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Are You Aware Of The Dangers of Forex Trading

It's estimated that 90 of start-ups succeed). Then why is Forex trading considered risky?

Forex trading is quickly gaining ground as one of the most popular ways to earn money from home and it is without doubt a very lucrative business. However few traders are familiar with all the details and complications of currency Trading and most ignore a very important aspect: risk. Forex gives you a chance to invest your money successfully, but that is not enough! You have to be careful because Forex trading can be both an profitable home business or it can be a source of a major headache.

What are the well known risks of Currency trading which is known will easier be avoided by beginner traders?

• First of all, every investment bears risk. Its written in the fine print of CFTC every document, of every brochure of every financial institution managing people's investments, including mutual fund companies, credit unions, major commercial banks, etc.
• The currency market in general is actually quite stable. Compared to the stock market the Forex market is way more stable. Also there is no insider trading and the news come out at times which are known in advance. However the volumes traded on the Forex market makes even the smallest change in the rates seem significant.
• Fluctuations in currency prices, discrepancies in interest rate differentials between two different countries, large volume transactions and limited flow of exotic currencies will have an effect on the market.
• Large profits and minimal losses are impossible to predict with 100% certainty.
• The Forex trading market has great winning potential, but it also has a potential for losses.
• Poor money management (no Stop Loss orders) and emotional baggage are most of the time a cause of loss. Use facts, not hope or fear, when trading.
• Huge leverage is provided to traders. If not managed properly, this leads to dangerous positions that expose the account to unjustified risk .
• Lack of money management or no general trading plan are the mistakes that currency traders make sometimes.
• Choosing an unreliable or dishonest broker can lead to problems as they can widen spreads during volatile market conditions affecting the retail trader. They can even refuse to trade sometimes. Choosing a reliable broker is essential to your success.
• Scams were very common years ago when dealing with a broker. However, one can be confident in company one is working with by checking their background and the Institutions they are associated with (large banks, important insurance companies).

Don't be discouraged! Forex isn't all about risks. And have this in mind: If Currency trading isn't profitable then why are so many financial investors, banks, international institutions and important players that obtain huge amounts of cash by simply turning their own money into other currencies?

All Currency traders have to be very well informed about their field and activities. They have to know technical analysis and how to read and interpret charts, they have to develop effective strategies and minimize risk. The financial exposure has to be limited and this can be done in many ways.

So, spend some time to educate yourself on the topic of Forex trading. Think of the rewards Forex trading brings and you will realize that this will be a time well spent and definitely - worth it! Be prudent, never risk more than you can afford and always trade with a Stop Loss.

Would you like to learn how YOU can become a successful Forex trader? Read more here http://www.fxsoftwaresolutions.com

Start a Craft Blog to Make Money Online

An online blog may be the perfect place for you to start sharing your love of crafting. How would you also like to make money while you blog? Journaling online, called blogging, allows you to share your beautiful crafts and your talent with other crafty people. With simple to learn, free applications like Blogger.com or Wordpress, you can choose templates to suit your style. Your craft blog can be personally designed to illustrate:

Pictures: Post plenty of clear pictures of the items you made to show others what you can do. You may want to include before and after pictures if you are using common household items or if you are re-purposing other items to make your crafts. Take photos of each stage during the crafting process, and you'll get regular blog readers very quickly. Use a high quality digital camera to capture the true beauty of your crafts.

Detailed material descriptions: Your fellow crafters are interested not only in how you make your craft, but what materials you use. Crafters recognize a certain brand of material, or a specific color, or shape, and will shop for that item because they want their version of the craft item to turn out like yours. Not only will your reader's craft turn out more like yours if they know what items specifically to purchase, but when you use exact sizes, shapes, and names of materials, the search engines will find you and your craft as people search the internet using the words you use in your description.

How To: It's always a wonderful idea to include a How To for some of your more popular or intricate crafts. This allows others to learn how they can make their own version of the crafts you have on display, for personal enjoyment or gift-giving. If you have a craft that's uniquely yours, you can even patent it and sell the instructions at a small cost to the reader.

Materials list: When your readers walk into the craft store, they want a complete list of materials to make their shopping easier. You'll want to include all colors, sizes, and measurements in great detail and accuracy. Include where your readers can find the materials needed and any additional descriptions and possible substitutions if needed. Additionally, when people visiting your website duplicate your craft and it turns out great, they are more likely to tell their friends about your blog -- so be sure to explain exactly which items they should purchase and where they can find them.

Selling ideas and crafts: Some of the best money-making opportunities for you could be selling your own crafts directly from your blog. You will see a quicker return on your investment if you can turn your own crafts and ideas into sales. By personalizing gifts during high gift-giving seasons like the Holidays and birthdays, you will quickly benefit from your growing crafter's blog. You may wish to set up a storefront on a site such as Etsy.com or eBay.com. You may also consider selling the patterns you've developed for your crafts, the templates for designs, or even selling advertising space.

When you craft, you know you've put in more than time, patience, and talent. You've invested your hard-earned money, too. Learn how blogging about your crafts can turn your interests into a money making venture. Why shouldn't you share your love of crafting with the whole world and make money in the process!

Forex Trading Training Takes you to the Bank Quicker Than any Other Path to Financial Independence

In today's world, where all of us are starting to wonder where our next pay check is going to come from. I know many of you have come to the conclusion it is time to stop depending on companies and other people for your financial welfare, but to find a way to only depend on yourself. Below I am going to discuss a proven extremely high quality Forex trading training program that get you started quickly and inexpensively down the road to financial freedom.

If you want to start making money quickly, don’t have a lot of money to invest in a Forex course and really don't have much time to spend learning currency trading I have the class for you. It is very simple to understand and easy to start trading with. I have used this method for years after I first discovered the program.

The great thing about this is you only follow what we in the industry call a, "Forex Indicator." If it tells you to buy, you buy. If it tells you to short, you short. Don't worry if you don't know what short means, they will teach you in the class, it is easy. Another great aspect to this program is that it is very low risk. Don't worry, low risk does not mean low rewards.

This is a currency trading method called, "Forex Scalping." This means you get in and out of the market very quickly trying to make a 5% profit on each trade. The winning percentage is very high, but of course it is not perfect and you do have loses. But, those loses are small and don't hurt you too much.

It is possible, in fact it is probable you will double you initial investment every fifteen days with this program. This is one of, if not the most popular training class on the internet with literally thousands of former students that swear by the program. They love it because it has consistently made them money for years in the markets and it does not matter what the market conditions are at any given time.

I am sure you have heard enough already and want to know the name of the Forex trading training program already. It is called Forex Made E-Z and was developed by a retired pilot looking for something to do with his spare time. Since it was discovered and designed by a lay person, this is one of the principle reasons it so uncomplicated to make money with. If you have time, please fell free to check out there web site.

There are many fine Forex Courses, Software Systems and Brokerage Firms on the market today. We have eliminated the rest and only kept the best to help you LEARN CURRENCY TRADING ONLINE. For 100s of FREE Currency educational articles and tutorials check out FREE FOREX TRAINING.

Starting Your Own Home-based Solar Energy Business

Our home-based solar energy business entails no up-front costs or fees, unlike many other work from home opportunities. We do ask that you invest time in educating yourself and in turn educating the consumer about renewable energy. It is the perfect time to join the solar revolution.

