A number of businesses and financial analysts predict that the United States’ economy will grow only slightly in 2011, a bleaker forecast that was offered in July, when most entity’s called for a stronger improvement. 

In its quarterly industry survey of 70 corporate economists, the National Association for Business Economics found companies have truncated plans to hire new employees. Ironically, this same survey found that more firms are reporting higher sales than declining ones. 

The economists surveyed by the National Association for Business Economics expect scant growth, with approximately 82% predicting the GDP will increase by 2% or less from 2010. 3% believe the economy will actually contract, representing a seismic shift from July, when the majority predicted the GDP to grow by 2.1% or more and the Federal Reserve believed a jump by 2.5 to 3.0% was expected.  

The United States Commerce department is set to release initial GDP data for the third quarter on Thursday, the 25th. These muted expectations are taking a toll on hiring; a mere 29% of those polled said they expect employment to increase over the next six months—the lowest projection since January of 2010. 

Not much has changed. Small business owners continue to remain apprehensive regarding their long-term success and the health of the overall market. A recent poll conducted by Wells Fargo and Gallup, which surveyed over 600 small business owners, revealed that entrepreneur’s in the United States remain hesitant and unconfident in their hopes of turning profits and succeeding in the long term.  

This outlook represents an unchanged attitude; small business owners remain as confident as they did at the end of the recession two years ago. 

The survey shows that business owner’s post-recession confidence peaked in the beginning months of this year. Although these surveys do not serve as an absolute measurable, they offer insight on how a business owner feels about their own company’s prospects and the macro economy in general. 

The poll revealed that small business owners’ cite credit problems and the inability to secure financing as the main impediments to success. 22% of small business owners cited taxes and government regulations as the most significant problem. 

A short sale is a real estate transaction where the proceeds from selling a home fall short of the outstanding debts secured by liens against the property. A short sale is undertaken by an investor and a homeowner who cannot meet their mortgage requirement. The investor purchases the home below the mortgage amount (at a discount) and assumes ownership of the house. In turn, the seller’s mortgage is regarded as “paid in full” with the lender. The bank or institution who holds the mortgage agrees to the short sale because it rids itself of future losses in the form of foreclosure penalties or auction fees; furthermore, the lender eliminates a toxic loan from its balance sheet.

This transaction—which results in the property owner’s inability to repay the liens’ full amounts—is undertaken by the lien holders, who agree to release the lien and accept less than the original amount owed on the debt. The unpaid balance owed to the creditors (entity who holds the lien) is known as a deficiency.

Short sale transactions; however, will not necessarily release the initial mortgage holder from their obligation to fulfill any deficiencies attached to the loans, unless specifically agreed on between the lender and the seller. The short sale transaction is used as an alternative to a foreclosure because it mitigates reoccurring or additional fees to both the borrower and creditor. That being said, the short sale does not come without negative externalities; a short sale will often result in a negative credit filing against the owner of the property.

A foreclosure is the process by which a mortgage lender terminates an existing mortgage through a court order or by an operation of law. Foreclosures occur after the borrower (individual who takes out the mortgage from a bank to purchase a home) fails to meet the payment obligations outlined in the loan agreement. 

Typically, a lender will offer a mortgage to a borrower, and in turn, the borrower—now homeowner—will pledge an asset (the attached house) to secure the loan. If the borrower defaults on payments, the bank or mortgage holder can repossess or foreclose on the property. That being said, if the borrower defaults, then repays the debt, courts of equity can grant the homeowner the equitable right of redemption. When a home is foreclosed it is either auctioned on the open market or re-sold by the coordinating bank and Real Estate Company. The previous owner, in the simplest of terms, loses all connection to the house. To make matters worse, a foreclosure is reflected on an individual’s credit report.

If you are facing an economic hardship and you own a home, you may be wondering what to do with your property. When analyzing the benefits and differences between a short sale v. foreclosure you must gauge the effects in relation to your taxes, your future and your credit score. 

Most homeowners agree that a short sale is far more desirable than a foreclosure. In a short sale, you have the final say regarding the sale price of your home (note: the bank must approve the offer). Furthermore, you avoid foreclosure, get to know the buyer and rid yourself of mortgage payments or future payments (some banks may require deficiency payments). 

