Numbers, figures, decimal points and dollar signs. Those are the key factors that will pop up from the page into the line of sight of the average person who reviews the financial side of your business plan. However, it is important to realize that there is a method to the numerical madness which must be made into a top priority. You can follow several simple steps that will make it possible for you to develop the financial section in a way that will effectively breathe life into your business plan overall.

Understand the Purpose of the Section

Beneath all the figures and calculations that will be reflected within the financial section of your business plan, you need to be able to clearly identify its specific purpose. The purpose and target objective of this section goes far beyond simply showing how much money you plan on spending and hopefully making at some specified point in the foreseeable future. There are actually two separate purposes that are fulfilled by this one section.

When you search for investment opportunities that are offered by venture capitalists, clever investors or even intelligent friends and relatives, you are going to need to be able to show them this financial reflection and projection. At the other side of the spectrum is the need to benefit from this financial forecast for your own personal and professional needs and expectations.

A well-developed financial plan will make it much easier for you to have a clear and concise perspective of how your business has done, is doing, and will do in the future. Instead of spending a considerable amount of time digging through seemingly endless piles of paperwork and forms, you will be able to have a quick point of reference that is readily available for review whenever the need for it arises.

Differentiate this Section from Accounting Reports

As you are working through the accounting section of your business plan, you have to keep close in mind the simple fact that it is absolutely not like the accounting reports that you generate on a monthly or even weekly basis. Many people seem to forget that there is a major difference between those reports and the financial aspect of your business plan. First and foremost, those reports deal directly with the past (i.e. historical data, past cash flow statements, etc.)

On the other hand, the financial section of your business plan needs to focus more on the future. While it is necessary for your plan to at least address the financial past of your company, it needs to focus primarily on the future. Cash flow projections, estimates, and an overall forecast of the financial future will serve as the major building blocks and core elements of your plan. If you are not able to clearly distinguish between your accounting reports and the financial layout of your business plan, you need to go back to the drawing board and see where everything went wrong.

Create a Solid Sales Forecast

The best approach to take would be to focus on developing a solid sales forecast first before you dive into any other calculations and figures. A general rule of thumb is to simply create a record or spreadsheet that documents your sales projections for the next three to five years. Make sure that you have it sectioned off and categorized so that the person reviewing this part of your plan will easily be able to see everything they need, according to the Small Business Administration. The sales forecast will then make it much easier for all of the other puzzle pieces to fall into place primarily because the sales forecast will serve as a major cornerstone of its development.

Don’t Forget About the Expenses

While you are developing the financial section of your budget, make sure that you do not place too much focus on the green side of your calculations. Watching how quickly your figures will add up can become very mesmerizing and even hypnotizing, especially if you are fairly new to the world of business in general.

However, it is important for you not to allow these figures to cause you to lose focus and drift away. You need to also make room for expenses in those projections by developing a detailed expense budget. Your expense budget should cover everything – fixed costs and variable costs alike. Make sure that you focus primarily on developing a future forecast instead of duplicating your past accounting reports, though.

The Bottom Line

The financial section of your business plan needs to become much more than just figures and dollar signs. It needs to become a clear and concise reflection of the foundation of your business. When developing this section, you will pay tribute to the past by shining a light on where you have already gone. However, your financial plan will actually become a shining beacon that will illuminate the path to success on which your company will travel into the future.

Joe Saul-Sehy

Joe is a former financial advisor and media representative for American Express and Ameriprise. He was the “Money Man” at Detroit television WXYZ-TV, appearing twice weekly. He’s also appeared in Bride, Best Life, and Child magazines, the Los Angeles Times, Chicago Sun-Times, Detroit News and Baltimore Sun newspapers and numerous other media outlets.  Joe holds B.A Degrees from The Citadel and Michigan State University.

