When the Student Loan Debt Bubble Pops, Will Online Learning Replace Most Universities?

Those who know a little about the student loan bubble realize that the financial crisis is coming to a head at a College or University near you. Currently, 50% of the student loans haven’t had a single payment made, are over 7-years without a payment, or over 90-days in the rears (technical default). How did things get so far out-of-whack you ask? Well, it is a combination of academic socialist thinking, Democrat wishful thinking, and clueless students and the parents who may have co-signed for them. Whatever the case is in any individual defaulted student loan – all together the problem is massive.

When the bubble pops, and it will, what will become of these Universities and Colleges? Can they survive on 1/2 their current students? No, nor will they be able to pay the legacy costs of former professors or pay their current professors’ salaries, benefits, healthcare or pension contributions. Think I am kidding? Why not do a little research on this yourself?

In an Op-Ed by Robert Larivere, the President of University of Oregon (at the time), in the Wall Street Journal on November 23, 2010 titled; “Saving Public Universities, Starting With My Own” he suggested “The solution is an endowment funded by public and private contributions. Here’s how to do it.” He then lists three key points having to do with vision, focus, planning, budgeting, and increased taxpayer money from the state. Basically, he identified their current course is unsustainable back in 2010, and the temporary reprieve thanks to easy-to-get student loans, which only bloated the budgets and exacerbated the end game – bubble burst.

Maybe the real answer is to let the Universities fail on their own accord, then up-end higher education allowing the disruption of new technology. There is an interesting White Paper put out by Maplesoft – Mathematics, Modeling and Simulation Corp. titled; “The Evolution and Revolution of Online Education,” which stated;

“The Online Learning Consortium noted in 2014, more than 5 million students in the US were taking at least 1 online course,” and any professor who hosts MOOCs (Massive Open Online Courses) free or otherwise will tell you that for every US online student, they have 10-20 foreign students watching and/or participating in the course. Why you ask? No, it isn’t challenges with Student VISAs rather because foreign students often pay more than 3-times the tuition of in-state students at our Universities. Also, many can’t afford to travel to the US or afford much of any tuition costs.

The White Paper new advances in software allow professors to use tools such as:

– Adaptive Learning Environments

– Recorded or Real Time Video Lectures

– Online Interactive Textbooks – eBook Style

– Personalized Learning Paths and Curriculums

– Instant Feedback and Questions (in real time)

– Testing and Feedback – Quiz, Tests, Final Exams

– Actual Data Measuring Student Comprehension

In the future we can expect Holographic Imaging through AR (augmented reality) or VR (virtual reality) headsets or projection right in one’s living room, begging the question, who needs to pay expensive tuition for an ROI on expensive buildings by world renowned architects and designers?

Why worry about 100+ student classrooms, why not have 40-50,000 students and save the money on the building, divide that by a tenured professor’s salary or 150K or maybe a few and a bunch of grad student helpers. Your online course, same information for under $20.00 per course, not $1300 per hour-credit (2015-2016 Harvard cost – a 3-4 unit course would be $3900 to $5,200).

Folks it is obvious to me that our students are being ripped off so leftist professors can brainwash our kids, collect a huge salary, and screw off all day at the taxpayer’s expense and at the cost of economically enslaved degree holders. Something needs to change, and if they cannot or will not change from within, let the free-market change them from the outside – competition is needed in academia – it’s long overdue. Sorry, I am not accepting excuses or debating points from Professor’s or Teacher’s Unions anymore – heard enough of that nonsense for one lifetime.

Source by Lance Winslow

Current Trends in Business Communication

Anyone who has owned or worked for a business knows that the continual advancement of technology goes hand in hand with the advancement of business communication. In the last ten years alone, the tremendous technological advancements that have taken place in communication have changed they way we do business so drastically that we view the communication trends of pre-2000 as ‘vintage’. So in a conversation about current trends, be aware that in a few days they will be old trends.

