Why Should You Have a Business Plan?

Are you planning to start a new business? Or are you considering
expanding your current business and require a bank loan or
investment from outsiders?

If you are going to look for an investment of capital it is quite
likely that you will be required to have a business plan. If you
are starting a business, despite the work involved, a business
plan can prepare you for the obstacles ahead and help ensure your
success.

A business plan is something that many small businesses fail to
create, however, many business owners are adamant that having a
written business plan is one of the keys to their present
success. Creating a business plan forces you to contemplate
possible obstacles to your business and prepares you to find
solutions that will help you to overcome them.

To find investors or get a bank loan, they will want to see that
you have the experience or resources to run the business. They
will want to see your projected income as well as your suggested
repayment plan already laid out. Taking the time to do this is
not only important for them, but it gives you a measuring tool to
verify if your business is growing properly. You can gage your
success on how close to the plan your business has actually
performed. Perhaps you'll do worse, or perhaps you'll do better,
either way it helps you determine how well your business is
getting on.

If you have never seen a business plan before you may be
concerned that is is too difficult a proposition for you to
manage on your own.

While there are services available where you can hire someone to
write a business plan for you, depending on your needs it may be
wise to familiarize yourself with a business plan's layout. This
will not only help you to provide the necessary information, but
may encourage you to try your own hand at it.

There's a free tool at www.bdc.ca which will assist you in
creating a business plan. Some of the topics you will be required
to explain are your Market, Customer, Competition, Marketing
Plan, Research & Development along with financial forecasts. You
may consider hiring someone to help you with your financial
sheets after completing the written part of the Business Plan.

Your Business Plan will become your guide and silent business
partner - indicating where you need to improve and helping you
stay one step ahead of your competition. Make it a priority to
have this crucial road map for your business

Foreclosure Home Deals

Did you know that you can save tens of thousands of dollars on the purchase of your home by investing in a foreclosure or preforeclosure property? When you are trying to purchase a home for the first time, and you have limited resources and limited funds, it is particularly important that you get the most "bang for your buck".

One way for a young family to get the most home for their money is to purchase a "distressed" property. With research and due diligence, you may just end up with a larger or nicer home than you thought you could afford, but without the extra price tag.

One way to accomplish this is by purchasing a property that is in foreclosure. You may want to look for an REO Foreclosure.

What's an REO Foreclosure? This stands for "Real Estate Owned", or in other words,
property that was foreclosed upon by the bank holding the mortgage, and now belongs to the bank. But, the bank is a bank and not a real estate investment firm. They are simply not in the business of residential real estate and have no interest in the home other than to recoup
their investment.

How does this benefit you? Well, more than likely the previous owners of the property have been making payments on it for some time, bringing down the amount the bank was owed and increasing the equity in the property. Since the bank is only concerned about recouping what they are owed and not really attempting to make a profit, then you can essentially reap the benefit of the equity in the property and purchase the home for what is owed which is likely well below current market value.

This approach while simple in theory does require research, time, fixup, and perhaps even cash upfront. This approach is not for everyone, but if your situation allows for it, you may be able to snag a great deal on a nicer home than you could otherwise afford.

The importance of planning

Are you planning to start a new business? Or are you considering expanding your current business and require a bank loan or investment from outsiders?

If you are going to look for an investment of capital it is quite likely that you will be required to have a business plan. If you are starting a business, despite the work involved, a business plan can prepare you for the obstacles ahead and help ensure your success.

A business plan is something that many small businesses fail to create, however, many business owners are adamant that having a written business plan is one of the keys to their present success. Creating a business plan forces you to contemplate possible obstacles to your business and prepares you to find solutions that will help you to overcome them.

To find investors or get a bank loan, they will want to see that you have the experience or resources to run the business. They will want to see your projected income as well as your suggested repayment plan already laid out. Taking the time to do this is not only important for them, but it gives you a measuring tool to verify if your business is growing properly. You can gage your success on how close to the plan your business has actually performed. Perhaps you'll do worse, or perhaps you'll do better, either way it helps you determine how well your business is getting on.

