Tag Archives: IRS

Constructing Wealth With Gold IRA Investments

Retirement and the manner in which it is actually spent is usually a concern that consumes many Americans. Establishing your IRA account in the course of your operating years so as to secure a retirement of plenty need to be foremost within your mind. Thinking of the present state of your economy, you’d be justified in feeling anxious about the time once you lastly stop working for a living.

Gold IRA investments give a perfect way of escalating the value of your retirement account. The stability that may be provided by gold investing in IRAs guarantees the improve in worth of your account as time passes. Gold is really a commodity whose price isn’t affected by market forces. Its value is dictated upon by the law of provide and demand. With the demand for gold hardly met by the provide, the all-natural consequence is for gold prices to rise.

In an effort to make gold IRS investments it’s essential to initial set up a self directed IRA account. That is accomplished either by carrying out a retirement gold of funds from an current retirement account or you can make a direct deposit to open a single. Physical handling of physical assets of a gold IRA by the account owner and its administrator is strictly prohibited by the IRS. Based on IRS guidelines, physical gold should be deposited straight into an IRS-accredited depository so as not to run into fines and penalties imposed by the government.

After you may have successfully setup your gold IRA you can start your look for appropriate gold ira investment. Maintaining in mind that the IRS has set requirements for physical gold assets that you can preserve inside your account would protect against you from getting unsuitable items, as a result wasting your resources. Gold bullion coins or bars have to be no less than.999 fine to qualify for the account. A reputable gold dealer is often your ally in picking the best gold things for the IRA.

You need to not constrain oneself to physical assets once you consider gold IRA investments. Stock possibilities in mining corporations could likewise be taken into consideration. Physical gold can offer you a guaranteed boost in worth in time for your retirement but then stocks nevertheless does the job of increasing its worth at a considerably more quickly rate. But like all stocks, its worth is might be impacted by industry forces and for that reason involves more danger. Nonetheless, stocks can nonetheless provide a implies of diversifying your investment portfolio.

Gold IRA investments may also be within the type of other valuable metals like silver, platinum and palladium. These have been additions towards the typical earlier imposed by the IRS on valuable metals in IRA. The inclusion of other valuable metals in IRA has opened the doors to non classic investments for account owners mainly because gold is substantially far more high priced.

Owning gold along with other valuable metals in gold ira rollover allows you to be protected against the effects of inflation, devaluation, and many other economic concerns. Their values are driven primarily by the law of supply and demand and their uses guarantee their demand. Make probably the most out of your retirement account and invest in valuable metals now.

 

Loan Modification Qualifications 2

You may be asking how you can organize your life in such a way that it’s possible to stay in your home. Here is some information about an important home loan modification qualification.

In order to stay in your home, there are certain home loan modification qualifications you will have to meet. An important one is showing your back finances. Banks and lenders want to see what your bank accounts, bills, financial records and more to assess whether or not you can pay your mortgage once you’ve renegotiated your mortgage. It’s important to keep your financial records in order, because not only will it help you organize your home loan modification application, but it will also help in the future to stay on top of payments and see potential challenges coming in the future.

Go through past bank statements to see what your records show. It’s important to go through your bank statements, either online or through the ones you’ve been mailed. Your bank records might show how much money you have been spending on things you don’t need, past automatic debts you forgot about or some other area you’ve forgotten. This information is also vital for your home loan modification qualification process. Banks want to know how much money you’re making and how much money you’re spending it.

Keep track of your bills. Your car bill, your cable bills, food bills, clothing receipts and so forth should all be kept either in a file or in your computer somewhere. Not only will this help with the loan modification qualification process, but you can keep track of where your money is going every month. Some people don’t realize the thousands of dollars a year they are wasting on magazine subscriptions, ice cream sundaes, car washes and other non-necessities. By keeping track of your bills, you can easier handle your loan modification qualification process and know exactly where your hard earned money is going.

Keep your tax records. You should be holding onto at least the last seven years of tax returns anyway, but you should absolutely hold onto the last few years of tax returns in order to prove what your financial situation is during your home loan modification qualification process. You may have to contact the IRS or your accountant to find old paperwork and/or W-2 forms, but having this information is vital. The lender you are working with is going to want to know what your viable yearly income is, so that it can make a proper determination regarding your home loan modification qualification process. Many people are as afraid of taxes as they are of home loans, so they ignore the entire process. With a qualified home loan modification company, you don’t need to be afraid of either process. You can embrace your finances, have confidence in your ability to keep your home and know where your money is being spent.

