It is no secret that many small importing companies have become big importing companies by capitalizing on the opportunity to buy goods from Chinese companies and re-sell them at great profit margins. With that accelerated growth comes a very big challenge. Sooner or later, you will get an order that exceeds your available financing.Now what? Do you turn the order away? Do you send it to the competition?Purchase order financing can help you deliver on this order and make the sale, while using none (or little) of your own money. It can help you make big sales and grow your company ? sometimes exponentially.To qualify for purchase order financing, you must meet the following criteria.1. Your business must invoice between $50K and $600K per month2. You must sell finished goods (e.g. be a re-seller or distributor)3. You must sell your products to other businesses or to the government4. Your profit margins must be at least 15% (higher is better of course)If you meet these criteria, purchase order financing can help you deliver on those big orders and help you take your company to the next level. PO financing is simple to use and easy to qualify for.A transaction works as follows. Once you have an order in place, the financing company opens a letter of credit naming your Chinese supplier as the beneficiary. The letter of credit (or LC) guarantees payment to the supplier, provided they deliver the products correctly. This enables you to complete the transaction.Once the order is delivered to your end client, an invoice is generated. The transaction is settled once your end client pays the invoice, usually 45 days after receiving it.As opposed to other types of financing, PO financing is easy to qualify for and to set up. The set up time is usually a couple of weeks. As you can see, this type of financing can help you grow your company by enabling you to take large orders that in the past you would have turned away.
Article Source: www.iSnare.com
Many business owners try to finance their growing businesses by going to venture capital or angel funding groups. Although both financing options provide a great way to finance a business, they are usually hard to qualify for. And furthermore, they all require that you give up some business equity in exchange for funds. That, needless to say, can be a very steep price to pay.There are some business financing alternatives that can allow you to finance your business, almost as effectively, without having to give up any equity. As opposed to venture funding or angel funding, these options are easy to qualify for and do not require the endless documentation and due diligence that venture money requires..However, these can only help you if you meet the following criteria:1. Your business is established and has commercial (not consumer) clients2. Your business invoices between $40K and $900K per monthThese alternatives will help you if:1. You need money to meet payroll, pay rent or pay suppliers2. Your customers pay you in 15 to 60 days3. You need (or wish) your customers to pay you soonerYour first option is called factoring (also known as invoice factoring). Factoring is ideal for businesses that cannot afford to wait 15 to 60 days to get paid by their clients. Factoring provides you with financing that is tied to your invoicing. Basically, the more your company invoices, the more financing you qualify for. This enables you to grow your company ? many times exponentially ? without having to give up equity.Your second option is called purchase order financing. It works well for re-sellers, distributors, traders and wholesalers. Purchase order financing is ideal for business owners that have a large purchase order in hand, and who cannot afford to pay their suppliers to deliver the product. PO financing enables you to get a letter of credit, backed by the financing company, to pay your suppliers. This allows you to deliver on the purchase order and effectively make the sale. Usually, very little ? if any ? of your money is required for the transaction.Both alternatives are easy to qualify for, take days (or a couple of weeks at most) to set up, and when used correctly allow you to grow your company exponentially.
Article Source: www.iSnare.com
The last two decades have seen IT become an integral part of the workplace. The internet explosion has given us access to more information than previous generations had access to in entire lifetimes. The internet also gave birth to what is now the most used means of communication in the modern workplace - email. In a mere twenty or so years, email has gone from being a computer company exclusive to communication tool no modern corporation would be without. As a result, the way we communicate with co-workers, our boss and employees has changed dramatically.Email traffic has taken over from the traditional phone conversation and instant messaging has also grown significantly. As a result face-to-face interaction has decreased significantly. But this is by no means the death of people skills in the workplace.IT simply provides a medium for people to communicate; so the increase in IT in the workplace has not killed people skills-it has simply changed the way people interact.People have had to become a lot more computer savvy to survive in the workplace. Traditional forms of business communication such as letter writing and phone conversations have been replaced with more net centric communication such as email and instant messaging. However the history and common understandings regarding how letters and phone conversations should be used do not exist for new communication styles, so business blunders, misunderstandings and misinterpretations are frequent.These changes have introduced a new set of interpersonal skills and etiquette that needs to be enforced in the workplace. Deeming what is appropriate and inappropriate for email and instant messaging is a struggle for organisations.An example of this is the number of workplaces that have used instant messaging inappropriately to announce redundancies. GMB members employed by the AA reported back to the union that selected patrol staff received two text messages on their mobile phones inviting them to accept ?12,000 to leave the employment of the AA. This was followed up by a second message inviting those targeted with the first message to give the manager a ring. This is reminiscent of the 2,500 workers at personal injury claims firm The Accident Group who were made redundant via text message, in 2003.We are only just now beginning to see the effects these technologies are having on our workplace and the roles we play within them. Take email as an example.Email is probably the most convenient form of written communication. However, overuse and spam has skewed the effectiveness of email. Hampered by overflowing inboxes, employees often spend too long trying to manage email overload and often miss important messages. This can in turn affect productivity. However this situation highlights the fact that verbal communication of email policies and good management procedures is the best way of controlling email overload- an example of where technology needs people skills.What is clear from these examples of instant messaging and email communication is that we are still learning how we should make the best of what technology has to offer.The truth is that technology will never replace face-to-face interaction. People respond to human communication and important issues can?t be dealt with via email, they must be done face-to-face. With between 55-70 percent of communication being non-verbal (ie through tone of voice and body language) communicating difficult messages through email or instant messaging is almost impossible.However the main reason why people skills will never be replaced with IT is that engaging people is the most fundamental part of business, and this needs to be done on an emotional, enthusiastic and passionate level which can only be conveyed via face-to-face interaction.IT is a perfect example of this. For years techies were considered nerdy with their traditional stereotype of thick black-rimmed glasses, high waisted pants and ?Rain man? type conversational skills. However, as technology has become more pervasive and more user friendly the need for technicians who understand the detail has reduced whilst the need for business focused people with a broad understanding of how to exploit technology has increased. Because of this IT professionals are moving away from the geek image and using their interpersonal skills to connect with others in the workplace.If IT professionals are embracing people skills, it is a sign that IT is not likely to make people skills extinct, if anything it has raised people?s awareness of just how important communication and human interaction in the workplace really is.
