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Archive for the ‘Financial Management’ Category

In America there is such a transaction between persons who are members participated in the transaction as the first party and its organizers as the second party. This transaction contains.

1). The Company will issue cards that contain numbers and names of participants, in which a person can use this card at various places of business (merchant) to pay for items purchased. Similarly to the payments in restaurants and hotels. Also able to buy a plane ticket from the airlines, and others. Furthermore, the parties attract a fee to use this card will send the billing details to the company that issued the card, then pay the bill for card holders.

2). At the end of the month, the company that issued this card will give a report to the card holder and ask him to pay the entire bill should he pay for a month and bills are also paid by the owner of the company to trade places.

3). Companies that issued the card also asks the cardholder to pay the bills he had to pay for 1 month takes place in a maximum period of 15 days from the date of delivery fakir bill. If he does not pay for a period of 15 days, then the company will send invoices for the second time with the same bill and the nonpayment of the additional value of 10 dollars, as late fines. And if after this second invoicing cardholders not to pay it off, then the company will send you an invoice for the third time and final time, and asked him to pay off bills with additional funds worth 2.5% of the bill as late fees, as the company also will cancel the agreement and draw cards in this object.

4). The period of agreement lasts for a year. For card holders must pay annual dues of 30 dollars as an entry fee and the issuance of cards for him.

5). Payment of the invoice that is sent in the form of U.S. currency (dollar). If a cardholder uses the card outside the U.S., the company will submit invoices in the form of U.S. currency. It’s a way to move the bill in the form of foreign currencies into U.S. currency (dollar). And the exchange rate used is the exchange rate on invoices sent to him, not with the exchange rate on the card used to purchase outside the United States. And the company also requested that the card holder to pay the bills with dollars with an additional 1% in value, as the cost of transfers and currency exchange.

Unlike the first-past, present various marketing activities is not foreign. Everywhere will be easy to find marketing activities. Exposure range of marketing activities, particularly advertising is also more spacious and better over time. Various promotional events in order to promote also easily found today. Behind the various promotional activities are, of course there terget-targets to be achieved so that the efficiency of the promotion budget is reached. In this case, direct marketing, which requires the existence of feedback from customers as a measure of the success of direct marketing sebuh. Not only feedback, direct marketing in general can dihraapkan creating profits. Direct marketing can also be said to succeed based on how many programs can attract customers, both customers and the brutality of the old customers.

In planning a promotional program, mrketer not be separated from the database, but of course, marketers must be smart to take advantage of the database so that marketers can reach the right customer or target for the program and can certainly produce the maximum benefit. Please note bik-both in the utilization of the target customer database to determine a course of a campaign that is owned by a marketer that is Customer Value, Customer Lifetime Value, determines the customer is right for targeted campaigns and strategies marketnya penetration.

There is a principle that should be remembered by the marketer, the 80/20 principle which states that at kkurangny 20% customer of a company, 20% of these customers has resulted in 80% of the profits (sales) company. There perluny for marketers to concentrate more on the 20% is to serve customers and build customer loyalty of 20% is to the company. It can be said as well, 20% customer has more value than the rest

Customer value customer who spoke on the history of ever, then the customer lifetime value are then further discussed how the customer relationship with the company. This means the customer has regularly make transactions or purchases on the company. Customers who like this should be a concern for the customer that the company has done periodically  profit-making companies not only bring more for the company but also the cost efficiency of promotional activities  issued.

Based on Customer Lifetime Value well known, the marketer can take advantage of CLTV. Because basically it’s easier and cheaper for marketers to build the relationship further and deeper with the customer who has several times transact with us than building a new customer.

Some errors are errors  penetration was conducted by conducted by marketers are targeting the area or segment that has a small percentage of penetration because they want to expand . Marketers often do not try to predict or find out possible reasons for the small percentage of penetration in the area or segment. Marketers are often forced to penetrate the area or segment of a small percentage of penetration, but this can be promotional costs and useless. It sure would be good and efficient  marketers approach the area or segment with a greater percentage of penetration.

After knowing the target clearly, needs to be done is the measurement. Marketers need to know the goal, just behind the capital or profits (of course, marketers will be profits). Then to make a profit, what kind of response he was looking for?  know these things will help marketers to calculate how much needs to be sold to achieve a turnover or profit.

In the measurement, there called “elevator”. This concept describes how marketers are doing a campaign more focused on the segments predicted to be more responsive so the cost was more efficient and optimal.

Primerica is a financial company that provides money management guide for people that want to have a secure financial future. It can provide customers with a snapshot of their current financial situations. It also offers insurance products for customers that want their life to be secured against financial burdens. Primerica has over 4.3 millions life insurance customers. It is estimated that about 2 million people sign up for the Primerica investment accounts. As of 2009, it has about one hundred thousand licensed representatives. Primerica pays an average of $2.5 million claims every day.

If you need advice on financial management, you can order the financial needs analysis report from Primerica. The financial needs analysis report provides strategies on how to cope with different financial situations. It provides advices on how to get funds to pay your children tuition fees. It will list several options to raise the funds you need to pay the educational expenses. Besides, it provides an outline of educational expenses for different schools. In this way, you know how much tuition fee you need to pay if your child studies in the particular college.