The prospect of purchasing a new home following a short sale or foreclosure is difficult; negative effects on your credit rating will dissuade lenders from offering you a new mortgage. That being said, the ability to secure a new mortgage at a quicker rate is possible after a short sale. 

Purchasing a new home after you have foreclosed is arduous; the process of rebuilding your credit to the point where you are eligible for a new mortgage could take up to seven years. 

When analyzing a short sale v. foreclosure, understand that both processes necessitate the delivery of negative information on your credit profile. A short sale will affect your credit score, even if you do not miss any payments—a lender will report a “paid in full for less than agreed” or “settled for less” on your credit report, notifying potential lenders of your inability to meet a previous mortgage requirement. 

That being said, a foreclosure will impose a more drastic effect on your credit score. The drop in your rating will depend on the amount of payments missed; however, the average foreclosure diminishes an individual’s credit by approximately 130 points.

Due to legislation—specifically the mortgage debt relief bill—a short seller will not face any Federal tax consequences at the time of the sale. When you engage in a short sale, the amount owed minus the amount of the selling price is considered IRS income; however, the mortgage debt relief bill eliminated the federal tax burden from the transaction. That being said, you will still be subjected to your state’s local taxes. 

A foreclosure will fall under similar legislation; debt relief will be provided until 2012. However, you are susceptible to a 1099 by the bank after you have foreclosed on. Furthermore, you will be susceptible a local tax depending on your state’s tax code; hiring a tax accountant is strongly suggested if you have foreclosed on your home.

What is Product Management?

Product management refers to the organizational lifecycle within a business entity’s model, dealing primarily with the forecasting, planning and/or marketing of a product at all points of the product’s lifecycle. 

Product management consists of fundamental procedures attached to the sale of an entity’s good, including product development and product marketing. The objective of product management is to maximize the entity’s market share, profit margins and sales revenues. 

The individual responsible for implementing the processes attached to product management is known as the product manager. This individual is responsible for assessing the market’s conditions and subsequently defining the appropriate functions and features of the entity’s product. In general, the role of the product management process will span a number of activities from tactical to strategic and will vary based on the organizational structure of the business entity. Furthermore, product management can be a function on its own or as a member of a broader marketing or engineering platform. 

Although the process is involved with the product’s lifecycle, product management’s fundamental focus will emphasize innovating new products. This characteristic of product management is affirmed by the practice’s grander association (the Product Development and Management Association) which states, superior and differentiated new products—those that deliver unique benefits and additional value to the consumer base—is the primary force that drives product success and profitability. 

Because of this statement, one can infer that product management has two fundamental focuses: the development of the product and the subsequent marketing efforts employed by the underlying business entity. 

Depending on the history and size of the corporation or company, product management will offer a variety of benefits and assume an assortment of roles. In some cases, a product manager will oversee all stages of the product management process; however, it is up to the discretion of the company to utilize a single employee or a team of managers. Regardless of the structure, a product manager will be evaluated based on a profit and loss metric. 

Product management will serve as an inter-disciplinary to effectively bridge gaps between teams of different functions or expertise within the entity. Most notably, product management will create a common goal between the commercially-oriented unit and the engineering-oriented unit of a company. 

A product manager will translate the product’s goals and objectives for marketing or sales into engineering requirements—this function creates a uniform understanding regarding the product’s specific goals. In contrast, this translation can be delivered to the Marketing and Sales teams, by elucidating the capabilities and limitations of the finished product. 

Conduct customer feedback

Launch new products

Human resources management refers to the management of a business entity’s employees. Although human resources management is referred to as a loose management skill, the effective practice of the application–within an organization–requires a specific focus to ensure that human capital can facilitate the achievement of an organization’s goals. For a business entity, efficient human resource management also contains a component of risk management which, at a minimum, ensures government or legislative compliance. 

Human resources management is a function within a business or organization that focuses on the management, recruitment of and providing direction to individuals who work in the underlying business or organization. Also known as workforce management, human resources management is the specific organizational function that inspects all issues related to employees such as performance management, hiring, compensation, safety, organization development, wellness, employee motivation, benefits, communication, training and administration. 

Furthermore, human resource management is a strategic and comprehensive approach to managing employees and the culture or environment of the workplace. An effective implementation of human resources or workplace management will enable an entity’s employees to contribute in a productive and effective manner to achieve the expressed goals and objectives of the said company. 

