3 Reasons Recurring Revenue is Important to Your Business

The recurring revenue business model is one that many businesses overlook. This type of model often involves a subscription service. In a time when every dollar matters, receiving continuous payments from clients has several benefits.

Stable Cash Flow Business can be going well one month and barely staying afloat another month.

By setting up a recurring flow of revenue, your business becomes a lot more financially stable. Each customer on the subscription plan is billed according to an agreed upon amount. Customer payments can be set up as automatic payments.

This money keeps business operations on track. Recurring payments lowers the risk of sudden economic downturns. Get Paid for Completed Work Doing the work once and getting paid for it repeatedly is certainly attractive for businesses in all industries.

Customers pay to receive a particular service that may involve delivering work that has already been partially or completely done. The customer pays for upkeep and maintenance.

If ongoing maintenance requires relatively little effort, it costs the company very little to earn a nice profit. Marketing and sales is geared towards acquiring new customers to add to the subscription plan.

Increase Business Value Companies that adapt a good recurring revenue model are more likely to attract even more business. Each customer that is added into the model helps to grow the company, which makes the business look like a winner.

Many hugely successful companies use this very same model. Visit ServiceSource.com for more information about how to automatically boost your monthly revenue stream.

How Important it is to have a Financial Qualification to Succeed?

So the basic question is how important it is to have finance and accounting courses to succeed? Is getting MBA degree a must for operating a business? Obtaining an M.B.A from a very highly acclaimed university is definitely not a prerequisite for operating lucrative small business; however, acquiring some fundamental accounting skills and mastering how to utilize accounting software can significantly aid save a small business owner a considerable amount of money as well as stress or frustration.

Even though the business owner possesses the resources to hire an accountant, it is imperative to consider that a lack of accounting knowledge could enable a deceitful accountant to commit trickery or deception without being caught for quite some time.

Moreover, monitoring the money flows and obtaining a good foundation in accounting creates a more pleasant business sense primarily for owners of both big and small enterprises. In several ultimately failed businesses, failing to monitor the money usually leads to the firm’s money slowly or abruptly disappearing. So, mastering the basic bookkeeping is a great place to begin with.

Countless of small enterprises have failed because of lack of proper bookkeeping. In the same way, one of the most essential elements shared by nearly all profitable enterprises of any size is securing accurate records which are in point of fact also deemed as a legitimate requirement.

Mastering financial statements and composing a business plan are other valuable factors. Creating a financial plan for an enterprise can be daunting for various business people. Having deeper knowledge and understanding of your firm’s financial statements can be precious in operating any size business. There are a total of four major types of a business’ financial statements and these are the income statement, balance sheet, cash flow statement and statement of retained earnings. Evidently, taking finance and accounting course can be remarkably useful in obtaining the knowledge to create a business plan and in learning the specifics of every financial statement.

Aside from these, it is also invaluable to master how to select and sustain accounting system. Enterprises commonly utilize either accrual method or cash method for accounting.  The accrual method refers to the one that records income during the time a sale takes place, instead of when the payment is received. Afterwards, expenses are listed after the product is received rather than when the product was already paid for. This method is typically utilized for bigger enterprises which utilize invoices and sustain a huge inventory. Meanwhile, in cash method for accounting, the income and expenses are accounted as they are made. Furthermore, this the type of accounting method most regularly utilized in small enterprises.

Essentially, a basic finance and accounting course can be ultimately helpful to any business owner; particularly of the entrepreneur has only very little or no accounting experience at all. Without question, the knowledge acquired from a basic finance and accounting course can make a big difference in terms of efficiency and most especially in profitability.

More than that, taking a course in finance and accounting can now be accomplished online; that is if you aspire to study right at the comfort of your own home.  There are also plenty of community colleges and business schools that offer accounting courses in the event that you have the time and wish to study in a more academic environment.

Explaining what is 3PL

3PL stands for Third Party Logistics.  A 3PL company or firm manages and provides solutions for all the logistics requirements of an organization.  The term 3PL is generally unfamiliar to people who are new to the logistics industry.  This is not so surprising because every industry has its own set of buzz words.