Cloud computing is the latest trend to hit business communication. The most simple way to describe cloud computing is by comparing it to an electricity grid. A ‘cloud’ of shared servers provides resources such as software and data to a host of other computers – all on demand. In reality cloud computing is the natural evolution of the web-based world of communication. It takes the management of the technological infrastructure out of the hands of the IT professionals, who can now focus on their areas of expertise such as development. The use of cloud computing from a business communication standpoint brings in the discussion of finance. Small to medium size businesses no longer have need to purchase, set up and maintain their own server. Capital expenditure budgets are reduced, possibly entailing a conversion of those dollars to the operations expenditure side of the ledger. Another huge benefit to cloud computing in business is how it lowers the barriers of entry into the market. New businesses can simply supply themselves with the appropriate equipment to manufacture their product, a computer and an internet connection, and be ready to communicate to their customers.

The book reader is one of the latest trends to appear on the business communication horizon, but it is not clear if purveyors of commerce have fully appreciated its potential. The book reader has the ability to scan printed material, recognize the characters and using text-to-speech software, play it on the user’s computer or mobile audio player. In other words, you could listen to this article on your iPod. Most business people receive their email on their phone and check, now large volume documents, contracts, training manuals and other printed matter could be downloaded to any device. The affect on business communication is potentially quite significant, but the software is not widely tested or used as yet.

Social media networking has officially crossed over from only being used socially to an important and viable method of customer relationship management (CRM). Using tools like Facebook, blogs, public forums and wiki sites, business can better know how to attract and keep their customers. CRM begins with acquiring new customers through contact management, sales and customer satisfaction. Enhancing CRM occurs through excellent business communication and the use of customer service tools such as product experts and ease of purchasing. Retaining customers occurs through loyalty and reward. CRM software or databases can notify the business owner of long term clients and create the ability to recognize them through promotional measures.

Streamlining every phase of business communication will always be a trend in business. Making it easier for your client to send and receive materials or communication from you is increasingly important. Many companies are choosing to create interactive websites whereby the client can attain a report, invoice or product information whenever they feel the need. This creates a whole new level of service quality, as well as opening up the field of business communication. No longer does the client have to wait for 9 am Monday morning.

PowerPoint presentations have been around for over a decade, but they are still a valuable audiovisual tool in business communication. Dynamic presentations aimed at teaching the client about the product or service are full of impact and have a much clearer result than a one-dimensional oral presentation. Even telephones are being used in a more purposeful way in business communication, and not always for talking. Email, text messaging and internet are readily available and highly useful tools for any business person. Plus book readers (as previously mentioned) will soon allow business related documents to be read on a cell phone.

Technology will continue to advance and new communication devices will emerge. The trick to successful business communication is in keeping up with trends and learning how they can make your business better.

Source by Chris Haycox

Owner Operator Insurance – Non-Trucking, Bobtail & Unladen Liability Definitions and Impact

As in any business model, Motor Carriers (MC) utilizing Owner Operators (OO) enjoy certain benefits while also assuming additional risks. One such risk is the potential “uninsured” exposure of the OO while not in a “business use” capacity for the Motor Carrier. The MC’s Trucking or Commercial Auto Liability (AL) insurance policy provides coverage for the motor carriers’ owned units as well as any hired tractors and trailer during their time of hire. Coverage ceases for an Owner Operator once they are no longer in a “business use” capacity for the Motor Carrier. The concern is the OO continues to utilize their vehicle while displaying the MC placard and may not have other insurance available. Many times, the “deep” pocket of the MC is called upon to make the injured 3rd party whole.

Three products have been developed to address the coverage gap for the Owner Operator.

Non-trucking Liability:

Cost: Low

Protection to Motor Carriers Auto Liability: Low

Market Availability: High

Non-Trucking Liability provides protection for “personal use” by utilizing a Trucking or Commercial Auto Liability policy form and attaching a “business use” exclusion. The difficulty arises in that the definition of “business use” is not typically defined in the policy rather it is derived directly from various state and federal court decisions interpreting this phrase.

