Mark-Gwilliam.com
Mark Gwilliam
International business consultant and business coach
Posted By Mark on October 28th, 2010

This article illustrates how enterprise wide risk management has evolved over the last few years and emphasises how organisations can benefit from adopting it.

 

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3 Incredibly Simple, but Outrageously Powerful Keys To Guaranteeing Your Email Messages Are Read

Posted By Mark on December 12th, 2007

By Jimmy D. Brown  

There’s nothing that comes close to its power in online marketing. 

In fact, many of the most critical elements of eBusiness are tied to it:  joint ventures, newsletter publishing, automated follow-up, article distribution, free reports, autoresponder messages and eCourses, networking… the list could go on and on. 

Of course, I am referring to EMAIL MARKETING.  It is impossible to be successful online without some form of marketing via email.   

Nothing else can boost your business like a good list and an understanding of how to use it. 

You can *literally* send a mailing in the morning and earn several thousand dollars by the end of the day with email marketing. 

What I want to share with you in today’s lesson is how to increase your email marketing leads, sales and profits.  So, let’s get at it… 

–> Develop an attention-grabbing subject line. 

Russell Crowe would have never won an Academy Award for Gladiator if no one had watched the movie.  Britney Spears wouldn’t have gone quadruple platinum with her latest CD if no one listened to her music. 

And you ain’t gonna earn a single penny in profits from your email marketing if folks don’t read the message you send. 

It’s one thing to send an email out to 50,000 prospects, it’s another thing to get any of them to read it. 

And whether or not you need to start writing your Oscar acceptance speech depends upon how well you craft the “subject” line of your email promotion message. 

There are three keys to writing subject lines that are so compelling that the recipient is practically forced to click and open your email. 

1. Personal. There is something both attention-grabbing and exciting about seeing your name in the subject line of an email. 

For one thing, we just love to see our own names.  Nothing grabs our attention quicker than something that is specifically about us or for us.  

And, for another, personalization *typically* means it isn’t SPAM.  While some spammers do have access to databases with our names, for the most part their lists are built by harvesting emails. 

So, when we see our name in the subject line, we immediately are drawn to it… 

“Jimmy, here is the information you requested”“Jimmy, I’d like to give you a free copy”“Jimmy, did you forget about this?” 

Almost every good autoresponder or email distribution system will have a “personalization” feature that will allow you to automatically insert your prospect’s name into your email messages when sending your mailings.  It works like this… 

A. Person joins your list through a subscription form, which captures their name and email address. 

B. You insert a predetermined code (like  ) that your autoresponder or mailing system provides you, into the email message. 

C. The system automatically converts that tag  into the actual recipient’s name before delivering the email. 

Voila – you’ve got personalized emails.  You can generally use these personalization features in both your SUBJECT line of the email and the BODY of the actual email message itself. 

An additional attention-grabbing feature to the ‘ol subject line is to TARGET your audience.   Of course, you will *always* want to send your emails to a targeted audience.  I.E. Don’t send your Wrestling email to a homemakers’ list. :o ) 

For example:  I recently sent a mailing out to a smaller list I have of folks who are interested in reprint rights to products.  I had made reprint rights available to my new product, and I wanted to let them know about the licenses.  Here are some sample subject lines that I might have used… 

“New reprint rights released today…”“Reprint rights are available…”“Sell this new product and keep every penny”  

You may receive 500 emails a day, but if you are interested in reprint rights (and you would be, or you wouldn’t be on that list) then this particular subject line is going to stand out when you download your emails. 

When you combine personalization AND targeted audience, then you have a very compelling subject line… 

“Jimmy, new reprint rights released today…”“Jimmy, reprint rights are available…”“Jimmy, sell this new product and keep every penny” 

That’s an email I’ll read every time. :o ) 

2. Powerful. Another key to writing an email subject line that entices the reader to take a look at your message is to use “power words.” 

A “power word” is a word that appeals to the senses.  It’s been shown over and over that we do not buy based on logic, but rather on emotion.  Email marketing works on that same premise.  

A few “power words” include:  Free, New, Exclusive, Amazing, Fast, Results, Guaranteed, Unlimited, Step-by-Step, Overnight, etc. 

Etc. means “and so on.”  Don’t put “etc.” in your subject line. That’s not a power word. :o ) 

“Power words” are strong motivators for reading further.  Why?  Because they trigger our emotions.  They create curiosity.  They are compelling.  

