title to the car until you have paid the loan in full, so they at least can repossess the car if you don't pay as agreed. Hopefully, that won't be the case, and you can use the auto loan to help rebuild a good credit history.

A lender will determine you can pay. They will check to make sure you're employed, and also that you can pay your current debts and the new loan out of your monthly salary. Expect to demonstrate at least three or four months of employment with your current employer, and some employment history before that. A lender will calculate what percentage of your income is already going to pay off debt - and as a guideline they will look to see if your debt is under 30% of your monthly paycheck. Every lender has their own in-house guidelines to follow. Remember that even though a lender has the car as security for an auto loan, they are not in the car sales business, and they would rather not repossess your car if at all possible.

If your situation is fairly stable, and you have regular employment, and are able to pay the debt you have now, then even if your credit is less than perfect, you will probably qualify for a car loan. Again, because a car loan is secured against an asset, the car, youmay qualify even if you have foreclosure, bankruptcy, or other serious credit events on your credit report.

When you're working to rebuild some good credit, getting an auto loan for can be just the ticket. You'll need a working vehicle to keep your job of course, and if you need a better car, getting a loan can help. You will have to make sure you pay the loan on time each month to re-establish a good credit history.

If you are stuck with a poor credit history, don't worry. Several lenders in the marketplace realize that many people with bad credit need cars. They may charge you a higher interest rate on the loan, and perhaps an application fee. You'll also need money down on the loan. One loan term to watch out for is a prepayment penalty, which means you'll pay a hefty fee if you pay off the car loan early - which could happen if you need to resell the car. Avoid prepayment penalties whenever possible.

It's also best to check with your bank and other lenders before turning to the car dealership for a loan. Most car dealers will not offer loans for individuals with bad credit, but the ones who do will likely offer very high rates and fees. Use them as a last resort.

Getting into a new car with an auto loan for people with bad credit is certainly possible. Just use caution when taking on new debt, and make sure you pay if off on time to rebuild your credit score.

Tips for Investing in Foreclosed Properties

2008-06-25T13:23:00.000-07:00

Thanks to the explosion of the real estate market a few years ago and the amount of people who are now defaulting on their home loans, the real estate foreclosure market is booming. Unlike a decade ago when a foreclosure was almost certainly a broken down/condemned piece of real estate, now foreclosures are just as likely to be beautiful and well kept homes! This makes investing in foreclosed properties incredibly lucrative.

If you are interested in investing in foreclosed properties, here are a few tips to help you get started:

1. Do your research! Before you jump off the high dive, make sure you do your research on each and every property that you are thinking of investing in. If you can afford it, you should have each property professionally appraised before submitting an offer on the foreclosed property. Make sure that you aren't going to be investing in something that is going to be more of a "fixer upper" than you originally thought.

2. It is better to buy a foreclosed property at public auction. This is because sometimes homeowners who are facing foreclosure will take the money they make from selling it to you and, instead of using it to pay off their current home loan; they use it to purchase a new home. This means that, technically, the bank could still seize the house you just paid for and you have little chance of recouping your investment.

3. Investing in foreclosed property shouldn't be looked at as a full time job, especially if you are just entering into the field. It is best to start investing in foreclosed properties while you still have a full time job or some sort of steady income to ensure that you are still able to pay your bills while you work on your foreclosed property and wait for it to "flip."

Investing in foreclosed properties isn't for the faint of heart, but it can prove to be quite a profitable business! Make sure that you do your research and learn every thing you can about the field before you get started!

Venture Capital Conferences

2008-06-23T12:34:00.001-07:00

Venture capital forums/conferences

Most regions of the US have a least one of these conferences annually. They are often sponsored by chambers of commerce, economic development agencies, technology associations, venture capital firms, or local venture capital clubs.

The forums are usually a combination of networking, speeches by experts in the field of raising capital, and presentations by a carefully selected group of companies seeking capital.

It is hoped by the conference organizers that a significant number of attendees to the event are venture capitalists or angel investors, or others who at least have access to investors.

Entrepreneurs are most interested in being included in the roster of companies making presentations. They need to keep several things in mind: there are usually hundreds of applicants to a well-publicized conference and only a half dozen or so companies selected to make presentations. The odds of being chosen are slim.

A public forum is not the best venue for some entrepreneurs who may not be comfortable with performing to an audience. Great care must be taken in organizing and practicing the presentation. If the audience loses interest in the first few minutes of the presentation, it is unlikely the entrepreneur will be able to get their attention. It is best to hammer home a few very important points rather than trying to present an entire business plan, or describe a complex technology in great detail. The most effective presentations tell the audience:

• What is truly great, unusual, groundbreaking about the business concept
• How this will result in investors being able to make money

These may sound like simple points, but in a large number of these presentations, the audience walks away not even understanding exactly what the company does.

The real benefit to these events for most entrepreneurs comes in the form of networking opportunities and social events, being able to introduce your company or your business idea to people who may have money to invest or know of people who do. Ideally, you may find someone who is so excited about your company’s prospects that he or she agrees to be your “champion,” recommending your company to potential investors and perhaps willing to help you in a mentoring capacity.

More on venture capital

2008-06-18T02:33:00.000-07:00

Venture Capital Leasing

Some companies specialize in providing lease financing for equipment to high-tech start-up companies that wouldn’t ordinarily qualify. The financing can be provided at a higher fee to offset the risk and/or the finance company can have the option of purchasing stock at a preferential price if the company goes public.

Venture Capital Online services

Many intermediary-type firms have an Internet presence, which expedites the process of contacting them. Some perform a basic matching service, bringing companies and investors together. These services are not as prevalent as they were in 2000 and early 2001. As the environment for venture capital becomes more positive, more will pop up again. It is debatable whether established venture capital companies actually use these types of services to begin with. Most VCs have more deals and potential investment than they know what to do with.

Venture Capital for Your Company

2008-06-12T12:32:00.000-07:00

Venture capital funds are actually money management firms, sort of like mutual funds. Except instead of offering shares to the public, the partners of venture capital funds go out and raise money from large institutions such as pension funds. Most Venture Capital firms (VCs) are organized as limited partnerships. The partners in the firm may have some of their own money in the fund, but most of the money comes from outside sources, the limited partners. This is the major distinction between a venture capital fund and an angel investor: The venture capital fund invests money it has raised. An angel invests money he/she has earned.

In recent years, the average size of investments made by VCs has risen considerably. It is not unusual for $10 million or more to be invested in one company.

When venture capital funds raise the money from the limited partners, they do so on the basis of agreeing to invest in certain types of companies. Often the firm has a focus on one type of technology, such as networking systems. Many times, the fund will only allocate a limited percentage of its capital to early stage investments, which are inherently riskier, and devote most of it to companies that are already well on their way to success and just need capital to expand more quickly.

Entrepreneurs can save themselves a great deal of time by studying the types of investments the various venture funds have made in the past and only contacting those that are a close match with their entrepreneur’s company.

The good news is that there are many excellent directories, some online, of VC firms that describe the firms’ investment focus in great detail. Nearly all the major VC firms now have web sites that provide a wealth of information about how to contact them and about what investments they are particularly interested in making.

When preparing a business plan or executive summary to send to a venture capitalist, it is important to focus on the most important factors VCs uses to evaluate investments:

Quality of the Management Team
Size of the Company’s Market
Proprietary, uniqueness, or brand strength of the company’s product
Potential return on investment (ROI)
Company’s potential for growth

Which of these is the most important factor? Hands down, the Quality of the Management Team.

2008-06-04T15:16:00.000-07:00

Does the term refinance loan scare you off. Here are a few tips that might make it a little less scarey.

Be realistic as what can be accomplished and what can't. Most mortgage lenders require that the appraised value of the home be at least 20% higher than the mortgage. That gives them a cushion in case values drop. The appraisal is based on what comparable homes in your neighborhood have sold for. That's different than what homes are listed for sale at.

Check your credit scores. Don't be unpleasantly surprised. If there are errors, such as a debt showing up that has been paid, get it cleared up before applying for a new mortgage. There is refinancing available for those with less than stellar credit but it's not at the low rates you might be expecting. You can check your credit scores online but you do have to sign up and provide some personal information. It's not instantaneous. Your identity has to be confirmed before you have access to your reports.

