Network Marketing For Your Business

Network marketing is a method of developing client contact by using other agents and individuals to meet with clients and represent you. Network marketing is used in many different businesses, but is most often found in businesses that are selling products or services that are of a very personal nature. Insurance and financial services are two good examples of products that people tend to purchase through friends and family.

How to use Network Marketing for your business

1. Identify if Network Marketing is right for you

Not all businesses can benefit from network marketing so it is important to identify if your business can before seeking to use it. What type of product or service do you provide? Do your clients seek to use you because they trust you and your company on a personal level, or are they only concerned with price and efficiency. Network marketing can help businesses who rely on reputation and trust.

2. Determine if you can budget for Network Marketing

Different types of network marketing can have different costs, but you should be aware that it will be necessary. Many network marketing plans call for hiring employees or representatives that seek to sell your product to friends and family within their personal network. They then are given a commission for the business that they bring in. Other plans call for full time salaried employees who work their contacts into continuing business relationships.

3. Establish your Network Marketing plan

Once you have determined that your business can benefit from network marketing, you must develop a plan for putting it into place. Search out qualified individuals who will represent your business and who have relationships with companies. Determine how many representatives you will need, what they will be selling, and how they will be compensated. It may be a good idea to slowly use network marketing instead of jumping into a large plan. Trial and error will show you how network marketing can work without committing you to a large network marketing plan.

4. Put your Network Marketing plan into effect

Taking all of the above steps into account, you next have your representatives go into the community and try to get new clients for you. You should see a spike in new clients while your representative works their contacts and brings them to your business. Eventually though, you must plan for your representative’s contacts to run out. It is at this point that you must have planned for either eliminating this representative or moving them to try to bring in new clients or sell a different product.

How to adapt your Network Marketing

Marketing as a whole has been greatly affected by new technology and better sources of communication. Now, clients all over the world can be exposed to your marketing. Keep this in mind while adopting any network marketing strategies or changing existing plans. Network marketers can use these sources of contact for bringing you clients within their networks. Representatives of your company may have vast networks of contacts, through online communities, social media, or other exposure to people around the world.

Loan Amortization Schedule

A loan amortization schedule is a useful tool to determine the amount left on a loan and the interest that will be paid. Through the use of a loan amortization schedule tool, one will be able to determine the date of repayment, monthly principal and interest owed and the sum of all payments that will be made to the lender. Although it is not particularly difficult for an individual to generate a loan amortization schedule, tools exist to guide borrowers through the steps of making a loan amortization schedule to help determine their future finances.

What is the definition of amortization?

The term amortization refers to the amount of the monthly payment made on a loan that decreases the principal owed. You use a loan amortization schedule to determine how much the portion of the monthly payment that is not allocated to pay interest will decrease the principal amount owned.

How do I calculate a loan amortization schedule?

First, gather the following information (sample numbers included)

Loan Amount = $50,000

Loan term = 10 years

Interest rate = 12%

Amortization rates = monthly

Loan amortization can be calculated manually sometimes, but generally speaking, it is a better idea to use software or resources that are programmed to give accurate results on loan amortization schedules.

Using an online loan amortization calculator, we find that the initial payment made is $717.35. $500 is paid in interest, with the remainder paid toward reducing the principal. Looking at the loan amortization schedule, we see that assuming the repayment began in January 2012, by Jan 2015, $406.37 is being paid in interest and $310.98 is paid toward the principal. Only about $10,000 of the principal will be repaid that that point. Toward the end of the loan amortization schedule, which ends on December of 2021, we see that more of the principal is repaid with each payment, while the share of the payment that is used to cover interest, declines, coinciding with the slowly reducing principal amount.

What are the issues with a loan amortization schedule?

A loan amortization schedule assumes that payments will remain exactly the same throughout the repayment of the loan. Especially in arrangements with adjustable interest rates or lacking “balloon payments,” monthly payments can vary. The lack of balloon payments allowed for more of the principal to be repaid early, thus reducing the interest that will be owed. Use a loan amortization schedule as a benchmark to estimate how much a loan will cost and only use it as a guide if the loan is fixed and you know that you will not able to repay it early. Payments may vary slightly due to rounding on the part of the lender although these discrepancies are usually adjusted at the end of the year.

