Category Archives: Employee Employer relationship

Business 101: So You Got an Idea Do Ya????? Part 4

Organics Admin
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Organics Admin

COO at Aladay LLC
Organic Farmer, Property Preservation Specialist and Custom Glass & Wood Worker. Blogger extraordinaire...
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Do the questions ever stop? What is the correct financing avenues for me?

Bootstrapping is a very popular form of Business Financing
Bootstrapping is a very popular form of Business Financing

 

The simple answer, no they don’t. If you’re successful they never will. Believe it or not, that IS a good thing.

Now that you have spoken to family and friends about your business idea and you have started formulating your business plan. If nothing else you should at least be on information overload. By now you have found out that this endeavor will be a challenge and consume massive amounts of time. Then one of the biggest questions comes into play…

How will you finance the business?

As we have been discussing there are many avenues for financing a business. You have a few choices, including Aunt Sally, credit cards (dangerous), angel investors, venture capital (if you’re really onto something), bank loans (good luck finding them) and the most expensive route, equity. Beware, though: Selling shares to the public comes with a host of headaches, including dilution of ownership, loss of control and regulatory hurdles. Bottom line: Bootstrap the business if you can. Finally, always remember to match the timing of cash inflows from your assets and the outflows to cover liabilities. A mismatch can sting. Here are a couple more avenues that can be pursued and have shown some success in the past.

Tax Increment Financing.

TIF subsidies are geared toward real estate development in targeted areas. Depending on the state, the subsidies can be as large as 20% to 30% of the cost of the project. Better yet, you may even be able to borrow against this subsidized value. If your own community does not offer a TIF program, look at communities that do. You may end up a little farther from your home or office, but it could be worth your while. Always speak with your accountant when playing around with taxes. Any accountant worth their salt will be versed in the current laws concerning taxes.

 

Internal Revenue Service:

No, the IRS does not lend money. But it does allow you to deduct expenses. If you are paying a heap in taxes, evaluate whether you can use your profits to expand your business–and reduce your tax bill. Again this is an area that your accountant can help you with. Remember Thanks to “Reaganomics” from Uncle Ronnie and his deregulating buddy Georgey Boy SR. we were given many ways to depreciate and make business deductions. As Georgey Boy Jr. would say, you must carefully stragerize to maximize your potetial. You accountant will be able to assist you with all the proper methods and ways to deduct monies to assist your business.

 

Bootstrapping:

Many billion-dollar entrepreneurs find a way to grow without external financing so that financiers don’t control their destinies or grab a disproportionate slice of the wealth pie. For more on the sound strategic thinking you’ll need in order to live on your own cash flow. This topic has a bevy of information out there. Here are a couple places that will help you with Bootstrapping. Bootstrap to Billions: Proven Rules from Entrepreneurs who Built Great Companies from Scratch and Finance Any Business Intelligently. Authored by Dileep RaoIn addition there are several website dedicated to helping Entrepreneurs. www.uEntrepreneurs.com. Is just one of them.

So now that you are totally confused as to which type of financing you may want to explore someone sneaks in the back door and say…

How much start-up capital do you need?

Any early-stage investor or small business consultant will tell you that most businesses fail because they were undercapitalized. There are no absolute rules here. However, this is where consultants come in, as there are no formulas with easy solutions. If you do not have enough resources going into your new enterprise then you will need to become very fluent in creative financing. Some say to double your original estimates.

Myself when we got started we consulted with members of SCORE and we actually asked for an extra $5,000.00 in our loan for operating expenses. However, our loan was to finance an upstart organic farm and with produce requiring at least 90 to grow before sales revenues would start coming in we asked for a 120 day deferment  in the first payment, we also asked for 3$ interest and had to agree to 5% for the deferred payment arrangements. Again this would not have been on the table if it wasn’t for the help we received during consultations.

Another question that always comes up in regards to financing. You have to sell your products and the will require some sort of marketing.

How should you market your product?

One of the issues I see with new businesses is that they have no marketing budgets.

Getting the word out about your company–without going broke–is no mean feat. In the mid ’90s, America Online spent so much money flooding the planet with free trial software that it tried to mask the bleeding by capitalizing those expenses on its balance sheet. Before you run out and spend money on software do yourself a favor and invest in yourself. Check with your local City College and see if they have classes. Most people don’t realize you don’t have to take a “full load” of classes as is said of someone that takes 5-6 classes a semester. You also don’t have to commit to a four year education program to take a course or two at Higher Education Institutions.

