How should I relocate my business?

When you need to relocate your business for some reason beyond your power, such as the leased building was sold a natural disaster has occurred near your business or you need to expand by transferring to another location. Whatever the reason for moving your business, you need to make sure that your client base is aware of the relocation, so they can go to the new business address where you will sell your products or services.

Before you announce to the world about your relocation, make sure you have the exact date when you’ll be open for business again as well as the exact address of your new location. Make sure everything is confirmed before you send out notices of relocation. Your clients may assume your business is in trouble and find alternative services or products instead.

Once everything is in place, you can announce the business move using as many marketing platforms as possible. If you have a list of repeat clients, you can send them a brief e-mail. However, if you like to keep it traditional, use a postcard instead. Whether you choose to send the announcement via e-mail or postcard, remember to make it as short and professional as possible.

If you don’t have a database of client information, you should post an ad in the local paper. Learn the techniques of making a striking and brief advertisement to ensure your ad is top quality. If an ad on your local TV channels is affordable, check if they can accommodate your announcement. You can also go to the local radio stations and see if they can broadcast the announcement for you. If not, you can choose to purchase a radio ad instead. In addition, if you’re a member of the local Chamber of Commerce, you can ask them to include your announcement in the next newsletter without charge.

Once you’ve taken advantage of every media platform available in announcing your relocation, you should hold a re-opening sale or party that can help you spread the message and even attract new clients. After the opening, send a thank you card to your customers, whether they attended the grand re-opening or not.

How can I attract new & repeat customers to my restaurant ?

One of the riskiest businesses is maintaining a restaurant because the failure rate of new restaurants ranges between 50 to 65 percent. However, this doesn’t mean you’re bound to fail if you choose to set up a new restaurant. With a large client base, your restaurant would be a hit. The problem lies with attracting new clients and making them repeat customers. Here’s how you can do this:

Choose at least three companies or offices located near your restaurant. Make sure you have good food before you market your restaurant. Before visiting the offices, have your kitchen crew cook up samples of your most mouth-watering dishes in the menu. Make sure to create teasers, instead of full meals. In addition, make sure to create beautiful packages for your samplers. If you’re targeting office employees, you can create to-go containers that would attract them to have food delivered to them. Avoid plain packaging and sloppy food. Your goal is not only to provide good food, but also to ensure the presentation is as appealing you can.

To ensure your samplers would be eaten, visit the offices before lunch, when the employees are getting hungry. Introduce yourself as the owner of the new restaurant nearby and tell them you just wanted to offer them a “getting-to-know-you” favor as a neighbor. If your employees wear a uniform, make sure to wear one before sending out samples, so the potential clients can see the logo.

To attract more clients, you can offer coupons and discounts for repeat clients. To make these techniques work, make sure to place an expiration date on all the coupons you sent out. When you do this, you are convincing the customers to hurry up before the coupons expire. Coupons work because they enable you to track which businesses are bringing in new customers to your restaurants. By adding a simple code or numbers, you can send a Thank You card to the company where your food is a hit. Whenever you deliver food for new people, make sure to include a menu and coupons inside the to-go bag.

As long as you create good food, develop a marketing plan and introduce your products to companies near your restaurant, you can attract new clients and have them go back for more.

How do I form a board of directors ?

The law requires every company and nonprofit organizations to form a board of directors because this board would serve as your group’s governing body. Depending on your organization’s background, the board would vary widely in terms of structure and characteristics of individuals needed. If you’re running a nonprofit organization, would you prefer someone with good credibility to assist in fundraising? If you’re the head of a company, would you prefer a team who can work on the board hands-on or just hold occasional meetings?

Your goal is to form a board that would work perfectly with your organization’s mission. You can start by defining the board’s rules of operation in your organization’s bylaws, which would provide a detailed definition of your board, including information about the number of board members, positions, duration of terms and meeting conduct.