Unfortunately, “business use” has been interpreted very broadly and extends beyond “dispatch”. Following are some typical scenarios that would not be covered by the Non-trucking policy due to the broad interpretation of the “business use” exclusion:

  • OO drops load and his heading home to include a trip deviation to the grocery store (courts determine OO is owed a trip home)
  • OO takes vehicle to garage on weekend for maintenance (courts determine OO is maintaining unit in accordance with MC lease requirements)
  • OO is out of town, between loads. He goes to movie theatre. (courts determine OO is out of town at direction of MC)

Example of Coverage: OO utilizes their truck on personal time to run to grocery store and hits another vehicle.

Bobtail Liability:

Cost: Medium

Protection to Motor Carriers Auto Liability: Medium

Market Availability: Low

Many in the transportation industry use the same terminology for Bobtail Liability and Non Trucking Liability, when actually they are quite different. Bobtail defines coverage as “any time the trailer is unattached” whether or not the OO has been dispatched by the motor carrier.

Example of Coverage:

  • OO drops load and bobtails to pick up next load.
  • OO drops load at end of day and bobtails homes.
  • Be aware the Bobtail Policy will not respond anytime a trailer is attached, even if truly in a personal situation, e.g.:
  • OO brings homes an empty trailer and runs to the store on the weekend.
  • OO uses his tractor to a move a mobile home on weekend.
  • OO assists a friend in moving by pulling trailer with household goods

Unladen Liability:

Cost: High

Protection to Motor Carriers Auto Liability: High

Market Availability: Very Low (Per Class Basis)

Unladen Liability provides the least ambiguity in coverage and the broadest level of protection for the MC and OO. This policy provides coverage while bobtailing (no trailer attached) as well as while deadheading (trailer does not contain or carry any cargo – no bill of lading), regardless of dispatch. The difficulty with this coverage line is the low availability (typically not available in a master settlement deduct program; rather the OO’s need to obtain on a direct basis).

There are pros and cons to each of the coverage models which vary depending on the risk tolerance and the operations of the Motor Carrier and Owner Operator. Deciding on the right program can be critical to managing your risk. Enlist the help of a qualified insurance broker to review your current insurance programs and operations and to provide suggestions and options that best fit your needs.

Source by Trent Tillman

Preparation of Profit and Loss Account

Explanation of Certain items of Profit and Loss Account

1. Salaries

Salaries are paid for the services of employees and are debited to profit and loss ac- count being indirect expense. If any salary has been paid to proprietor or partners, it should be shown separately because it requires special treatment at the time of income tax assessment.

2. Salaries and Wages

When wages account is included with salaries it treated is as indirect expense and is taken into profit and loss account.

3. Rent

Rent of the office shop showroom or godown is an indirect expense and so is debited to profit & loss account. However, rent of factory is debited to trading account. When a part of the building has been sublet the rent received should be shown on the credit side of profit and loss account as a separate item.

4. Rates and Taxes

These are levied by the local authorities to meet public expenditure. It being an indirect expenditure is shown on the debit side of profit and loss account.

5. Interest

Interest on loan, overdraft or overdue debts is payable by the firm. It is an indirect expense; so debited to profit and loss account. Interest on loan advanced by the firm on depositor investments is an income of the firm and so is credited to the profit and loss account.

If business has paid any interest on capital to its proprietor or partners it should also be debited in the profit and loss account but separately because this item needs special treatment at the time of income-tax assessment.

6. Commission

In business sometimes agents are appointed to effect sales, who are paid commission as their remuneration. So this being a selling expenses is shown on the debit side of profit and loss account. Sometimes commission is also paid on purchases of goods, such ‘as expense should be debited in the trading account. Sometimes the firm can also act as an agent to the other business houses and in such cases it receives commission from them. Commission so received is shown on the credit side of profit and loss account.

7. Trade Expenses

They are also termed as ‘sundry expenses’. Trade expenses represent expenses of such a nature for which it is not worthwhile to open separate accounts. Trade expenses are not taken to trading account.