So, use them. 

— Sidebar —  

Since I’ve mentioned something you SHOULD include in your subject line, let me also mention something that you SHOULD NOT use.   

Avoid two things like you avoid an angry rattlesnake… hype and in-your-face symbols.  

Don’t make outlandish claims like “Earn $50,000 overnight.”  If it isn’t believable, then folks will simply delete your email without ever reading it. 

And for goodness sake, don’t use “in-your-face” symbols!!!!!!! No one reads *****URGENT******* or (((((Read Now))))) or @@@Newsflash@@@ 

Kind of gets the same response as that obnoxious alarm clock at five in the morning. 

In other words, it’s a turn off! :o ) 

— End of Sidebar —  

Another “type” of power words is a DEADLINE:  24 hours only, next 3 days, only 5 will be accepted, the first 10, etc. 

Power words, especially the word “FREE” are particularly effective in getting people to read your email.  Combine a power word with a deadline and you’ve got a winner. 

3. Promising.  The third key is to present a desirable result.  Your subject line must make a promise.  It must inform the reader, in that split-second that they view it, that there is something that awaits them if they read your email.  

And that something must be desirable.  It must be something that the reader does not want to miss out on.  It must appeal to the emotions and pull the reader to the edge of their seat like they were waiting for the climax of a really good movie. 

Your subject line should create expectation.  

Understand this:  folks don’t buy products because they want your product… they buy products because they want the result of your product.  We buy exercise equipment because we want to look good. We buy candy bars because we like the taste.  And we visit the dentist because we ate too many candy bars. :o ) 

We revolve around results.  We work because we want the paycheck.  We drive our vehicles because we want to get somewhere.  We play golf because we enjoy it.  We are a results-driven society. 

By creating an email subject line that promises results you create expectation.  Look at the difference between these two subject lines… 

“Free 7-day eCourse released today…”“Free 7-day eCourse you can obtain in 5 minutes…” 

Both have a power word.  Both are fairly interesting. But… 

…which one creates expectation?  The second one makes a promise… I can have it in 5 minutes! 

This is one of the biggest keys in email marketing, and yet is often overlooked. It amazes me how many ezine publishers, for example, have this subject line… 

“Bob’s Newsletter, Issue 212″ 

Whew, hold me back.  I can’t wait to read that. :o ) 

Sure, some folks will read it anyway — especially if you have a loyal readership who knows your stuff is first rate. 

But, I don’t care WHO you are, you will ALWAYS have better results with a subject line that creates expectation. 

You can apply these three keys, “Personal, Powerful and Promising” to any form of email marketing you use… autoresponders, newsletters, free reports, solo mailings, joint venture offers, virtually anything to do with email marketing. 

Get this right and it will be time to start working on the ‘ol Academy Awards acceptance speech for your Best Email Oscar. :o ) …………………….Ready to learn more from Jimmy D. Brown about getting your subscribers to open, read and act upon the messages you send them? Then grab your copy of Subject Line Secrets today >>  HERE  <<.  Not only will you find out which words trigger your readers to click on your emails, you will also get 20 proven templates you can start using right away.…………………….

Auto-responder

Posted By Mark on December 7th, 2007

The concept of the follow up autoresponder revolutionized Internet Marketing. Now, “Auto Message Setup” promises to bring the field an even greater degree of efficiency.

This recent innovation lets experienced marketers painlessly transfer marketing know-how to their entire downlines. A marketer can now provide each of his downline representatives with a follow up autoresponse system that is already packaged with the marketer’s pre-written messages.

The result? Just a few minutes of work on the part of an experienced marketer, and each of his reps is set up with the same tried and true marketing messages.

Case Study: Marketer Matt and the New Breed

For example, take a look at the case of a fictional network marketer named Matt M:

For years, Matt has been successfully marketing All Natural Pharmaceuticals using a follow up autoresponder. In fact, much of his success can be attributed to the set of seven messages e-mailed to all of his potential customers. Matt has carefully crafted those messages over the years, and they’re really great.

Recently, Matt has been trying to pass what he’s learned along to his downline representatives. He explains his marketing principles over the phone, and he knows that several of his reps pass his follow up messages around amongst themselves.