Overall, the loan modification qualification process is one that can help you in other areas of your life, including holding onto your financial records.

Legal Disclaimer
The information contained herein is provided for general information and advertising purposes only and is not intended to convey a legal option nor legal advice for any particular case or situation. Nothing in this article shall create an attorney-client relationship. Nothing sent to this law office via e-mail shall constitute an attorney-client relationship. Nothing contained in this article shall be construed to be a guarantee or prediction of result. Prior results are provided for general information purposes only and do not guaranty, warranty or predict a similar outcome with respect to any future matter. Results achieved depend on individual circumstances and not everyone will qualify or be successful in restructuring their mortgage loan.

Build a Foundation For Business Loan Approval

The steps for getting a business loan begin long before you set foot in your lender’s office. In fact, long before the concept of a loan enters your mind you should have long ago set up the necessary business environment that makes getting a loan more likely. Whether you need a loan to start a business, or have been in business for many years and need operating capital waiting until you need the money to get the proper business framework is a pathway to disaster.

The methods for building a financially reputable business begins from the moment of conception. The first second you decide to go into business should begin the process of creating a business environment that is appealing and will attract both investors and lenders should you desire or need their involvement.

Odds are that even if you have the capital to begin a company on your own at some point in time you will need a business loan for one reason or another. Even if you truly believe you will never require outside financing making sure your business has the appropriate foundation is the only intelligent solution for your own investment security. Remember, many ideas sound good as a concept. The key is in knowing that the numbers support a realistic prospect of success.

The Business Plan

A comprehensive business plan should always be the first step in beginning a business. However, this document is not stagnant and should be in a state of constant evolution. A good rule of thumb is a yearly re-evaluation of your business plan. The longer you have been in operation and adhered to your plan, as well as produced a level of success marked out by the plan along the way the more leverage you will have in loan negotiations.

Your business plan will start with a summary of all the key players in your company. Even if you are the only one employed by your company it should fully explain your abilities and what you bring to the table for your businesses potential success. You also want to outline your objectives for the company. Don’t skimp. While it is not a good idea to get starry-eyed and wish for things that are unreasonable, make a very well researched attempt to map out what you expect from your company over a period of time. Five or ten year plans are good ways to start.

Each year as you re-evaluate your business plan you need to give an overview of how you met, or why you did not meet the proposed goals for that year and how it affects your future plans. The next part of your business plan is possibly the most important part when it comes to future investors and lenders.

You should give a detailed proposal for profit/loss over your five to ten year period. Each year as you evaluate your progress you need to detail why you met those levels or hopefully succeeded them. If you fail to meet a projected profit level, or exceed a loss level extremely detailed information as to why and what you plan to do to correct the lack of success is necessary. Your good planning at the beginning created by in-depth research will show an investor or lender that you know what you’re doing, and your business is strong.

Smart Business Owners Protect Themselves

Lenders will look more favorably on a businessperson who understands how to protect themselves and their business. It shows you completely understand how a business works. Once you have your idea fully thought out and a business plan developed the next thing you need to do is get the required business license. At the very least a sole proprietor should have an LLC to protect their family from financial fall-out. Then you need to get licensing from the city, state and federal government where necessary so you operating legally.

Business Identity

It is not enough to simply have the licenses your business needs its own identity. It should be registered with the IRS, and have its own bank account under the business name, listing the business address. When you set up your business phone, even if you are operating out of your own home, get it registered in your businesses name so that directory assistance will have it listed when potential clients and customers are looking for you, as well as for when lenders want to check up on who you are.

Build a Foundation For Business Loan Approval

The steps for getting a business loan begin long before you set foot in your lender’s office. In fact, long before the concept of a loan enters your mind you should have long ago set up the necessary business environment that makes getting a loan more likely. Whether you need a loan to start a business, or have been in business for many years and need operating capital waiting until you need the money to get the proper business framework is a pathway to disaster.

The methods for building a financially reputable business begins from the moment of conception. The first second you decide to go into business should begin the process of creating a business environment that is appealing and will attract both investors and lenders should you desire or need their involvement.

Odds are that even if you have the capital to begin a company on your own at some point in time you will need a business loan for one reason or another. Even if you truly believe you will never require outside financing making sure your business has the appropriate foundation is the only intelligent solution for your own investment security. Remember, many ideas sound good as a concept. The key is in knowing that the numbers support a realistic prospect of success.

