In Thursday's class (Sept 9, 2010), Mr. William Carter (Coach Carter) spoke about credit and how the credit system works. Credit is one of your most important small business assets. Having good credit shows that you are probably a good businessperson who maybe worth investing with.
If you have poor credit, why would someone or a financing company want to invest with you.? If you can not practice the type of behavior (delayed gratification) that creates good credit and successful business people, then others will be less likely to believe in you.
I have had Coach Carter come to my classes since the mid-1990's. He is good at breaking down the credit maze into smaller items that most people can understand. He uses a booklet, packed with good information, to walk everyone through the credit system.
Today is the second class on credit will study actual credit reports. We will learn how to read them and compare fair/average reports with poor reports. Its hard to find good credit reports in today's economy.
If you would like more information about this class or additional handouts. Visit our class web page and click on Homework > Taking on Risk and your credit.
Tuesday, September 14, 2010
Wednesday, September 8, 2010
Cheap vs Frugal
Its always interesting to me how people consider cheap and frugal the same. It's not.
Someone who is cheap will deny themselves of something because they do not want to spend the money. Even if they have the money, they may try to get someone else to buy it for them.
A frugal person will not deny themselves but will find the best deal. They will use information and knowledge to become a better consumer or negotiate a better deal.
In business this is crucial. You must invest in your business, so it can grow. Being a frugal person helps you become a smarter purchaser of good and services. You will be able to get a higher return on your investment because your are using your cash flow more effectively.
For example, I still see businesses with a separate fax phone number from their local phone company and a fax machine. The cost of this, even with under an annual plan, could be $30 - $50 per month. The frugal thing to do is get an efax service from an internet provider. The monthly cost will be $5.00 to $15.00 per month and the faxes will go to your email. This will save you toner and paper because you can view the fax on your PC (or Smart Phone) first and only print the faxes you need. You can store or delete the rest. To send a fax, use your all-in-one printer to scan documents into your PC or send .doc, .pdf & other files directly from your PC to a fax machine using your efax service.
You get the same or better service at 70% to 85% off and reduced office supplies.
That's being frugal.
Being cheap, is to not having fax capabilities.
The more successfull small business owners are frugal.
Someone who is cheap will deny themselves of something because they do not want to spend the money. Even if they have the money, they may try to get someone else to buy it for them.
A frugal person will not deny themselves but will find the best deal. They will use information and knowledge to become a better consumer or negotiate a better deal.
In business this is crucial. You must invest in your business, so it can grow. Being a frugal person helps you become a smarter purchaser of good and services. You will be able to get a higher return on your investment because your are using your cash flow more effectively.
For example, I still see businesses with a separate fax phone number from their local phone company and a fax machine. The cost of this, even with under an annual plan, could be $30 - $50 per month. The frugal thing to do is get an efax service from an internet provider. The monthly cost will be $5.00 to $15.00 per month and the faxes will go to your email. This will save you toner and paper because you can view the fax on your PC (or Smart Phone) first and only print the faxes you need. You can store or delete the rest. To send a fax, use your all-in-one printer to scan documents into your PC or send .doc, .pdf & other files directly from your PC to a fax machine using your efax service.
You get the same or better service at 70% to 85% off and reduced office supplies.
That's being frugal.
Being cheap, is to not having fax capabilities.
The more successfull small business owners are frugal.
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