Category: Operations

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Operations

The Official Merchant Account Providers’ List of Claims


Article Contributed by Andy Lax
In every industry, with fire in their bellies, pitchmen and women embellish claims, hoping to reel in buyers by using smoke and mirrors. Consider the cosmetics industry, for example. We incessantly hear about the latest miracle anti-aging cream, able to reduce lines and wrinkles by x percent in y time. Elasticity, firmness and skin radiance dramatically increase, and with the continued use of product, one’s face defies gravity even more than airplanes.
Too many times, sadly, the buyer reports that the given product did not live up to claims. There goes money out the window yet thousands continue to search the holy grail of cosmetics – for the right product, at times regardless of expense.
Even in my own beloved merchant account field, declarations are made to entice and galvanize merchant interest. Accuracy and honesty be damned – all in a concerted effort to close a sale. In the spirit of safeguarding consumer protection, the following lists some common merchant account claims that may truly be misleading and purposely so:
We will give you z amount of dollars if you find a better offer – Imagine calling this merchant account provider. You report, “Smith Merchant Account Associates gave me a list of fees that are lower than yours. Please forward payment.” You will then proceed to hear that Smith has hidden fees or is a fly-by-night.
There are too many merchant account providers for any company to proclaim that it has the best rates across the board. It’s better to perform your own due diligence and choose the company that you determine has the lowest fees.
I can almost guarantee that you will not get any money by one merchant account provider if you discover a better fee structure somewhere else. (How’s that for a claim?)
We accept 99% of applicants – This is highly unlikely in light of the fact that an underwriting team assesses each merchant’s application. One criterion that is used in determining whether an application is accepted is the merchant’s personal credit score. Too many business owners do not have the requisite scores to obtain an account. Other business owners may run enterprises that are on a prohibitive list, precluding them access to credit card processing capability.
Sign up with us and get the first month free – Upon closer examination, realize that your processing costs will not be free. Your monthly fee may likely be waived which may be construed as generous. Still, when you compare merchant account providers, look at the total projected costs for a year’s time to make a suitable determination.
We offer free credit card processing terminals – Any honest merchant account company should disclose the caveats associated with the “free terminal” program. When a prospective customer investigates purchasing our “free terminal,” I am quick to delineate the terms and conditions. It may be better to just purchase a terminal outright.
Our credit card rates are as low as – In the merchant account field, a merchant’s rates are dependent on the type of credit card that a customer offers. If a customer uses a check card, for example, the merchant account provider’s rates are lower than if a customer uses a standard Visa/MasterCard card. Such savings may be passed on to the merchant.
Therefore, a merchant account provider may disclose the lowest rate that the company charges. (We’ve even had to do this on our website as prospective clients need to know that we provide discounts for certain types of cards, too.) But it behooves the merchant account provider, in an ethical sense, to explain that the lowest rate is not across the board and the rates go higher for different types of cards and transactions.
Limited Time Offer – These three words have been used in every form of advertising, in every sector of business, since the Stone Age. Yes, merchant account providers may run intermittent special offers, but more times than not, such wording is just used to lure the “impulse buyer.”
Our company was voted best by … – What entity voted for you? What criteria did they use? I am not aware of any prominent organization that ranks merchant account providers. And if there was such an organization, do they really evaluate the hundreds, if not thousands, of existing providers? (I have seen several sites list the “best merchant account providers,” but my emails are not returned when I asked them to evaluate our company’s pricing.)
Use us because we’re a bank – Please note that all reputable merchant account providers work in concert with acquiring banks. Going directly with a bank may or may not prove advantageous.
If you open an account with us, we’ll give you … — Merchant account providers may provide you with any meaningless gift. I’ve seen several, for instance, that promise to register you with thousands of search engines. This is not necessary and will not help your site’s visibility. It’s just another marketing tool to make the prospective buyer think that he/she is gaining something for nothing
We get better rates from Visa/Mastercard – Merchant account providers who assert that their rates are better from the cardholding associations do so in an attempt to make merchants believe that they pass savings onto them. All providers deal with the same Interchange rate structure although some may have less “bin” or basis points that they have to apportion to their banks. The merchant account provider/acquiring bank relationship often has no bearing on the rates charged to the merchant.
Our bank is the largest one this side of the Mississippi – This can either be construed as a positive or a negative. Will the merchant receive exemplary customer support or will he/she be lost in the shuffle? How about the rates? Smaller providers may be hungrier for business, and may offer superior fees. Bigger doesn’t always mean better. (Where have I heard that before?)
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Of course, there are a number of other tempting phrases that you’ll see emanating from merchant account companies’ websites. Remain vigilant, be an educated consumer, a smart shopper, and a wise soul. As my Grandma always says, “You can’t believe everything you read. (Of course, this truism does not apply to anything that I write.) She also says, “There’s no truth in advertising.” (My grandmother is very cynical, or “realistic,” as she puts it.) Let the buyer beware!