As with all blended payment arrangements, interest will dominate the repayment at first and principal repayment will overtake interest repayment a bit of time after repayment has begun. A loan amortization schedule can help you visualize when that will occur, which can be valuable information.

Loan Amortization Calculation

In regards to economics, amortization refers to the distribution of a single lump-sum cash flow into many smaller installments, as determined through an amortization table or schedule.

Amortization is a loan with a unique repayment structure. Unlike other models, each repayment in an amortization consists of satisfying both the principal balance and the interest attached to the loan.

Amortization is used in loan repayments, most commonly in mortgage loans or sinking funds. The payments are divided into equal amounts for the duration of the maturity schedule. Because of this uniformity, the amortization is regarded as the simplest repayment model.

Payment towards the amortization is mostly applied to the interest of the loan at the beginning of the amortization schedule, while an increased percentage of payment is used to satisfy the principal at the end of the amortization loan.

In an accounting sense, loan amortization refers to expensing the cost of acquisition from the residual value of intangible assets such as patents, trademarks, copyrights or other forms of intellectual property.

In a more common sense, amortization refers to the tangible process of paying off a debt, such as a loan or a mortgage. The process in a loan amortization is satisfied through the delivery of regular payments made at uniform times. A portion of each payment is used to satisfy the interest while the remaining payment amount is applied towards the principal balance. The percentage that goes into satisfying both the interest and the principal balance is determined through the amortization schedule.

Loan amortization is deciphered by the macro-economic conditions of the market (primarily the interest rates) the credit score of the borrower and the intricacies that revolve around the specific loan.

How Do I Amortize a Loan?

A lender will amortize a loan to pay-off the outstanding balance of a loan through the delivery of equal payments on a regular schedule. These payments are structured so that the borrower satisfies both the principal and interest with the delivery of each equal payment.

Payments and amortization calculators are available on a number of lending websites; these tools facilitate the construction of an amortization schedule. If the lender wishes to understand the variable and inner-workings of the amortization calculation, please observe the below figures and steps:

P= Principal amount (the initial amount of the loan)

I= The annual interest rate (a figure from 1 to 100 percent)

L= The length in years of the loan or the loan over which the loan is amortized

J= The monthly interest

N= The number of months over which a loan is amortized

To calculate the amortization, first take 1+J then take that figure to the minus N power. Take this number; subtract that figure from the number 1. Next, take the inverse of that and multiply the result by J then P. This figure represents the monthly payment (M). To calculate the amortization table you will need to do the following:

Step 1: Calculate H (P X J) to observe the current monthly interest rate.

Step 2: Calculate C= M-H to observe the monthly payment minus the monthly interest rates—this figure is the principal amount for that particular month.

Step 3: Calculate Q=P-C to observe the new principal balance for the loan

Step 4: Set P equal to Q and observe Step 1 until the value of Q goes to zero.

A Full Guide to Investments

What are Investments?

An investment is the commitment of an asset–such as cash or capital–to purchase a financial instrument with the goal of earning a profit. Investments typically yield a return in the form of interest, appreciation, or another source of income such as a dividend.

Investments are related to savings or deferred compensation. An individual will invest to put their wealth in a long-term instrument that will secure a set interest rate or dividend where the money will hopefully grow at a rate faster than inflation.

Investments are responses to savings accounts, where interest or substantial profits will not be earned. As inflation is inevitable, the resting money loses value over time. An investment offsets inflation through the guarantee of a fixed interest rate (CDs or long-term bonds), profits (stocks), or interest.

Investments are involved in a number of areas of the global economy. An investment can be the commitment of capital to an asset or financial instrument that is intended to appreciate in value. An individual can purchase a stock, bond, piece of property, derivatives, foreign currency, Treasury bill from the government, and other forms of debt with the intent to earn a profit on the instrument in the future.

Whatever the investment type, the commitment involves the choice by an individual or organization after thorough research of the investment’s yield and the characteristics associated with the investment. Although investments are solid vehicles to realize profits, they demonstrate a substantial risk in the loss of the principal sum.

