Smart Money Choice$

If you need new computer equipment for your business and funds are tight, leasing may look very attractive. But it’s important to be aware of all the consequences involved before diving in too quickly. Take the time to explore the available options now, and you avoid the risk of repenting later.

Why do some choose to lease instead of buy their equipment?

The big attraction to leasing, of course, is that it is so easy to do. If you don’t have a lot of cash, but need the equipment now, the “easy monthly payments” are oh, so tempting.

Leasing, however, is renting the equipment for a specific period of time. It’s much like renting office space; it doesn’t belong to you. But your are under contract and are expected to pay until the end of the agreed time period. Then you are free to walk away…well, almost.

Sometimes that makes sense, and sometimes it doesn’t.

When does leasing make sense?

If stretching every dollar in the short term is your #1 priority, leasing might be a good choice for you. They are generally easier to get than a loan, and usually there is no downpayment required (although a security deposit may be needed).

If you must finance your new computers (whether you lease them or not), leasing may offer you more flexible terms, and give you almost the same end result. For example, Dell Financial Services offers a lease-to-own option at the end of the leasing term.

Leases may also make sense for computer equipment in particular, as compared to other, longer life business equipment, such as furniture. Computers seem to go obsolete rather quickly, and therefore, do not hold much re-sale value as an asset for your business.

Additionally, you won’t get stuck with trying to figure out how to dispose of the equipment responsibly when you don’t need it anymore.By the end of the lease, though, you will probably be ready to replace the equipment. Then you will have earned the privilege of facing the lease / purchase decision all over again.

Does leasing cost more in the long run?

Leasing almost always costs more in the long run.

I say almost because if you are financing a purchase with credit cards, your interest rate may be higher than the rates paid under a lease. So in that case, the bottom line may be very close. If this is your situation, it’s probably best to run a side by side comparison to see which option is truly to your best advantage.

The reason leasing costs so much is because there are additional expenses that you must pay when you reach the end of the term. If you don’t decide to buy out the equipment (an additional amount paid over and above the lease payments), you must return the equipment. If it is in “perfect” condition, you will likely need to pay the packaging and shipping costs. If there is damage, albeit minor, you may need to pay even more.

Every lease is a bit different when it comes to the specific terms, so if you do go this route, be sure you read and understand everything involved at the end of the lease, along with your options and responsibilities, before signing on the dotted line.

So does it make sense to lease your computer equipment? Maybe. It depends on your short-term cash availability, the urgency of your need for the equipment, and the useful life of the equipment you are thinking about leasing.

Personally, I still prefer to own my computer equipment. But with the change in the economy, and how quickly computer technology becomes obsolete, leasing may be a smarter choice for more small businesses right now than it was in years past.

What about you? Have you ever leased equipment? Did you live to regret it? Let’s hear from you!

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WANT TO USE THIS ARTICLE IN YOUR OWN BLOG OR E-ZINE? You have permission to re-publish it, as long as you include the following author’s bio and link:

Gabrielle Fontaine, PB is a freelance Professional Bookkeeper and Advanced Certified QuickBooks ProAdvisor. She specializes in assisting Internet-savvy entrepreneurs get control of their books and maximize profits. Gabrielle also publishes the business-boosting online ezine, Smart Money Choices. Get more information at http://www.BookkeepingDirect.com

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Resources

Lease vs. Buy Analysis Tool

Advantages / Disadvantages Comparison by Nolo Press

If you’ve been feeling the pinch caused by our “new economy,” then you may be a sitting duck for business opportunity scam artists. At least that’s what the Federal Trade Commission (FTC) said in a press release issued this week. They announced an intensified crackdown campaign against a variety of scams tied to the down economy.

The FTC stated that there have been 120 law enforcement actions so far this year against those promoting dubious “opportunities.” The Commission alleged that a handful of widely publicized get-rich-quick schemes have already swindled over $300 million from unsuspecting consumers.

Why now?

In hard economic times, fraudulent businesses boom. The scammers know that when the money gets tight, emotions run high, and irrational decisions are more likely. That’s because distress caused by financial pain makes it easier to believe big promises of recession-proof income made quickly with minimal work.

We want to believe.

Warning Signs

According to the FTC, fraud is most often associated with investing in vending machines, display racks, pay phones, medical billing, work-at-home, and Internet-related business opportunities. Beware of promises to make lots of easy money in a short period of time with little effort or skill.

Another earmark of fraudulent operations is their high pressure tactics, often including telemarketing as part of the sales process. The aim is to make you feel like you will lose out if you don’t fork over your money immediately.

