Sunday, January 29, 2023

Locating a bad credit mortgage

Locating a bad credit mortgage


Locating a bad credit mortgage


If you're looking to buy a home or refinance the home you currently live in, but think this may not be an option for you because you have poor credit, think again.

Just because you have bad credit doesn't mean you can't get a mortgage. In fact, there are many lenders in the United States known as wholesale lenders who specialize in lending money to people with bad credit.

The names of these wholesale lenders may not sound familiar to you because they are not the typical lending institutions you see on your city's street corners, also known as banks.

The first thing you should do is locate some of these wholesale lenders and shop around for a deal you think is fair. If you are unsuccessful in finding these lenders on your own, you may want to consider using a broker and having them shop around for you.

A broker is not a lender. What they do is assess your situation, they shop around for a lender that deals with bad credit mortgages.

Brokers have access to hundreds of lenders across the country and can usually find one that has a program that suits your needs.

Keep in mind that just because your credit isn't perfect doesn't mean you're at the mercy of the mortgage companies—you're not.

Mortgage companies are very competitive, especially among wholesale lenders, so be sure to shop around. Don't limit yourself to contacting just one broker, let's say no more than four. Allow each to assess their situation, then base your consideration of which one to use on the rate and program offered. Good luck.

Thursday, January 26, 2023

Sales process: how to avoid wasting time with prospects who CAN'T or won't pay

Sales process


Sales process: how to avoid wasting time with prospects who CAN'T or won't pay


Do you have blind faith that if you can somehow convince a prospect to participate in a sales cycle, they will eventually make a sale? If you do, watch out! This belief can waste your time, effort, and company resources.

Unfortunately, investments in time and resources do not necessarily produce sales. How many of the opportunities in your pipeline have been stuck at the same step in the sales cycle for weeks...or months? How many times have you and your company invested enormous amounts of time, energy, and resources (doing product demos, writing lengthy proposals, providing product reviews, etc.), only to have the prospect decide they don't WANT to buy, or try? be UNABLE to finance the purchase? Even when you do make sales, how many turn out to be "nightmare" customers who are always dissatisfied and consume vast amounts of post-sale resources?


All prospects are NOT created equal

You DO need to help your prospects explore whether their business issues are important enough to justify investing time in a sales cycle. However, you also need to find out if each prospect is WORTH your investment of time and resources. If a prospect isn't a good fit, walk gracefully out of the opportunity! 

How can you determine if a prospect is worth your investment of time and resources? Many sales skills training courses teach an acronym, M-A-N, which stands for Money, Authority, and Need. 


1. The prospect is willing to commit enough budget dollars (MONEY) to pay for the product or service

2. The main decision makers and influencers have been identified (AUTHORITY); Y

3. The prospect's pain (NEED) is serious enough to justify investing in a solution.


Unfortunately, even when you do a good job of M-A-N grading, you can be "blindsided" by issues that delay sales cycles or destroy opportunities entirely. For example:

* Some prospects are unable to obtain funding. They may have a budget, but they are not "creditworthy", so they cannot FUND the budget.

* Some decision makers need to be given specific information in a specific format before they can authorize a purchase decision.

* Sometimes you spend a lot of time and effort solving complex problems and designing solutions, only to receive the information that the prospect should take the proposed solution to OFFER. This can lead to the opportunity being lost to a low bidder or the profitability of the opportunity being affected.

To avoid these issues, add additional questions to the M-A-N scoring process. The acronym I have assigned to this revised process is M-A-I-N BP, which stands for MONEY, AUTHORITY, INFORMATION, NEED, and BUYING PROCESS. Here are sample M-A-I-N BP questions:


MONEY

* How will your prospect pay for the product or service?

* Has a budget been established?

* Are they credible?


AUTHORITY

* Who (in the prospect's organization) should approve an acquisition of this nature?


INFORMATION

* What information do decision makers require before they can make a decision?

* In what format should this information be?


NEED

* What are the prospect's business problems?

* How convincing are they? In other words, can you quantify (associate dollars, percentages, and timeframes) the pain the prospect is feeling?

* Are the quantified business impacts substantial enough to justify investment by the prospect's organization (and YOUR company) to identify and fix the issues?


PURCHASING PROCESS

* What is the prospect's buying (acquisition) process?

* What impact could this process have on the profitability of the transaction?

* What competitive advantage will you receive if you invest your time and resources in designing a solution that goes out to bid?


If you decide to add M-A-I-N BP qualification to your lead qualification process, here are some final thoughts to keep in mind:

* If you don't know the answers to ALL of the M-A-I-N BP questions, you are most likely wasting your time and resources!

