As the holidays rapidly approach, I would like to take a few moments to wish you a happy and joyous Christmas, Hanukah, or any other Holiday season you may celebrate, as well as a healthy and prosperous New Year. If you’d like a second opinion on your investment or insurance objectives, or would like to develop a plan in the future, please don’t hesitate to contact me.
Insurance is for all stages of life...
•Do you have life insurance or enough coverage to ensure that your family could maintain their current lifestyle in case something happens to you?
•Has your financial situation changed and you need health insurance for you and your family or discounts on your prescription drug(s)?
•Are you planning for your retirement and the possibility that you may need assisted living care in the future?
We can assist you with these and other life situations by offering term life insurance, disability insurance, long term care insurance, health insurance and much more.
Our Focus Is YOU—For All Stages of Your Life
Jersey Benefits Group, Inc.
Wednesday, December 14, 2011
Friday, December 2, 2011
OBTAIN A FREE QUOTE FOR ALL OF YOUR INSURANCE NEEDS
Insurance is for all stages of life...
•Do you have life insurance or enough coverage to ensure that your family could maintain their current lifestyle in case something happens to you?
•Has your financial situation changed and you need health insurance for you and your family or discounts on your prescription drug(s)?
•Are you planning for your retirement and the possibility that you may need assisted living care in the future?
We can assist you with these and other life situations by offering term life insurance, disability insurance, long term care insurance, health insurance and much more.
Our Focus Is YOU — For All Stages of Your Life.
Go to the website for Jersey Benefits Group, Inc.
If you prefer to speak directly to a licensed agent and live outside NJ, call 1-855-802-4123. NJ residents can call (609) 827-0194.
•Do you have life insurance or enough coverage to ensure that your family could maintain their current lifestyle in case something happens to you?
•Has your financial situation changed and you need health insurance for you and your family or discounts on your prescription drug(s)?
•Are you planning for your retirement and the possibility that you may need assisted living care in the future?
We can assist you with these and other life situations by offering term life insurance, disability insurance, long term care insurance, health insurance and much more.
Our Focus Is YOU — For All Stages of Your Life.
Go to the website for Jersey Benefits Group, Inc.
If you prefer to speak directly to a licensed agent and live outside NJ, call 1-855-802-4123. NJ residents can call (609) 827-0194.
Thursday, October 27, 2011
FREE ONLINE HEALTH INSURANCE QUOTES AVAILABLE
How Can I Apply for Health Insurance?
Health Insurance is a hot topic in today's social, economic and political arenas. If you have been laid off from work, are in between jobs or are self-employed, you will need some kind of health insurance for you and your family. If you were to become sick or need surgery and you did not have health insurance, the cost of treatment could wipe out your savings and/or jeopardize the ability to make your house payment. In addition, if you are a senior, your health insurance needs are very different and you may want to learn more about Medicare Supplement Plans.
In order to obtain information about health insurance in your area, CLICK HERE to take you to the site for Jersey Benefits Group, Inc. and then click the request quote button. You will be asked to fill in your ZIP code to obtain a health insurance quote.
If you prefer to speak directly to a licensed agent, call 1-855-802-4123. In New Jersey, you can call the local number for Jersey Benefits Group, Inc., which is (609) 827-0194.
Health Insurance is a hot topic in today's social, economic and political arenas. If you have been laid off from work, are in between jobs or are self-employed, you will need some kind of health insurance for you and your family. If you were to become sick or need surgery and you did not have health insurance, the cost of treatment could wipe out your savings and/or jeopardize the ability to make your house payment. In addition, if you are a senior, your health insurance needs are very different and you may want to learn more about Medicare Supplement Plans.
In order to obtain information about health insurance in your area, CLICK HERE to take you to the site for Jersey Benefits Group, Inc. and then click the request quote button. You will be asked to fill in your ZIP code to obtain a health insurance quote.
If you prefer to speak directly to a licensed agent, call 1-855-802-4123. In New Jersey, you can call the local number for Jersey Benefits Group, Inc., which is (609) 827-0194.
Monday, September 26, 2011
IRS Proposes Safe Harbor for Health Care Plan Affordability Test
WASHINGTON—A new Internal Revenue Service proposal would make it easier for employers to determine if their health care plans are “affordable” and exempt from a stiff financial penalty mandated by the health care reform law.
