Posts Tagged ‘recession’
Many people who are interested in starting an online business assume that because the country is in a major recession right now, this is not the time; however, I ask you to consider the facts:
1. For most of the big decisions in life, e.g., starting a business, getting married, having your first child – there is never a “perfect” time.
2. To become wealthy, you really need to own your own business (93% of the already wealthy do).
3. In 2006, Fortune magazine called direct selling, including network marketing, “the best kept secret in the business world” with a 91% growth over the previous 10 years. It has a market of $30 billion in the United States and $100 billion worldwide. That figure is expected to reach 6 billion by 2012.
4. Network marketing has been called a “recession proof industry”.
5. Warren Buffet called his purchase of a network marketing company the best investment he’d ever made.
6. Tom Peters, author of In Search of Excellence, called it the first truly revolutionary marketing shift in the past 50 years.
7. Internet marketing businesses aren’t as impacted by the usual commuter costs (gas and parking) and childcare expenses.
8. Owning your own business creates a number of tax benefits.
9. They’re generally easy to start – if you have a basic language skills and can point, click and follow directions, you have what you need to become successful in the world of online businesses.
10. The Web puts you in control of your financial future – no more depending upon your boss to give you a raise or promotion! The upside potential is great.
Affiliate marketing programs are probably the simplest ways to begin an internet organization, and many of them also provide training per the product that you will be marketing for them.
The problem with the majority of online businesses, however, is that their training is narrow, and often focused only on instructing you about their product (s). Unfortunately, you’ll require more knowledge than that.
One excellent place to start for securing all the rest of the education about internet marketing that you will need is to enroll in the Online Success for Beginners program.
Regardless of the recession, business continues – hundreds of thousands of businesses will launch within the next 12 months. Don’t you want to be among them? Isn’t it really time to leave the 9-5 routine behind you along with all the related job stress?
Carpe Diem! Don’t waste any time, seize the day! This is the time to start a home business .
Risks Threatening Current – or Future – Retirees
Assuming you’re one of the Baby Boomer Generation, you’re likely pondering stopping work – provided that you haven’t already started your retirement. And if you have previously left the 9-5 rat race, you may be wondering when you’re financially able to continue to be retired.
Today’s financial crisis complicates the situation substantially by increasing some significant retirement related risk factors:
1. Average Life Expectancy Has Grown
Current life expectancies are longer than their parents. For example, in 1970, a 60-year old Caucasian male would have had a life expectancy of only 16.2 years; but, by 2008, his life expectancy had climbed to 20 additional years.
So how is the Boomer going be able to afford to pay for those additional 3.8 years? There are only a few realistic responses:
> Accelerate current savings
> Continue to work longer
> Live with with children
> Get by with a reduced quality of life
2. Health Care Costs Keep Rising
Adequately funding one’s medical care programs are some of the most difficult financial activities, largely because health care needs are so individualistic, with requirements varying greatly from one person to another. Long-term care requirements are even harder to predict and arrange adequate funding.
Medical expenses have grown more than 5% (inflation adjusted) for the past 15 years – and that is greater than the growth in family income. Medicare costs are expected to rise at similar rates.
3. Government Actions May Impact Retirement Benefits & Supplemental Programs
It is well known that the expenses of major entitlement programs (e.g., Social Security, Medicare, and Medicaid) are growing faster than other parts of the economy, and some economists challenge the long-term feasibility of these programs because of the cumulative effects of increased longevity, size of the Boomer population, and increasing health care expenses in general.
Moreover, immediate questions concerning ongoing health insurance during retirement, and at what financial levels, are wide-spread in today’s economy – and these questions are further fueled by auto industry, and other, corporate reorganizations.
We are still witnessing a lot of conversation concerning a national health care program – but such debates have been active for decades, with few benefits to show for those efforts. Although President Obama will be leading such efforts this year, most people anticipate Congress to present a lot of opposition.
Many believe that people past age 55 will be protected from reductions in these social programs, but maintaining full coverage for them is a two-edged sword – doing so increases the probability of a new value-added tax, which would ultimately add to the tax burden for retirees.