* Opportunity qualification IS NOT A ONE TIME EVENT. As an opportunity progresses through the sales cycle, you should frequently ask if any of the answers to the qualifying questions have changed. If a response changes, it could affect the duration ofthe sales cycle and even destroy the viability of the opportunity. At a minimum, a change in response will likely require a change in focus and/or a reprioritization of planned activities.

* Never feel bad about disqualifying an "opportunity." The number of opportunities in each territory is virtually unlimited. By carefully qualifying and re-qualifying each opportunity, and only investing time and resources on qualified opportunities, you will maximize the return on your time and resources invested.

Sunday, January 22, 2023

SBA's 8(a) program can help some businesses compete

SBA's 8(a) program can help some businesses compete


 SBA's 8(a) program can help some businesses compete


Q: A friend told me that as a woman of Native American descent, she might be eligible for a special SBA program to help me start a small business. She said that she could compete for government contracts through this program. Can you tell me which SBA program you are referring to?


A: Her friend is probably referring to the Small Business Administration's (SBA) 8(a) Business Development Program (BD). The 8(a) Program (named for the section of the Small Business Law from which it stems) is an SBA program created to help disadvantaged small businesses better compete in the U.S. market and in the field of public procurement. The SBA provides business development, technical assistance, and other services to small businesses that are accepted into the 8(a) program.

The 8(a) program is reserved for what the SBA calls "socially disadvantaged individuals." Socially disadvantaged people are defined as those who have been subjected to racial or ethnic prejudice or cultural bias due to their membership in a disadvantaged group.


The SBA has designated the following groups as socially disadvantaged:


African Americans Hispanic Americans Native Americans (Native American Indians, Eskimos, Aleuts, and Native Hawaiians) Certain Asian Pacific Americans Others who can demonstrate that they meet the SBA criteria for being considered socially disadvantaged

One point your friend is wrong about is that the 8(a) program is for startups. The 8(a) program is primarily for companies that have been in business for a minimum of two years, although that rule can be waived if your company can meet some fairly stringent management, financial, and performance criteria.

The Small Business Act requires that all small businesses have the opportunity to provide goods and services to the United States government. To help ensure that mandate, the SBA negotiates annual procurement preference goals with each federal agency and reviews each agency's results to ensure the goals were met.

The statutory targets are: 23 percent of all major contracts go to small businesses; 5 percent prime contracts and subcontracts for small disadvantaged businesses; 5 percent of prime contracts and subcontracts for women-owned small businesses; 3 percent of prime contracts for HUBZone small businesses; and 3 percent of primary and subcontracted contracts for small businesses owned by service-disabled veterans.

A HUBZone (Historically Underutilized Business Zone) is a designated area within urban and rural communities that has been given preferential contract award consideration in an effort to stimulate economic development. A business can qualify for HUBZone status if it is owned or controlled by one or more US citizens, has at least 35 percent of employees living within the designated zone, and has a main office located there. HUBZones are a completely different topic that we can discuss at another time. Suffice it to say that a company that obtains both 8(a) and HUBZone status may be entitled to a double dip in the public procurement channel, which is why you often find a number of 8(a) companies moving specifically to HUBZone areas to take advantage of the benefits offered by both programs.

The US government buys billions of dollars worth of goods and services every year, from basic goods to those wonderfully expensive toilet seats. Getting 8(a) status allows small businesses to compete for a piece of that business.

The basic requirements to apply for 8(a) status are that your business must be a small business as defined by the SBA, must be owned and controlled by one or more socially and economically disadvantaged persons who are U.S. citizens, and must show potential for success. The SBA defines a small business as "one that is independently owned and operated, organized for profit, and not dominant in its field."

Unsurprisingly, the 8(a) program has its supporters and its detractors. His fans are those companies that obtain 8(a) status and thus get preferential treatment when competing for public procurement contracts.

The detractors of the program are usually those companies that do not obtain andl 8(a) status or that don't meet the definition of socially disadvantaged, i.e. businesses owned by my white American men (that's a can of worms we won't open this week).

You can get more information on the SBA website (sba.gov) or by calling your local SBA office.

Here is your success!

Thursday, January 19, 2023

Sales tax versus income tax

Sales tax versus income tax


 Sales tax versus income tax


The United States currently suffers under an unimaginably complex tax system. Maintaining this bureaucratic behemoth costs taxpayers billions of dollars each year. The direct costs borne by taxpayers are small compared to the costs borne by corporations and individual taxpayers in trying to comply with all these federal government regulations.

The people of the United States and their elected representatives are now considering two options to replace the current tax system: the flat income tax and the national sales tax.

