Financial Failure in Business

Business is the backbone of the world's economy. This is where the most jobs and wealth are created. A large percentage of businesses are entrepreneurial (or start out that way). Unfortunately many do no make it. This article gives some tips on how to avoid financial failure:

1. Detail financial planning must be done before embarking on a business. This must continue throughout the existence of the business. Planning should include cashflow projections and sensitivity analysis on key parameters.
   
2. Find out what requirements financiers have. Position the business around it; keep the credibility of the business intact and work on the relationships with financiers.
   
3. Enhance the financial acumen within the company. Management needs to understand the meaning of financial statements, cashflows and financial ratios.
   
4. Inventory should be managed at optimum levels. Have a proper stock system to manage it. Only keep stock items that moves fast or that is strategic important.
   
5. Control the growth of the business to acceptable levels. Understand how much growth is sustainable and how it will be financed.
   
6. Targeted gross margins should be well researched and form part of the business- and marketing plan. Work as far as possible to this target. Avoid doing business at all costs.
   
7. Do everything in your power to ensure that at least a minimum turnover (that cover expenses) is achieved. Research the market and do proper pinpoint marketing.
   
8. Control expenditure diligently. Know why money is spent and how it is spent.
   
9. Have a strict credit policy. Follow the policy. Ensure that customers that do not keep their commitments are professionally dealt with.
   
10. The most important aspect of the business is to manage its cashflow. Cashflows must be projected and monitor on a monthly basis (or shorter if required). Be pro-active in handling potential cashflow problems.

Stock Exchange Market

The foreign exchange market was generally stable during 2001-02 except for brief periods of uncertainty during May 2001, September 2001 and December 2001 (terrorist attack on the Indian Parliament). In order to stabilize the domestic financial markets during these episodes, the Reserve Bank undertook a series of measures.

A number of steps were taken in continuation of the phased approach to capital account liberalization during the year. Non-resident nonrepatriable (NRNR) account and non-resident special rupee account schemes were discontinued with effect from April 1, 2002 in order to provide full convertibility on non-resident deposit schemes. While no new deposits would be accepted under these schemes, existing term deposit accounts under both the schemes have been allowed to continue up to the date of maturity. Existing NRSR accounts, other than term deposits, have been allowed to continue up to September 30, 2002. On maturity, the proceeds of NRNR scheme shall be credited to the account holders' non-resident account, while those in the case of NRSR scheme shall be credited to the account holder's non-resident account.

Amongst the facilities available to corporates, existing limits for Indian direct investment overseas under the automatic route were raised from US $ 50 million in a financial year to US $ 100 million. Indian investors can now purchase foreign exchange up to 50 per cent of their net worth as on the date of last audited balance sheet as against the existing limit of 25 per cent. At present, corporates are allowed to prepay external commercial borrowings (ECBs) to the extent of the balances in their EEFC accounts. Exportoriented units and others can credit up to 70 per cent and 50 per cent, respectively, of their foreign exchange earnings to their EEFC accounts. In order to enable the Indian companies more flexibility and to take advantage of lower interest rates and prepay their ECBs, the corporates were allowed to credit higher than the stipulated proportions of export proceeds to their EEFC accounts on a case-by-case basis.

Issues of Foreign Currency Convertible Bond were allowed under the automatic route up to US $ 50 million. The Indian companies were permitted to raise the 24 per cent limit on Foreign Institutional Investors investment to the sectoral cap/statutory ceiling as applicable. As announced by the Finance Minister in his Budget speech for 2002- 03, FIIs' portfolio investments will hence forth not be subject to sectoral limits for foreign direct investment except in specified sectors.

With the introduction of Euro notes and coins, the Reserve Bank started announcing reference rate for Euro in addition to the US dollar. The Central Government has given the option to the Reserve Bank to use Euro as intervention currency in addition to US dollar.

The Reserve Bank intervenes in the foreign exchange market in order to even out lumpy demand or supply and maintain orderly conditions in the foreign exchange market. The Reserve Bank conducts operations in the spot, forward and swap segments of the market combined with monetary and other administrative measures as part of its intervention strategy.

Ways to Earn Cash Online

There are many ways to earn cash online. With the advancement of technology and human ingenuity, the list of possible money-making opportunities in cyberspace are virtually endless.

Most people earn cash online by selling all sorts of stuff on eBay. Many people do most of their online shopping on eBay so customer traffic is assured. Moreover, eBay allows all kinds of products and services to be sold that you have a wide options of things to sell. Moreover, creating an eBay account is so easy that most people go for it to earn cash online.

While selling stuff on eBay is the first thing that most people come up with when they think of ways to earn cash online, nowadays there are better ways to help you make money on the Internet.

The advent of affiliate marketing has made making money online a wonderful prospect for many people. These days, you can choose from a number of advertising strategies , or use them all , to promote the site and, consequently, also the products or services you offer.

You can use search engine optimization (SEO), paid search engine marketing or submission services and software, email marketing, banner exchange and display advertising, among other advertising methods to make sure you earn cash online.

If these terms sound gibberish to you, read on to see their simple translation.

Naturally, if you have a website or blog, you did want people to visit it. Now you can have different ways of making people take notice of your blog and, consequently, make you earn cash online. You can enlist the services of another website to help you promote your site. This other website may be paid by you or may only request that you do the same, which is to promote that site as it promotes yours.