8. Repairs

Repairs to the plant, machinery, building are indirect expenses are treated expense and are debited to profit and loss account..

9. Traveling Expenses

Unless mentioned otherwise, traveling expenses are treated as indirect expenses and are debited to profit and loss account.

10. Horse & stable Expenses

Expenses incurred for the fodder of horses and wages paid for looking after stable are treated as indirect expenses and debited to profit and loss account.

11. Apprentice Premium

This is the amount charged from persons to whom training is imparted by the business. It is an income and is credited to profit and loss account. In case apprentice premium is charged in advance for two or three years, then the amount is distributed over number of years and each year’s profit and loss account is credited with its share of income.

12. Bad debts

It is the amount which could not be recovered by the trader on account of credit sales. It is a business loss, so is debited in the profit and loss account.

13. Life Insurance Premium

If the premium is paid on the life policy of the proprietor of the business; it is treated as his drawings and is shown by way of deduction from the capital account. It should not be taken to profit and loss account.

14. Insurance Premium

If insurance premium account appears in the trial balance, it stands for the insurance of the business. This is taken to profit and loss account. Insurance premium on goods purchased, factory building, factory machines are treated as direct expense and are taken to trading account.

15. Income Tax

In the case of merchant income-tax paid is treated as a personal expense and is shown by way of deduction from capital account. Income-tax in case of companies is treated differently.

16. Discount allowed and Received

Discount is a reward for prompt payment. It is belief to show discount received and discount allowed separately on the credit and debit side of profit and loss account respectively instead of showing the net balance of this account.

17. Depreciation

Depreciation is a loss incurred on account of use of fixed assets in the business. Generally, it is charged from profit and loss account at a fixed percentage. The students should exercise great care as regards the rate of depreciation. If rate is without words ‘per annum’, then the rate will be taken irrespective of the period of accounts. This is very important when the period of accounts is less than one year. On the other hand, if the rate of depreciation is ‘per annum’ the depreciation should be calculated on the assets with due consideration to the period for which the asset has been used in business during the year. In case of additions to assets during the year, it is advisable to ignore depreciation on additions if the date of additions is not given. Same rule shall hold good for the sale of assets during the year.

18. Stock at the end appearing in the trial balance.

It is important to emphasize the rule that balance appearing in the trial balance is taken to one and only one place. It may either be trading account or profit and loss account or balance sheet. Since stock at the end is an asset, it will betaken to balance sheet. On the other hand, so long as there is stock in trade, account for that must be kept open and thus be taken to the assets side of balance sheet.

Source by Anil Kumar Gupta

Property Management Advice – 7 Ways to Organize You Must Know to Rent Your Places Faster

I can not tell you how many times in the beginning of my property management career a prospective tenant called and caught me unprepared. I quickly learned I saved 5 to 10 hours a week and rented more houses by being well prepared. Here are my best tips.

1) Application Forms

A property manager should carry at least 50 blank rental applications with him at all times. Quite often, you will find yourself listing a new rental house and have no applications to place in the kitchen. You want to have applications in the house so you are not always running to your car during a showing.

The property management company should also have the rental application saved on the computer in a format that can be emailed to your clients quickly. You do not want to limit yourself to just faxing or having them pick up the form from you. This is very quick and painless.

2) At least 10 Copies of Blank Leases

Quite often, you will approve a tenant and need to meet with them to sign the lease. On your way out of the office at the end of the day, you completely forget to print out and bring the copies of the lease. Even the most organized person gets side tracked. Having the blank lease in your car ensures you never show up empty handed.

3) Key Tags

You should carry a small box of key tags so you can label keys you receive from new listings/property owners. In the past, I would constantly forget which keys belong to which properties and have to throw them out. This means the rental could not be rented until I could get a maintenance guy out there to change the locks. With just a little extra discipline and tagging the key as soon as you receive it, you save yourself a bunch of aggravation.