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Peer to peer loans, sometimes called social lending, is a fascinating phenomenon and a great way to obtain low rate loans or boost savings. Since the financial crisis and credit crunch started in 2007, many borrowers have found it difficult to obtain affordable personal loans. At the same time, interest rates have plummeted, making it difficult for savers to achieve decent returns. P2P lending brings these two needs together and provides a platform for sensible loans and reasonable interest for savers. What many potential borrowers don’t realise, however, is that there are ways to maximise your chances of landing such loans.

1) Check out your credit reports

Some P2P borrowers forget that it is not only lenders and financial companies who can look at their credit reports, they can too. When you check your credit report you will be able to see if there is anything that is potentially hurting your credit score and may put off P2P lending individuals. The UK government, for example, has passed legislation that means you can see your full credit report for only £2 and many companies offer a multi-agency report free as part of a free trial.

2) Dispute any inaccuracies on your credit report

It is quite possible that there will be inaccurate information on your credit report and this could hurt your credit score and lessen your chances of landing personal loans. This might include out of date information about previous residents at your address or errors about your own history. If there are mistakes, challenge them and have them removed from your file.

3) Tackle delinquent accounts

Lenders want to be as sure as they can be that you will pay your loan instalments in full and on time. If you have any credit cards, loans or other financial agreements that are in arrears or have missing or late payments then these should be brought up to date before completing your profile and making any applications for loans. It is a good idea to establish a solid six months of payments before making any loan application.

4) Reduce your debt to income ratio

One of the most important factors that potential lenders will look at is your ability to pay back the loan. A key criteria here is your debt to income ratio. Put simply, the lower that ratio is the better chance you have of acceptance and the lower your interest payments will be. Anything you can do to bring your debt repayments down will have a positive effect on your application.

5) Be realistic in your application

Potential lenders will look at your income and outgoings and make a judgement about what you can afford before offering any low rate loans. Asking for more than your circumstances, such as credit score, credit history and debt to income ratio, would suggest is reasonable is counter-productive. You won’t get the loan and you will appear naive or even desperate. Instead, be realistic in what you ask, based on the understanding you have gained of your own credit report.

Joe Saul-Sehy

Joe is a former financial advisor and media representative for American Express and Ameriprise. He was the “Money Man” at Detroit television WXYZ-TV, appearing twice weekly. He’s also appeared in Bride, Best Life, and Child magazines, the Los Angeles Times, Chicago Sun-Times, Detroit News and Baltimore Sun newspapers and numerous other media outlets.  Joe holds B.A Degrees from The Citadel and Michigan State University.

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Finding a credit card amongst the sea of choices today is daunting. Although you want the ease of swiping a card, and getting on with your day, you also strive for extra benefits. From points to free restaurant dinners, you’ve seen all the credit card incentives. However, United Explorer card benefits pinpoint your exact needs: travel luxuries. From growing flyer mile amounts to free checked bags, you have a travel partner with United.

Start with That Bonus Offer

You know you’ll use your credit card throughout the year, but United Explorer’s bonus offers may entice you to use this card more than others. Each calendar year, after spending $25,000, you automatically receive 10,000 bonus miles. Every year these bonus miles are available, making your trips across the globe easy to finance.

In fact, United Explorer wants you to have a solid start with flyer miles. When you charge $1,000 in the first 90 days after you receive the card. United Explorer automatically credits your account with 30,000 bonus miles. Your traveling will never be the same.

Traveling In Style

The glamor of flying has been tarnished recently with frustrating baggage fees and cattle call seating. Keep your party steeped in the lap of luxury with United Explorer’s benefits. If you are traveling as a couple, both of you are allowed one free checked bag when you fly with United. Even if you travel solo, you still have one bag that is free from high check-in fees.

Avoid the clamor of the group as everyone tries to board the plane at the same time. With United Explorer, you are allowed priority boarding, giving you time to stow your items in relaxing comfort. You can sit down before the rest of the plane boards.

Miles Add Up

Continue to fly with United to see your flyer miles grow exponentially. For example, you fly between Los Angeles and New York, and charge the tickets on your United Explorer card. Instead of earning traditional miles, you actually receive double miles for that trip.