However, Matt finds that his pearls of wisdom rarely survive this ‘telling and retelling’ intact. He knows his reps aren’t getting anywhere near what they could out of his knowledge. He wishes there were a way to harness today’s technology, and put it to use for the greater good of his downline…

Enter Auto Message Setup

Using an Auto Message Setup system, Matt’s downline reps can order their own follow up autoresponse accounts that are already packaged with Matt’s pre-written messages. They can reap the fruits of Matt’s experience with ease.

Each rep will customize Matt’s messages for himself by logging in to his new follow up autoresponder account, and entering his own contact information.

Here is Matt’s original autoresponse message:

Hi LEAD NAME,Thanks for stopping by the All Natural Pharmaceuticals web site today! We hope you come back soon!Best Regards, Matt M.
matt@all-natural-pharma.com 918 Awl St.
Natural, PA 22314

Notice that the message greeting uses a variable, (LEAD NAME). The variable ensures that each of Matt’s leads will receive a message personalized with his or her own name. Notice, also, that Matt’s name and address are at the end of the message.

Case Study: Downline Dan and the New Breed

Dan is one of Matt’s downline representatives. He’s ordered his own follow up autoresponder through Matt. Since Matt is using Auto Message Setup, Dan’s account came pre-packaged with Matt’s marketing messages. Dan personalized those messages to himself by answering a few questions in his Online Control Panel. Now Dan is sending his own personalized version of Matt’s messages to his customers! All of the basic content is Matt’s, but Dan’s contact information is on the letters. Here is the autoresponse that Dan sends to his potential customers:

Hi, LEAD NAMEThanks for stopping by the All Natural Pharmaceuticals web site today! We hope you come back soon!Best Regards, Dan D.
dan@pharma-ceuticals.com 5 Farm Way
Sootuh, TN 88457

Notice that the contact name and address at the end of the e-mail are Dan’s, but that the greeting at the beginning of the message still includes the name of Dan’s lead.

Mission Accomplished

With Matt’s experience in hand, Dan is now marketing more successfully than ever before. And he isn’t the only one – Matt’s entire downline is now using his marketing messages! Matt’s commissions are growing exponentially.

Matt and Dan’s situation is not unique. Any network marketer with an established downline can take advantage of the opportunities available in an auto message setup system. There’s no better way to put more auto in your autoresponder.

Try this excellent auto-responder service – just click here to learn more

Are Your IT Systems Secured?

Posted By Mark on December 4th, 2007

The information needs of today’s society are greater than ever, and it hasn’t escaped the notice of hackers and other unscrupulous individuals.  Names, addresses, bank accounts, credit card numbers and entire identities are at risk in today’s world as more and more people are sending these electronically through the information superhighway.  This article will cover some of the usual weaknesses in a business’ IT system.

Vulnerable to Malware

There are about a quarter of a million pieces of known malware and almost 10,000 web pages are infected by hackers all over the world.  Even big and well-known websites of reputable companies are hit by malware every now and then.  A malware infection usually allows the hacker access to sensitive data, data that you might not want other people to see.  Even if the infection doesn’t allow direct access, it will nevertheless exploit other weaknesses in your system, and that’s just as bad.

Malware often find their way into a computer through emails or infected files spread via portable storage devices like flash drives.  The easiest way to counteract this would be to get antivirus/anti-spyware/anti-adware software on all the computers and terminals that have access to the secure areas of your system.  Many antivirus providers offer business packages which are usually more effective and cheaper than the standard edition.

Knowing the method of infiltration used by malware, you could also limit how they enter your system.  Some companies and organisations have already modified their email clients to accept only text – and not HTML – emails.  Doing so will greatly reduce the threat of malware carried by unknown emails because the malicious code is often hidden in a chunk of HTML or in an executable file.

Query Exploits

Many hackers have already found that using vulnerabilities found on the forms of websites can be just as effective as sending out malware attacks.  Hackers have found ways to exploit certain limitations of online forms, giving them names, passwords and, ultimately, access you don’t want them to have.

One of the most common exploits for online forms is unvalidated inputs.  Given a certain online form, such as one that asks for an address, a hacker could enter commands (such as ones in Javascript) that could give him/her access to secure data.  Another common and much easier one is using a buffer overflow, wherein the hacker inputs more information than the buffer could handle.  By overflowing the buffer, the hacker could gain access to the application server and, consequently, all the data that that server handles.