The Single 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 statement, so I'll explain it in layman's 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 at its plant in Plano, TX. Charlie Company manufactures similar devices at its factory in Shanghai, China.

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

For the purposes of our example, let's say it costs Alpha Company $100 to make a widget. To this $100, we must add the burden of income taxes. Again, solely for the purposes of our model, let's say that this upload increases the cost of the Alpha Company Widget by $20.

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

In effect, income tax makes Alpha Company widgets more expensive (and therefore less desirable) than Charlie Company widgets.


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

Again, let's say that producing a widget costs Alpha Company $100. However, this time we will not charge Alpha Company with income tax.

In this model, there are no additional costs for the Alpha Company to pass on to the consumers, John and Chon. When John decides to buy a widget, he is charged the same national sales tax regardless of which widget he buys. This allows Alpha Company to compete on an equal level with Charlie Company.

Also, when Chon decides to buy a widget, he does not pay our National Sales Tax on the widget. This makes the price of Alpha Company brand widgets competitive in both China and the United States.

Let me reiterate this succinctly: the income tax destroys our national competitiveness and increases our trade deficit; The National Sales Tax restores our national competitiveness and allows us to compete on equal terms with the rest of the world.


Income Tax Discourages Work; The National Sales Tax Promotes Savings

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

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

If you work for $10 an hour, income tax takes about $3.50 of that. Now he is 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 its vigor. It hampers 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 is now $2.50. The $100 Walkman is now a $125 Walkman.

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

What do American companies need to develop and grow? investment capital.

Where do American companies currently get that investment capital? From abroad.

Why do US companies get their investment capital from abroad? Because Americans don't save or invest.

Who benefits from American business? The investors.

Who ends up owning American companies? Foreign.

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

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


Objections to the National Sales Tax


Objection:

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


Resolution:

In many states that currently collect sales tax, basic items are exempt from sales tax. These items include food, clothing, and shelter.

The exemption of these basic elements of life 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 tax. The federal government may outsource the collection of the National Sales Tax to existing organizations within the states.

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


Objection:

The change to a national sales tax would require the repeal of the 16th Amendment.


Resolution:

Amendment 16 allows the federal government to impose 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 tax system, try to fix it, or replace it entirely with something new.

The principles of economics clearly show us that the National Sales Tax is the right way forward to ensure America's economic prosperity for our children and their children.Sales tax versus income tax

The United States currently suffers under an unimaginably complex tax system. Maintaining this bureaucratic behemoth costs taxpayers billions of dollars each year. The direct costs borne by taxpayers are small compared to the costs borne by corporations and individual taxpayers in trying to comply with all these federal government regulations.

The people of the United States and their elected representatives are now considering two options to replace the current tax system: the flat income tax and the national sales tax.

The Single 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 statement, so I'll explain it in layman's 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 at its plant in Plano, TX. Charlie Company manufactures similar devices at its factory in Shanghai, China.

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

For the purposes of our example, let's say it costs Alpha Company $100 to make a widget. To this $100, we must add the burden of income taxes. Again, solely for the purposes of our model, let's say that this upload increases the cost of the Alpha Company Widget by $20.

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

In effect, income tax makes Alpha Company widgets more expensive (and therefore less desirable) than Charlie Company widgets.


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

Again, let's say that producing a widget costs Alpha Company $100. However, this time we will not charge Alpha Company with income tax.

In this model, there are no additional costs for the Alpha Company to pass on to the consumers, John and Chon. When John decides to buy a widget, he is charged the same national sales tax regardless of which widget he buys. This allows Alpha Company to compete on an equal level with Charlie Company.

Also, when Chon decides to buy a widget, he does not pay our National Sales Tax on the widget. This makes the price of Alpha Company brand widgets competitive in both China and the United States.

Let me reiterate this succinctly: the income tax destroys our national competitiveness and increases our trade deficit; The National Sales Tax restores our national competitiveness and allows us to compete on equal terms with the rest of the world.


Income Tax Discourages Work; The National Sales Tax Promotes Savings

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

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

If you work for $10 an hour, income tax takes about $3.50 of that. Now he is 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 its vigor. It hampers 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 is now $2.50. The $100 Walkman is now a $125 Walkman.


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

What do American companies need to develop and grow? investment capital.

Where do American companies currently get that investment capital? From abroad.

Why do US companies get their investment capital from abroad? Because Americans don't save or invest.

Who benefits from American business? The investors.

Who ends up owning American companies? Foreign.


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

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


Objections to the National Sales Tax


Objection:

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


Resolution:

In many states that currently collect sales tax, basic items are exempt from sales tax. These items include food, clothing, and shelter.