Under the law, starting in 2014, employers are liable for an annual $3,000-per-employee penalty for employees whose required health insurance premium contribution for single coverage exceeds 9.5% of family income and the employees are eligible for federal premium subsidies to buy coverage through state insurance exchanges.
Following up on a promise made in August, the IRS on Tuesday asked for public comment on a proposed safe harbor in which coverage would be considered affordable as long as the premium contribution for single coverage did not exceed 9.5% of an employee's W-2 wages.
‘More workable, practical'
“By allowing employers to base their affordability calculations on each employee's W-2 wages (which employers know) instead of each employee's household income (which employers generally would not know), the safe harbor could provide a more workable and practical method for measuring the affordability of an employer's coverage,” the IRS said in Notice 2011-73.
“This will work very well for employers. It is a real positive for employers,” said Rich Stover, a principal with Buck Consultants L.L.C. in Secaucus, N.J.
“Employers welcome a safe harbor that will enable them to determine, based on information they have, whether their plans are ‘affordable' under the law. They should not have to face significant penalties simply because they have no access to their employees' household income,” said Anne Waidmann, a director with PricewaterhouseCoopers L.L.P. in Washington.
To qualify for the safe harbor, an employer would have to meet certain requirements, including offering full-time employees the opportunity to enroll in a qualified employer-sponsored plan and that the required employee premium contribution for individual coverage in an employer's lowest-cost plan available to the employee not exceed 9.5% of the employee's W-2 wages.
Determined by employer
Application of the safe harbor would be determined at the end of a calendar year and on an employee-by-employee basis.
“The employer would determine whether it met the proposed affordability safe harbor for 2014 for an employee by looking at that employee's W-2 wages for 2014 and comparing 9.5% of that amount to the employee's 2014 premium contribution,” the IRS said.
Jerry Geisel
Business Insurance
Under the law, starting in 2014, employers are liable for an annual $3,000-per-employee penalty for employees whose required health insurance premium contribution for single coverage exceeds 9.5% of family income and the employees are eligible for federal premium subsidies to buy coverage through state insurance exchanges.
Following up on a promise made in August, the IRS on Tuesday asked for public comment on a proposed safe harbor in which coverage would be considered affordable as long as the premium contribution for single coverage did not exceed 9.5% of an employee's W-2 wages.
‘More workable, practical'
“By allowing employers to base their affordability calculations on each employee's W-2 wages (which employers know) instead of each employee's household income (which employers generally would not know), the safe harbor could provide a more workable and practical method for measuring the affordability of an employer's coverage,” the IRS said in Notice 2011-73.
“This will work very well for employers. It is a real positive for employers,” said Rich Stover, a principal with Buck Consultants L.L.C. in Secaucus, N.J.
“Employers welcome a safe harbor that will enable them to determine, based on information they have, whether their plans are ‘affordable' under the law. They should not have to face significant penalties simply because they have no access to their employees' household income,” said Anne Waidmann, a director with PricewaterhouseCoopers L.L.P. in Washington.
To qualify for the safe harbor, an employer would have to meet certain requirements, including offering full-time employees the opportunity to enroll in a qualified employer-sponsored plan and that the required employee premium contribution for individual coverage in an employer's lowest-cost plan available to the employee not exceed 9.5% of the employee's W-2 wages.
Determined by employer
Application of the safe harbor would be determined at the end of a calendar year and on an employee-by-employee basis.
“The employer would determine whether it met the proposed affordability safe harbor for 2014 for an employee by looking at that employee's W-2 wages for 2014 and comparing 9.5% of that amount to the employee's 2014 premium contribution,” the IRS said.
Jerry Geisel
Business Insurance
Tuesday, August 30, 2011
Should You Exchange Your Life Insurance Policy?
If you own a life insurance policy, you may have been approached to exchange it for another new policy. You need to know that even though the tax laws make the exchange income tax free and the new policy may appear better to you, you may be losing—not gaining—if you make the exchange. We are issuing this Alert because, increasingly, life insurance exchanges may involve variable products. Variable products are securities, and this Alert will provide information to help you evaluate whether the exchange is right for you, and how you can find out what you need to know to make an appropriate decision.