Exploits such as the ones above are best prevented with a watertight webpage design. Stay away from older languages like C++ and try exploring the possibilities with ones like .Net or Java.  The latter two are less vulnerable and are less likely to fall prey to an attack.  If forms or any other type of user input are included in your website design, make sure to include explicit limitations, such as x number of characters for the address or strictly numeric characters for the zip code field.

The most important thing to remember is that the security of your IT system is and should be an ongoing process and not a one-time event.  As technology becomes more developed and the hackers become more sophisticated, so should you and your system.

Database Servers: The Backbone of Your Business

Posted By Mark on November 29th, 2007

Regardless of the size or the type of your organisation, your organisation most probably has a database to handle your organisation’s data storage needs.  Your database is critical to the day-to-day operations of your information management systems because it acts as the repository for everyone’s data.  This makes it all the more important to have a database server that will allow employees, customers and management to access and manipulate the appropriate sets of data.

What are Database Servers?

In a nutshell, database servers act as the interface between the actual database and the programs or people that need to access the data that the database holds.  The larger your company, the more sophisticated your database server needs to be because of all the extra duties it will perform.

Database servers don’t just allow users to access the data in your databases.  They also disallow users from accessing certain sets of data, in that database servers are the ones that enforce permissions and limit what data certain users can view and manipulate.  It also allows users to access the database from several different computers and using different clients and programs.

Why are Database Servers So Important?

Database servers are practically what allow your staff, your management and your clients to access the contents of the database.  After all, what use is a great repository of information if no one were able to access it?

Its second importance is as a regulator.  Remember that one of the goals of information management is getting the right information to the right people at the right place at the right time.  With its functions of indexing for better searching, enforcing permissions (effectively limiting who can access which sets of data) and facilitating access to the database from different computers and programs, it’s a critical piece of information management equipment that your database cannot go without.

The Benefits of Using a Database Server

Aside from all its functions that are necessary to your daily information management needs, data servers offer a whole host of benefits that might just convince even a non-technical organisation to get a database server for themselves.

Database servers do all the complicated and processor-intensive stuff – indexing, searching, data analysis and sorting, among others – on the server side, so only a single query needs to go from the client side in order to receive a response from the server.  This increases productivity and reduces the bandwidth needed for daily operations, especially in a networked office.  Your investment in powerful computers (which is, incidentally, a big expense) is also limited to the sever hardware itself.

Database servers process all the data that passes through them.  That means compressing, indexing or otherwise optimising the data that go in and out of the database.  This feature makes for a more organised database (thus maximising the storage space) and more optimised returns to queries from the client side.  It ensures that the client side gets only the data needed or requested, so the lines aren’t cluttered up unnecessarily.

Outsourcing: The Good, the Bad and the Horrible

Posted By Mark on November 26th, 2007

Outsourcing has become a popular means of hiring people for a certain project or aspect of the business which is normally taken care of in-house.  Outsourcing is a viable alternative to hiring your own workers since you only pay for the results yet do not have to worry about (nor spend money on) how such results are achieved.

Nonetheless, while it is true that outsourcing has its advantages, there are a few horror stories related to outsourcing that could make you think twice about doing it yourself.  Here is the good, the bad and the horrible side to outsourcing.

The Good 

1.  Lesser cost – The biggest benefit that you can realise out of outsourcing is the savings.  Getting freelancers or an independent provider/supplier for your projects whether long-term or short-term is cheaper by far than hiring newbies to take care of business or hiring more staff.

2.  Time-effective – It will also free up a considerable amount of time for you since someone else will be taking care of what you would normally include in your agenda on a regular basis.  While you still need to confer with your outsourced service provider, you can do so at your convenience.

3.  Less pressure – You will also be under less stress and pressure if you hire freelancers or independent service providers/suppliers because they will do the worrying for you and troubleshoot as necessary.

5.  Shared responsibility – Outsourcing will give your outsourced provider the shared responsibility of making the team work excellently to satisfy your customers.  It’s your job to choose the best providers and it’s their job to prove to you that they are indeed the best.

The Bad 

1.  Less control – Outsourcing means you don’t control the process, only the outcome of the projects that you have commissioned to your independent contractor.  You don’t have much say on how your contractors will accomplish their work – only that they do so.  Thus, if you are a perpetual worrier who needs to be continually apprised of progress, you’ll have a hard time dealing with freelancers who report in only once the job is finished.

2.  No loyalty – Freelancers get as many clients as possible without considering whether they are competitors or not; hence, their loyalty towards your brand or company could be divided.