4) Digital Camera

You should keep your digital camera in the car as much as possible to ensure you are ready for new listings. Half the time, new property owners have cleaned their property and it is ready to go. By having the camera ready you can simply snap all the pictures you need to advertise the rental on MLS or Craigslist.

5) Property Management Agreements

Just like the lease, you should keep 10 copies of your management agreement in your car. This will make preparing for a listing appointment much easier and less stressful. If you bring your camera, business cards, and the management agreement, you have everything you need to sign up the new owner. You also want to have the agreement in email format to quickly send to the owners over the Internet.

6) Pens and Business Cards

It is embarrassing to not have either one on a listing or leasing appointment. Professionalism is found in the details.

7) Organizer to Carry Everything

You can buy an organizer at Office Depot or Staples that can store all the items listed above. Some people prefer a briefcase but I personally use a black plastic box with hanging folders. Use whatever suits you but just have it all in one place in your car

Note: A prepared property manager will create an automatic task in Outlook or a Day Planner to refill all the items once a month. Getting organized is useless for your property management company, if you do not have a follow-up system to ensure you stay organized.

Source by David Lowrey

Did Your Offshore Merchant Account Offer Advanced Flexibility Than Onshore?

The revolution of foreign merchant accounts taking business at new dimension to combat the heavy burden of tax regulation and lending money. Yes, compared to onshore merchant account offshore gives enormous benefits to business with their unique requirements. The bank account does not leverage limitations and restriction like the standard onshore bank account.

Proven, your e-commerce business is incomplete without having a merchant account, as you can’t process card transaction how will you able to complete the payment process without a merchant account. Still many of merchants are unaware of the benefits of having an offshore merchant account.

Having features such as Multi-currency processing with reduced tax regulations and much more can give you a glory of an international trading with multi-currency Processing. The bank account provides revolutionized services with 27*7 technical support.

Proven the most appropriate and advanced options for businesses who process high volumes sales and foreign currencies transactions at least $50,000 per month. Apart from these the bank account provide credit and debit processing for your business with a secure gateway and data encryption system, fraud prevention tool, and credit charge back avoidance management systems. The accounts are tax-free and allow companies to sell the products at competitive rates from competitors.

The companies who process high-risk business and have a risk of massive chargeback activities offshore merchant account service have tailored options to combat the burden of chargebacks. Also, high-risk companies who engaged in gambling, adult entertainment, tobacco, Bankruptcy Attorneys, Fantasy Sports Websites and Software Downloads companies offshore merchant account are best options to suits their need.

Offshore Merchant accounts offer many benefits to a merchant who has a history of credit card chargebacks, high sales, and highly regulated industries.The benefits include for merchants are, low tax rates, privacy, and security, multi-currency processing, low restriction on high volumes of sales, unlimited transactions, fraud and chargeback management tools.

If you are thinking of price and set up cost yes, it is high and little expensive than an onshore merchant account. Comes with a high price and costly setup, however, transaction rate is also higher than onshore. The account is for every business entity the process is also simple and easy, but the only concerning thing is a high price. It is obvious that you require more you have to pay more.

There are many offshore merchant account providers all you will find on the internet with unique and advanced features for your business. They had gained an expert degree for getting approvals of accounts. They are aware of all costs and transaction fees related to opening an offshore account. All you need is to own a foreign company and have a bank account in the name of that company. Opening such account is not a complicated process. You can also apply online for such accounts, but first, decide a reliable service provider and the particular offshore bank where you want to open an account. Check the background of that particular bank where you wish to invest your hard earnings. Services such as privacy, security, and tax benefits should also be in your concern.

Source by Deborah Ravi Nagella

The Dutch Attempt Colonization In The New World

Engaging in a voyage for the Dutch East India Company, in 1609, Henry Hudson was seeking a Northwest Passage to the Indies and the spices and wealth of Asia. Hudson’s attempt was fruitless, but by it, learned that the mouth of Hudson River offered attractive possibilities for settlement, due to the fertility of the land and the possibilities of a profitable fur trade with the Iroquois Indians.