3PL can be traced back as early as 1970’s as companies were outsourcing more and more logistics services to 3rd parties.  Over time, 3PL service providers have expanded their services to cover the specific needs of various companies.  Today, most 3PL service providers offer a range of transport options, warehousing, inventory management and systems integration.  Technology has become the core competitive advantage of the third party logistics service providers.

Reasons to use 3PL provider

There are several advantages a company can gain by using a 3PL.  Basically, a 3PL offers their services to a large number of companies. In doing so, they are able to combine the total requirements of all these companies which increases their purchasing power. Third party logistics providers have a wide resource network that gives advantages over in-house supply chains. Businesses can take advantage of 3PLs relationships and volume discounts that will result in lower overhead cost and fast service.

Businesses can save time and money by using a 3PL provider because it defeats the need to invest in warehouse space, transportation, technology, and staff to do the packing and other logistics process.  3PL providers can save businesses from costly mistakes, and can help build a multi-location distribution network with lower risk and higher return.

3PLs are well informed of industry best practices, and stay updated with the latest improvements in technology.  3PL services will give you peace of mind knowing that your logistics needs are being taken cared of dependable and qualified professionals.

For businesses that are seasonal in nature, 3PL providers have the capacity to scale warehousing space, labor, and transportation according to company’s inventory needs to provide full support during high months of your business while cutting back during slack months.

3PL experts like National Products Fulfilment (http://www.npfulfilment.com.au/) will see to it that your needs are met by using the most agile, most efficient, and cost effective methods.  Third Party Logistics providers can boost profits, lower wait times, and improve customer service. It is quite common for companies to save between 30% to 50% of their overall logistics costs by outsourcing their requirements to a good 3pl service provider.

Another benefit that is seldom mentioned but very important is that many 3PL’s will offer you service guarantees and SLA’s, which give you that much needed confidence and peace of mind knowing that the 3PL will take just as much care and responsibility when you outsource with them.


How Useful is Credit Card Insurance, Should you Take It?

Most credit card holders are normally advised by their providers to consider having credit insurance as well.  It is also quite evident that most people do not know the importance of having the credit card insurance hence a good number of holders reject it  since according to them, it is not a need. People also think credit card insurance are free services to enjoy, this is not true, this comes with a price. (Related  – find free ads in India)

Due to different lifestyles that many people experience, there are also different insurance needs that one can obtain.  Knowing the different kinds of insurance that are protecting the credit cards, it would enable one to choose the right one that eventually will be a better way of saving money.

There are different forms of credit insurance including the credit life insurance, credit disability insurance, involuntary unemployment credit insurance as well as credit property insurance among many others. Credit card insurance is very useful to almost everyone that has it as well as those that are planning to have it. It ensures that ones credit is fully settled at his death but normally, in this case, the beneficiary is the owing company.

Moreover, the insurance is very useful as it enables an individual who experiences an accident and becomes disabled to use his credit card.  Moreover, it assists unemployment individual to acquire credit card since it is issues based on the insurance.

Credit card insurance is very useful that is why before one acquires it he must consider understanding it fully in relation to the necessary policies.  In most cases, one is only advised to apply the insurance after applying for the credit card.

After getting it, there are increased chances of getting the credit card.  With credit cards one can purchase goods from any store that accepts it without having to pay them using cash.  When they are used well without impulse buying, it becomes one of the ways of saving money.

One can consider his recent earning as well as his future needs which determines which policy to go for when applying for credit card insurance.  In case one already has a life insurance as well as he disability coverage, then these policies will be able to assist one in covering for the insurance.

Insurance policies that cover for credit accounts are very important because they are crucially useful during death times.  One should also keep on mind the importance of using the credit cards especially in Christmas shopping as well as shopping for other items.

One can also have as many as more than just a card which again the policies can cover all the accounts. With credits cards, one can solve emergency cases whereby the child is sick and the hospital allows the use of credit cards, which are only based on insurance.This will enable one to get treatment without using cash.

Credit card insurance has helped many people across the world and it would continue doing the same because it has been helpful to many needy individuals who seemed to be in need of the cards but were unable to acquire them due to unemployment. With insurance, one is sure that even if he dies tomorrow, his loved ones will not be the ones paying for the credit card debt hence one is always having a peaceful minded with this insurance.

