Posts Tagged ‘debt’

A Well Written Business Plan Gets Debt And Equity Funding

No business can effectively operate nor attract the funds needed to survive prosper and grow without a good business plan. A good business plan is management tool that shows where your business is going, and just how you plan to get there, and is a necessity for attracting lenders, investors, partners and key personnel. Business plan outlines vary but they all must cover certain key areas, such as:

 

* Executive Summary

* Business Description

* Marketing Plan

* Financial Plan

* Management Team

* Appendix

 

Moreover, there are many kinds of business plan software on the market that can help you write your business plan, but you must still input the data needed to write your business plan into the software. The output of the software can never be any better than the data you put into it and you must manually put that in yourself. Here are four steps to help you write a good business plan:

 

1. Put all of your business plan data and information into several good old fashioned file folders and label each folder so that you know what is in it. This data and information will include such materials as marketing methods you will use, market research, management team bio’s, financial statements, profit projects and other similar items.

 

2. Get a good business plan outline or use the outline in the software you will be using to help draft your plan. And write a 250 to 500 word summary for each section of your business plan using the materials that you have in your business plan data and information file folders.

 

3. Expand upon your brief summary descriptions for each section of your business plan to write your actual plan, or let the business plan software do this for you. Be sure to give extra attention to the marketing section of your business plan because this section gets the more attention than any other part of your business plan from lenders and investors, since this tells how your profits will be obtained.

 

4. Keep your business plan to between eight to 12 pages, because when it comes to business plans more it not better, and anything longer than that quite simply won’t get read, then put a list of other information you have available in your appendix to be requested if wanted. You want your business plan to be a clear concise document that is easy to read and understand, because a confused mind will usually say no to what is being proposed.

 

A good business plan will help you to effectively and profitably operate your business, and is a clear road map that shows where you business is going, how you plan to get there, the people you will need to get there, and the profits your business will produce when you get there. And it will help you to get the money you need from lenders and investors to get where you want to go with your business. So do not underestimate the power of a good well written business plan, and by all means prepare you one getting started today. 

A risk management plan is critical towards a company’s business development, as it is a part of the business plan that details the risks of the business. Detail financial risks and risks about a customer base with help from an experienced businessman in this free video on planning a business. Expert: John Niemira Bio: John Niemira is a business professional who has been in the business industry for many years. Filmmaker: Michael Burton

The recent European Union announcement to provide financial assistance for Greece has put pressure on the euro and possibly this will have a knock on effect on Multi National Enterprises (MNE) which export items or services to euro zone countries. This could impact upon the account payment process as they look into the effect of the euro falling against the pound. Where a small company has sent an account to just such a large company, for jobs done or items furnished and have observed the agreed payment date go by without payment having been made, they would call up the large company to get to know what is happening to their account. The answer they receive will possibly decide their next move, in that if the large company still delays payment then the small company may well feel fully justified in starting %INK1% proceedings.

When the small company comes to evaluate the different directions for Debt Collection they may see that the success rate for traditional Debt Collection solutions, such as legal practices or Debt Collection Agencies, is quite good. This is quite possibly due to the fact that they may well have teams of skilled members of staff to use on Debt Collection projects, but this sort of resource does not come cheap and the legal practices or Debt Collection Agencies have charges of between 10% to 20% or more of the account value. This sort of cost could easily absorb the profit from the account and may even leave the small company with a loss once their other bills related to the account are paid out. This may lead the small company to seek a DIY Debt Collection choice, such as Debt Collection Software. This is usually a one-off purchase that can be freely applied to other Debt Collection projects if they arise, whereas legal practices and Debt Collection Agencies will charge the same rates for every debt they accept.

Debt Collection Software packages can start from around £40 and so represent a good saving over legal practices and Debt Collection Agencies. The small company will have to provide the duties of the skilled teams which legal practices and Debt Collection Agencies can call on and this can be achieved by delegating their own members of staff to manage the Debt Collection Software. The Debt Collection Software should come with a user guide that can demonstrate how the Debt Collection activity works and specifically the role played by Debt Collection letters. The Debt Collection letters really form the centre of the Debt Collection activity and should be generated by members of staff with a good knowledge of English, since if any Debt Collection letters were sent out with spelling or grammatical errors present this could upset the Debt Collection activity.

