How to Grow a Business in Tough Times

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Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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The following is a guest post on behalf of Mitchell Charlesworth. Enjoy! 

How to Grow a Business in Tough Times

Times are difficult at the moment, and many businesses are feeling the pinch. But while some businesses flounder, others are flourishing, despite the tough economic conditions.

What makes some companies so resilient, and what helps them grow during tough times? There are five factors successful businesses possess that allow them to escape the all-too-common effects of recession. Organizations that are experimental, useful, purposeful, boundary-free, and possess value-creative traits tend to soar even during difficult times.

Value-Creativity

Companies such as Amazon have encouraged value-creativity in their business models. Amazon was once simply an online bookseller, but today, the organization has used value-creativity to spread into a range of different market sectors, from toys and clothing to publishing services. The practice also prompted the online retail giant to acquire businesses such as IMDb and Adebooks. Then of course, there’s the Kindle, which sparked a whole new way to read. By diversifying and finding new ways to create value and revenue, Amazon has created a healthy, strong and growing enterprise.

Experimental

Businesses that sit on their laurels will never grow and will probably find it very difficult to survive the recession. This is especially true of those companies in the technology or online sectors as they move so quickly.

By experimenting, businesses are able to find out what works for them, to explore new avenues for growth, and further their reach into different sectors. It enables businesses to grow with their competition and even stay ahead of the curve. An organization should never be afraid to experiment.

Useful

There is no point in experimenting unless what you are offering will be used by somebody. Another Internet business, eBay, remains strong despite the recession due to its usefulness. eBay is great for buyers, especially at a time when bargain hunting is on the increase. It is also an incredibly simple platform to sell on, which makes it the ideal solution for making a little extra cash without standing in the rain at a car boot or yard sale.

Businesses can also further their usefulness using smart phone applications to make life easier for customers. If you’re looking in to making an app for your brand, make sure it is actually helpful in some way before parting with your cash.

Boundary-Free

A business without boundaries also has room to grow. Free yourself from physical boundaries on the Internet. Websites and social media pages can help you traverse the geographical boundaries and get seen by more people.

Alternatively, if you’ve pigeon-holed yourself as a provider for commercial clients, think about who else might benefit from your service. This doesn’t just apply to big brands either; for example, you might be a local accountant in Liverpool who has come to know and trust. So, consider opening up your services to a wider area online. Extra business means extra revenue, which keeps your business growing.

Purposeful

Above all else, a business needs to be purposeful. Set your goals at the beginning of the year, quarter, or week and stick to them. This is how you can gauge the successful growth of your business.

How about you all? What traits do you feel that businesses possess which succeed in hard economic times?


Share your experiences by commenting below!

***Photo courtesy of http://www.flickr.com/photos/rmgimages/4882451468/sizes/m/in/photostream/

Success In A Freelance Economy

The following is a guest post by Denver, an experienced blogger and freelance writer who loves to contribute her articles to various blogs and websites.

Success In A Freelance Economy

These days, we are all aware of the difficulties in the economy, with increasing numbers of redundancies and a lack of career opportunities. However, we are also seeing a change in the way people are working. Home-based offices and working away from the business premises are becoming more common, as is using professional freelancers for projects. Working as a freelancer is not only a great way to fit work around family commitments, it is also a good way to make a living for those professionals with specialist skills or knowledge.

Is There Work Available for a Freelancer?

The recession has brought hard times for everyone, and businesses in particular now fear the costs of recruiting additional staff. Instead, they are turning to freelance professionals whom they can employ on a contract or project basis, guaranteeing them the skills and experience they need without an expensive hiring process or the long-term cost of full-time employees. Using a freelancer is nothing new, as for many years, businesses have been outsourcing some projects. These days, however, more and more elements of companies’ operations are being outsourced to freelancers. If you are thinking of choosing a freelance career, there is no better time than now.

What Are the Benefits of Being a Freelancer?

As a freelancer, you will have more control over your life. This applies to not only the hours you want to work, but the projects you take on. Many parents choose freelancing as a way of combining childcare with working while avoiding expensive childcare costs. Depending on your chosen industry, the Internet and other technological advances mean you can work from anywhere – you are not tied to an employer’s premises. Being able to choose your own projects allows you to focus on the specific areas that are of interest to you and will give you the chance to develop new techniques and skills as you build up your business.

