There’s a lot of doubt on the much touted US economic recovery, but as days go by, it seems the downturn which started in December 2007 has its roots in the mortgage industry, might be starting to become an upturn.
The Obama administration’s stimulus package together with smart government moves such as lowering of bank lending rate to record low levels and approving of programs to provide billions of dollars into the financial system is delivering encouraging results. Everything is on the upward trend, the stock market, the housing sales and construction, the consumption index, and sad to say includes the unemployment rate.
The unemployment rate has been increasing steadily as companies nowadays employ a common practice of laying off employees until the financial position of the company improves. Recently big businesses such as Goodyear Tire & Rubber will be kicking off 5,000 people and 3M Company is taking out 1,200 staffs. This practice keep pushing the unemployment rate higher and it now stands at 8.5 percent. Things will get worst as experts predict it will reach 10 percent by the end of this year.
However this setback is offset by more positive news recently. The US government had just announced that the U.S. trade deficit dropped to 28.3 percent in the month of February. For two months since the start of the year the annual rate of deficit stands at $373 billion. Ever since the recession started the trade deficit has been declining as Americans reign in their spending and focus on saving. The month of February saw one of the highest saving rates in the country which stood at 3.6 percent. The US trade deficit indicates that it is exporting more than importing. While imports are decreasing, exports of goods and services increase by 1.6 percent last month.
Not only that the stock market continue its rally which was triggered by the news from Citigroup’s first ever profit since the summer of 200. As of Thursday the Dow Jones industrial index went up by 2.6 percent to 8,042 points. The further increase this time is triggered by a news update from banking giant Wells Fargo. Wells Fargo which is one of the recipients of stimulus package is expecting a profit of $3 billion dollars for this quarter.
This stock market rally in turn passed the positive effects to its European and Asian counterpart as Japan's Nikkei stock increased by 3.7 percent and Germany's DAX went up by 2.9 percent.
For the first time in eight months, the Dow Jones-AIG Commodity Total Return Index went up by 3.5 percent. The index is an indicator of the increase in commodities prices which itself indicates an increase in consumption. There have been reports of the general consumer index is going up this month of March.
The last good news ironically pertains to the labor sector. The Labor Department reported recently that jobless claims went down to 654,000. This number is way below the 660,000 claims expected by experts. In the US if you are jobless for good reasons, the government provides financial help in the form of unemployment benefits up to a certain period of time.
As time passes, more and more positive news are coming out, solidifying the claim that the much waited economic turn around is really here and it’s happening this very minute.
Saturday, April 25, 2009
Why The Financial News Media Can Cost You Money!
The communication innovations we have around us today like the internet, financial newspapers, and special interest television channels focused on investing like CNBC are a high speed pipeline of nonsensical chatter. All these sources of information mean that there is no shortage of media people trying to answer our questions about the stock market and specific stocks. You have to remember that the news media are constantly competing to survive against other stuff you can watch. If they don’t always sound like they know exactly what is going on then you won’t watch their presentations. If you don’t tune into their show then their ratings go down. If their ratings go down they get fired and their show gets cancelled.
This means that financial journalists are in the business of finding great stories and sounding like authorities no matter what. The stock market is a great place for them to dig up news ‘scoops’ to feed to the public. They don’t really check their facts very well and sometimes not at all. This means that if some insider wants to feed you a line of bull manure then all they have to do is maintain good connections with financial journalists, sponsor an investment show, or outright buy an investing TV channel like Jack Welsh the CEO of GE did when he set up CNBC. What a great way for inside executives to control the flow of news information to the public then to actually own one of the only financial news channels…but not so great for you!
