Credit Business Loan and Money Exchange

As you explore the world of currency exchange business, you will definitely facing the administrative procedure held by the broker. The following should you consider in order not to be fooled and do not occur a fatal mistake that could result in losing your valuable money.

Broker check: five key things to look for

Have you ever heard “Where do my money go?” question? I dare to bet, you have—maybe more than once if you share an office with your boss. Your boss is not simply asking about how you spend the company cash, he/she is questioning how the management (and everybody in the company) use company’s asset. Such question shows either your boss simply does not really get a clue upon reading the finance statement you present; or he/she got frustrated when looking at negative bottom line on the income statement.

For years I have reviewed budgets, statements of finance prepared, and comparing both, at the end of each month, quarter and year. Often when I scan these in the presence of a peer or a client, they joke that I use sixth-sense (kind of metaphysic skill) things in catching even a small problem lied behind number on a finance – statement. The truth is I have no specific magic, nor any unusual skill to do that. If anything, I have an accumulation of experience gained from looking at so many of them which is not fancy days at all.

So, how do I do that, you may wonder as well.

First, I look for things that stick out like a sort thumb: Is something on the income statement way out of line? If sales revenue is way up and gross profits are not, that sticks out. Somewhere along the way, profit margins took some kind of a hit. This is usually caused by increases in costs, reductions in prices, a shift in the mix of what was sold, or to whom it was sold, from higher profit products (services) to lower profit ones.

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by James Caan’s

If you’ve ever shaken your head at the contestants on The Apprentice and thought “I could run a business better than them”, you’re far from alone. But as businessman and Dragons’ Den star James Caan knows, succeeding as an entrepreneur isn’t always easy, which is why he’s launched a new Business Secrets iPhone app, free for a limited period, with tips and advice.

“I had to do it the hard way because there wasn’t the information available,” he told MSN Money. “If I could have accessed something like this to take me through the step-by-step journey, it would have made a massive difference.”

So if you’ve got a great idea, here are James’ top 10 things you really need to know to get it off the ground – and some of the most common mistakes to avoid.

More tips on starting your own business

1. Do your research

There’s no reason to take unnecessary risks if you do your homework. “Before launching an idea, product or service, the most fundamental principle is to research it correctly because if it’s not going to work, you could have found out sooner,” says James.

“If you go into it blindly, not researching the market, product and competition thoroughly, you’re taking unnecessary risks.

“And one quality that you need is how to measure risk because, once you understand it, it no longer becomes a risk, it’s a calculated decision.”

2. Finances, finances, finances

“Understanding how to manage your finances, your cashflow, your break-even point is all key,” says James. “One mistake is not understanding the difference between cash accounting and accrued accounting, where businesses rely on their monthly profit and loss to make decisions.

“Monthly profit and loss is what I call accrued accounting. For example, it’ll show the business has generated £100,000 worth of revenue and costs were £70,000. In your head you’ve made £30,000 profit.

“The problem is the business may have generated £100,000 but it’s only collected £60,000. And the money that actually went out was £80,000. So you’re actually £20,000 light in your bank account. Underestimating the impact of cash accounting is a key mistake.”

3. Don’t be afraid to ask

“One of my key strengths is having the confidence to ask enough questions,” says James. “What I find strange is far less experienced people are reluctant to do the same because they think it’s a sign of weakness, whereas someone with 25 years experience of business doesn’t feel embarrassed.

“If you don’t ask enough relevant questions, you’re taking too big a risk.”

It’s all part of having the right personality for the job, he says. “As an entrepreneur, you need to be somebody who can influence people. Business entrepreneurs aren’t followers they’re leaders, visionaries not managers. Make sure you’re able to project the difference.”

4. Never stop networking

“Even after all the years I’ve been in business, at least one person tells me something I didn’t know about the market, an opportunity, customers, every time I go to a networking event,” says James. “In business, you need to be out there to network at every opportunity. Look at it as part of the fabric of your business, something you do naturally and regularly.