4. Sometimes One’s Retirement Date is Dictated, and not Totally Up to the Individual
According to a 2004 Health and Retirement Survey (HRS), 37% are forced to retire. This can occur due to poor health or recessions, etc.
5. 401Ks Became 201Ks
Were your savings (including your 401k) devastated with the stock market crash last year? My investments were deeply affected. Many people saw their 401k and other stock market accounts take a 50% hit, which has led many comedians to rename them “201k”. For many people, their 401k was the bulk of their retirement savings, so this stock market crash seiously damaged their retirement plans.
Humpty Dumpty Was No Financial Planner
Not all the news is bad. Luckily, you can repair a broken “Nest Egg”.
You can work longer, semi-retire and take a part-time job, work from home, start your own business, etc.
If you’d like to start an online business, but are hesitant because you’re not an internet expert, one superb starting point for picking up all the knowledge about internet marketing that you will need to be successful is to join the Online Success for Beginners classes.
A study by Butrica, Smith and Steuerle (2006) noted that working just one (1) extra year can improve annual retirement income by 9%, while working a total of five (5) extra years results in an extra 56% annual retirement income.
If you’d like to find out how to generate a second income, so that you can have a comfortable, financially secure retirement, check out Darren Salkeld’s new MaxPro Marketing System and get his FREE Report and FREE Audio describing the age-old secrets of creating wealth.
When Will This Credit Crisis Ease?
They talk about the green shoots of recovery; well I have not seen any, have you? I personally think that it is a form of increase confidence trick; an attempt to make people believe that the worst of this current recession is over.
They, and when I say they I am talking about the Government and business leaders, are no doubt hoping that this new confidence (false as it undoubtedly is) will spur people on to start spending money again; to start buying houses etc. In reality the only way this credit crunch will ease is when the banks start to lend money again, at reasonable interest rates. I am already started to read reports about the ways in which these bankers have returned to their greedy bonus culture? In a way a more important question is why is our Government allowing them to get away with it? There is a real lack of leadership at the moment and it is about time somebody at the top started to crack the whip.
Now I am not some financial whizz kid who thinks he has all of the answers. I am in fact just an average working class guy from the UK who runs a web promotion company and who also has a partnership in a company that offers a professional DVD duplication service. I do however watch and listen in amazement at times when I see what some of the politicians and greedy bankers say – they really are not in the real world – they probably would have absolutely no idea as to the average cost of a pint of milk or loaf of broad – they are complete jokers and a waste of space.
I personally believe that this current credit crisis will last until the end of 2010, at least. I know that this seem rather negative but it is just my opinion on the situation. With a stronger leadership this would no doubt change but while the Labour cronies continue to bicker and squabble what chance have we got? Bring in Vince Cable I say as the new Labour leader!
Recession Indirectly Affects Other Large Industries
five decades, there are many companies that are greatly affected, but go undiscussed~Some industries and small businesses are struggling indirectly because of this nation’s economic recession~The largest recession that U.S. residents and companies have seen in the past 4 decades continues to indirectly affect many industries}. The major discussion has been on the housing market, financing, stock market, and the banking business. Many major U.S. owned companies, that employ millions of Americans, are also being affected by the recent decrease in these major industries.
At the epicenter of the housing market and property value collapse is Phoenix, AZ – one of the hardest hit locations in the United States. Financial assistance applicants are quickly finding out that their home is valued at 20 to 40% less than what it was just two years before. Bank foreclosures are up 150%, and there are some cases of owners abandoning homes.
Just when Americans think they have not been affected by this economic recession, they find out they are incorrect. Looking to keep their finances out of the stock market, many homeowners desire to keep their money in their property and homes. This home improvement loan generally comes from a local bank, credit union, or credit agency. Swimming pool, landscape, and home improvement companies have not had the fortune of getting it’s “would-be” buyers approved for these loans.
The pool and landscape industry in Phoenix has been one of the largest businesses influenced, since financing a swimming pool was the clear choice for over sixty% of pool buyers. If financial assistance is not available, swimming pool and construction companies end up losing the job, or selling a job that is much lower than anticipated. Phoenix pool builders have taken a huge hit, often closing their doors, down-sizing, or diversifying into other markets. By offering a wider range of construction services, such as pool remodels, landscaping, and hardscaping, Intelligent pool companies are generating additional revenue. Some general contracting companies and home remodelers have switched entire industries, trying their hand at completely un-related venues of work. In an attempt to earn extra money, many Phoenix Landscape Contractors are expanding into fields such as water features, flagstone patios, Phoenix Pergolas & Ramadas, and outdoor kitchens.