Types of Life Insurance
There are various forms of life insurance products. Although features and benefits may vary, the following is a general description of typical characteristics of various types of life insurance policies.
Term Life Insurance. Term life insurance provides coverage for a specified and limited period of time (the "term"). Premiums for most term policies increase with age or at the end of each renewal period. After the policy or term ends, there is no benefit payment if the insured person survives beyond the policy period.
Whole Life Insurance. Whole life or ordinary life insurance is a form of permanent life insurance. This means it can provide coverage for the life of the insured. It also can build cash value, which is a savings feature. Premium payments typically remain level for the life of the insured.
Universal Life Insurance. Universal life insurance can also provide coverage for the life of the insured while at the same time providing flexibility in premium payments and in insurance coverage. The cost of insurance protection and, in some cases, other costs are deducted from the cash or policy account value.
Variable Life Insurance. Variable life insurance, a variation of whole life insurance, offers a fixed premium schedule and a minimum death benefit. But it differs from traditional whole life insurance in that cash values are invested in portfolios of securities in an account separate from the general assets of the insurance company. A policyholder has discretion in choosing the mix of investments the policy offers. The insurance company does not guarantee investment returns and your cash value will fluctuate.
Variable Universal Life Insurance. Variable universal life insurance combines features of universal life insurance and variable life insurance.
Most variable life insurance policies and variable universal life insurance policies are securities registered with the Securities and Exchange Commission (SEC). Registration requires that investors receive important financial and other significant information concerning the securities being offered for sale. This enables investors to judge for themselves if the securities are a good investment. These regulations also provide important remedies to investors if they can prove that there was incomplete or inaccurate disclosure of important information provided to them.
1035 Exchanges
The Internal Revenue Service allows you to exchange an insurance policy that you own for a new life insurance policy insuring the same person without paying tax on the investment gains earned on the original contract. This can be a substantial benefit. Because this is governed by Section 1035 of the Internal Revenue Code, these are called "1035 Exchanges."
But this benefit comes with some important strings.
The tax code says that the old insurance policy must be exchanged for a new policy - you cannot receive a check and apply the proceeds to the purchase of a new insurance policy.
The tax code also says that you can make a tax-free exchange from: 1) a life insurance policy to another life insurance policy or 2) a life insurance policy to an annuity. You cannot, however, exchange an annuity contract for a life insurance policy.
A transaction in which a new insurance or annuity contract is to be purchased using all or a portion of the proceeds of an existing life insurance or annuity contract is referred to as a "replacement." A 1035 Exchange is a type of replacement transaction. Although the term "1035 Exchange" is often used to describe any form of replacement activity, technically not all replacements are Section 1035 Exchanges and as a consequence are not tax-free.
Reasons to Exchange an Existing Policy?
There are various reasons why a life insurance policyholder may want to replace an existing policy with a new life insurance policy. For example,
Improved health or mortality improvements across the general population may result in insurance coverage at a lower cost.
You may have concerns with the solvency of the insurance company that issued the original policy or with the service of the agent that sold you the policy.
A new life insurance policy may have more desirable features or benefits.
Reasons Not to Exchange an Existing Policy
There are also various reasons why replacement of an existing insurance policy may not be a good idea. For example,
Cash value built up in the original policy may be applied to the new life insurance policy's first year expenses, including commissions.
Life insurance policies (other than term policies) often include early surrender charges, which can reduce the amount of cash value available toward the new policy. The new policy will likely have its own new surrender charge schedule, which may extend beyond that of the original policy.
You may pay higher premiums if, for example, your health has declined since the purchase of the current policy.
The new policy typically will have a new contestability period - a two-year period from the issuance of the new policy during which the insurance company could challenge a death claim based upon a misstatement on the application.
There may be unfavorable tax consequences caused by surrendering an existing policy, such as a potential tax on outstanding policy loans.
What You Should Watch For
You should exchange your life insurance policy only when you determine, after knowing all of the facts that the exchange is better for you and not just better for the person who is trying to sell the policy to you.
Both variable life insurance and variable universal life insurance are securities. Those who offer these products must follow SEC, FINRA, and state securities regulations, in addition to state insurance law. This means that a broker must tell you the important facts about the pros and cons of the exchange. Your broker or insurance agent should recommend such an exchange only if it is in your best interest and only after evaluating your personal and financial situation and needs, tolerance for risk, and the financial ability to pay for the proposed insurance policy.