The Horrible 

1.  Poor service quality – Unfortunately, some companies jump in the outsourcing bandwagon without really considering all possibilities hence, they get the most horrible type of freelancers around and the most unsatisfactory output.  Bear in mind that your work ethics/attitude are different from others’ so your call for excellence may not be met with the same outstanding results.

2.  You don’t get what you paid for – This is not similar to poor service quality, this is more of getting what you never talked about.  While people may promise you the moon to sign you up as a client, sometimes they will not deliver what has been agreed upon and instead do something else that could ruin your operations and reputation.

3.  Security Risk – Since you have not much control over the process of “production” whether of goods or services, there are security issues that you have to deal with.  For instance, if you are outsourcing transcription work, there’s a risk that confidential or sensitive information can fall at the wrong hands.

Information Management: What Is It?

Posted By Mark on November 23rd, 2007

With the advent of computers as storage for information and media for information exchange like the internet, a whole host of buzzwords have popped up surrounding the methods for handling information.  Terms like information technology (IT) and information and communication technology (ICT) are just some of the dozens of terms spawned by advances in computing and communication technology.

 

A Term Vague to Many

Information management is exactly like the two terms above.  It was born out of a need to manage the increasing amount of data at the disposal of an organisation, and different people have varying definitions for it.  The latter was probably a result of the wide scope of the term, as we will explore later.

 

Information management refers to the collection, handling and distribution of data and content from different sources and to different recipients or audiences.  Information management, in the context of an organisation, covers how the information is organised, processed and distributed or delivered.

The task of information management has evolved from the simple paper filing and storage of the 1970’s to a more advanced concept in the 1990’s, one that involved not just computers but entire computer systems.  This evolution first happened when the common means for storage transferred from paper to electronic media.  The shift made the task more difficult because more technologies had to be understood by the one who managed the information – the information manager – more than mere ink and paper.  The information management job became even more complex as networks, particularly the internet, emerged and became prevalent within and across organisations.

 

The Tasks of an Information Manager

Any information manager has to be able to do a variety of tasks that accomplish the goals of information management that were enumerated above, that is, the collection, handling and distribution of data.  The phrase “getting the right information to the right person at the right place at the right time” is quite a popular way of summing up the goals and duties of any information manager and, for that matter, any information management system.

 

Information managers have to be able to understand three things:  the technology at work, the concepts in play and the people involved.  The first one relates to the great and growing number of technologies used in information management.  That could include things like computers, terminals, servers and databases.  The second one relates to the necessary understanding of how ideas are used and processed, especially in a workplace or organisational environment.  The third one relates to the knowledge of the people who need to have access to the appropriate information and how they can and will use it.

 

Information management, as a field of study, covers many topics, branches and disciplines of management and computer science.  To some extent, it attempts to bridge the gap between raw information and the people who will ultimately use it.  In the same way that any information management system must be able to do that sufficiently, so must the information manager who will implement and maintain that same system.

Business Loans: What a Lender Is Looking For

Posted By Mark on November 20th, 2007

If you’re starting up a business, you’ll need some capital to begin with.  Perhaps you already have a going concern but now you need money for expansion.  In both cases, you may have to visit the bank or other lending institutions to borrow the necessary funds.

You have to maximise the chance that the lender will be persuaded to lend you money.  Just as lenders pitch themselves as good places to get money from, now you have to convince them that you’re a good lending risk for them.  What can you do?

1)  Dress the Part

Let’s say you’re a bank officer and you’ve been assigned to review two applicants filing for business loans.  In ambles the first one, dressed in torn jeans and none-too-clean uppers, with a discernable lack of personal hygiene detectable from twenty feet away.  The second one walks in briskly, neatly dressed in a three-piece suit, and favours you with a friendly, if somewhat nervous, smile.  Stop.  Off the bat, which person would you be inclined to lend money to?

There’s no doubt that there’s more to first impressions and appearances.  Miscommunication, subterfuge and fraud do exist, so it’s impossible to be dogmatic about appearances.  Why give the lender a bad impression, though, when you can so easily make a good one?

2)  Make a Plan, Know the Details

A lender is more likely to be impressed by a prospective borrower who has done his/her homework.  So if during the course of the interview a borrower brings out a couple of spreadsheets and presents a well-thought-out business plan which satisfactorily answers the lender’s questions of “Who are you, why do you want to borrow money, why should we lend you money, how are you going to spend the money we’ll lend you, and how can we be sure you’re not going to throw it away on some hare-brained scheme?”, he might stand a chance of getting his loan.  If, in contrast, another borrower who’s asked the same questions can’t come up with definite answers, then his chances of getting a loan will get significantly lowered.