Generally, as many people would say, that credit cards are very useful because one can purchase as many goods as possible without using cash. But, credit cards can easily lead to impulse buying which in the long run, one can never opt for saving money. Moreover, this affects adversely the monthly payments of the credit bills.

Best Annuity Rates: Finding Hidden Value In Annuities

It is not unusual to start thinking seriously about retirement when you reach age 55. It used to be a fairly straight forward process. If you had a 401(k) through your employer, you simply began to shave off contributions from your paycheck, selected the stocks or mutual fund you wanted to hold in your portfolio and watched as the value shot up.

Then the Great Recession hit us like a tsunami. Just as the invading waters come from nowhere, tear everything away and pour it out to sea, so the value in our 401(k) was sent adrift. Those once-full reservoirs intended to float our retirement boat turned to swamps. It was not unusual for portfolios that had reached the half-million dollar mark to evaporate almost overnight leaving behind insufficient funds to survive retirement—let alone enjoy it.

Even a half-million dollar pension fund can look small when you actually work out the amount of money you need to retire (recommended reading here).

It’s not just in the US that annuity rates have tumbled, UK annuity rates have dwindled also.

Few of us had annuities in our retirement portfolio. Those who did were older and perhaps raised by parents who had gone through the Great Depression. While we listened to Wall Street and held onto our stock-laden portfolios hoping for the Market to rebound and make us rich again, they stashed their cash in annuities at the best annuity rates they could find.

Most of us laughed when they proudly reported that their best annuity rates ran as high as 4% with a five year hold. We had seen growth in double digits for several years and weren’t about to settle for 4%. Even our financial advisors warned us about being caught in a 3% fixed rate cycle when inflation is running at 6%. And then there were the surrender charges we would have to pay if we tried to wiggle out of the strangle hold annuities would have on our money.

Even the best annuity rates—some as high as 6%–would be bad if the Market rebounded and we wanted to withdraw our cash to pour back into stock or mutual funds. We would encounter various charges and taxes that would rob any meager returns annuities have to offer;

  • Surrender charges – Try to withdraw money from your annuity during the 6 to 8 year holding period and Bam! You get hit with a surrender charge as high as 10% plus a service charge for the paperwork required to untangle your money from the investments already made by the Annuity Fund manager.

Yes. We all thought those old-timers were kind of foolish for stashing their retirement cash into annuities. However, our laughter turned to chagrin when they pointed out the hidden value in annuities that we had missed.

Even at annuity rates as low as 2%, the $250-thousand they placed into the hands of Annuity Fund managers would still be worth $250-thousand when they withdrew them at the end of the holding period. Plus they would have gained 2% in value. Even if they had to withdraw early, the worst case surrender fee would pale in comparison to what we had lost in the Stock Market during the Great Recession.



E*trade Australia Review – Is it the best?

With over 4,000 dedicated employees and an increasingly substantial 600 million dollars per year made in net income, the online stock brokerage hub E*Trade is certainly sitting pretty as the go-to of its market. Furthermore, in most cases, if you were to ask a friend, co-worker, financial advisor, or the like, which website they use to handle all of their investment needs, E*Trade would undoubtedly be high on their list, if not at the very top.

While E*Trade Australia is a branch off of the E*Trade tree, it loses absolutely nothing by being an extension; the website comes with all of the same features, advancements, customer service, tools, security, and solid investment opportunities.