Before you start recruiting people, make sure to determine the skill set you would need for the board members. You can determine the major problems your organization faces. If your corporation has been financially unstable, you can find an eligible accountant as a board member. If your employees disagree often, get a human resources expert to help with personnel issues. As long as you choose members that would help the corporation improve in different areas, you’re just on the right track.

Create an application template, which would indicate their career history, skills and resources, relevant experience and reason for their interest in joining the board. Once you’ve compiled these templates, keep a list of potential board candidates. Once you’ve narrowed down a list of potential board members, invite them for a meeting to determine if their portfolio is as impressive as their personality. You can also determine one’s commitment and allow them to clarify possible issues of the position, if you choose them to be a member of the board.

Make sure you clarify the responsibilities of the board members before assigning them to the job to ensure the board would stay on track. Generally, you’d want to include information about the organization’s mission, raising funds, selecting an executive officer, enhancing the image of the company and other information that you may see fit.

When your board of directors cannot handle complex issues effectively, you can either assign two members for each committee or rearrange the committees each member handles by focusing on their expertise and switching them to appropriate functions. Be aware that nonprofit board members are usually volunteers, while the for-profit corporation counterparts are usually paid.

How can I promote my business for free ?

Small business owners usually feel they can’t spend money to advertise their products or services, making it an advantage for competitors. Although traditional advertising requires you to invest money in exchange for publicity, the world we live in today offers an equal battleground for small businesses and the big boys. If you have no budget for advertising, but would like to promote your products or services without spending a cent, you can. Just follow the tips below:

Build your online presence – Whether you only a have small business or a large one, building a website increases your client base. If you simply don’t have money to invest on a website, you can get a website hosted without charge. Make sure you provide useful content and functional navigation to attract new and repeat clients. If you can’t hire someone to do the website for you, there are thousands of ready-to-use templates you can use to make your website. Once you have developed your website, include your URL and e-mail address in all your marketing items, such as brochures, business cards, posters and other materials. Submit your website to search engines and directories to complete your online presence. Update your website regularly.

To promote your website and business, you can create a blog and write about your industry. If you’re promoting a hardware store, you can write about do-it-yourself projects. Whatever you plan to write about, make sure it is related to your industry and you provide useful information to your readers. In addition, make sure you include a link to your website every time you make a post.

Advertise online – The internet provides plenty of websites where you can post an ad without charge. One good example of such sites is Craig’s List, which is used by millions of advertisers from over 20 countries worldwide. You can also try to find websites that offer listings for your city, so you can target your audience more precisely. Take advantage of these websites because they’re absolutely free and it would never hurt to spread your marketing techniques online.

If you’ve created a website, maintained a blog, advertised online and held successful marketing techniques using the Internet, you can still promote your business in the real world by getting involved in your local community. By providing free services, donating your products to charity or volunteering in local projects, you are expanding your network, which would in turn help promote your business. As long as you follow these tips, you can compete with the industry without spending a cent.

How can I get a license for my art work ?

If you’ve created a masterpiece and someone wants to license your work of art for other uses, you’re the one who needs to get a license for your artwork. When you license a piece of art, it can result in two things – a profitable or problematic experience. If you want to get your work licensed in a hassle-free and effective way, follow these tips:

1) Look for venues – When venues like museums, restaurants, theaters and local exhibits become interested in your work, the artwork can be used for licensure. Once you’ve found reputable venues who would pay to license your work, they would display the artwork in their establishment.

2) Look for investors – Aside from venues, individuals and companies interested in using your artwork for personal or business use can help you get artwork license. For instance, if you’re a graphic artist, you can look for publishing companies interested your work and ask for royalty payments when published in books or magazines. Always be on the look out for companies and individuals that might be interested in the type of art you create.

3) Keep investment safe – Get a licensing contract from the establishment, company or individual that wishes to use your artwork. Make sure you understand what is written in the contract before signing, else, seek an advice of an attorney to help you manage the licensing contract.

