Author Archives: schatzi

Sep
02
2022

Top 5 Insurance Policies You Must Purchase Before Moving the Business

Insurance policies help you stay financially afloat in a crisis scenario. When you host a business, there are several insurance policies that will make sure that you do not run out of business or have to dig into your personal savings to keep the business alive. The critical insurance policies take care of various aspects of the business including transportation, property, human resource, and other important assets belonging to the company.

Here, we shall list down the top 5 insurance policies that you must invest in when you kick off your new business and plan to move it in the future.

Logistics Insurance

Purchasing a logistics insurance is a great idea when you know that you will be moving your office stuff from city to city or state to state often. The logistics insurance will cover any damage that is caused to your company’s articles while moving them. It is mandatory for you to get a logistics insurance in case your business involves moving items for your customers using cargo trucks, ships, or by air.

The logistics insurance takes care of the items that are misplaced or damaged during the transfer.

Special Moving Insurance

The moving insurance is specially curated for businesses that move from one place to another, several times a year. The moving insurance takes care of packaging and delivering all the office valuables safely from your old office location to the new one.

The special moving insurance along with the logistics insurance provides complete cover all the important accessories such as computers, data drives, hard-copy files, etc. that are important to your company. The best special moving insurance schemes are valid when you move your articles at an international level too, giving you complete peace of mind for all the valuables in transit. Several movers and packers are in touch with insurance companies that provide a moving insurance for a discounted price depending on and distance of transfer that you wish to make.

Modifiable Property Insurance

Real estate investment is the biggest investment that your business makes during its tenure at one location. The modifiable property insurance takes care of all the financial troubles that you might face while vacating your old office and move into a new one. The best property insurance schemes provide a cover for the loss of income that occurs for the property that you own while transiting the various accessories.

Personal Insurance

It is always a good idea to get a personal insurance along with a special moving insurance scheme so that the transit does not affect your savings in case something goes wrong. This insurance scheme acts as a second layer of protection for you and your business in case the other insurance schemes fail to reap the returns.

The personal insurance always acts as a good investment for people who wish to secure their personal assets that may or may not be linked to the company’s name.

Event Insurance

The special event insurance provides a medical cover for all the guests of your business party, hosted at a place away from your office. There is a fair chance that the third-party liability insurance does not cover the expenses of someone getting hurt at a party/event hosted by the company. The special event insurance comes to your rescue in such cases.

It is always advisable to purchase insurance policies that are designed to move and adjust according to your business needs in the initial stages of the business itself. This will help your business in the long run.

Aug
01
2022

Investment Rates

The investor makes money grow not only for his personal security and happiness. He becomes a participant in the economic activity of the country and a promoter of common welfare. Drops of individual savings cumulatively form the ocean of funds that keep the economy moving.

In the Parable of the Talents, Jesus illustrated how a foolish man buried his silver coin in a hole in the earth to protect it from thieves and covetous eyes. He did not use the money for his needs nor did he make it grow. The wise man invested it productively and made it yield a hundred times and earned his master’s praise and reward.

The Piggy Bank, invented in Western Europe in the14th -16th centuries has been a symbol of household savings. The money put into the pig symbolized the ‘leftovers’ and once the ‘pig’ was full, it was fit to be harvested!

The saving habit leads to spending and saving rightly and creatively, liberating the individual from anxieties and care.

Impact of Savings

There is now a school of thought that says that the welfare state hinders development of the individual. It collects taxes and gives it back in the form of welfare. But quite a chunk of the resources is lost in administrative expenditure and the beneficiary is none too happy with the quality of the services provided.

Personally funded investment schemes empower the individual, enhance his self-worth and invest him with a sense of autonomy.

Planning Investment

Plainly stated, investment rates mean the rates of return on one’s investment. With the emergence of the banking industry and managed funds, investment functions have been taken over by professional agencies.

Investment has become a specialized activity and a variety of avenues are on the investment scene. One needs some basic knowledge for making the right decisions. The individual has to keep in view his –

· Present financial situation

· Tax planning

· Incremental income in the near future

· Requirements of liquid cash

· Needs in the short/ medium term, (house mortgage, education, foreign travel)

· Long term needs post- retirement, and

· Safety and security of capital and optimal rate of returns

Australia’s Investment Climate

The investment climate in Australia is reckoned to be very congenial.