3)  Anticipate the questions you’ll be asked and have your answers ready.

Lenders also want to look at financial statements.  They want to know what they’re getting into, so they will likely ask for information such as personal financial statements and tax returns as well.  A borrower who is ready to provide that quickly is bound to impress a lender favourably.

4)  Know the Lender

Before you borrow, find the answer to questions like the following:

-What sort of businesses does the lender usually deal with?
- How long has the lender been in business?
- Have the lender’s clients been more consumer or commercial in nature?
- Is the lender affiliated in any way with businesses related to your own?

By so doing, you may find information that will help you choose the right lending firm for your business.

5)  Have Long Relationship, Win Leverage

A good standing with your bank could be a factor in helping you obtain a business loan, as you would then represent more of a known quantity.  A lender will want a client whom they can work with on a long-term basis, and you should as well.

When Markets Turn: 7 Ways to Batten down the Hatches

Posted By Mark on November 13th, 2007

The bursting of the subprime mortgage bubble isn’t something new – or unique. There have been other inversions related to the money market before. The 1930s stock market crash, the reverses of 1975 and 1982, the 1987 debacle, the late 1990s dot-com speculation all follow the pattern of greed and fear, which some people say are the only two emotions governing the movement of stocks. When people want more, safeguards are bypassed and the soundness of investments and products is overlooked in favour of speculation. The downturn that follows can be considered a sort of correction, albeit a drastic one.

We’ve already seen and are continuing to see the effects of the present financial crisis. Though pretty small in terms of actual damage done, the subprime crash has far-reaching effects that threaten to depress not just financial markets, but other fields of business as well. What can you, as a business owner, do in order to ride out the storms that are coming?

Ways to Ride Out a Downturn

#1 Plan, Analyse, Re-Plan

When times get difficult, it’s the companies that don’t pay attention to the basics which flounder. A business with an up-to-date contingency program can devise strategies to cope with unexpected turns and losses. It’s vital to have a business plan which addresses bad times, which answer a lot of “what if” questions. What if the cost of raw materials rises? What if we lose our number one customer?

The frequent reappraisal of your company’s plans can also serve to alert you to potential danger, such as delinquent accounts, declining margins, and so on.

#2 Maintain Relationships

In hard times, you’ll need all the goodwill that you can get from your clients, suppliers, networked agencies, etc.

#3 Focus on Business

#4 Stay Trim, Stay Fit and Save Money

When times are good, people tend to not scrutinise costs too much and to stop looking for ways to save money. This results in cost inflation. In personal health, it’s much healthier to stay at a moderate weight than pig out and then go on a crash diet. The same goes for companies as well. When a downturn comes knocking on your door, it’s important not to get caught owing a lot of money.

#5 Adjust and Adapt

#6 Diversify

#7 Look for New Opportunities

To do well during a downturn, you have to stay focused on the most important elements necessary to a business such as accounts receivable, costs, debts, and cash flow.

A downturn can actually be a time for well-positioned companies to accrue market share. While everyone else is getting their heads down and concentrating on the essentials needed to ride out the storm, the savvy entrepreneur can be capturing markets by redefining his/her service or introducing new products. The best thing about it is the fact that competitors can’t or won’t be able to respond in kind.

Don’t get caught waiting for a return to the old market. Each downturn leaves the business environment changed, in ways that are sometimes unpredictable. It’s much better to base your future actions on the premise that future methods of doing business will not be the same. Markets will shift, and opportunities will arise elsewhere. Each downturn is, after all, an episode in the continuing evolution of business markets and models.

Incorporating Your Business: Is This the Right Move?

Posted By Mark on November 9th, 2007

Whether you run a small business from your kitchen all by your lonesome or you have an office somewhere else with a couple of people working for you, getting your business incorporated could be your wisest business decision yet as incorporation can protect your business and assets. If you doubt this little piece of wisdom, ask your accountant (if you have one) or a financial advisor. Ask other businessmen like you, if you want. You’ll be sure to get the same answer.

Should You Go for It?

Generally, the answer is yes.