10 Simple Reasons to Sign-Up with E*Trade Australia

  1. 1.       Sign-Up is Completely Free: Customers of E*Trade pay only when they trade.
  2. 2.       New Investor Guidance Provided: New investors can take advantage of E*Trade’s “New Investor Hotline”, as well as a plethora of seminars, free product trials, and tutorials.
  3. 3.       Leading Research Available: Customers can take advantage of E*Trade Australia’s vast collection of leading, independent research houses; the largest within the Australian market.
  4. 4.       Top-of-the-Line Trading Technology: “Smart Alerts”, “Conditional Orders”, and E*Trade’s infamous trading platform “E*Trade Pro”.
  5. 5.       E*Trade is an Award-Winning Online Brokerage: AFR Smart Investor Blue Ribbon Award “Fully Featured Online Broker for 2010”, named “Best Feature-Packed Online Broker” by Money magazine for four consecutive years, “Best Innovative Feature” (Free Tax Tools) by Money magazine’s “Best of the Best 2010”, and “Best Innovative Feature” again by Money magazine in 2011 for Global Shares.
  6. 6.       Dedicated Service Team: From 8am-8pm, Monday through Friday, E*Trade customers are provided dedicated assistance from some of Australia’s leading client service consultants.
  7. 7.       Choose from Numerous Investment Opportunities: Exchange Traded Funds (ETFs), Initial Public Offerings (IPOs), Managed Funds, Options, the SharePack, and Warrants.
  8. 8.       Sharable Investment Loans: As a means to assist its customers in wealth-creation and to provide a portfolio leveraging opportunity, E*Trade offers its “ANZ E*Trade Share Investment Loan”.
  9. 9.       Seamless Access from ANZ Direct: Customers of ANZ Internet Banking enjoy direct access to the E*Trade platform; simplifying their daily investment management.
  10. 10.   Customers Stock Up on Qantas Frequent Flyer Points: As you trade, E*Trade rewards you with Qantas Frequest Flyer Points (if you’re a member); E*Trade Australia is currently the only online trading service to offer such a substantial perk.

Website Features Reviewed – 5 out of 5 Points System

  • Featured Tools – 4 out of 5 Points

With fully customizable trading and market platforms, asset allocation tools, account performance monitors, income estimators, risk estimators, and more, E*Trade offers the investor just about everything they need to succeed. Typically, the only complaint voiced by E*Trade customers is that some of the most valuable tools are not free, but an extra expense. Some reviews deduct more points for this, but an overall free service of this stature, offering the best of the best, has to make money in some fashion in order to do so.

  • Ease of Site Layout – 5 out of 5 Points

The E*Trade Australia website is, in many ways, easier to maneuver than the American E*Trade Website, simply because less digging is necessary. Both websites offer those who are already members a tremendous amount of ease, but E*Trade Australia offers the potential member more ease in getting answers and getting set-up.

  • Priceless Customer Service – 5 out of 5 Points

How often are you patched through to a customer service department and feel as though the representative you’re speaking to knows less than you do about their own product? This is not the case with the E*Trade Australia Customer Service department; they’re delightfully friendly, dedicated, knowledgeable in their product, and are eager to help.

  • Security You Need – 5 out of 5 Points

Here’s the thing that separates E*Trade from its competitors in the best possible way – SecurID; an incredibly substantial secondary security measure offered free to all members, no questions asked. With this system in place, you can lay your head down on your pillow at night knowing that your account is safe, protected, and always in your possession alone.

  • Fee Structure – 3 out of 5 Points

Anything that’s truly great has to have at least one caveat and in the case of E*Trade, it’s certainly not a deal breaker. E*Trade’s commission fee structure is a little more substantial than other online discount brokerage websites, but the services they offer more than make up for it – honestly, I doubt you’ll pay much attention to it at all once you fall head-over-heals for the service at large.


Make Big Money trading Binary Options

Any time of the day or night, on any weekday, anywhere in the world, you will find people hovering over their computer screens trading Binary Options & Forex, i.e. buying and selling foreign exchange currencies in what is the largest market on the globe by a factor of ten.  More than $3 trillion changes hands every day in this market.

If you have ever wondered what the world of Digital Options is about and whether you should learn more about it, then read further. You’ll learn a lot, and before you know it you’ll be opening an account and buying and selling currencies from countries all over the world. Of course, such a highly volatile market is not for everyone, but it is something that everyone should know about since it is such an important part of the world economy.

Options Trading Offers Viable Opportunities

The world of Binary Options is exciting and moves at the speed of light. Opportunities abound to make and lose money within minutes, so it is definitely not a pastime for the faint of heart. One thing is for sure, if you trade on the FX you will never be bored. Ten times more trading activity occurs in this market than any other market.

It’s a high stakes environment, although you can get into it for a surprisingly small amount of money.