These journalists also kick up the fire by bringing in so-called ‘experts’ to talk about each side of some topic that real experts would not consider important. This just makes it all the more confusing for the public to understand what is important when buying or selling a stock. Shows on CNBC like ‘Closing Bell’, ‘Kudlow & Company’, and ‘Mad Money’ do nothing but confuse and misdirect the attention of most individual investors in the public. Even worse this means that the financial news media allows overpriced stocks to be recommended through analysts in the inside web that inside executives are dumping on the public because they are trying to get out. This actually happened at the top of the bull market in 1999. For a great historical description of what happened read Maggie Mahar’s book entitled “Bull.”
The famous Yale University Economist, Prof. Bob Shiller, Ph.D. is particularly harsh on the media in his book “Irrational Exuberance.” Dr. Shiller is one the economists that Alan Greenspan respects most and where he got the term “Irrational Exuberance.” He portrays the media as sound-bite-driven where superficial opinions are preferred over in-depth analyses. I agree whole heartedly with him and contend that it is also done just because the industry would rather have the retail investor confused and emotionally pliable to get you to buy and sell when they want with total disregard for your best interests!
People who had invested their life savings in the stock market were ripped off in the stock market because the financial news media and analysts were hyping up what a great buy stocks were at the very top of the market in 1999 and 2000. At the same time inside corporate executives were selling out everything they had. What is amazing is that our federal government in the form of the Security Exchange Commission never did a thing about it. There was never an blanket case taken or an outcry that almost all of the inside executives had somehow magically sold out of the market six months before the market crashed.
Here is the valuable tip I want you to consider in this issue of “The Wallet Doctor”: when you are a beginner investor it is important that you DO NOT WATCH THE FINANCIAL NEWS OR READ THE FINANCIAL NEWSPAPERS! Don’t let the stock market industry lead you around by the nose like livestock to the slaughter house. Don’t listen to what they want you to listen to. You should focus on learning what is important in the stock market and the mass media will only confuse you until you have educated yourself. Also, don’t forget that I show you how to focus on what is important to identify stocks that are low priced but unlikely to go lower because the insiders may be buying them up and I show you when to sell when the same insiders are likely dumping the same stocks on the public in my course “The Blue Collar Base Bonanza – What the insiders [definitely] don’t want you to know!” You can get more course information on the course website.
Recommended reading:
1. Mahar, M. Bull! A History of the Boom, 1929-1999 (New York, HarperBusiness , 2003)
2. Shiller, R., Irrational Exhuberance, (New York, Broadway Books, 2000)
I wish you the great abundance in your life you deserve because of what you are and don’t forget that happiness is found only in the precious present moment!
This means that financial journalists are in the business of finding great stories and sounding like authorities no matter what. The stock market is a great place for them to dig up news ‘scoops’ to feed to the public. They don’t really check their facts very well and sometimes not at all. This means that if some insider wants to feed you a line of bull manure then all they have to do is maintain good connections with financial journalists, sponsor an investment show, or outright buy an investing TV channel like Jack Welsh the CEO of GE did when he set up CNBC. What a great way for inside executives to control the flow of news information to the public then to actually own one of the only financial news channels…but not so great for you!
These journalists also kick up the fire by bringing in so-called ‘experts’ to talk about each side of some topic that real experts would not consider important. This just makes it all the more confusing for the public to understand what is important when buying or selling a stock. Shows on CNBC like ‘Closing Bell’, ‘Kudlow & Company’, and ‘Mad Money’ do nothing but confuse and misdirect the attention of most individual investors in the public. Even worse this means that the financial news media allows overpriced stocks to be recommended through analysts in the inside web that inside executives are dumping on the public because they are trying to get out. This actually happened at the top of the bull market in 1999. For a great historical description of what happened read Maggie Mahar’s book entitled “Bull.”
The famous Yale University Economist, Prof. Bob Shiller, Ph.D. is particularly harsh on the media in his book “Irrational Exuberance.” Dr. Shiller is one the economists that Alan Greenspan respects most and where he got the term “Irrational Exuberance.” He portrays the media as sound-bite-driven where superficial opinions are preferred over in-depth analyses. I agree whole heartedly with him and contend that it is also done just because the industry would rather have the retail investor confused and emotionally pliable to get you to buy and sell when they want with total disregard for your best interests!