Incorporating is still the way to go if you want to protect your personal assets from creditors. Your corporation will be the only one liable to creditors should your business go bankrupt or should one of your clients sue your company for whatever legal reason.

If you are the sole owner of your business, you will be held accountable for all payables, debts, loans, and financial obligations that your business has incurred. Hence, your personal assets or savings are at stake in a sole proprietorship or a simple partnership business structure. That is, when your business goes bust, you (and your partner, if you have one) go bust along with it.

If you incorporate, however, your liability technically becomes limited to those assets and monies that you have invested in your business – no more and no less. Your business loans are payable by your business, not by yourself. Thus, if a time comes when you are no longer able to sustain payments to your business loans, your corporation’s assets may be liquidated to come up with the payments, but assets that you personally own will be left alone.

If you incorporate, moreover, your company’s tax obligations are payable by your company, not by yourself. Although this may seem mere splitting hairs to you, there really is a great advantage to separating your business dues from personal ones. For one, corporations generally get levied lower taxes. For another, corporations usually enjoy tax exemptions in select countries and states. An accountant can explain to you in great detail how this works. At this point however, suffice it to say that through incorporation, you could enjoy a substantial amount of tax savings.

Incorporation also endows you with the capacity and the flexibility to respond to sudden economic downturns and financial emergencies. Corporations can sell stocks to raise capital. Aside from this, banks are generally more amenable to lending money to corporations than to businesses that have other structures. Corporations are actually perceived to be more stable (and thus much better risks) since they can exist even when the major shareholders die; shares of corporations are expected to get passed on –inherited or sold – whereas family-owned businesses have a much greater chance of failing when the original proprietor passes away.

Indeed, incorporation is usually the right move for the entrepreneur who wants to survive and succeed. However, know that you may not have as much control in a corporation as you have in a sole proprietorship or a simple partnership. Thus, if you want to call all the shots, then perhaps incorporation is not the right move for you.

Hiring IT Professionals: Full-Time or Temp?

Posted By Mark on November 6th, 2007

The sudden boom of the IT industry created a demand for IT professionals that many were eager to fill. Nowadays, thousands of new university graduates from IT-related courses are competing for any given position in just about every state in the U.S. With such a massive available workforce, it has become an increasingly available option for employers to hire IT professionals on a temporary basis so that they’d be able to continually replace employed IT professionals with ones that are newly trained and therefore more updated on new trends in the fast-moving IT industry.

Nothing Permanent but Change

There are some advantages to hiring temporary workers that are immediately obvious. First, there is the fact that new employees are more probable to have experience with new technologies and new standards, which are updated quite frequently in an industry as fast-paced as IT. Chances are good that you won’t have to spend as much on temporary workers, too, because things like retirement benefits and tenure packages don’t exist for them (or, at least, such benefits are not as extensive as those for permanent employees).

Hiring mostly temporary IT professionals can have cost-related drawbacks, too, although they’re not as obvious or as visible as the benefits. The biggest disadvantage of hiring IT professionals temporarily would be the cost of the replacement and the consequent training of the new employee. The former entails work hours for the hiring authority (usually the manager or someone from the HR department) that has to read through all the resumes, screen them and then pick out a shortlist. Interviews also consume precious time and resources. Training will use up resources as well. You spend money to pay the trainee on top of what you’ll have to pay for whoever will train your new employee.

The Benefits of Permanence

Getting IT professionals as permanent employees isn’t as bad as what some people paint it out to be. For one, you are assured of continuity and consistency if the same group of people from previous projects will be planning and implementing your next one. The experience is also a critical factor because permanent workers would be more familiar with the needs of your company and would therefore be able to make solutions better tailored to those needs. Permanent employees also do not need the same kind of training as entirely new IT professionals and will only need supplemental knowledge to augment what they already know.

Some employers view the tenure of IT professionals as a disadvantage because, as has been stated, higher salaries (as if their salaries weren’t already high to begin with) and benefit packages come into the discussion.

Which One to Pick

The decision to get temporary or permanent IT professionals depends entirely on the IT needs of your company. If your company’s demand for IT skills and solutions is pretty much constant throughout the year, it would be a good idea to get permanent IT professionals on board. If, on the other hand, your company experiences seasonal spikes in demand for IT skills and systems, it’s time to think about hiring IT professionals on a project basis. Doing so will get you the skills and expertise you need without having to pay salaries for the rest of the year when that expertise isn’t required.