The basic concepts of online options trading are simple. Before you do trade you should make some effort to understand the global economy that lies at the basis of all foreign currency exchanges.

First, let’s talk about what is involved in placing a trade. You can trade on virtually any of the world’s currencies, whether it’s the Euro, the Yen, the Dollar (in its various U.S., Australian and Canadian guises) or the British Pound. The pairs different currencies in something called “twins,” and which might include U.S. Dollar/Swiss Franc or GBP/JPY.

The engine driving the foreign exchange market is made up of the international banks and corporations, although the individuals (like you) are able to participate in it because currency brokers and dealers offer contracts that individuals can take part in. Most traders who offer options for trading FX specialize in such trading, although that is not always the case.

1)      Find a Binary Options Brokerage. Many are out there. The best way to choose one is to do some comparison shopping and due diligence. Find out how much a minimum deposit is, how large trades are and how does the trading system work. Some trading platforms offer downloadable software, while some are based on the web. It’s up to you.

2)      Open a trading account and deposit the initial amount of cash. Fund it only with as much money as you are prepared to lose comfortably. If you are starting a new account, pick one that allows 10,000 unit trades and which have a minimum account balance of up to $500.

3)      Become familiar with the trading program you chose. As mentioned before, online options trading involves the relative value of currency pairs. Each pair has a bid and ask price which alters as the market changes. Traders sell at the bid and purchase at the ask.

4)      Pick currency pairs that you know something about and that you think will move in a certain direction. Traders spend a lot of time poring over financial news and reading about factors that can affect currency values. Binary Option traders use a currency pair no matter which currency you think will go up.

5)      You place an FX order by pick Bid/Sell or Ask/Buy on the screen of the trading platform. The margin requirement is how much money you must have in your account to make an order.


How Binary Options can help limit your Forex Risks.

The world of Forex is fraught with danger and risk. The volatile nature of the markets means that they are often very unpredictable and, as a result, people lose and gain extremely large sums of money in an instant.

The risks associated with Forex are inherent and this means that no matter how much you plan, prepare and research, you’ll never be able to bypass all risks.

Despite this, there are several tactics that you can use in order to minimize these risks and maximize your chances of turning a profit. One of these ways is through something known as Binary Options…

What are Binary Options?

Put simply, when using binary options to trade, the trader has to make a directional decision: will the value of the currency go up or down? This option is taken over a period of time that ranges from 30 seconds to one year.

The timescale is then known as ‘the session’ and at the end of the session you can either win, lose or breakeven. Binary Options trading is always for a ‘fixed return’ so, whether the commodity you select goes up slightly or massively, you’ll receive the same amount.

Let’s Have an Example:

So, if you think that the value of oil would increase over a 4 hour period and your wager is proved correct you’ll receive a fixed amount. This amount is the same whether the price of oil goes up 1GBP or 30GBP per barrel. Often, this means that potential gains are not as high as in other markets but, crucially, potential losses are also reduced.

This means that if the value of oil would have dropped during the session, the trader would have lost the entire amount of their investment no matter what the circumstances. This is one of the main advantages of Binary Options trading as it means that you do not lose more than your investment amount like you would do using other traditional trading options.

Binary Options Represent and Up and Coming Market:

The ‘fixed risk’ element of Binary Options has seen them become increasingly popular as a trading option. Binary Options are far simpler to understand than traditional trading options and, if you’re a beginner who is considering venturing into the world of Forex, they can be a great starting point because of this simplicity.

 There are only Three Choices to Make:

So, if you’re trading using Binary Options, you only have three things to decide:

  1. What Asset you’d like to trade
  2. Whether its price will rise or fall
  3. What period of time you’d like to wager over

To conclude Binary Options do not eliminate the inherent risks associated with Forex, but they can certainly lower these risks as they offer fixed losses and fixed profits. So, if you’re thinking of venturing into the world of Forex, consider using Binary Options to begin with as they’re much simpler to understand than other options.

How Much Home Loan You Can Afford

As you consider applying for home loan, it is prudent that you consider personal finances. The amount of money that you earn when compared against what you owe others will be used to establish what can be lent to you.