People who had invested their life savings in the stock market were ripped off in the stock market because the financial news media and analysts were hyping up what a great buy stocks were at the very top of the market in 1999 and 2000. At the same time inside corporate executives were selling out everything they had. What is amazing is that our federal government in the form of the Security Exchange Commission never did a thing about it. There was never an blanket case taken or an outcry that almost all of the inside executives had somehow magically sold out of the market six months before the market crashed.
Here is the valuable tip I want you to consider in this issue of “The Wallet Doctor”: when you are a beginner investor it is important that you DO NOT WATCH THE FINANCIAL NEWS OR READ THE FINANCIAL NEWSPAPERS! Don’t let the stock market industry lead you around by the nose like livestock to the slaughter house. Don’t listen to what they want you to listen to. You should focus on learning what is important in the stock market and the mass media will only confuse you until you have educated yourself. Also, don’t forget that I show you how to focus on what is important to identify stocks that are low priced but unlikely to go lower because the insiders may be buying them up and I show you when to sell when the same insiders are likely dumping the same stocks on the public in my course “The Blue Collar Base Bonanza – What the insiders [definitely] don’t want you to know!” You can get more course information on the course website.
Recommended reading:
1. Mahar, M. Bull! A History of the Boom, 1929-1999 (New York, HarperBusiness , 2003)
2. Shiller, R., Irrational Exhuberance, (New York, Broadway Books, 2000)
I wish you the great abundance in your life you deserve because of what you are and don’t forget that happiness is found only in the precious present moment!
Cover Redundancy With Mortgage, Loan or Income Payment Protection
You are able to cover redundancy with mortgage, loan or income payment protection depending on your needs. All policies can be taken out independently with specialist providers and this is the cheapest way to get a quality product that you are able to fall back on if and when you where to lose your own income.
Income payment protection when taken out to cover redundancy would give you a sum of money that you insured at the time of taking the protection. All payment protection specialists would allow you to insure a certain amount of the income each month. This would affect the premium that you are asked to pay and your age would also be taken into account. This means the younger you are when you protect your income the cheaper the protection would be.
Income cover would allow you the luxury of having an income each month so that you would be able to search for work without having financial worries. You would be able to continue paying your mortgage at the end of the month and so not risk losing your home if you get into arrears that are no longer manageable. If you go into mortgage arrears you would have to make an agreement with the lender to pay off what you owe while also being able to pay your normal payments. As arrears were caused by being unable to pay there would be no chance of making such an agreement. Therefore the lender would have no option but to take you to court and this means repossession would be imminent.
Of course you would also have the money to pay all of your other outgoings which keep you home up and running and your family happy. This would also include having the funds to be able to maintain such as loan repayments or credit card bills when they came around.
You could also cover redundancy and your mortgage on its own with mortgage payment protection. Just insure the repayment you make each month, again up to a set amount and then use this to pay your mortgage lender and avoid arrears. Loan payments could also be kept in check with loan payment protection and this means your credit rating is kept intact. A bad credit rating leads to a refusal in the future by lenders when you want to take out another loan or any kind of credit.
It also takes a lot longer to repair a bad credit rating than it does to get one.
When you cover redundancy with payment protection you would have a deferment period before claiming. This can be between the 30th and 90th days of you being unemployed. Some payment protection providers will backdate the benefit to the first unemployment date before continuing to supply you with an income that would be tax-free. All policies will payout for a pre-determined period of time which is stated in the terms of the policy, this must be checked before you sign. Usually you are able to take out cover which lasts either for 12 monthly payments or 24 monthly payments before it ends.
Income payment protection when taken out to cover redundancy would give you a sum of money that you insured at the time of taking the protection. All payment protection specialists would allow you to insure a certain amount of the income each month. This would affect the premium that you are asked to pay and your age would also be taken into account. This means the younger you are when you protect your income the cheaper the protection would be.