The cost of oil and natural gas continues to rise. CO2 emissions and the release of Greenhouse Gases (GHGs) are changing the climate. The support and management issue related to an old energy grid erodes security.

The need to adopt and upgrade the American home to solar energy has never been more apparent. Emerging U.S. companies are ensuring that residential customers are afforded the opportunity to take advantage of renewable technologies through innovative solar system rental services. Companies are positioning the rental of solar panels and entire residential systems as a means to modernize the U.S. energy infrastructure, to increase global energy supplies, and to provide methods for entrepreneurs to create home-based, solar energy businesses.

Photovoltaic (PV) technology is evolving rapidly to address today´s global climate and energy challenges. With the solar revolution comes unequaled opportunity. It offers excellent business growth for work from home, solar energy consultants who want to create a way forward. The following outlines the requirements to starting your own home-based solar energy business.

* Step 1 - Understanding the Solar Energy Business Offering
* Step 2 - Creating a Structure for Your Home-Based Business
* Step 3 - Registering and Completing the Associate Training
* Step 4 - Receiving Ongoing Small Business Development and Support

Home-based businesses, particularly in rural or small town settings, are helping many people achieve the balance between economic prosperity and personal well being. Home-based businesses are now recognized as a viable source of new jobs and economic growth. Entrepreneurs are creating their own alternative jobs from home rather than seek corporate employment.

The home-based, solar energy business explained here has a great mission. Its grassroots goal is to spread the use of clean, renewable power as simply and as rapidly as possible. This solar rental service has removed many of the challenges associated with both the use of residential solar energy as well as the entrepreneurs wishing to start a work-from-home business.

The solar industry´s dramatic expansion is both exciting and a movement worth of crafting a new small business around. A solar powered home is becoming more and more popular and finally more affordable. Many home owners are opting alternative powered water and pool heaters that can be run off of rented solar energy systems. Solar plants consume little or no fuel, saving billions of dollars year after year. The infrastructure would displace 300 large coal-fired power plants and 300 more large natural gas plants and all the fuels they consume.

Solar does seem about to become a major player in the energy market. Solar energy systems are now rentable. Solar module brackets, solar module frames and profile channels according to the present invention can be formed of any suitable material with the entire solar energy system packaged up for one day installations and rental options that lock in the cost of energy for up to 25 years.

Starting a home based solar energy business has many rewards and challenges. Starting a business is a big responsibility that includes commitment, professionalism, training, and self-discipline. It involves careful consideration, such as what type of competition you'll encounter and the demand for the solar rental service you can expect. Start searching for your next dream job by investigating the options exploding in the renewable energy industry.

Bullion Trading

Well! Stock trading has all along been the ideal hunting territory for investors, traders and daily spinners. It brought on its trail, the concepts of commodity trading. Soon forex picked up to become a 200 trillion dollar daily enterprise and bullion is not doing badly either.

Bullion trading encompasses gold, silver, precious metals and associated products which are traded through over-the-counter bullion trading platforms .US already has many decentralized units splashed all across its territory which enable bullion trading. Few countries have become price makers and left the tag of price takers far behind the toe-line. This is amply exhibited by how these countries are reacting today through the ever looming recession, focusing chiefly on bullion clouding.

The oil prices have led to the hottening up of bullion trading and it seems that drying liquidity and cabinet proposals may look to be instrumental for bullion market in recent future.

Domain expertise and best global trading practices help in setting price lines for gold trading with the most precise pricing mechanisms followed over the counter in most of the bullion trading countries.

Bullion trading requires a meticulous centre for hallmarking that can facilitate the procedure of setting gold and silver prices in accordance with the top systems. For instance, South East Asia looks up to the AM/PM system in London.

The concept of Spot gold has been traveling all through the arc of western bullion market. Spot gold trading is put forth for settlement two business days from the day of trade. Here, business day is defined as a day when both London and New York bullion exchange are open. Supply and demand theories do not move the gold market that much. It’s the interest rate differentials along with spot prices which are instrumental in freezing and melting the bullion market. This determines the volatility or the lack of it as far as gold price movement is concerned?

Interest rate for gold is obviously below intra country interest rates. This is so precisely because it would encourage gold borrowing and let the central bank monetize in chunk through their colossal gold holdings.

Today, bulk of gold and silver trading is done at the over the counter market. An optimum chunk of bullion trading is also done over internet medium.

Also, the banks are promoting the purchase of gold and they are trying to lure retail investors with handy perks to speed up the process of gold sale.

Please visit http://www.bullioncity.com for more information.

Get More Traffic With Wordpress

Blogs have become very powerful and can do fantastic things for a business. Because they are very Search Engine friendly they can work to increase traffic to your website very quickly.

A blog is simply an easy way to share your thoughts, ideas and even promote your products or services. People are on the internet searching for information that interests them and once they find a site that provides good updated content about their interests they will most likely keep coming back for more

Implement some of these strategies and you'll see traffic building fast.

1) Wordpress is the best blogging platform

I recommend Wordpress self hosted platform for a number of reasons. If you're into Internet Marketing or just Blogging for the long run you'll want to brand yourself and make it easy for people to find your site.

2) Get your own domain name

As I mentioned before you'll need to brand yourself and having a domain name related to your product or service is the first step. There are many hosting companies that offer great service and pricing but Hostgator is one of the best in my opinion. They will help you to set up your Wordpress blog or standard website.

3) Choose your Wordpress template wisely

There are so many free Wordpress templates available that it can become overwhelming. To start with choose one that is visually appealing and that is plugin ready. Plugins are free as well an can add additional functionality to your Wordpress blog.

4) All in One SEO Pack pluging is a must that will help to increase traffic

The -All in One SEO Pack- will help optimize your Wordpress blog for Search Engines. - It automatically optimizes titles for search engines - Generates META tags for you, - Avoids duplicate content that can be a problem with Wordpress blogs

5) Google XML Sitemap plugin

This plugin will create a Google sitemaps compliant XML-Sitemap of your WordPress blog. It will support pages Wordpress and custom pages. Every time you edit or create a post, your sitemap will be updated and all of the major search engines that support the sitemap protocol, like ASK.com, Google, MSN Search and YAHOO, are notified about the update.

6) Content for your Blog

You will need to work on creating original content for your site and updating it on a regular basis. Content refers to the articles or postings that you write and publish on your blog. It should be relevant to your niche so that when people search for information about your niche they can be referred to your site by the search engines.

7) Getting more traffic to your site

There are many free ways to get additional traffic to your blog. Article Marketing is one way. Posting comments on related blogs is another and visiting forums and becoming part of the community will also get you more visibility.

Having a popular and successful blog will take some time even though some may tell you otherwise. It will take hard and consistent work as well as good content and the willingness to educate yourself about SEO and web traffic. If you will take the time to write good content and work on getting traffic you will have no trouble increasing website traffic over time. Staying focused, having a plan and not giving up too quickly. After building a readership you will be able to keep them coming back as long as you post on a regular basis and give your readers information they're interested in.

Basic Internet Marketing Strategies Using Google Adwords to Market Your Small Business Online

Using these Internet Marketing Strategies to market your small business online will get the best return on investment and allow you to dominate your competitors plus you will be paying less for your clicks than your competition.

