Category: Business

Business Card Etiquette

When doing business abroad it is important to understand the local culture. Culture includes areas such as a country’s norms, values, behaviours, food, architecture, fashion and art. However, one area of culture that is important for the international business person is etiquette.
Understanding business etiquette allows you to feel comfortable in your dealings with foreign friends, colleagues, customers or clients. Knowing what to do and say in the right places will help build trust and open lines of communication.
One aspect of etiquette that is of great importance internationally is the exchanging of business cards.
Unlike in North America or Europe where the business card has little meaning other than a convenient form of capturing essential personal details, in other parts of the world the business card has very different meanings.
For example, in Japan the business card is viewed as a representation of the owner. Therefore proper business etiquette demands one treats the business card with respect and honour.
Below we have provided you with a few examples of international business card exchange etiquette that may help you on your business trips abroad.
General Business Card Etiquette Tips:
Business cards are an internationally recognised means of presenting personal contact details, so ensure you have a plentiful supply.
Demonstrating good business etiquette is merely a means of presenting yourself as best you can. Failure to adhere to foreign business etiquette does not always have disastrous consequences.
When travelling abroad for business it is advisable to have one side of your business card translated into the appropriate language.
Business cards are generally exchanged at the beginning of or at the end of an initial meeting.
Good business etiquette requires you present the card so the recipient’s language is face up.
Make a point of studying any business card, commenting on it and clarifying information before putting it away.
Business Card Etiquette in China
Have one side of your business card translated into Chinese using simplified Chinese characters that are printed in gold ink since gold is an auspicious colour.
Ensure the translation is carried out into the appropriate Chinese dialect, i.e. Cantonese or Mandarin.
Your business card should include your title. If your company is the oldest or largest in your country, that fact should be highlighted on your card.
Hold the card in both hands when offering it.
Never write on someone’s card unless so directed.
Business Card Etiquette in India
If you have a university degree or any honour, put it on your business card.
Always use the right hand to give and receive business cards.
Business cards need not be translated into Hindi as English is widely spoken within the business community.
Business Card Etiquette in Japan
Business cards are exchanged with great ceremony.
Invest in quality cards.
Always keep your business cards in pristine condition.
Treat the business card you receive as you would the person.
Make sure your business card includes your title. The Japanese place emphasis on status and hierarchy.
Business cards are always received with two hands but can be given with only one.
During a meeting, place the business cards on the table in front of you in the order people are seated.
When the meeting is over, put the business cards in a business card case or a portfolio.
Business Card Etiquette in the UK
Business card etiquette is relaxed in the UK and involves little ceremony.
It is not considered bad etiquette to keep cards in a pocket.
Business cards should be kept clean and presentable.
Do not feel obliged to hand out a business card to everyone you meet as it is not expected.

Getting To Know Your Business Credit Card

Business owners are becoming increasingly dependent on business credit cards, albeit not quite to the extent that individual consumers rely on their personal credit cards. This dependence on business credit cards is mainly due to its usefulness in transacting and because it provides instant credit when needed. Realizing the huge potential of the small business market, more and more credit card issuers have come up with business credit card packages specifically designed to meet the needs of business owners.

If the credit card companies are correct in their predictions, business credit cards will become an essential tool for conducting business going into the future. Business owners may as well familiarize themselves with the basic benefits of business credit cards, to assist them in choosing a package best suited to their needs.

Cash flow when cash is low
Business credit cards offer a financial life line when an urgent expense needs to be incurred and the cash flow is temporarily impaired. It is also not uncommon for entrepreneurs to employ business credit cards in helping them get a business off the ground. Naturally a solid and sufficiently convincing business plan will be required with which to persuade a business credit card company to issue a business credit card for this purpose.

Earn as you spend
Business credit cards with various reward options are very popular. Many business owners appreciate the savings that these business credit cards offer in terms of airline tickets, hotel stays, car rentals, gasoline purchases, office supplies, printing, courier services, and more. There are variations to these reward options, but one can compare the different business credit card features and apply for the business credit card that best suits the business’ needs.