Income cover would allow you the luxury of having an income each month so that you would be able to search for work without having financial worries. You would be able to continue paying your mortgage at the end of the month and so not risk losing your home if you get into arrears that are no longer manageable. If you go into mortgage arrears you would have to make an agreement with the lender to pay off what you owe while also being able to pay your normal payments. As arrears were caused by being unable to pay there would be no chance of making such an agreement. Therefore the lender would have no option but to take you to court and this means repossession would be imminent.
Of course you would also have the money to pay all of your other outgoings which keep you home up and running and your family happy. This would also include having the funds to be able to maintain such as loan repayments or credit card bills when they came around.
You could also cover redundancy and your mortgage on its own with mortgage payment protection. Just insure the repayment you make each month, again up to a set amount and then use this to pay your mortgage lender and avoid arrears. Loan payments could also be kept in check with loan payment protection and this means your credit rating is kept intact. A bad credit rating leads to a refusal in the future by lenders when you want to take out another loan or any kind of credit.
It also takes a lot longer to repair a bad credit rating than it does to get one.
When you cover redundancy with payment protection you would have a deferment period before claiming. This can be between the 30th and 90th days of you being unemployed. Some payment protection providers will backdate the benefit to the first unemployment date before continuing to supply you with an income that would be tax-free. All policies will payout for a pre-determined period of time which is stated in the terms of the policy, this must be checked before you sign. Usually you are able to take out cover which lasts either for 12 monthly payments or 24 monthly payments before it ends.
Economic Recession Strategy - How To Keep Your Business Alive During Economic Recession
You may be in Mail Order, Direct Mail, E-Mail/E-Zine Marketing, or you may be a local merchant with 150 employees; whatever the case-you've got to know how to keep your business alive during economic recessions.
Long before the cash flow in a business, large or small, starts to tighten up, the money management of that business has to be run as a "tight ship." Some of the things you can and should do include protecting yourself from expenditures made on sudden impulse.
We've all bought merchandise or services we really didn't need simply because we were in the mood, or perhaps in response to the flam-boyancy of the advertising or the persuasiveness of the salesperson.
Then we sort of "wake up" a couple of days later and find that we've committed hundreds of dollars of business funds for something that's not essential to the success of our own business, when really pressing items had been eagerly waiting for those dollars.
If you are incorporated, you can eliminate these "impulse purchases" by including in your by-laws a clause that states: "All purchasing decisions over (a certain amount) are contingent upon approval by the board of directors."
This will force you to consider any "impulse purchases" of serious cost, and may even be a reminder in the case of smaller purchases.
If your business is a partnership, you can state, when faced with a buying decision, that all purchases are contingent upon the approval of a third party. In reality, the third party can be your partner, one of your department heads, or even one of your suppliers.
If your business is a sole proprietorship, you don't have much to worry about really, because as an individual you have three days to think about your purchase, and then to nullify that purchase if you think you don't really need it or can't afford it.
While you may think you cannot afford it, be sure that you don't "short-change" yourself on professional services. This would apply especially during a time of emergency.
Anytime you commit yourself and move ahead without completely
investigating all the angles, and preparing yourself for all the contingencies that may arise, you're skating on thin ice.
Regardless of the costs involved, it always pays off in the long run to seek out the advice of experienced professionals before embarking on a plan that could ruin you.
1244 Stock Category Advantages-
As an example, an experienced business consultant can fill you in on the 1244 stock advantages. Getting eligibility for the 1244 stock category is a very simple process, but one with tremendous benefits to your business.
The 1244 stock encourages investors to put equity capital into your business because in the event of a loss, amounts up to the entire sum of the investment can be written off in the current year.
Without the "1244" classification, any losses would have to be spread over several years, and this, of course, would greatly lessen the attractiveness of your company's stock. Any business owner who has not filed the 1244 corporation has in effect cut himself off from 90 percent of his prospective investors.