The exemption of these basic elements of life 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 tax. The federal government may outsource the collection of the National Sales Tax to existing organizations within the states.

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


Objection:

The change to a national sales tax would require the repeal of the 16th Amendment.


Resolution:

Amendment 16 allows the federal government to impose 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 tax system, try to fix it, or replace it entirely with something new.

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

Sunday, January 15, 2023

Seven C's to avoid procedural writing errors

procedural writing errors


Seven C's to avoid procedural writing errors


You go to great lengths to ensure that your organization runs as efficiently as possible. But if your policies and procedures are incomplete, outdated, or inconsistent, then they're not driving the performance improvement that they should. When employees attempt to use incomplete or undefined procedures, costly errors and waste soon follow.


Case Study: Procedural Errors Add Up Quickly


Unbeknownst to them, employees at a local auto parts company were having a costly problem determining when to accept customer credit. The company actually had a detailed credit application procedure, including a thorough error-correction routine, but the procedure had a fatal flaw: it was not indexed correctly.


Indexing improves the usability of procedures


Without a way to easily locate and reference the applicable procedure in the operations manual, employees couldn't find it and simply didn't use it at all, leading to an inconsistent process and widely mixed results. Some staff members regularly turned away potentially valuable clients, while others took bad credit risks because they weren't sure which ones to turn down.

A small omission like this can add up to thousands of dollars in lost sales and goodwill. Even the most thorough procedures inevitably have loopholes that arise from being "too close" to the process or not following the basic rules of writing effective procedures.


Benefit from process expertise


To be effective, procedures must be action-oriented, grammatically correct, and written in a consistent style and format to ensure ease of use. These guidelines, along with industry "best practices" that are documented in auditable criteria, can be used to improve your procedures:


1. Context. The actions must adequately describe the activity to be carried out.

2. Consistency. All references and terms are used in the same way each time, and the procedure must ensure consistent results.

3. Completeness. There should be no information, logic, or design gaps.

4. Control. The document and its described actions demonstrate feedback and control.

5. Compliance. All actions are sufficient for their intended fulfillment.

6. Correction. The document must be grammatically correct and without spelling errors.

7. Clarity. Documents should be easy to read and understandable.


Quickly improve your policies and procedures without hassle

You can quickly resolve these usability issues and improve performance, as well as update your documentation to "best practice" standards without hassle or compromise. As you begin to improve your documents, you will be able to identify areas for improvement. And you can start today with the 7 C's of “best practices”.

Thursday, January 12, 2023

Venture Capital Trading Issues

 

Venture Capital Trading Issues


Venture Capital Trading Issues


Valuation. Valuation is one of the most prominent trading topics. The valuation is the price of the company in which the venture capitalist invests. The valuation determines what percentage of the company the investor is buying for their capital.

Investment Moment. Often these installments are only made when pre-set milestones are met.

Acquisition of shares of the founders. Like equity, investors often prefer shares to be delivered to company founders and key employees in installments. This is known as vesting.

Modification of the Management Team. Some investors insist that additional or replacement management employees be hired after their investment. This gives investors additional assurance that the company will execute on its business model. An important issue to negotiate regarding the change in the management team is the number of shares or options that will be issued to the new members of the management team, as this will dilute the founders' holdings.

Labor agreements with Key Founders. Venture capitalists typically don't want companies to have employment agreements that limit the circumstances under which employees can be fired and/or set compensation and benefit levels that are too high. Other key employment contract issues to be negotiated with venture capitalists include restrictions on post-employment activities and severance pay for employees upon termination.

Company Property Rights. If the company has a major product with intellectual property (IP), investors will want to make sure that the company, and not an employee of the company, owns the intellectual property. Additionally, investors will want to ensure that new inventions are assigned to the company. To this end, investors may negotiate that all employees must sign Confidentiality and Invention Assignment Agreements.

Escape strategy. Investors are very focused on how they will "cash out" their investment. In this sense, they will negotiate on registration rights (both at sight and on the back); participation rights in any sale of shares by the founders (co-sale rights); and possibly a right to force the company to redeem its shares under certain conditions.

Blocking Rights. Venture capitalists may require a lock-in period at the term sheet stage. The "lock-in period" is typically a 30-60 day period in which investors have the exclusive right, but not the obligation, to make the investment. Investors typically carry out due diligence during this time without fear that other investors will jump ahead of their opportunity to invest in the company.

Each of these issues is critical when raising venture capital, as the result can significantly affect the success of the company and the wealth potential of the company's founders and management team. Because venture capitalists are very knowledgeable about these issues and have a great deal of skill in negotiating them, companies that are raising venture capital should look for advisors who also have this experience and knowledge.