Credit when you need it
Companies that issue business credit cards know that businesses need more funding than individual consumers do. For this reason, higher spending limits exist on business credit cards when compared to those of personal credit cards. It is reassuring to know that the business has the ability to cover an expense – even if it is unexpected and substantial. Some business credit card issuers even allow business owners to cover overdrafts on their checking accounts by means of a cash advance drawn against the available credit on their business credit cards.

Access to business resources
If you’ve ever visited the web sites of business credit cards issuers, especially those belonging to the big banks, you will have noticed that they offer expert assistance to small businesses. This includes information on market research methods, business plan preparation, cash flow management and so forth. These valuable resources are available to holders of their business credit cards free of charge.

Both the application and the approval processes for business credit cards are quick and easy. It is time and effort well spent by any business owner. A business credit card has become an indispensable financial instrument, in every way. In addition to the direct benefits on offer, issuers of business credit cards also provide business owners with detailed, itemized statements at regular intervals. This is a great help in as far as bookkeeping is concerned. Provided that the business credit card, like any other financial instrument, is dealt with in a circumspect manner, it will enhance the potential of any business to succeed.

Business Plan Software

Business plan software is something that often gets overlooked
and isn’t considered to be a necessity for some reason. In my
opinion, business plan software is essential, it is not a luxury.
I am a huge advocate of business planning. When people ask me if
they need a business plan, my response is, “Absolutely!” You see,
starting a business without a business plan is akin to starting
college without a degree plan. If you don’t know where you are
going, you won’t know how to get there. You will waste your time
and your money if you are not following a plan. It’s really that
simple!
So, you know you need a business plan, but what about business
plan software? For business planning, there are really three
alternatives: 1) crafting your own business plan from scratch; 2)
hiring a business plan writer or business planning consultant; or
3) using business plan software to write your own business plan.
Each of these alternatives has its own advantages and
disadvantages.
Writing your own business plan from scratch is certainly a
possibility. Doing so gives you the freedom to format and arrange
the plan in any way that you see fit. On the other hand, doing
financial projections, which are necessary for the purpose of
budgeting and financial planning, can be difficult to do without
a business plan program, or at least financial projection
software or spreadsheets.
Hiring a business plan writer makes sense for some people. A
business plan writer is generally well-versed in business
planning and will have insight that will assist you in preparing
a comprehensive business plan that takes everything into account.
The disadvantages to having your business plan professionally
written are the expense associated with the initial plan, and the
limitations that exist in regard to changing it as your business
evolves, which is something that business plan software empowers
you to do.
Business plan software is relatively inexpensive when compared to
hiring a professional business plan writer or consultant.
However, when compared to doing your own plan from scratch, it
may seem like an unnecessary expense. Business plan software does
have many advantages. A good business plan software package, like
Business Plan Pro by Palo Alto, has the headings and categories
for a business plan already set up for you. It also has guidance
throughout the business planning process that explains what to
include in each part of your business plan.
What I really love about Business Plan Pro is that it is so easy
to do financial projections using the business plan software,
whether or not you understand accounting. The main financial
sections include a section for start-up costs, one for income
projections, one for a proforma balance sheet, and one for a
projected cash flow statement. Information that input into one of
the financial forms automatically transfers calculations to the
other financial statement forms making the process of projecting
your financial plan a breeze.
Another huge advantage I see in regard to business plan software
is that when you use business plan software to create your own
business plan, you can make changes to it anytime you need to. It
doesn’t become a stale document that sits on the shelf and
collects dust. A business plan should be always evolving. You
should update your business plan frequently including new goals,
objectives and milestones. You should also adjust your financial
projections regularly for the purpose of budgeting. Business plan
software makes it easy to do.
If you choose not to use business software, and to create your
own business plan from scratch, you will need some guidance
unless you are a professional business planner yourself. The
Small Business Administration www.sba.gov has some excellent
resources and guides about business planning. If you choose to
hire a professional business plan writer, do review their
qualifications and references and make certain that you
understand exactly what is included in the business planning
services they are offering.

Business Angels Investment

Sometimes new businesses can find wealthy benefactors who are willing to invest their capital in the business in return for compensation. These individuals are called “business angels.” This name comes from the fact that they step in to an investment situation when no one else will. Often small businesses have difficulty acquiring money for their starting costs. Large investment corporations and traditional lenders are often unwilling to take on the risk associated with beginning a small business. Business angels provide for this need. To the new business owner, they truly are angels, because they save the day in a desperate investment situation.