Types of Investments:

Bonds: These types of investments are grouped under fixed-income securities. A bond is a form of debt investment; when you purchase a bond, you lend money to a government entity or company. In return, they provide interest payments eventually pay-back the full amount you originally lent. Bonds are a popular investment strategy because they are relatively safe. If you buy bonds from a stable company or government body, your investment is risk-free. The safety of a bond, however, comes at a cost. The mitigated risk is matched with little return on investment; the higher the credit rating of the issuing agency the lower the return on investment.

Stocks: When you purchase a stock you become a part owner of the attached company. Ownership allows you to vote at shareholders’ meetings and allows you to receive a portion of the profits that the company makes—these profits are referred to as dividends. Because your return on investment is proportional to the underlying company’s business, the potential for increased profits (when compared to fixed-income securities) is realized in stock investments. That being said, the exposure to risk is also realized; stocks are far more volatile than bonds or other investment strategies.

Mutual Funds: Mutual funds are a collection of stocks and bonds. When you purchase a mutual fund, you pool your money with a number of investors—this enables you to pay a professional manager to select securities for you. Mutual funds are packaged with specific strategies in mind; their distinct focus can be on a number of investment options, including: small stocks, large stocks, bonds from corporations, bonds from governments, stocks in specific industries or stocks in specific countries.

Alternative Investments: The two basic investment strategies are equities and debts (stocks and bonds). While a number of investments fall into these two categories, there are a number of alternative investment strategies that represent complicated types of securities. When you start a business you should avoid dabbling in this market. See below to read about why you should avoid investing in options, forward contracts and other alternative investment strategies.

How to Invest if You are a Small Business Owner:

Allocate Your Assets Properly: Numerous studies conclude that the most important factor in small business investing is asset allocation—your investment portfolio should include a prudent mix of stocks, bonds and cash. Over the long run, stocks will earn roughly 10 percent a year—enough to double your money every seven years. Stocks, however, (as evidenced recently) are too risky for funds that you will need in the next 5 to 10 years. The bulk of your money, therefore, should go into bonds, which are less volatile, but also less profitable—average returns for bonds are roughly 5 percent a year. Cash (savings accounts and money market accounts) are extremely safe but generally will yield nothing once inflation is realized.

A common rule regarding how to invest, says a small business owner should keep enough cash for roughly 8 to 12 months of expenses. Of the remaining holdings in the portfolio, the percentage of your bonds should equal your age (i.e. if you are 50 years old, 50% of your portfolio should be comprised of bonds). The rest of your money should be invested in stocks.

Utilize E.T.F.’s and Funds:

The most efficient way to diversify your portfolio is to invest in exchange-traded funds, which are similar to mutual funds but traded like stocks. A single exchange traded fund will have dozens of bonds, stocks; these bundles of investments, through their diversification, will return a solid percentage of profit every year. These professionally-run bundles are efficient because they provide a consistent return on investment. The average exchange-traded fund charges annual fees equal to roughly 1.3 percent of the fund’s assets.

Avoid Options, Forward Contracts and Futures: The most sound investment strategy for a small business owner will not incorporate zero-sum games. Individual investors who dabble in options and other similar holdings are betting against experienced professionals—for every dollar earned, someone else loses.

Types of Business Investments:

The term “investment” must be held separate when comparing or evaluating individual investors and owners of small businesses. The difference lies in the expected goal—an individual investor will secure an investment security to earn short or long-term profits, whereas a small business owner will invest in a maneuver or initiative to publicize his or her business. A small business investment is an organizational tool; by tinkering with the business model, a small business owner can reach their consumer base in a more effective manner. Investing in this sense refers to advertising endeavors and other investment strategies that bolster the owner’s product or service.

A Guide to Business Management

What is Business Management?

Business management is the act of organizing people to accomplish the desired goals and objectives of a business. Business management requires the utilization of the entity’s resources in the most efficient manner possible.

Business management comprises organizing, planning, leading, staffing or controlling and directing a business effort for the purpose of accomplishing the entity’s listed goals. In a for-profit business model, business management focuses on the satisfaction of a range of stakeholders, including the officers of the business, its employees, shareholders and the general public (consumers). In this regard, business management’s primary function is to secure a profit, (for shareholders) create valuable and innovative products at a reasonable cost (consumers) and provide employment opportunities. In a nonprofit scope, business management will focus on keeping the faith of its supporters and donors.