Primerica provides tips on how to get retirement funds without any effort. If you are going to become 55 years old, you need to start planning for your retirements. The report will show you how to make investments so that you are able to live comfortably in old age. Besides, it offers advices on how to make your family free from financial burdens if you die in an accident.

Planning or personal financial planning is the process by which a person looks at your financial situation, set your financial goals and formulate plans that will achieve these objectives.

Through the financial planning we better manage our personal finances, and improved our financial situation.

Let’s look at what are the steps involved in the process of personal financial planning:

Knowing the financial situation
The first step in personal financial planning is to know our financial situation. To do this, it is best to resort to the use of two tools: the personal income statement and balance staff.

In the personal income statement detail our income (wages, business, investment, etc.), Our expenses (food, education, services, etc.), And profit or loss (income minus expenses) that we obtained in a month six months or a year.

While the detailed personal balance our assets (bank accounts, investments, property, etc.), Our liabilities and debts (credit cards, personal loans, mortgages, etc.), And our assets (assets minus liabilities).

Analyze financial situation
With the information we have obtained through our personal income statement and balance our staff, we analyze our financial situation.

For example, in our personal income statement, we could see that we are not generating enough income (for example, do not have enough sources of income), or that we are spending unnecessarily on some items (for example, under “Recreation”) .

While our personal balance that we could observe few assets comprised of investment, or that we have too many liabilities made up of consumer debt (for which, in turn, are paying too much interest).

Once designed our action plans, the last step in the process of personal financial planning, is to develop a personal budget.

In our detailed personal budget money income (wages, business, investment, etc.) Cash expenditures (food, education, services, etc.), And the balance (revenue minus expenses) we expect to have in the coming months year, based on our financial position and our action plans.

For example, if you previously had 3 000 expenses on food, and one of our plans involves eating more often at home, then our budget for the item “food” could be reduced to 2 000.

And finally, for better personal financial planning in addition to the personal budget, we could also develop a projected personal income statement, balance sheet and a projected staff, ie, an income statement and projected balance as they would for a date future.

Once we have established our financial targets, the next step is to design plans that will enable us to achieve this financial goal.

For example, to increase our income, we could establish such plans to request an increase in soil, look for new employment, increase sales of our business, investing in the stock market, etc.

To reduce our expenses, we could establish such plans unsubscribe from journals not usually read, stop buying coffee and cigarettes, eat more often at home, etc..

To invest in business before the end of the year, we could establish such plans to secure funding, make the necessary contacts to find a partner, find a shop, etc.

To cancel our debts, we could establish as plans to cut our credit cards, consolidate all our debts, allocate a percentage of our revenues for the cancellation of debts, etc.

Succeeding in Savings: A few steps from great achievements

Here’s a little story about how we can save with a little effort and without affecting our daily lives:

Peter works for the Department of Housing New York City as a mechanic for heating and cooling systems. He began working for the city in 1989 and since 1991 decided to contribute to a savings account a small part of his salary in order to have something saved for retirement. He started saving $ 25 a week which he did not even feel that from the time your check accustomed, and without any trouble, to live with what was left.

Over the years, received a salary increase to compensate for their experience and the rising cost of living (inflation). When this happened the increased a little but their contribution to this automatic savings to contributing $ 100 each week. Since 1996, Peter helped his salary $ 100 which he regarded as another tax, since their net check this quantity was reduced. Today Peter is in your savings account, which did not gain any special interest rate or anything like that, an available balance of $ 104.314 U.S. dollars which can be used as supplemental income to your retirement plan and retiree salary.

Peter never thought that this money would go so far, nor so little money to contribute this amount of savings could be achieved. He learned to live without them $ 100 extra, and there were times of emergency where she had to see this money, but in the end the ongoing savings long term will help to accumulate more money than they thought won in two years of work. The important thing is not saving the amount you save is great, but this saving is constant. Aim @ yourself and your family to save a percentage of their income (though this is a small sacrifice), whatever that percentage, and religiously save that amount. You learn to live with the revenue that remains after all the years that accumulation will bring good surprises in the future.

Have a similar story?

Almost all large companies have an area of finance, but not the same thing happens in small and medium enterprises, SMEs are very few that have a formal area of Finance. Often know the value it can bring this area to the company, which is why try to explain briefly what are the areas of decision of the Department of Finance and why they are important.

The financial management has two major responsibilities, we can reduce to two simple questions: What investments should the company perform? How should pay or afford these investments? The first question involves spending money, the second is getting it.

To conduct business, companies need an almost endless variety of real assets (machinery, vehicles, property, trademarks, patents) and all they have to pay. For the money the company sells pieces of paper called financial assets or securities. These pieces of paper have value to the purchase because they incorporate the rights of the real assets of the firm and the cash money they produce. For example, if the company requests a bank loan, the bank has a financial asset. Financial asset that gives the bank a right to claim a series of interest payments and repayment of the loan. The real assets of the company need to make enough money to meet those payments. Financial assets include not only bank loans but also equity, bonds and other similar.

The financial manager should act as an intermediary between the company’s operations and capital markets, where securities are traded company.