Importing and exporting are only some of the duties business owners make to gain better reputation and finances. However, some business owners wish to improve their safety by opting for financial solutions such as import finance strategies. This option offers numerous features, but there are still ways to improve such service. Below are some of the following.
Know import rules and regulations
In order to improve import finance strategies, business owners need to mindful about import rules and regulations of countries. Of course, there are cases when businesses have overseas clients. Therefore, you need to have sufficient knowledge about import rules and regulations. This is important to avoid delays. In addition, having sufficient knowledge about shipping regulations will help make ventures better and more efficient for both buyer and seller.
Opt for the right payment method
The next way business owners need to do in order to improve their import finance strategies is by opting for the right payment method. As of now, business owners can opt for numerous payment options for their import finance solutions such as bills of exchange arrangement, letter of credit and open account. These options can provide the best features that can help make transactions safer and more effective. However, you need to be aware about charges and hidden fees from such options.
Be cautious in choosing the financial institution to work with
Another option that business owners can do to improve their import finance strategies is to be cautious in choosing financial institutions to work with. Of course, there are numerous financial institutions that offer such services. However, not all institutions can provide you the right service that can match your needs. So, it is best for business owners to spend time determining their service to help them assess if they can gain wonderful benefits.
Finally, it is also best for business owners to find alternatives. Surely, import finance solutions from reliable financial institutions are very effective. Not to mention, this service can secure both buyers and sellers. But, there are still cases when issues can affect such strategy. Therefore, finding alternatives can be a good plan. For instance, you can choose to pay for your orders in advance, but make sure to pay for low value shipments only. Or perhaps, when paying a foreign supplier, you can send payments electronically. And, you can also open an account with suppliers if you are working with them for a long time.
What is Financial Healing?
To me financial healing works on two levels. Firstly and most importantly there’s the level of changing your beliefs.
Work On Your Negative Money Beliefs
Beliefs about money and finances have a huge impact on your ability to save money rather than spend it.
I liken negative money beliefs to what I call ‘mind viruses’. If you have a mind virus, it’s like your PC – no new programs you add, no matter how good they are will increase the performance of your PC,
So if people are not in the financial position they want to be, there are some mind viruses present, and we need to remove those viruses – in our case our negative money beliefs.
So when we undertake financial healing, we’re getting rid of the viruses. And this involves looking at people’s attitudes and beliefs about money and about themselves and changing these beliefs. So we’re getting rid of the negatives and re-imprinting our mind with positives.
Practical Money Saving Strategies
Secondly there’s also the practical side as to what to do with the money – how you can save money rather than spend it all.
Sometimes the savings are subtle. For example my background is in financial services and therefore I know that when people have taken out policies to pay out life assurance a while ago, they may well be able to get that policy cheaper now.
Life Assurance Premiums May Be Cheaper Now
This is because of two factors. Firstly the market is more competitive these days, and secondly there have been great advances in medicine. So if you have a certain medical condition it may not now be rated as highly and hence the policy premiums will be lower.
For example, things like AIDS didn’t quite have the impact that we possibly thought it may have in the late 1980s. And as a result premiums have dropped, so there are various ways of saving money now.
To outline another life assurance example – cover you purchased that was relevant at the time – maybe to protect a mortgage or when you had a young family – may not be relevant now because the children have grown up and moved on.
So your level of life assurance may now not be necessary, and you may be able to substantially reduce your outgoings.
So there may be ways of getting reduced levels of cover that meet your current requirements but will save you money on a monthly basis. It’s always best to explore this in association with a financial advisor that you know and trust.
Financial Healing Summary
Firstly you need to remove any limiting beliefs about money and finance that are preventing you from saving money for your future. This will prevent new, useful personal finance strategies being sabotaged.
Secondly, you need good advice on your current spending to check that it meets your lifestyle needs currently. In our two examples we spoke about life assurance premuims, but you also need to audit all your regular spending areas.
It’s Not Just About Money
Once you’ve dealt with a few negative money beliefs, you may realise something. Often it’s beliefs about ourselves that we need to change. It may be you believe you are not good enough to have good relationships, be healthy and be wealthy.
So there is a bigger picture here; we don’t look at just beliefs about money but we look at beliefs about ourselves.
You can turn the gloomy times into profitable opportunities for yourself with the right leadership finance strategy, even during these times of the world economic setback. This involves nothing but being able to clearly understand the market and recognize the right opportunities to think about your investments.
Whether you are acting on behalf of a business, or you are an individual, the right leadership finance strategy can take you quite far, and show you success that most of us may have not hoped to see. Let us look at the most important points that play an important role in deciding how to emerge profitable during a financial crisis.