AndyLaxPhoto.jpgAndy Lax has worked in the credit card processing industry for over five years and is now an Account Manager at IntelliCollect, a merchant account provider that enables business owners to accept credit cards and electronic checks.

Categories
Online Business Operations

The International Connection – Virtual Assistants Globally Taking Clients To New Frontiers

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Article contributed by Diana Ennen
You would have to live under a rock to not hear about the latest craze that is spanning the globe – Virtual Assistants. With the economic outlook diminishing, and more and more companies working with fewer employees, businesses are flocking to find the right virtual assistant for their team. The need is simple: Someone that can do the work virtually, professionally, and with the upmost of confidentiality. Fortunately, Virtual Assistants meet all those needs and more.
Virtual Assistants, like their clientele, are highly skilled professionals working as independent contractors from their home offices. Virtual Assistants use leading edge technology to communicate work assignments via the Internet, e-mail or disk transfer. Traditional methods such as regular mail and overnight shipping are also used. While most Virtual Assistants will never meet their clients, it is not unusual to find a VA providing pickup and delivery service in their local area. Many have found success in a combination of the two, local and virtual clients. And what is even more impressive, is that most Virtual Assistants now realize the amazing power of the Internet and their client base spans globally.
The ultimate goal of Virtual Assistants is to partner with their clients. By partnering the VA learns all they can about their clients’ business to become a trusted and valued member of the team—an extension of their organization. At the same time, the VA only charges for time on tasks so it ultimately saves the client in overhead expenses while affording them the necessary time to take care of more business.
A perfect example of a Client/VA partnership is the sole proprietor; let’s say a consultant, who charges $300 an hour for his consulting services. The consultant is spending time each week preparing presentations and teleseminars, rummaging through paperwork, marketing his business, keeping up with the social networks, generating mailings and sorting through the tons of email he gets on a weekly basis. Since the consultant is doing this work himself he is paying $300 an hour for these services when, in reality, it would benefit him to partner with a VA at a rate of $40 to $95/hr (depending on specialty) and save tons of money a year. Plus, he could be generating more revenue because he would have more time available for doing what he does best—consulting. See how it works? As evidenced in this example, clients can’t afford NOT to have a virtual assistant on their team.
In addition to the financial rewards for the client, the following list reinforces other areas clients benefit when working with a virtual assistant.
Personalized attention – The virtual assistant works one-on-one with clients and often knows their clients’ business better than they do. That personalized attention allows clients to keep things under control and more organized and often relieves the pressure of having to do it all and remember it all. How great would it feel to just say to your VA, please handle this for me and know that it was done.
Exceptional service – Virtual Assistants are a proud bunch and take great pride in the Virtual Assistant Industry. One of the ways that VAs protect the integrity of this Industry, is to always offer exceptional services. Virtual Assistants want their clients to tell others about them and how having a VA on their team is one of the best business investments they have ever made. Therefore, most Virtual Assistants go above and beyond what is expected of them to make sure the work is done accurately, professionally, and successfully.
Experience in the latest technology – A virtual assistant knows that there’s always an easier and better way to do things and are constantly looking for those ways. Most continue to update their skills and network extensively with others to learn the latest and greatest tools out there.
A colleague to brainstorm ideas with – Have you ever had this great idea, but just couldn’t bring it to fruition because you couldn’t get it all together? Not anymore. Virtual Assistants are there to brainstorm and work with you to help you bring those visions to reality.
No benefits/no equipment/no office space – That’s a given. It’s obvious that clients won’t be paying for their Virtual Assistants’ office space or equipment. But in today’s economy, think how truly important that is. By not having to pay for someone’s electric and office use, that saves money. Money clients can spend in growing their businesses.
Specific knowledge of your niche – This is perhaps one of the greatest benefits that a virtual assistant can offer – specific knowledge of a clients’ particular niche. Virtual Assistants specialize in different areas, fine tuning their skills always striving to be the best in that niche. Therefore, when you partner with a virtual assistant that specializes in the area of your business, you have someone who knows the lingo and knows the ins and outs and what works and what doesn’t. It’s a win/win for all.
What types of services can a virtual assistant perform? Sit back and be amazed. Virtual Assistants can assist with tasks as simple as transcribing every day correspondence to as detailed as implementing an entire marketing campaign. Virtual assistant services include the following: publicity and marketing, article and press release writing and distribution, social networking updates, legal, medical and general transcription, bookkeeping, web design, administrative tasks, and so much more.
As Virtual Assistants become as commonplace in the workforce as the computer in everyone’s office is now, there’s never been a better time to analyze what your business needs are and how the right virtual assistant will meet those needs. Stop by our site at Virtual Word Publishing, www.virtualwordpublishing.com for complete information on what a virtual assistant is and how you can find that virtual assistant to add to your team. Also, if you feel a career in the Virtual Assistant Industry is right for you, email me at diana@virtualwordpublishing.com for our free business informational package. Today’s the day to start running your business better. The start begins with one simple step – Hire a Virtual Assistant.