If you have never seen a business plan before you may be concerned that is is too difficult a proposition for you to manage on your own.

While there are services available where you can hire someone to write a business plan for you, depending on your needs it may be wise to familiarize yourself with a business plan's layout. This will not only help you to provide the necessary information, but may encourage you to try your own hand at it.

There's a free tool at www.bdc.ca which will assist you in creating a business plan. Some of the topics you will be required to explain are your Market, Customer, Competition, Marketing Plan, Research & Development along with financial forecasts. You may consider hiring someone to help you with your financial sheets after completing the written part of the Business Plan.

Your Business Plan will become your guide and silent business partner - indicating where you need to improve and helping you stay one step ahead of your competition. Make it a priority to have this crucial road map for your business.

Is It Necessary To Have a Business Plan?

Are you planning to start a new business? Or are you considering expanding your current business and require a bank loan or investment from outsiders?

If you are going to look for an investment of capital it is quite likely that you will be required to have a business plan. If you are starting a business, despite the work involved, a business plan can prepare you for the obstacles ahead and help ensure your success.

A business plan is something that many small businesses fail to create, however, many business owners are adamant that having a written business plan is one of the keys to their present success. Creating a business plan forces you to contemplate possible obstacles to your business and prepares you to find solutions that will help you to overcome them.

To find investors or get a bank loan, they will want to see that you have the experience or resources to run the business. They will want to see your projected income as well as your suggested repayment plan already laid out. Taking the time to do this is not only important for them, but it gives you a measuring tool to verify if your business is growing properly. You can gage your success on how close to the plan your business has actually performed. Perhaps you'll do worse, or perhaps you'll do better, either way it helps you determine how well your business is getting on.

If you have never seen a business plan before you may be concerned that is is too difficult a proposition for you to manage on your own.

While there are services available where you can hire someone to write a business plan for you, depending on your needs it may be wise to familiarize yourself with a business plan's layout. This will not only help you to provide the necessary information, but may encourage you to try your own hand at it.

There's a free tool at www.bdc.ca which will assist you in creating a business plan. Some of the topics you will be required to explain are your Market, Customer, Competition, Marketing Plan, Research & Development along with financial forecasts. You may consider hiring someone to help you with your financial sheets after completing the written part of the Business Plan.

Your Business Plan will become your guide and silent business partner - indicating where you need to improve and helping you stay one step ahead of your competition. Make it a priority to have this crucial road map for your business.

Sales Tax vs. Income Tax

The United States is currently suffering under an unimaginably complex tax system. The maintenance of this beauracratic behemoth costs the taxpayers billions of dollars every year. The direct costs borne by the taxpayers are small in comparison to the costs borne by corporations and individual taxpayers in attempting to comply with all of these Federal government regulations.

The people of the United States and their elected representatives are now looking at two options to replace the current tax system: The Flat Income Tax and the National Sales Tax.

The Flat Income Tax represents a modification of the current tax system, where the National Sales Tax represents a complete re-architecture of the entire tax system.


A National Sales Tax Would Improve the Trade Deficit
--------------

This is a bold claim, so I will explain it in simple terms using a small model of the global economic system. In our model, we will have only two companies and two consumers.

Our two companies are Alpha Company and Charlie Company. Alpha Company manufactures widgets in their plant in Plano, TX. Charlie Company manufactures similar widgets in their factory in Shanghai, China.

Our two consumers are John and Chon. John lives in Los Angeles, Califoria. Chon lives in Beijing, China.

For the purposes of our example, let us state that it costs Alpha Company $100 to manufacture a widget. To this $100, we must then add the burden of income taxes. Again, solely for the purposes of our model, let us state that this burden raises the cost of the Alpha Company Widget by $20.

Alpha Company must pass these additional costs on to the consumer. Therefore, if either John or Chon decide to purchase Alpha Company brand widgets, they must pay more for them.