You don't have to be afraid of the Google slap when you apply these basic rules when using Google Adwords.

When you are using Google adwords for an affiliate campaign your job will be to pre-sell the prospect before they go to the company sales page. There are several ways to do this.

When you are writing copy for your pre-sale landing page keep in mind you are helping someone find a solution to their problem or pain. People will always move away from pain into pleasure, you just have to show them how.

If you always keep solving the person's problem your focus you will never have to sell them, they will want the solution you are offering them.

Google is doing the same thing. Their concern is on the millions of eyes that read their search results and ads. These are the people they are trying to please by giving them what they are searching for. So if you always keep your solution as relevant and targeted to the problem of your prospect the easier it will be to sell the product.

When you do this Google will reward you by charging you less for your clicks. The people in the number 1 spot of the Google sponsored links are paying less than the people below them. It is all about relevancy.

Give the people what they want and Google will give you what you want.

The best way to do this is to keep your keywords, ad copy, ad groups and landing pages, all congruent. If you do not follow these simple principles Google will raise your cost per click, ban your ads and slap your pages. Google can suspend your account for as long as they want also.

This is not a good thing because Google is really the only game in town for advertising if you are talking reaching the major part of the market. It is much more effective to learn to give Google what they want, which is to satisfy the people searching.

Buyers know what they want and are on Google searching for it. There are also other ways to use Google Adwords in the content network. Most marketers just focus on the search network because the buyers are more aggressive. The content network can be a goldmine if you write your ad copy with thought streaming in mind.

Keeping these basic ideas in mind when using Google adwords to market your small business online will help keep your expenses down and keep you from being banned by Google. These internet marketing strategies will greatly increase your ROI when you market your small business online.

Search Engine Optimization Tools Available

When you have a website online it is absolutely essential that you optimize the website. Without the optimization the website is simply a shell. Think of your website as a car, without an engine it can't run, right? Well that's the same way your website is. You can spend thousands of dollars getting it designed, making a personalized logo and you can sit there and wait for traffic as long as you want; but it might never come without the proper optimization.

Search engine optimization allows your website to show up on the search results of engines like Google, Yahoo and MSN. Without it you're just a sitting duck. With it, however, you will receive better PR (page rank), visitors, views, and potential sales depending on what your selling. By definition, Search Engine Optimization or SEO is the process of improving incoming traffic to a website from Search Engines. This can be done naturally or organically.

One of the most important things that involve SEO is content on your site. As the professionals say "Content Is King." You want your site to be content rich with many different keywords within the site and through the content on your site. For instance, if your website is about electronics, then you would want to include keywords about DVDs, MP3s, TVs, etc. Of course SEO goes a lot farther than just the actual content on your website, it also has to do with the tags, meta tags, titles, and coding on your website.

If you don't have the right keywords or tags on your site, you can never be found. Unfortunately a lot of people have no idea how to do these types of things so that they will show up on the results of the search engines and this is where the professionals come in! Last month I was looking around online for a few businesses that could actually do the SEO process for me on my website because I am absolutely clueless when it comes to that stuff and I found some really cool sites that can seriously help you out.

These optimizers won't only help you optimize your website so that you become indexed, show up on search engines, and get a better page rank but, they also introduce something called localized search engine optimization which allows you to place keywords and tags on your site that will bring localized users to your website.

This is terrific if you have a website that is localized and want to receive people that are specifically looking for you. So instead of having tags like "Electronics" on your website, you can do something like "Electronics In Vegas" or "Electronic Stores In Vegas". This will not only bring you visitors from around the world but it will also bring fellow Vegas people directly to your website. Plus you can better PR with something that has a localized tag rather than a broad tag like Electronics.

This will bring you a ton of business! If you have a website and you are not getting traffic, views, sales, etc; you might really want to consider hiring someone on. These optimizers are cost efficient, time efficient, and they could raise your profit margin within your business! This is something you really need in order to "make it" in whatever industry you might be in as of now. I know for me personally, it has helped me out tremendously.

First off I didn't have to do any hardcore reading or researching and I didn't have to go through the headache of trying to figure out SEO by myself which also saved me a lot of time. Secondly, I may have spent a few bucks to pay the master optimizer but in turn I ended up making threefold simply because my website shows up on Google a lot more now! And lastly, I finally have the comfort in knowing that I can count on someone to make my website "work" for me, instead of the other way around! In the end, this could really take a lot of stress out of your life so you can start focusing more on your business and less on your website!

Making Data Administration a Part of Your Small Business

At some point it will happen to every company no matter how big or small they are. System failures, data loss and IT inefficiencies not only cost bigger corporations millions of dollars a year; it can cost small business as well. The impact to a small business can be greater than a bigger business due to the limited resources that a smaller business have. However, the same steps that a multi-billion dollar corporation takes can also be taken by smaller business to ensure minimal impact to their daily operations and cash flow.

No business can handle a prolonged work stoppage due to system failure but many business a year suffer from these issues when simple database administration could have helped to get their work force back online with minimal impact. Several factors of database administration help to keep everything working smoothly. One of the most important functions of a database administrator is to keep functioning backup files updated and readily available for deployment in the event of data loss.

Security is also a key component of proper database administration because a secure network is less susceptible to hackers and less susceptible to downtime cause by virus. Along with this, testing performance of the network is a vital part of a consistently working network that will ensure all employees have access to the intranet.

This may sound daunting and overly complicated and for a person whose business is not in system technologies it can be. This is the reason why systems are vastly under monitored and receive little maintenance. Often small business have very little redundancy or back up built into their network and the slightest issue can cause massive down time until a third-party company can be brought in to correct the issue. Reactive maintenance is always more costly than preventative maintenance so being prepared will always help to save resources.

If you are one of those who struggle with understanding the best way to protect your network and keeping your business secure with the use of data administration just simply isn’t your area of expertise then getting on board with a qualified service partner is going to be the best alternative. There are companies out there that can help you set up and deploy data automation and data administration services for a cost effective and minimal investment. These companies have been an important part of helping small business understand and deploy workable solutions to help minimize negative impact to their businesses.

How To Become A Super Affiliate In Niche Markets

Over the past years, web hosting has grown bigger than it applied. With more companies arriving into this business and finding the many profits it can give them, the demand for web hosting has never been higher. These seem to be the trend of today.

38 million people have put up their very first websites online this year 2007 alone. It is estimated that by 2008, the internet sales industry will top then dollar bank. And to think, majority of those sites will be offering different affiliate programs for people to choose and participate into.

This only means one thing. It is easier now to find the right web host for your application. The possibility of quality web hosting companies separating themselves from the rest of the industry is anticipated. If this is done, the unprofessional and incompetent ones will suffer.

Support will be the number one consideration for people when choosing a web host. It will be obvious that traditional advertising will become less and less effective. Most people would rather opt for the web host based on things that they see and hear. Also based on the recommendations by those who have tried them and have proved to be a successful.

This is a great opportunity for web hosting affiliates and resellers alike. There would hundreds of web hosting and programs to choose from that the difficulty in finding the right one for them is not a problem anymore.

How does one become a successful affiliate in the niche markets using web hosting?

If you think about it, everyone who needs a website needs a web hosting company to host it for them. As of now, there is really no leading hosting industry so most people choose hosts based from recommendations. Usually, they get it from the ones that have already availed of a web hosting services.