Basic Functions of Business Management:

Business management operates through a series of functions, typically classified as organizing, staffing, planning, leading, monitoring, controlling and motivating.

Planning: This area of business management decides what needs to happen in the future and subsequently generates plans for action. Planning is the foundation for effective business management; by deciding what needs to happen next week, next year or over the next five years, a business can develop a strategy to meet its listed goals.

Organizing: This portion of business management implements a pattern of relationships among its employees to encourage the optimum use of the entity’s resources. Organizing is needed to utilize the businesses’ finite resources; effective use of resources is the foundation for reaching a desired level of productivity.

Staffing: This area of business management focuses on recruiting, analyzing and hiring individuals for appropriate employment posts.

Leading: Also referred to as “directing” in the business management model, leading requires the entity’s executives to determine what needs to be accomplished in a situation and what employees are best to fulfill such expectations.

Monitoring/Controlling: This phase of the business management process requires the leaders of the entity to monitor progress in relation to the plans and business of the business.

Motivation: A key aspect to the business management model, motivation is a basic function to maximize employment efficiency. By boosting morale, employees will carry-out their specific tasks in an effective manner.

Basic Roles of the Business Management Process:

Decisional Roles: Carried out by the entity’s executives, the decisional roles are required for decision-making purposes.

Interpersonal: These roles are necessary to effectively coordinate and interact with the employee base. Interpersonal roles are used to bridge the gap between the businesses’ executives and their employees; interpersonal roles are used to create a sense of uniformity and a team environment.

Informational: These roles are implemented to handle, analyze and share information that is important to the business.

Management Skills Needed for the Business Management Process:

Diagnostic: These skills are essential to the business management process because they analyze the appropriate course of action/responses to situations that may affect the business’s stability or health.

Political: These skills are used to build a foundation for the business; political skills are needed to establish connections with public bodies, the public and other companies.

Conceptual: These skills are required to effectively evaluate complex situations.

Interpersonal: A series of skills needed to bolster motivation and communication among the executives and employee-base of a company. Interpersonal skills are a fundamental aspect of the business management process because they enable executives to mentor employees and delegate tasks.

Formation of a Business Management Plan:

In the business management process, the mission of the entity is the most fundamental purpose. The vision of the company’s goals reflects its overall aspirations; this portion of the business management process specifies the intended direction of the company. The business management process also requires the entity to list its objectives. By listing objectives, the business will refer to the ends at which a certain activity is aimed—this gives the purpose’s tangible actions a means.

The business’s management plan is a guide that stipulates regulations and objectives; the management plan may be used by executives in the decision-making process and may be followed by the entity’s employees to bolster transparency and motivation. Regardless of its particular use, the business plan must be flexible and easily interpreted by all employees of the business.

The business management plan refers to the construction of a coordinated plan of action that lists the goals and the resources used to engage these goals in relation to the company’s long-term objectives. The business management plan provides guidelines for all members of the business; these instructions or regulations stipulate how the employees and managers ought to utilize and allocate the entity’s factors of production.

The Implementation of the Business Management Plan:

To effectively implement a business management plan, the following strategies and relationships must be formed:

The policies must be discussed with all executives, managerial staff and general employees of the business model.

All managers must understand how and where they can implement their strategies and policies.

A formal plan of action must be constructed for each department of the management plan.

All strategies and policies must be reviewed at least quarterly—the review of the business management plan will be evaluated to ensure that the provisions of the plan are properly aligned with the broader goals of the business.

Contingency plans must be developed to meet changes in the macro-economy or the environment.

The business management plan must actively assess the progress of the company as well as the actions carried-out by the top executives of the company

The construction of a sound environment and palpable team spirit is required for the business to be efficient

The objectives, missions, strengths and weaknesses of each sector of the business must be evaluated to determine their roles in achieving the broader mission.

A planning strategy must be created to ensure that all initiatives are consistent and that strategies are aimed at achieving the same objectives.

