Casual Articles - Business

How to Improve Your Direct Mail Response Rate
There’s no doubt that direct mail is one of the most effective marketing tool available to small business. What are the advantages?It’s cost-effective, costing between .75 cents and $1 per mailing, including paper, ink, envelopes and postage. It’s effective, averaging between 1 and 3% response rate. It allows controlled growth. You choose how many you send, and since you know the average response rate, you know how many will probably reply. And it gives you one-on-one attention.But direct mail is only truly effective if you get at least that 1 to 3% response rate. I’ve heard about direct mail failures from many small business owners. In fact, I’d say most who’ve tried it don’t believe it works well at all based on their response. Sometimes those responses have been zero.It’s frustrating to pour hours of your best copywriting into a direct mail letter that bombs. You may feel that not only have you wasted your time, but you’ve also wasted a bunch of cash that could have been put to better use somewhere else.But, most of those business owners have committed cardinal sins in their direct mail copywriting. And their response rates could have been far higher had they known a few things about writing direct mail.It all starts with the envelope. If it looks like “junk mail”, it’ll probably be tossed instead of opened. There’s no chance of getting your message if it hits the trash can, and that means you have wasted your time and resources.So, make sure your direct mail letter is opened by making them want to see what’s inside. You could use real stamps instead of a postage meter take your logo off the return address so they think it’s from a real person rather than from a business addre

is probably no way to refinance the balloon at the end of the note term. If a bank was not willing to finance the original transaction, it is unlikely that they would be willing to finance the balloon at a later date.(Notes: Some business note buyers may accept a balloon if it can be amortized within 24 months using the same monthly payment used to pay the note. Other business note buyers may buy payments up to a few months before the end of the note term, but leave the balloon for the business note holder.)

The business note buyer wants to see that the new owner of the business has prior experience running the type of business being purchased. This is especially important for the purchase of a “high-tech” business or a professional practice. The assumption is that someone with experience in the type of business has a better chance of succeeding than someone without prior experience.

One of the biggest factors contributing to the discount that the seller will have to take when selling the future payments is the difference between interest rate on the original business note, and the yield required on their investment by the business note buyer when they buy the future note payments. Therefore, the interest rate on the business note should be set as high as possible while still allowing a monthly payment that can be covered by the cash flow of the business for the term of the note.

The deal is not done until the paper work is done. There are stories where people documented the sale of a business on a napkin or restaurant place mat. That will not be adequate if you have any thought of selling your business note in the future. There are four main documents that should be produced. It is recommended that a lawyer be used to help properly prepare these documents. The documents are listed

Controlling Your Body Language During an Interview
Controlling body language in an interview can enhance a person’s chances of a successful hire. Non-verbal signals are a part of every day life and we all subconsciously interpret these signals. Many individuals can identify the emotions and attitudes attached to the slouching teenager, the happy or sad person, or the introvert or extravert. A slouch, smile, frown or hand movements can make the difference in how a person is perceived. How people can use body language to gain an advantage during an interview?Walk with ConfidenceFashion models often seem confident. They even seem confident in their underwear! These models train to project confidence and youth through their body language. Presenting yourself in a confident manor is crucial in any interview or presentation; and using a confident walk is a stubble way of distinguishing yourself.How do you walk? To find out use a full-length mirror and walk towards it or have a friend videotape you in your chosen interviewing attire. How is your posture? Do you slouch? Good walking posture is essential to presenting a confident image. As you walk, drop your shoulders away from your ears and move your shoulder blades back as if to touch them together. This will stop slouching and lift your rib cage naturally.Next, watch your stride. Are you dragging your feet? Models learn to walk heel to toe. This naturally lengthens the stride and gives you a more purposeful walk. Now it might not feel natural at first because you have altered your stride and posture, nonetheless, as you practice walking a more purposeful and confident stride will develop. As a bonus exercise, try putting a book on your head to keep you head up and shoulders down.Walking with confidence is only

You are selling your small business (business value under $1 million for this article). You would like the buyer of your business to come in with an all-cash offer, or be able to qualify for an SBA guaranteed loan. However, in many cases the owner of the business ends up taking back the financing because the buyer is not able to make an all-cash offer or does not qualify for an SBA guaranteed loan. So you create a “business note” and you now become the “bank”. At first that may seem okay, but after a couple of years of receiving payments you may decide you want to get back into business and you need the cash that is tied up in your business note on which you are receiving payments. So now you want to sell your business note to raise cash for your next business venture. What is it worth? That will depend a lot on how you structured the note.

The objective of this article is to help you structure the note so that it is more attractive to a prospective business note buyer.