With the many hosts offering affiliate programs, there is the tendency to find the one which you think will work best for you. Think of the product you will be promoting. Pattern them to the site and see if they are catering to the same things as you are.

When you have been with one host for quite some time and seem not to be making much despite all your effort, leave that one and look for another. There is no use in trying to stick to one when you would be better off with another one. Things will only have to get better from there because you already have been in worst situations.

Try this out. If you are quite happy and satisfied with your web host, try to see if they are offering an affiliate program you can participate on. Instead of you paying them, why not make it the other way around; them paying you. The process can be as easy as putting a small "powered by" or "hosted by" link at the bottom of your page and you are already in an affiliate business.

Why choose paying for your for your web hosting when you do not have to? Try to get paid by letting people know you like your web host.

Always remember that when choosing a web host, choose the one that is known for its fantastic customer support. There are also many hosting affiliate programs. Residual affiliate program is also being hosted. This is the program wherein you get paid a percentage every month for a client that you refer. This can allow you to have a steady source of income. With perseverance, you can even be quite successful in this field.

There are a lot of niche markets out there just waiting for the right affiliate to get across to them and make that bucks dream come true. Knowing which one to get into is being confident enough of your potentials and the good results you will be getting.

Web hosting is just one affiliate market you could try out and make some good and continuous income. Just remember that to be successful on your endeavor also means that time, effort and patience is needed.

Nobody has invented the perfect affiliate market yet. But some people do know how to make it big in this kind of market. It is just knowing your kind of market and making the earnings there.

My Name is James AVP of Qcom.Net, we give a helping hand in the area of self help, self improvement and personal development through our ebooks which helps in changing ones life for a better being for that leap we all deserves. Also in the area of Internet Marketing and Online Home Business opportunities. http://www.limitlessincome4real.com

Article Source: http://www.ArticleBiz.com

Dental Practice Management Consulting Adviser Lloyd Irvin on Traffic and Conversion

In this article, dental practice management consulting adviser Lloyd Irvin will share to you the importance of “traffic” and “conversion” in online dental marketing. The dental practice management consulting adviser will share to you the definition of traffic and how getting it to your dental website is a must in online dental marketing. And the dental practice management consulting adviser will also share to you the definition of conversion and how to find your conversion rates in online dental marketing. And this is something that we focus specifically at our dental practice management website!

Here's what the dental practice management consulting adviser will share to you about traffic and conversion:

On Traffic:

What is “traffic”? Traffic refers to the number of people coming in to your website daily through the Internet. Before, people use the yellow pages to look up and search for things they want to buy. Today, although some people still use the yellow pages, there's an entire sector of people that if they want to go and buy things that they want, they go to the Internet, use search engines like Google, Yahoo, MSN, wherein they type in whatever they're looking for and they spend time just trying to find out what they're looking for, and they do their research online! As a dental practice management consulting adviser, I would tell you to understand this fact: traffic=real people! Hundreds and millions of people are searching for things online every single day. Online, they look in for Cosmetic Dentistry, Implant Dentistry, dental terms, etc. People are searching on the Internet because they have problems, desires, and want them fixed/achieved right now! In online dental marketing, your job is to make sure that you get these people into your dental marketing website, and into your dental practice as well!

On Conversion:

What is "conversion"? Conversion means that the people visiting your website becomes your new patient (and this should be your goal for your dental marketing business!). As a dental practice management consulting adviser, I would tell you to structure your website in a way that you get people to enter their name, contact number, and personal information, and then they would call your office and they officially become your patient in your dental practice! Now, conversion rates can be found in four areas:

• Website Opt-In Rate: If you have a website and you are collecting names, e-mails, and full contact informations, you can track down and see what your conversion rate is with this. If you are using postcards or any other kinds of media, you can track your conversion rate for your online traffic.

• Website Call-In Rate: You can also have conversion using call-in rates; wherein potential patients call into your office through your website, and in the process, they become your dental patients!

• Office Appointment Rate: For this, as potential patients are calling into your dental office, you can get your staff to have useful "scripts" that they can follow so that there's a big chance of getting that potential patient into your dental practice. And having these scripts will definitely make a big difference in your practice!

• Auto-Responder Conversion Rate: Now, a lot of people have heard about the auto- responders, but are the e-mail that are in the auto-responders converting? If you have a 10-step auto responder that is automatically done, what is the percentage of people that call your office after they get e-mail#1? Or e-mail#2? Or e-mail#3? Or e-mail#4? You should also be converting these. Imagine this, if you track your results, you found out that 40% of those people got email#4 and called; and only 5% called from e-mail#1; 15% called from email#2; and 20% called from e-mail#3. With this, you can move e-mail#4 to position#2. In here, we're trying to get them in as fast as possible! And while there in your auto-responder if your email#4 came in one day into position#8, but on that same day people are on Google looking for a dentist, and if they also opted into your competitor's website, and your competitor's first e-mail got them, then you've lost them! And if losing them is worth, say, $20,000.00, you should be concerned and worried, and you should be interested in how you can improve that!

Now, given these facts, as a dental practice management consulting adviser, I'd tell you to get as much traffic as you can into your website, be mindful of your conversion and track it down always, and increase both your traffic and conversion in order for you to make more money in your dental marketing business. Always remember and keep in mind my "magic formula": Traffic + Conversion = Cash!

Superior Leader - Warren Buffet

Superior business leader and American investor Warren Buffett is often called “Oracle of Omaha” or the “Sage of Omaha” and philanthropist. (Wikipedia, 2007) Buffett is the CEO, and the biggest shareholder of the Berkshire Hathaway Company. Buffett’s has an estimated current net worth of approximately $52 billion in US funds. Forbes Magazine ranks Buffett the third richest person in the world in September 2007 behind Carlos Slim and Bill Gates.

Warren Buffett is known for his economical and plain lifestyle. Buffett still lives in the same Omaha, Nebraska house that he purchased in 1958 for $31,500 with a current value of $700,000. In 1989, Buffett spent $9.7 million of the Berkshire’s funds on a corporate jet. He jokingly named it “The Indefensible” because of his past criticisms of such purchases by other CEOs. (Wikipedia, 2007)

Warren Buffett decided to make a commitment to give his fortune to charity back in June 2006. Buffett’s charity donation is approximately $30 billion, which is the largest donation in the history of the United States. The donation was enough to more than double the size of the foundation with 83% of it going to the Bill and Melinda Gates Foundation. Buffett believed that his family had enough money to get started in life so Buffett decided to give his fortune to charity. Buffett’s annual salary in 2006 was only $100,000. In 2007, Buffett was listed among Time Magazine’s 100 Most Influential People in the World. (Wikipedia, 2007)

What makes Warren Buffett a good business leader? This is what everyone wants to know because Warren buffet is so successful. It all starts with leadership. Warren buffet is a true leader where his leadership makes a difference in the world. Leadership is very much related to change and Warren Buffett has the capabilities of leadership change to fit the changing world. Warren Buffett has repeatedly demonstrated the ability to map read in the irregular waters of change. Is Warren Buffett born a leader? The authors of this paper believe not. Experience and research has shown little evidence that an individual who comes to power is a “born leader.” Warren Buffett took the falls that any other leader has to take. Warren Buffett learned from his mistakes and turned his mistakes into a positive thing. Warren Buffett shares his leadership at all organizational levels and Buffett is empowered to share leadership responsibilities. In the world of business, many titles related to leadership roles are actively used in business and Warren Buffett wears those titles to make him effective in multiple leadership positions in business. Distinction between good leadership and good management is made often. Managers are made to be organizational, controllers and budgeters. Warren Buffett has leadership in all three departments and one must have these traits to be a good business leader.