4) Review the license before signing – Once you receive the license, review it carefully and check the details, such as complete description of the licensed art, reason for reproducing or displaying the artwork, venues where the art would be displayed, duration of distribution or exhibit and payment rates, royalties or other financial compensation you would receive for your art license. Sign the agreement only when you have reviewed the details of licensing carefully and you agree to everything listed on the contract before committing to the deal.

As an artist, you should never allow an individual, venue owner or company to gain full copyright and reproduction rights to your artwork. If you plan to hire someone to obtain your license, search for a specialist who is aware of the ethical standards used by the members of the International Licensing and Manufacturing Association.

How can I get affordable health insurance if I’m self employed ?

Today, more and more people prefer to become self-employed to increase earnings. However, since undergoing self-employment means that you won’t receive the benefits employees of companies usually receive, obtaining health insurance can be difficult to afford. If you’re looking for an affordable health insurance plan, there are some things you can do to get one:

1) File as a Dependent – If you’re married and your wife or husband has an insurance where he or she works, you can ask your spouse to add your name as a dependent. Most health insurance plans cover a person’s immediate family in the plan, making you save hundreds of dollars monthly.

2) Consult with your friends and relatives – If you know other self-employed people, ask them about their experiences in obtaining insurance. This can help you take note of things to avoid and fulfill to ensure you are approved for a plan.

3) Get advice from your doctor – If you have health problems and you really need health insurance, your doctor can help you in determining which insurance companies provide affordable plans and best payouts. However, you cannot get information on which companies offer the cheapest monthly plan.

4) Do your research – If you have time to spare, do your own research by simply going online and looking for websites of health insurance companies. Normally, these companies provide an online form wherein you could get quotes based on your current health condition. Healthinsurance.org and Ehealthinsurance.com provide good information, so you could start your own research.

5) Join professional clubs – Look for clubs based on your field and ask about their insurance plans. Many of these local or national clubs offer self-employment health plans at lower rates.

Be aware that not all health insurance policies have the same rates and terms. Make sure to do your research, compare plans and do the math before deciding to purchase insurance plans. However, if you are unemployed due to other uncontrollable financial reasons, the Department of Labor has a program called UI (Unemployment Insurance) that offers employment benefits to people eligible for this type of insurance.

How can I get a loan from the SBA ?

If you are planning to start your own small business, but don’t have the financial capacity to do so, you could apply for a SBA (Small Business Administration) loan. However, before filling up the form and submitting the necessary documents, you should first determine if you would qualify for the SBA loan.

The main qualification of an SBA loan application is for borrowers to demonstrate their capability to repay the loan. As such, anyone who plans to borrow an SBA loan needs to state if his or her business sustains a positive cash flow, which could allow him or her to repay the debt on time. Other factors used in loan approval are the borrower’s character and management skills, financial history, amount of equity in the business and other collateral. In addition, if the borrower owns more than 20% of the business, he or she must guarantee the loan being made. When this is the case, the lender would review the borrower’s income history, credit report and FICO scores.

Once you feel that your credentials can pass for an SBA loan, look for local lenders that offer loans from the Small Business Administration. If you have no idea whether your city has an SBA lender or not, go online and check the SBA website. You can also ask your bank if they offer SBA loans. If you have found a lender, obtain a loan application form. Before filling up the form, make sure to read the instructions carefully and make a list of the steps needed to complete the application.

Compile all the business documents and financial reports needed for the application. Generally, the required documents needed for an SBA loan include your personal financial statements, latest personal and business tax returns, owner’s capital report, personal and business credit report, the company’s Articles of Incorporation, cash flow projections, profit and loss reports, balance sheet, office lease documents, records of business debt and other documents required by the lender. After creating a loan proposal, you can now compile the form, supporting documents and your proposal, submit everything to the lender and follow instructions the lender would provide.

How can I boost my small business profits ?

People invest to open up their small businesses to make money. If you’re not reaching your desired sales, what is the point of running a business? When your small business profits are going down the drain, don’t lose hope. You can still perform some ways to boost your small business retail profits without spending too much money.