So with a team of the right members of staff and help from the Debt Collection Software user guide, it is hoped that the small company can persuade the large MNE to pay their account and for a much cheaper price that that charged by legal practices or Debt Collection Agencies.

Unfortunately, in today’s financial climate, it is not unusual for anybody to find themselves struggling to keep their head above water. When your credit rating has dwindled to the point that you aren’t even sure if you’ll be approved for a payday loan, you know you’re in trouble. This is because bad credit no longer means you’ll be turned down for only the big things, like a car or house loan, now you can be turned down for an apartment rental or even a regular old checking account. And there is another side to bad credit as well that is often skirted around as a non-issue, yet it causes more and more depression every year; bad credit lowers your self-esteem. Some will even try bad credit lenders and see if it would help.

Yet more often than not, one of the biggest problems caused by poor credit has nothing to do with the money involved. Instead it is the overwhelming sense of fear and self doubt that accompanies one’s inability to maintain a healthy line of credit. When you cannot keep up with your bills it can bring about feelings of anxiety and self recrimination that make you feel as if you deserve nothing more than to suffer for it.

When you have so many difficulties just paying your bills, it can feel overwhelming and disheartening because it seems as if the “good” people of the world can handle their finances, and you cannot. It can make you feel as if you are not worthy of the credit you are asking for, and in turn not worthy of any other assistance either. It can make you feel as if you might as well give up and do whatever everybody else is doing to get by, leaving you an emotional wreck because you no longer feel like you are yourself.

This is where it is up to you to take charge of your life. Bad credit is just a situation; it does not define who you are or what you are capable of. You have the ability to make arrangements to get your credit back on track and stick to your decisions about how you will spend your money. More important than the money involved is how you feel about yourself, because how you feel about yourself often determines what actions you will take.

Hold your head up again, take responsibility for what is within your control. And always remember that you determine your own self-worth, and it has nothing to do with your wallet.

In conclusion, I advise that a good personal finance management is very important.

When a small firm has worked up a good commercial relationship with a large firm it may come as a surprise when the latest account for delivered[/spin] or goods delivered remains unsettled after the agreed payment date, when all previous bills have been cleared well in advance of the final date. If the small firm calls up the large firm to ascertain why the account hasn’t been cleared and they don’t get a satisfactory outcome then they may well feel that pursuing the large firm via Debt Collection is their best chance of getting the account cleared.

If the small firm has little or no experience of using Debt Collection services their searches may well bring up lots of usual Debt Collection services such as legal practices and Debt Collection Agencies which may prove attractive from claimed success rates. The small firm may have contacts that have used legal practices or Debt Collection Agencies in the past and report good results. However in the present financial climate the small firm may look at the fees charged by legal practices and Debt Collection Agencies of 10% to 20% or more of the account value and wonder if there is a cheaper way. They will probably find a DIY solution of Debt Collection Software, which will permit the small firm to take on the Debt Collection project in-house. They will need to identify their own resources to use the Debt Collection Software and make the Debt Collection activity work. Although the cost of Debt Collection Software may be attractive at around £40 for a decent Debt Collection Software package, the question is will they have the confidence to take on the large firm with only their own resources?

In reality, the people who started the small firm needed to have confidence in themselves and their idea and also in the personnel they subsequently employ, so Debt Collection Software would be surely just another challenge for them. Clearly they will need to have the right people, such as computer savvy and for those who are to generate Debt Collection letters, a good knowledge of English. It would be most strange to find a firm lacking in these human resources these days so the small firm should be equipped to tackle Debt Collection Software.