ABOUT THE AUTHOR:
Diana Ennen is the co-author of numerous books including Virtual Assistant: the Series, Become a Highly Successful, Sought After VA with Kelly Poelker and Words From Home: Start, Run and Profit from a Home-Based Word Processing Business. She specializes in publicity and book marketing and is president of Virtual Word Publishing. Email us at diana@virtualwordpublishing.com for a free business informational package.

Categories
Home-Based Business Operations

The Ultimate Guide To Creating A Bookkeeping System

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Are you one of those people who are guilty of just stuffing your receipts into a folder and thinking ‘I’ll sort that out when I’ve got time’? Do you need a more organised bookkeeping system, nothing too flash, just something that’s simple and easy to manage?

Follow my tips below and you’ll soon have that simple and easy-to-manage bookkeeping system that won’t bring you out in a cold sweat whenever you hear the words ‘tax return’. And I promise you, it works!

1. Gather your supplies!
Get hold of a large ring binder, divider cards, A4/letter-sized paper, stapler, pen, all your business receipts and invoices, plastic folders and a large coffee (or whatever else you prefer!).
Then lock yourself away for a couple of hours.

2. Get Organized
You now need to organize your ring binder into the following sections:

Invoices – Unpaid — this section is for your outgoing business expenses that have not yet been paid i.e. supplier invoices. Write on the top of each invoice the date it needs to be paid by and place all unpaid invoices in ‘date to be paid’ order with the earliest one on top.
Invoices – Paid — this section is for your outgoing business expenses that have been paid or you’ve paid at the time service was rendered, i.e. that ream of paper that you bought from the office supplies store. Staple each receipt on to a blank piece of paper rather than just putting them directly into the ring binder. This just makes it easier to see at a glance all your receipts and you can also make notes on the paper. Also write on the top of each invoice/piece of paper the method of payment.
Receipts – Unpaid — this section is for all your invoices that you have sent to clients that have not yet been paid. Write on the top date payment is due and put them in date order so that it’s easier if you have to chase overdue invoices.
Receipts – Paid — this section is for all your invoices that have been paid. Write on the top the date it was paid and how it was paid i.e. cash, check, credit card etc.
Bank Statements — this section is self-explanatory! Just keep everything in date order.

3. Schedule It In
Now that you’ve got your system in place, schedule in each week/month to keep your bookkeeping binder up-to-date. In between updating place all your receipts and invoices in a plastic folder so that everything is together when you come to update your system–it would be too time-consuming to add each receipt as you get it!

What Next?

Depending on how far you want to handle your own accounts, you can either hand your very organised bookkeeping binder over to your accountant at the end of the financial year for them to prepare your final accounts, or you can maintain your own books with the use of financial accounting software.

Either way, you’ve now got a bookkeeping system that is simple and easy-to- manage and won’t cause you to break out into a cold sweat at the very mention of the words ‘tax return’.