1) Resist the temptation – The problem with small business owners is they tend to beat competitor’s prices by providing lower-priced items. Although this would draw customers to your doorsteps in an instant because people are always looking to save money, this won’t be good for your business. While some of these customers would come back to your store to buy more items, they would always be searching for “a good deal”. If you suddenly increased the prices of your items, then up to 75% of your so-called repeat customers won’t be coming back.

2) Choose an identity – Retail businesses succeed because they provide any of these three aspects – 1) good quality products, 2) good customer service or 3) best deals and consistency. If you can do all of these with your small retail business, then you’re off to a good start because people today highly appreciate good customer service when buying quality products and receive regular deals on items.

3) Choose your products wisely – Fill your shelves with sure-buy items that would sell quickly and reduce low-turnover products. Contrary to popular belief, it is not wise to stock a store with a large variety of products people can choose. To boost your profits, make sure to identify items with a record of fast sales. However, be aware that this requires experimentation to learn which items sell more and those that are slow sellers.

4) Create successful promotions – When you offer promotions in your store, make sure you balance the promotional loss you would receive against the estimate number of people you feel would purchase the promotional items. For example, if you’re offering a buy-one-take-one alarm clocks valued at $50, at the loss price of $10, you need to sell more items just to offset the loss. You can create successful promotions by using previous sales numbers to determine which items would give more profit than loss.

Once you follow these tips, you can slowly see your profits increase. Be aware that a minimal increase in your small retail business’ profit is better than no increase at all, so make sure you run a successful business by taking steps to boost your profits today and reap the rewards later.

What is bankruptcy ?

Bankruptcy is a term used when a person or company declares himself or his business incapable of paying outstanding debts. The types of bankruptcies vary, so a person could meet with a judge to determine a realistic payment schedule or file a legal bankruptcy to discharge most (or sometimes, all) of the debts. When businesses declare bankruptcy, it could either close down or continue to run with a reduced payment scheme to debtors.

Bankruptcy types vary from one country to the next. In the United States, bankruptcy for individuals or couples comes in three types, which are classified as ‘chapters’. The most common type of bankruptcy filed is a ‘Chapter 7’ wherein individuals and spouses are included. Chapter 13 is rarely filed, but it also falls under bankrupt individuals and married couples. Chapter 12 is only filed by fishermen and family farmers.

Bankruptcy for businesses can either be filed as a Chapter 7 or Chapter 11. The rarest form of bankruptcy is a Chapter 15, wherein an individual or business clears his or his business’ international debts. If a government-run agency or department declares bankruptcy, a Chapter 9 bankruptcy should be filed.

For individuals and businesses that want a clean slate, a Chapter 7 bankruptcy could void all debts, depending on a court’s decision. However, businesses filing for this kind of bankruptcy always have to shut down their operations for good. In addition, some federal debts, such as salary or student loans, cannot be filed as part of bankruptcy.

Not everyone can file for bankruptcy; a person or business should prove insufficient income that makes them unable to meet debts. Anyone filing a Chapter 7 has the most risk of losing assets since they have little left to lose. If they have other assets like vehicles, second houses and collectibles, which can be liquidated to pay debts, they would not be given a clean slate. However, if they would eventually lose a primary residence or vehicle through this bankruptcy, a judge may approve of the filing and given a clean slating, removing all debts such as those owed to doctors, hospitals or credit card companies.

Those with multiple assets, but their incomes cannot cover other payments, such as second mortgages, can file a Chapter 13 bankruptcy. In these cases, the debt is restructured or reduced to enable the person or business to keep the assets, but make regular and pre-determined court-ordered payments, which should be made on time to prevent the assets from being seized. A Chapter 13 bankruptcy follows the same principle, but is used by businesses so they could continue operations without closing down.

Anyone approved of a bankruptcy filing, may it be an individual or a business, would reduce their credit score. It would take another 10 years to be approved for new homes, cars and even credit cards once you are deemed bankrupt.

What is a monopoly ?