Since the people will be inexperienced in Debt Collection, the Debt Collection Software package should come with a good user guide or training package that will show how the Debt Collection activity works and the crucial role that Debt Collection letters play. Debt Collection letters are at the crux of the Debt Collection activity and the people ear marked to writing them must be careful not to introduce any spelling or grammatical issues into them or this could derail the Debt Collection activity and may put the small firm in a bad light. The user guide should show how to generate Debt Collection letters by providing tips and information on present legislation that the small firm can use and refer to. It would be very useful to have snippets that Debt Collection Agencies use so that the people can make the Debt Collection letters look professional and hopefully persuade the large firm to pay the account soon.

Several European large finance houses have reported good profits, such as HSBC and BNP Paribas, where HSBC was up to $11.1bn and BNP Paribas was up by 31%. This news lifted the FTSE by 2.65% to 5,393 and in France the Cas 40 was up by 2.99%, while the Dow Jones was up by 2%. Good news for shareholders and plc enterprises, so if the large organisation that had the late bill was a plc organisation, would they be ready to now pay it? If the small organisation made contact with the large organisation to get to know what was happening to their bill but didn’t get a reasonable outcome, then they might feel like they are being treated like a free credit organisation. They might well also be in need of the late bill clearance to sort out their own accounts, and so might decide that perhaps the best chance of being paid might be via Debt Collection.

Under normal circumstances the small organisation might simply go down the traditional Debt Collection road and get in touch with Debt Collection Agencies or solicitors who can do commercial Debt Collection, however the financial downturn might well have changed that choice. The financial downturn seems to have grown the number of Debt Collection Agencies and solicitors who are offering commercial Debt Collection, but while the good Debt Collection Agencies and solicitors might well use Fair Debt Collection Practice, this might not be the case with some of the newer Debt Collection Agencies and solicitors. It might be very difficult for the small organisation to differentiate between the good and the bad Debt Collection Agencies or solicitors, but to end up in the hands of a bad one that didn’t adhere to Fair Debt Collection Practice, could mean that any commercial relationship that they had cultured with the large organisation could be destroyed quickly.

A different Debt Collection strategy that the small organisation might try is that of Debt Collection software, whereby they can take on the Debt Collection project with their own resources and so be in control of communications with the large organisation and ensure that Fair Debt Collection Practice are followed. There is a vital cost difference between Debt Collection software and both Debt Collection Agencies and solicitors, in that a good Debt Collection software application can cost around £40, while Debt Collection Agencies and solicitors seem to charge from 10% to 20% or more of the bill value. This means that bills from £400 to £800 would be the minimum that should be worked on using Debt Collection software, but the higher the bill value the more the saving. naturally the small organisation are unlikely to have the expert members of staff to call on that Debt Collection Agencies and solicitors have, so they will need to do some training on the Debt Collection operation. This can be provided by the documentation that comes with the Debt Collection software, which should also describe what the Fair Debt Collection Practice themselves are. The small organisation will need to provide specific members of staff to both use the Debt Collection software and to generate the Debt Collection letters. They will all need to know about the Fair Debt Collection Practice, especially those nominated to generate the Debt Collection letters and for them the documentation should also describe about any recent legislation they can use and also any phrases that Debt Collection Agencies use would also be useful.

If the small organisation and their members of staff work hard on finding out about the Debt Collection operation, then by generating good quality Debt Collection letters, using the Debt Collection software properly and sticking to Fair Debt Collection Practice at all times, they might well encourage the large organisation to pay the late bill. They will have also done this at a lower price than they would have had to pay if they had used Debt Collection Agencies or solicitors instead of Debt Collection software.

When a small organisation has worked with a large organisation for some years and has successfully completed many pieces of work for them, it may come as a surprise to realise that their latest account is late when the large organisation has always paid on time before this. The first action by the small organisation would be to speak with the large organisation to understand why the account is late and when it will be settled. If they don’t get a satisfactory reply to this then they may well feel that they need to investigate Debt Collection solutions, especially if the small organisation is suffering due to the current financial situation.