The Dutch East India Company quickly lost interest in this region, after the attempt to find a passage to the Far East had failed. However, other Dutch businessmen quickly sent voyages to explore, what is now New York, to seek out these new business opportunities, which ultimately led to permanent settlement. An important figure was Adrian Block, who sailed to Manhattan in the year 1613 and discovered; the Housatonic and Connecticut Rivers, Rhode Island, and Block Island. In 1614, other Dutch ship owners secured trading posts in the area, leading to the permanent settlement of Albany.

All of the early trading posts were established through the direct efforts of business firms, and not through the initiative of governments.

The Dtuch West India Company

However, in 1621, the Dutch Government chartered the Dutch West India Company to trade and colonize that area. The government granted the company the authority to appoint a governor, and to draw up rules of government, of which the colonists were divided into two classes, free colonists, who received transportation and maintenance for the first two years, who could own homesteads, and the bound farmers, who were required to work on the company farms or the farms of company officials. The first settlements were near, what is today, the New York City area. The first official settlement on Manhattan Island was secured by Peter Minuit. He arrived in 1626 and proceeded to purchase Manhattan from the native Indian chiefs for trinkets worth twenty-four 1933, US dollars.

Whereas the Dutch secured the first colony along the middle Atlantic coast, they failed to establish it as such, a Dutch colony, mainly for three conspicuous reasons; their land policy, their inept leadership, and their reluctance to grant the colonists the kind of self-government, which the English settlers were to enjoy elsewhere along the North Atlantic coast.

Although the Dutch were shrewd businessmen, they failed to capitalize on the greatest of all impulses toward the colonization of America, the desire of the underprivileged people of Europe to secure a piece of land they could call their own. The Dutch firms granted land to settlers under perpetual leases. Not enough settlers bought into their concept, when other colonies were giving plots of land to homestead, the concept on which New England was founded, thus the Dutch have no permanent settlement they can call their own.

The Dutch West India Company, which was overseeing the attempted Dutch colonization, had leadership that put self-interest ahead of public good. According to Washington Irving, they were a quarrelsome, arrogant lot, whom were too friendly with the wrong people, Peter Minuit included. One failed leadership replacement after another of the Dutch West India Company, plus having no good relationships with the Indians of the area, led to their failure to colonize. Finally, Peter Stuyvesant, the tenacious and colorful one-legged Dutch hero, was the right leader, but too late to turn the attempt of Dutch colonization around.

A third basic reason for the breakdown of the Dutch to colonize was the failure of the authorities of the Dutch West India Company to recognize the positive values of granting self-government, and their inveterate hostility to anything that smacked of democracy. The failure to confer broad legislative powers upon the representatives of the people certainly contributed to the gradual crumbling of the colony’s morale.

English Involvement In Dutch Affairs

Meanwhile the English had come to regard that the Dutch were interfering with their expansion and enforcement of trade laws, had outbreaks with the Dutch over the control of New York, starting in 1664. Except for a brief period, the English maintained control of New York, until the evacuation of the British troops in 1783.

But Father Knickerbocker’s cultural grip upon the colony persisted long after Dutch political rule had ended. As much as they could, the Dutchmen in the Hudson Valley had duplicated the life of Holland, building their towns on the models of Amsterdam, establishing Dutch law, the Dutch Reform Church, and the Dutch language, which continued to be spoken for generations after the area became under English rule.

Although the fire of 1776 in lower Manhattan destroyed the Dutch legacy, it could not destroy the Dutch spirit. Even though the Dutch did not make their own, the part of New England that today we call, New York, the Dutch spirit lives on. It is the American Spirit, and it has made this nation great. Hats off to the Dutch!

