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Business Debt Negotiation – Why the Big Mystery?

When cash flow becomes inadequate, you need to stop the bleeding. You have to stop your business’s lifeblood from draining away. And if you can’t immediately find a new transfusion source, it’s essential to cauterize the wound.

An effective way to do this is to delay payment of non-essential accounts. This is not likely to go down well. Suppliers will become angry and frustrated, which is understandable. They might even be in the same boat as you. But they’ll be even more upset if you go out of business and leave them with nothing. You have to let them know what’s going on and show them how you are working in their best interests.

Once your business is stabilized you should have a better handle on its blood supply. This comes from increased sales, or from additional loan or investment capital. And at this point you will know enough and have enough spare cash to start making deals with creditors. How you deal with them will depend on your prospects and how much cash is available.

The business debt settlement process can be very straightforward. Given the alternatives, it benefits both your business and your suppliers. The trouble is, so few lawyers or accountants know much about it. An across-the-board debt settlement is known as a workout. It is standard practice within the turnaround management community, which typically works with troubled big businesses. But it is relatively unknown amongst legal and financial professionals who provide service to small to medium sized companies.

Why is this process such a mystery? Why are small business owners commonly advised to file for Chapter 7 bankruptcy liquidation, when a better alternative may present itself? Part of this might be that debt negotiation and deal making are foreign concepts to many professionals. It wasn’t part of their college curriculum and there’s little understanding of it. Possibly, for this reason, they don’t want to consider or discuss it with clients.

From your perspective, it may feel easier to heed such advice and succumb to a tried and true legal remedy – bankruptcy – than to take the more entrepreneurial approach of facing up to the barriers and challenges to your business.

The fact is, of you are an effective business owner, you know how to sell. Ultimately, you may have to sell debt settlement solutions to your company’s creditors. The trouble is, there are so few legal and financial professionals with this mindset. They tend to favor established cook-book remedies. If anything, the legal profession prefers a simple fight to a potentially complex negotiation. And accountants may be hard to convince that your listing of balance sheet liabilities can be fundamentally reduced in short order.

If you are taken to hospital after an accident, the medical staff doesn’t tell you that they’ve no idea of how to stem the blood flow. Or that they have established Kevorkian procedures to make you die, rather than get you well. And that you shouldn’t challenge their opinion because they know best and, anyway, they wouldn’t know how to save you. As well, effective treatment with any alternative therapy would be “too difficult to consider.” Now, that scenario is ridiculous. But it represents the kind of advice that’s given every day to the owners of sick companies.

It’s about time that more small to medium sized business professional service providers became familiar with the benefits of debt negotiation and workouts. Chapter 7 has its place. But if you are being advised to put your business through bankruptcy liquidation, ask the simple question, “What alternative options are available?” Chances are, you can still save your business.

A Business Plan Online

In the world we live in today, most of the comforts we now enjoy can be attributed to the invention of the modern day computer and the innovation which is the World Wide Web or more commonly known as the internet. The internet was created by Tim burners-Lee as a system which helps him and his colleagues to be able to share information from their computers faster and easier by connecting them with each other. Now, this system is used globally as we can now find, send and share information from one another wherever we may be as long as an internet connection is available.

This has been a vital invention to which resulted in a lot of changes in our world which made our lives just a bit, if not a lot, easier. One significant innovation which stemmed out of the internet is the prominence of the online business which has become a great alternative to normal employment.

There are certainly a number of benefits in owning your own business. First of all, it is no secret that you could earn more by having your own business compared to being an employee. Also, most of us would prefer to be our own boss instead of having someone else to yell at you, tell you what to do and simply be inferior to someone else.

But these benefits come at a price, a very high financial price as putting up one’s own business can be expensive because you would need a great deal of capital to invest. An online business on the other hand removes the need of having a large capital while retaining all the benefits of having your own business; and then some. With this business venture, you would have the ability to earn from your own home and thus eliminating the need for gas money or the hassle of travelling every day to get to work. But, how do you start this?

In order to get on with your own online business you will need a sound business plan. This business plan would contain first of all your financial goals; basically it will outline the path from beginning to the end of your business venture. This would contain every step you would need to take and exactly how to take them.

This would mean that you will need to do some extensive research before entering any type of business online as there are a lot to choose from. You can opt to sell goods online, both physical goods as well as software for computers for them your customers to download or you could create a website for advertising. You could also choose to provide online consultation about different topics or different areas. All of these need a lot of information so that you can construct a sound business plan. Fortunately, this information can be acquired through the internet as well. There are great sites and e-books which provides this information to you so you can be successful in this business venture.

Investing in a Home Based Business Opportunity – Getting Into the Head of the Seller

There are literally thousands of opportunities for home based businesses and income generation projects available on the internet and from other sources. Some of these are outright scams. Many are just plain useless. Some offer a little help. A few are real value for money and can make a huge difference to your life. The million dollar question is how do you know which are which. The answer is you probably don’t. You have to take a bit of a risk. But one way to get a sense is to try to get into the head of the person who is selling the opportunity to you. What is in it for them? Here are some scenarios:

1. Multilevel marketing or relationship marketing or network marketing (all more or less the same thing). In this case the motivation of the seller is very clear. He has to get you to buy into the opportunity. That is the whole basis of his business. Once you are in the scheme you, in turn, will have to sell the business to others who will also have to sell it to still others for you to make any money. So there is no reason to be suspicious about why the person you are dealing with is trying to get you to make a small outlay in return for the promise of making a fortune. There might be other reasons to be suspicious…

2. Those who can’t do it teach it. This is particularly common with complex issues such as derivatives trading or forex trading. To get involved with these there is a good deal of technical knowledge required just to understand the terminology and the procedures involved. There is also quite high risk involved and quite a lot of capital needed, so people who are interested in trying this sort of opportunity are frequently prepared to pay more for introductory training. But here the question of who to buy the knowledge from and how much to pay is a much bigger issue. In reality the profits that are to be made from engaging successfully in this sort of activity are such that it is difficult to see why anyone who does it successfully would want to spend their time and energy training others. 

They would have to charge very high fees and also train a lot of people for the income to compare with what can be made in the markets. So it’s a safe bet that the people selling information or training are the ones who have not done so well in the market place themselves. Naturally they are not going to admit this, so they will usually suggest that their motivation is altruism of some sort. Suggestions of altruism in the business world are always a good reason to be very suspicious. If you want to be introduced to the terminology and the techniques involved try to find a course that makes no claims other than that this is what it will do. Whatever you do, treat the offer of secrets that will make you instantly wealthy with great care.

3. The sale of a product leads to ongoing related revenue for the seller. A truly well designed course on how to conduct an online business can get a new participant to subscribe to a large number of associated services, and sometimes, to buy additional products. These actions, in turn, bring revenue to the person who designed the course. The mechanisms that underpin this process are too complex to discuss here, but the effect is that the better the course, and the more successful the buyer is, the more services he is likely to use over a long period of time, constantly bringing revenue to the initial seller. 

In this way, by selling a relatively inexpensive product, provided that the product works successfully, the seller gets access to an ongoing income stream. Not all such products are going to work equally well, but at least both the seller and the buyer stand to gain from the success that comes from a quality product.

There is little doubt that if the motivation of the seller is a major factor in a purchase decision the third scenario outlined above is the best one.