Don't wait until the last minute. Prepare the materials you think you'll need ahead of time. Most mortgage lenders want verification of income through tax returns, or paycheck stubs. They'll also want copies of bank and checking accounts, stocks, bonds, and other assets. If you're considering a major purchase put it off until you've refinanced your mortgage. Don't use your credit card or savings to finance that purchase.

Know what you want. There are so many alternatives from the standard 30 year mortgage. Mortgage rates and terms vary. Don't let yourself be talked into terms which may sound good in the short term such as an interest only loan, but may turn out to be trouble in the long term. Refinance at a level that's comfortable for you. You may think that taking out a loan that is as high as possible is the best course of action, but remember you'll have a bigger monthly payment.

Shop around and compare mortgage lenders before you get mortgage quotes. Check the fees they require, time it takes, application procedures, points, and interest rates. It's amazing the variance you can find.

Part 2 Tips to Pay Off Credit Card Debt.

2008-05-14T15:42:00.000-07:00

Your next step is to set a target amount of money that you can pay in addition to the minimum payments. Without getting all tangled up in a complicated math explanation just keep in mind that for every $100 over the monthly minimum payment, you'll be erasing $1200 a year of debt. It will still take about 10 years to pay off the $10,000. But $100 a month isn't that much money if you break it down. If you eat lunch out every day at work that's $100 right there if you switch to brown bagging your own lunch. And that's what you'll have to do next. Figure out where you can find some extra cash.

If you rent movies two or three times a week, get them from the library for free instead. Switch from department store clothing to big box stores. Use coupons to save on groceries. Have vegetarian meals like pasta twice a week instead of meat. Use chicken instead of beef. Once you get started on where you can cut your budget you'll come up with lots of ways. Some of them entirely painless.

Put any cash gifts toward your credit card debt. If you get an income tax refund pay down the debt. Use your raise to pay off even more debt.

Some people are so overwhelmed by their debt that even if they implement the above steps, getting all that debt paid off isn't really possible without some help. If that's you, you still have a couple of options.

Debt settlement is using some of your cash and getting your creditors to agree to take the lesser amount as payment in full. That will hurt your credit rating and there may be some income tax consequences but the debt and the monthly debt payment will be gone.

Credit counseling is a possibility. The counseling service will set up a reasonable, although tight, budget and use every extra dime to go towards debt payment. They'll negotiate with each creditor to adjust the interest rate, waive late fees, and sometimes decrease the amount owed.

Consolidation loans are another option. In most cases you'll use the equity in your home to secure the consolidation loan. Each of your creditors will be paid and you'll have a fresh start.

No matter what you do, at least do something. That credit card debt won't go away by itself.

Credit Card Debt: Several Tips to Help You Pay Down Your Credit Card Debt

2008-05-14T15:39:00.000-07:00

This is the first part of the article.

Summer vacation is just around the corner and you're still trying to pay off that holiday buying spree. Your credit cards are just about maxed out. Is there anything you can do? Yes. Here are tips for help pay off credit card debt.

It may seem extreme but the first thing you need to do is to put those credit cards away where you can't get at them easily. Only carry one card with you and use it only for emergencies. A café latte isn't an emergency even if you're tired and are having a caffeine attack. Either is being low on gas. An emergency means that you've had an accident and need medical care. Or your roof caved in.

Now drag out the most recent credit card statement for each account you have. If you have a student loan, store credit, bought furniture on time, or other unsecured loans get those statements out as well.

Make a chart listing the name of the account, interest rate, minimum payment, outstanding balances, and payment due date. Add all the minimum payments together to see what your total debt payment is each month. And add all the outstanding balances together as well. You might be shocked to see just how much money you owe and how much you have to pay each month.

Let's say for example that you're like the average family with $10,000 of credit card debt. If you only make the minimum payments it could take you up to 20 years to pay off that $10,000 because of the very high interest rates credit cards carry. If you have 5 cards each with a minimum payment of $50, you'll be paying $250.00 every month and not making much progress towards whittling down your balances.

Should You Sell Equity to Raise Cash for Your Company

2008-05-05T13:11:00.000-07:00

Equity capital is money given for a share of ownership of the company. Equity can be provided by individual investors, sometimes known as "angels", venture capital companies, joint venture partners, and the sweat equity and capital contribution of the founders of the company. Equity providers are more interested in the growth potential of the company. Their objective is to invest an amount now and reap the rewards of a 5 to 1, or even 10 to 1, payoff in three to five years. In other words $100,000 now will be worth $1,000,000 in three years if invested in the right company.

Since the objectives of investors are different from lenders, the factors they evaluate in determining whether to invest are different from lending sources. Investors like to put money in companies that have the potential for rapid growth. Growth potential is based on the quality of management of the company, product brand strength, barriers of entry to competitors and size of the market for the product.

So Debt Or Equity Capital?
The answer is dependent on the answers to several questions: Why does the company require additional capital? What stage is the company at? What is the financial condition of the company? How much capital is required? What constraints will the financing source put on the day-to-day operations of the company? And finally, what impact will the financing source have on the ownership of the company?

What Kind Of Capital Is Right For Your Business?

2008-05-01T08:31:00.000-07:00

There are two kinds of capital: debt and equity. Both kinds are typically used by a company during its lifetime. Lenders have different objectives than investors and therefore look at different factors about a company when deciding whether or not to invest or make a loan. Keep in mind that while there are two kinds of capital, there are many ways to find money for your company.

Debt
Debt is money borrowed, which must be repaid at a set time period and generates income for the lender over that time period. Lending sources include not only banks, but also leasing companies, factoring companies and even individuals.

Lending sources look primarily at two factors: how risky the loan is; and whether the company can generate sufficient cash to pay the interest and repay the principal. The growth potential of the company is secondary; the primary considerations are the track record and asset base of the company. Usually the debt must be secured against the assets of the company and very commonly must also be secured against the assets of the owner of the company, also called a personal guarantee.

Assets of the company are not usually given full book value in securing a loan. In other words, if your inventory has a book value of $50,000 (or it cost you $50,000 to produce that inventory) a lending source will only give you 50% to 75% of that value. The reason being is that the lending source is not in your business and would have to quickly liquidate the inventory, rather than selling it at market prices.

Accounts receivable, or money that is owed to you from customers who have previously purchased your product but not paid for it yet, are also discounted. Using the same example, $50,000 worth of accounts receivable may only be worth 60% to 70% of that value to the lending source. Customers may not pay the full amount owed, or feel they have to pay for the product at all, if an outside lending source is demanding payment. And so on.…with equipment, land, buildings, furniture, fixtures and what ever other assets the company has, the same general rule applies.

The lender often requests that the personal assets of the owner of the company are pledged as a contingency and as a gesture of faith by the owner. Obviously, if the owner of the company does not believe in his/her own company's ability to repay the loan, why should the lending source?

Catch Your Customers Attention

2008-04-28T12:10:00.000-07:00

It seems customers these days often have blinders on. How can you capture their attention?

Put yourself in your customer's place. They're bombarded with information overload on the Internet and in the physical world. You want your company and products to stand out and be remembered, but you don't want to offend your potential buyer by screaming in the face.

Point of sale displays at the check out are one way to get the customer's attention and perhaps increase your sales total. These displays can vary from cards, posters, and handouts, to light boxes. Light boxes are bright and intrigue customers into paying attention to what's on them. You might be familiar with light boxes as a way to display photos but they can also be used to display advertising.

Another way to get your customer to stand up and take notice is through the careful use of A frames. An "A frame" sign is placed outside your business and coaxes interested people into your store with an offer they can't refuse. The signage is called A frame because it's two flat pieces connected with a bar. If you look at the sign from the side it looks like the letter capital A. Rotating different A frame signs throughout the month is a good idea as people get used to the same signs if they pass by quite often and become blind to them.

Use effective signage both outside and inside your business to increase sales.

Ways to raise cash for your business.

2008-04-23T15:18:00.000-07:00

Franchising

You can franchise your business to raise capital. You are selling the rights to use your business, name, practices, and methods. You basically are selling a clone of your business and the method to reproduce your success. In exchange, you receive a cash payment up front which can range from a few thousand dollars to substantial amounts of money. You may receive an on-going percentage of the franchisee's revenues.

Every kind and type of business has been franchised. If you want to see a wide variety of examples, Entrepreneur Magazine has an annual issue devoted to the top 1000 franchises.

You can retain control of how the franchisee operates, how and what they advertise, and their product quality. You can even mandate what suppliers the franchisees must purchase from.