Their choice of Debt Collection solution may be controlled by available funds or simply that they don’t know anything about Debt Collection and are not sure what is best. The traditional Debt Collection solutions of lawyers and Debt Collection Agencies may be able to promote themselves as having a good Debt Collection record, but to provide this service they need teams of expert employees and they will not come cheap. The prices charged by lawyers and Debt Collection Agencies that work in the commercial sector are in the region of 10% to 20% or more of the account value, which may be a significant amount to the small organisation, especially if they are in a competitive market and have to keep their prices tight. Also, the current financial situation has brought a growth in the number of lawyers and Debt Collection Agencies, but this may have introduced a bad element into the Debt Collection market place. The small organisation will need to be careful that any Debt Collection solution they go for does not ruin their professional relationship with the large organisation, since this may well have been nurtured carefully over time and the small organisation may rely on this professional relationship for future income. Taking on unprofessional Debt Collection Agencies or lawyers can destroy this professional relationship if unprofessional Debt Collection actions are used, but the trouble is that the small organisation may not be able to tell the ethical from the unethical lawyers and Debt Collection Agencies.

If the small organisation has confidence in their own talents they may decide to find out about Debt Collection Software which will allow the small organisation to take on the Debt Collection project themselves. Apart from being in control of communications with the large organisation and so being able to keep their professional relationship intact, there is also a cost benefit in that a decent Debt Collection application can be had for around £40. Since the Debt Collection Software is a one-off purchase, the small organisation can use it for any future Debt Collection projects that crop up, whereas, lawyers and Debt Collection Agencies will apply their costs for every Debt Collection project they run with.

Since the small organisation is likely to need help with the Debt Collection project, their investigation of Debt Collection Software applications should extend to the documentation set, since could be their main source of help. The documentation set should have a tutorial section that will enlighten the small organisation employees in the details of the Debt Collection process and especially the role played by Debt Collection letters. The small organisation will naturally have to designate their employees to both administer the Debt Collection Software and also compose the Debt Collection letters. For this latter task, the documentation set should explain what appropriate legislation is available and list websites where further information can be found. There should also be help on how to compose good quality Debt Collection letters including snippets as used by Debt Collection Agencies.

With this sort of preparation and attention to detail the small organisation is surely minimising any risks of failure from using Debt Collection Software over going to lawyers and Debt Collection Agencies.

A new report on the BBC web site shows that manufacturing in both China and Europe are reducing, as shown by the Purchasing Managers’ Index (PMI), which showed a fall from 53.9 in could to 52.1 in June for China. The PMI for Europe also showed a fall from May to June, as did corresponding index figures from the US. These PMI results caused a fall in European stock markets of between 1.8% and 3%. The inference is that the fiscal economy measures are affecting public demand and so this could well also put pressure on many large organisations in the consumer market. This in turn could well put pressure on their finances and could also influence their willingness to settle accounts as promptly as they have done in the past. It could not be the case that the large business is short of revenue, but rather that the medium term forecast is not promising and they need to look into ways of cutting costs. From the small business perspective, their invoice could represent a major part of their income and one that cannot be left to go unpaid for much longer, despite the slight downturn.

When the small business communicate with the large business to ascertain the start of their invoice settlement, they could well not get a positive answer, but could be asked to allow some latitude, which will come as rather a disappointment given the estimated value of the large business against the value of their invoice. It would be no surprise to discover that the small business turns to thoughts of Debt Collection and this where they need to be careful in their evaluation of a Debt Collection solution. The present economic downturn has brought an increase in the number of Debt Collection Agencies and legal practices, but like all troubled times, this can bring out the bad elements in society. The small business could not have used any Debt Collection Agencies or legal practices in the past and so could rely on the Internet as a source of information. The risk here is that while there are many dependable Debt Collection Agencies and legal practices with a web presence as well as an office, it is likely that the less dependable ones will have a web presence only. This could well be a problem to tell, but the risk for the small business is to be ensnared by unscrupulous Debt Collection Agencies, which could do any manner of unethical things, maybe they will set low fees but with hidden overheads and charges to grossly inflate their prices. They could never and disappear, or they could use any Debt Collection tactics they feel like on the large business and end up ruining the business relationship the small business has.