In economics, the term “monopoly” is used when referring to instances wherein a single company is offering irreplaceable services or products. Since that particular company is the only place people could obtain the goods, the company can set their own prices, ruining market competition, which is the basis of a normal and healthy economy. When this happens, economists believe that this company is “monopolizing” a particular industry or market.

Examples of accusations of monopoly would include Microsoft as they are the only major company providing operating systems and Internet browsers for years until the open source Firefox and Linux entered the scene. Another would be the pharmaceutical company Pfizer with their then-one-of-a-kind drug “Viagra”, which had no competitors or substitutes for years. In Pfizer’s case, the company was the inventor of the drug, so the market’s demand was in the company’s favor as there were no other preexisting supplies from other companies.

A number of economists believe that the government should leave the market alone; so if monopolies occur, that is how the private market came to be and shouldn’t be touched by the government. However, other economists disagree; even if they believe that government shouldn’t interfere with the market, an anti-trust action would be necessary for special instances

Today, monopolies still occur. Samples of modern-day monopolies include DeBeers, which has power over the diamond market worldwide; the NFL controlling American football as well as MLB for American Baseball; and AT&T.

What is embezzling ?

Embezzling or embezzlement is the act of taking money, which has been placed under your trust, but still belongs to the original owner. A good example of embezzlement is an insurance agent intentionally stealing money, which he should have kept as part of his job for the company. The money he stole belongs to the clients of the insurance company and his actions are considered as “embezzling”.

Unlike stealing, embezzling is an action wherein the “embezzler” has the authority or access to the money. Most of the time, the embezzlers’ jobs require them to handle payments of clients and are trusted by their respective employers to keep the clients’ money. However, unlike theft that can be difficult to prove, especially if not caught during the act of crime, embezzlement is easy to catch. Most embezzlers don’t get caught on their first try, but because they become greedy, they usually raise the stake of embezzlement, leading to their ultimate downfall.
Since embezzlers usually continue their job at their companies, they can be caught through many ways, such as regular financial audits.

Embezzling occurs worldwide; most countries consider this as felony because it usually involves large sums of money. However, it could also involve just a few dollars. Corporations, banks, shops and other companies that are “trusted” with clients’ money are aware of such problems and are always on the look out for such crimes, ranging from different embezzling methods such as taking change from the cashier registrar or hacking a system to steal funds.

Most embezzlers do away with their crimes by falsifying records and documents. Another method is using a phantom employee, wherein the embezzler creates a name, job role, paychecks and documents for a non-existing employee. Both of these methods can be caught through annual audits, but most procedures are not thorough enough to determine if embezzlement has been made.

What is downsizing ?

Downsizing is the term used to refer to the overall reduction of operating costs in a particular company, usually by trimming down the number of employees. Downsizing usually occurs when the market is tight since companies try to survive and compete with other companies within their industry.

Companies practice downsizing because of several reasons, the most common being “to make daily operations well-organized”. Some companies practice downsizing when they replace people with computers or machines, making production quicker and reduce human-made errors. Aside from this, the company also saves money by spending a one-time deal for the machines and avoids overhead expenses for many years to come. On the other hand, some companies close down one division when the big bosses feel the department isn’t bringing in revenues. Some businesses just literally have too many employees due to a sudden decrease in demand on services or redundant divisions.

Many companies hire consulting firms to assist them during a downsizing process by evaluating their business objectively. Since profit remains the main goal of all businesses, employees know that this scenario may occur, particular in companies that are just starting out or those that are part of an unstable market.

Employees are the most affected in downsizing, so it’s understandable that they feel threatened of such process because downsizing would mean they may or may not continue their employment within their present company. The process of downsizing can be very abrupt or slow, depending on the status of a company.

What is a temp job ?

Temp jobs, shorthand for temporary employment, are offered by companies who need specific jobs to be filled in temporarily. When companies do this, they find hiring new employees an expensive option since the job needed would only be done in a few weeks or months, depending on the client’s needs.