Source by Alfred Grenfell Fishburne, Jr

Apartments That Approve With Bad Credit Or Broken Lease in El Paso Texas

El Paso is a large city cultural hub, which due to its close proximity to the border with Mexico, has a very vibrant Latino feel. Center of the giant El Paso Gas company, the city has grown in leaps and bounds in recent times owing due to commercial activity and off course immigration. Immigrants to this city constitute individuals and families looking for work to college students coming to enroll in the different community colleges. This means that area apartments become a point of focus for residents and those coming into town. The city's apartments do require good credit and rental history in order to secure an approval. Unfortunately, if you are looking for rental housing or apartments and your credit is below 700, there may be a chance of getting denied. The apartments also scrutinize for broken leases and will also serve an immediate denial if one is unearthed. But are there area apartments in El Paso that will allow tenants who have bad credit or a broken lease? Here are a few locations you can begin to look:

  • Mesquite Hills
  • Mountain View
  • North Hills
  • Central El Paso

There is some difficulty sometimes when it comes to locating these types of apartments. One major reason is that they are reluctant to advertise fearing they will attract the wrong crowd. If you have tarnished credit and or a rental history that shows you walked out on a lease agreement, there is a possibility that finding an apartment may end up in frustration. Most area apartments are concerned with quality and would want their reputation to remain intact. They therefore do not have a blanket policy of approving every single person whose credit or history is short. They instead prefer to deal with such tenants on a case-by-case basis.

In order to unearth these apartments, you have to network. Sometimes this involves informing colleagues, friends and families exactly what you are going through to see whether there is something they can do. They may know a leasing manager somewhere who may be more than willing to work with you if you have been referred by their friend.

Sometimes it may involve utilizing the Internet. This can save you time and money because you are able to search apartments in the El Paso area without leaving the comfort of your home. Finally, consider checking apartment listings or using an apartment locator.

Source by Jimmy Jamm

Business Valuation Multiples – How to Choose the Right Multiple For Your Business

Using a “Multiple of Earnings” is the most popular way to value small businesses that are for sale.

But that raises a difficult question: By what number do you multiply your earnings?

Much of what has been written about valuation multiples states that most businesses are sold with a multiple that ranges from 1-5.

But in truth, smaller businesses that sell for 4 or 5 time their earnings are rare – at least when it comes to owner-managed businesses.

In smaller businesses with an owner’s benefit of $50,000 to about $250,000, the owner will usually also manage the business on a day to day basis. The buyer is in truth “buying a job”. Their return on investment is much lower because they are investing not just there money but there time.

In larger businesses, where there is enough cash flow to hire a full time, professional manager the owner can make a return on his investment without a full time commitment – so that business will be valued at a much higher level. That’s not to say you can’t sell your business for a multiple of 4 or 5, but in my experience the vast majority of smaller businesses sell for a figure much closer to 1 to 3.

So I suggest you start with a multiple of 2.0 and use the list of factors below to adjust the multiple up and down based on your specific situation and you company’s performance.

This is just a partial list to get you started, there are bound to be unique factors that affect your business that are not listed here.

Positive Factors That Can Increase the Multiple

*Sales and profits have risen consistently each year for at least 3 years.

*A significant amount of sales come from repeat customers. Even better is revenue that comes from automatically recurring charges. Web hosting, alarm monitoring and self storage are few examples of business that may have reliable repeat revenue each month.

*Proprietary products, patents and/or trademarks.

*Exclusive rights to a territory.

*Less warranty exposure than is typical in your industry.

*Management And /or employees will stay on after the sale. The more experienced or uniquely talented these people are, the better.

*The business is a franchise of a well established – And well known – company. For many buyers, the support and training they get from the franchisor is a major plus – one they are willing to pay for.

*Your industry is growing and the future appears bright.

*Important ratios such as profit margin And cost of sales are above average for you industry.

*You are offering above average financing terms

For these last two items you should check with any trade associations that serve your industry. They may be able to provide you with facts and statistics that can help you show the buyer that your business is part of a growing industry or trend.

Negative Factors That Can Decrease the Multiple

*Sales and profits have been trending down recently.

*Sale and profits have been inconsistent or unpredictable in the recent past.

*Sales from your most important product have been down or stagnant.

*One customer accounts for a large portion of your sales – more than 20%.

*There are many businesses similar to yours that are also for sale. Or your products are widely available at many places – a “Me To” product a line.