Another important trait in Today’s business leadership is communication. Warren Buffet is a skilled communicator in all aspects of life. Communication is the real key of leadership. Skilled communicators have an appreciation for positioning in the business world. Warren Buffet is experienced at positioning himself at the right place at the right time. Warren Buffet has the understanding of the people he is trying to reach and what he can and cannot hear from the people. Knowledge of audiences’ needs and wants gives the orator the ability to listen. Warren Buffett is an excellent listener with the ability to convey his understanding.

When Warren Buffett talks, people listen. Warren Buffett can send a message through an open door and does not have to push the message through a wall.

Leadership is crucial to any successful business and good leadership is what Warren Buffett is all about. This is what makes Warren buffet a good business leader.

Mr. Warren Buffett’s investment strategies and course of leadership are shining examples of characteristics shared by cognitive theorists. Cognitive theory is an approach of explaining behavior through perception, anticipation, and thinking. Mr. Buffett’s continual approach of analyzing both possible investment choices, market trends, and the ability to place management resources of the right caliber in the right position has consistently brought this investor to the forefront amongst peers and the marketplace. At the core of every sound investor is a creative innovator.

Innovation demands creativity. Creativity in turn draws on our cognitive faculties, across the full amplitude from emotion to reason. In the number-heavy world of global investing, innovative thinking is critical. Innovative investors decipher future trends, spot likely winners by combining science (financials) with art (acuity and perception) and continuously mitigate risk. They assess user needs, product features, the proper deployment of money, professional organizational structures and risk management. (Kore Kalibre, 2006)

Mr. Buffett’s instinct and ability to interpret market trends is also held by tight reigns. Despite over 50 years of growth, Mr. Buffett always adheres to one of the most basic business principles: “…only compete where you have a competitive advantage. Warren Buffett refers to staying within your circle of competence. Social psychologists tell us, though, that we are prone to overconfidence when it comes to assessing our abilities…” (Arthridge, 2006) A man of Warren Buffett’s position and track record could easily be derailed to a sense of over confidence. The principle of only competing within your range of competitive advantage is a principle that can be applied to many other areas in life, and Mr. Buffett’s ability to work and live by this idea has allowed him to continue forward with minimal bruising.

By establishing the previous examples, the authors can reinforce the principles of cognitive theory in that Mr. Buffett behavior patterns are clearly dictated by thought processes, which include interpretation, analysis, and foresight. “As experiences and events gain meaning and value, the process becomes increasingly top down as the mind in (a) attempt at an orderly process influences perception though beliefs, goals and external process” (Gardener, 2007)

Warren Buffett’s is a self empowered leader, because he is loyal, sets goals, plans a strategy for achievement, and stays committed until he accomplishes his purpose. Up to date, he is the greatest stockbroker of all-time. He is a very conservative investor that prefers to invest in companies that sell name brand products that he uses. For example, Coca-Cola, Gillette Razors, See’s Candy, Gulfstream Jet, and GEICO are the major companies he invested in. In the nineties his assets quadrupled in less than five years. He is a smart investor that usually does not take big investment risks. For example, he will not invest in internet stock, because the return is unpredictable. He likes to invest in companies that he is sure will be successful 20 years later. He buys the company with the intentions of keeping it forever. Usually, the management team of each company is the same staff that sold it Warren Buffett from the beginning. He stays loyal to his partners, and the team workstheir best to keep him happy.

After Warren Buffett’s wife died, he decided to donate 85% of his money to charity. However, “he wants his money to be used the same year he donates it”.(Harris, 2006) The requirement will accelerate the process to help the world. According to Fortune magazine, five-sixths of his money will go to the Bill and Melinda Gates Foundation. This foundation which focus on finding cures for diseases that are common in poor nations. The rest of the money will be split among four other charities, that are each run by his three children and one that is in his late wife’s name.

Warren Buffett is not a huge spender. In fact, he still lives in the same house he bought 40 years ago. Warren “told ABC News “Nightline” that being born into wealth did not entitle his children”(Harris, 2006). In addition, he told Fortune magazine that, “A very rich person would leave his kids enough to do anything, but not enough to do nothing.”(Harris, 2006) In other words, he wants his children to work earn their money and value hard work and smart choices.

In the year 2006, Warren’s first annual donation to the Bill and Melinda Gates Foundation was $1.5 billion and the rest was divided among the four charities. He was the first person to make a donation better than Bill Gates, the richest man in the world. It seems as if Bill Gates and Warren Buffett set a good example and lead others to be more generous, because now the Barron Hilton has committed to donating half of his fortune to charity also. Barron Hilton is the founder of the Hilton Hotels and is worth $2.3 billion. Hopefully, a trend started among the fortunate to give to the less fortunate.

The personality of Warren Buffett ties to the Social Cognitive Level, because he tries to understand and make sense of other people. He observes the differences in social knowledge when dealing with people. Social cognition refers to making sense of ourselves, others, and how the information is used. In the sixties and seventies Albert Bandura and Walter Mischel were psychologists, studying personality development. They found that social learning and cognitive principles improve ones abilities to self-regulate and to follow goals. Warren investment choices were successful, because he conditioned his the way he processed information, choices, and expectations.

References - DO Not Strip References!

Gardener, J. (2007). Cognitive Behavior Theory. Retrieved December 26, 2007, from http://www.cognitivebehavior.com/theory/index.html

Harris, D. (2006, June 26,). Warren Buffett's Unprecedented Generosity. Retrieved December 31, 2007, from http://abcnews.go.com/print?id=2118501

Kore Kalibre (2006, March-April 2006). Warren Buffett’s Innovation: Staying away from Rapid Product Innovation. Retrieved December 26, 2007, from http://www.korekalibre.com/index.php?option=com_magazine&task=show_magazine_article&magazine_id=26

Legg Mason Value Trust (2006, October 26). Legg Mason Value Trust (LMVTX) Letter to Shareholders. Retrieved December 26, 2007, from http://markets.kiplinger.com/kiplinger?GUID=323448&Page=MediaViewer&Ticker=LMVTX

Wikipedia (2007, December 25). Warren Buffett. Retrieved December 18, 2007, from http://en.wikipedia.org/wiki/Warren_Buffett

Understanding the Mortgage Meltdown; What happened and Who's to Blame

People are losing their homes and many more will lose their jobs before the mortgage meltdown works its way through the system.

To paraphrase Alan Greenspan's remarks on March 17th, 2008, “The current financial crisis in the US is likely to be judged in retrospect as the most wrenching since the end of the Second World War. The crisis will leave many casualties.”

How many casualties? Experts are predicting that in the next few years, between 15 and 20 million homeowners could have homes worth less than what they owe. Walking away from a bad situation may actually make sense for people who mortgages that are 'upside down' considering the fact that refinancing is out of the question and home equity is nonexistent.