Categories
Finance & Capital Operations

Identifying and Reducing Cost Generating Friction In Business

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On average 25% of the Total Cost of Doing Business is tied to inefficiencies…the waste of time, energy or materials, and I’ve had many CEOs tell me that 25% is on the low end.
Nobel Prize winner Ronald Coase, of Coase’s Law , says that there is friction/costs involved with being in business.There is the original friction or cost of finding suppliers, employees and customers. There’s the on-going friction or transactional costs, and then there’s the greatest friction of all…the friction of failure.
Prior to entering the training field in 1982 I had a real job as the corporate credit manager for a regional company based in Denver. My duties as the credit manager included the approval of new credit customers and the management (not collection) of past due A/R. I soon found that on average 70% plus of all past due customers had not paid on time due to “something going wrong somewhere.” In the process of fixing things that had gone wrong I found that I could identify areas of opportunity for improvement throughout the entire supply chain thus driving down everyone’s cost of doing business.
The New Guy Only Thinks He Learned From the Old Guy Who Only Thinks He Learned From The Dead Guy:
It may not be so in all companies, but sometimes employees and business managers operate like automatons, they repeat how they do things over and over again until it becomes ingrained, and as with any habit thinking isn’t required. . And all too often CEOs and top management are complicit if not directly responsible.
If you are a business manager pull out your job description, if you’re a CEO pull out your managers’ job descriptions and check to see if it/they say anything about “Constant Improvement”.
A business manager not focused on improvement becomes an administrator at best and a bureaucrat at worst.
Before improvement/change for the better can take place two thing must happen; first there must be an acceptance or acknowledgment that a business doesn’t have to be sick in order to improve, there is always room for improvement.
Then there must be a commitment made as to who will do what when…and the efforts must be tracked and measured.
Change always generates resistance, expect it in others and in yourself. Tell the affected employees of the changes to be made and then ask why the changes won’t work…take notes for this will become a “to do” list.
Keep changes small so that people can succeed, but once they mastered a change introduce the next small change…no stress no change.
And of course pay people for doing what you want done…like thinking and coming up with improvements.
An old axiom says that “People respect (do) what is inspected (measured) not what is
expected” .
Can you imagine the chaos that would result if traffic cops were pulled off the roads? In much the same way business managers need to be told that a primary function of their job is to think, to always be looking for ways to save a step, a minute or a penny…and then they must be measured.
Over the years I found that this method for organizing and documenting the knowledge needed to do things as right as possible the first time… worked with any business function.
The Five Organizational Ps
Purpose: Every business function must have a clearly stated purpose which answers the question, “Why incur the costs that go with the function?”
Policies: Goal driven guidelines for each major component within the function.
Process: The step by step method for achieving the goals established by the policies.
People Requirements: The right people for the job based on the process.
Process Monitoring and Performance Measurements: Monitoring key steps in the process to ensure quality and measuring against the goals established by the policies.
If the established goals are not achieved either the process is wrong or you have the wrong guy in the job.
Financial profit is necessary for any business to stay in business and the best way to improve on profit is to do things as right as possible the first time. We will never achieve perfection because things keep changing and that’s why Policies and Procedures are never done and we need to place a cover sheet on them that says “UNDER CONSTRUCTION”.
One Size Does Not Fit All
Every person on the planet sees things differently, His Holiness, The Dalai Lama says that there are six and a half billion of us and six and a half billion versions of reality and if you’re married you know what the Dalai Lama is talking about…it’s the same with companies. Businesses are a collection of many different people, none of whom define the business but collectively they make up the business. And what works at one company may not work at another… every company and it’s people are unique . The process for best business practices must be based on each company’s understanding of what is… is.
In Closing
It was time to rotate the tires on the pick-up and for an oil change and lube, I knew it was time because of the sticker on the corner of the windshield. I’ve learned it’s best to make an appointment rather than just show up at the tire place and have to wait if they’re busy…guess what? …no phone number on the sticker. This is a national tire chain and yet I had to wait and remember to look up their phone number when I got home. If I had been able to call them from the pick-up at the time I’d noticed the sticker I’d might have been able to get in sooner, and at my age they were lucky I didn’t space it out altogether. I mentioned all this to the asst. manager when I was checking in and he got it at once…he pulled out a note pad and wrote it all down saying as he did so ,”This is one for corporate, we all use the same stickers.” Good for him…now lets see if Big O corporate gets it.
When people are told that on-going improvements are desired and that they will be measured on coming up with them, they become different people.
They find that they are capable of thinking outside the established box and that it gives far more meaning to their work lives, than just a paycheck.
And it drives down the cost of doing business for everyone in the supply chain.