Getting “Hard-Nosed”-
Particularly when sales are down, you must be "hard-nosed" with people trying to sell you luxuries for your business. When business is booming, you undoubtedly will allow sales people to show you new models of equipment or a new line of supplies; but when your business is down, skip the entertaining frills and concentrate on the basics.
Great care must be taken however, to maintain courtesy and allow these sellers to consider you a friend and call back at another time.
Your company's books should reflect your way of thinking, and whoever maintains them should generate information according to your policies.
Thus, you should hire an outside accountant or accounting firm to figure your return on your investment, as well as the turnover on your accounts receivable and inventory. Such an audit or survey should focus in depth on any or every item within the financial statement that merits special attention.
In this way, you'll probably uncover any potential financial problems before they become readily apparent, and certainly before they could get out of hand.
Further Considerations-
Many small companies set up advisory boards of outside professional people. These are sometimes known as Power Circles, and once in place, the business always benefits, especially in times of short operating capital.
Such an advisory board or power circle should include an attorney, a certified public accountant, civic club leaders, owners or managers of businesses similar to yours, and retired executives.
Setting up such an advisory board of directors is really quite easy, because most people you ask will be honored to serve. Once your board is set up, you should meet once a month and present material for review.
Each meeting should be a discussion of your business problems and an input from your advisers relative to possible solutions.
These members of your board of advisers should offer you advice as well as alternatives, and provide you with objectivity. No formal decisions need to be made either at your board meeting, or as a result of them, but you should be able to gain a great deal from the
suggestions you hear.
You will find that most of your customers have the money to pay at least some of what they owe you immediately.
To keep them current, and the number of accounts receivable in your files to a minimum, you should call them on the phone and ask for some kind of explanation why they're falling behind.
If you develop such a habit as part of your operating procedure,
you'll find your invoices will magically be drawn to the front of their piles of bills to pay.
While maintaining a congenial and courteous attitude, don't hesitant, or too much of a "nice guy" when it comes to collecting money.
Building the Strength of Your Stay Power-
Something else that's a very good business practice, but which few business owners do is to methodically build a credit rating
with their local banks.
Particularly when you have a good cash flow, you should borrow $100 to $1,000 from your banks every 90 days or so. Simply borrow the money, and place it in an interest bearing account, and then pay it all back at least a month or so before it's due.
By doing this, you will increase the borrowing power of your signature, and strengthen your ability to obtain needed financing on short notice.
This is a kind of business leverage that will be of great value to you if or whenever your cash position becomes less favorable.
By all means, join your industry's trade associations. Most of these organizations have a wealth of information available on everything from details on your competitors to average industry sales figures, new products, services, and trends.
If you are given a membership certificate or wall plaque, you should display these conspicuously on your office wall. Customers like to see such "seals of approval" and feel additional confidence in your business when they see them.
Often Overlooked-
If at all possible, you should have your spouse work in the business with you for at least three or four weeks per year.
The important thing is that if for any reason you are not available to run the business, your spouse will be familiar with certain people and situations about your business.
These people should include your attorney, accountant, any advisors or consultants, creditors and your major suppliers. The long-term advantages of having your spouse work four weeks per year in your business with you will greatly outweigh the short-term inconvenience.
Many couples share responsibility and time entirely, which is in most cases even more desirable. Whenever you can, and as often as you need it, take advantage of whatever free business counseling is available.
The Small Business Administration published many excellent booklets, checklist and brochures on quite a large variety of businesses.
These publications are available through the U.S. Government Printing Office. Most local universities, and many private organizations hold seminars at minimal cost, and often without charge. You should also take advantage of the services offered by your bank and local library.
The important thing about running a small business is to know the direction in which you're heading...to know on a day-to-day basis your progress in that very direction [your dynamic Business/Marketing Plan]
Be aware of what your competitors are doing and practice good money management at all times.