One Phoenix pool and landscaping company, Unique Landscapes and Custom Pools, has figured out the technique of offering many varying services to potential clients years ago. As Phoenix landscape and pool builders, along with a general contractor license, Unique Companies are able to provide its customers with many facets of residential landscaping and swimming pools. “My company has been able to make things work despite these rough times, luckily we diversified several years ago, and have many different components of swimming pools and landscape services to offer our clients. However, the inability for our serious buyers to get financial assistance or loans has been crippling.”
“It’s difficult to think about all the money that was given to banking industry just a year ago for these construction loans, and now it’s near impossible for our homeowners, who want to buy our products, to get this money” claims business owner Chris Griffin, of Unique Landscapes and Custom Pools in Mesa, AZ. Maybe it’s time for the government to look a little further into some of the struggles of the smaller companies that are greatly affected by this struggling economy. “I don’t see the light at the end of the tunnel yet, but I can tell it’s there….” claims Griffin, “Pool financing in Phoenix is getting a little better”.
I have read various reports in recent days stating that we may well be through the worst of this current recession. Over the last couple of weeks I have been asking my business contacts whether they have started to see any of those green shoots, the famous starting sign of a recovery. Here is what they said:
Out of all of the people that I asked or surveyed for want of a better word only fifteen percent stated that they had seen the first signs that things were starting to improve. I would have preferred it if this percentage had been some what higher. I personally do think that things are starting to slowly improve, with slow being the operative word. This recession has cut quite deep and any wound this deep can not heal overnight.
The most alarming point for me was the large percentage, in fact the majority, of people that stated the situation had become even more severe; so perhaps we are not through the worst thus far.
I am by no means an expert in the field of the economy however I do have a number of business interests including ones where people are able to obtain cheap calls and also with a group of cost reduction consultants. My main expertise however is with helping people to overcome their stuttering speech impediments.
So when can we expect the recovery to really start in earnest? Well this answer is, of course, very difficult to answer and calling the bottom of the market can only ever be guess work. I will however give my opinion, for what it’s worth. I personally think that 2009 will continue to be a tough year, that in 2010 we will start to see that all important recovery and that in 2011 we will see some very strong growth.
The above opinion is given due to what we already know, if there is a lot more bad news out there of which we have not yet been told of then this opinion will no doubt have to be reviewed.
The current recession is causing a definite shift in consumer behaviour. Throughout the boom of the last few years, we have seen very small business adequately competing with the bigger brands. Many of these websites have gone local to global in a very short space of time, thanks to their prices. People were willing to buy products and services from a company or website they’d never heard of, if the price was lower. But business are loosing the battle against the recession every day, many of them most likely leaving customer orders unfulfilled, thus consumer confidence is at an all time low. What does this mean? well it means that all of those bargain hunters are returning to the big brands that they recognise, even if that means spending more money, because they don’t want to take the risk.
Yet at the same time job insecurity and redundancy are causing more and more people to consider starting up their own business and becoming self-employed. Research from Barclays last year showed that there were 98,000 start-ups created in the UK within a three month period, despite the credit crunch. It is by no means the easy option. When you take into account that around 80,000 new businesses failed during the same time period, kind of puts it into perspective doesn’t it!
I think that underestimating your companies branding is as detrimental as not having a website at all. Your logo and identity is the first impression customers have of you. It’s crucial to what people use to judge whether you are trustworthy or not. But it’s so often the case that startup owners put off paying professional logo design in the initial stages. All to often its “Lets see how many customers we can get before we think about branding”.Then they design one themselves in photoshop and thinking that looks fine, load it up to the site. Many new companies unfortunately opt for cheap Vista Print Logos or free clip art to design their brand.