It seems quite easy to point fingers at greedy Wall Street titans for causing the sub-prime mortgage crises. They after all, put together the deals that allowed banks to underwrite mortgages and then offload these liabilities to investors. What many fail to realize is that there is no shortage of blame to go around from homeowners buying more home than they could afford to real estate agents looking for more commission dollars. Mortgage brokers and bankers, the banks themselves, ratings agencies such as Moody's and Standard & Poor's, Wall Street, the Fed and last but certainly not least, the Federal Government.

Let's start with the homeowners--the people who are now in the process or soon to enter the process, of losing their homes. Some of these people had never before owned a home and as such, may not have been prepared for the costs associated with homeownership. Basic financial literacy is sorely lacking in this country despite there being no shortage of budgeting and tracking programs readily available such as Quicken and Microsoft Money. The lack of financial literacy does not absolve these buyers of their responsibility. Every borrower receives a truth in lending disclosure statement. Here is a portion of what the act covers:

The purpose of TILA (Truth In Lending Act) is to promote the informed use of consumer credit by requiring disclosures about its terms and cost. TILA also gives consumers the right to cancel certain credit transactions that involve a lien on a consumer's principal dwelling, regulates certain credit card practices, and provides a means for fair and timely resolution of credit billing disputes. With the exception of certain high-cost mortgage loans, TILA does not regulate the charges that may be imposed for consumer credit. Rather, it requires a maximum interest rate to be stated in variable-rate contracts secured by the consumer's dwelling. It also imposes limitations on home equity plans that are subject to the requirements of Sec. 226.5b and mortgages that are subject to the requirements of Sec. 226.32. The regulation prohibits certain acts or practices in connection with credit secured by a consumer's principal dwelling.

Much of the subprime mortgage crisis can be traced directly back to variable-rate mortgages. As is clearly stated above, “TILA does not regulate the charge that may be imposed for consumer credit. Rather, it requires a maximum interest rate to be stated in variable-rate contracts secured by the consumers dwelling.” It also clearly states that TILA also gives consumers the right to cancel certain credit transactions that involve a lien on a consumer's principal dwelling. One has to wonder whether or not these homeowners:

1. Bothered to read the truth in lending act disclosure at all.

2. Understood what the truth in lending act disclosure meant.

3. Chose to ignore the information printed clearly the truth in lending act disclosure.

A number of months ago, just as the subprime mortgage crisis was beginning to unfold, The New York Daily News ran an article about a family in New York City, who had bought a home and were now faced with the prospect of foreclosure. The article was sympathetic to this family, highlighting the fact that they're living the American dream and that this dream was about to come to an end. What I found to be distressing was the fact that clearly visible in the photo that accompanied this sympathetic article was a very expensive flat screen television hanging on the wall. Perhaps I'm naïve, but I can assure you that if I were faced with the prospect of losing my home and having my family put out on the street, there is absolutely no way that I would still have that expensive television hanging on my wall. It would have been one of the first things to be sold and some financial relief would be found by jettisoning what I'm sure was the expensive cable bill.

Clearly the public needs easy access to financial literacy courses. Too bad we don't see the need to make this a mandatory course of study in our educational system.

Mortgage bankers and brokers have in the last four or five years been raking in cash by the bucket load in the form of commissions paid when mortgages they've originated, close. Many of these people have not needed to do much in the way of prospecting. Instead, their phones have run off the hook as people have jumped on the homeownership and refinancing and take out extra cash bandwagon, despite their ability to pay for their home. No-document loans were readily available without the borrower having to produce documentation that backed up their income. Clearly this practice can and indeed has, lead to substandard loan underwriting processes. Were some of these mortgage bankers and brokers dishonest? Sure. Were all of them dishonest? I think not. To have a massive nationwide conspiracy, where thousands and thousands of people involved in the mortgage banking and mortgage brokering profession got together to create this situation is simply not feasible. Yes, some of the blame does belong with those in the mortgage industry, but they were simply a small cog in the huge machine that created this mess.

Let's discuss real estate agents. In 2007, we bought a home, and also sold a home. The agent we used to purchase our home was absolutely fantastic. In our opinion, she went above and beyond to make our deal happen. She answered every phone call, followed up on every concern and was the epitome of professionalism. We consider this individual to be a friend, and we have sent referrals her way that have resulted in her earning additional commissions. We will continue to recommend her to all who ask or mention that they'd like to buy or sell a home in our area.

The real estate agent, we used to sell our home, could not have been more different. We got our old home ready to sell prior to closing on our new home. We decided to list it as “For Sale by Owner.” In the event that we didn't sell this home on our own, it was our intention to list it with an agent as soon as we had closed on the purchase our new home. Literally, from the day we put the sign in front of our home and listed it on a “For Sale by Owner” website we were inundated with phone calls from real estate agents. We were told many lies and were constantly harassed; although we had already made it quite clear to every agent who called, and there were more to 60 who did; that we were willing to pay half the commission-the same as they would have received had they sold another agent's listing. We also told every agent that called that we had already lined up an agent to sell our home in the event that we chose to no longer sell it ourselves. Our deadline was the closing date of our new home purchase. We did have an interested buyer who shortly after our closing date decided to keep looking so we listed our home with a local agent so that we could concentrate on getting our new home ready for our moving date at the end of the school year. This agent showed our home a maximum of two times and got an offer which we accepted. We ended up getting $1,000 less than we had wanted in a declining Real Estate market. The agents who had called many times to harass us called our listing agent on a number of occasions and he lied telling them that the house was under contract when in fact it wasn't at that time-clearly a breach of our agent's fiduciary duty. Quite frankly an ethical agent would have continued to show our home until closing in the event that the deal fell through.

But wait, there's more. Our agent also acted as the buyer's mortgage broker. At the closing table, we learned that he had signed documents from the buyer stating that he (our agent) represented them and we had signed documents stating that he represented us. We also learned that the buyer had effectively put down approximately 2-3% of the purchase price when financed closing costs were factored into the equation. Their first mortgage had what we thought was a high fixed rate and their second mortgage came with a rate in excess of 8.5%. Because the closing happened in August, literally in the midst of the first wave of the meltdown, if they didn't close on the day they did (August 31st, 2007), Citibank wasn't going to extend their rate. When my wife & I have bought houses in the past, it had always been a very happy day. These people looked absolutely shell-shocked at the closing table. I'm not convinced that they knew just how much their monthly payment was going to be until closing day. We knew down to the penny well in advance having budgeted and planned everything on a spreadsheet. Were these people stupid or just inexperienced and mislead by a greedy combination of real estate agent & mortgage broker? I'm extremely confident that they are intelligent people but inexperienced and taken advantage of by an unscrupulous agent.

The banks are also culpable. Prior to bank deregulation, Savings and Loans provided mortgages to home buyers and kept these loans on their books. Non-performing loans had a negative effect on the S&L's profitability which of course caused tighter lending guidelines such as job stability and decent down payments in order for prospective home buyers to be approved for a mortgage. Way back then, a home buyer had to actually save up enough money for a down payment 10 or even 20% before a bank would ever consider underwriting a mortgage. The checks & balances kept banks solvent and borrowers responsible. Although this approach worked, some cried foul stating that the regulated system was racist and discriminatory-and there certainly was some truth to this. Skipping forward to the present, banks made a bundle on mortgages over the past five or six years. For the most part, they allowed their underwriting criteria to be stretched so far out of alignment that almost anyone could and indeed did, qualify for a mortgage despite their ability to pay. Some folks even applied for and received mortgages for more than the property was worth. Sometimes for as much as 25% more than their property was worth!