Recognizing the Opportunities
One of the things most of us fail to understand is that since the market is at its lowest, it is very clear that there will be a huge number of sectors that will only see the returns improve over time (as financial conditions pertaining to their business improves). If you can recognize such sectors, you can come across some very profitable opportunities and positive investment options.
Buying stocks or investment in businesses at the present may require much less from you, as the values are pretty low, but the returns that can be expected over time may be quite profitable. It all comes down to research and studying the market to come across the right investment plans.
Foreign investments can be another great factor towards successful leadership financial strategy. There are a number of countries that pose to offer very good opportunities for foreign investors, and can show very quick growth for your money. However, you should be aware of the associated risks, and also consider the right way to handle laws that govern such businesses and investments.
Long Term and Short Term
On top of the above options, you can also look into the various investment opportunities that offer to be pretty straightforward and risk free. Find out more about such long term investment schemes that will let you add money to it every month out of your savings. The idea is to have money set aside for your expenses, some money for liquid savings, and the rest towards the long term investment plan.
On the other hand, if you want a quick increase in your wealth, forex investments and stocks can also be a good option for you, provided you are experienced with such schemes and are aware of the risks involved. You can also opt for dealing with a good finance agency to advice you on such leadership finance strategy and show you the right way to approach your goals with the least number of associated risks!
Depending on whose stats you pay attention to, approximately 80% of small businesses fail within their first 5 years of operation.
In many cases, its not that a particular business could not succeed; there just wasn’t sufficient time to figure out how to succeed.
Which brings us to the worst small business financing strategy ever.
Here’s how it work.
The would be entrepreneur develops what they believe to be a sure fire business plan that can’t fail.
Unable to locate any form of start up capital, they start their business with credit cards as the only source of financing, and an expectation of sustainable business results within 3 to 6 months.
If everything goes well, the debt will be retired within a year and funds will start building in the bank account.
Sounds Good, right?
I mean the thinking lines up perfectly with all the get rich quick business opportunities that exist on and off the internet today where some of them even try to convince you to use your credit cards because the opportunity is soooooooo good and can’t miss.
The problem is that every business can miss.
Every single one.
And the vast majority do fail.
Have you ever spoken to someone who runs a successful small business; perhaps one that’s been around for 10 to 20 years?
If you take the time to ask one of these entrepreneurs about their start up period, what you learn may shock you.
Even some of the most successful small and medium sized businesses out there today had some hairy moments making a go of it in the early years.
And some times the difficult early years lasted for several years.
The point here is simply this.
The process of getting a business operating and successful can take many unexpected twists and turns, no matter how diligent you are in creating a thorough business plan and business financing strategy.
Therefore, to increase your probability for success you need to allow for the unknown, the unplanned, and the unfair.
A business financing strategy that cannot accommodate unforeseen events is not much of a strategy.
A business financing strategy that is based on high interest credit cards that can destroy both your cash flow and your personal credit is also not much of a strategy.
To improve your odds of small business success, here are some tips for developing a solid business financing strategy.
Invest Your Own Cash
If you have some of your own cash penciled into your business financing strategy, it will immediately increase your likelihood of getting some sort of start up loan.
The more “skin” you have in the game, the more interested a lender will be in approving your loan request.
There is also something to be said about the psychological incentive of losing your own money and the motivation it creates for you to work harder to keep it.
Create Contingencies in Your Cash Flow
Whatever you estimate your working capital requirement to be, double it. At least increase it by a factor larger than 1.
Things can and will go wrong, so give yourself a fighting chance and develop a business financing strategy that allows for less than perfect results.
Use Credit Cards Wisely
Used properly, credit cards can be the cheapest form of working capital that you have at your disposal.
Some business credit cards provide 40 days of interest free financing. If you pay off the entire balance every month, you have an extremely low cost of working capital financing.
But if you start carrying large balances without paying them down monthly, you will go from the cheapest source of working capital to one of the most expensive, and you will likely also destroy your credit rating in the process.
Make Timely Government Remittances
Small businesses are by default tax collectors. And the taxes collected can sometimes wind up funding the business for longer periods of time than they were ever intended.
Using government remittances as a business financing strategy is basically a bad idea.
Government agencies that are assigned to collect from you have large budgets and enough broad sweeping authority to create plenty of grief for you if you are too slow in paying.
If you apply for a business loan while you have an overdue balance with a government tax agency, your loan request will likely be declined.
Even after the balance is paid up, you may have burned your bridge with the lender as a history of overdue government remittances can brand you as a bad credit risk.
Watch Spending Closely At Startup
One of the things you can control early on is how much you spend and what you spend it on.
This is going to change in time, but if you can spend wisely in the beginning you may be able to avoid a cost cutting exercise further down the line.
While its normally true that you have to spend money to make money, you can still be smart about the spending process.