Your broker or insurance agent may recommend that you use insurance policy values, such as loans or withdrawals, to pay premiums for a new life insurance policy. This activity is generally called "financing" premiums. It may not be appropriate for you. For example, withdrawals from existing policies may be subject to federal income tax and may reduce the death benefit. Borrowing money from an existing policy will almost certainly reduce the death benefit. Withdrawals or loans may make it more difficult to keep the original policy in force without additional out-of-pocket premium payments. If you can't keep the original policy in force, you will lose the insurance protection and the loans themselves may give rise to tax consequences. Remember for a transaction to qualify as a 1035 exchange, the old policy must actually be exchanged for the new policy. Many states and brokerage firms require forms to reflect customer acknowledgement of a replacement transaction. These forms typically are signed by the insurance policy owner and the broker or agent. These forms may provide a comparison of the features and costs of an existing policy to a proposed policy, and point out what you need to focus on when considering an exchange. Some brokerage firms may provide brochures or educational material designed to outline the possible advantages and disadvantages of the transaction. You should review these forms and materials closely.
Regardless of whether such forms are provided, you should specifically ask the person recommending that you exchange or replace your existing policy to provide you with illustrations for your existing policy and the new policy. You should also ask:
What is the total cost to me of this exchange?
What are the new features being offered?
Why do I need those features?
Are these features worth the cost?
Can the existing policy be modified or supplemented to provide some or all of these same features?
Will you be paid a commission for the exchange, and if so, how much is it?
You should not sign any exchange form or agree to exchange or purchase an insurance policy until you study all of the options carefully, have all of your questions answered, and are satisfied that the exchange is better than keeping your current policy.
If You Have Questions or Complaints
If you have questions or complaints about a life insurance policy exchange, you can contact FINRA, the SEC, your state securities administrator, or your state insurance commissioner.
Reference Material
For additional information about variable life insurance policies or variable annuity contracts, go to:
Notices to Members 99-35 and 00-44
Investor Alert - Should You Exchange Your Variable Annuity?
SEC Variable Annuities: What You Should Know
Press Release - NASD Regulation Files Six Enforcement Actions Involving Marketing and Sales of Variable Annuities
Press Release - NASD Regulation Announces Two Enforcement Actions Involving Sales of Variable Annuity and Life Insurance Contracts
To receive the latest Investor Alerts and other important investor information sign up for Investor News.
Types of Life Insurance
There are various forms of life insurance products. Although features and benefits may vary, the following is a general description of typical characteristics of various types of life insurance policies.
Term Life Insurance. Term life insurance provides coverage for a specified and limited period of time (the "term"). Premiums for most term policies increase with age or at the end of each renewal period. After the policy or term ends, there is no benefit payment if the insured person survives beyond the policy period.
Whole Life Insurance. Whole life or ordinary life insurance is a form of permanent life insurance. This means it can provide coverage for the life of the insured. It also can build cash value, which is a savings feature. Premium payments typically remain level for the life of the insured.
Universal Life Insurance. Universal life insurance can also provide coverage for the life of the insured while at the same time providing flexibility in premium payments and in insurance coverage. The cost of insurance protection and, in some cases, other costs are deducted from the cash or policy account value.
Variable Life Insurance. Variable life insurance, a variation of whole life insurance, offers a fixed premium schedule and a minimum death benefit. But it differs from traditional whole life insurance in that cash values are invested in portfolios of securities in an account separate from the general assets of the insurance company. A policyholder has discretion in choosing the mix of investments the policy offers. The insurance company does not guarantee investment returns and your cash value will fluctuate.
Variable Universal Life Insurance. Variable universal life insurance combines features of universal life insurance and variable life insurance.
Most variable life insurance policies and variable universal life insurance policies are securities registered with the Securities and Exchange Commission (SEC). Registration requires that investors receive important financial and other significant information concerning the securities being offered for sale. This enables investors to judge for themselves if the securities are a good investment. These regulations also provide important remedies to investors if they can prove that there was incomplete or inaccurate disclosure of important information provided to them.