Under the prior system, 125% mortgages would not have been possible because of course these loans were held on the banks' books and could have led to losses that would have had to have been absorbed directly by the bank.

So what went wrong? Under the current system, these loans were sold to the big Wall Street investment firms who repackaged them as collateralized mortgage obligations (CMO's), Mortgage Backed Securities (MBS's) and other similar acronyms. These instruments were then sent to the ratings agencies for their blessing and more importantly a letter rating. Many of these structured finance deals receive AAA ratings-the highest ratings available meaning that in theory, these instruments were least likely to default. How does one create a 'triple A' or AAA rated financial instrument out of sub-prime mortgages? Herein lies the magic. These Asset Backed Securities (ABS) are made up of different tranches or slices, each carrying a different risk and reward level. The first dollar of principle and interest is applied to the securities with the highest rating, and the first dollar of loss is applied to the tranche with the lowest ratings. The lower slices are designed to provide a security blanket that in theory protects the higher-rated securities. The investment banks that package or 'structure' these securities in order to earn fat fees when they sell them to investors are the same entities that pay the ratings agencies to rate these instruments. Clearly the possibility for conflict of interest is present. If investors and not the investment banks that stand to rake in millions in fees were to pay for the rating, the potential for this conflict of interest would be negated. Furthermore, the investment banks have a vested interest in convincing the ratings agencies of the credit worthiness of these securities.

So we've already pointed fingers at homeowners, some greedy, many more I suspect, naïve or uninformed, real estate agents-one out of more than 60 in my experience was a gem, mortgage brokers & bankers, banks, Wall Street and ratings agencies so who's left? The Federal Reserve and the Government of course.

The Fed as its known is responsible of the country's monetary policy and for supervision and regulation of banks. This is the definition of the Fed's roles in their own words:

Monetary Policy

The Fed is best known for its role in making and carrying out the country's monetary policy-that is, for influencing money and credit conditions in the economy in order to promote the goals of high employment, sustainable growth, and stable prices.

The long-term goal of the Fed's monetary policy is to ensure that money and credit grow sufficiently to encourage non-inflationary economic expansion.

The Fed cannot guarantee that our economy will grow at a healthy pace, or that everyone will have a job. The attainment of these goals depends on the decisions of millions of people around the country. Decisions regarding how much to spend and how much to save, how much to invest in acquiring skills and education, how much to spend on new plant and equipment, or how many hours a week to work may be some of them.

What the Fed can do, is create an environment that is conducive to healthy economic growth. It does so by pursuing a goal of price stability-that is, by trying to prevent inflation from becoming a problem.

Inflation is defined as a sustained increase in prices over a period of time.

A stable level of prices is most conducive to maximum sustained output and employment. Also, stable prices encourage saving and, indirectly, capital formation because it prevents the erosion of asset values by unanticipated inflation.

Inflation causes many distortions in the market. Inflation:

· hurts people with fixed income-when prices rise consumers cannot buy as much as they could previously

· discourages savings

· reduces economic growth because the economy needs a certain level of savings to finance investments that boost economic growth

· makes it harder for businesses to plan-it is difficult to decide how much to produce, because businesses can't predict the demand for their product at the higher prices they will have to charge in order to cover their costs

Bank Regulation & Supervision

The Fed is one of the several Government agencies that share responsibility for ensuring the safety and soundness of our banking system. The Fed has primary responsibility for supervising bank holding companies, financial holding companies, state-chartered banks that are members of the Federal Reserve System, and the Edge Act and agreement corporations, through which U.S. banking organizations operate abroad.

The Fed and other agencies share the responsibility of overseeing the operation of foreign banking organizations in the United States. To insure that the banking system remains competitive and operates in the public interest, the Fed considers applications by banks for mergers or to open new branches.

The passage of the Gramm-Leach-Bliley (GLB) Act in November 1999, was the culmination of a multi-decade effort to eliminate many of the restrictions on the activities of banking organizations.

Some of the main provisions of the GLB are:

· Repeals the existing limitations on the ability of banks to affiliate with securities and insurance firms

· Creates a new organizational form that allows banking organizations to carry new powers. This new entity called a "financial holding company," (FHC) and its non-banking subsidiaries are allowed to engage in financial activities such as insurance and securities underwriting

The Fed's enlarged role as an umbrella supervisor of FHCs is similar to its role in supervising bank holding companies. The Federal Reserve Banks will supervise and regulate the FHCs while each affiliate is still overseen by its traditional functional regulator.

The Fed has to delineate the financial relationship between a bank and other FHC affiliates. Its primary goal is to establish barriers protecting depository institutions from the problems of a failing affiliate. To do this efficiently the Fed has to ensure increased communication, cooperation, and coordination with the many supervisors of the more diversified FHCs.

The Fed has access to data on risks across the entire organization, as well as information on the firm's management of those risks. Regulators will be in a position to evaluate and presumably act on risks that threaten the safety and soundness of the insured banks.

It would appear that the Fed has failed to curb housing inflation which played a role in this entire debacle then made matters worse and in their efforts or lack there of, to properly supervise banking institutions.

Finally the government, a.k.a. Uncle Sam, the big Kahuna 10,000 pound elephant etc. Where do we begin? How about with: 'Where were they?'

It now appears that after millions of horses are out of the barn (some horses ran, others were foreclosed upon) the government wants to step in with a bailout to save the rest. While nobody wants to see people lose their homes, the question that must be raised is this: What about all those of us who were responsible? Those of us, who scrimped and saved up a decent down payment, bought less-house than we could afford and who live below our means? Many of us drive older cars and keep them longer. We don't run out and buy the latest and greatest at inflated prices, we watch, wait and budget.

When the World Trade Center was attacked, families who decided not to sue received government payouts and we certainly don't begrudge them as I'm sure that given the choice, they'd prefer to still have their loved-ones over the money. The problem, in typical government fashion is that those who were responsible and had insurance policies in place received less than those who were irresponsible and didn't plan ahead. I'm not talking about dishwashers at Windows on the World and blue collar workers; I'm talking about executives, traders and people who should have known better.

Now our government, the same government that sat by idly watching as this bubble got bigger and bigger despite many warnings, wants to step in and bailout people who are in danger of losing their homes. There has been no talk about educating people, let's not teach people to fish, rather, let's give them a fish and bail them out once again at the expense of those who are responsible.

Clearly, by keeping the majority of the population financially ignorant, there is a lot of money to be made by the poverty industry.

How to Successfully Navigate Your Business through an Economic Downturn

An economic downturn is a phase of the business cycle in which the economy as a whole is in decline.This phase basically marks the end of the period of growth in the business cycle. Economic downturns are characterized by decreased levels of consumer purchases (especially of durable goods) and, subsequently, reduced levels of production by businesses.

While economic downturns are admittedly difficult, and are formidable obstacles to small businesses that are trying to survive and grow, an economic downturn can open up opportunities. A well-managed company can realize the opportunity to gain market share by taking customers away from their competitors. Resourceful entrepreneurs capture the available opportunities, from an economic downturn, by developing alternate methods of doing business that were never implemented during a prior growth period.