Typically, business angels will invest in businesses that need an amount that falls within £10,000 and £250,000. The average investment an angel investor makes initially is usually around £75,000. They will choose to invest in businesses with excellent business plans and the potential for a high return on investment. Business angels are picky when choosing businesses to invest in because of the high risk they take with the investment.

Why would a business angel be willing to invest in a high-risk new business endeavour? They are looking for financial gain at the end of the business relationship. Business angels receive a percentage of the equity of the business in return for their investment. This type of finance means that the business angel has a share of the ownership of the business. Sometimes they will retain some control over the way the business is run.

How will the money invested by a business angel be repaid? Often it is repaid through dividend payments when the business starts to receive income. Typically, the percentage the business angel receives is more than a traditional loan or other form of financing due to the high amount of risk involved. However, this high percentage is usually acceptable to the business owner because of the lack of other willing investors.

Business angels will want to have an exit strategy, should the business fail. When a new business approaches a business angel with a proposition and a request for financing, this exit strategy needs to be clearly presented. One example of an exit strategy would be a trade sale. The investor is repaid through the profit from the sale. Another way that a new business can give a potential business angel an exit strategy is to outline the procedures of a shareholder buyout. The business angel is looking to see that the business has a way to repay the investment, even if the business does not succeed.

Business angels often contribute more than just finances to a new business. They offer their advice and experience as well. While many new business owners may not like giving control of much of their business over to a business angel, the experience and expertise gained is extremely valuable to the new business entrepreneur. The business angel has accumulated wealth, and therefore has proven that he is able to succeed in business. This level of understanding is invaluable to the new business owner.

Business angels expect a high rate of return on their investment. Because of this cost, most businesses seek other forms of investment and start up capital before seeking the help of business angels. If you are beginning a new business and have exhausted all of your sources of capital, then an angel investor may be your best option. You may want to approach traditional lenders, friends, and family first before turning to a business angel, since these capital options cost you much less. If, however, you are at a point when you cannot find any other source of income for your business, then the time has come to turn to the help of a business angel!

Qualifying for a Poor Credit Business Loan

A poor credit business loan is designed for a business person or persons with a poor credit history.
In the life of a business, virtually all come across a time where extra money is needed for business growth, expansion, a new venture, or paying outstanding bills. Businesses owned and operated by an individual or individuals with a poor credit history are of no exception. The fall back on this type of situation is that it is difficult to qualify for a conventional loan if you are an individual or a part of a business partnership with an individual who has poor credit, and are in need of a business loan.
Poor credit business loans are designed especially for business people with a poor credit history. Poor credit business loans apply to both new ventures and existing businesses, and offer the business owner or owners the opportunity to turn around their poor credit rating, while also providing much needed financing for the business.
Pros of Obtaining a Poor Credit Business Loan
1. A poor credit business loan can offer a business person or business persons with poor credit an opportunity to receive a loan when they may otherwise not qualify for a conventional loan.
2. Poor credit business loans can offer the business owner or owners the opportunity to improve their business, and ultimately, improve their financial situation, economic standing, and ultimately, their credit ratings.
3. Loan terms for poor credit business loans can range from three to 25 years. Longer loan terms can offer the business owner or owners enough time to see the business through a rough financial period, proving their worthiness of the loan, and again, improving credit scores so that future loans can be obtained at a lower interest rate.
4. A poor credit business loan offers the business person or persons a chance to improve bad credit history. The poor credit business loan will provide money required to help the business grow and overcome its financial problems, as well as allow the business owner or owners the opportunity to become current on the new loan in order to increase credit scores by continuing to make monthly payments as scheduled.
5. An opportunity to have a lower interest rate is available on a poor credit business loan, provided that collateral is available to the lender.
6. A poor credit business loan can provide the business with regular access to cash, so that even in the worst financial situation, the business need not sell the entire business or part of the business to another individual or company to raise money.
Cons of Obtaining a Poor Credit Business Loan
1. The rate of interest on a poor credit business loan varies greatly according to the collateral offered. An unsecured poor credit business loan will have a much higher rate of interest.
2. If a poor credit business loan is not paid, it will not only affect the business owner’s or owners’ credit ratings, but also, it will only create even more problems for what was previously a grim financial situation.
3. A poor credit business loan will require a very high rate of interest to be paid if the borrower is considered extremely high risk to the lender. Collateral can assist in keeping the interest rate as low as possible.
Any business person who has the potential to repay a poor credit business loan and does not have a very severe credit history that includes things such as unpaid collections, repossessions, or serious late payments for a long duration, can qualify for a poor credit business loan. Even individuals who have had the misfortune of a bankruptcy more than ten years ago can qualify for a poor credit business loan. Business owners with poor credit who wish to either start a new venture, or require a poor credit business loan to improve or expand on an existing business, are provided a unique opportunity to help their economic and financial situation turn around and improve.
Before applying for a poor credit business loan, however, be sure to have a viable business plan, and prepare a professional loan proposal to show how much money is needed, and how the loan amount would make a difference to the business’ future endeavors. Great care and consideration should be taken to ensure that the business venture, expansion, or improvements will not fail. If the loan appears to be a high risk for your business, examine the situation carefully. An individual or individuals in business should take out a poor credit business loan only if it is completely clear that the poor credit business loan will make the situation better and not worse.