What Do I Need to Get Started?

It is worth remembering that freelancing can be challenging too. Firstly, you will need to find your niche. You will have to decide if your skills and experience are needed by potential employers. Freelancing covers a variety of roles, from graphic designers to accountants, but whatever sector you choose, you will need enthusiasm and motivation to make your new business a success. Be prepared to put in the time, especially when you start out, as it will take you quite a while to build up relationships with clients and you might find yourself working all sorts of hours. Finding clients who will give you regular work is essential, and remember that word of mouth is the best form of advertising for freelancers.

Freelancing can be a daunting prospect, but there are lots of companies and freelancing websites that are more than happy to offer advice and guidance. Consider starting up your business and developing it slowly alongside your regular job to make the transition easier. One thing that seems fairly clear is that the current economic situation is not going to change any time soon, so opportunities for freelancers can only grow in the coming years.

How about you all? Do you currently perform any freelance work on the side of your normal job? If so, how do you get connected with the people that hire you?

In your full time job, does your company use freelancers for specific tasks?

Share your experiences by commenting below!

***Photo courtesy of http://www.flickr.com/photos/iamgreenapple/4476675378/sizes/l/in/photostream/

Introducing The 2nd Annual Tour de Personal Finance Competition – Submit Your Best Posts Today!

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Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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I simply love the Tour de France.


There is truly something magical about watching this particular 3 week cycling race unfold in July each summer. In the race, the riders cover nearly 2,000 miles, including stages through the majestic Alpine Mountain range and the sunflower and vineyard fields of Southern France. As an avid cycling fan and past Category 2 road cycling racer (I raced once-upon-a-time from 2001-2005), July is a truly a glorious time of year.


For the 2^nd year in a row in July 2012, MyPersonalFinanceJourney.com will be hosting the Tour de Personal Finance. The Tour de Personal Finance is a month-long Tour de France-themed personal finance-blogging competition. In 2011 (the first year for the event), thanks to AWESOME participation by the PF blogger community, the Tour was a great success. This year, I’d love to have you participate once again!

WHAT IS THE GOAL OF THE TOUR DE PERSONAL FINANCE?

Some Information About Last Year’s Event

• Tour de Personal Finance 2011 Introductory Post

• Stage 4

• Stage 16

• Final Championship Sprint

• Tour de Personal Finance 2011 Post Race Recap and Awards Show

Some exciting new changes for this year’s Tour

• Last year, there were 48 different personal finance blogs/articles that participated. For the 2012 event, I am targeting to have 64 different blogs/articles competing.

• I will be reserving the reader portion of my 10% monthly blog income give back event for both June and July as prize money to the Yellow Jersey winner (~$100). The Yellow Jersey winner will also select a charity of their choice to receive the charity portion of the 10% monthly blog income give back (~$100).

• Lastly, in the 2012 event, I have actively been seeking out platinum, gold, silver, and bronze sponsorships from various contacts in the PF realm. I plan to donate half (50%) of all sponsorship proceeds to a charity selected by the overall competition winner (Yellow Jersey). 

• I’ve gotten a couple sponsors interested already, but if you have a close relationship with any contacts that would be interested in teaming up to sponsor this event, please email me and I can send you the sponsorship/media kit I’ve put together. 
• As an incentive for connecting the event with sponsors, I’ll give you 25% of any sponsorship that is realized as a result of your referral.

Welcome Good Financial Cents Readers!

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Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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Welcome Good Financial Cents readers! Thanks so much for stopping by my site by way of the my guest post today over at Jeff’s blog listed below. I’m very happy to have you here! 🙂

Can A Random Number Generator Beat the Market and 70% of Investment Professionals?

If you’re stopping by my site for the first time, I just wanted to give a little guide towards what I offer here, since information overload can occur quickly and time is our most valuable asset.

To introduce myself, my name is Jacob. I started this site back in January of 2010, and since then, have poured my heart and soul in to the site to produce a product I am proud of and I think adds value to the world. You can read a little more on my background and even see a picture of me on the “About” or “First-Time Visitor” pages to find out more about us.

WHAT I WRITE ABOUT HERE AT MY PERSONAL FINANCE JOURNEY

In short, I like to offer actionable personal finance advice with the goal of achieving long-term success. 