1035 Exchanges
The Internal Revenue Service allows you to exchange an insurance policy that you own for a new life insurance policy insuring the same person without paying tax on the investment gains earned on the original contract. This can be a substantial benefit. Because this is governed by Section 1035 of the Internal Revenue Code, these are called "1035 Exchanges."
But this benefit comes with some important strings.
The tax code says that the old insurance policy must be exchanged for a new policy - you cannot receive a check and apply the proceeds to the purchase of a new insurance policy.
The tax code also says that you can make a tax-free exchange from: 1) a life insurance policy to another life insurance policy or 2) a life insurance policy to an annuity. You cannot, however, exchange an annuity contract for a life insurance policy.
A transaction in which a new insurance or annuity contract is to be purchased using all or a portion of the proceeds of an existing life insurance or annuity contract is referred to as a "replacement." A 1035 Exchange is a type of replacement transaction. Although the term "1035 Exchange" is often used to describe any form of replacement activity, technically not all replacements are Section 1035 Exchanges and as a consequence are not tax-free.
Reasons to Exchange an Existing Policy?
There are various reasons why a life insurance policyholder may want to replace an existing policy with a new life insurance policy. For example,
Improved health or mortality improvements across the general population may result in insurance coverage at a lower cost.
You may have concerns with the solvency of the insurance company that issued the original policy or with the service of the agent that sold you the policy.
A new life insurance policy may have more desirable features or benefits.
Reasons Not to Exchange an Existing Policy
There are also various reasons why replacement of an existing insurance policy may not be a good idea. For example,
Cash value built up in the original policy may be applied to the new life insurance policy's first year expenses, including commissions.
Life insurance policies (other than term policies) often include early surrender charges, which can reduce the amount of cash value available toward the new policy. The new policy will likely have its own new surrender charge schedule, which may extend beyond that of the original policy.
You may pay higher premiums if, for example, your health has declined since the purchase of the current policy.
The new policy typically will have a new contestability period - a two-year period from the issuance of the new policy during which the insurance company could challenge a death claim based upon a misstatement on the application.
There may be unfavorable tax consequences caused by surrendering an existing policy, such as a potential tax on outstanding policy loans.
What You Should Watch For
You should exchange your life insurance policy only when you determine, after knowing all of the facts that the exchange is better for you and not just better for the person who is trying to sell the policy to you.
Both variable life insurance and variable universal life insurance are securities. Those who offer these products must follow SEC, FINRA, and state securities regulations, in addition to state insurance law. This means that a broker must tell you the important facts about the pros and cons of the exchange. Your broker or insurance agent should recommend such an exchange only if it is in your best interest and only after evaluating your personal and financial situation and needs, tolerance for risk, and the financial ability to pay for the proposed insurance policy.
Your broker or insurance agent may recommend that you use insurance policy values, such as loans or withdrawals, to pay premiums for a new life insurance policy. This activity is generally called "financing" premiums. It may not be appropriate for you. For example, withdrawals from existing policies may be subject to federal income tax and may reduce the death benefit. Borrowing money from an existing policy will almost certainly reduce the death benefit. Withdrawals or loans may make it more difficult to keep the original policy in force without additional out-of-pocket premium payments. If you can't keep the original policy in force, you will lose the insurance protection and the loans themselves may give rise to tax consequences. Remember for a transaction to qualify as a 1035 exchange, the old policy must actually be exchanged for the new policy. Many states and brokerage firms require forms to reflect customer acknowledgement of a replacement transaction. These forms typically are signed by the insurance policy owner and the broker or agent. These forms may provide a comparison of the features and costs of an existing policy to a proposed policy, and point out what you need to focus on when considering an exchange. Some brokerage firms may provide brochures or educational material designed to outline the possible advantages and disadvantages of the transaction. You should review these forms and materials closely.
Regardless of whether such forms are provided, you should specifically ask the person recommending that you exchange or replace your existing policy to provide you with illustrations for your existing policy and the new policy. You should also ask:
What is the total cost to me of this exchange?
What are the new features being offered?
Why do I need those features?
Are these features worth the cost?
Can the existing policy be modified or supplemented to provide some or all of these same features?
Will you be paid a commission for the exchange, and if so, how much is it?