Your other purchases are also not without their benefits. Regardless of the purchase, from dinner to that new cell phone, you earn one mile for each dollar spent. Those miles quickly add up. Use your credit card to charge almost every purchase, even a quick stop at a convenience store. You can pay off your balance at the end of the month to avoid interest charges, while still gaining crucial mileage.

Mileage Versatility

You are not limited with blackout dates using United Explorer card’s benefits. Any United flight can apply to your miles, including family flights with Asiana, US Airways, Lufthansa and others. In the past, your miles used to expire with other flyer programs, but maintaining a United Explorer card in good standing allows you to have miles that never expire. Save them up for a trip around the world. It is all up to your plans and spending habits.

Move On

If you have another United card, take advantage of the Explorer benefits by converting over. You are not applying for a brand new account, you are simply transferring your account. As a result of the change, you keep your original credit card number, but still receive Explorer benefits. If you have your credit card number on file with several merchants, this benefit makes the card change easy and trouble-free.

United Explorer card offers the world at your fingertips. With the added benefits for miles, baggage and seating, you are treated as royalty with any United flight. Keep this card handy for all your everyday needs to benefit with United Explorer’s fantastic program.

Joe Saul-Sehy

Joe is a former financial advisor and media representative for American Express and Ameriprise. He was the “Money Man” at Detroit television WXYZ-TV, appearing twice weekly. He’s also appeared in Bride, Best Life, and Child magazines, the Los Angeles Times, Chicago Sun-Times, Detroit News and Baltimore Sun newspapers and numerous other media outlets.  Joe holds B.A Degrees from The Citadel and Michigan State University.

joesaulsehy.com/

It’s January. A new year. A chance to start anew. A blank slate to accomplish a fresh set of goals.

When it comes to your personal finances, January is also a good time to set up and automate your financial goals for the New Year. As such, listed below are 2 good goals / resolutions to shoot for in 2014.

1.      Set up a Zero-Based Budget

How does traditional budget work? Essentially, you lay out some financial needs for the month ahead, and if saving or investing money is included on the priority listing, you commit whatever amount you have leftover at the end of a pay period to your saving goal. The problem with this is that life gets in the way, and there never seems to be any money left over at the end of the month, correct?

In comes zero-based budgeting.

Similarly to regular budgeting, with zero-based budgets, you lay out your financial requirements/wants for the pay period. However, instead of waiting until the end of the period to see if you have money left over for your strategic goals, you transfer that money out at the beginning of the period in order to get your “balance to zero,” hence the name, zero-based budgeting.

This is a very effective strategy. Give it a try and see if you like it!

 2.      Stop Paying High Interest Rate Debt

When it comes to paying off high interest rate credit card debt, a little bit of knowledge will go a long way.

One strategy that can work for providing relief from high interest credit card debt is to find a new credit card that offers a 0% balance transfer that you can transfer your higher interest debt to. This strategy often works well for fairly small amounts of credit card debt that can be paid off in 6-12 monthly pay periods.

In addition, something a lot of people do not realize is that if you are a pretty good customer for a credit card, you can often get your interest rate decreased drastically simply by calling them and asking for a discount. If the first person you talk to at the credit card company says they cannot help you, it is often effective to ask for their supervisor.

Joe Saul-Sehy

Joe is a former financial advisor and media representative for American Express and Ameriprise. He was the “Money Man” at Detroit television WXYZ-TV, appearing twice weekly. He’s also appeared in Bride, Best Life, and Child magazines, the Los Angeles Times, Chicago Sun-Times, Detroit News and Baltimore Sun newspapers and numerous other media outlets.  Joe holds B.A Degrees from The Citadel and Michigan State University.

joesaulsehy.com/

Retail stores are so desperate to compete with one another that Black Friday now starts right after the last slice of pumpkin pie has been devoured on Thanksgiving. The trend towards increased sales has a lot to do with the rise in popularity of eCommerce, according to Forbes. There are retail stores in New York City willing to reinvent themselves every 4 weeks just to garner the kind of interest necessary to stay in business. This is why when setting up a new business in the retail sector, it is necessary to have the kind of setup which will allow you to succeed.