“You can’t be an introvert. If you’re not visible in your business, then how does anybody know what you’re doing? You can’t just say, ‘I’m not good at it’ – if so, you need to question if you’re ready for business.”

5. Surround yourself with the right people

From working with professional partners to hiring employees, your business depends on who’s involved.

“A business is only as good as the people in it so attracting the right people is really key,” says James. “Recognise that you need to have people around you who complement your weaknesses.”

6. Get online

If you’ve dismissed Twitter and Facebook as a waste of time, think again. “Social media is critical,” says James.

“In any business, one of the fundamental objectives is how to attract clients. If you haven’t embraced social media, I truly believe you’re missing a fundamental ingredient of success.

“There are people today who market their services on Facebook, who promote their products through Twitter. I use Twitter, LinkedIn, Facebook, the whole thing because it’s the way to do business in the future.”

7. Know when to walk away

“In business sometimes people do deals for the deal’s sake, but that can be very detrimental,” James says. “They take on a customer where there’s little margin and say: ‘At least I’ve got something’. The problem is that, while you’re spending your time delivering a deal that doesn’t make any money, you’re not looking for the deal that is going to make you money.

“One of the best lessons I’ve learned is being strong enough to walk away and only do deals that make sense.

“A lot of the time people justify it as good for the brand or a great customer, you can come up with 1,000 reasons to do a deal that doesn’t make money. The problem is when the business doesn’t make any money, you can’t pay your overheads and you don’t have a business.”

8. Get your timing right

It’s not just what you do that makes a difference, but when. “There’s a right time and a wrong time to do things,” says James. “Understanding the sensitivity and impact of timing is critical.

“There’s a time to invest and a time to increase your overheads. For example, the market now is pretty flat, now’s not the time to be investing because the revenue doesn’t support it.

“One thing I see a lot is people getting the timing wrong and investing too early, hoping the revenue will come and it doesn’t.”

9. Don’t get emotional

When you start a business, friends and family can be invaluable, whether it’s providing funding or just being there for support. But they’re not always the best employees.

“One common mistake is that people recruit friends and family,” says James. “But are you hiring somebody because they’re qualified to do the job, or are you hiring them because they’re somebody you like?

“The principle is you should be hiring against skillset, not emotion.”

10. Know the law

“Governance – VAT, PAYE, statutory accounts, employment law, HR policies – is one area that a lot of entrepreneurial businesses struggle with,” says James. “The problem is it’s not good enough to say ‘I don’t know’. Once you set up a company, you have an obligation to understand. If you don’t, the chances are you’re going to make mistakes, which can be very costly.

“You can’t say, ‘I’ll go to my accountant’, because when you sign a set of annual accounts, you are accepting responsibility.”

“One year, we’d miscalculated our PAYE. The following year, the Inland Revenue said, ‘You owe us ‘x’ amount of money’. I told the accountant, ‘I think you guys have got this wrong’. And he replied, ‘No. We prepare your accounts. You have to check, agree and sign’. He was absolutely right. And that was my biggest lesson.”

For many small-business owners, a business owner’s policy insuring buildings, equipment, and legal liability may be most or all of the insurance they need.

This type of policy (called a “BOP” by insurers and others) insures the physical items used in a business and protects against claims for damage to property or personal injury. Even if your business requires other types of coverage, you should consider this option. Let’s look at both components.

Property coverage

Just as you’d protect your home and its contents, you also should cover your business assets against a loss. But make certain the coverage is adequate — look at the property’s replacement value, actual value (replacement costs less any depreciation) or some other amount you deem adequate.

The most common method is to insure for replacement value. That way, if you do suffer a loss, you won’t be out of pocket to get back to business as soon as possible. You will have to adjust your coverage periodically as you acquire or dispose of property — you also should be careful to update the replacement values as time goes by. For example, a computer that cost $3,000 a year or two ago may be replaced at a much lower cost today. The lower the insured amount, the lower the premiums.

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