If you’re unsure, don’t let them pressure you with scarcity before you’ve gathered all the information you need to be comfortable with your choice. Listen to your gut. Use what I call strategic procrastination. If it is a truly viable business opportunity, it will still be there AFTER you’ve had all your questions answered. Otherwise, let it go. It probably wasn’t a good fit for you anyway.

You should also pay attention to specific claims about how much money you “can” make. The FTC Franchise Rule says if the seller is making earnings claims, they must provide proof for those claims. This includes the number and percentage of previous buyers who achieved at least the earnings promised.

If the cost of the program is $500 or more, they must back up their earnings claims in a written document. Otherwise, they are violating the law.

Are there testimonials? Be sure these are legitimate. Ask for contact information. The FTC requires business opportunity promoters to give you the names, addresses and phone numbers of at least 10 previous buyers who live the closest to you.

Personally interview these people, doing so in person if at all possible. It’s best if you can see their business operations with your own eyes. This dramatically reduces the chance of being misled by phony references. Don’t skip this step if the program calls for a substantial investment.

Does that mean all business opportunities are scams?

Sadly, these fraudulent business promotions make it harder to recognize legitimate businesses. They’ve mastered the same highly effective marketing tactics used by credible, successful companies.

So if a business, for example, is making a time-sensitive offer, or its program is limited in some way, it doesn’t necessarily mean it’s a scam. There are plenty of legitimate companies who offer valuable information for short time periods or on a limited basis for valid reasons.

But when they are making big promises with a big ticket price, you need to be careful and take the time you need to decide if it is the right decision for you. Whether it is a scam or not will usually become evident with due diligence.

Do your homework

First be clear on your own goals and objectives, and don’t make your decision based solely on emotion. Making smart choices means doing your homework.

Whenever starting any kind of business or going into a new market, you need to do your own investigation into whether there truly is an existing demand for the type of product or service you’ll be selling. That’s always true, regardless of whether you are considering the purchase of a business opportunity or not.

Be especially wary of those who claim you do not need to put much time or effort into the business to get big rewards. You may reasonably be able to achieve those kinds of results in the long run, but starting a business always involves risks and substantial work on your part in the beginning.

If you are required to sign a contract, consider discussing it with your lawyer and accountant first, especially if a sizable amount of money is involved.

It may also be wise to get information about the company from the Attorney General’s office, consumer protection agencies and Better Business Bureau. Just remember that a lack of complaints doesn’t necessarily mean that the business opp is a good one.

What if you’ve already been scammed?

If you’ve already bought into an “opportunity” that didn’t live up to its claims, and you’ve tried to get your money back without success, you may have been scammed.

But all hope is not lost, yet. You can take your case to the authorities.

Where to report fraudulent business opp promotions:

• The state Attorney General’s office in the state where you live and in the state where the business opportunity promoter is based.
• Your county or state consumer protection agency. Check the blue pages of the phone book under county and state government.
• The Better Business Bureau in your area and the area where the promoter is based.
• The FTC. File a complaint online at www.ftc.gov or call toll-free 1-877-FTC-HELP (1-877-382-4357).

It is definitely possible to start or grow your business successfully in any economy. But to make smart choices, especially when scammers are rampant, you need to pay attention to the warning signals and do your homework before opening your wallet too quickly.

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WANT TO USE THIS ARTICLE IN YOUR OWN BLOG OR E-ZINE? You have permission to re-publish it, as long as you include the following author’s bio and link:

Gabrielle Fontaine, PB is a freelance Professional Bookkeeper and Advanced Certified QuickBooks ProAdvisor. She specializes in assisting Internet-savvy entrepreneurs get control of their books and maximize profits. Gabrielle also publishes the business-boosting online ezine, Smart Money Choices. Get more information at http://www.BookkeepingDirect.com

Finally a couple breaks that gives a bit of relief specifically for self-employed folks!

The American Recovery and Reinvestment Act (ARRA) has created a few tax breaks for 2009 that are only available this year, some with just a few months to take action and save taxes. Here are a couple you may want to take note of right now because they can have a quick impact on your cash flow.

Estimated Tax Requirements Modified

There are changes to the estimated tax requirements. This is welcome news since the next deadline is Monday, June 15th.

You can defer your estimated tax payments, paying a larger part of your 2009 estimate at the end of the year. The payment requirements have been modified as well.

Now you only need to pay in the lesser of 90% of your 2008 or your 2009 tax bill through estimated payments. The most significant qualification for this new rule is that more than half of your gross income in 2008 had to be from your small business.