All this will prepare you to recognize potential problems before they arise. In order to survive with a small business, regardless of the economic climate, it is essential to surround yourself with smart
people, and practice sound business management at all times.
The Misconception About Business In The Summer-
Whoever started the nasty rumor that Mail Order business is very slow during the months of July and August is dead wrong. In case you are new to the world of Mail Order you are likely to believe this rumor.
The sad part is that a lot of people in the business really believe it! Why do they believe it? Because they have been told by someone else and the rumor was considered "gospel" - so that someone told someone else and so on- sound familiar?!?
What people don't realize is that there is no foundation to this rumor. The only reason the mail order business MAY slow down in the summer months is because of the nature of the product being sold. Try selling winter clothes in July!
Some people will go so far as to stop advertising during the summer months because they are convinced they won't get any sales. Because of the drop in revenue for publishers, due to this line of thinking-
Everybody suffers and they keep the rumor alive and true. Only people believing this lie are making it happen.
Long before the cash flow in a business, large or small, starts to tighten up, the money management of that business has to be run as a "tight ship." Some of the things you can and should do include protecting yourself from expenditures made on sudden impulse.
We've all bought merchandise or services we really didn't need simply because we were in the mood, or perhaps in response to the flam-boyancy of the advertising or the persuasiveness of the salesperson.
Then we sort of "wake up" a couple of days later and find that we've committed hundreds of dollars of business funds for something that's not essential to the success of our own business, when really pressing items had been eagerly waiting for those dollars.
If you are incorporated, you can eliminate these "impulse purchases" by including in your by-laws a clause that states: "All purchasing decisions over (a certain amount) are contingent upon approval by the board of directors."
This will force you to consider any "impulse purchases" of serious cost, and may even be a reminder in the case of smaller purchases.
If your business is a partnership, you can state, when faced with a buying decision, that all purchases are contingent upon the approval of a third party. In reality, the third party can be your partner, one of your department heads, or even one of your suppliers.
If your business is a sole proprietorship, you don't have much to worry about really, because as an individual you have three days to think about your purchase, and then to nullify that purchase if you think you don't really need it or can't afford it.
While you may think you cannot afford it, be sure that you don't "short-change" yourself on professional services. This would apply especially during a time of emergency.
Anytime you commit yourself and move ahead without completely
investigating all the angles, and preparing yourself for all the contingencies that may arise, you're skating on thin ice.
Regardless of the costs involved, it always pays off in the long run to seek out the advice of experienced professionals before embarking on a plan that could ruin you.
1244 Stock Category Advantages-
As an example, an experienced business consultant can fill you in on the 1244 stock advantages. Getting eligibility for the 1244 stock category is a very simple process, but one with tremendous benefits to your business.
The 1244 stock encourages investors to put equity capital into your business because in the event of a loss, amounts up to the entire sum of the investment can be written off in the current year.
Without the "1244" classification, any losses would have to be spread over several years, and this, of course, would greatly lessen the attractiveness of your company's stock. Any business owner who has not filed the 1244 corporation has in effect cut himself off from 90 percent of his prospective investors.
Getting “Hard-Nosed”-
Particularly when sales are down, you must be "hard-nosed" with people trying to sell you luxuries for your business. When business is booming, you undoubtedly will allow sales people to show you new models of equipment or a new line of supplies; but when your business is down, skip the entertaining frills and concentrate on the basics.
Great care must be taken however, to maintain courtesy and allow these sellers to consider you a friend and call back at another time.
Your company's books should reflect your way of thinking, and whoever maintains them should generate information according to your policies.
Thus, you should hire an outside accountant or accounting firm to figure your return on your investment, as well as the turnover on your accounts receivable and inventory. Such an audit or survey should focus in depth on any or every item within the financial statement that merits special attention.
In this way, you'll probably uncover any potential financial problems before they become readily apparent, and certainly before they could get out of hand.
Further Considerations-
Many small companies set up advisory boards of outside professional people. These are sometimes known as Power Circles, and once in place, the business always benefits, especially in times of short operating capital.