In effect, the Income Tax makes Alpha Company widgets more expensive (and therefore less desirable) than Charlie Company widgets.

Now let's look at the effects of a National Sales Tax on international trade.

Once again, we will state that a widget costs Alpha Company $100 to produce. However, this time we will not burden Alpha Company with income tax.

In this model, there are no extra costs for Alpha Company to pass on to the consumers, John and Chon. When John decides to buy a widget, he is taxed the same National Sales Tax -- no matter which widget he buys. This allows Alpha Company to compete on an even level with Charlie Company.

Moreover, when Chon decides to buy a widget, he does not pay our National Sales Tax for the widget. This makes Alpha Company brand widgets price competitive in the China as well as in the United States.

Let me restate this succintly: The Income Tax destroys our national competitiveness and increases our trade deficit; The National Sales Tax restores our national competitiveness and enables us to compete on an even playing field with the rest of the world.


The Income Tax Discourages Working; The National Sales Tax Encourages Saving
--------------

Any good animal trainer knows that animanls do what you reward them for doing and avoid doing what they are punished for doing.

The Income Tax effectively punishes people for working. For every extra dollar you make, you are forced to pay more Income Tax.

If you work for $10/hr, the income tax takes approximately $3.50 of that. You are now working for $6.50/hr. Isn't that significantly less motivating than $10.00/hr?

By reducing our motivation to work, succeed, and produce, the Income Tax robs our national economy of much of it's vigor. It hinders our ability to compete with other world economies.

The National Sales Tax, on the other hand, punishes Americans when they spend money. That $2 beer now costs $2.50. The $100 Walkman is now a $125 Walkman.

This acts to discourage spending. Discouraging spending automatically encourages savings. Savings become investment. Investment becomes wealth.

What does American business require to build and grow? Investment capital.

Where does American business currently get that investment capital? From overseas.

Why does American business get its investment capital from overseas? Because Americans don't save and invest.

Who profits from American business? The investors.

Who ends up owning American businesses? Foreigners.

We must be careful here not to blame the foreigners who now own a large number of American businesses. They took the risks and invested money when we didn't, and the markets rewarded them for this. What we must do, however, is build a tax system which enables and encourages Americans to save and invest in America.

Building wealth for foreigners is a good thing; Building wealth for Americans is a better thing.


Objections to the National Sales Tax
--------------

Objection:

The National Sales Tax is regressive. It taxes poor people more heavily than rich people.

Resolution:

In many states which currently collect sales tax, basic items are exempted from sales tax. These items include food, clothing, and housing.

Exempting these basics of living from the National Sales Tax has the effect of moving the National Sales Tax from a regressive to a progressive tax.

Objection:

The National Sales Tax will be difficult and expensive to collect.

Resolution:

Forty-five states are now collecting state sales taxes. The Federal government will be able to outsource the collection of the National Sales Tax to the existing organizations within the states.

Organizations to collect the National Sales Tax will have to be built in only five states.

Objection:

Switching to a National Sales Tax would require a repealing of the 16th Amendment.

Resolution:

The 16th Amendment allows the Federal government to levy an income tax, but does not [i]require[/i] it to do so.

We could switch to a National Sales Tax and repeal the 16th Amendment at some point far in the future.


Summary
--------------

Our nation is at a critical crossroads where we must choose to stay with our current broken system of taxation, attempt to repair it, or replace it entirely with something new.

The principles of economics show us clearly that the National Sales Tax is the right path to take to ensure the economic prosperity of America for our children and for their children.

Now is the time to build a tax system which encourages American values, supports American business, and builds prosperity for our futures and our childrens futures.

Residential Income Property Financing: Part 2 of 3

Welcome to the second segment of a three-part series about income property. In this second segment we will be discussing financing options for residential income properties as well as the upside (and downside) of owning this type of property.