The Business Plan

A comprehensive business plan should always be the first step in beginning a business. However, this document is not stagnant and should be in a state of constant evolution. A good rule of thumb is a yearly re-evaluation of your business plan. The longer you have been in operation and adhered to your plan, as well as produced a level of success marked out by the plan along the way the more leverage you will have in loan negotiations.

Your business plan will start with a summary of all the key players in your company. Even if you are the only one employed by your company it should fully explain your abilities and what you bring to the table for your businesses potential success. You also want to outline your objectives for the company. Don’t skimp. While it is not a good idea to get starry-eyed and wish for things that are unreasonable, make a very well researched attempt to map out what you expect from your company over a period of time. Five or ten year plans are good ways to start.

Each year as you re-evaluate your business plan you need to give an overview of how you met, or why you did not meet the proposed goals for that year and how it affects your future plans. The next part of your business plan is possibly the most important part when it comes to future investors and lenders.

You should give a detailed proposal for profit/loss over your five to ten year period. Each year as you evaluate your progress you need to detail why you met those levels or hopefully succeeded them. If you fail to meet a projected profit level, or exceed a loss level extremely detailed information as to why and what you plan to do to correct the lack of success is necessary. Your good planning at the beginning created by in-depth research will show an investor or lender that you know what you’re doing, and your business is strong.

Smart Business Owners Protect Themselves

Lenders will look more favorably on a businessperson who understands how to protect themselves and their business. It shows you completely understand how a business works. Once you have your idea fully thought out and a business plan developed the next thing you need to do is get the required business license. At the very least a sole proprietor should have an LLC to protect their family from financial fall-out. Then you need to get licensing from the city, state and federal government where necessary so you operating legally.

Business Identity

It is not enough to simply have the licenses your business needs its own identity. It should be registered with the IRS, and have its own bank account under the business name, listing the business address. When you set up your business phone, even if you are operating out of your own home, get it registered in your businesses name so that directory assistance will have it listed when potential clients and customers are looking for you, as well as for when lenders want to check up on who you are.

A Necessary Evil

There’s only one bottom line, and what it looks like depends a lot on who is doing your accounting. This is not an area to skimp on. Hire a professional accountant to set up your business, keep your financial affairs straight, and develop regular reports showing where you stand and what your outlook is.

Surround Yourself with Knowledge

Know your weaknesses. If you are not solid in your training skills get managers that can handle working with your staff and train them. This goes for any aspect of your business. Not only will surrounding yourself with people who are experts in their areas make your business a success it will be appealing to those looking to invest in your operation.

Keep Records

Keeping accurate records is vital to providing proof of your stability as a business. Besides your accountant and the IRS any future lenders or investors are apt to want proof of what you put down on your business plan showing you are meeting or exceeding your goals. Having complete and accurate records allows you to prove your success or explain your short-comings better and with more reliability.

Improve Your Chances Of Getting A Business Loan

Is your money shrinking and you feel like you need a business loan? Too many people feel the pressure of throwing together a loan package quickly. These are three identifiable and proven ways to improve your chances of getting a business loan.

Apply for a business Loan with your Business Name Instead of Your Given Name: For instance, use your business loan, “Sarah’s Block Company” versus your given name – “Sara Smart.” The reason you need to apply for a business loan in your business name is because it is a business loan – Not a personal loan. The banks and loan institutions are more than happy to help your business with a business loan, but they shy away from making a business loan to a person. Having a business that is a corporation or LLC improves your rate of success – For example, an S-Corp, C-Corp, or LLC.

Sole Proprietors have difficulty as business owners getting a business loan because they lack the same credibility of being identified as a ‘business’ that goes with a business formed as a corporation – A business that is complete with By-Laws, tax ID number and business bank account. A business portrays the ‘image’ of success better than a person does. It’s because of that, that lending institutions work better for those business people. As a sole proprietor, a person ‘appears’ to be acting in their own interests as an individual-instead of a business. Loans to sole proprietors are rated on the personal credit history and not a separate business history for the credit reporting agencies. That doesn’t look good to loaning institutions.