Why Owners Opt for Small Business Credit Cards

The small business credit card market is a rapidly growing market in the financial services industry. If you are planning to apply for small business credit cards, see how your reasons compare with those of other business credit card holders:

· Business credit cards provide credibility and legitimacy to your business. It is an intangible benefit, but when the business credit card company approves a business credit card for your small business, it gives a signal to other merchants that your business has good, sound credit. A business credit card is a very credible imprimatur.

· For the start-up small business, or one which has a tarnished record, a business credit card allows your business to build or rebuild a credit history. By ensuring that this credit history remains consistently positive, you will establish the foundation for securing a business loan or line of credit should you decide to expand the business in the future. The business credit card is your guaranteed line of credit for now.

· Monthly business expenses are easier to track with a business credit card. The monthly business credit card account statement helps with the reconciliation of the purchases you make on behalf of your business.

· The usefulness of the business credit card statement is not limited to tracking business expenses. It can also be used as a reliable – and acceptable – alternative documentary proof when you prepare your books and your financial reports for income taxation purposes.

· Business credit cards and personal credit cards have similar benefits and rewards. When you have a business credit card, you will have a separate opportunity to enjoy discounts, cash back and rewards points on purchases of the goods and services necessary for your business.

· When you have business credit cards issued to your employees, they can make purchases on behalf of your company without advancing their own funds, or use the business credit cards when they travel for business. Their use of the business credit cards makes it easier to account for expenses.

· When you charge purchases to business credit cards, you get the chance to enjoy cash discounts. Companies that supply business-to-business products normally give significant discounts when the purchase is paid for in full upon purchase. If the purchase is on credit, the discounts are smaller and calibrated according to the financed period. Charges to your business credit cards always count as cash purchases, since your business credit card issuer will take care of paying them shortly afterwards.

· The purchases you make on your business credit cards may qualify for special insurance protections from the business credit card company. In case something turns out wrong with the item you bought by means of your business credit card, and the merchant is not willing to return your money, the insurance protection will cover the amount.

· There is rightful concern about the high interest rates on business credit cards. Suffice to say that these are still lower than rates on merchant credit. If you make effective use of the float period, then pay off your balance in full each month, you actually avoid paying any interest at all. If you plan to carry a balance, make sure you find the business credit card with lower interest rates.

· The rewards business credit cards give great benefit when you do a lot of travel.

In short, it makes good business sense to have a business credit card or two at your disposal.

Business Owners’ Views of Business Credit Cards

There are quite a number of reasons why business owners choose to obtain business credit cards, but recent studies confirm that business credit cards are viewed most useful for keeping business and personal finances separate. Business owners say that their primary reason for using business credit cards is to avoid their business expenses from getting mixed up with their personal expenses: Using business credit cards separates the two, thereby contributing towards maintaining the integrity of their accounting records.

90% of all small business owners use business credit cards purely to make business related purchases, with more than 90% indicating that the primary need for business credit cards is business travel. They believe that airline flights, car rentals and hotel stays would be cumbersome without business credit cards.