Specifically, I really enjoy writing about the following areas (I’ve also listed several posts related to each topic in case you’re interested in reading more):

• Long term investing and asset allocation strategy analysis
• Vanguard vs. Fidelity – Which Funds Are Better?
• What To Do With Your 401k Savings When Leaving Your Employer
• The Permanent Portfolio by Harry Browne – Component Returns Correlation Analysis and My Future Plans
• Valuation Informed Index Investing vs. Passive Investing – Which is Better?
• Deciding how to prioritize new funds as they come in to various spending requirement areas
• Account Prioritization Hierarchy – Which Monetary Needs Come First?
• How Do Mortgage Payments Fit in to the Account Hierarchy?
• How to develop a lifestyle of frugality and live according to your life dreams and life values 
• Balancing Frugality with Fun

Additionally, if you liked the theme/topic (investing strategy analysis) of the guest post I wrote for Good Financial Cents today and are interested in similar posts I’ve written in the past, you might want to check out the ones below:

• Valuation Informed Index Investing vs. Passive Investing – Which is Better?
• Performance Analysis of the American Growth Mutual Fund
• Was the Lost Decade Really Lost for Investors?
• Dollar Cost Averaging vs. Dollar Value Averaging – Which Makes You More Money in the Long Run?

***Photo courtesy of http://www.flickr.com/photos/rameshng/5930493923/sizes/l/in/photostream/

How to Reduce Your Business Energy Costs

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Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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The following guest post. Enjoy! 

Saving Money with Conservation

Saving Money through Professional Consultation

How about you all? What techniques do you know of or that your business uses to save on utility bills?


Share your experiences by commenting below!

How To Improve Your Credit Score

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Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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The following is a guest post. Enjoy! 

How To Improve Your Credit Score

If you’re trying to improve your credit score, it can be difficult to figure out where to start.  It is important to remember that your credit score is a direct reflection of how you’ve handled your credit, so it reflects your actions around your credit.  The easiest way to improve your credit score is to be responsible with credit going forward.

Be On Time, Every Time

One of the biggest impacts on your credit score is your payment history.  This accounts for roughly 35% of your overall credit score, according to FICO.  Your payment history is a direct reflection of how often you’ve paid your bills on time and in full.  So, the easiest way to improve your credit score is to make every payment on time going forward.  After about 6 months, you should see improvement in your score.  You also need to make sure that you are making at least the minimum payment each time as well.

Have Different Types of Credit

New credit and types of credit each impact your score by about 10%.  This means that you should open different types of credit from time to time to diversify your score.  This could include money from credit cards, auto loans, mortgages, and small personal loans from the bank.  Basically, anyone who reports your credit to the credit bureaus can have a positive impact on your score, as long as you are on time with your payments, every time. Also, a word of caution – utility bill payments in your name go on your credit report as well. So, make sure you are current on those.

Always Pay It Back

Finally, you always have to pay back your debts.  The amount you owe makes up roughly 30% of your credit score, so the less you owe, the better your score.  However, you will need loans and credit, so don’t fret about debt.  However, just make sure that you always pay back the amount you borrow, and pay it back on time.

Length of Credit History

Finally, the length of your credit history plays a part as well.  It will take time to improve your credit score, since everything remains on your report for years. As a general rule of thumb, it reflects better of your credit score if you have accounts open longer. On the other hand, closing old small loans can sometimes decrease your credit score.  However, maintaining these tactics over a sustained period of time will help you get your score back!

How about you all? What habits do you practice to keep you credit score high? 


Share your experiences by commenting below!

***Photo courtesy of http://www.flickr.com/photos/alancleaver/4105755730/sizes/l/in/photostream/

The Hidden Impact of Your Credit Report

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Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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The following is a guest post. Enjoy! 

Insurance Companies

Insurance companies run your credit report when determining your home and auto insurance rates. Insurers claim that folks with higher credit scores are far less of a risk than those with lower scores. How does this affect you?

“Consumer Reports” notes that drivers with a poor driving record but great credit scores pay as much as 31% less on their auto insurance premiums, while those with clean driving records but bad credit scores pay up to 143% more. Fair or not, having bad credit makes you a bad driver in your insurance company’s view.