Financial Concerns

Financing options for residential income property vary widely from commercial or industrial properties. For one thing, most private lenders place size requirements on the apartment complexes they are willing to finance, usually five units or more. Smaller complexes just don�t have the revenue generation potential required to make your loan officer feel comfortable.

The good news is that residential income property loans usually carry a higher LTV ratio than other property types. If you recall from the first segment of this series, LTV (loan-to-value) ratio indicates the percentage of money your lender will lend you to the property�s market value. An 80% LTV is the maximum most lenders will provide for residential income property.

Loan terms usually range from 25 to 30 years with a maximum loan amount of up to $3 million. Current competitive interest rates can range from 4.70% up to 6.625% depending on several factors including your credit rating and the size of your down payment.

Most loans for residential income property are termed as �recourse loans�. This means that the lender has �recourse� to your personal assets in the event you default on the loan. Needless to say, you need to make sure you are ready to assume the financial responsibility of making your payments in a timely fashion.

Managerial Challenges

Besides financial responsibility, residential income property management brings with it other unique challenges. Likewise, it demands certain skills above and beyond investment savvy and experience. To successfully manage your residential income property, you�ll need a good combination of street smarts, interpersonal, and handyman skills.

More than any other income property type, residential property will bring you into close contact with those renting or leasing your property. Possibly the most important part is screening those you rent to. Background checks, calls to previous landlords, and searching interviews can save you a lot of headache and money down the road.

It�s likely that at some point in the tenancy something will break or malfunction. If you have the ability to replace windows or wiring, know how to fix an A/C or refrigerator, or have rudimentary plumbing skills, chances are you will save some money by performing these tasks yourself.

Sometimes dealing with tenants can be the hardest part of owning residential income property. How well can you deal with angry, demanding people? Do you stay cool, calm, and collected in tense interpersonal situations? If so, you�ll be prepared to deal with some of the issues likely to crop up during your management experience.

Conclusion

It�s important to keep your goals in sight when managing a residential income property. Sometimes it�s easy to get bogged down in the day-to-day duties of running the property that you lose sight of making a profit. Know your rights as a landlord; know your bottom line as an investor. As with any investment, having an accurate idea of your time horizon will, to a large extent, dictate the amount of effort and money you should put into your income property.

Is It Worth Becoming a Partner?

It�s a fact of life in the Big Four :you are there to become a partner. This expectation may not be explicit in Big Four culture, but the undercurrent is undeniable. If your every decision is not focused on becoming a �member of the firm�, your career is in perpetual jeopardy. The whole reason for your being is to attain that status.

The mystique of the partnership is evaporating, and it could change the character and composition of the Big Four fundamentally. Yes, Mr. Dylan, the times, they are a-changin�. Anecdotally, more and more senior managers talk quietly � never publicly � about what their next moves would be. Those illicit conversations occurred in hushed tones away from the office � often emerging from frank advice offered to more junior staff members.

But, where do you go?

Many senior managers are considering VP and C-level positions instead of shooting for the partnership. Citing lifestyle desires (i.e. getting off the road), earning potential, and less politically charged environments, even top-performing senior managers are exploring careers outside the Big Four.

Aside from these internal pressures, up-and-comers clearly have concerns about the resilience � and costs � of the partnership structure. Once upon a time, the partnership buy-in was considered a pristine investment opportunity. The past few years, though, have called this perception into question.

It all started with Enron.

Many of the consultants and accountants in our community are still in pain from the collapse of Andersen � especially the ex-Andersen folks who have sought refuge at the remaining Big Four. Professionals who worked at Andersen, especially former partners, are acutely aware of the risks inherent in buying into the partnership. New partners, with fewer than five years as members of Andersen, were brutalized financially. Their buy-in loans were collateralized with their partnership units. The collapse of Andersen led to a negative equity situation for them; partners owed hundreds of thousands of dollars and could not divest their units to repay the loans.