I will have more on marketing in an upcoming interview with a very dear friend of mine in the San Francisco Bay area Rhonda Baker. Rhonda has degrees in marketing I’m sure Rhonda will share some great do’s and don’t’s on the subject of marketing your business.

 

By now some of you may be wondering about if your idea can be patented or trade marked, copy written???

How do you protect your intellectual property?

A quick follow-on to the previous slide: Say you invented a car that can go 150 mph on solar power alone. A few months later five savvy rivals have reverse-engineered it and are now bringing their versions to market. Before you crank out prototypes for the public, file for a provisional patent. It protects your idea for a year while you work out the kinks. For more on intellectual-property protection, check out “Protect Your Prototype” and “ The Patented Path To Profits.” Always remember, to make copies of everything and have them in a safety deposit box, a safe, anywhere that only you can access until your products have been protected for your future.

A question that will undoubtedly come up should your product be one of intellectual nature;

How big is the threat of new entrants?

11-1 says that if there’s money to be made, the competition will come. You just never know from where. If not a direct rival (think what Microsoft did to Netscape in Internet browsers), then a substitute technology might take out your legs (look at what digital film did to Kodak). Construct barriers to entry–by filing a patent, securing an enviable lease, building a loyal following–long before that happens. Remember that technology changes at the speed of light. What is top shelf technology is a dinosaur tomorrow so you will always want to protect yourself. Speak with attorneys and other professional services in regards to development of your products.

I do hope this information has been a help to you. We will bring you more on developing your business plan in the weeks ahead. Should you have questions or perhaps you would like a consultation please contact us at:

consultationservice@aladayllc.com

 

Until Next time

Happy Gardening

Written by: Aaron Aveiro

Sources: Forbes, IRS, SCORE, SBA our Accountant Janet Vick. at Rand and Assoiates

PPI Fear Factor: Does Fear have it’s Hand on Your Throat???

Organics Admin
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Organics Admin

COO at Aladay LLC
Organic Farmer, Property Preservation Specialist and Custom Glass & Wood Worker. Blogger extraordinaire...
Organics Admin
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Does a National Order Mill use Fear to Control Your Company?

 

Are you a victim of PPI Bullying?
Are you a victim of PPI Bullying?

 

One of the issues that continually rings the bell in the Property Preservation Industry. FEAR. Fear to ask for the money one is owed. Fear to speak openly and honestly without reprisal. Fear to attempt to negotiate. Fear of losing workloads. Fear to act as a business and not some terrified cowering in the corner employee.

I don’t normally speak of consultations but the trend in subject matter lately has  become very disturbing. I’m not the only one hearing this either. Many of my fellow consultants have been saying they are hearing the same thing from their clients. That members of the National Association of Mortgage Field Services intimidate their Contractors into a state of fear that they don’t know what to do or how to proceed when it comes to issues of nonpayment. I’m dumbfounded that BOTG’s are afraid to exercise their First Amendment Right to free speech.

I don’t know about you or how you may chose to operate your business. However, with today being Vetarans Day I’m reminded of all the lives that have been laid down so I can tell my government what I think. Yes folks I can say go screw you Mr. President and not have to worry about being shot…People have died so I can say just that if I so desire.

People have died for everyone in this country to speak their mind without reprisal and yet we have a bunch of sissy cowards afraid to ask for the monies they EARNED. Monies they have a right to. Monies that could make a mortgage payment or to purchase little Johnny and Sally new shoes this year, or buy a new jacket because the one Little Johnny is wearing the sleeves go half way up his arms because it is two years old.

I cannot believe the level of “employeeship” in the PP, or what I call “Emptractors”…

Look very few people are of the nature that they enjoy conflict. But when time and time again one is confronted with the school yard bully. The results are always the same Bully takes your lunch money until the day comes and you are really hungry and you sock the bully in the mouth. Folks if you have not realized this scenario by now you do not belong in business. You belong in the unemployment line.

So let me ask all of you the same question. Are you working off an EIN number or your Social Security Number? If it is your SS number then may I suggest you file for unemployment. I say this with all due respect to those that have never organized their business structure in a manner that would require they write a check at the end of the week to themselves. Yes I’m calling on everyone in the PPI working off their SS number to file for unemployment.