For example, you can use Google Adwords or AdSense to help you advertise your blog so you can earn cash online. They work to display ads that will promote your business; all you have to do is provide them with related key words. You can also use PPC (Pay Per Click). You can pay search engine companies to include your sites link in matches for a particular phrase. This way, the probability of people visiting your site will increase and you will have the traffic you desire. They can easily view your site and learn a great deal more about you or your product or service.

Of course, no matter how many advertising tactics you use, if your blog fails to have decent content, or if the product or service you have does not really have much to offer, then you might not be able to earn cash online, or at least the amount you are expecting. So make sure to have quality web content and quality products or services as well.

Advertising and marketing strategies aside, the most important thing to consider if you want to earn cash online is the time and effort you have to put in to maintain your business. Being web savvy and hardworking are the secrets of successful online businesspeople. Just be the same and you are sure to earn cash online.

5 Ways to Lose Money Day Trading

Defense wins championships. A good defense gives your team a chance to win; it keeps you in the game. To put this in trading terms, your game plan should keep your losses manageable while waiting for an opportunity to build a position. When you trade with this mindset you will always be in the game and ONE trade could turn around your entire day or your week.

Too often we see trader after trader trying to earn their entire month by gambling big on every single trade instead of seeing the big picture and earning your pay by the month.

There are literally stores and bookshelves filled with trading books and videos about how to earn money in the stock market. If I was forced to put a number on it I would say that 98%of them focus on telling you what to do to be successful as a trader.

We are going to discuss some of the things you can AVOID to give yourself the best chance of netting money on a regular monthly basis.

1. Using maximum leverage all the time: Most retail traders who make the venture into full time trading have a very common belief; "if I had more buying power I would make more money." So when they actually make the jump to a professional firm they can't wait to "load up" a position. All they can see is the dollar signs of what they will earn as the trade moves in their favor. It is just not possible for every trade you take to be one where you should increase your leverage. Placing maximum share size on your initial entry requires you to be amazingly accurate with every entry. Think about that, maximum share size all the time forces you to be perfect. Is that possible?

2. Not using enough leverage: There are however certain times of the day, week and month when you will have the market condition to increase your position size. Keep in mind this will occur on average around 30% of the day, week, and month. Think about that; 70% of the month will NOT be optimal conditions for max share size!! How often does the market, sector, your stock, market internals and volume all line up for this perfect storm?

3. Trading the entry signal instead of the trend: One of the most exciting things to do when trading is obviously getting into a trade, that's what gets your blood pumping. Unfortunately because the entry is so exciting that is where most new traders put most of their focus during the trading day; on the entry signals. This is equivalent to going to the beach and watching the small splashes of water around your ankles and thinking those splashes move the ocean. It is the other way around and that should be your focus. The big picture first and THEN the smaller time frames to enter or exit. Don't even look at the smaller entry time frames until it looks good on the higher time frames.

4. Guessing when a trend will end: When you remove the ego based desire to pick tops and bottoms you will immediately become a better trader. This will add to your net profitability than any other advice you will receive. One of the first mentors I had said it the best; "it is what it is until it's not." In other words assume the order flow the buying or selling pressure is intact until you see a heavy volume pause or exhaustive volume.

5. Trying to scalp AND position trade: Pete Rose was not a home run hitter and Barry Bonds was not paid to hit singles. They both knew very clearly before they went to the batters box what they were trying to accomplish. This is a very important concept to understand before you begin trading for the day it will affect how you manage a position and how you get shares for a trade. If you are a "singles hitter" as a trader you will be trading full size on both entry and exit. If you are a trader who holds positions you will be building a position as the stock moves in your favor and scaling out as well. It is very difficult to scalp and to be a position trader; you will constantly be mixing business plans. This is a quick road to the poor house. Pick a style that fits your personality and trade it like you own it. This will make it much easier to replicate your success.

Internet Business Ideas For Every Day People

Owning a business is a common dream. Everyone wants to start their own business that they can be handled without the interference of other people. Personal business not only ensures you sufficient supply of income but also provides the freedom of working according to one's own desires. You can achieve your dream of having a business just by choosing an appropriate business idea that is in accordance to your skills and knowledge.

There are different businesses that you can start, but if you are facing a shortage of time or you have too many responsibilities to fulfill and can't give full time to your business, then the best option is to own an Internet business that you can run even from your home. Many people think Internet businesses are frauds or an easy way to generate income. The truth is the complete opposite of this. Internet business is a legitimate income-generating activity that requires serious consideration to hold and grow. The major advantage of a home-based Internet business is it can be run as a part-time activity. The things that you need to run a home-based Internet business are a computer and high speed Internet connection and, of course, a good Internet business idea that you can run adequately.

Following are some Internet business ideas narrating the details about how one can choose and run their home-based business if he or she has some other responsibilities.

1. You can generate income through article writing on the Internet. You need to create a website or start a blog for that. It is very easy to do. You just have to search for unique keywords to write articles based on these keywords. The users will occur ultimately.

2. You can earn your income without producing your own product. You can earn a profit by selling different products of other companies, which is also called affiliate marketing. You have to provide links of related companies on your web page. Your job is just informing other people about a particular company and you will get paid for this.

3. You can earn through the existing blogging platform like Goggle and Writing Press. You have to submit your articles on these blogging sites and they will pay you for your each post. Be careful while selecting a platform. Check all the rules and regulations before joining any site and start earning your income right from your computer screen.