Such an advisory board or power circle should include an attorney, a certified public accountant, civic club leaders, owners or managers of businesses similar to yours, and retired executives.
Setting up such an advisory board of directors is really quite easy, because most people you ask will be honored to serve. Once your board is set up, you should meet once a month and present material for review.
Each meeting should be a discussion of your business problems and an input from your advisers relative to possible solutions.
These members of your board of advisers should offer you advice as well as alternatives, and provide you with objectivity. No formal decisions need to be made either at your board meeting, or as a result of them, but you should be able to gain a great deal from the
suggestions you hear.
You will find that most of your customers have the money to pay at least some of what they owe you immediately.
To keep them current, and the number of accounts receivable in your files to a minimum, you should call them on the phone and ask for some kind of explanation why they're falling behind.
If you develop such a habit as part of your operating procedure,
you'll find your invoices will magically be drawn to the front of their piles of bills to pay.
While maintaining a congenial and courteous attitude, don't hesitant, or too much of a "nice guy" when it comes to collecting money.
Building the Strength of Your Stay Power-
Something else that's a very good business practice, but which few business owners do is to methodically build a credit rating
with their local banks.
Particularly when you have a good cash flow, you should borrow $100 to $1,000 from your banks every 90 days or so. Simply borrow the money, and place it in an interest bearing account, and then pay it all back at least a month or so before it's due.
By doing this, you will increase the borrowing power of your signature, and strengthen your ability to obtain needed financing on short notice.
This is a kind of business leverage that will be of great value to you if or whenever your cash position becomes less favorable.
By all means, join your industry's trade associations. Most of these organizations have a wealth of information available on everything from details on your competitors to average industry sales figures, new products, services, and trends.
If you are given a membership certificate or wall plaque, you should display these conspicuously on your office wall. Customers like to see such "seals of approval" and feel additional confidence in your business when they see them.
Often Overlooked-
If at all possible, you should have your spouse work in the business with you for at least three or four weeks per year.
The important thing is that if for any reason you are not available to run the business, your spouse will be familiar with certain people and situations about your business.
These people should include your attorney, accountant, any advisors or consultants, creditors and your major suppliers. The long-term advantages of having your spouse work four weeks per year in your business with you will greatly outweigh the short-term inconvenience.
Many couples share responsibility and time entirely, which is in most cases even more desirable. Whenever you can, and as often as you need it, take advantage of whatever free business counseling is available.
The Small Business Administration published many excellent booklets, checklist and brochures on quite a large variety of businesses.
These publications are available through the U.S. Government Printing Office. Most local universities, and many private organizations hold seminars at minimal cost, and often without charge. You should also take advantage of the services offered by your bank and local library.
The important thing about running a small business is to know the direction in which you're heading...to know on a day-to-day basis your progress in that very direction [your dynamic Business/Marketing Plan]
Be aware of what your competitors are doing and practice good money management at all times.
All this will prepare you to recognize potential problems before they arise. In order to survive with a small business, regardless of the economic climate, it is essential to surround yourself with smart
people, and practice sound business management at all times.
The Misconception About Business In The Summer-
Whoever started the nasty rumor that Mail Order business is very slow during the months of July and August is dead wrong. In case you are new to the world of Mail Order you are likely to believe this rumor.
The sad part is that a lot of people in the business really believe it! Why do they believe it? Because they have been told by someone else and the rumor was considered "gospel" - so that someone told someone else and so on- sound familiar?!?
What people don't realize is that there is no foundation to this rumor. The only reason the mail order business MAY slow down in the summer months is because of the nature of the product being sold. Try selling winter clothes in July!
Some people will go so far as to stop advertising during the summer months because they are convinced they won't get any sales. Because of the drop in revenue for publishers, due to this line of thinking-
Everybody suffers and they keep the rumor alive and true. Only people believing this lie are making it happen.
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