Franchisees get a proven method of doing business.

Franchising must be done with the advice of an attorney experienced in franchise law.

Licensing

Licensing is less complicated than franchising. It is primarily selling the rights of either a product or a business name. Fashion designers often license their name to a company that has a product that doesn’t compete but would benefit by the association with the designer. The company sells more product, the designer receives a percentage of those sales. The major sports leagues generate billions of dollars annually from sales of licensed products with their logos.

You can also license an individual product. You can sell exclusive rights to a geographic area or industry or the rights can be nonexclusive. You can demand a minimum level of sales to maintain the licensing agreement. Your payment can be in a lump sum, a sum of money now and a percentage of sales throughout the time period of the agreement, or just a percentage of sales.

There are attorneys and agents who provide licensing arrangements with companies for your product. You can also contact companies directly yourself. Be leery of scams that focus on inventors and promise that they will market your product for you if you pay them a hefty
upfront fee.

Asset Sales

Selling off company assets, even a division of your company, is a tried and true method of raising capital. You might have equipment that's not being used, or a building and land that has a higher value to someone else than it does to you. You can sell off an entire product line that doesn’t fit well with your company's focus. You can sell intellectual property such as patents, formulas, customer lists, or trade secrets.

Consignment

If you have a retail shop and need inventory, you can approach potential vendors or suppliers to consign their products to you. You sign an agreement that you will sell the items at the price the vendor specifies. You do not own the items. You don't pay the vendor until the customer buys the item. The offset is instead of the normal keystone or 100% markup (you buy the item for $5.00 wholesale and sell it for $10.00 retail) you only receive a commission of between 10% to 25%. But you don't have to use precious cash to get merchandise for your store.

Students: Use your credit cards wisely

2008-04-22T11:10:00.000-07:00

It's a thrill to get your first credit card. In some ways it signals your entry into becoming a responsible adult, but use those credit cards wisely.

Credit isn't the same as cash. Just because you have an available credit balance doesn't mean you should go out and spend it. It's easy to run up a pretty significant bill. Buy a few text books, go out to lunch a couple times, maybe take a friend to a night club and then there's that new pair of shoes you've had your eye on. Before you know it you've spent several hundred dollars.

Don't think that if you can make the monthly minimum payment you're doing just fine. With the hefty interest charges you can end up paying double what those pair of shoes cost you. Try to pay off every month what you've charged on the card. The exception would be to divide the tuition and text books by the length of the semester and pay that amount off each month in addition to what you've charged for the month. For example if books and tuition are $1200 a semester and the semester lasts 4 months, pay $300 per month on top of what you've charged that month.

Use your credit cards wisely and you'll earn an A+ in financial management.

Forex and the Stock Market: What are some differences?

2008-04-10T13:55:00.000-07:00

Volatility is much less with Forex.

Buy in pairs: sell one currency and buy another one in the same transaction

Buying on margin

Online FX Trading can take place through accounts set up through the networks. Trading is not centralized on an exchange, as with the stock and futures markets.

24 hours a day from Sunday through Friday

2008-04-01T13:13:00.000-07:00

It's easy not realize how much you've spent on vacation. It's difficult to hold back your credit card spending during the holidays and birthdays. If you've bought a house you probably have a hefty mortgage payment. And of course your car payment is a big chunk of your budget. Perhaps you've faced a few unexpected emergencies or had major medical or dental treatment.

If your debt is more than you can handle you might consider Debt Consolidation Services It's nothing to be embarrassed about if you decide to seek counseling. Taking that first step might be a challenge. You have to admit to yourself that you are over budget and tighten your belt. Some of the little luxuries that you think you deserve and probably very well do, are going to have to go.

The sacrifices you make now to trim down your debt will pay off in the long term with a better credit rating. And in the short term you'll have a more positive attitude because you know you're doing something about your situation.

Worrying about money and how you're going to make even the minimum payment on your outstanding balances can sap your energy. Don't wait until it's too late. No matter what you decide to do start with one small step.

All the little stuff adds up.

2008-03-31T10:09:00.000-07:00

Have you noticed how much money you spend on the little stuff? It's easy to keep track of major purchases like a new laptop, or LCD monitor, but little things like paper, stamps, and envelopes can really add up quickly.

I'm probably going to need a new printer in the near future. The one I have is fine right now but it's a couple of years old. As a writer I give printers quite a work out. That's how I go through so much paper. What I didn't realize is how many inkjet cartridges I go through. Sometimes I think the companies who manufacture the printers don't make their money by selling printers but by selling the ink cartridges.

Stamps are another "little" expense. Sending out query letters to freelance articles requires a stamp on the envelope of course, but also another stamp for the response envelope inside. For those of you not familiar with queries, you write a short description of the article you'd like to write, the reasons why you're the best person to write the article and enclose a self addressed stamped envelope (SASE) for the editor to use to give you their response.

Dee

2008-03-27T15:00:00.001-07:00

If you have a reasonable credit rating you probably receive a number of credit card offers. Here are a few tips.

Compare apples to apples when an offer comes in. A lower rate interest or even 0% interest may sound like a great deal, just make sure that after an initial time period the interest rate won't go higher than your current card.

Make sure you have enough credit but not too much. Even if the credit is unused it can count against you when you want to buy a new car, refinance your mortgage, or buy a house. The lender thinks that even if the credit isn't used now, you could use it in the future.

Don't get confused by all the bells and whistles. Credit card offers can have different interest rates, membership fees, late fees, cash advance fees and separate cash advance interest rates and usage fees. Decide what you will be using the card for and how often, then decide which card is the best for you.

Credit is not the same thing as cash in the bank. Just because you have an unused credit line of several thousand dollars don't think you have to use it. Save your credit for when you need it.

Dee

2008-03-16T14:05:00.000-07:00

A Credit Card is More than a Convenience

It can be a financial management tool as well. Most of us take our credit cards as a daily part of life. We whip them out to pay for gas, lunch and even groceries. A credit card can help you differentiate between personal travel expenses and business travel. Many cards provide year end reports that group different types of expenses together. It can be a bit of a shock to find out you spent $3,500 on stamps, for example. But that kind of knowledge is helpful when you're examining your profit and loss statement for areas you can trim.

A credit card can also make sure you track every expense. It's easy to pay cash and then forget to include that expense. The card tracks the expenses and provides a paper trail as well.

For some expenses like car rentals and hotels it's mandatory to have a credit card.

A credit card can help with emergency situations and unforeseen expenses. It can also help balance out expenses that you pay once a year, allowing you to break the payments into monthly more easily managed payments. A credit card can smooth out cyclical or seasonal expenses as well. If you know that you have very busy sales months in the summer but won't get paid until September, a credit card can help your business obtain the necessary products, materials and inventory without using vital cash resources.

Credit cards have a bit of a down side, it's all too easy to pay for things with your card and run up a tidy bill. It can also be tempting to use the business card to pay for personal items.

What type of credit card you acquire is dependent on your credit profile. If you don't have established credit it's doubtful you can obtain a card with a huge credit limit. If you pay off your credit card every month you should probably look for one that offers rewards. However if you know you're going to carry a balance from month to month, at least part of the year, then a low interest rate is more important than a rewards program.

As you maintain a good payment history, the limit will increase. Prompt payment on your credit card account also demonstrates a responsible attitude and that can help you get bank financing in the future.

Dee

2008-03-13T13:23:00.000-07:00

Sometimes you have just got to have cash. Credit cards are great for those everyday purchases but what if you need cash and you need it in a hurry?

You could ask for a cash advance on your credit card, but some cards have a limit on how much and how often you can get an advance. And of course you pay a processing fee, cash advance fee and interest fees.

Pawning valuables is another alternative. You'll get the cash quickly but you won't have the use of whatever valuable you're pawning and you'll only get less than 10% of the value of the asset. If you have a watch that retails at $5,000, you may only get $150 in cash. If you don't pay pack the $150.00 plus interest in the time period allowed, usually 90 days, you forfeit the watch.

Another alternative is a payday advance loan. This works if you have a steady job with a reliable paycheck. There's a quick online application process and you do have to pay interest and sometimes a small processing fee. The money is transferred to your bank account almost immediately. When you get your paycheck you pay the advance back.

As with any loan or credit option use it wisely.