In general, human resources or workforce management will attempt to achieve the following goals:

• Human resources management aligns a company’s human resources department with their respective business strategy

• Human resources management will apply a team of administration experts to refurbish or organize the organization’s process

• Human resources or workforce management will listen and respond to concerns or issues raised by employees. When answered, these gripes or concerns are resolved, which in turn, yields greater efficiency. 

• Human resources or workforce management manages transformation and change; the application ensures the capacity for change.

Human resources or workforce management involves a number of steps. Together these processes aim to achieve the goals mentioned above. When agglomerated, this process can be performed in the entity’s HR department; however, some tasks associated with application can be outsourced or achieved by other departments or line-managers. When integrated, a human resources management application will provide a tangible economic benefit to the corporation or company. 

The following tasks or processes are instituted by a human resources management program or application:

• Recruitment (human resource applications or programs streamline the recruitment process for a business entity)

• Workforce planning

• Orientation, Induction and Onboarding (workforce management expedites the delivery of management training to integrate new employees to the business model in an efficient manner)

• Skills management (workforce management implements training procedures to quickly teach employees to perform in the most efficient manner)

• Time management (through the delivery of the aforementioned resources a business entity can effectively organize their employees and the productivity of the model)

• Payroll 

• Performance Appraisals (workforce management—through an evaluation-based software–will evaluate the effectiveness of an individual’s workday)

Operations management is concerned with designing and overseeing business operations in the production of services and/or goods. Operations management involves the responsibility of solidifying that a business’s operations are effective in regards to the efficient use of resources and satisfying customer requirements or concerns. 

Operations management is concerned with managing the processes that convert inputs into outputs—it is the evaluation that evaluates the use of labor, energy and an entity’s materials into tangible goods, services or products. This relationship is the crux of an entity’s efficiency; the ability to produce outputs in the most cost and resource-effective manner is the desirable approach for any business entity. 

The United States Department of Education defines operations management as a field concerned with directing and managing the physical and technical functions of a business model, including those relating to production, manufacturing and development of the underlying service or product. 

Operations programs will inherently include details concerning the principles of general management, production systems, plant management, equipment maintenance, manufacturing, industrial labor relations, skilled trades supervision, systems analysis, cost control, production control and materials planning. That being said, these variables will be applied (or withheld) to different degrees depending on the underlying business and the product or service they offer/manufacturer.

Operations management is applied by an entity’s team of corporate officer; high-level executives shape the strategy concerning the use of resources and production of the entity’s product or service. This process, which is perpetually revised by the entity’s high-ranking executives, is carried out and supported by the entity’s line officers. In a business model, the boundaries between these officers are not always transparent—tactical information will mold strategy and the individual’s role in the model will vacillate or change over time. 

Operations management evaluates the management of resources (including human capital) and activities that deliver or produce the services and goods of any business entity. An operation management professional will thus, manage people, equipment, materials and information that a business entity needs to produce and deliver its said goods and services. Furthermore, an operation management professional will design and subsequently manage the business model, activities and process that tangible produce or provide the goods and services. 

Operations management is a fundamental element of an entity’s everyday business; as a result, an operations management professional is a critical resource to bolster efficiency and productivity. An operations management professional will hold a variety of job titles, including production planner, materials manager, scheduler, transportation manager, purchasing manager, quality manager, supply chain manager and/or inventory manager. However, an operations manager—regardless of title—will implement uniform concepts and techniques to manage the resources of their business’s operations. 

Sales management refers to a business practice, strictly focused on the application of sales techniques and the management of a business entity’s sales operations. Sales management is a fundamental business function; net sales through the implementation of sales management—and more specifically the sales of products—results in profit, which of course, drives a commercial business’ operation. As a result of this basic necessity, sales management techniques will typically label the precise performance indicators and goals of a business or entity. 

Sales management is typically instituted by a sales manager—the title of an individual whose role is to practice or implement sales management. This role typically involves managing human resources, sales planning, the control of resources and talent development leadership.

Lead management is a term related to sales management; is a broad business practice used to describe the systems, methodologies and practices implemented to generate new business clients/customers, specifically attracted by the entity’s marketing strategy. 