· Political and economic stability, an open society, low unemployment rate and low rate of inflation (less than 3% per annum) and the performance of industry and commerce have created a climate of confidence.

· Australia received $8bn as Foreign Direct investment in 2003, World Investment Report 2004 released by the United Nations Conference on Trade and Development.

· The International Monetary Fund (November 2003) commended the country’s economy for its “strong performance, with six years of budget surpluses, falling public debt, low inflation, high and rising productivity, and a long period of uninterrupted growth that has underpinned a dynamic job market”.

· Australia has a rich natural resource base and strong agricultural and resource industries. Also its biotech, information technology, renewable energy and services sectors have been contributing to nearly 80% of gross domestic product.

· The country boasts of a highly skilled and multi-cultural workforce, superior research and development skills and infrastructure, sophisticated information and technology systems.
· The government encourages FDI and fosters a transparent and pro-investment regulatory environment.

Avenues for Investors

When Adam delved and Eve span, was there any talk of investment? Perhaps they stored grains for the rainy day. Modern life has totally changed our goals and aspirations. We have to save and invest part of our earnings to provide for our needs throughout our lives.

What is the outlook for the small investor in Australia? Depending on short-term liquidity and long-term security, a variety of investment avenues present themselves.

Deposits “At Call”

The “At Call” deposit lends itself to withdrawal at short notice of 24 hours and carries lower interest rate than long-term deposits.

Fixed-Term Investment Options

Fixed-term investments provide a fixed rate of interest for a specified period of time, and generally pay a higher rate of interest than at-call investments. These products generally offer a range of interest payment options including compound interest and interest payments that provide a regular income stream.

Debentures

A loan secured on the assets of the company on which a fixed rate of interest is paid before any dividend is paid to the shareholders.

Bonds

A certificate of intention to pay the holder a specified sum on a specified date. Government bonds are very safe as they are guaranteed by the Reserve Bank of Australia. They are often referred to as gilt-edged securities which the investor feels absolutely safe with.

Shares

Shares issued by a company whose value is not fixed and is likely to fluctuate according to the company’s performance or as a result of speculation by buyers and sellers, also called stocks. Stockbrokers are the intermediaries who buy or sell on a commission basis. One might make a kill here on a good day or get wiped out. It is better for the cautious investor to keep out of this and allow fund managers to do the investment for them on safe parameters of performance. However, purchase of shares at par on new issues could be very profitable over the long term when the share value appreciates significantly.

Managed Funds

Professional managers of mutual funds invest your money in diverse range of assets including equity (shares), debts (government bonds/securities,) and real estate, and pay you the dividend on the basis of the return on the investment. Information on the Star rating of the funds (one to five) and their current prices are accessible to the public through Internet and newspapers.

· Equity funds pay well but are subject to fluctuations and the risk element is more.

· Debt funds are secure as they are invested in bonds and securities.

· Balanced funds invest in both equity and debt to even out the risks.

· Monthly Income Funds pay less while Growth Funds return a higher rate over the long term by reinvesting the earnings.

· The wise investor should plan for stability of capital along with the return

The Watchdog for Managed Funds

The Australian Securities and Investments Commission (ASIC) plays a watchdog role over operations of managed funds and warns the investors about fly-by-night operators offering unrealistic ‘pie-in-the sky’ returns. The ASIC says the investor should first verify if the scheme has been registered with the ASIC. The investor would be well advised to access their website for do’s and don’ts on investments in managed funds and also directly in shares.

Pension /Superannuation Funds

Referred to as “Super”, this is the financial anchor for one’s future. While you are employed, you contribute towards your pension with a matching contribution from your employer. All this together with the lump sum payment given by the employer at the time of retirement forms the corpus which yields the pension. This corpus is reinvested
by the operators of pension funds in both public and private sectors and the income used to meet their commitments. You can opt for lump sum payment or pension or a combination of both. This is a mode of tax effective savings with the potential to diversify.

The Prudent Investor

The prudent investor would appreciate these home truths about investments –

· Investment rates relate to the degree of risk involved.

· Low returns – stable investments.

· High returns – more risky investments.

· Balanced returns – will be a mix of the above two.

· Good to mix investment profile to reduce risks.