Dee

2008-03-13T07:47:00.000-07:00

Debt can be a lifesaver in an emergency situation but many people are drowning in debt. Unfortunately some of us think that an available balance on a credit card is the same thing as cash in the bank. If there's enough credit to go on a cruise, buy those expensive shoes, or go out to an elegant restaurant,well why not, we all deserve it.

Breaking down a $6,999.99 set of new living room furniture into easy monthly payments of $249.00 makes it easier to swallow. And what about that new car you've had your eye on? Never mind the price tag of over $20,000, it's only $389.00 a month. And suddenly you're facing a credit crisis. Your paycheck will only stretch so far and those "easy" monthly payments are pushing you under water.

Don't try to ignore the problem. Recognize there is a problem and that a
debt management program may be your solution. Debt management is simply a way to take all those credit card balances, personal loans, monthly payments and refinance the total with a new loan and often lower monthly payment.

It's difficult to do this by yourself. Often your creditors won't take your efforts seriously and that's where a debt management company comes in. The company can negotiate with all your creditors develop a new loan and debt repayment schedule for you.

It's something to consider if you're drowning in debt.

2008-03-12T09:55:00.000-07:00

Off to School and Into Debt

Student credit cards can be a lifesaver for children away from home and can also drown them in debt. Learning to manage credit is an important part of growing up and some students handle it more responsibly than others. Here are some tips to insure your student makes top grades in credit.

Read the application and understand the terms the credit card offers. Some cards offer a 0% interest rate for the first six months and then make up for it later with high rates. If the student pays off the bill every month this isn't a problem, but if the student carries a balance those high interest rates can add up quickly. Students also need to be aware that only paying the minimum payment due is in the credit card company's best interest not their own. With high interest rates and low minimum payments the student can in effect end up paying double what an item cost

Don't use the credit card for everyday expenses, pay cash. Charging lunch even a couple of times a week can build a balance up quickly. Save the credit card for when you must use it, for emergencies, or to spread the purchase of, say, text books out over the entire semester.

Instead of a traditional credit card start out with a secured credit card. The limit can be as low as $500. Knowing there is a limit can be helpful. A guardian or parent sometimes has to sign for these cards.

If you're not sure whether your student can handle credit, obtain a card with their name on it with one of the parent's accounts. Have the student call the parent each time they need to use the card. This will teach the student when it's appropriate to use a credit card and when it's not. It also provides a credit card for emergencies.

A credit card granted solely on the student's application, as opposed to a parent's, is the basis for building the student's credit history. It's tempting to abuse a credit card because it doesn't seem like real money. When writing checks the balance stares you in the face but not so with a credit card. Many times the student won't even realize the amount of charges until the bill arrives and it's heart failure time. Students often don't realize by not paying the bill on time, or even skipping a month's payment because they're short on cash, affects their ability to buy a car or even a home in the future.

Using credit wisely is a lesson every student needs to learn.

Dee Power

2008-03-11T15:02:00.000-07:00

I'm one of those people that knows a little about a lot of things. I'm a writer so I spend time researching many different topics for freelancing assignments and ghostwriting clients. While I do know a ton of stuff about business planning, venture capital, and angels investors because I've written commercially published books on the subject, I know just a bit about investing.

Investing in stocks and bonds, not investing in start-up companies. I've read, reviewed, or written hundreds of business plans for entrepreneurs and their firms. About the only thing that matters with a brand new company is the strength of the management team. Great management rules.

Stocks and bonds are different. Advice from the so-called experts and pundits can be counter intuitive, complicated and a lot of times incomprehensible. I found investment blog and it's pretty cool. Covers all the bases. I particularly like the graphs. Some people are more visual in comprehending information and the graphs help.

The advice is straightforward and clearly explained in a take it or leave it manner. Some sites imply that you're clearly stupid if you don't agree with their conclusions but investment blog respects the reader. Read the post about deep discounters and you'll see what I mean. I plan on visiting rather often.

Dee Power

2008-03-08T16:35:00.000-08:00

The holiday buying season is over and you're probably facing a stack of credit card bills from your generous Christmas shopping sprees. And then there were the after Christmas sales, the President Day's sales and of course Spring clothes shopping. You can rack up quite a balance. As much as you might like, those bills won't mysteriously disappear.

Paying only the minimum payment on each credit card will take you years to pay off the debt and you might end up paying three, four, or even five times as much in interest as the merchandise you bought. If you're having trouble stretching your budget to make even the minimum payments then you need to take action.

Look at your budget and see which items you can cut. Do you stop for a coffee drink every day on the way to work? Those double cafe lattes can add up at nearly $5.00 a pop. That's an extra $150.00 you can put toward debt payments. Go through all your expenses and see which you can give up. But if even that isn't enough you might consider Debt Consolidation Loans

A debt consolidation loan is bundling all your debts together, negotiating with the credit card companies, utility companies, medical providers and other debt holders for a new interest rate and payment plan. The resulting payment can be less, sometimes much less than your original payments. However the loan may go on longer than the original debts, so keep that in mind.

If you don't own your home, or don't want to use it as security for a debt consolidation loan there are Unsecured Debt Consolidation Loans You won't have to use your home as collateral.

Don't ignore your debt problems they won't just go away.

2008-03-06T17:45:00.000-08:00

Tax time is not my favorite time of year. First you have to drag out all those pesky little receipts that you saved all year, but of course you didn't save them all in the same place. Some are in one drawer, others are stuffed in envelopes, and some you aren't quite sure where they are.

Then you have to categorize them into the appropriate expense lines. If you use a payment processor like Paypal you have all the receipts in one place but it can be a challenge to tell what each one is for, unless of course you were smart enough to keep track as you go.

Since taxes are pretty much done only once a year it's easy to forget why you did something the way you did. Questions come up. The Tax and Accounting Software Forum is one place you can go to get some of those questions answered and commiserate with others.

There are software programs that help compute taxes and the government has down loadable PDF forms you can complete online, print and submit. That's a major improvement over a calculator, pencil and paper.

Probably the only good thing about tax time, is that it is also Spring time.

Dee

2008-03-02T12:05:00.000-08:00

Identity Theft – It could happen to you

In 2006 9.9 million people in the United States were victims of identity theft at a cost of $5 billion dollars. It is the fastest growing crime in America. The numbers could be even higher as identity theft is reported differently in different areas.

"Identity theft is a criminal offense. It occurs when a person knowingly transfers or uses, without lawful authority, a means of identification of another person with the intent to commit or to aid or abet any unlawful activity that constitutes a violation of federal law or that constitutes a felony under any applicable state or local law."
- Identity Theft and Assumption Deterrence Act, 18 USC 1028(a)(7)

Key pieces of personal information are fraudulently obtained and used to steal the assets of the victim or to defraud others. Bank accounts can be drained. Credit cards maxed out and new credit accounts established. And yes, it can happen to you. Credit card protection is important. See Lifelock Reviews for more information.

It can start with pilfered mail, a computer virus that opens a backdoor to information on your hard drive, a lost wallet, phishing, or going through trash to find thrown out correspondence.

How does someone get away with identity theft? Here's an example: The criminal dumpster dives in your trash looking for bank statements, credit card statements, and records from financial institutions. If they find a bank statement they request a change of address for your bank account. The criminal orders new checks for your checking account and has them sent to the new address. They then write checks and drain the account. Many accounts are protected by overdraft credit, or can make an automatic withdrawal from a savings account, making the situation worse. You won't even become aware of the incident until you're contacted by someone you wrote a check to and it doesn't clear for insufficient funds. Life lock reviews gives you credit card protection.

If you've thrown out one of the pre-approved applications for a credit card the criminal simply completes the application and uses a new address for the cards to be sent to.

Dee

2008-02-24T10:36:00.000-08:00

It always amazes me when entrepreneurs try to save money by doing everything themselves. I can understand the need to conserve resources but there are some areas where being penny wise is being pound foolish. Take the area of legal services. Many entrepreneurs decide that they'll complete the incorporation papers themselves not realizing that there can be a huge difference in tax strategies whether their company is a C corporation, S corporation, or an LLC.

International tax law can be just as important if you do business outside the country. The Internet has made the planet much easier to navigate and in some ways more dangerous. More of us have crossed international boundaries through our websites and services and may not even realize it. What may work in San Diego business law for example won't work at all in Australia.

Your professional advisers, such as attorneys and accountants, should be called in to prevent problems. Knowing that your corporate structure is secure, appropriate, and structured correctly can be a relief. And it can mean that you pay only your fair share of taxes.