Perhaps because of this close association between business travel and business credit cards, you won’t be surprised to hear that almost a third of the business owners consider cash back rewards as the most attractive feature, while one-fifth values the frequent flyer mile rewards most. To a lesser degree, the ready acceptance of business credit cards by vendors and suppliers was deemed to be an important consideration. Business owners are also happy with the ‘no annual fee’ feature offered by most business credit card issuers.

Business owners tend to use their business credit cards with very specific purposes in mind and are more conscious about settling business credit card balances in full. According to recent surveys, 63% of all small business owners execute their credit card payments in this manner to avoid finance charges. By comparison, only 40% of all individual Americans pay their full outstanding balances every month. This means that small business owners are less likely than their individual counterparts to accumulate interest fees on their business credit cards – a fact that issuing banks may not like since they earn their profits from interest charges. Business owners would advise you to pay your business credit cards in full or don’t use them.

Interestingly, nearly half (46%) of business owners thought that interest rates and related terms were their most important considerations when they applied for business credit cards. They indicated an appreciation for the temporary cash flow assistance that business credit cards provide, but expressed a dislike for paying interest fees and for debt accumulation. This concern for interest rates and their diligence in paying off business credit card bills to avoid fees implies that credit card companies do not make much money from small business owners.

Most business owners find one – or at most, two – business credit cards sufficient for their purposes. Compared to the average American who holds four to eight personal credit cards, the survey found that the average small business owner only has one or two business credit cards at most.

In fact, 86% of small business owners believe their business credit card spending limit was high enough for their needs and that too many business credit cards would tempt them to spend more than is really necessary. This attitude towards credit limits and multiple credit cards may be because small businesses, unlike ordinary individuals, do have access to alternate sources of debt financing – something that the ordinary individual does not.

To Successfully Obtain Business Capital Every Business Needs A Coach

If you are a business owner the task of obtaining business capital can be very daunting. Most businesses fail because they have never been taught how to obtain financing and therefore they have no clue where to begin. The Small Business Administration reports that 97% of business loan applications fail.

The importance of seeking expert assistance when setting up business credit has many business owners turning to a business finance coach to help them establish their business credit. One of the biggest mistakes made by business owners is that they attempt to obtain business financing using their personal credit. You should never use your social security number to obtain business financing. Personal credit has to be separated from your business credit.

Until your business has three separate business credit scores, any financing that your business receives will be based solely on your personal credit scores and your personal assets. A good example of this would be if you wanted to buy a home, but you had no personal credit scores. You would get declined, and funding a business is no different. You need to have business credit scores established to even get looked at for a business loan. Having business credit scores established are just a start in the finance process. There are 20 other items that must be in place before you apply for business loans.

“Missing just one of the 20 items will get your business denied,” says Finance Specialist James Christy. “If you follow the steps in a good business finance coach you will make sure that you have all of the items completed.”

For example, Lenders will deny a business loan application if the business legal name is not listed properly with the 411 Directory Assistance. Another way financing can be denied is if your business has a bank rating below a low 5 or if your business doesn’t have credit files open with the three business credit reporting agencies. Most lenders now require businesses to have three good credit scores. These are only a few of the items that must all be in place first before seeking approval for funding.

The process of establishing business credit is much more complicated than setting up personal credit. There is one business credit agency that will try to charge you $500 just to open your credit file. You do not have to pay it, and a good business finance coach will show you why you don’t have to pay it. A good finance coach will set you up with all three reporting credit agencies as well.

A business finance coach instructs business owners in a step-by-step format on exactly what they must do to get their business ready to be approved for financing and how and why to build the business credit scores they need to get approved. A coach will show a business how to not only build business credit, but to build good business credit that the banks and other lending agencies will use to approve your loan request. A good finance coach will typically direct you to sources for business credit cards, vendor lines of credit and for other creative forms of financing.

To find a business finance coach to help your business build excellent business credit scores you might go to your favorite search engine Google, Yahoo, or MSN and do a search for the phrase “business finance coach”.