Assumption: This article discusses the structure of a note that includes only the business assets of a business. If a business also includes real estate that is being sold at the same time as the business, that real estate should be sold in a transaction that is financed separately from the business assets. This allows each to be valued and financed in the most optimum manner. For example, it may be possible to finance the real estate with a lower down payment, for a longer term, with a lower interest rate, and without a personal guarantee.

The objective of a business note buyer or investor when buying future business note payments is to minimize the risk of a default on the note. Therefore, they look for specific things when evaluating the purchase of future payments from your business note. Those include the following:

buyer’s down payment
number of payments made on the note (also known as “seasoning”)
buyer’s credit history
personal guarantee of the buyer
total amount of payments being sold
cash flow of the business and past profitability
length of term of the note
payment amount
offsets
lien position of the note
amortization of the note
experience of the buyer with the type of business purchased
interest rate on the business note
documentation of the business sale

Unlike the purchase of a piece of real estate, the tangible assets of a small business may not be adequate to cover the amount due on the business note if the buyer of the business defaults. Therefore, the business note buyer is looking for ways to lessen the likelihood of a default. If there is a default on the note, the business note buyer will require that the business buyer follow through on their personal guarantee which secures the business note.

A cash down payment of at least 33 percent should be made by the business buyer. This down payment should not come from borrowed funds. The reason for requiring such a large down payment is to make it less attractive for the buyer to “walk away” from the business if they encounter problems. If they have a significant amount of their own money invested in the business, they may think twice about walking away from the business when things get tough.

If the down payment was less than 33 percent, then the business note buyer will require that the difference be made up by additional payments on the business note. The business note buyer wants to see that the new owner of the business has at least a one-third equity investment in the business between the combination of cash down payment and payments made on the business note while operating the business.

Business note buyers want to see that at least two monthly payments have been made on the note by the new owner of the business. For new owners of professional practices such as doctors or dentists, a larger number of paid monthly payments will be required. This serves a couple of purposes. It should show that the new owner is generating cash flow from the business. It also allows the new owner to see if the business is meeting their expectations. As part of the “due diligence” performed by the business note buyer, they will interview the new owner to see if any problems exist that might lead to future problems making payments on the business note. They will want to know if the new owner was “mislead” by the seller of the business.

The buyer of the business should have a credit score of at least 600. A higher score is required by the business note buyer when the value of future business note payments being purchased reaches a certain level. Any “clouds” on the business buyer’s credit history should not be current. These should have been resolved before purchase of the business.

The business note must be personally guaranteed by the buyer. It cannot be guaranteed by the company buying your business. Specifically, it cannot be guaranteed by a person signing on behalf of the company. If there is a default, the business note buyer will be coming after the personal assets of the individual(s) making the personal guarantee. A personal financial statement for the buyer should be obtained to verify that they have the necessary assets should it be necessary to fulfill the personal guarantee.

The maximum amount a business note buyer will buy in a single transaction is between $300,000 and $450,000. You can create a business note for more than this maximum amount, but the business note buyer won’t buy more than their maximum at one time. This means when the period is completed for which payments have been sold any remaining payments will once again come to you. At this point you will have the option of selling future payments again, if you want to.

The cash flow of the business must be adequate to service the note and provide additional cash for the new owner to live on. The cash flow should be at least 1.25 times the amount required to service the note. The business should have been in the same location for at least 3 years (4 years for restaurants and bars), and it should have been profitable over that time.

The term of the note should not be longer than 72 months with 36 to 60 months being preferred. You can create a business note for longer than the recommended period, but a business note buyer will only buy the number of payments with which they are comfortable. The objective is to minimize the risk to the note buyer. The longer the term, the greater the likelihood that something will go wrong. The note buyer is looking to minimize their risk because the note is not fully secured by the assets of the business.

A key item related to the term of the note is the term of the lease of the space in which the business operates. In order to avoid a major disruption to the business due to a problem renewing the lease, the term of the lease should be at least as long as the term of the business note.

The business note must be in first lien position. The business note cannot be a second position lien behind a bank loan. If there is a default, the second position lien holder may have a difficult time recovering their investment.

The business note should be fully amortized over its term. There cannot be a balloon at the end because there is probably no way to refinance the balloon at the end of the note term. If a bank was not willing to finance the original transaction, it is unlikely that they would be willing to finance the balloon at a later date.(Notes: Some business note buyers may accept a balloon if it can be amortized within 24 months using the same monthly payment used to pay the note. Other business note buyers may buy payments up to a few months before the end of the note term, but leave the balloon for the business note holder.)