Dee

2008-02-22T09:33:00.000-08:00

Posting Your Way to Dollars.

Post on forums

It has been shown that people don't want to post on forums unless there are already posts. New forum owners pay people to post comments, start threads, and respond to other threads in an effort to get some forum action going. As the forum grows, the level of posting increases until paid posts aren't necessary.

Forum topics have a huge variety. There's probably a forum for just about any subject. Usually a paid poster has to have at least some knowledge of the subject to post relevant comments. There can be a minimum word count for the posts. Posts of "I agree," "Me too," and "Thanks for the info," are too short and don't add anything to the discussion, so forum owners don't want to pay for them. Posting on forums doesn't pay a lot, perhaps as little as 10 posts for a dollar. Find the jobs on Internet marketing related websites like Digital Forum.

Post on blogs

You can be paid to post comments on blogs much the same way you can be paid to post on forums. Pretty much the same criteria applies, the posts can't be too short and have to be relevant to the subject matter.

You can search for offers of 5 posts for a dollar. If each post takes a minute you would have to work a little over 8 hours to make $100.

Place ads on craigslist and usfreeads offering your service.

Dee Power

2008-02-21T14:40:00.000-08:00

Golf stuff you might want to check out.

Cheap Golf Equipment

Green Fees Savings

Golf Travel

Golf Fitness

Golf Game Improvement

The Budget Conscious Golfer

2008-02-13T14:19:00.000-08:00

Organizing Your Email And Increase Your Productivity

Organizing your email can be a challenge for anyone. Email has taken the place of memos in business, correspondence in your personal life and direct mail marketing. There are newsletters, special announcements, updates and of course the dreaded spam. It's easy to just open an email, think to yourself "I'll answer this later this afternoon," and then go on to the next email. Of course the email doesn't get answered and it starts to mount up.

When paper starts to stack up it nags at us to do something with it. Either file it, read it or throw it away. Email doesn't have a physical presence, so the tendency is to let it pile up in our inbox.

Important business emails can be overlooked. Dates can be missed and opportunities lost because the important email is sitting there in virtual stacks of the other emails. When you go to look for an email about the luncheon meeting this afternoon, it could have been unintentionally deleted, in the spam folder, or caught between two announcements of Junior's soccer game.

Organizing your email can be accomplished using the same methods of organizing hard copy papers. Set up folders on your email program under main categories. For example you could have Personal, Marketing, Newsletters, Family, and Important – Needs Attention. This is an over simplification as there are probably 10 to 15 different categories for each of us that would make sense. Those categories depend on your work, business and personal interests.

If you get a lot of email, say more than 50 (not counting spam) a day, go through the new email at set times of the day, once in the morning, once after lunch, and once around about an hour before you're ready to quite work for the day.

Answer the email immediately upon opening if it's just a simple request or requires an easy response, then file it under the appropriate folder. A lot of email is just an update that doesn't require any action on your part so file that in the correct folder immediately as well.

If the email requires research before responding put it in the Important- Needs Attention folder. Every morning go through that folder and address the unanswered emails and then file in the appropriate folder.

Every week go through each folder and delete those emails that have been answered and don't require any follow up. If you prefer you can move the email to a holding folder for 30 days and then delete.

Dee

2008-02-09T13:49:00.000-08:00

Why Set Goals for Yourself?

Why take the time and make the effort to set goals for yourself? Wouldn't it be easier and more productive to just get going? That's sort of like deciding you want to go on vacation and then getting in your car and driving. The odds are when you stop driving you won't have a clue where you are. You also won't know what to pack to enjoy the vacation.

Goals are a method of deciding where you want to put your energies and resources. Setting goals gets you focused. Think of a goal as a destination. Once you've determined the destination you'll need a road map and directions. Objectives are the road map. When you've achieved an objective you've reached a milestone on the way to your destination. And those directions? Those are the strategies you'll need to achieve the objectives. Strategies are the actions and resources are how you get to each objective.

An easy way to set goals is to think about where you want to be, or where you want your company to be in one year. Write a paragraph of that description. If you prefer you can also use bullet points. Here's an example that's not business related. At the end of 2008 you want to be thinner and healthier. The objectives then would be to lower your cholesterol by 10 points, stop smoking, and lose 25 pounds. The strategies to achieve the objective of losing 25 pounds might be to lose 5 pounds per month by cutting out all sweets from your diet and implementing a plan of walking for 30 minutes each day.

Goals can help you get where you want to be in your life and in your business.

Dee

2008-02-07T11:35:00.000-08:00

In the last few years we've all noticed that the real estate market for houses has become, shall we say, frothy. It's difficult to know where it's headed. Some experts proclaim doom and gloom with prices plummeting to depths never before experienced. Others say that the market is about to stabilize and return to a normal level of growth in value.

Money has tightened up a bit and mortgages are more difficult to come by then they were a year ago. That doesn't mean they aren't available, just that banks are demanding higher credit scores and down payments before they'll grant the mortgage. This doesn’t help those homeowners who may have gotten in over their heads during the boom time with an escalating mortgage. The common thought was that even if their current budget was a bit stretched everything would work out because housing prices would continue to skyrocket.

Housing prices in some areas have not only not increased, they've actually decreased and that's bad news. There is a bit of light on the horizon. Remortgages are available that can take advantage of any decrease in interest rates. Be careful when you're looking to remortage your home. Stick with a reputable company that is willing to find the remortage that is best for your situation and will explain the terms and conditions of the new mortgage.

Dee

2008-02-06T10:46:00.000-08:00

You know that you can lease autos, computers, and other equipment, but do you know about commercial leasebacks? If your business needs cash, and you own the property, you can sell it and then lease it back. Commercial leaseback is a way to get the equity out of your building and put it to work. You'll have cash to grow your company, increase your marketing efforts, or add a new product line.

You won't have to go through the effort of moving, disrupting employees, or letting your customers know your address has changed. No expenses involved with relocating phone lines and other communications. You might even be able to negotiate an option to buy the property back at a later date.

Of course you'll have to pay off any mortgage with the proceeds but in today's market you still could end up with a nice chunk of cash. Just about any kind of commercial property can be leased back from restaurants to warehouses to office buildings.

Selling commercial property is best left to experts. It's a bit more complicated than selling a house. You want to get fair value for your property and at the same time get a reasonable lease rate.

If your business could use an infusion of cash, a commercial leaseback might be the solution to your problem.

Dee

2008-02-05T10:02:00.001-08:00

Drowning in debt can be a scary feeling. Ignoring your creditors can result in losing everything. Whether you're a business or an individual get a handle on your debt and face reality. Debt management should be your goal. One way to manage your debt is to approach your creditors and negotiate with them to accept a lower payment, waive the interest, or forgive some of the outstanding balance. However your creditors may not take your efforts seriously. An alternative would be to use a company or organization that has established a level of credibility in the industry. They work with your creditors. The result is you have only one monthly payment, usually lower than all your previous payments. No more worrying about how you'll make it through the load of debt you have.

You might not be aware of something called an Individual Voluntary Arrangement (IVA). If you have unsecured debts, debts which are not secured by an asset like a house, jewelry, or auto, the creditors and you agree to a five year plan of monthly payments. Once the payments have been completed you don't have to worry about any law suits or bankruptcy. The agreement is private between you and your creditors. Once again working with an expert in debt management facilitates the process. If you're an individual in the United Kingdom and want to know more about debt management, I found Gregory Pennington's website a solid place to start.
Dee

2008-01-31T07:49:00.000-08:00

My experience with finance is mostly in the corporate world. If you're looking for venture capital, angel investors, or someone to help you with your business planning, I'm your go to person.

Now personal finance is something different. This year I decided I was going to learn more about how to invest and where. I'm a long way from retirement but one thing I've learned is to plan ahead. I found a informative website called The Money Alert. It's not hard sell. The last thing I need is some broker breathing down my neck telling me his/her latest and greatest stock tips. And if I don't invest everything I have right this minute I must be a total fool.

If you're looking for information on investing the site has lots of articles in easy to understand terms. No mumbo jumbo. The site is organized into several categories from planning for college to planning for retirement. There's also articles about insurance, investing, and estate planning.

I've bookmarked the site and plan on spending some time there.

Dee

2008-01-26T13:06:00.000-08:00

Will a Business Plan Help Me Obtain Financing?

If you’re looking for credit from a vendor or service provider, probably not. But, and it’s a huge but, if you’re looking for a bank loan, absolutely yes.