The above policies must be discussed with all executives and managerial personnel that are required in the execution of any department’s policy. Organizational alteration is achieved through the implementation of succinct plans. An example of a common business management plan will include the following steps: Increase the corporation’s urgency, create a vision, bolster communication, empower action, create short-term goals and victories, keep pushing towards the final objective and make changes stick.

Important Players in the Business Management Process:

The majority of business entities have three distinct management levels: first-level, mid-level and top-level executives or managers. These executives are classified in a distinct hierarchy of authority to perform different tasks aligned with the business model. In a number of organizations, these managers provide the business model with the following tasks:

Top-Level Managers:

This classification is comprised of a board of directors, a president, a vice-president, CEO’s, CFO’s, CLO’s etc. These executives are responsible for controlling, directing and overseeing the entire organization. The top-level management of corporations develops goals, strategies, and company policies and renders decisions on the direction of the business. Moreover, top-level managers will play a primary role in the mobilization and utilization of outside resources to effectively produce or supply the company’s product or service. Because of these roles, top-level managers are accountable to the general public and shareholders.

Middle-Level Managers:

This classification consists of general managers, branch managers and the company’s department managers. Middle-level managers are accountable to top-level managers for their department’s function. A middle-level manager must devote more time to directional and organizational functions of the business model. These individuals execute organizational plans in accordance with the entity’s policies and objectives of the above-listed executives. Middle-level managers discuss information and policies from executives and regurgitate the orders derived from these conservations to lower management workers. Most importantly, because of their everyday interaction with the general employee base, middle-level managers inspire and provide guidance to employees to promote more efficient performance.

Common functions of the middle-level managers:

Middle level managers will design and implement effective group work and information systems to bolster productivity in the business model.

Middle level managers define and monitor group-level performance indicators.

Middle level managers pinpoint and resolve problems among workers.

Middle level managers implement reward systems to support cooperative behavior.

First-Level Managers:

This group of the business management system consists of supervisors, foremen and the everyday experienced employee—individuals in this group are typically in charge of a few fellow employees. First-level managers focus on directing and controlling ground-level employees to effectively carry-out their work. First-level managers assign employee tasks and supervise these workers on day-to-day activities. These individuals ensure quality and quantity production; they will make suggestions and implement regulations to ensure proper compliance. A first-level manager will provide the following to employees:

Motivate employees

Supervise employees

Provide career planning services

Offer performance feedback

Process Management:

Business process management is an approach to business management that believes that all aspects of the organization should be aligned with meeting the wants, needs, and desires of the business’ clients. Business process management is a holistic management approach. This approach to business management strives for innovation, flexibility, and integrating technology, while promoting business efficiency and effectiveness.

A manager or company that subscribes the business process management approach to business management believes that the processes should be improved upon on a continual basis. Proponents of the business process management approach believe that this approach allows a company to be more efficient and effective, which in turn, leaves them more capable of changing to accommodate new conditions in a traditional, hierarchical management approach that is focused on function.

On a more general level, business management is the process by which the operation of a business is made possible through planning, organizing, staffing, leading or directing, and controlling a corporation, organization, or effort with the intent of accomplishing a specific goal. Often, at the highest level of a corporation, business management will involve setting these goals in the first place.

Business process management enables a company to abstract business processes from software or technology infrastructure; business process management goes far beyond automating business software or solving the entity’s problems. Business process management enables the entity to respond to changing market and consumer regulatory demands faster than its competitors—this effectively creates a competitive advantage.

This form of management is made tangible through the use of business process management software. Business process management software is a computer program that organizes a company’s business model; the software will align the company’s goals with its available resources to create a detailed business management plan.

When utilized business process management software or tolls will allow a business to engage in the following:

Business process management software or tools enable users to strategize processes and functions.

Business process management software or tools to develop a baseline for the process improvement

Business process management software or tools to develop a model, which will stimulate the change to the process.

The tools enable users to analyze simulations to determine optimal improvements.

The tools enable users to select and implement the suggested improvements.

To deploy this maneuver, the business process management software will provide user defined dashboards to monitor the improvement in real time. Business process management software will relay the performance information back to the user for the subsequent iteration.

The Facts on Financial Management

What is Financial Management?