The challenge of successfully navigating your business through an economic downturn lies in the realignment of your business with current economic realities. Specifically, you, as the business owner, need to renew a focus on your core clients/customers, reduce your operating expenses, conserve cash, and manage more proactively, rather than reactively, is paramount.

Here are best practices that will help you to successfully navigate your business through an economic downturn:

Goals:

The primary goal of any business owner is to survive the current economic downturn and to develop a leaner, more cost-effective and more efficient operation. The secondary goal is to grow the business even during this current economic downturn.

Objectives:

• Conserve cash.

• Protect assets.

• Reduce costs.

• Improve efficiencies.

• Grow customer base.

Required Action:

• Do not panic… History shows that economic downturns do not last forever. Remain calm and act in a rational manner as you refocus your attention on resizing your company to the current economic conditions.

• Focus on what YOU can control… Don’t let the media's rhetoric concerning recessions and economic slowdown deter you from achieving business success. It´s a trap! Why? Because the condition of the economy is beyond your control. Surviving economic downturns requires a focus on what you can control, i.e. your relevant business activities.

• Communicate, communicate, and communicate! Beware of the pitfall of trying to do too much on your own. It is a difficult task indeed to survive and to grow your business solely with your own efforts. Solicit ideas and seek the help of other people (your employees, suppliers, lenders, customers, and advisors). Communicate honestly and consistently. Effective two-way communication is the key.

• Negotiate, negotiate, and negotiate! The value of a strong negotiation skill set cannot be overstated. Negotiating better deals and contracts is an absolute must for realigning and resizing your company to the current economic conditions. The key to success is not only knowing how to develop a win-win approach in negotiations with all parties, but also keeping in mind the fact that you want a favorable outcome for yourself too.

Recommended Best Practice Activities:

The Nuts and Bolts… The following list of recommended best practice activities is critical for your business' survival and for its growth during an economic downturn. The actual financial health of your particular business, at the outset of the economic downturn, will dictate the priority and urgency of the implementation of the following best practice activities.

1. Diligently monitor your cash flow: Forecast your cash flow monthly to ensure that expenses and planned expenditures are in line with accounts receivable. Include cash flow statements into your monthly financial reporting. Project cash requirements three-to- six months in advance. The key is to know how to monitor, protect, control, and put cash to work.

2. Carefully convert your inventories: Convert excess, obsolete, and slow-moving inventory items into cash. Consider returning excess and slow-moving items back to the suppliers. Close-out or inventory reduction sales work well to resize your inventory. Also, consider narrowing your product offerings. Well-timed order placement helps to reduce excess inventory levels and occasional material shortages. The key is to reduce the amount of your inventory without losing sales.

3. Timely collection of your accounts receivable: This asset should be converted to cash as quickly as possible. Offer prompt payment discounts to encourage timely payments. Make changes in the terms of sale for slow paying customers (i.e. changing net 30 day terms to COD). Invoicing is an important part of your cash flow management. The first rule of invoicing is to do it as soon as possible after products are shipped and/or after services are delivered. Place an emphasis on reducing billing errors. Most customers delay payments because an invoice had errors, and therefore, will not pay until they receive a corrected copy. Email or fax your invoices to save on mailing time. Post the payments that you have received and make deposits more frequently. The key is to develop an efficient collection system that generates timely payments and one that gives you advance warning of problems.

4. Re-focus your attention on your existing clients/customers: Make customer satisfaction your priority. A regular review of your customers' buying history and frequency of purchases can reveal some interesting facts about your customers' buying habits. Consider signing long-term contracts with your core clients/customers which will add to your security. Offer a discount for upfront cash payments. The key is to do what it takes to keep your current customers loyal.

5. Re-negotiate with your suppliers, lenders, and landlord:

i) Suppliers: Always keep your negotiations on the level of need, saying that your company has reviewed its cost structure and has determined that it needs to lower supplier costs. . Tell the supplier that you value the relationship you have developed, but that you need to receive a cost reduction immediately. Ask your supplier for a lower material price, a longer payment cycle, and the elimination of finance charges. Also, see if you can buy material from them on a consignment basis. In return for their price concessions, be willing to agree to a long-term contract. Explore the idea of bartering as a form of payment.

ii) Lenders: Everything in business finance is negotiable and your relationship with a bank is no exception. The first step to successful renegotiations is to convince your lenders that you can ultimately pay off the renegotiated loan. You must point out to your lenders why it would be in their best interest to agree to a new arrangement. Showing them your business plan and your action plan that includes your cost-savings initiatives, along with "the how" and "the when" of the implementation of your plan is the best way to achieve this goal. Explain to them that you will need their cooperation to insure that you can survive, as well as, grow your business during the economic downturn. Negotiated items include: the rate of interest, the required security to cover the loan, and the beginning date for repayment. A beginning date for repayment could be immediate, within several months or as long as a year. The key is to realize that your lender will work with you, but that frequent and continual communications with them is critical.

iii) Landlord: Meet with your landlord. Explain your need to have them extend the term of your lease at a reduced cost. Make sure you have a clause in the lease agreement that entitles you to have the right to sublet any or all of the leased space.

6. Re-evaluate your staffing requirements: This is a very critical area. Salaries/wages are a major expense of doing business. Therefore, any reduction in the hours worked through work schedule changes, short-term layoffs or permanent layoffs has an immediate cost saving benefit. Most companies ramped up hiring new employees in the good times, only to find that they are currently overstaffed due to slow sales during the economic downturn. In terms of down-sizing your staff, be very careful not to reduce your staff to a level that forces you to skimp on customer service and quality. Consider the use of part-timers or the current trend of outsourcing certain functions to independent contractors.

7. Shop for better insurances rates: Get quotations from other insurance agents for comparable coverage to determine whether or not your present insurance carrier is competitive. Also, consider revising your coverage to reduce premium costs. The key is to have the right balance-to be adequately insured, but not under or over insured.

8. Re-evaluate your advertising: Contrary to the other cost-cutting initiatives, evaluate the possibility of increasing your advertising expenditures. This tactic realizes the advantage of the reduced "noise" and congestion (fewer advertisers) in the marketplace. The downturn period a great opportunity to increase brand awareness and create additional demand for your product/service offerings.

9. Seek the help of outside advisors: The use of an advisory board comprised of your CPA, attorney, and business consultant offers you objectivity and provides you with professional advice and guidance. Their collective experience in working with similar situations in past economic downturns is invaluable.

10. Review your other expenses: Target an across-the-board cost-cutting initiative of 10-15%. Attempt to eliminate unnecessary expenses. Tightening your belt in order to weather the downturn makes practical, financial sense.

Proactively managing your business through an economic downturn is an enormous challenge and is critical for your survival. However, through well-planned initiatives, an economic downturn can create tremendous opportunity for your company to gain greater market share. In order to take advantage of this growth opportunity, you must act quickly to implement the above best business practices to continue realigning and resizing your company to the current economic conditions.

Copyright © 2008 Terry H. Hill

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Terry H. Hill is the founder and managing partner of Legacy Associates, Inc, a business consulting and advisory services firm. A veteran chief executive, Terry works directly with business owners of privately held companies on the issues and challenges that they face in each stage of their business life cycle. To find out how he can help you take your business to the next level, visit his site at http://www.legacyai.com

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