Bankers can be nervous little critters and need to be assured of two things:

1. Your company is stable and has enough cash flow to pay back the loan with interest.

2. The owners of the company, that’s you, has the intention to pay back the loan.

A business plan demonstrates that the company has the assets in place to secure the loan if all else fails. It also shows that you, as the owner, has the foresight to plan ahead. The business plan gives the banker just about everything they need to know about your company.

What should be included in a business plan? It’s not a complicated document to put together. You’ll need an executive summary which should be about two pages long and is just, as the title says, a summary of your plan. Also included should be an overview of the history of your company, its industry, the market, competitors, the products, and marketing strategies. The business plan doesn’t have to be 300 pages long. As long as all the required information is included it can be 10 to 15 pages in addition to the financial statements.

The business plan also includes the historical financials for the last three years and projected profit and loss statements, balance sheet and cash flow projections for the next three years. If the historical statements can be put together by your account so much the better.

Have the plan copies on good paper. You can print on both sides of the page if the paper is heavy enough in weight to stop the bleed through to the other side. It’s not necessary to use a gold embossed leather binder, but do use a new binder.

2008-01-20T09:10:00.000-08:00

So Many Choices So Many Credit Cards: How Do You Choose?

You need to ask yourself several questions to decide what kind of card is best for you.

What will you use the card for?

If it's for every day purchases and conveniences then a card that has rewards might be more attractive to you. Some cards offer a yearly summarization of purchases by category which can help you budget as well.

Will you pay off the card every month?

If so, a high interest rate isn't as important since there won't be a balance. Try to get a card that doesn't charge an annual fee. You also want a card that doesn't charge interest from the date of purchase, or one that has a grace period of up to 30 days before interest charges begin. If you carry a balance every month or plan on transferring another card's balance to your new card, then low interest rates are important.

Will you be using the cash advance feature a lot?

Then obviously you want a card that doesn't have restrictions on how much or how often you can get cash. You also want a card that doesn't have additional fees associated with cash advances, or a per transaction fee. Some credit cards also charge a higher interest rate on the cash advances to compensate for missing the merchant fees from purchases. Many cards apply payments to those charges that have the least amount of interest being generated first and don't apply the payments to the cash advance portion until everything else is paid.

Do you travel?

If your schedule includes a lot of travel you might want to consider a card that has a cash back feature. Hotels, restaurant meals and airline tickets can add up fast. Of course keep in mind the interest rate as well, unless you pay off the balance every month. Some airlines offer their own branded credit card under the Visa or Mastercard logo and then offer bonus mileage whenever you use their card.

When you apply for a credit card no matter which one, you need to look carefully at and understand the terms for the credit card. Make sure you know what the interest rate is, the annual fees, transaction fees, and any balance transfer fee. It's also important to know when the interest charges start, how a late fee is calculated and the penalties if any of late payment.

2008-01-18T15:45:00.000-08:00

A Few Different Kinds of Business Credit

The choices can be confusing so here are some basic definitions.

Store/Vendor Credit

When businesses need to buy office supplies, products to resell, or materials to manufacture products, they often purchase them on credit terms. The terms give the business from 30 days to 90 days to pay for the materials. Sometimes the company offering the terms will add a finance surcharge to the total purchase, or offer a cash discount, if payment is made within a certain time frame, say ten days.

A credit application can be required to obtain the credit and a credit report as well. Occasionally the store or vendor doesn’t require anything and will just bill the business for the merchandise or service.

The US Postal Service doesn’t offer any sort of credit to businesses for delivery services but many other delivery companies do.

Business Credit Cards

Are issued to the business and are used much the same way as personal credit cards are. They’re helpful when nothing but a credit card is accepted such as car rentals or hotel stays. The interest rate is rather high just like personal credit cards. Business credit cards can be helpful when tracking business expenses, travel for example and separating it from personal expenses. It also eliminates the need for expense reports if you use the business card and not your personal credit card.

Consignment

Consignment is simply offering goods for sale that you don’t own. The goods are provided to you on credit. The catch is that you pay for the product only when and if it sells. If it doesn’t sell you return the product to its owner. This works most often in retail establishments. An agreement has to be signed with the owner of the merchandise with the consignment terms. The business pays the owner a percentage of the retail price and retains a commission for the sale. The commission can be up to 40% of the retail price. The entire bookstore industry is set up on the consignment system. Bookstores have up to 90 days to pay for books and can return them up to one year if they don’t sell.

2008-01-15T10:03:00.000-08:00

Is Credit a Good Source of Cash for Your Business?

If used carefully credit can be a good source of cash. You can use a revolving credit line to pay for your needed inventory in June and July and start paying the credit line back down in August, September and October. The trick is you can’t start looking around for a credit source in July. If you’ve done your cash flow projections you’ll know what your requirements are in enough time to find the credit source you need, at the terms right for your business.

Credit, of course, can be used for emergencies such as repairing broken equipment. Or to pay a one time yearly expense and then spread the credit payments over the entire year.

It can also be used to help a company grow.

Introducing a new product almost always take longer than anticipated. Reaching a new target market requires patience, time and money. There can be delays in regulatory approvals, getting a patent, acquiring licenses. Moving to a new facility may mean additional unbudgeted expenses.

Credit, used carefully, can help solve these situations and others. It can be a cushion against the unknown and a good financial management tool.

2008-01-15T07:42:00.000-08:00

How Much Cash for Your Company Do You Need?

As much as I can get, would be the answer from most small businesses and entrepreneurs. But not enough cash or too much can have serious negative consequences.

Not having enough cash on hand or available can cause problems ranging from losing a substantial sale because you don’t have the cash handy to buy the necessary materials to fill the order to having to shut down the company because you can’t make payroll. The remedy to the problem is to apply for additional credit and some credit sources will interpret that as inept management. They may ask themselves why you weren’t able to correctly forecast your needs in the first place. Or even worse, that you aren’t fiscally responsible.

Getting more cash or credit than you need may seem like a good idea but it can lead to a cavalier attitude toward expense control. “If you’ve got it, spent it,” is not a suitable motto for any company. And credit costs money, if you use credit to pay for expenses that you have adequate cash for, you incur unnecessary interest expenses.

So how do you know what level of credit is just right for your business? That’s what cash flow projections are for. Every business owner should sit down once a month and project their cash requirements for the next six months. For example: You may know that the summer months are your busiest months. Sales will double for the months of June, July, and August. But since you offer 60 day payment terms to your customers, you won’t see that cash starting to come in until August. And you’ve had to fund, somehow, the sales for June and July.

2008-01-04T14:48:00.000-08:00

Make a fresh start in 2008. A fresh start in your personal relationships, with your family and your business. What’s been holding you back? Why aren’t you building your business as fast as you would like? Have you been wasting precious hours on activities that don’t turn a profit? Frittering away your time by checking email over and over, visiting favorite forums and discussion lists? Or maybe just sitting there wondering ‘what do I do next?’

At the end of 2008 what will be your accomplishments? Will it be the same old, same old, or will you be able to say 2008 was your most profitable year ever?

A business plan isn’t just for bankers and investors. It’s a management tool that simply tells you where you’ve been, where you want to go, and how are you going to get there. Realistically a business plan can be used for any part of your life. Think about it. If you’re starting a diet, it’s important to know what your eating habits are (that’s the “where you’ve been” part of a business plan.) You then set goals for weight loss, say 20 pounds in six months (that’s the “where you want to go” part). And finally you determine what specific strategies and action plans will achieve that goal (“the how are you going to get there” part.)

You can be an Internet marketer, a writer, a home business person, or involved in the corporate world. You still need a business plan.

One of the best business plan packages I've seen is Business Plan Basics. You get an ebook on what should be included in your business plan, examples from business plans, tips and an Excel spreadsheet.

If you want 2008 to be great, get started on your business plan with Business Plan Basics.

Dee

2007-12-30T21:41:00.000-08:00

There was an article in BusinessWeek online that said more and more people are getting interested in earning money online. Not in one of those get-rich-quick schemes you see advertised on TV, but as a legitimate business.

I found this website PartyIdeas: Kids that was developed by a young mother to earn extra money. The site is still pretty young, only about a month old. It's a fabulous idea. She obviously has experience throwing parties for kids. I especially like all her ideas for Valentine Day Parties for Kids.