A similar fear rippled through KPMG, recently. Under investigation for selling abusive tax shelters, KPMG settled with the Justice Department. The settlement included a fine of $456 million. While KPMG avoided the fate of Andersen, the resulting fine equates to around $300 thousand for each of KPMG�s 1,600 partners.

The declining interest in firm membership is supported by potential changes in firm organization. Accenture and BearingPoint have forsaken the partnership model, and both now trade on public markets. Doubts as to the protections of the limited liability partnership model are causing the Big Four to consider incorporation � instead of partnership.

Once recognized as an elite club in the accounting and consulting industries, the major partnerships are losing their mystique. The firms themselves continue to provide the best services available on the market, but the firms themselves are undergoing a fundamental shift. Every associate used to hope to grow up to become a partner. Senior managers could taste it � and would think of nothing else.

The Big Four�s preferred structure is under attack from the outside. Once considered an almost risk-free investment, we have learned from Andersen and KPMG the contrary. This investment risk is magnified by the erosion of protections offered by the LLP structure. Greener pastures lure talent from the partnership while the legal system lays siege to this venerable institution.

You Are What You Wear

When you step into a room, you get one free moment. In that moment colleagues and clients are making assumptions of who and what you are all about. If your visual integrity does not reflect your capabilities, it may take many further meetings to undo that first impression.

Call it impression management, style or good grooming, the business professional knows the power of a positive image. Savvy business style requires more than an expensive suit! Details from your shirt to your shoes, and your hairstyle to your accessories can reveal an approachable, professional harmony or compromise your credibility in the blink of an eye.

In today�s highly competitive market, your image is an investment. Whether corporate or business casual, suitable clothing enhances your personal silhouette, colouring and reflects your current business environment. Business casual does not mean weekend wear. Good quality separates can stretch your wardrobe and still polish your professional look.

William Thoroulby was the Marlboro man; he became one of America�s first male image consultants. His favourite phrase was �you are what to wear.� Something to seriously consider�

ISO 9001 Registration � 8 Steps for Success

You�ve made the plans, built the quality system and conducted the audit. So how do you register your company as ISO 9001 conformant? And how can you be sure you�re getting the most value for your investment? Here�s how the process works.

Certifying Your Company for ISO 9001

After your company's ISO 9001 audit, you will want to register your company to show that you've met the requirements. And to do this effectively, you will need to follow eight essential steps.

1. Finding a Registrar

You�ll need to begin searching for an ISO registrar during the 2 to 3 months your company is still building its quality system. You can search the Registrar Accreditation Board (RAB) at http://www.rabnet.com to select the registrar right for you.

2. Selecting a Registrar

Select a registrar that has experience within the scope category of your specific industry, which you can also find on the RAB site. Keep in mind accreditation, scheduling issues, fees and comfort level when selecting the registrar right for you.

3. Creating an Application

A company and a registrar will agree on the application, contract. This defines the rights and obligations of both parties, and includes liability issues, confidentiality and access rights.

4. Conducting a Document Review

The registrar will require a copy of your quality manual and procedures to verify that all the requirements of the standard are addressed. Allow 2-4 weeks in advance for the registrar to fully review all of the necessary documents.

5. Determining Preassessment

Though optional, this 2-4 week initial review of the system identifies any significant omissions or weaknesses. It saves time and allows the registrar to assess any issues and resolve logistics before the actual assessment audit.

6. Issuing an Assessment

During the audit, or physical onsite inspection of procedures in action, the auditors will issue findings if they assess anything that doesn�t meet requirements, or nonconformities. The length of this step will depend on the scope of the audit and the size your organization.

7. Completing ISO Registration

After all of the findings are put into the audit report and nonconformities are addressed, your company has the option to register as ISO 9001 conformant. You will receive a certificate and can also be listed in a register, which the company can use to publicize its registration and use in advertising.

8. Checking with Surveillances

To ensure that the system is maintained and that changes don�t result in deficiencies in the system, registrars perform regular surveillances of the system. Over the three-year period of your certificate, auditors will perform one full and two partial checks of your system.