*The business relies heavily on location for its success but the lease is not transferable or is about to expire. If this applies to your business, try to get an extension on your lease before you start to sell.

*Pending legal or government issues such as law suits or environmental concerns.

*Important ratios such as profit margin and cost of sales are below average for you industry.

*A large amount of obsolete inventory.

*The business is part of a weak franchise or one with a bad reputation.

*Too many old accounts receivable that will never be collected.

*You are not offering any financing

How Do These Factors Affect the Price?

Sellers tend to focus mainly on the positive factors when talking to buyers.

Buyers, however, tend to zero in on the negatives – or what they perceive to be negative. They are averse to risk and so they will always be on the lookout for problems.

If any of the negative factors listed above exist in your business you are not alone. Almost every business has some problems and they should not stop you from successfully selling.

That these problems exist isn’t the issue, how you deal with them is.

You have several choices when it comes to the weak points of your business.

You can lower your price accordingly and show the buyer how and why you have discounted your price by lowering the multiple, you can ignore the issues and wait for the buyer to point them out, and you can fix the things that are fixable.

Or you can do a combination of all the above.

If you have old or obsolete inventory, get rid of it and take the lose. The same holds true for old accounts receivable. The buyer will not pay you any money for these things and they will only help to create a negative overall impression of the health of your business.

Other factors – such as a decline in sales in recent years or one customer accounting for much of your revenue – can’t be fixed so easily in the short term. If you don’t have the option of holding on to the business for another year or two so you can improve these things than you will have to adjust the price accordingly.

Finally, there are those items that you don’t control such as the fact that there are many similar businesses on the market or you are part of a franchise that is struggling.

I would suggest that you not lower your original asking price because of these items. But be aware that the buyer will probably bring them up at some point so be prepared to deal with them.

Before lowering your price, try first to offset any of these negatives with some of the positives features of your business. Maybe there are many businesses similar to yours on the market, but if your profits have steadily increased over the last few years or if you have a favorable lease in place that is transferable, you can show the buyer how your business is worth the price you are asking.

Source by Patrick Jennings

Things You Need to Set Up an Auto Insurance Policy

Money is an obvious one. And, of course, having a vehicle to insure and a garaging address is another. A completed application with signatures applies to all polices. Also, each company will have their own unique set of guidelines for what you will need. Lastly, legal requirements can change in different jurisdictions.

Payments to start a policy are mostly made by check or credit card. Many policyholders now a days use an electronic form of payment. For credit and debit cards the account number, expiration date, and security code are needed. For an electronic funds bank transfer the account and bank routing numbers. In either case the account holder, which is not always the policyholder, must provide authorization.

Before a policy can begin the exact Vehicle Identification Number or VIN (17 digit alpha numeric) is needed. Providing the year make and model is insufficient. Each car has a unique VIN which identifies the characteristics for that particular car. Air bag, antilock brakes and other vehicle features are verified. CLUE reports (Claims Loss Underwriting Exchange) indicating vehicle claims history require the correct VIN.

Information not provided on computer generated reports such as the MVR and CLUE are necessary to complete the application and issue (begin) a policy. Be prepared to provide the employer (school) name and address for all drivers. When making payments on the car the bank or leasing company name and address is necessary. The application will have to be signed and payment authorized.

Companies often require a variety of documentation supporting the policy. Proof of prior insurance or school transcript for discounts is typical. Photographs of the vehicle or policyholder picture identification are less common. If there are different vehicles in the household covered by another insurance policy you may be asked to provide proof. Not all jurisdictions have the same legal requirements. For example, 7 counties in Florida require mandatory vehicle inspections when starting a new policy that include physical damage coverage.

Most, but not all, of the necessary information for a policy is generated by reports from your name, address, drivers license and VIN numbers. It is imperative that the 17 digit VIN number you provide is correct. Complete information, payment details, specific requirements, and signatures are the things you need to set up an insurance policy.

Source by Clifford J Schimek