This is crucial because houses cost differently and you could select the one you can afford. Here is how to establish the amount of home loan you can afford.

Establish what is your monthly income

It is important that you establish the total monthly income. This should include your regular sources as well as recurring returns that you can articulately document.

Remember that if this income is not reflected on the tax returns you make every month, it cannot be used to assist you in qualifying for a loan. Some unearned sources such as lottery payoffs and alimony should also be included in the gross income.

Make sure to also include assets that produce income to you such as stocks and even real estates because they can articulately be estimated and help arrive at a figure you can comfortably repay. If you are unsure about the specific situation, it is prudent that you consult a loan officer to assist you reviewing the loan rules.

Establish your monthly debt

This should include all the obligations that you are liable to in a month. They involve installment loans, credit cards, child support, personal debt or other obligations you meet every month.  If you have a revolving obligation such as credit card, take the minimum payment you make every month for the sake of this calculation.

If you have installment obligation, adopt the latest monthly payment to establish the debt load. It is important to note that you do not have to include any debt that is scheduled for completion in less than six months from the time of application. You could use the home affordability calculator to know how much you can afford.

What lenders look for

Lenders are in business and will only want to give you what will not over load you. Though many home lending institutions hold varying formulas for determining what they can give you, here are the numbers and how they look at them.

Your monthly housing obligations which include monthly insurance and taxes must not exceed 28% of the entire monthly income. If you are unsure of what insurance and tax expenses are going to be, estimate them at 15%. The remaining amount could be used for interest and principal repayment.

It is also important to note that the proposal you give for the housing expenses on a monthly basis and the entire amount cannot go beyond 36% of the total income. If it goes past 36%, your loan is mainly considered beyond what lenders will be willing to approve.

There are exceptions to this. Based on your individual status, the 28% and 36% could be overlooked. For example, if you can be able to purchase the house while making less than 80% borrowing for the entire house value. This means that you should be able to make a large down payment.

In addition, the 28% and 36% rule can be overlooked if a wealthy person is willing to act as a cosigner for you. This is because if at some point you might be unable to proceed with repayment, they can comfortably guarantee effective completion.

Look for the appropriate lender

The amount of house loan you can afford is ultimately dependent on the lender you go to. There exist hundreds of programs that can provide you with house loans in the market. Carefully review the terms of several lenders and identify the one with the lowest offer.

Make sure to carefully establish whether there are hidden charges. It is always advisable to engage a financial consultant to identify the best lender.

It is through this process that you can identify how much home loan you can afford.

Mortgage Loans – What Fun

A new home can be exciting and fun to find, but getting a loan is usually not.  It’s not like you can apply for pay day loans on the phone to cover the cost.  Here are a few ways to make sure you get your money in order for the home of your dreams.

Determine Your Budget

There are many rules of thumb when it comes to what you can afford.  Why stretch yourself more than necessary?  Depending on where you live, you can figure out what monthly payment you can easily afford and whether you’d be comfortable with a 15 year or 30 year loan term.  Then you can just use an online calculator to determine what your general loan amount would be based on that.  Or see what 2-4 year’s salary would amount to in your area.  In the end, just make sure you don’t get a monthly payment more than you could afford even if you had to switch jobs.

Shop Around for the Best Deal

Once you know what you can afford, you can start looking for the best interest rate.  The shorter the loan term, the lower the rate you can get.  Make a list of your requirements and then call around or go online to get multiple quotes.  If you have a solid credit score and know what you need, you can find a fair quote pretty quickly.

The paperwork is never fun though.  Make sure that you read all of the quotes thoroughly.  Some terms seem great until something is off in the fine print.  Read carefully.

Make Sure You Are Comfortable

No matter which quote seems the best, make sure their terms are okay for you.  You will want to make sure there are no pre-payment penalties and that you are getting every discount you can.  If you or your spouse is a teacher or police officer, you may be entitled to an even lower rate.  If you come across the deal with the loan terms you need, the rate that you want, and they will pre-qualify you so you can make real offers on the home you end up choosing, you may have found your deal.  Just follow your instincts.

In the end, finding the right mortgage loan is about finding the most balanced deal for yourself.  Good luck!

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