Even Corporations can mix up personal and business debt. It’s an easy trap to get caught in. Let’s say that you own a construction company and you get a construction loan to develop a piece of property, but use that money to make repairs on your personal home. Although there are multiple ways to justify this, the financial company won’t see it that way. Neither will the IRS agent at tax time. And there is a double penalty for doing this too – If you are audited and have mixed your expenses the IRS may choose to ‘dis-allow’ ALL your business expenses. You can see quickly that this could become the stuff people describe as, “the stuff that hits the fan.”

There are countless examples of mixing business with personal expenses – let’s say you get a business loan for a business computer, but you have some extra cash from the loan. You may think to yourself that you could get that new computer for the kids with the extra money – Bad choice.

On the other side of a business loan is a credit card in your business name. If you practice the same behavior with the credit card that you do the business loan, you will experience the same results.

The second thing to happen from this is that now you are taking a chance on damaging your personal credit score. This lower credit score affects all things with the passing of time. When you truly need the business loan – at a later date – You may not qualify.

Credit scores are a fickle bunch. They depend and rely heavily on past performance, previous and current balances and how close to your credit card limit your balance is (for example, do you have a credit limit of $500, and have charged $480 on that credit card? Consistently? This means that you are ‘always’ in debt at over 90 percent of your credit card limit).

At that rate, with a few of those over 50% of your total “AVAILABLE” balance listed on your credit history, your business loan approval rating goes down to about a zero. Available balance means the total balance you are listed as having access to – For instance, your balance is $250.00, but you have an available balance of $500.00, so (in theory) you could charge up to $500.00.

Don’t do it – Never charge your credit card balance over half of the total balance available to you. Even $1.00 will make a difference on your credit score (a negative one).

Another thing you might not know about credit scores is this: If you want to get the best deal on a car or any other item and you use a ‘credit broker,’ to help you. The job of a credit broker is to take your personal and business Identification and go shopping with your credit for the bet deal they can get you. As your credit is ‘hit ‘ with each inquiry from the individual ‘dealers,’ your credit score goes down an average of 2-4 points per inquiry, per credit bureau. That means if you went car shopping and your credit broker found 40 different credit buying ‘deals’ for you, your total credit score would be reduced approximately 80-160 total points per credit reporting agency. If you were marginal good credit before – Now your credit stinks. Plus, as your credit scores spirals down, the interest rate you qualify for goes up – Whoa! It’s a game for them. It stinks for you.

The ultimate outcome from all of this is that now you are ready to get a business loan. As the owner – or principal of your business, your banker needs your personal credit score to judge whether you are a good credit risk for your business loan. To complete that business loan with any success, your score must be a good one. This is a great thing to remember when you are beginning in business. It’s how you protect yourself that counts.

Get more than one business loan application from more than one lending institution – Not just one. Imagine that this is your business: You are a corporation with a clean credit record. You are new to business and have not yet applied for a loan in your business name, so you have no business history in debt repayment to reference for a business bank loan. Your company is expanding and you need to take it to the next level. You need a couple of additional employees and some specialized tools to manufacture and produce your product for the additional customers you have added to your lists.

Where in the world will you go to ask for that money? You have no loan history.

Don’t let a lack of business loan history stop you. Go ahead and figure out what you need to move forward and ask for several small business loans instead of one large business loan. Your chances of business loan approval are dramatically increased by using this method and you will gain experience with creating a loan history easier for about the same cost as one large loan for everything.

You may be better off to apply for an unsecured line of credit that could be based on your stated income versus a full-blown loan application process. Sometimes that’s key to whether or not you get the money you need and the approval you want. Not only are these lines of credit easier to get, because they offer fewer restrictions, but they will give you a business history to reference the next time you need to expand and grow your business.

Positioning Your Company for Debt Financing

Positioning Your Company for Debt Financing:

There was a time in the old days when going to the bank was the only way to get outside capital for your business. These days with the explosion of raising equity investment, many of the guidelines for running a company have been revolutionized. Unfortunately this new phenomenon is only true for companies with super “star power”, because these companies have potential to create sky-rocket return earnings.

For everyone else, sticking to fundamentals is where it’s at. Building your company incrementally, following a pre-prepared business plan, watching expenses, and increasing sales. When your company moves beyond its launch, it begins to operate much like a bank. On the financial side you will be making credit decisions
involving your customers. Some will have to pay C.O.D., some you will extend net 30 day terms. In this sense you are now becoming a banker for your customers.