Also referred to as managerial finance, finance management that concerns itself with the managerial significance of financial techniques in relation to a company’s business model; in short, financial management assesses a company’s balance sheet. Finance management is concerned with a company’s cash management, in relation to the costs of producing or manufacturing the entity’s products or services.

The fundamental difference between a technical and managerial approach can be inferred through the questions latent in a company’s annual report. Once concerned with the technical aspect would be interested in measurable: are funds being assigned to the right aspects of the business. By contrast, one concerned with financial management would inspect the meaning behind the calculations and subsequent figures.

What does a Financial Manager do?

A financial manager, will thus, compare the returns to other companies in their industry and evaluate how their business is performing in relation. If the financial manager’s company is performing worse than its competitors, the manager will assess the source of the problem, the entity’s profit margins and the expenses of all corporations involved in the evaluation, including employee pay. Furthermore, a financial manager will look at fluctuations in asset balances and inspect any indicators that signify toxic debt holdings. While evaluating these figures, the financial manager will also inspect the entity’s working capital to anticipate future cash flow problems.

The techniques utilized in money management (sometimes referred to as cash management or financial management) is an interdisciplinary approach that utilizes concepts from both corporate finance and managerial accounting. Adept financial management practices will promote organizational agility through the allocation of resources amongst competing business models and opportunities. In summation, financial management is an aid to monitor various business strategies and bolster an entity’s business objectives.

What is Cash Management?

Cash management is a broad term that denotes a variety of functions that aid businesses process payments and receipts in an efficient manner. Cash or money management services include a wide range of services, aligned with investing and balancing an entity’s cash reserves.

More specifically, in the American banking system, cash management also refers to a marketing term for certain services offered to larger businesses. Cash management can detail all bank accounts (savings and checking accounts) provided to business entities; however, it is more commonly used to denote specific services, including clearing facilities, zero balance accounting and cash concentration. Rarely are private banking customers awarded these cash management services.

What is Capital Management?

Within the broader field of financial management, exists capital management—a process used to illuminate decisions regarding a firm’s working capital and short term financing needs. This process involves managing the relationship between a company’s

Why are Marketing Ideas Important?

Marketing ideas are the lifeblood of keeping your business relevant and help you to reach clients that you may otherwise not be exposed to. While all businesses engage in some sort of marketing, it is the unique marketing ideas that keep businesses ahead of the pack. When you come up with marketing ideas that differ from traditional methods, your business can be put in a position to really out maneuver the competition.

How to come up with Marketing Ideas for you business

1. Identify your products, services, and clients

The most basic step before coming up with unique marketing ideas is to examine what you provide and who you provide them to. Try to ask yourself, what makes my product or services unique? Why should my client base choose my business over my competitors? What type of clients do I have? Only when you have fully identified everything about your business structure can you start to create new marketing ideas.

2. Evaluate your budget

Many marketing ideas that would serve any number of purposes for your company can be through of, however often budget constraints restrict which ones you can use. Consider what your marketing budget is and how it can best serve you through your client base. Budget constraints are very important, so do not break them unless you are completely sure that you have developed marketing ideas that will bring in more revenue than they cost.

3. Marketing Ideas

Once you have your ground rules for your products, clients, and budget restrictions, you now must consider different marketing ideas. Some marketing ideas include the following: Building a referral network can greatly increase the amount of clients to you have and your business relationship with other businesses, post your services in public places and pass out business cards whenever possible.

The internet can provide a host of marketing forms. Building a website can be the first step, but you can also use search engine optimization and link your website to content pages in order to direct traffic to you. You can even do some non-traditional forms of marketing, such as putting up viral videos of your business, hosting competitions, or combing the internet with real world advertisements.

4. Putting your Marketing Ideas into effect

Finally, once you have put your marketing ideas into a plan, you must implement them into action. Start by drafting your plan which will consider your client base, your overall business plan, and what mediums you will use to get your brand and advertisements to the client.

Start by contacting the media services that you will need, allocating budget funds to pay for the marketing, and finally monitor how your marketing ideas are having an effect. If you notice that your marketing ideas are not working or not being received well, you should not hesitate to modify them or pull them from your marketing plan.