Making Work Pay Credit for the Self-Employed

We’ve heard lots about how employees are getting the benefit of this new credit right now, but what about us?

The new credit is equal to 6.2% of your earned income, up to $800 (depending on your filing status). Of course, there is a phaseout of the credit for taxpayers with higher income (AGI over $75,000-$150,000). But if you qualify, you can take the credit now by deducting it from your estimated tax payments.

For directions on how to make the calculations, use Worksheet 2-9 on page 43 of Publication 505

For additional small business tax breaks that may apply to your business, check out the summary of ARRA small business info available directly on the IRS website.

This is a special time-sensitive invitation…

Click Here =>Free Mini-Site Webinar

I’d like to invite you to join me in attending a one-time-only webinar happening THIS coming Wednesday, June 10th.

If you’ve got a website up for your business…or need to get one, this is an event I’m sure you’ll want to attend along with me!

This new, absolutely free, LIVE *webinar* is being offered by my favorite online trainer, Jim Edwards. This special class is called:

“The Ultimate Mini-Site Formula“.

Regardless of where you are in your business, this live webinar contains proven battle-tested blueprints for making your online presence profitable with quick and easy little “mini-websites” you can easily create yourself in just a single afternoon!

(And if you’re just getting ready to put up your website, this is MUST-HAVE information to make sure your site will actually do the selling for you and make money!)

Get the full story right here:

Click Here =>Free Mini-Site Webinar

Using the latest webinar technology, we’ll discover together….

• What exactly is a “mini-site” and why you NEED to have at least one for your business
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• Breakthrough strategies that will help you to set up an autopilot mini-site that brings you a never-ending flow of new leads and customers.
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• The Exact 4-step process every successful mini-site business MUST follow to profit online
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• How to instantly double your mini-site profits just by changing ONE link
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• One of the BIGGEST TRAPS you can fall into that guarantees failure and why everyone is trying to get you to fall into it (and more importantly, how to AVOID it!)
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• A detailed run-through of Jim’s Million Dollar “Ultimate Online Success Formula” (That’s no hype, either. Jim is literally a multi-millionaire because of this exact mini-site formula!)
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• Jim says he’ll even create a REAL mini-site LIVE on the Webinar in just 4 1/2 minutes! (And he’ll also show you a 30-second trick for turning this site into profits, almost instantly!)…
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• And much, MUCH more!

Plus not only will you be able to hear Jim sharing this NEW information, but you’ll also get to SEE and WATCH it happening in real time on your computer screen, complete with LIVE examples! (And it doesn’t matter what connection speed you have or even if you have a PC or Mac.)

I’m definitely looking forward to being on this webinar myself — that’s why I thought you’d want to know about it too. It’s going to to be a first-class event!

I truly hope you can join me. You won’t regret it — of that I’m 100% sure.

Gabrielle

P.S. – Considering it’s been almost ONE YEAR since Jim’s last free mini-site training webinar, and since there’s zero tuition cost for this one-time-only event, Jim said this will be completely booked up very quickly.

If you’ve ever wanted to use the Internet and a website to build your business, this is one free event you don’t want to miss! I know I’ll be there! Don’t wait and kick yourself later.

Click Here =>Free Mini-Site Webinar

All it really comes down to is a matter of choice…and action.

In reality, you have the ability to choose what the economy means for you and your business. You are actually in control, whether you realize it or not.

Most people (unintentionally) choose to act like victims in a tough economy. Choosing the role of a victim will get you victim’s results. That’s why we hear so much about lay-offs and business failures.

However, the economy is just a catalyst. Your success is up to you.

How to Make a Better Choice

First you need to choose to change what you focus on.

As we’ve all heard many times by now, historically, there are businesses that make their fortunes in bad economies. So the question is: How exactly can you be one of them this time around?

You must be able to see the new opportunities that have now opened up because of the economic changes, rather than focusing on “negative” impacts the recession may be having on the way you used to run your business. Times have changed. You must too.

Are you ready for a new point of view? Assume that things aren’t going to change anytime soon. Act on the opportunities now available and redesign your business and you are in a far better position to prosper!

The way to shift away from reactive mode (where most everyone else is right now) and into proactive mode, is to ask new questions. Questions focus our thoughts and affect what we do. So let’s focus on prosperity – for everyone!

Start Asking Better Questions

What new opportunities have the recent economic shifts caused, or could cause, in your marketplace? (Chances are your competition is too busy in reactive mode to see these opportunities.  That gives you a BIG advantage.)