The good news is that while about 92% of insurance companies check your score when you apply for a policy the first time around, only about 14% check it for a renewal. If you’re having credit problems, consider sticking with your current insurer while you boost your score.

Employers

An increasing number of employers are checking the credit histories of job applicants. Some companies claim that a good credit score indicates how responsible an employee will be in their professional lives. Other organizations believe that your credit score reflects your level of trustworthiness. If you’re applying for a job with the government or a financial institution, you can bet those companies will run your credit report.

Individuals with poor credit histories won’t be hired because they are considered far more likely to steal company funds or accept bribes from competitors than employees with good credit scores. Your credit score might also affect your chances for promotion. Some companies will check your credit before offering you a higher position. If you have a substandard credit score, you will more than likely be passed over. In some cases, employers who need to lay off people will re-run the credit scores of all employees. Those with the lowest scores are the first to get the pink slip.

Banks

You undoubtedly know that financial institutions run your credit history whenever you apply for a loan. But, did you know that banks check your report whenever you apply to open a new savings or checking account?

The reasoning is that you could very well become overdrawn at some point or another. Your credit score indicates how likely it is that you’ll pay off those overdraft fees.

Utility Providers

Utility providers and cell phone companies commonly run your credit report before providing you with service. If you have credit issues, you could be required to put down a deposit, pay more in plan rates, or even be denied service.

Because of all the hidden impacts of your credit report, make boosting your credit score a number one priority. This could save you thousands of dollars over the course of your lifetime.

How about you all? Has your credit report been run by organizations or companies that you did not expect it from? 


Have you ever had any of the experiences described above (such as had your credit score affect your career opportunities at your employer or your insurance premiums)?


Share your experiences by commenting below!

***Photo courtesy of http://www.flickr.com/photos/amboo213/4020584983/sizes/o/in/photostream/

What You Need to Know About Mobile Payments

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Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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The following is a guest post. Enjoy!  

How about you all? Do you use these (or other) mobile payment options very often? Do you pay merchants who swipe your credit card on their smart phone reader very often? Do you worry about security with these types of transactions at all?


Share your experiences by commenting below!

***Photo courtesy of http://www.flickr.com/photos/goldenswamp/2790584534/sizes/m/in/photostream/

Ten Ways to Keep Energy Costs Down in Winter

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Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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The following is a guest post. Enjoy! 

During the summer months, our energy bills (non-natural gas at least) are obviously a great deal lower than in winter. This, arguably, makes the summer perfect for preparing your home to make it as energy efficient as possible, which will in turn help you keep a handle on your energy bills when the temperature does drop later in the year.

Here are some simple, yet effective ways that you can keep the cost of utilities down:

1. Check Your Insulation

Old or poorly laid insulation in your walls and roof could be costing you a significant sum of money each year. Hire a contractor to check the condition of your cavity wall insulation or contact your local authorities to see if they employ a dedicated team they can send to advise you.

2. Turn Lights and Appliances Off

A huge proportion of the energy we produce is wasted on television sets, stereos, and computers being left on standby. By simply turning these appliances off when you are finished using them and remembering to switch off lights when you leave the room, you could shave a considerable amount from your electricity bills.

3. Invest in Green Energy

Solar panels are a great way of cutting down on electricity costs and providing an extra income stream. While purchasing and installing solar panels is not cheap, thanks to feed-in tariffs, you could start selling energy back to the suppliers immediately and within a few years, have recouped your investment. Stick with this form of renewable energy long enough and you could find that electricity bills become a thing of the past.

4. Consider the Age of Your Boiler and Heating System

Older models will simply not run as efficiently as newer ones. If your heating system and boiler have been in use for more than twenty years, chances are its energy efficiency is low. A new system may be expensive to install but combi-boilers take up less room and run on less power, meaning the savings soon outweigh the costs.

5. Clean

Simple acts like cleaning the condenser coil on your refrigerator can improve the energy efficiency of the appliance. It is usually located under the door; perfectly situated for sucking up dust and grease. Got a filter attached to your heating system? Clean that regularly too to make sure your boiler will not breakdown due to blockages or dirt in the system.

6. Turn the Thermostat Down

Not that you should have your heating on during the summer anyway. Just turning your heating controls down a notch or two ready for winter and heading for your sweater drawer, rather than the thermostat, when you’re feeling a little chilly can have a noticeable effect on your bills when winter does roll around.