Shes' earning AdSense revenue from the Google Ads and money as an affiliate for amazon.com. I talked with her and she'll be developing an ebook on the subject of - what else - Party Ideas for Kids and sell that as well.

This is just one example of someone who had no experience earning money on the Internet and using her talents to start an online business.

Dee

2007-12-23T11:41:00.000-08:00

On The First Day of Christmas My Agent Gave to Me

On the first day of Christmas my agent gave to me
A contract for my rep to be

On the second day of Christmas my agent gave to me
Two critiques
And a contract for my rep to be

On the third day of Christmas my agent gave to me
Three revisions
Two critiques
And a contract for my rep to be

On the fourth day of Christmas my agent gave to me
Four plot changes
Three revisions
Two critiques
And a contract for my rep to be

On the fifth day of Christmas my agent gave to me
Five - days - to - auction
Four plot changes
Three revisions
Two critiques
And a contract for my rep to be

On the sixth day of Christmas my agent gave to me
Six editors bidding
Five - days - to - auction
Four plot changes
Three revisions
Two critiques
And a contract for my rep to be

On the seventh day of Christmas my agent gave to me
Seven offers landing
Six editors bidding
Five - days - to - auction
Four plot changes
Three revisions
Two critiques
And a contract for my rep to be

On the eighth day of Christmas my agent gave to me
Eight contracts waiting
Seven offers landing
Six editors bidding
Five - days - to - auction
Four plot changes
Three revisions
Two critiques
And a contract for my rep to be

On the ninth day of Christmas my agent gave to me
Ninety thousand advancing
Eight contracts waiting
Seven offers landing
Six editors bidding
Five - days - to - auction
Four plot changes
Three revisions
Two critiques
And a contract for my rep to be

On the tenth day of Christmas my agent gave to me
Ten more rights a selling
Ninety thousand advancing
Eight contracts waiting
Seven offers landing
Six editors bidding
Five - days - to - auction
Four plot changes
Three revisions
Two critiques
And a contract for my rep to be

On the eleventh day of Christmas my agent gave to me
Eleven weeks bestselling
Ten more rights a selling
Ninety thousand advancing
Eight contracts waiting
Seven offers landing
Six editors bidding
Five - days - to - auction
Four plot changes
Three revisions
Two critiques
And a contract for my rep to be

On the twelfth day of Christmas my agent gave to me
Twelve months till we start again.
Eleven weeks bestselling
Ten more rights a selling
Ninety thousand advancing
Eight contracts waiting
Seven offers landing
Six editors a bidding
Five - days - to - auction
Four plot changes
Three revisions
Two critiques
And a contract for my rep to be

*****************************

Hope you and yours have a safe, prosperous, happy 2008.

Dee

Dee Power is the co-author of The Making of a Bestseller: Success Stories of Authors and the Editors, Agents, and Booksellers Behind Them, and two other nonfiction books. They've written Treasure In the Moonlight, a novel just waiting to be published and several screenplays. http://wwwBrianHillAndDeePower.com

2007-11-10T12:48:00.001-08:00

I've started my Christmas shopping a little early this year. Usually I wait until the weekend right before Christmas. I'm getting a bit sick of the big box warehouse stores. It's seems they all have the same kind of merchandise. And everybody knows what you paid.

The shopping malls are fun if you actually don't have to shop. If you do, they can be a nightmare. Every teenager is hanging out text messaging each other from 3 feet away. People are getting frantic and buying something - anything - just so they'll have a gift.

This year I thought I'd use the Internet to shop. Not just amazon.com or ebay but neat little websites that offer gifts a bit out of the ordinary.

First stop are baby toys. Lots and lots of baby toys. I found this neat little site called baby-wise.com They have toys for every age and great prices. It beats the mall and the big box stores. Now I just have to make up my mind which toys I want.

Dee

2007-11-07T18:40:00.000-08:00

One of the areas I've been looking at is how to earn money on the Internet by writing, while cruising I came upon a neat little site that's focused on helping people find jobs. I'm not looking for a full time job but this job search site was a little different. The jobs are ranked by the members. So if someone investigated a particular offering and found it, let's just say not as straightforward as the listing, they could give it a lower ranking.

I also like the tone of the site. It's friendly and has a "we're all in this together" attitude rather than "we're the might job board and you're the lowly job seeker." Reminds me of some publishers I know.

It's too bad that writers only have elance.com and guru.com. It would be nice to have a similar writing job search where the writers could rate the clients. I know elance does have a rating system, but seriously is any writer going to bad mouth a potential client? No.

Dee

Over Time, the novel
A great gift for a football fan or a romance reader. Romance? Yes.

2007-09-15T19:29:00.000-07:00

A rose by any other name.

Our Irish Setter, Rose, is very dear to us. She and her English Springer Spaniel sister, Kate, even have their own website, Rose and Kate's.

Rose is only 4 years old but she's been through a lot. When she was only 6 months old she was diagnosed with kidney failure which is fatal. Turns out the tests and diagnosis was wrong. She's fine.

When she was a year old she was bitten by a rattle snake. Yup. Brian was working in the yard and Rose kept pushing in front of him. Finally the snake struck Rose instead of Brian. She recovered, the snake didn't.

She's four years old now. Last week when I was brushing her, I noticed one of her canine teeth was a bit purplish. Odd. She was due for a check up and some immunizations so I took her to the vet. Her tooth had been chipped. The blood vessel inside had burst and was destroying the pulp inside the tooth. She had to have an emergency root canal. The dead pulp gets infected and travels down the root of the tooth into the jaw bone.

When a person has a root canal it's expensive enough, but with dogs (and cats) it's even more so because they have to go under general anesthetic. It seems puppies don't listen when the dentist says "open wide."

Dee

2007-09-10T07:42:00.000-07:00

Do you ever get confused looking at all the diet books, websites, articles and blogs? I certainly do. Yesterday as I was grocery shopping (buying only fresh fruit and veggies and free range chicken of course) the headline "IS YOUR CELL PHONE MAKING YOU FAT?" hit me right between the eyes.

My cell phone?????

It turns out that cell phones emit Electromagnetic Frequencies EMF. EMF is interpreted by your body as a danger. The cells in your body freeze up in response to what they perceive as an attack and hold on for dear life to the toxins trapped within them. Trapped toxins lead to a sluggish metabolism and weight gain.

Of course the article went on to say that there was this little microchip that you could buy that counteracted the EMF and coaxed the body cell's to loosen up and start acting normally. The result was weight loss.

I dunno. It seems fishy to me. Oh, that's the other way to counter act EMF. Consuming 4 to 6 grams of Omega 3 fatty acids, or fish oil.

Oh well.

Dee

2007-09-07T20:34:00.000-07:00

Fricasseed Troll -- or how to get rid of wild pigs

Have you ever been complacently posting on a board, and suddenly, without warning a troll shows up? You know one of those nasty little critters whose sole intent is to disrupt the discussion and turn all attention to itself? Well now you can do something with them.

Stun the creature with a well placed retort, then coax into the open with the promise of lots of platitudes. While the troll is mesmerized with its reflection, slowly squeeze the life out by totally ignoring it. Trolls can be stubborn and keep resurfacing, so diligence is required. On occasion a troll will try to escape by whining with a high pitched poooor meeee, poooor meeee, call.

After the troll is sedated, remove all double entendres with a freshly sharpened wit. Be careful of the narcissist gland, it is located right behind the full-of-it tendons, and must be gently cut out, other wise the bile is released and the entire troll is useless.

If the troll had a backbone, it would be best to discard it, but it doesn’t, so that’s a chore you won’t have to face. Remove all skin, both thick and thin. The female troll usually doesn’t have a lot of substance to it, but what is there, is tough and stringy and must be marinated. The salt brine mentioned in a previous post works well, but in a crunch, piss and vinegar will do.

After several days in the marinade, chop the troll to pieces and dredge in well edited prose. Season to refined literary taste and garnish with verbiage.

Then feed the whole d@mn thing to the wild pigs. They will never return.