Plenty of companies specialize in finding temporary staff for companies in need of short-time services. These businesses work by compiling hundreds of applicants in different niches. When a company needs a person to fill up an accounting seat, the employment agency would just call in their registered applicants who would fit the job description.

Most temporary workers are employed for a professional staffing agency, instead of directly to the company. As such, a company in need of temporary workers would pay the staffing agency a negotiated rate for a worker or set of workers, while the staffing agency would pay the employees with a deduction from that rate. There is usually none or minimal on-the-job-training available for temporary workers. As such, people applying for temp jobs should adapt to different types of working environments quickly.

Generally, a temp job has a definite starting and end date, but most jobs are left open-ended. Some companies could hire a temp employee indefinitely. However, the paychecks would still go through his or her staffing agency. Because of this, when companies want to keep a temp employee and give him or her a permanent employment, the staffing agency may keep it from happening due to contract agreements. However, some agencies allow clients to provide a substantial fee in exchange for the release of the employee. Unfortunately, even though companies want a temp employee for the job, the expenses may seem not worth it and eventually discouraging the company.

Most temp jobs pay just above or exactly as the minimum wage with none or little benefits. Most of the time, a temp employees paycheck is deducted with taxes and other fees required by law. Depending on the staffing agency, payments can be daily, weekly, bi-monthly or monthly. The staffing agency would also be responsible for assigning jobs to temp employees; so they may assign its employee for a temp job for several weeks or give a one-day task to complete.

What is market value ?

A market value is the expected price of a real property. Generally, the market value of a piece of land, home or other properties is determine by real estate professionals or appraisers based on several factors. However, since the market can be very unpredictable since it tends to fluctuate dramatically, a real estate value may not be so reliable. As such, the actual market value is determined by fair and open negotiations from both the seller and buyer.

Determining the market value of a property is very important if you’re selling a home since it allows you to set an objective asking price. Some sellers that have no idea of a property’s market value tend to price a land or home too low or too high, which could both result in a negative financial result. In the same sense, many homeowners without market value knowledge can become victims of a practice called “predatory lending” wherein lenders talk you into borrowing more money than the land is truly worth.

An appraiser or any professional working in the real estate industry determines the market value by comparing other properties, which have been sold recently within your area. This practice is called “comparables” as real estate professionals locate properties similar in style, size, zone and other features similar to your own, which have been sold in the last year. Another important factor in determining market values is the ‘average price per square foot’ of homes within your area. Although checking on ‘comparables’ should not be the only basis for determining market values, this information would provide a reasonable base price.

One of the best ways of increasing market value is home improvement, such as upgrading bathrooms and kitchens, or completing cosmetic updates, such as new carpeting, painting, window treatments or light fixtures. Such improvements not only help homeowners to present their real estate better, but also increase the overall market value. Remember that a property’s condition largely affects the overall market value, so a home with an outdated mechanical systems and faulty structures would not command a high asking price.

Anyone could check the market value of their homes by calling real estate agents to give you an appraisal. Some offer free appraisals in hopes of making you as a client when you decide to sell the home. However, you can also do your own research by checking out the public real estate tax records to gather information of recently sold properties. But to ensure you attract high-paying buyers of your home when you do list it down for sale, it is best to get up to three professional opinions that would determine its market value.

What is a mail shot ?

In advertising, a mail shot can be a magazine, flyer, coupon or letter as a type of direct advertising, which is sent to different addresses as a way to earn more clients for a particular company. Mail shots aim to target potential clients who would use the services or buy products of the company, but many people call such mails as “junk mail”.

The most effective type of mail shots are those offering discounts, freebies or promotions. Companies can directly perform the mail shot or hire an outside distributor who would advertise the company for them. Such distributors usually have a large database of potential clients, but they often send the mails addressed to the “occupant” or “resident” to avoid return mails, particularly if the mail is addressed to someone who is not living in the present home.

When a mail shot reaches its target audience, the company becomes successful in its goal. For instance, if the company is trying to promote a sale that would occur in the city, they might want to send in flyers to people near the business.