Under the current conditions, how can your services or products be used in new ways that will help your customers / clients thrive?

Do your services or products provide new benefits that you have not yet considered to customers who may have new priorities?

Said another way, what pains or problems can you solve for your customers (possibly in a new way) based on what they want most right now?

Write down your answers.

Who Are Your Customers and Who Could Be Your Customers Now?

Part of the change in focus may have to do with who your customers are. If the market you’ve been serving is now inclined to cut back on using your service or product, who else might be MORE inclined to come your way because of the economy?

Are there potential customers from a higher income level who may now consider what you have as a wonderful way of cutting back? (Are they looking for economical ways to still get what they want?)

• Side Note: Be careful with this one. You do not want to lower your prices in an effort to salvage customers. In so doing, you lower the perceived value. You might rather ask yourself how you can “value package” your services and products by bundling several together in a way that won’t eat your profits. That creates a positive solution for both you and your customers. Always be thinking win-win.

Results-Focused Actions You Can Take Right NOW!

Okay, now it’s time to get out of your head and into action.

The first place to start is to overhaul your marketing message and/or your products and services to meet the new economy needs of your customers and prospects. Then, test your new offerings as quickly as possible, so that you can get the needed feedback to perfect them. Get that feedback from your customers.

If they’ve done business with you in the past, they are already familiar with you and what you do. So let them have the privilege to be the first to hear about what you’ve got that’s new! (Everyone likes to be treated like an insider!) They will likely be the first to buy and give you the needed feedback.

It is important to get into action quickly. Contact all of your customers, past and present. Point their attention to what’s new, fresh and positive (a refreshing change from all the doom and gloom). Focus on what’s in it for them (benefits). And get them involved by asking for feedback and suggestions.

Use telephone calls, postcards, personalized letters and email. A combination appraoch will get their attention best. Just make sure that it is as personalized as possible. Customer loyalty is based on relationships. You want to build up (or re-build) the relationships you already have in place.

Expand your Reach

Your next area of action is to gather feedback, make adjustments, and then find new customers. This is where your answers to the questions on new markets for your services and products are invaluable.

Going online may be the easiest and most profitable way to reach new customers and build relationships, especially if you can make your wares available from a distance. If you aren’t already online, you should be.

Even if you only serve a local market, consider using a simple website that highlights the new benefits and packaging of your services and products. More and more people are looking for local businesses online than ever before. Listing your website in the many free online directories, as well as on free ad sites (see the Resource list below), will get results and won’t cost you a dime. Just remember to highlight benefits that solve your customers’ most painful problems, NOT who you are or the things you do. That makes you stand out from your self-absorbed competition.

If you can, also offer a free sample to give new customers a no-obligation test drive of what you’ve got to offer. Free still gets attention, and can get the wheels of word-of-mouth marketing turning in your favor as well.

Make Your Choice and Get Going

Commit to scheduling time this week to ponder the new opportunities that are now available to you. Ask yourself how you can provide solutions to existing as well as new customers. Then get into action quickly and let your customers and prospects know about your new offerings and/or re-designed business.

By making the conscious choice of a positive, proactive mindset and taking definite, focused actions, you will automatically be moving in the right direction. Opportunities are abundant, when you choose to go find them.

If you liked the suggestions in this article, you will enjoy the additional insights provided in a new special report I recently discovered by Jeff Baas of One Stop Web Support. You can get your hands on a free copy at:

Click Here ==> Jeff’s Free Special Report

ADDITIONAL RESOURCES:

Places to list your website for free for local and national (even global) advertizing:

Craigslist.org

Yahoo Local Business Directory

Switchboard / SuperPages Online Directory

If you want to promote your business online by writing articles or doing other online marketing in a time-efficient way, here’s an excellent article for organizing your day no matter how busy you are, as well as a link to a VERY useful cut-to-the-chase e-report (which I use myself and highly recommend):

Click Here ==> Robert Plank on Internet Marketing Time Management

WANT TO USE THIS ARTICLE IN YOUR OWN BLOG OR E-ZINE? You have permission to re-publish it, as long as you include the following author’s bio and link:

Gabrielle Fontaine, PB is a freelance Professional Bookkeeper and Advanced Certified QuickBooks ProAdvisor. She specializes in assisting Internet-savvy entrepreneurs get control of their books and maximize profits. Gabrielle also publishes the business-boosting online ezine, Smart Money Choices. Get more information at http://www.BookkeepingDirect.com