The Effective Use of Business Lead Databases
Business lead databases are an incredible resource for any business wanting to generate clients. Leads are the life source of almost every successful business. Without leads you have no customers and without customers you have no sales, no referrals, and definitely no income.Business lead databases are essentially a huge resource of business leads. They are websites or companies that have a list of businesses categorized into industry sector. Decent business databases will be updated often and they will only contain opt-in leads to businesses that wish to be included.Fresh LeadsRegularly updated lists mean you will always have up to date information. You won’t be clicking dead links to sites, you won’t be trying to contact people who have left the company or moved department and you won’t be contacting companies who are in a different industry to the type you are interested in.Opt-In LeadsOpt-in leads mean that the business and contact details you are using are not only relevant but they are also willing recipients of your emails, letters or phone calls. With the increase of Spam and the prosecution of people and companies who partake in spamming individuals and companies it is in your best interest to make sure that you do not Spam.Targeted ProspectsSpecific leads from business databases will be categorized accurately dependant on geographic location, industry and any other specifications you may have. The increasing use of the Internet to run businesses means that geographic location isn’t as important anymore. You can sell your products or services to customers across the world but you may also want to send mail campaigns or paper flyers. You may be selling large heavy equipment or a service that can onl

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Sharpen Your Attitude Edge
An edge is all you need to get ahead in the world of selling. You either get the account or you don’t, and sometimes you get the account by a hair compared to your competitors. So just a slight edge is all it takes sometimes to win the competition’s business away from them.Here is how to get and keep an edge as it relates to your attitude. Remember that in selling the whole decision is made subjectively based on the emotions, not the intellect, of the decision-maker. And one way you can sway them over to your side, assuming you have all the other components in place, is to attract them to you with your insatiably positive attitude.But the difficulty in doing this is that having a positive attitude all the time is nearly impossible in a profession where the real “work” is staying positive and overcoming all the rejection and seeing the energy and time loss of deals that don’t get closed, sales that get missed, and opportunities that go to someone else. So how does a sales rep create and sustain an attitude so positive that it actually contributes energy back into his or her life?Part of it has to do with daily affirmations. But that only goes so far. Plus, if you remember to do them, they start sounding rote and boring. So try something much more simple, much more powerful, and much more easier to remember than affirmations.It is a power phrase. Or call it a mantra. Or call it a short little phrase that gives you a burst of energy and creates the attitude of positive expectation in your life.Here is what I have used for many years and this little powerful and potent phrase has helped thousands of sales professionals all over the world:“Today is going to be the most exciting day of my life.”Say it as

perating the business.

A New Vision of Leadership
The 21st century leader is one who empowers others to be leaders. Managers and supervisors must now embrace the techniques, challenges and benefits of Facilitative Leadership.Consider the following quote:The old world was composed of bosses who told you what to do and think, told you to keep your head down and mouth shut, and made all the decisions, .....In the new world, no manager can know everything or make every decision. Now, to be successful, a manager has to work in partnership, in collaboration, with everyone, and tap everyone's ideas and intelligence. Managers now are coaches, counselors and team builders...Their job is to find people with talent and skill, and help them work together toward a common purpose.From: Ron Zemke, 'The Call of Community', TRAINING, Vol.33, No.3, 1996, p.28The statistics are alarming.• Less than half of all employees feel a strong personal attachment to their organizations.• Sixty percent of employees don't feel their companies develop them for the long term.• Only 40% of employees feel their organizations show care and concern for them.• The average employee has 12-15 jobs during his or her career and 5-7 by the time he or she turns 30.• Only 24% of employees are truly loyal to their organizations - meaning that they have a strong personal attachment to their companies and plan to stay for the next two years.• Replacing key employees costs between 70 to 200% of their annual salaries.• 57% of employees say they are unhappy in their current job.With a talent shortage looming, unhappy and disloyal employees, costly turnover and decreasing productivity---all of which have a huge impact on an organization’s bottom line---leaders and manage

t, but the business note buyer won’t buy more than their maximum at one time. This means when the period is completed for which payments have been sold any remaining payments will once again come to you. At this point you will have the option of selling future payments again, if you want to.