Compare Business Credit Cards and Save Money

Today’s business owners are able to take advantage of the incentives offered to them by applying for business credit cards. Whether it is a large or small business, having a line of credit is crucial and business owners need to compare business credit cards to determine whether or not they fit their business needs. In retrospect, by determining which card is in line with an owner’s business, he or she is actually making one of the most valuable decisions a business owner can make.

For some business owners, determining what type of business credit card fits the needs of their business may be a daunting task. What’s most important to keep in mind is that sitting down and brainstorming is better than finding out later that a bad decision was made and it could quickly become a very costly mistake.

Different business credit cards offer business owners various things. The business owner should be aware that if a business credit card offers major traveler’s benefits, like travel points and traveler’s insurance, but that business owner never is required to travel, what good does that amenity do for his or her business? Once the business owner determines what best suits the needs of his or her business, then follows the process of research, the best credit card choice can be made.

Credit card companies offering business credit cards pride themselves on showcasing what the company is offering. With great advertising effort, business credit cards use words like “Earn Points” that can be used to purchase supplies at selected vendor locations. “No Spending Limit” allows cardholders to have no pre-set limit, which means they are not bound to a strict purchase limit. “Low interest rates” allow business owners to pay only minimal interest rate fees. ‘Pay back’ guidelines may be either the next month or account payments may be stretched out to let business owners have the luxury of not worrying about paying the balance on their business credit cards. Comparing business cards can sometimes be a daunting experience but for the most part it is a needed task because making educated choices is necessary when self employed in order to avoid business failure.

Comparing business credit cards can lead to determining what suits the needs of your business. The types of business cards vary and each offers incentives to business owners in order to maintain or create long lasting business relationships and respectability. There are, however, certain types of business credit cards that all business owners, large or small, should take advantage of.

It is best to look for the type of business credit card that offers attractive low interest rates that are not only implemented temporarily, but that will stay low for the life of the business credit card. Make certain the low interest rate is not advertised for just the first month of the business credit card or for the first year of the business credit card. Compare business credit cards and determine which fits this case. Business credit cards with an introductory 0.00% APR can, however, be great for a business owner that anticipates being able to pay the balance in full every month after the introductory period is complete.

Some business credit cards have phenomenal cash back rebates programs, but have a limit to the number of cash back awards the business credit card receives. Look for the business credit card that has a no limit on its cash back program. There are also some business credit cards that give business owners the option to pay over time or pay balance in full. It is important to decide on business needs before choosing the business credit card that has these options. Paying over an extended time period can be helpful when making large purchases with a business credit card, but the interest rate can have a large impact on the final amount paid. The bottom line is to compare business credit cards in order to choose the right one to meet all of the business’ needs.

Business Broker Guide- How To Choose A Reliable Business Broker

Business brokers or business transfer agents are helpful in selling your business at higher prices. A business broker provides buyers as well as sellers for different businesses. You can easily sell or buy a running business with the help of best business brokers. Business broker works like a real estate agent.
Business brokers find buyers for you to make an effective business sale. Hiring business brokers is the better option to gain more offers and profit. You can even get maximum prices for your small business. Business broker can be a person as well as a firm that enables you to sell various businesses that includes Internet businesses as well as website.
Business brokers provide accurate value of the business. They advertise your business for sale and handle all initial discussions with the buyers and also help the sellers to sell their business at good prices. They attract buyers in different ways. They advertise for your business on their websites and manage space in business newspapers and magazines.
Business brokers are very much confident with their work. They work on the behalf of sellers and sometimes suggest them about how to get more profit from business assets. Buyers can also get benefits of business brokers by telling their requirements. They only charge some commission for every transaction. Usually they get charge commission from both buyers as well as sellers.
While thinking about business brokers, very first question that comes in mind, how to choose a right business broker?
There are not specific qualifications of business brokers but the person or firm, that you’re going to hire for your business transactions, should be reliable, knowledgeable, experienced, planned and friendly with you. You should call two or more business brokers for interview and then choose the best among them. You should check whether the broker has great knowledge about the business or not. Just check out their brokerage skill. Always choose a reputable brokerage firm for your business activities.
Business brokers should know how to maintain good buyer-seller relationship. Broker works as a bridge between buyers and sellers. You should check their working ability as well as their common sense. The person who can devote time for your business is the best business broker.
International Business Brokers Association is the leading association of business brokers.