Businesses that send their own mail shots are also successful because they often use addresses of their previous clients. These lists are often gained by businesses when people register on a website to receive promotions or from past clients who sent in personal checks with their respective name and addresses. This practice is much more effective if the company offers discounts to past clients.

All kinds of businesses and professionals, even those who are still starting out, can use mail shot in announcing their new service, product or business along with their office address, contact details and websites. It could benefit professionals like dentists, veterinarians, accountants and many more, allowing an inexpensive way to give the public information of their services and products.

Compared to radio, TV or website advertising, a mail shot is very inexpensive. However, some experts recommend using direct mail service, instead of performing the mail shot on your own, since it could be time-consuming and untargeted, especially to those who haven’t done a mail shot before. Be aware that prices of performing mail shot depends largely on the number of people you plan to send the advertising letter.

What is a lemon law ?

Lemon laws were passed for the protection of the consumers who have purchased products with serious defects. If a product can no longer be repaired within a the warranty period, it is usually referred as a “lemon”. Consumers who are stuck with a lemon can find their rights protected with lemon laws.

There are different types of lemon laws that cover a wide variety of product. Leasing a car that continuously develops different kinds of defects with early purchase is one example. The car can be covered by your lemon law for a brand new car replacement. The car defect should be major, such as those affecting the safety, value and operation of the vehicle.

Just like other types of laws, lemon laws vary by state. As such, make sure to check guidelines carefully to know the actions you need to take in protecting your investments. Replacing a vehicle with defects within 30 days of purchase or vehicle that require repairs on the same problem for more than four time within a year are standard regulations in lemon law.

There are manufacturers that will convince you that your rights are void within the contract signing due to the clause inserted into the agreement, but it is still invalid because lemon laws are fixed and still apply in full force. Some manufacturer will also try to convince you to go under mediation instead of going to court. Be advised that consumers are not required to participate unless the Federal Trade Commission set out the rules.

What is a book profit ?

The term “book profit” is used in finance, which refers to a profit that has not happened yet, but is demonstrated on paper. In stocks, the term book profit is used when an investor sells his stock and turns the “book profit” into a real profit. The term book loss is also used in finance, but to determine potential losses.

Businesses often use book profit to attract potential investors that their business is performing well. However, book profit should be carefully used since the actual profit has not happened yet, a sudden change in the market may result in a loss, which would eventually lose the investors’ trust. In the same sense, a book loss could suggest that a business is experiencing an unstable financial phase, but may eventually pull through.

For investors experimenting on the stock market, using these unrealized profits could be misleading. Since the stock market can be very unstable, the investor may experience a huge financial loss if ever the market experiences an unexpected downturn.

While using book profit has its disadvantages, this kind of profit is not taxable because no transaction has taken place. A good use of book profit is on real estate, wherein a landowner pays low property taxes as long as he doesn’t sell the land because even if the value of his real estate has increased, this increase is a paper profit, so he would be taxed at the same amount when he purchased the land.

A problem with book profit investors usually experience is the difficulty of selling stocks after their values decline. If an investor purchased $500 and the value increased to $700, the book profit would be $200. If this same investor hands on to the stock and then its value drops to $250, he or she may become reluctant in selling the stock until the price increases again. Unfortunately, this practice can result to a net loss if the investor decides not to let his stocks go, especially while he can still sell the stocks to net a profit.

What are pay periods ?

A pay period is the duration (or number of days) wherein regular non-salaried employees receive their pay. Employees paid per hour receive varying payments according to the hours or days they worked for, while salaried employees receive a pre-set pay regardless of the length of pay period.

Pay periods vary for each company; some pay weekly, while others pay bi-weekly, monthly or even yearly. The most common pay period is bi-weekly, usually on the 15th and last day of the month. Each of these pay periods have their own advantages and disadvantages. For instance, freelance workers are paid every day after work; while this may benefit the employee, it can be a time-consuming ordeal for employers as they have to create payrolls everyday.