Marketing Ideas for specific businesses

Marketing ideas are not all one size fits all for every type of business. Instead, you must evaluate what forms of marketing will best suit your company. Retailers, who are trying to garner the attention of the general public, need to focus on their specific brands they offer, their pricing, and their image. Therefore, it is important for retailers to have exciting visual marketing ideas, such as television commercials, print ads, and exciting websites.

Professional services or other similarly situated businesses need to reach the specific consumers who require their products, but cannot use loud marketing ideas. Instead, they should use more subtle and serious outlets for advertisements. Their websites should be serious and informative and any visual advertisements showing that your business has experience, prestige, and a hard work ethic.

Legal Issues

Always check to ensure that any marketing ideas you come up with do no violate trade or advertising regulations. These regulations vary greatly depending on your industry, where your business is located, and how you plan on contacting consumers. If you are unsure of the legal status of your marketing ideas, consult a legal professional who has experience working with business clients helping them adapt their marketing techniques to meet regulations.

Everything You Should Know About a Small Business

What is a Small Business?

A Small Businessis classified as a commercial endeavor that is operated on a smaller scale than its commercial counterparts. Although there does not exist a definitive parameter with which to qualify a business as a Small Business, a

Small Business will typically retain an employee base ranging from 1 to 15 individuals; furthermore, a Small Business will typically report lower amounts of revenue in contrast with larger businesses and corporations – with regard to the classification of commercial activity as a Small Business, the following are common examples of Small Businesses:

A Home business can be classified as a small business; a home business operating as a Small business typically involves the formulation and accomplishment of a multitude of tasks taking place within the home of the founder

An Internet business can be classified as a Small Business; due to the fact that maintenance of an online-based commercial endeavor can be conducted through the Internet, offices and large employee numbers are not always required

What is an Online Small Business?

Since the development – and subsequent advancements latent within Internet-based commercial activitytaking place through the internet marketplace – of ‘E-Commerce, or electronic commerce, Small Business opportunities can includethe provision of products and services available purchase and delivery through online-based commerce; the following are some examples of the most common types of online-based Small Business activities:

Web design, domain management, online consultation, and marketing development

The production of freelance media; this can include editing, writing, proofreading and research conducted on a ‘per-project’ basis

The manufacture, production, sale , and management of products or services; in many cases, this type of vendor-based Small Business will act as a third-party between buyers and sellers

Types of Small Businesses

A Small Businesscan include the provision of products or services conducted using one’s home or residence as a base of operations or an ad-hoc office. Individuals who engage in starting a Small Business may utilize their homes in order to eliminate start-up costs with regard to commercial activity and business endeavors; the following are some common types of products and services offered by in-house Small Businesses:

Consultation services, event planning, analysis, and project management

The provision of educational workshops, classes, lessons, and instruction; these may be conducted from one’s home

Home-based product assembly, manufacturing, and management

Retail-based commercial activity; this includes, vending, resale, wholesale, and consignment

Small Business Taxation

A Small Businessis subject to any and all pertinent taxation requirements; a Small Business that maintains employees, provide benefits, and possess liabilities must satisfy applicable tax documentation:

IRS Form 8829: This form is used in order to claim any expenses that are incurred as a result of operating a self-employed, online-based Small Business conducted from one’s home or residence

IRS Form 1040: This form is a standard form used for filing taxes; line 30 on this particular form entitled ‘Schedule C’ allows the owner of an internet-based smallbusiness to substantiate profits or losses as a result of operating an online-based small business within the realm of self-employment

Schedule C – EZ: This form is designated for a Small Business operating from a home or residential base of operation(s) that reports business expenses not exceeding $50,000

Investigations Continue Into Plywood from China

On November 9, 2012, the International Trade Commission (USITC) announced that continuing investigations allege that hardwood plywood from China was subsidized and sold for less than fair value in the United States. All six Commissioners with the USITC agreed that investigations should continue.

Hardwood plywood and decorative plywood is made when two layers of wood veneer are glued to a core of medium density fiberboard, particleboard, oriented strand board, or other types of lumber. The core is usually made of oak, birch, maple, poplar, or bamboo, and the wood is used on furniture, cabinets, underlayment, wall paneling, and more.