Brands shouldn’t underestimate the importance of their image. You need to look like a professional organisation that’s in it for the long haul.In times when people are worrying about each and every penny they spend, a brand needs to appear stable and constant. New websites need to appear to be much bigger than they actually are to survive. As i have mentioned, consumers are now more then ever going to the big brands for what they need. So basically, these days users care more about who a brand is and less about what they are, a good brand is much more likely to be recommended to friends than one that consumers are less sure about.
So what this means is. Bankruptcy will hit around half small business very early on in their life, usually within two to three years. Experts agree that one of the main reasons for failure is poorly thought out and shoddy marketing. A custom logo design helps you create the right image for this marketing to succeed. So do yourself a favour – start looking at some sample logos in your industry and see what the successful ones have in common. Then get yourself a proper graphic designer to plan and create a great corporate identity that will help you not only stay afloat but truly stand out and succeed.
Have you recently been downsized?
Since then, have you found that it’s difficult to find a new job to replace your old one?
Current Situation
If so, you’re in good company. Since December 2007, the official beginning of this recession, more than 5.7 million jobs have evaporated. According to the Associated Press (AP), after the May 8th release of the April, 2009 unemployment numbers:
- 13.7 million people were unemployed in April, 2009, and that was the largest number since 1948
- 539,000 jobs were lost in April alone
- 8.9% unemployment, but if workers who’ve been laid off and just given up or taken part-time work, are included, that number jumps to 15.8% – the highest since 1994
If you’ve been unemployed for more than a month, you may be feeling frustrated, angry, depressed, or maybe even a little panicky as you watch the pages of the calendar turn, with still no job on the horizon.I’m betting that you’re also worried about some long term issues (e.g., college education, retirement) as well as this immediate crisis.
There are basically three options in this situation:
- Panic
- Keep doing what you’ve been doing (the same things that haven’t yet found you a new job), or
- Try something different
Option 1: Panic
The first option, panic, is entirely counter-productive, and should be avoided at all costs.A little fear is a good thing; it can even help us save our lives in dangerous situations, by engaging the fight or flight response.Unlike a little fear, panic overloads our circuits and degrades our ability to respond to the crisis at hand.
Option 2: Continue Doing What You’ve Been Doing
If doing what you have been doing had been successful for you, you wouldn’t be reading this article right now. If you keep doing what you’ve been doing, you can only expect to get more of the same.
Good people have been unemployed for six months or more in this economy. After diligently answering help wanted ads and sending out countless resumes, what results have they realized?Nothing.
This economy is tough my friends aren’t even getting preliminary callbacks about jobs.
Option 3: Try Something Different
The third option – do something different – seems to be the only plausible solution. With so many options on the table, it is difficult to know where to start?
Have you considered start your own business .
- Take control of your financial security; don’t let others determine whether you have an income or not.
- Don’t let your job keep you from spending quality time with your family and friends.
How would you like to be your own boss for a change! Start your own business!
Home-based businesses account for approximately $427 billion annually and provides many tax benefits, more control over your time, your work, and your financial security. Essentially you’d apply the Law of Large Numbers to your individual situation, similar to the way that insurance companies apply that law to minimize their risks.Insurers mitigate their risk of loss by spreading that risk across thousands, or even millions, of customers.
Starting an online business will let you reach thousands, and millions, of prospects allowing you to spread your recessionary risks across multiple people, regions and countries.If you were to spread you financial risk, like the insurance companies do, you’d have a greater likelihood of a stable income and financial security for your family.while building a luxury lifestyle
The mark of a serious recession is when people start changing their once firmly held opinions of what they couldn’t live without. Research conduced by Pew Research Center of a large number of US residents asked what household appliances and everyday items were being considered a lower priority as a result of the credit crunch. They asked the question “which of these are pretty much a necessity and which are pretty much a luxury you could live without?” in relation to a list of everyday appliances and objects. The list ranged from cars to air conditioners to microwaves to cell phones.Some of the results may surprise you, demonstrating how the credit crunch is forcing us to reconsider what are “must have items” in the home. Owning a microwave became a luxury for 21 percent of people compared with 2006. Having a home or portable air conditioner stopped becoming a luxury for 16 percent of people asked compared to a few years ago. Maybe the most surprising result was the fact that 12% less people considered a TV to be a necessity in the home.The items that didn’t take a hit in the survey were new-age gadgets such as ipods, mobile phones and broadband – these have become the things we can’t do without.