· Financial planning needs to be done consulting investment advisers

In his famous play Hamlet, Shakespeare said very rightly “Neither a borrower nor a lender be.” Had he been alive today, he would have added, “but be a wise investor!”

May
31
2022

Why Most Aren’t Successful in Network Marketing

Network marketing, or multi-level marketing has created some of the greatest cornerstones of accomplishments for many ambitious and motivated entrepreneurs. Sad to say for most many who engage in this lucrative industry don’t share in that similar experience. Success in network marketing is highly achievable, but most fail in the beginning. Through my own personal successes and endeavors I can only speak for myself when I say that network marketing isn’t for the faintest of hearts and neither is operating your own business. You’ll have to do WHATEVER it takes to get your business successful, bottom line. That means doing WHATEVER IT TAKES and most people just aren’t willing to go that far.

Here are the Main Reasons why Success in Network Marketing is tough for most:

Trying to find a Get Rich Quick Solution

We should know by now that there are no fast ways to make money. Success in network marketing isn’t quick. If you’re even considering a fast way of making money than you’re not in the right business and network marketing definitely isn’t for you. If you build yourself a network and enhance sales in your particular industry you can make money on a residual basis but it’s a gradual process that takes time. If your good with people and are savvy at finding solutions you can achieve success a lot faster than others. Working hard is just all a part of owning your own business and the cycle of life, ever since the cave man eras.

Laziness and Lack of Motivation

The majority of society is lazy. Achieving success in network marketing shouldn’t be your primary focus until you’ve dealt with this issue. Let’s face it, we all know it and some of us suffer from it even till this day. We love to sleep in, eat and watch TV, drink all day, and you name the rest. Living an easygoing life can create this lifestyle trend (it really does) and if one doesn’t face challenges one can’t grow. If you’re already comfortable with your current position in life, than there’s really no motivation pushing you forward. Achieving success in network marketing is all about overcoming new challenges and developing yourself internally as a person. You have to find something that drives you a lot more passionately than finding a simple solution to your short term problem otherwise it’ll be harder for you to overcome future challenges in the eyes of adversity.

Taking no Action

Analyzing and processing is what we do all day. But how many of us actually turn our minds off(notice I didn’t say brains) and just truly live for the moment? You’d be surprised how much you can literally do when you’re “not thinking”. The reason why most of the 98% isn’t achieving success in network marketing or any other part of their lives is because they lack action and suffer from procrastination. Putting it off and not setting it as a priority sends a subconscious message back to your brain that says this isn’t important enough for me to work at. If this was life or death than your mindset would completely change and that is exactly how you should feel about your new business or network marketing opportunity.

High Priced Products/Service with Little Value

You have to have something of value to offer to the public this is a given. Many people find themselves jumping too quickly into a new business venture and finding out later it wasn’t worth it for them. Part of the problem with this is there’s almost never any research done on the yearly sale earnings of the business their engaging in nor is there any concrete research done on the company’s targeted market and their history. How does anyone expect to achieve success in network marketing without understanding the growth of a company through their numbers. What they should have done is researched more on the company such as finding reviews or comments from other individuals who’ve tried or used their targeted company’s products/services. Hearing what other independent business owners have to say about their own experiences makes a huge difference by granting you more information so you can make a sound decision.

Poor Leadership

There are sponsors and leaderships within all organizations that have poor leadership not just multi-level marketing corporations. What you have to realize for yourself is whether or not you feel comfortable being led by the person who introduced you to the program. The main reason for widespread success in network marketing is because of effective leadership all around. Understanding effective leadership is more than just the sweet talk. Knowledge, empathy, guidance, and support is what you should be looking for in all leaders you choose to follow and learn from. If a leader is lacking in one or more of these qualities than their not a good leader, simply because they lack the ability to relate to someone who’s just starting off as a newcomer.

Overly Exaggerated

There are some network marketing companies out there that take their marketing a little overboard. By overboard I mean rambling on about all the benefits of something worth nothing. Creating a false sense of success in network marketing and making it sound easy is one of the most common ploys of exaggeration. This is something that can be easily seen from the outside perspectives of a consumer, however for those looking for an independent business opportunity these overly exaggerated companies can blind us because of our greed and gullibility. Researching and doing your due diligence on any company should be a primary focus for any new independent business owner.