Weekly pay periods can be a time-consuming process for employers are payroll and check signing are done every week. For employees, a weekly pay period can become a disaster, especially for those who are not good at budgeting funds. Since employees paid weekly tend to spend over their limits since the next paycheck is just 7 days away, they are stuck being unable to pay for monthly utility bills, rent and other necessities.

The most common type of pay period is a bi-weekly system wherein employees are paid every two weeks. Both the employers and employees find this system very effective since not only do employers save time and money for payroll, but employees also have a chance to manage their money more appropriately.

For employees paid by the hour that follows a bi-monthly plan, their expected pay usually varies because some pay periods have more days than others do. This happens because months like February have smaller number of days, so the first paycheck for March usually turns out low paying.

Monthly pay periods are rare, but are only appropriate for employees with good budgeting skills since after receiving your paycheck, it would be another 30 days until you receive another check. However, the rarest type of pay period is the yearly paycheck.

What is a headhunter ?

Headhunters refer to job recruiters specializing in finding skilled professionals to match with corporate employment needs. A headhunter can be an independent contractor or an agent of a company, wherein each employee is assigned a particular industry or geographic area.

Companies typically use a headhunter to save time and avoid advertising career openings and sorting through hundreds of applicants. Since this process involves valuable time and money in the part of a company, hiring a headhunting service or independent headhunter to complete the tedious work in the company’s behalf would be more cost-effective. The company pays the headhunter a fee only after the agent has found the right candidate. This fee is usually a percentage of the candidate’s first annual salary.

The headhunter’s fee is usually 50% or more lower than the money a company would be spending in searching and entertaining applicants for a job. As such, once a headhunter delivers a highly skilled professional that fits the job description perfectly, the company builds a long-lasting business relationship with the headhunter. With this set-up, both parties benefit completely, while helping those seeking employment obtain their dream job.

In some cases, the hired recruit shoulders the headhunter’s fee, which is usually deducted every month’s paycheck for the rest of his or her first year in the new company. Because of this, it is important to identify if your pay would be deducted when using a headhunter. Once you cleared this issue, a headhunter can help you with employment opportunities that you would otherwise miss.

Half of the headhunters work for corporate clients, while the rest help people seeking employment land a job. As such, anyone looking for employment could call up a headhunter and once the agent or agency deems your skills, personality, resume and experience good enough for employment in a particular industry, the agent would set up a phone or on-site interview.

What is a credit card terminal ?

A credit card terminal is a device used by business owners in authenticating the credit cards used by customers in paying for services or goods. Although credit card terminals come in various forms, these small machines work have the same purpose: to protect the retailer who employs the credit cards. Since an expired, stolen or invalid credit card would not push through, the retailer would not receive a cent from the sale. Credit card terminals help in avoiding such instances, so that all purchases are paid for.

The most common credit card terminal being used these days is the small machine with a sliding slot and keypad. Once a customer gives his or her credit card as payment, the retailer would slide the card into the slot, which then records the data set on the card’s magnetic strip. Most machines require the retailers to type in the last digits of the customer’s credit card number for additional security.

The data gathered would be sent to a verification center, which gives a confirmation message back to the retailer. If the credit card is declined, the retailer may refuse the sale. However, if no problems were seen during the verification, the client can pay for the goods or services using the card.

Most credit card terminals, which act as a modem, are connected to a telephone line. Some terminals are wireless, which entails cellular communications or Wi-Fi to verify credit card information. For stores that allow clients to go through their own checkout procedures, data is transmitted automatically and reiterate the message from the verification center to the clients.

For businesses without phone lives or wireless access, the credit card terminals available do not permit instant verification. Instead, the machine only stores the received data from the swipe and then prints out a receipt for the customer. All credit card transactions within a day can be transmitted to the verification center in one batch.

A new type of credit card terminal is web-based, which you see in retail stores like amazon.com. These terminals verify credit card information instantly without having to swipe in the actual card.