Considerations in Planning

The Document Review and Preassessment typically require 2-4 weeks each. However, the number of registrars and the number of days for each stage of the registration audit depends on the size and complexity of your organization. So set target dates accordingly to allow both you and the registrar time to fully prepare.

Quality Procedures Investment

Always keep in mind, registration should provide you with valuable feedback to improve your system. So make sure to seek the appropriate registrar, and take full advantage of the entire audit process. After all, it�s your company, it�s your registration, and so make sure you get a strong return on YOUR investment.

Online business is a real business like all other off-line ones, do it, seriously.

Yes, online business is a kind of business, not scam. How to be serious about it? Own your own domain name and website. Just image that you can gain a free website site from internet, yes, you can do that. But, you need an independent domain, not just sub-domain. You are the boss of your business, like, www.yourbusiness.com, instead of www.otherdomain.com/yourbusiness.com. You can see, which one is more formal and commercial?

Now days everybody surfs internet. For people, even many people, they treat online business as a redundant thing. They just want to earn some extra money from it. They don�t want to do the necessary investment for it. Getting a free website, post some ads, telling their friends that they will earn some money, blablabla� After excitement, they could not get what they expected, then they say that online business are full of shit, scam. We can say that online business is not good for them. They also can safe their time for other interesting things. Facts show that online business is a business, do it properly and consistently, you will get it. And your independent website site is your ID card in the home business world. Be serious to your business means you need to do this investment for that.

Domain name is your online name. Can you see how valuable it is for those successful domain names, which bring them huge online traffics, like, yahoo.com, google.com, Microsoft.com, � These names stand for credibility, reputation.

You can choose whatever name you want, but the basic rule is that, be catchy and easy, related to your business is also better. And the main task for you is to publish your website to increase its traffic as much as you can, using different ways, free ways, and/or paid ways.

Don�t be shocked that even some big business guys own more than ten different websites. Think about that, how huge the traffic for them? Now we just need to start from one website, do it. Don�t think too much.

Also that you can own a formal email address instead of free email ones, like, yourname@yourdomain.com. Sounds good, isn�t it?

Make an Informed Decision Buying a Forklift

An accurate and meaningful parallel can be drawn between forklift prices and automobile prices. The variations in forklift pricing depend on several factors, such as manufacturing brand, technology, and overall reliability. Top class forklifts are expensive but they also ensure a longer operating life and overall increased durability and efficiency. The variations in prices, just like with cars, also depend on geographical positioning, dealerships, local regulations and the state of the machine.

In order to compare prices you would have to see at least three different retailers. Let�s take the industry standard forklift � the 5,000 lb one. New electric forklifts in this category may be sold for an average of $20,000, with a maximum of $25,000. A few extra thousand dollars will be spent on a charger and batteries. The other options are internal combustion forklift models, which are also priced close to their electric peers. While prices for internal combustion types start at around $15,000, you can also end up paying double depending on model type and accessories that accompany it. Prices go up with the heavier and more powerful models. You will pay anywhere from $30,000 to $45,000 for a 10,000 lb combustion forklift and over $100,000 for the high end - over 35,000 lb forklifts.

If you don�t want to spend that much on a new forklift or you simply cannot afford one, you can go for a used model that will sell for about half the price of a new one. 5,000 pound used forklifts that cost $25,000 new can be bought used for $11,000 to $12,000. However, when determining your investment costs, also try to figure out another important element: your hourly operating costs. If the forklift is used daily for a few hours, you might notice a high hourly operating cost due to breakdowns and maintenance time. When calculating the operating costs, include the following elements: fuel cost, additional supplies like filters and oil, maintenance time, and downtime.

Since the initial investment in a forklift is so high, many investors prefer to lease the vehicle. With most dealers you will find some sort of financing option, either straight from the manufacturer or through local banks and financial institutions. You may also try a long-term rental � usually for a period over a year, in which you will have to pay a monthly payment. This last option has more benefits for short-term projects or for contractors, since the lower monthly fee and the included maintenance can produce some nice profit. You can also get different service plans to accompany your purchase. Full maintenance plans will take care of any problem you might encounter with the forklift, a very useful option if you are getting a used machine from a dealer.

