Starting a Business

Many people today are looking to own and run their own business. To do that they mainly have three main choices.

1. Buy a franchise
2. Start from scratch to develop there own type of business.
3. Buy an existing business.

When talking about capital to start or buy a conventional business we are not talking peanuts here; all these types of businesses will most likely require a substantial sum, perhaps in the hundreds of thousands of dollars.

They will usually require staff so suitable computer expertise for accounts and wagers and also people skills in the workplace are required. There are always some problems with staff which can cause difficulties.

In a conventional business you will require premises. If you have bought an existing business then probably rates and maintenance are your two main expenses with the existing building bought with the business. If you need to rent a premise then you may require a refit for your purposes which may cost tens of thousands of dollars. This would depend on the type of business which may require certain expensive machine or electronic devices which could be various and very expensive. Then you would need computers and office furniture in varying quantities. All quite expensive items. However you look at it there are considerable costs involved when starting a business some of which will be ongoing. i.e. interest on the loan, staff wages and rent etc.

If it comes to the worst and it all goes belly up look at what you might lose? The equity which was used to finance the loan - most likely the property you live in because you couldn’t pay off the bank overdraft. The fixtures and fittings which you purchased which now would be of use to you and any equipment you purchased which may have to be sold invariably at a loss.

So you sold everything to try and pay off your debt but that wasn’t enough so you have to leave the home you loved and look for rented accommodation. Then many years later you might crawl back to where you were before the time of the crash. The statistics for new conventional type business success are not good.

In a conventional business if you need advice you usually have to pay for it although with a franchise some is available free. With a franchise I understand it does not usually include business mentoring. So if it’s new to you, you may have to pay for that help. In MLM home based business with a good company the marketing help comes as part of the deal.

Why you may ask?

Well because the MLM I am recommending is structured so that the person who does the recruiting also helps the people they recruit. In making them successful they all financially benefit. This team building is the essence of success in MLM marketing and people who have done this for a few years reap large rewards without having taken a huge gamble to raise equity.

So if we look an MLM business which costs less than $2000 initially and potentially enables you to earn hundreds of thousands of dollars a few years down the track why wouldn’t that be much more attractive to you than risking your house?

There is the company which excels in all respects and is ideal for MLM people:

? It is debt free
? Publicly listed on the NASDAQ
? Achieved 1.5 billion turnover in the first five years
? Is a global business operating in ten countries and six more 2007.
? Ranked number 5 in the 200 Best Small companies by FORBES in the US.

If we summarise the benefits then we are talking about a business which:

1. Does not require a large amount of capital
2. Does not require you to hold stock.
3. Does not require staff.
4. Does not require you to rent or buy expensive premises because you can work from home perhaps from one room set aside as your office.
5. Enables you to make an income relative to your efforts which could be in the six figure bracket after a few years.
6. Does not confine you to office hours - you can work at a time convenient to you and your family.
7. Will still function once established without loss of income if you decide to take a long holiday.

Why then would anyone wanting to start a business not want to take the least expensive option?

The MLM choice comes without all the financial risk and headaches.

You can have the same earning potential as the conventional business with total support as part of the deal.

For more information, contact Vernon Johnson

11/134 Hill Road, Runcorn, Brisbane 4113 Australia, biohealth@aapt.net.au

2. Does not require you to hold stock.
3. Does not require staff.
4. Does not require you to rent or buy expensive premises because you can work from home perhaps from one room set aside as your office.
5. Enables you to make an income relative to your efforts which could be in the six figure bracket after a few years.
6. Does not confine you to office hours - you can work at a time convenient to you and your family.
7. Will still function once established without loss of income if you decide to take a long holiday.

Why then would anyone wanting to start a business not want to take the least expensive option?

The MLM choice comes without all the financial risk and headaches.

You can have the same earning potential as the conventional business with total support as part of the deal.

Credit Card Fee Increases

This month on our two credit card statements are notices informing us that as of Oct. 1st we may be charged "more than two" late fees or over the limit fees" per month. What's going on? Gwen It's estimated that Americans charged $1.8 trillion in 2005 on the 690 million credit cards outstanding. According to a Government Accountability Office study released in September, 2006, 13% of credit card users were assessed over-limit fees and 35% were assessed late fees in 2005. So Gwen has a lot of company. Let's try to do three things. First, understand what these fees are. Next, see how fees are changing. And, finally, what Gwen can do to keep from being hurt. Credit cards have always had fees. Some, like for a late payment, are understandable. Others came along as credit cards took on new capabilities. Think cash advance and balance transfer fees. Still others, like over-limit fees, seem like they shouldn't be possible. You would think that they wouldn't allow you to borrow more than your limit. There are also 'penalty interest rates'. If you're late with a payment or go over your credit limit you could see your rate bumped to 30% or more. The 2006 GAO study looked at fees and penalties. It said that not only were fees increasing, but the credit card companies were doing a lousy job of informing consumers about those fees. The credit card companies are obligated to tell you about any fees or penalties and how they're triggered. Some fees, like paying your credit card bill by phone, are sometimes not clearly disclosed. What Gwen received with her statement was a notice of a change in how fees would be charged. And, as long as she's notified they can get by with almost anything. Late fees have nearly tripled in the last 11 years. And many cards have adopted a 'universal default clause' that says a late payment on any card will trigger the penalty interest rate. Credit card companies say that the higher interest rates and fees are appropriate based on risk factors. If it weren't for the higher fees, they claim that they wouldn't be able to offer credit to riskier consumers. In fairness, the GAO's survey found that (at least among 6 of the largest card issuers) 80% of accounts paid interest rates of less than 20%. So the vast majority of card users are not paying penalty rates. But the study also found that the disclosures were written well above the eighth grade reading level and (surprise!) featured small print. They recommended that the Federal Reserve Board revise rules on credit card disclosures. Now that we understand what's going on we can try to help Gwen avoid problems. The first thing is to recognize that the card issuers get to make most of the rules. And, whether those rules are fair or not isn't relevant. The best she can do is to avoid getting hurt by those rules. Get familiar with each account. The only way to know exactly what's allowed is to read and understand the "Card Member Agreement." Tough duty. But necessary. Watch out for unexpected fees. Like for balance transfers or increasing your credit limit. Know what could trigger fees or penalty rates. Know exactly when your payment is due. Keep a list of due dates for your credit card accounts. If you don't get the bill, it's your responsibility to contact the company and still make a timely payment. If possible, the best thing to do is to join nearly half of the cardholders who paid little or no interest. That's because they do not carry a balance. Obviously, for many people that's not immediately possible. Then it's important to send in your payment as soon as possible. Being seven days early is better than being one day late. If you find it difficult to get your payment in on time, you might want to authorize the credit card company to automatically debit your checking account for the minimum payment each month. You'll probably pay for the service, but that way the payment can't be late. Talk to your card issuer. If your due date falls at a bad time of the month, they'll move it. If Gwen is near or over the limit on any card, she should try to shift part of the debt to a different card. Some fees are even being assessed when an account is merely getting too close to the limit. Your best bet is to keep balances to less than half the available credit. Although the higher late fees are infuriating, they do minimal damage. The real problem is in the universal default clause. Most credit card accounts now have a universal default clause. Suppose your rate went from 15% to 30% on every open credit account. For every $1,000 you owe, an extra $150 interest would be charged each year. So if you're the type of person carrying a $10,000 balance, that one late payment could cost you $1,500 per year. For as long as you have the balance! Gwen is right to pay close attention to her credit card accounts. With newer fees and penalty rates in place, it becomes more important to manage your credit. In fact, it's critical to your financial wellbeing.