AbeWalkingBearSanchezPhoto.jpgAbe WalkingBear Sanchez is an International Speaker / Trainer / Consultant on the subject of cash flow / sales enhancement and business knowledge organization and use. Founder and President of www.armg-usa.com, WalkingBear has authored hundreds of business articles, has worked with numerous companies in a wide range of industries since 1982 and has spoken at many venues including the Shakespeare Globe Theater in London.

Categories
Operations

Should You Buy A Business

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YoungGoGetter: Simply put, buying a business presents a completely different opportunity to owning a business than the traditional “start from scratch” strategy that a lot of us are familiar with. Before jumping in, you get the chance to see how well the business is running before you make a decision. If its something that has passed your screening process and it’s something you are considering, chances are the business is structured well already. Of course, this means that there’s less risk involved and maintaining the business shouldn’t be an insurmountable task, theoretically speaking. As well, with a stable business, most likely a steady positive cash flow will accompany it. When it comes to market share, starting a business creates more competition, whereas acquiring a business maintains the existing market share. As you can see, the benefits of buying a business are clear, but before you head to the bank or go running around frantically searching for businesses, there are a few other things to consider.
Park Place vs. Baltic Ave…
The first thing you have to understand that it’s going to cost you a lot more to buy and existing business than to start your own. Built in to the cost of a business is the sweat equity, the time and effort that the original owner put into the business to start it and get it off the ground. It was them that took the risk for you and spent countless hours developing a foundation and you can expect to be paying for every bit of it. Essentially you’re paying a premium price for someone else to create a business. They’ve already created a brand name for themselves and you’re not just buying the business, you’re buying the brand name too.
Even Matlock Can’t Get You Out of This One…
You can call him up to go over a company’s bookwork with a fine-tooth comb before purchasing it, however there are some things that the books just can’t tell you. A bad corporate reputation or poor customer perception can be something that comes along with the business you bought, and that’s very tough to foresee. You are taking over the business as it is. You can’t expect to know everything about the business without being at the helm of it for some time. Old equipment, operating systems or buildings can end up costing you a lot of money to update, but outdated systems can be a great negotiating tool to leverage down the asking price if they can be uncovered before you make the purchase.
It’s a Little Better Than Working for Your Dad…
Your freedom is limited in the sense that there are current systems in place. For example, specific lease agreements may prevent you from altering any physical specifications of the building. As well, more ofthen than not, you’ll have to live with the location of the business as you bought it. Current customer processes are difficult to change too, especially if there is a lot of rapport with the existing client base and they are used to things being done a particular way. Even worse, if clients took advantage of the previous owner (not necessarily losing money, just not maximizing), it can be tough to retain them as you retrain them. On the other side of the table, you have your employees. You have to be careful not to decrease morale by making the first order of business a change in employee policy. By changing things to your requirements too fast, you can upset the delicate balance of a smoothly running machine.
Would You Miss Your Kid’s First Steps?
This may be more of an ego thing, and granted, this isn’t exactly the same thing as your child’s first steps here, but when you start a business from the ground up, there’s the sense of pride you just can’t get when you buy someone else’s business. The proverbial first steps of a business can contribute to the pride which translates into an attitude, a personality that can be manifested in the way the business is run. Many business owners treat their business like a child, even more so when they created it.
Now is the time that you stop and ask yourself, “Is it right for me?” Like I said, buying a business presents a unique opportunity with limited risk, but there are some snags to watch out for. You may pay a premium for a business you want, but with it comes the hidden items that you don’t. It’s pretty obvious that owning a business is a big deal and shouldn’t be taken lightly. This is definitely something where you need to get your ducks lined up. But, as long as you look at it from every angle a few times over, the decision shouldn’t be that hard. So…….is it right for you?
Shedding Some Light on Buying a Business [YoungGoGetter]