A lead management application will facilitate a company’s connection between its outgoing advertising and the client’s or customer’s response to that advertising. This process is designed for business-to-business marketing and direct-to-consumer advertising strategies. Lead management, in many ways, is the precursor to sales management; the connection rendered by lead management facilitates the company’s profitability through the attainment of new customers, the establishment of a market brand and selling to the existing customer base. 

A business entity will typically employ the following lead management process:

1. The business entity will engage in a variety of advertising techniques to generate leads/potential clients

2. The recipients of the advertising efforts respond, effectively creating a lead or customer inquiry

3. The individuals who respond to the advertisers offer their information—this stage of lead management is referred to as “inquiry capture”

4. The captured information is then screened and filtered to determine validity 

5. The filtered information is then graded and prioritized for further inspecting/advertising

6. These leads are then delivered to the marketing and sales team—this stage of lead management is referred to as lead distribution

7. The sales team then contacts the leads to prospect them

8. All contacted and un-contacted leads are entered into a database; the leads are then either automatically or personally contacted to deliver a sales pitch.

9. The end result is—hopefully—a business sale. 

Sales planning is the basic strategy that drives an entity’s sales management process. Sales planning will establish a profit-based sales target, forecast expected sales, and establish quotas for the implementing business model. Furthermore, sales planning will evaluate the company’s demand management and execute the plan constructed by the sales management team. 

A sales plan is a formal document that affirms the entity’s strategy; the sales plan outlines the entity’s resources, business targets and sales activities. The sales plan will typically follow the lead of strategic planning, market planning and the broader business plan instituted by the entity. The sales plan will focus specifically on how the entity’s goals can be achieved through the tangible sale of the model’s services and/or products. 

Business Ideas are defined as individual opportunities that exist within the commercial market whose undertaking and facilitation results in the foundation of a functional business endeavor; Business Ideas range in their inherent structure – and as a result – the types of businesses that Business Ideas may render will also range with regard to ownership and operation. This article will provide some ideas and resources with regard not only to the classification, but also the analysis of Business Ideas.

Business Ideas – prior to their respective cultivation – will require individuals to set forth a great deal of planning and organization with regard to their respective implementation. For example, in the event that an individual undergoes the establishment of a business operating from one’s residence or home, the following circumstances may be applicable:

With regard to Business Ideas that may be implemented from a home office, any or all added real estate expenses – which include both renting and leasing – may be lessened

However, certain Business Ideas will require bases of operation that surpass the area afforded by a residence; furthermore, applicable taxes and expenses may vary in accordance to both residence and industry

Within the realm of business ideas, the nature of operations will typically vary between measures undertaken to adjust preexisting industries or business ideas implementing industries in development. With regard to electronic commerce, which is also known as ‘E-Commerce’ involve business ideas that will typically allow individuals who would not or could not typically possess the opportunity to interact within a physical basis in lieu of a virtual basis:

In accordance to the advancement of the electronic marketplace, many individuals and commercial entities undertaking have implemented business ideas through the use of virtual and technological modification within the realm of a commercial marketplace

The implementation of technology is considered to be innate within the vast array of business ideas

Business Ideas, regardless of their respective industry, will be subject to any and all pertinent legal requirements, which include taxation, insurance, and liabilities. Upon facilitating business ideas, individuals are encouraged to consult with an attorney with regard to establishment of applicable taxation and the expressed legal components of commercial operations:

IRS Form 8829 is a Tax Form required by individuals owning and operating small businesses

IRS Form 1040 is a Tax Form required by individual businesses claiming expenses with regard to tax withholding

Schedule C – EZ is a Tax Form required by individual businesses not exceeding $50,000 in profit on an annual basis

With regard to business ideas, there exist many scams and fraudulent practices that consist of ‘get-rich-quick’ schemes; despite any promises of guaranteed success, these practices should be avoided at all costs. In the event of uncertainty in regards to the validity of a business idea or commercial opportunity, an attorney or accredited business resource should always be consulted prior to engagement in any home business idea. 

An Entrepreneur is defined as an individual who typically operates on an independent level, apart from established business or corporations; however, an Entrepreneur may both work for a business, as well as operate privately. In a general sense, an Entrepreneur is classified as a venture capitalist; this entails an individual operating with regard to the facilitation, organization, and investment in business opportunities within industries not considered to be cultivated to their fullest potential. The term ‘Entrepreneur’ is believed to be derived from the French words ‘Entre’ – meaning ‘To Enter’ and ‘Prendre’ – mean ‘To Take’. 