Preying on the Desperate

Many people fall victim to the same kinds of company’s who falsely promise a quick way to get rich. For those who need money, they are easily blinded by those promises and this is how most people end up with a bad taste for network marketing. Success in network marketing is achievable but there is never a quick way to get rich. If you’re offered an opportunity to earn yourself additional income that’s a different story, but many network marketing companies are disregarded simply because of the unethical actions of a few. As people we can’t let the rotten apples taint all of the good and judge those for it. Do your due diligence and research information about others who’ve joined your prospected company. This a good way to differentiate whether or not this is a real opportunity or just another get rich scheme.

Never Hear from your Sponsor

Besides being one of the most annoying things ever, this action can prevent true success in network marketing simply because of poor communication skills. There are many individuals associated in this industry that are great at signing people up for their products or as their own associates. On the other hand one of the most overlooked actions of many independent business owners is the ability to follow up. Helping other individuals take ahold of a new business opportunity is great, however forgetting about those you already helped isn’t.. This sends mixed signals to a new network marketer and it’s why most who start with a network marketing company for their first time never progress in their new business. A new independent business owner needs someone to show them the basic fundamentals of the game without any guidance or support, success will seem unattainable and for some they’ll just give up.

May
01
2022

Irish Banking Stress Tests May Lead to Further Cash Injection

Here’s a thing you probably last thought about at the age of eight: which comes first, the chicken or the egg?

That, essentially, is the question being discussed by the Irish government and the ECB. Far from being a matter of childish fun, the answer is crucial to Ireland’s attempt to draw a line under its banking-turned-sovereign-debt crisis.

For its part, the government is looking for a commitment from the ECB to extend to the medium term the emergency short-term liquidity it provides for Ireland’s banks. It wants the ECB to provide €60 billion in medium-term funding to part-replace the €71 billion in emergency funding that the central bank has been forced to lend to the banks over the past six months. And it needs an answer fast. Stress test results are due later this week. At the time of writing there is no way of knowing their outcome, however the suspicion is that they will be far more rigourous than the last tests. These were so mild that no sooner had they given the Irish banks a clean bill of health than all three were hit by a run. Following a farce like this it’s perfectly possible that the new tests could give rise to the need to inject tens of billions of additional capital into the banks.

Should this happen, the debate with the ECB will take on crucial importance.

If the government can persuade it to agree to provide €60 billion of medium-term funding the task of recapitalising the banks will become easier. For one thing the need for immediate deleveraging would lessen. This is important since deleveraging would require the sale of chunks of the banks’ loan books. At the present time, any such sales would almost certainly give rise to sizable losses which would need to be financed by additional capital injections. Because no one in the private sector would dream of subscribing capital to the banks in their present state, the additional capital will have to come from the State.

No wonder the government is keen to persuade the ECB to provide funding.

It’s a safe bet though that the ECB thinks that recapitalisation should come first. At around 170 per cent, the Irish banks’ average loan-to-deposit ratio is far higher than it would like. A spate of deleveraging could reduce this to a more acceptable level of 120 per cent or so. Moreover, the ECB is horribly over-exposed to Ireland as it is. It currently provides around €100 billion in short-term loans to the banks together with a further €71 billion to the Irish central bank. So much for theory. In practice, the ECB is said to have accepted that immediate deleveraging would worsen the banks’ capital positions. In the circumstances it may have no choice but to cut a deal on medium-term financing with the government.

The ECB’s problem is that it is dealing with not just an Irish banking crisis but also with a Eurozone banking crisis. European bank balance sheets are fragile and private investors show no sign of wanting to help recapitalise them. Take the experience of the first round of stress testing last year. Of the 90-plus banks that underwent the tests, only Deutsche Bank subsequently raised a significant level of new equity. The remainder soldiered on without improving their capital positions. Additional equity from private sources is a clear necessity. But for private equity to start flowing the results from the forthcoming stress tests need to be credible and the banks will need a higher level of solvency than in the past as insurance against bank runs. But this is only half the story.

The issue that really causes sleeplessness at the ECB’s HQ in Frankfurt is bigger than mere bank solvency.

Because the European banks own large amounts of sovereign debt issued by peripheral countries that are now in trouble, the possibility of sovereign-debt restructuring must also be considered. Now that’s an altogether bigger chicken and egg puzzle.