You should not sign any exchange form or agree to exchange or purchase an insurance policy until you study all of the options carefully, have all of your questions answered, and are satisfied that the exchange is better than keeping your current policy.
If You Have Questions or Complaints
If you have questions or complaints about a life insurance policy exchange, you can contact FINRA, the SEC, your state securities administrator, or your state insurance commissioner.
Reference Material
For additional information about variable life insurance policies or variable annuity contracts, go to:
Notices to Members 99-35 and 00-44
Investor Alert - Should You Exchange Your Variable Annuity?
SEC Variable Annuities: What You Should Know
Press Release - NASD Regulation Files Six Enforcement Actions Involving Marketing and Sales of Variable Annuities
Press Release - NASD Regulation Announces Two Enforcement Actions Involving Sales of Variable Annuity and Life Insurance Contracts
To receive the latest Investor Alerts and other important investor information sign up for Investor News.
Thursday, July 28, 2011
FREE ONLINE LIFE INSURANCE QUOTES & APPLICATIONS
Life Insurance is for all stages of life...
Let us assist you with one of the most important purchases you will make in your lifetime...LIFE INSURANCE!
Jersey Benefits will make the process of getting life insurance coverage easy.
1) Click Here to take you to our website for your free online quote.
2) We will instantly present you with several options from leading insurance companies.
3) Select your option and complete an application. In most cases, your application can be completed online.
4) We submit your application to the insurance company. Turnaround time can vary from one day to 3 - 4 weeks, depending on the carrier.
Best Selling Electronics From Amazon - Visit Amazon to learn about their Deals of the Week. See their best bargains in electronics and make your purchase today.
Let us assist you with one of the most important purchases you will make in your lifetime...LIFE INSURANCE!
Jersey Benefits will make the process of getting life insurance coverage easy.
1) Click Here to take you to our website for your free online quote.
2) We will instantly present you with several options from leading insurance companies.
3) Select your option and complete an application. In most cases, your application can be completed online.
4) We submit your application to the insurance company. Turnaround time can vary from one day to 3 - 4 weeks, depending on the carrier.
Best Selling Electronics From Amazon - Visit Amazon to learn about their Deals of the Week. See their best bargains in electronics and make your purchase today.
Thursday, June 30, 2011
Jersey Benefits Group, Inc. Offering Life Insurance Online
Jersey Benefits Group, Inc. has partnered with One Resource Group, Inc. to develop and market an online life insurance quotation system that allows individuals to enter their information and receive competitive quotes from major insurance carriers online. In most cases the application can also be completed online. There is also a direct toll free line to speak to a customer service representative, as well as an email link to ask questions or receive assistance with the quotation or application process.
This system eliminates speaking to numerous agents who call with quotes, which is the model used by many websites that market insurance quotes. For people who wish to complete the process totally on their own, and like to evaluate numerous quotes independently before applying for insurance, this site should satisfy their needs. The site is sleek, efficient, easy to navigate and does exactly what is intended. Quotes are free and no money is exchanged until the individual is approved for the policy quoted.
Of course, anyone who is interested in talking to an insurance advisor, who will meet with the client in the traditional face to face manner, simply needs to contact the company either by telephone or email to set up an appointment. Through the ORG network, Jersey Benefits Group, Inc. can assist individuals outside the state of New Jersey in locating insurance professionals who can meet with them face to face. The toll free number to call, outside New Jersey, is (855) 802-4123. Within the state of New Jersey, clients can contact the office directly at (609) 827-0194.
This system eliminates speaking to numerous agents who call with quotes, which is the model used by many websites that market insurance quotes. For people who wish to complete the process totally on their own, and like to evaluate numerous quotes independently before applying for insurance, this site should satisfy their needs. The site is sleek, efficient, easy to navigate and does exactly what is intended. Quotes are free and no money is exchanged until the individual is approved for the policy quoted.
Of course, anyone who is interested in talking to an insurance advisor, who will meet with the client in the traditional face to face manner, simply needs to contact the company either by telephone or email to set up an appointment. Through the ORG network, Jersey Benefits Group, Inc. can assist individuals outside the state of New Jersey in locating insurance professionals who can meet with them face to face. The toll free number to call, outside New Jersey, is (855) 802-4123. Within the state of New Jersey, clients can contact the office directly at (609) 827-0194.