To be honest many of the results don’t surprise me all that much.You only have to ask around to friends and family to see that frugality is becoming key as we live in fear of rising prices, reduncancies and difficulties in obtaining credit. It seems like most people’s attitude is “only buy what you absolutely need”. Having a ceiling fan instead of air conditioning during the hot summer we have coming ahead. Making do for another year with that washing machine you’ve been meaning to replace. Not driving your car as much to cut back on fuel costs and mechanic bills. I think we can all live with these kinds of compromises. The worry playing on my and many other people’s minds, however, is that things will get a lot worse, and it won’t be something we can budget our way out of. Maybe at that point people will start to think about all the billions we pay in taxes that gets spent on war, bank buyouts and corporate kickbacks, and start to demand some real change in our society.
It might be all of the financial troubles here in the UK. But more of us are looking into investing in a new second home that they can rent out and can use for cheaper holidays. That’s not enough for some people, who have decided to break free from the UK completely and buy property abroad in an attempt to seek out an easier and calmer lifestyle.
Whatever age you may be, you can still escape the woes of the UK by choosing to go allow this road, but just like in the UK, you will have to protect your new home. Finding a company that will give cost effective cover for second home insurance and overseas property insurance isn’t as easy and can often be more costly than you might imagine.
Looking for a decent company to insure your second home can become an expensive and tiring task. The main reason for this is because insurance companies are aware that second homes can be left empty for extended periods of time and in this time the home can suffer from weather damage, especially during Winter. Even if you are able to overcome those problems, it can still become stressful when the property is damaged by the current occupiers.
If you do obtain cover you will probably find that most holiday home or buy to let insurance policies have restrictions in the small print. By not complying with every single requirement, you can end up with a whole load of problems by finding your insurance is not valid when it comes to claiming. There are some providers who understand that most holiday home and second home owners only use their property occasionally.
Because of this reason, there are some policies available that won’t end up leaving you with no water or electricity as they have no restrictions or exclusions in the small print. Should you choose to let your second home, those same policies also incorporate £5m public liability insurance, loss of rental income, temporary accommodation expenses and protection for your contents against damage caused by guests.
The deeper we get into this recession the more businesses and organizations are having to be clever with their finances to avoid going bust. Inefficient accounting is a common occurence which can lead to wastage in terms of fixed asset expenses. By making sure you have a good handle on the fixed assets your organization owns you can identify these leaks, put a stop to them, and save a surprising amount at the end of the tax year.
What is a fixed asset?
To begin, it’s important to understand what I mean by a fixed asset. Any business owns two different types of assets. Tangible or fixed assets are things like equipment, machinery, computers, buildings or land. Essentially they are physical objects that have value. The assets you can’t touch are called, unsurprisingly, intangible assets – such as trademarks or patents. It is tangible assets that I’m writing about in this piece.
Why should I care about tangible assets?
Well, for starters, recording your fixed assets is a legal requirement on your accounting records. If you don’t know about them you could get in trouble. More to the point, the more you know about them, the more money you could save. By this I mean knowing how much they’re worth, calculating depreciation, and knowing where they are. In a sense asset tracking is a way for a business faced with financial hardship to pull cost savings ‘out of thin air’.
So exactly how are you supposed to manage your fixed assets?
Well first of all you need to make a record of each of your fixed assets. Now this part is probably something you’ve taken care of already, seeing as it’s a legal requirement and all. Most commonly this is recorded on a humble spreadsheet, but increasingly savvy organisations are using more sophisticated asset management software. The reason is that you really need to go much further than just recording assets – you need to be able to keep track of them as your organization grows and develops. By tracking I mean keeping a constant record of its location, movements, state of repair, value, etc. Now when you’re a mom and pop business working out of your living room that’s a case of glancing round the room and scribbling on a Post-It note.However this task becomes more difficult when you’re talking about medium to large organizations. And this is where dedicated asset management software really comes into its own. With it you are able to take care of the whole process with ease – auditing, creating an asset register, tracking, maintenance, and accounting. And most importantly, if you go with a decent system it will tell you exactly where your business can save big bucks. The real question is, how can you afford not to invest in it.