Invest In Yourself, Invest In Your Future

Commonly held wisdom tells us that it is a very good idea to save 10% of what we earn.

Many popular authors of financial self help books explain in great detail that after 20 to 30 years this 10% savings can likely help you retire from your day job. In fact, you probably know of such people that live in your neighborhood that have paid themselves first in this manner and over the years amassed considerable wealth.

If you are able to sit down today and adjust your living expenses so that you can live on 90% of your income to start saving 10% you are fortunate indeed. Especially if you happen to live in an urban area where the cost of living is continually increasing. Additionally, if you, as many people do, already give regularly to a local church or charity 10% of your present income that will only leave you with 80% to budget.

Most people think such a savings strategy to be extremely difficult if not impossible to follow. However if you read more closely to the advice given by popular authors, they are trying to tell you that you should use some of the 10% you are saving to improve your skills so you can earn more. Their message is to continually improve your earning ability in order to increase the amount you can earn.

Nobody expects NEVER to get a raise or earn more money. They may not believe that this could happen any time soon at their current job but certainly they realize that their life�s ambitions are not limited by their current situation. Unfortunately when they sit down and attempt to map out a financial strategy to get ahead they usually forget a basic fundamental economic principle. Learning new skills always means the ability to earn higher wages.

Even in something as simple as weaving carpets there are lousy cheap polyester carpets and very expensive Persian wool rugs. Some created by lousy carpet weavers at minimum wage. Other�s created by expert carpet weavers that have studied their craft and honed their skills in modern factories.

Most people think earning more money means that they have to have a second and third and maybe even fourth job. How depressing! What they really need is an opportunity to earn more income and then have the income grow exponentially. In financial terms this type of income is usually called residual income.

When you go to an investment advisor they always like to explain that if put X dollars in an investment and reinvest the interest then it will begin to grow exponentially. If you practice this type of investment strategy it can lead to a very large sum after 20 years. Especially if over those years you contribute monthly a small amount to cause the principle to grow.

Network Marketing is a business opportunity that can lead to exponential income growth or residual income. You begin by starting a part time home based business usually called an independent distributorship that earns income by recommending the products to others and earning commission income on those referrals.

The key to exponential growth in Network Marketing that is important to understand is simply this: You always introduce the business opportunity to others when they buy the products because you are expecting to find some people who will also be interested in the business opportunity. Those people you train to do the same as you are doing. Recommend and introduce.

By sponsoring new distributors and teaching them to do the same a downline is created. Network Marketing companies like Tahitian Noni International pay 53% of retail cost of the products back to the distributors. This 53% is divided up amongst the distributors who had a part on recommending the products up to 8 levels deep in the downline. Like the interest investment, the goal is simply to continue recommending the products to others and training those whom you sponsor as new distributors to do the same. This activity ensures that you will experience exponential growth in your organization.

Over time this simple duplicatable activity will lead to a very large group of people who are doing the same work of recommending the products every day in your organization. Overtime this also can lead to very large commission cheques because of the exponential growth.

By investing in yourself a small portion of the 10% savings to learn the art of network marketing you will have a new skill. This new skill will allow you to over a few short years to establish a business owned by yourself that�s income is only limited by the number of people you introduce the business to as well as train them to do the same.

Since there are considerable tax advantages to owning a home based business you should also consult a tax consultant for information for your province or state. Usually the tax savings amount to over 10% of your income so if you�re careful you can create a business that breaks even in the first month.

Realism vs. Optimism in the Business Plan

The most important function of a business plan is to create interest among investors so that they write a check. In achieving this goal, business plan writers are often challenged by determining the proper level of optimism in their plan. That is, they must create a compelling story to investors while maintaining credibility.