If the small business is prepared to do some work, their safest Debt Collection option could well be Debt Collection Software, which will allow them to take on the Debt Collection work in-house. They will need to find out about the various Debt Collection Software packages and try and find one that has a good tutorial section as they will need to find out about how the Debt Collection activity works in practice. They could look for help in writing Debt Collection letters since these are the focal point of the Debt Collection activity. The Debt Collection Software package ought to tell them about pertinent legislation they can use and it would be good to have snippets that Debt Collection Agencies use.

If the small business is prepared to take on Debt Collection Software and work at it, they ought to be able to persuade the large business to pay the invoice and more economically than Debt Collection Agencies or legal practices would charge, and safer for their business relationship as well. One further benefit of Debt Collection Software is that it can be used for any future Debt Collection works for no extra money, whereas Debt Collection Agencies and legal practices set their prices on a per debt basis.

When a small company has got off to a good start and had a successful run, it is likely that their Financial Institution will view them in a good light when it comes to financial assistance, but that is not guaranteed as some small enterprises have found. A report by the BBC shows that one small company had a good relationship with finance houses for a long time but once the current financial situation hit the finance houses changed and either refused to help or had raised the prices. Another company however, had found that their Financial Institution did appreciate their commercial success and was supportive.

It could well be unlikely that the finance houses would be supportive of a small company that looked for funding because of an overdue bill with a large company that is still on the go, since the Financial Institution could well interpret this as bad commercial practice. The small company must do something about it and their first step should be to make contact with the large company to ascertain why the bill has not been paid. If this results in an unacceptable answer then the small company could well feel fully justified in checking out Debt Collection as a way of recovering the bill payment. Where the small company is short of revenue they will need to consider their Debt Collection paths very carefully, since, depending on the bill value, the charges can vary widely. Accepted Debt Collection services such as those provided by lawyers and Debt Collection Agencies usually charge a percentage of the final bill value and this is in the range of 10% to 20% but could be higher and could not include expenses. A DIY route of using Debt Collection Software can cost around £40 for a decent package, but of course, the small company would have to carry out the Debt Collection work with their available resources as well as run their own organisation, so this could well have to be allowed for. Obviously the Debt Collection Agencies and lawyers fees are set to allow for their costs, such as a team of expert employees to work on the Debt Collection contract and locations with the attendant overheads.

Going for the Debt Collection Software option could well put the small company onto a learning curve for the Debt Collection procedure and it is here where their evaluation of Debt Collection Software systems is important. They should assess the user guides and any other helpful material or resources that come along with the Debt Collection Software systems as these could well be the key to making the Debt Collection procedure work. The Debt Collection Software should give the employees in the small company a good appreciation of how the Debt Collection procedure works and the relevance of creating good quality Debt Collection letters. The Debt Collection Software should provide information on appropriate legislation that can be used and also any sentences that Debt Collection Agencies use, all of which should enable the employees to compose good Debt Collection letters. The employees chosen for this should have a good grasp of English so that the Debt Collection letters will not have any spelling or grammatical problems in them as this could upset the Debt Collection procedure and also put the small company in a bad light with the large company.

It is hoped that the Financial Institution will see this proactive route to Debt Collection as a useful solution to the problem rather than spending money on lawyers or Debt Collection Agencies.

There is some uncertainty in the stock markets over the deadline for repayment of loans to financial institutions that were used last year at low interest rates. This uncertainty has caused a fall off in share prices and has also pushed the pound to a new high against the euro. The European share index has reduced by around 3% and the US has reduced by 2% or so. For any enterprise who relies on share value as surety for financial institutions finance, this could put them in a difficult position when it comes to clearing their accounts if they find that the financial institutions are unwilling to offer support just now. It also puts the companies who are owed money in a difficult position, since they could well need prompt payment of accounts to keep their income projection on line. If such a small enterprise has themselves been caught up in the financial institutions problems then they could well be rejected for emergency finance, even if they have a good credit rating. This could well cause them to examine Debt Collection choices, since they will have already communicated with the large enterprise and not received a positive response.