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Dee

2007-09-03T16:03:00.000-07:00

Here are a few authors, books, and services for writers that I've found interesting.
Jan Cleere

Luke and Jenny Books

Tangled Stream

Janson Literary Services

Rick Novy

Allison Books

Jeri Castronova

Susan Wingate

Marcia Fine

2007-08-27T01:54:00.000-07:00

Several more books I'd recommend:

The First Five Pages: A Writer's Guide to Staying Out of the Rejection Pile ISBN 068485743X and The Plot Thickens: 8 Ways to Bring Fiction to Life ISBN 0312309287, by Noah Lukeman. Both these titles focus on the craft of writing fiction. Literary agent Noah Lukeman represents many New York Times bestselling authors, and award winning authors. He’s read over 50,000 manuscripts in the past 10 years and knows what will sell and what won’t. The first five pages are critical to whether an agent, editor, or the all important consumer will make the decision to purchase a book. Think about it. The last time you picked up a book, you looked at the cover, turned over and read the back cover blurb, and then, most probably, took a look at the first couple of pages. Lukeman tells you how to improve your writing so it grabs the reader.

The Resilient Writer: Tales of Rejection and Triumph by 23 Top Authors, by Catherine Wald, ISBN 0892553073. Being rejected is an uncomfortable and often demoralizing experience. Writers are on the receiving end of more than their fair share by virtue of simply being writers. Catherine Wald handles the topic with grace and optimism. She has heart-to-heart talks with 23 leading authors regarding their personal experiences with
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Dee
Private Label Reports

Rose and Kate's

2007-08-18T10:46:00.000-07:00

Books I’ve read and recommend on writing and publishing.

Of course this list isn’t all inclusive, that would take hours, but the titles mentioned here cover all the bases and would be a good starter library for any writer.

Book Proposals That Sell, by Terry Whalin, ISBN 1932124640. A good primer on what should be included in your nonfiction book proposal written from an acquisition editor’s point of view, which is exactly what Terry Whalen is. The book contains 21 secrets to boost your proposal to its fullest potential, a checklist, a sample proposal and lots of straightforward, useful advice. The basics of the publishing industry and how the acquisition process works is covered from an insider’s perspective. This book will help you scale the walls to publication.

Making The Perfect Pitch, ISBN 0871162067 by Katharine Sands, a successful literary agent with the Sara Jane Freymann Agency in New York, corrals 40 top agents and experts from CAA, Trident Media, Meredith G. Bernstein, Jane Dystel Literary Management, and more and gets them to tell what really excites them about pitches, query letters and proposals. "Making The Perfect Pitch" is well organized and the approach is unique. While it's informative to have the expertise of one agent it's invaluable to have the opinion of a number of different agents'. Ms. Sands brings a breadth of knowledge and experience to writers they desperately need and seldom receive. If you're hunting for an agent, you need to know how to pitch and "Making The Perfect Pitch" gives you the ammunition to be dead on target.

The Frugal Book Promoter, by Carolyn Howard Johnson, ISBN: 193299310X. An author’s greatest challenge can be to climb the marketing mountain and get their title visible to potential customers. If a reader doesn’t know about your book, how on earth will they be able to purchase it? Carolyn tells you how to promote, from sending out your own ARCs (advance review copy), to why a website is important, to utilizing all the perks of amazon. This truly is well placed promotion on a shoestring.

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Dee

2007-08-15T13:13:00.000-07:00

Summer is winding down and our marketing activities are starting up.

I've been spending the last few months studying the Internet to see how I could earn money by writing. I'm not talking about freelancing gigs so much as writing articles, web pages, and blogs.

As an experiment I took an old website or ours that was business related and changed it to a niche site on weddings on a budget. I included AdSense revenue links, a few affiliate links, and an Amazon book or two. Here's the site, Weddings On A Shoestring Budget

After writing the content and uploading the pages to the site, I wrote a few articles about weddings on a budget and summited them to Ezinearticles.com It took a few weeks to get traffic from the people who were looking for tips on how to have a wedding without breaking the bank, but now the site brings in a nice little income. Not a huge amount, but the site was just sitting there doing nothing before.

Dee

Golf on a Budget
Rose and Kate
Private Label Report

2007-08-03T21:03:00.000-07:00

Is it easier to get a book published now? Part II

Publishers are Becoming More Risk Averse

“It just seems like it's getting harder and harder to get people to take a chance on an unknown.”

“Editors are buying fewer books, they are reluctant to take chances.”

“What does keep projects from being bought is the fact that lists are shrinking, and in a marketplace in which it’s terribly hard to win anyone’s attention – from buyers all the way to customers – everyone up the editorial chain is anxious about making the wrong bet … more often than not, ‘No’ is a safe answer.”

The Pessimists

“I base this on the number of rejection letters publishers have sent for well-written, well-plotted novels by new authors that would have sold if given the chance.”

“I don't see the market picking up much, and if the current trends continue, it will only decline.”

The Optimists

“Because I don't agree that the publishing industry is either for or against unpublished writers. They are FOR unpublished writers who have a brilliant first novel to offer or a nonfiction platform. They are AGAINST unpublished writers who are bad writers or (in the case of nonfiction, are not credentialed in their field, have a new original, high concept idea etc.)”

“The Industry is not a monolithic thing. Some genres (nonfiction especially, which more and more requires the author to have a major platform for promotion and media attention) will continue to become more difficult; some genres (upmarket fiction) exalt first-time writers. The “first novel" for literary fiction represents a unique marketing opportunity for the publisher; it's the second and third novels that tend to be far more difficult to publish well if the first novel doesn't take off.”

“Some trends favor new writers and new voices, however the money is often discouragingly small, so there is not the sense of a career being launched.”

The Impact of the National Economy

"Publishing is an increasingly tough biz in tough times--fewer people read."

So What Can a Debut Author Do?

1) Study the elements of a good query letter.

2) Make your contact letter succinct, positive, but not obnoxious. Stress that you understand the market for your book and how to address that market.

3) Learn what types of manuscripts individual agents are looking for and send yours out to the agents that match up the best with your topic or genre.

4) Don't give up.

Avoid scams and still get your book published. Get our free report Perils and Pitfalls of Publishing for Writers just visit Free Report

2007-07-31T08:55:00.000-07:00

Is it easier to get a book published now? Part 1

Is it getting easier or more difficult for an unpublished writer to get their first book commercially published? We asked nearly 60 literary agents about the outlook for the next generation of authors. Their comments are in quotes.

Agents do not envision a great deal of change on the horizon. They are mildly negative about the next 12 to 24 months. When asked the reasons behind their forecast, the most common responses were:

Industry Consolidation, Changes Within the Publishing Industry Itself
Changes in Book Retailing
Publishers are Becoming More Risk Averse
The Pessimists
The Optimists
The Impact of the National Economy

Industry Consolidation, Changes Within the Publishing Industry Itself

“Editors no longer rely on their instincts and passions as selection criteria; instead they go by such formulas as, Bad Numbers, Author has no Platform etc.”

“Continuing consolidation and conglomeration of industry.”

“For non-fiction works, in particular, publishers need credentialed writers, which leaves out the many individuals who have great ideas but nothing to back it up. With fiction, they are more likely to take a chance on an unpublished writer IF it is in an area (genre) they are seeking at the time and the writing is passable enough.

Changes in Book Retailing

“Because of the pressure of the chain buyers, publishers are increasingly locked into publishing only the brand new authors with no record, and best selling authors.”

“Because as long as the retail market continues to consolidate in the hands of fewer and fewer retailers, the entire industry becomes dependent on the taste of a small handful of 'buyers' who choose which books get shelf space.”

End of Part 1

Avoid scams and still get your book published. Get our free report Perils and Pitfalls of Publishing for Writers just visit Free Report

2007-07-16T14:32:00.000-07:00

As you know I've been looking at different websites, blogs and discussion forms to see how I can better promote our books and our writing.

In my searches I stumbled upon a pretty nifty site SwitchPlanet.com. If you've ever wondered what to do with the books, CDS, videos, games, and movies you don't read, listen to, play, or watch anymore this site is going to interest you.

Joining and switching is free, no membership fees, or transaction fees. After you've joined, you list the items you want to switch. When someone wants, what you have, you ship it to them. You then earn switchbucs for the item you switched. You can use the switchbucs to get what you want.

No money changes hands between the switcheroos. If you're dying to get the DVD for King Kong, say, but are a dollar or two short, you can use your credit card to make up the difference. Everything is processed through SwitchPlanet.com

What's nice is that SwitchPlanet.com encourages its members to make donations to support several charities, like the Boys and Girls club, and the Red Cross.

Okay back to marketing and promotion. If you'd like me to review your website, book , or services just let me know.

Dee
capital-connection.com
brianhillanddeepower.com
Over Time the novel