Without getting into how inexpensive debt financing ultimately is compared to equity (try 20% annualized interest versus 20% ownership lock stock and barrel), in certain situations the time honored tradition of borrowing money can be the best solution for increasing growth or starting a company.

By knowing what commercial finance companies look for, you will become a much more attractive prospect.

1. Concentration – This means putting all your eggs in one basket. Avoid going out and making a large sale to a customer and then not continuing your sales effort to find more customers. The risk of a problem developing with your main customer, or for whatever reason they are no longer buying from you can obviously be detrimental to your success. Finance companies look for incoming revenue to be spread evenly over a number of customers.

2. Creditworthiness – Who are you lending your hard earned assets to? What kind of due diligence do you perform on new customers? The challenge here is whether to accept a lucrative sale with a company that could never get credit from any type of finance company. You are essentially telling yourself that you know better than the banker about loaning money. Finance companies will respect a business owner that has a thorough credit checking process and a number of stable credit worthy customers.

3. Book keeping – While some businesses send out all their accounting to outside agencies, it is helpful to have a qualified book keeper on staff. When it comes time to seek financing, being able to produce an instant fiscal snapshot of your company will show the sophistication of your operation. Finance companies appreciate businesses that keep a close eye on their books.

4. Taxes – Pay them. Using the Internal Revenue Service as your funder becomes expensive. Whenever you work with a finance company, you will be pledging assets as collateral, thus the nature of debt financing. When you fail to make tax payments, the government steps in and places a lien against those same assets essentially stepping into first position.

This leaves the finance company with money outstanding to your business and no collateral to back it up. This places your entire relationship in default. When going to closing on financing expect to sign a form that allows the finance company to receive duplicate correspondence from the IRS. This is standard procedure to track tax problems. Owing taxes does not mean you cannot get financing. It is entirely possible to receive a subordinated debt agreement from the IRS which allows the finance company to work with you unencumbered.

5. Bankruptcy – If you have ever entered into a bankruptcy proceeding whether personal or business, own up to it right away. It will come out, and being up front about the circumstances will enhance the necessity to overlook the past difficulties.

6. Applications – Finance companies ask for a variety of information when performing their due diligence. Do not be alarmed, they are not trying to steal your secrets. They need to feel comfortable with you and your company. Each company has its own threshold for fact checking. Invariably the finance companies that do the most thorough job are the most reliable and safest to do business with. Finance companies like working with a business that takes the time to put a loan package together in advance of asking for financing. Typically you can start with; Interim Balance & Income Statement, Interim Profit & Loss Statement, Last Year End Statements, Accounts Payables Aging Report, Accounts Receivables Aging Report, and of course Tax Returns.

7. Contracts – Be prepared for onerous language. Finance companies cannot sugar coat the reality that if something goes wrong they need to exercise their rights. They have to go into the relationship always thinking that the absolute worst case scenario will unfold. Once a finance company finds itself being defrauded, stolen from or payments not made without explanation, it’s too late to insert stronger language for protection. By and large the language is standardized and walking from a deal to start shopping for less demanding legalisms won’t produce much.

Remember this, a contract is just paper in a file cabinet until you default on your agreement. Stay within what you agreed upon and all the tough language won’t matter. Even if you start having financial difficulties, get in touch with your finance company immediately. You can greatly reduce the chance of default by showing that you are pro-active with your situation.

8. Using the money for the right reasons – This sounds obvious but in certain cases it can be highly relevant. You hear a lot about going to the right Venture Capital Firm that would handle your type of investment. In some ways that holds true for debt finance companies. They tend to work within industries that they feel comfortable. Additionally the type of financing company will depend on your plans for the money. If you are trying to set up a new business infrastructure, then a working capital line of credit is not your best option. You will probably do better with a term style loan that will allow you to amortize the expense over a period of years.

9. Management Integrity – Also like equity investment, get a good team together and hold onto them. Finance companies raise red flags when a long time Financial Officer who has been the contact person at the company since the inception of the relationship all of a sudden leaves without explanation. Again, always fearing the worst, the finance company could unjustly feel that something untoward was afoot and begin to scrutinize your account more closely. Even though finance companies are not part owners of your business, they are partners in your success just like your good customers. Keep them abreast of breaking news.

10. Be Professional – Answer calls and messages expeditiously, be prepared with information, show up on time. When its crunch time and you need an extra fifty thousand dollars for a week to get a better deal from a vendor, you would be surprised how much mileage you can get by being a courteous and thoughtful customer to your finance company.