The nature of an Entrepreneur is a vast one; this results from vast expanses of opportunities latent within this industry – however, a single method or ideology in which one becomes – or operates as – an Entrepreneur is not considered to exist. The following types of Entrepreneurial endeavors are amongst the most within the commercial marketplace:

A ‘Start-up’ business Entrepreneur is an individual who believes that investment and cultivation of a specific business or industry will render financial and economic gain. This ideology results from the fact that the specific Entrepreneur may believe that the industry undertaken within an investment endeavor is perceived to be absent of sufficient presence or representation within the commercial market; as a result, the following may take place with regard to this type of Entrepreneur:

Investments made to both fund and sustain a start-up business

The proliferation of marketing and advertisement campaigns

The organization of teams of fellow investors to fun the business

Turnkey Entrepreneur

A ‘Turn-Key’ Entrepreneur retains its titular name from the action of simply ‘turning the key’ in order to open the door to a new business, which was typically sold ‘as is’; this results in the fact that start-up costs and funding are not applicable as a result that the business was transferred in a state considered to working and operational. In contrast to a start-up Entrepreneur, a turn-key Entrepreneur will typically acquire businesses and commercial endeavors believed by that Entrepreneur to be absent of proper management and operation – this Entrepreneur may see potential within the value or growth within that particular industry, which may involve:

An adjustment of preexisting marketing and advertising strategies

Re-staffing and Re-hiring in tandem with the adjusted management plan and ideology

The composition of an updated business plan existing in concert with the adjusted turn-key business model

The United States Federal Government allows Tax Credits to qualifying commercial endeavors and Entrepreneurs responsible for the provision, substantiation, and maintenance of the employment of groups of individuals undergoing large-scale unemployment; these individuals may include Veterans of Foreign Wars, the elderly, and minors – such programs not only allow for the proliferation of employment, but also the administration of work experience, as well. As a result, an Entrepreneur engaging in either the adjustment or the foundation of a business considered to provide business opportunity and stimulation with regard to the commercial market may be eligible to receive tax credits and relief. 

A Business Plan Template is defined as a structured methodology of the itemization of the components latent within the process of both describing and illustrating a particular commercial endeavor. Although a standard Business Plan Template is not considered to be uniform, the necessity for a business plan in accordance with a certain variation of Business Plan Template is considered to be imperative within the structuring of a business or commercial endeavor. Many individuals consider the importance of a business plan – with regard to the development of a business – to overshadow the use of a particular Business Plan Template; however, a wide range of Business Plan Templates have been developed for use ranging from a particular industry to the size of the business in question. A standard business plan template with include the following:

Mission Statement

Biography and History

Financial Reports

Sales and Marketing

Operations Reports

Goals and Agendas

Prior to selecting a business plan template, individuals are encouraged to both explore and define the classifications and needs pertaining to their respective business; the following system utilized to select a business plan template may be helpful prior to constructing a business plan:

The components and tenets applicable to the facilitation, organization, and investment goals with regard to business opportunities will typically vary within respective industries. In certain cases, the industry applicable to a specific business plan may include the following qualifications:

A Business Plan Template may be directed towards investors and venture capitalists interested in commercial opportunities involving the cultivation of an industry in which there exists a wide variety of competing markets:

In this case, a suggested business plan template is one that will allow the individual business owner to illustrate the benefits and advantages latent within their respective business; this may include financial statements, goals, and strategies employed in order to separate themselves from the competition

A Business Plan may be furnished for investors and venture capitalists interested in commercial opportunities involving markets that are considered to be both untapped, new, or not reaching the height of their respective development:

In this case, the suggested business plan template is on that expressed the innate benefits within an industry considered to possess inherent potential and prospective profitability; this can be achieved through the presentation of consumer statistics and the intended commercial operations undertaken by that business

In the event that a business’s interests includes the development of strategic partnerships and expansion of associations and teams, the following may apply:

The suggested business plan should be geared towards commercially-minded administration; the business plan template employed should not only illustrate the profit experienced, but should also convey projected profits and economic gain within the market

In the event that a business required additional funding through the facilitation of investors or venture capitalists:

The suggested business plan template will typically include financial information and statistics geared towards financially-minded individuals; in many cases, this business plan will not only suggest sustainability, but also the potential for growth