7. Close Curtains in the Evening

More than simply used to close out the world and provide a snug, relaxing environment to unwind in the evening, your curtains or blinds actually help keep heat in. If your radiators are under the windows, make sure your curtains don’t channel the heat to them.

8. Be Aware of Timings

Energy demand increases in the morning and then again in the evening but energy suppliers typically only offer discounted rates in the evening, when demand is at its highest. If you run your dishwasher while you are at work during the day, try setting it to run exclusively overnight for a set period of time (at least a month) then compare your next bill with a previous one. You could find that adjusting the time that you undertake certain energy-dependant tasks could also benefit your pocket.

9. Find and Fix Drafts

The caulking gun could be your best friend if your windows are old and rattily. Attaching draft-excluders to the bottom of doors could also help prevent heat from escaping. If you feel a breeze in your home, block it: it is costing you money.

10. Use a Comparison Site

Don’t just stick with the same energy provider because it’s convenient. Instead, actively seek out a cheaper deal. If there is a cheaper supplier out there, price comparison websites are a great way to find them. By entering your address, you can learn which providers offer services to your local area and how much the monthly, quarterly, or annual cost would be. What could be simpler?

Take these tips on board and you could find that this winter has little impact on the contents of your wallet.

How about you all? What techniques do you use to keep your energy costs down during the cold season? Do you know a specific amount that you save by using these strategies?  

Share your experiences by commenting below!

***Photo courtesy of http://www.flickr.com/photos/tolomea/6028106937/sizes/l/in/photostream/

Buying vs. Renting a Home – Which is the Better Financial Move?

The best thing to keep in mind when deciding whether to take out a mortgage, is to throw away any prior “common sense” knowledge you’re perceived to have on the debate. Don’t assume that buying a home is always the most cost-efficient option, and try to view renting as something more than just throwing away your money every month to “the man.”

Let’s break the argument down into three primary categories.

• Money sent to the land of no return. The general myth and stigma surrounding renting, is that the money you put in never comes back out. While not entirely untrue, it is perhaps unfairly criticized in comparison to the realities of mortgage payments. In the first five years of paying mortgage payments, 80% of the money spent on a mortgage payment goes to interest, which means that – assuming property values and rent sums are in sync – it will not be until 20 years into paying a mortgage that you see less money being “thrown away” on this interest, even at a fixed rate. And while you may see your mortgage payment dip below that of rent payments (which tend to increase by 5% per year) after about five years, it is important to consider where your money is actually going when you write your routine check to the bank.

• Monthly expenditures. One of the more obvious perks to renting as opposed to taking out a mortgage is the all-inclusive nature of most rental agreements. In many cases, utilities are included as part of the package, maintenance is largely your landlord’s problem, and property taxes are a relative non-issue. When buying a home, however, these expenditures – which had previously been your landlord’s issue to deal with – become your financial responsibility. Homeowner’s insurance, property taxes, and general maintenance can all accumulate to sums that cost almost as much as a rent payment itself. And while there are tax savings to be had from taking out a mortgage, the difference still has homeowner’s paying more in the long-term than they would be paying rent.

• Building equity. The core of the renting versus buying debate, building equity is in fact a valuable long-term investment and inherent advantage to buying a home. However, equity comes with its own set of risks and costs – it means properly investing in and maintaining a home, relying on the strength of the housing market (which currently is only appreciating at a 4% rate in today’s market), and buying a home in an area that you are safely certain will not result in a depreciating home value. It is entirely possible to become wealthy off of buying a home, but it is also not any more profitable to buy and sell a home after hefty down payments and expenditures than it would be to simply invest that same money in the stock market, which by comparison, would offer a 7-10% return.

Ultimately, there is no black and white answer to buying a home as opposed to renting, but there are factors to consider based on your lifestyle and financial means. Owning a home can be a wonderful thing, but it can also be a poison if investing in a home not intended to be permanent, making renting – at the very least – the short-term solution.

How about you all? In general, do you think buying or renting is a better choice? What situations do you think renting makes more sense than buying and vice-versa?

Share your experiences by commenting below!

***Photo courtesy of http://www.flickr.com/photos/jwthompson2/139445633/sizes/l/in/photostream/