How I Setup My Business Bank Accounts

Breaking down the process into small individual tasks

The small tasks involved in starting a new business can often times add up to become a seemingly overwhelming process when looked at in their entirety. It is important to remember that most of these tasks really are small, and looking at them as such makes things seem a lot easier. In this article I will focus on what I looked at in my situation in order to setup my business banking accounts.

Prior to setting up my banking accounts

To get to this point I had to complete a series of other small tasks in order to have everything ready for setting up my business banking accounts. This included setting up my business address, completing my limited liability company paperwork and receiving my LLC paperwork back from my state’s secretary of state office, and applying for and receiving my Federal Employer Identification Number from the IRS.

What I needed in a business banking account

I started out with a little research using the internet on what was required to setup business banking accounts. There is quite a lot of information available which can be easily found, so I will just document my steps in the decisions I made for my particular setup. There were a few things besides low monthly fees that I wanted from by business banking account.

1. A local convenient branch location

2. A national chain with many locations

3. A good on-line banking service

4. The ability to add on a multitude of business services down the road

5. Low or no recurring monthly business banking service charges

A convenient branch location

The good news is that I was able to find all of these things in my community. I needed a local convenient branch location because I do not want to have to travel all over the place to perform my banking tasks. This is a matter of time-management for me, and in the past I have chosen poorly with personal bank accounts because I thought I would do most everything on-line and not really need something close or more convenient. While I do perform most of my personal banking on-line, I still find myself wishing I had chosen a closer bank when there are times I needed to physically go to the bank. Depending on the types of deposits I will need to make, I envision myself needing to physically go to my business bank in the future much more than I need to for my personal banking needs.

A national chain with many locations

I wanted to choose a national bank with many branch offices because if I decide to personally relocate or setup a business in another location, the chances of having a local branch of the same bank is much more likely with a larger national financial institution. This would mean I would be able to keep the existing accounts with the same bank and not have the hassle of starting over with new accounts at a different bank in order to maintain the same convenience of having a close branch location.

A good on-line banking service

Having a very good on-line banking service is definitely one of the major considerations I had in choosing my bank. In today’s day and age, I want and expect very good on-line banking services including on-line bill pay, statements, account funding transfers, consolidation of all accounts into a centralized site for easy viewing, and most importantly built in functionality to download my accounts easily into financial software such as Quicken or Quickbooks.

The ability to add on a multitude of business services down the road

The ability to add additional business banking services or having a business bank which is easily scalable was also a consideration I had concerning the bank I would choose. This is an area which was not the highest priority at this time because I figured that if the bank I chose met the other qualifications then they would also have the ability to easily scale my business accounts to meet the needs of my business down the road. Merchant services and other business financial services would be some of the things I envision needing in the future.

Low or no recurring monthly business banking service charges

Last on my list would be one of the most important considerations I was having at this point early in my business setup. Low or no recurring monthly business banking service charges with the need to only maintain a low balance in my business banking accounts is a must at this time. I would not be opening my accounts with a lot of money, and I did not want what money I was depositing into my accounts to be eaten away at by service fees. I needed an account that would allow me to have a low minimum balance at the same time avoiding as many fees as I could. Many banks have accounts with no minimum balance requirements and no monthly fees for personal banking accounts, but this is usually not the case with many business banking accounts.

Tax Advantages In A Home Business

Every year, several thousand people develop an interest in “going into business.” Many of these people have an idea, a product or a service they hope to promote into an in come producing business which they can operate from their own homes. If you are one of these people, here are some practical thoughts to consider before hanging out the “Open-for-Business” sign. Continue reading

Positioning Your Company for Debt Financing

Positioning Your Company for Debt Financing:

There was a time in the old days when going to the bank was the only way to get outside capital for your business. These days with the explosion of raising equity investment, many of the guidelines for running a company have been revolutionized. Unfortunately this new phenomenon is only true for companies with super “star power”, because these companies have potential to create sky-rocket return earnings.

For everyone else, sticking to fundamentals is where it’s at. Building your company incrementally, following a pre-prepared business plan, watching expenses, and increasing sales. When your company moves beyond its launch, it begins to operate much like a bank. On the financial side you will be making credit decisions
involving your customers. Some will have to pay C.O.D., some you will extend net 30 day terms. In this sense you are now becoming a banker for your customers. Continue reading