Optimism shows investors that a company is confident about the market opportunity, its ability to execute on the opportunity, etc. Over-optimism, however, leads investors to believe that the management team does not fully understand the opportunity or the tough road ahead. As such, business plans must be sure to limit over-optimism and show investors they are realistic and credible.

Realism, the opposite of over-optimism, should be used in business plans to portray sobriety and credibility to investors. Realism should manifest itself in management team bios that tell the actual accomplishments of managers, rather than fluff. It should manifest itself in credible market forecasts and sober assumptions of the company�s growth.

While business plans must excite investors so they take action, if they are too optimistic, investors will discount their merit. Conversely, if they are too sober, investors may not feel they will get an adequate return on their investment. As such, business plans should present a compelling, optimistic picture, but continuously refer to hard facts and realistic assumptions to build credibility and genuine excitement

Sales 101: Learning about Price vs. Cost

For as long as there have been documented records, there have been merchants, or as we are called in modern vernacular, salespeople. People want things. People need things. Considering that there will always be a public demand for something, there will always be a need for salespeople! It has been said that "Nothing happens until someone sells something." This is absolutely true. The sales function drives every other aspect of a modern company. Sales must come first, for without sales, there is no need for marketing, accounting, manufacturing, human resources, etc�

Ask almost any average salesperson what his greatest problem or objection is and more than likely you will hear the word price. "My prices are higher than my competitors" or "Our prices are too high" are often the mantra or excuse for lackluster sales figures. Ask a superior salesperson however, and I suspect that you will find, in reality, she has learned that price is seldom the real issue. Let's consider the acronym P.R.I.C.E. for a moment: Perceived-Reality-Investment-Cost-Expectation.

Perceived: Sales are most often a process involving perception, or perceived value. Our job as professional salespeople is to sell the value of our goods and services. Once the customer sees that the value of the product or service offers more to him than the selling price asked, the sale is made and the issue of pricing actually never became an issue at all.

Reality: Let's face it, so often sales people use the price excuse for the reason why a sale was not made. Assuming that you are dealing with a qualified prospect, and you are wasting your time if you are not, the reality is that your prospect needs to learn exactly how your product or service fills his need, closes the void and meets his requirements in a timely manner. That is plain reality.

Investment: The customer must be shown that by purchasing from you, she is making a wise investment and not simply incurring an additional expense. Buyers are not interested in driving their costs higher by spending more money. They are interested in solving their problems. They desire to make cost-effective decisions based upon perception and education.

Cost: As a professional salesperson, interested in meeting and exceeding the expectations of your prospects and customers, you must always be aware that price is simply not equal to cost. Remember the old axiom� "Beware the cost of the lowest price." Cost of ownership, payback time and solving problems are the true issues a professional buyer is really looking for.

Expectation: Today's customer assumes quality. They assume service and delivery. Your buyer expects that the products and services that you propose are actually presented with her best interests in mind and that they will meet her needs. That is the starting point. Do not be fooled when a buyer asks you about pricing. If they can maximize their value and get it at a lower price, they will attempt to get it, but they will buy at your set price point if expected value is there.

To simplify things further, remember that the customer actually makes the purchase decision only once. The money allocated to acquire your product or service is typically spent one time for each purchasing decision. For each purchase, the company must then deal with the reality of that decision. The item purchased is then placed into service within the structure of the buyers' company. After this point, various employees and internal departments such as engineering or maintenance must deal with that particular purchase decision. There will often be ramifications from each purchasing decision within other departments in the company. The true cost of each purchasing decision will show itself over time. Cost issues continue to present themselves over the useful life of the product or service purchased, long after the purchase was actually made.

Cost and price are two very different concerns indeed. Do not get caught in the trap of thinking otherwise. Superior salespeople have learned that hard lesson at some point earlier in their careers. Do what all superior salespeople do; shorten your learning curve by acting on this new information. Move your career into high gear by accelerating your learning of these superior principles.