360 Degree Feedback
I meet a large number of executives who consider themselves as team players and believe they have the respect of their subordinates. With some individuals it is can be difficult to understand why they hold these beliefs when it is apparent there is significant conflict within their organisations coupled with high staff turnover rates and high staff absenteeism. Private discussions with members of staff can give the impression the boss is a monster who manipulates the staff in a cold and cynical manner.How can the opinions be so contradictory and polarised when describing the same person? It may be understandable that politicians will have both active supporters and active detractors but should this be expected with managers?Unfortunately some managers are so focused on achieving corporate goals they consider people purely as a means of achieving the goals in a shorter time. They will blindly lead the charge towards a goal only to look around and find they are on their own.One answer to this is to provide a mechanism of anonymous feedback to the manager from all directions. There is some debate about if the feedback should be anonymous but in most cases people are likely to be more honest if comments cannot be traced back to them. Vindictive feedback can be filtered out in an averaging process.Some feedback systems require the respondents to write comments but this can reduce the anonymity and the quality of the feedback. The system we use requires respondents to tick boxes against descriptive words and use two ticks if the word is very descriptive. We find this system inhibits people's responses less and allows extreme views to be filtered during averaging.It is useful if a fully representative sample of respondents is

UCC-1
chattel security agreement or chattel mortgage
promissory note
purchase agreement

The UCC-1 documents that the seller is holding a “perfected” lien on the business. This document is filed with county government and is part of the public record. If there is a default, this document indicates that the business seller will be first (after tax liens) to receive proceeds from the sale of any business assets.

The “chattel security agreement” is a list of the tangible assets of the business. This will usually be the furniture, fixtures, and equipment that are the tangible assets of the business. The intangible assets are things like a loyal customer base that can be lost if the new ownership does not provide the service received from the previous ownership. The chattel security agreement does not become part of the public record, but is necessary to document what the tangible assets were at the time of the business sale.

If any vehicles are part of the security for the business, the title of the vehicles should indicate that you are the owner of the vehicles so that the new business owner cannot sell these vehicles without your knowledge.

The promissory note documents the details of the sale like value of the note at the time of sale, the term of the note, the monthly payment, the interest rate, and any other special terms such as late payment fees.

The purchase agreement ties the whole transaction together. It may contain information that is not specifically contained on the other documents such as provisions to provide periodic financial statements to the seller which could then be made available to a prospective note buyer for evaluation.

The promissory note or the purchase agreement should not contain any “offset” statements which would allow the business buyer to deduct from payments made on the note due to problems running the business or problems with equipment purchased as part of the business. If the promissory note or purchase agreement does contain “offsets”, then the business note buyer will require at least 6 months of seasoning to see if there have been any events that would activate the “offset” provisions.

The following table summarizes the factors contributing to a business note that will be more attractive to a prospective note investor.

Note Factor

Preferred Value for Note Factor

Buyer’s Down Payment

At least 33% in cash that was not borrowed

Minimum Number of Payments Already Made (Seasoning)

2 monthly payments (more are preferred and more are required for professional practices) by the new owner

Buyer’s Credit History

Buyer must have a credit score of at least 600 with no recent “clouds” on credit history

Personal Guarantee

Personal guarantee required (cannot be a person signing on behalf of corporation or partnership)

Total Amount of Payments Being Sold

Maximum is $300,000 to $450,000 in a single transaction (note can be created for more than this amount, but the maximum that can be sold at one time is $300,000 to $450,000)

Cash Flow of the Business

Cash flow should be at least 1.25 times the amount of the monthly payment on the business note.

Length of Term of the Note

72 months maximum but 36 to 60 months is preferred (Note can be created for a longer term but business note buyer won’t buy the payments beyond a certain point.)

Lien Position of the Note

First lien position only

Amortization of the Note

Note must be fully amortized within the note term

Experience of the Buyer

The buyer should have prior experience in the type of business being purchased.

Interest Rate

As high as possible such that cash flow can support the required payment for the term of the note.

Documentation For Sale

UCC-1
Chattel Security Agreement
Promissory Note
Purchase Agreement

Real Estate

Real estate that is part of the business should be sold in a separate transaction from the business assets

Of course, a business note can be structured other than recommended above, especially if the seller does not anticipate selling future note payments. However, if the seller has any thought that they might want to sell future note payments, then the seller should follow the above recommendations as much as possible.

If you have an existing business note or are in the process of creating one as part of the sale of a business, and you are thinking about selling some or all of your future payments on that note, then we can help you determine what an investor would be willing to pay for those payments. Please contact us today for a free, no obligation quote on the sale of your future business note payments.

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This article provides information on enterprise data integration practices, data integration techniques, levels and advantages. Here you can find ideas about adjustments are to be done for implementing a solution and finding a data integration software vendor and service provider. This article will enable you to find right solutions to your business.

Fundraiser bracelets are hugely popular among young people, particularly the custom silicone bracelets with a trendy slogan impressed in the rubber. Silicon wristbands come in every color under the sun, with bright vibrant colors leading the pack, but black and white are also big hits.

When you want to run a business you must consider what type you want to get into. There are various types including being a sole proprietor, running an general partnership, running a limited partnership, running a corporation, or running a limited liability company.

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