Their first thoughts could be around the usual Debt Collection services such as solicitors and Debt Collection Agencies, but these could have fees that look too high to the small enterprise. The solicitors and Debt Collection Agencies seem to charge from 10% to 20% or more of the bill value, plus expenses, but this can easily represent an important amount to the small enterprise. This could make them examine a DIY solution, that of Debt Collection Software, since the prices for Debt Collection Software packages can be far lower than solicitors or Debt Collection Agencies charge, where around £40 can by a decent Debt Collection Software application. The difference in price comes from the fact that solicitors and Debt Collection Agencies could well have teams of experienced employees to work on Debt Collection jobs, whereas the small enterprise will have to handle the Debt Collection job internally.

If the small enterprise is prepared to take up the challenge of using Debt Collection Software, then they will have toensure that they have the resources to carry out the Debt Collection project whilealso keeping the enterprise going. They will need employees to manage the Debt Collection Software application and also employees to write the Debt Collection letters, who should have a good knowledge of English, since these Debt Collection letters are the crux of the Debt Collection process. The manual that comes with the Debt Collection Software should have some sort of training function, since the employees in the small enterprise could well have little or no experience in Debt Collection and would look to the Debt Collection Software application for help. The assistance should extend to how to write good Debt Collection letters, with advice on such things as appropriate Acts of Parliament that could be made use of and also any useful wording that Debt Collection Agencies use so that effective but not threatening Debt Collection letters can be generated. In this way the small enterprise should be able to encourage the large enterprise to settle the bill at a cost far less than solicitors and Debt Collection Agencies would charge, and so they would not need to bother the financial institutions for finance.

When a small enterprise has been providing support to a large enterprise for many years and has carried out a range of successful projects and always been paid on time, having completed the latest project and sent in their bill, it may come as a shock to see the agreed payment date roll by but receive no payment. If their contact with the large enterprise ends up as nothing more than playing for time then this may make the small enterprise feel as if they are being treated as a free credit agency or something as insulting, rather than a valued business supporter. This attitude may well make the small enterprise look at Debt Collection right away, but this is when the pondering will start; do they go for a normal Debt Collection solution such as solicitors or Debt Collection Agencies, or do they trust their own business experience and take a DIY approach? The decision comes down to a trade off of cost against doing the work internally. The solicitors and Debt Collection Agencies do the work on behalf of the small enterprise and they are paid some 10% to 20% or more of the final bill value for this Debt Collection service. The DIY approach involves the purchase of Debt Collection Software, which should be noticeably cheaper that either solicitors or Debt Collection Agencies, but the small enterprise has to allocate their own resources of people and equipment in order to make the Debt Collection Software work.

The small enterprise will have developed a good professional relationship with the large enterprise and should value this and want to keep it intact, despite the Debt Collection project it is about to embark upon. The current financial climate has seen a rise in the numbers of solicitors and Debt Collection Agencies offering commercial Debt Collection services, but these new enterprises may not all be as ethical as others and may be focussed solely on recovering the payment and not too bothered over the methods they use. This way of working could easily ruin the hard won professional relationship at a stroke, but the small enterprise may not be able to tell which of the solicitors or Debt Collection Agencies are in this category and which are not.

The small enterprise owner clearly has business skill and acumen to stay in business and so they should be able to trust themselves and their employees to take on a new challenge of Debt Collection Software. As their experience of Debt Collection is no doubt limited their examination of Debt Collection Software packages should also run to the documentation to make sure that it comes with sufficient material to teach them about the Debt Collection process. The Debt Collection Software documentation should also contain information on composing Debt Collection letters because these are at the focal point of the Debt Collection process and the small enterprise needs to pay close attention to the people allocated to writing them. The employees chosen should have a good knowledge of English so that there will be no spelling or grammatical issues in the Debt Collection letters and the documentation should also help by supplying information on the current Acts of Parliament that can be used and also any useful snippets that Debt Collection Agencies use in their Debt Collection letters.