If only 5 people would do that after they have been reduced to cowering with your new found disease broke back status“* after going to the well one to many times and fronted all the resources to complete work orders only to find out at the end of 90 days you were paying more to complete jobs than you were being paid…yes you, you know exactly who I’m talking about. File unemployment and give the unemployment office your contract to review…then please come back and share your story…I’ betting right now that there is at least one person in every state that has an issue of asking a tough question and your work load has stopped. What to you think the IRS would do if there were 50 UEID filings for unemployment within the same industry claiming they were an employee vs an Independent Contractor?

Or how about even reporting these nonpayment offenses to your local Department of Labor. You did the work, you’re entitled to your money.

Here is the bottom line folks, until everyone stops this cowering in the corner like they are trying to avoid the wrath of the wicked step-mother (sorry step-mothers…you’re not all bad)…yes until the BOTG Contractors in the PPI have the guts to ask for what is theirs the powers to be will continue to steal for you.

One of the issues I have seen and heard via consultations is the instability of internal operations due to high turnover rates on employee at the National Order Mills. This matter has caused a rift between our company and a client we’ve worked with for 5 years now. Because someone did not makes notes in our profile I had to have a conversation with the top dog of Vendor management. Our request because of the instability was that we have work order issued prior to having work completed as when employees leave a company we were finding they were not doing their job correctly and making the proper notes on work orders or in the profile jacket. You see once an employee leaves a company the record goes with them when they have not made written notations. Then you have no recourse when issues crop up on your money.

So when the issue came to a head the gentleman responded with this statement.

We have policies in place that 500 contractors abide by and make money at every month.

At first I didn’t give this statement much thought until I looked at something else the same client sent us…our scorecard stating we were ranked 450 out of 845 vendors. So this Vendor Management Person was bragging that out of their 845 vendors they were breaking 41% of them. I was flabbergasted!!!!! How can you brag about that?

However, that is the nature of the industry. Let’s be real folks. These companies are not taking a percentage of what they bill for these services you use all your resources on to complete. They remove a percent of WHAT they decide to pay you. Look businesses bill for services, businesses get everything in writing prior to commencing work. Employees get told what they will be paid and what they have to do to be paid X-amount of money.If you were punching the time clock and you only got paid for 35 hours when you worked 40 you and I both know you would be all over the boss and payroll people where you work. So why the scaredie cat syndrome in the PPI?? I just do not understand why the majority of BOTG’s are so afraid to stand up for themselves and ask for what they have coming.

Again I will encourage everyone that is owed monies to please take advantage of the Istar system that Foreclosurepedia has set up so this information can at least be tracked.As I’ve said before, there are probably 30,000 BOTG in the industry…when one of us individually says something they are “disgruntled” however, when 10,000 people from all over the country say the same thing….big difference folks.

I have to ask once again where are the organizations that claim to “advocate” for the Contractors? Why are they silent? What aren’t they standing up for the Contractors? Just what is it that the National Property Preservation Guild  doing that would say they are advocating? There hasn’t been an update on their website for a month. So what is they are doing? One would think that just stepping up to the plate would help attract membership. But then again when you’re Lost in the Land of Confusion  one tends to get complacent when their boat does not rock.

Remember when you signed your contracts, you remember the clause that stipulates;

You will agree not to be paid for the work you complete if we so decide to keep you’re hard earned money. You have no use for it. and We need it more than you do.

Oh that’s right there is no clause that states this…It is called Fraud in the Inducement.

The Time for Silence is OVER!!!! Speak up. Use the venues available to bring attention to these illegal activities going on in the PPI. Do interviews with media outlets, provide information with people and their blogs. The bottom line is this.Until you sock the bully in the mouth they will continue to take your lunch money…in this instance your mortgage payment..time to get the word out folks…

THE TIME OF SILENCE IS OVER
THE TIME OF SILENCE IS OVER

 

 

Written by: Aaron Aveiro

Opinions expressed are not necessarily those of Aladay LLC  Ownership.

“Broke Back Status” is when a National Order Mill breaks the back of a Boots on the Ground Contractor by not paying them the monies they have earned while completing services on behalf of said National Order Mill for the “Client”. Please note the difference between Status and Fever…..