Starting with the basics is always essential, according to Inc.com. The costs are going to be high, but not nearly as much as when opening a restaurant. The majority of the money you are investing will go into the inventory you are selling. You will need to have an electronic point of sale system, a theme which garners interest and the willingness to try new technology. These things will help you to get started and may even set the groundwork to help you enjoy the kind of long-term success you have always dreamed of.

Purchase the Right POS System

Selling anything requires the use of an electronic point of sale system. You no longer have to buy dedicated POS systems, which can be used for nothing other than a POS system. Now, you can purchase an entire system that is centered around the use of an iPad. This includes using a printer, card reader and cash drawer all attached to the app which is downloaded into the iPad itself. At the end of the day, you can remove the iPad and use it any way you want to. This is perfect for anyone who is thinking about starting a retail store and also owns an iPad. If not, what a great reason to purchase one! The software from the POS app can help you organize and maintain your inventory. You will not have to sit in a dark back room crunching the numbers anymore. Just take your iPad home with you and work out the numbers in comfort.

Choose a Great Theme

The theme of your retail location needs to engage the kinds of people who are most likely to purchase from you to begin with. While you may not have the wherewithal to change your theme every 4 weeks like a retail location in New York City, you can still choose an awesome theme that people can get excited about. The theme should pertain to the kinds of merchandise you are selling and the kinds of people you are catering to. Also, make sure you are being creative with your theme. The more you can engage those people who buy from you, the more likely you are to bring in even more clientele.

Try New Technology

New technology is highly important to bringing in new clientele as well. Just like using the iPad as part of your electronic point of sale system, you can use iPads to engage clients while they are looking at products. Customers are always impressed by new technology and the use of new devices can help to put you on the map for tech savvy individuals. Just don’t spend money on technology just to have it. Make sure you invest in technology that is functional as well as cool looking. This way, you will get more than just some interested glances from the people who enter the store. Using these can help to set you apart from the other businesses without putting your business in jeopardy.

Joe Saul-Sehy

Joe is a former financial advisor and media representative for American Express and Ameriprise. He was the “Money Man” at Detroit television WXYZ-TV, appearing twice weekly. He’s also appeared in Bride, Best Life, and Child magazines, the Los Angeles Times, Chicago Sun-Times, Detroit News and Baltimore Sun newspapers and numerous other media outlets.  Joe holds B.A Degrees from The Citadel and Michigan State University.

joesaulsehy.com/

Credit cards are one of those areas that are often misunderstood. Like any form of borrowing, there are a few inherent risks but credit cards can prove very useful.

With this in mind, here is some useful information about how such a card may benefit you. If this sounds like something that could prove to be an advantage then you can apply for an online credit card quickly and easily.

It is important to remember that credit cards are optional, of course, but having one can certainly provide an important safety net.

How can it help?

Credit cards allow you instant access to credit. As a card, this essentially allows you to borrow credit when and where you need it. There’s no negotiating either, since you only borrow the exact amount of the expense needed.

It’s still credit and, as such, is expected to be paid off but its position as revolving credit means that whilst you pay off the balance regularly you’re still free to use the card should you need to. Where you need money urgently this can be a real lifeline and means you don’t have to constantly submit new credit applications each time you need additional cash.

Who is it for?

If you’re wise with your money and understand when you should and shouldn’t spend money then a credit card can prove advantageous. Likewise, there are some competitive options too. Some credit cards may be designed for full-time workers and there are others designed for those with poor credit ratings. You can also look at credit cards for students which, again, helps provide a form of borrowing for a specific financial situation and consumer.

Other benefits

The main benefit of a credit card is the instant borrowing. Credit cards are flexible options, allowing you to borrow both small and larger amounts if and when it’s needed.

A lot of cards can also offer you competitive rates. The aquacard classic offers a rate of 32.9% APR. The aqua advance, on the other hand starts at 34.9% APR but if you keep to your credit limit and repay on time you will receive an annual reduction of 5% for the first three years your APR drops to 19.9% by the end of that term.