Article Source: www.iSnare.com
Imagine a business that doesn?t require thousands of dollars in startup costs ? no inventory, no rent, no franchise fees. Imagine a store with the potential to start earning money for you from day one, where you can sell anything under the sun without having to worry about stocking a single item. Imagine being able to run a store in your PJs without ever having to leave the comfort of your own home. Imagining it? Here?s the reality. You can build an ecommerce storefront to cash in on the internet money making craze in just a few hours ? but it takes planning, promotion and the sweat of your brow to make it into an ongoing source of internet income.We?re in the second wave of an internet money explosion. Unlike the first, the one that made a few people who were in the right place at the right time very very wealthy, this one is open to anyone who has the right qualities. Those qualities are the same ones that made names like Sears & Roebuck household words ? vision, persistence and good old-fashioned elbow grease.The increasing ease of internet publishing has made it possible for anyone to have a fully functioning store online and in operation in less than an hour ? and for less than $100. Storefront malls like Yahoo Small Business, CafePress and others let you get your own business started with full supports with just a few mouseclicks and a credit card number. But it takes far more than a ?prime location? to be successful as an internet merchant.The dismal truth is that failure rate in ecommerce retail is even higher than in brick and mortar stores, even if the financial loss is generally far less. The very fact that you can start your own business for so little has turned starting your own business into an impulse decision. It?s far too easy to make a decision on the spur of the moment ? and walk away when it doesn?t work out. There are things you can do to avoid becoming just one more internet money failure story. Here are five tips to help you make a success of your internet store.Don?t Make An Impulse DecisionDon?t jump at the first ecommerce opportunity that you see. Before you make a decision, take the time to do some research and ask yourself some questions about what you want out of your business then evaluate the best business opportunities for you.Know What You WantEvaluate the amount of time you have to put into a startup business. How involved to you want to be? There are many different ways to cash in on internet money. It?s possible to buy into a complete setup with store, merchant account and fully stocked shelves where all you?ll have to do is promote your site. On the other hand, if you?d like to have more control, you can build a store from scratch right down to stocking the shelves.Comparison Shop For the Best BusinessYou wouldn’t buy a car without comparison shopping. Why buy a business that way? There are literally dozens of ways to cash in on the internet money boom. Do you want the jump-start that goes with name recognition and support from a parent company? Then a franchise business might be right for you. Do you want total control over what you sell and for how much? Then you’ll want a business that lets you stock your own shelves. Are you creative and want to capitalize on your artistic abilities? Look into a storefront to market your own work. The possibilities are endless. Your hardest job is finding one that suits your style best.Pick Something You Love.The way to succeed on the internet is no different than the path to success in the brick and mortar world. It takes time and hard work. If you’re starting your own business, why would you choose to do something that you don’t love to do? Even if you decide to buy into a total package ecommerce turnkey store, pick a product that you love and can believe in. The better you know what you’re selling, the more successful you’ll be in promoting it. And when it comes to making internet money, promotion is the name of the game.Educate Yourself.No matter what you choose to sell, your main job is going to be promoting your website. The more you know about website promotion, the more successful you’ll be. Spend at least a few hours a week keeping up on the latest techniques of promoting your web site and watch your sales grow as you put them into practice.The potential for making money on the internet is real. It just takes some forethought, planning and a lot of hard work. Know what you want to do. Love what you do. Believe in your abilities - and you’ll find the internet money rolling into your account.
Article Source: www.iSnare.com
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