The Coalition for Fair Trade of Hardwood Plywood petitioned for the following individual members:

•   Columbia Forest Products in Greensboro, North Carolina
•   Commonwealth Co., Ltd. in Whitehall, New York
•   Murphy Plywood in Eugene, Oregon
•   Roseburg Forest Products Co. in Roseburg, Oregon
•   States Industries LLC in Eugene, Oregon
•   Timber Products Company in Springfield, Oregon

There were a total of 20 producers affected by the possible fair trade violations, and these producers are located in the following states: Arkansas, Illinois, Mississippi, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Virginia, Washington, and West Virginia. There were a total of 1851 employees with the affected producers.

U.S. consumption of the plywood products was an estimated $2,014,000,000 in 2011, and about $707.3 million of U.S. imports involved hardwood plywood from China. China exported the most plywood to the United States, for other countries only imported $632.7 million of similar products in 2011.

It is important to note that the investigation does not involve structural plywood, plywood used for cork faces or cork backs, multilayered flooring used for CVD/AD order, or other types of plywood that are used for anything besides basic finishing.

Source: U.S. International Trade Commission

Understanding the Law Behind Payroll

Payroll is the total of financial obligations to employees in terms of salary, bonuses and deductions for services such as transit reimbursement and health insurance. The effective functioning of payroll ensures that a business remains running optimally, which necessitates the hiring of additional personnel to perform payroll services in larger companies to manage payroll and ensure its timely and accurate payment. Without effective payroll management, employers can be prone to mistakes, noncompliance with the law and a host of legal liability issues. The employer is mandated by law to keep accurate records of employee payroll as well as make the appropriate tax contributions.

What are payroll taxes?

Payroll taxes are deductions made by the employer on behalf of the government to fund entitlement programs as well as income tax. Payroll services personnel may be needed to ensure compliance with state and federal laws on tax withholding laws. Taxes paid from payroll into Social Security and Medicare is matched by employers. Given that payroll taxes are usually an intersection of federal, state and local law, compliance can be difficult. Often there are a number of deductions for state disability, unemployment insurance as well as school and other programs that are held in trust. It is the responsibility of the employer to be in compliance with tax laws and hand over the withheld taxes to the government.

Employers are responsible for the following payroll taxes:

Social Security (6.2%)

Medicare (1.45% of wages)

Federal unemployment taxes

State unemployment taxes

Under the Federal Insurance Contributions Act half of contributions to entitlement programs are paid by the employer and the other half by the employee.

What are payroll laws?

There are a number of payroll laws and some laws may vary by state:

Minimum wage – although there is a federal minimum wage law, some states, like New York will require an even higher minimum age.

Overtime – the Fair Labor Standards Act mandates that overtime pay must be made when an employee exceeds forty hours worked in a week. Any subsequent hours worked must be compensated with “time and a half” pay. Exceptions include domestic workers that live with the employer who have a higher threshold for overtime. Certain other employees are not eligible for overtime such as salespersons, computer professionals and certain administrative or professional workers. A payroll or labor lawyer will be able to determine which employees are exempt.

Payroll tax – employers are obligated by federal law to withhold the above mentioned payroll taxes

Frequency of pay – employees are generally paid biweekly, but other arrangements include seasonal, daily, monthly and in some rare cases, semiannually or annually. Payroll taxes will be scaled to match this payroll period.

What are payroll services?

For smaller businesses that cannot afford to have full time personnel managing payroll, specialized payroll services exist with payroll software and trained professionals that keep track of payroll laws and changes that affect how payroll is disbursed to employees. Some payroll services may provide further services typically provided by human resources personnel such as tracking benefits plans. Payroll services offer a number of ways to disburse salary, usually through checks sent to the employee, but also newer options, such as direct deposit. Payroll services can also provide pay stubs to employees, although this is not required by law. Pay stubs are useful for an employee to keep track of the taxes withheld as well as earnings to date.

What is payroll software?

Small businesses may decide to use payroll software to automate their payroll needs. This software can calculate deductions and create paychecks as well as manage benefits plans. There may be issues with keeping the software current, which will lead many payroll software makers to offer live support, automatic updates, or ancillary payroll services to augment the payroll software made available to small businesses.