Furthermore, most credit cards don’t add interest if you pay off the balance within the month. As such they can be used as an ideal form of cash advancement. If you only borrow what you know you can pay off then you’re not losing money in the process.

Joe Saul-Sehy

Joe is a former financial advisor and media representative for American Express and Ameriprise. He was the “Money Man” at Detroit television WXYZ-TV, appearing twice weekly. He’s also appeared in Bride, Best Life, and Child magazines, the Los Angeles Times, Chicago Sun-Times, Detroit News and Baltimore Sun newspapers and numerous other media outlets.  Joe holds B.A Degrees from The Citadel and Michigan State University.

joesaulsehy.com/

It doesn’t matter why you start: whether you’ve become part of the unemployed, need to supplement your income to pay for a child’s college education, or simply have a passion to “strike out on your own,” starting your business is a worthwhile goal.

More Americans are entering the world of entrepreneurship than ever before. In a July 2012 interview with Forbes magazine, Jack Sunderlage, Executive Vice President of National Sales for Grow America, reported that more than 11.5 million new U.S. businesses have emerged since March 2011.

What does it take to start your own business?

1. Decide what type of business you want to start.

You may not have a clever, new idea that the world will find fascinating and jump at the chance to buy from. However, there are many businesses of the “same old type” that you might be able to run better than those around you.

For instance, the salon you frequent is close to home, yet you have to sign in and wait for up to an hour for service and it lacks a certain “atmosphere.” You just want to get in and out as quickly as possible. But the salon on the far side of town has a more relaxing air about it, and they take appointments. If it were closer to home, you’d probably go there instead. There are many businesses you have an opinion about, yet can’t avoid because you need their services. If it were your business, you would know what changes you would make.

Think about what you would want out of a business as a consumer. Now is your opportunity.

2. Create a business plan.

Don’t worry about writing a lengthy business plan with 5- and 10-year projections. You can start out small and keep it to one or two pages. Include what your business will be, to whom you’ll be selling services or products to (your target customer), how much you’ll charge, and how you plan to do it. This includes what resources you’ll need, including location, staff, furniture, supplies, equipment, telephone, utilities, internet connection, POS (point of sale) system — and what your estimated start-up costs will be.  Research and comparison shopping can help to reduce your operation costs.  For example, investing into a MegaPath internet service can help reduce your total online costs.   Also note how you’ll pay back your start-up loan, if necessary, and how long it will take.

3. Determine how much to charge.

Besides researching what similar businesses charge, ask yourself what kind of income you need to earn. Don’t expect to get rich the first year; be realistic about the growth of your company. List your expenses, such as rent, payroll, taxes, insurance, utilities, consumables, and other monthly costs.

4. Establish how you’ll receive payment from customers.

Getting paid in cash is nice, but most people don’t pay in cash these days, nor write checks. You’ll want to establish a merchant account so you can receive payments by debit and credit card. This is otherwise known as “payment processing.” Payment processing services work with a bank to securely handle debit and credit card transactions. These services will also help to reconcile your accounting to ensure all payments were made to your account. There are many different plans and services offered, so be sure to research several to determine the most quality with the best rates that suits your needs. For help comparing rates from different payment processing companies click here.

5. Get help.

Seek some advice from a new business resource, such as the Small Business Administration and Entrepreneur Magazine. Both of these sites have excellent resources and tools to help steer you in the right direction.

Don’t let fear of the unknown get in the way of starting your own business. It’s an exciting, challenging, yet rewarding opportunity!

Joe Saul-Sehy

Joe is a former financial advisor and media representative for American Express and Ameriprise. He was the “Money Man” at Detroit television WXYZ-TV, appearing twice weekly. He’s also appeared in Bride, Best Life, and Child magazines, the Los Angeles Times, Chicago Sun-Times, Detroit News and Baltimore Sun newspapers and numerous other media outlets.  Joe holds B.A Degrees from The Citadel and Michigan State University.

joesaulsehy.com/