Sunday, May 15, 2011
Issues in Planning
Nobody can deny that planning is important for a business to succeed because it enables companies to have a sense of direction on what they want to accomplish and how to accomplish it. However, there are also issues in formalized planning that have been raised because of the changing global environment that has challenged the importance of planning itself. Some of these issues should be faced because they mirror the real environment today. Here are some of the issues:
1. Planning can create rigidity - this means that when a plan is made, it is usually made with a specific time frame and the steps that need to be completed within this time frame. However, these kinds of plans are made on the assumption that the environment would not change during that period except for the forecasts that were made at the time of planning. With this kind of planning, managers will have a hard time adapting to unique situations with new ideas and methods because the time frame and the rules had already been set.
2. Planning isn’t suited for a dynamic environment - the environment today is constantly changing, and as such, plans are usually discarded because it is no longer relevant to the situation that companies find themselves in.
3. Plans cannot replace creativity and intuition - most successful organizations are founded on creativity and intuition. But as companies grow bigger, they tend to become more formalized. This development makes it hard for companies to continually innovate and come up with new ideas so they tend to lag behind from the competition.
4. Plans tend to focus a manager’s attention on today rather than tomorrow - plans are usually created with a set of tasks that a manager should do on an everyday basis. This hinders him from looking ahead and seeing what may happen in the future. It also limits the manager from grabbing opportunities because he is busy following the guidelines of the plan.
5. Formal planning enforces success which may lead to failure - it is hard to change plans that had been proven to be successful in the past. But these successful plans may be the cause of the downfall of the company if managers aren’t responsive enough to changes.
With all these issues comes the question, “Is planning still relevant?” Yes, it is because businesses would have a hard time surviving without a specific plan in place. The entire organization would become disorganized without proper planning. Actually, everyone agrees that having a plan is crucial for an organization’s success; the problem only arises when the plans begin to become too rigid to accommodate changes in the business environment. So the key to successful planning is to create plans that are flexible enough to adapt to possible changes tomorrow.
1. Planning can create rigidity - this means that when a plan is made, it is usually made with a specific time frame and the steps that need to be completed within this time frame. However, these kinds of plans are made on the assumption that the environment would not change during that period except for the forecasts that were made at the time of planning. With this kind of planning, managers will have a hard time adapting to unique situations with new ideas and methods because the time frame and the rules had already been set.
2. Planning isn’t suited for a dynamic environment - the environment today is constantly changing, and as such, plans are usually discarded because it is no longer relevant to the situation that companies find themselves in.
3. Plans cannot replace creativity and intuition - most successful organizations are founded on creativity and intuition. But as companies grow bigger, they tend to become more formalized. This development makes it hard for companies to continually innovate and come up with new ideas so they tend to lag behind from the competition.
4. Plans tend to focus a manager’s attention on today rather than tomorrow - plans are usually created with a set of tasks that a manager should do on an everyday basis. This hinders him from looking ahead and seeing what may happen in the future. It also limits the manager from grabbing opportunities because he is busy following the guidelines of the plan.
5. Formal planning enforces success which may lead to failure - it is hard to change plans that had been proven to be successful in the past. But these successful plans may be the cause of the downfall of the company if managers aren’t responsive enough to changes.
With all these issues comes the question, “Is planning still relevant?” Yes, it is because businesses would have a hard time surviving without a specific plan in place. The entire organization would become disorganized without proper planning. Actually, everyone agrees that having a plan is crucial for an organization’s success; the problem only arises when the plans begin to become too rigid to accommodate changes in the business environment. So the key to successful planning is to create plans that are flexible enough to adapt to possible changes tomorrow.
Monday, April 25, 2011
Small Business Asset Management
Business assets are the things that keeps the business going so all businessmen should realize that asset management is an important part of managing a dynamic and profitable business. There are two types of business assets that businessmen should look into, the first is the cash asset and the second is the physical asset.
Obviously, you need to manage your cash flow properly to sustain business operations, pay your workers, and buy raw materials. However, cash assets are probably the most difficult kind of asset to manage because you need to balance the lead time wherein your buyers would pay if they buy on credit, and the time it takes for you to buy the raw materials once again for production.
On the other hand, managing the cash assets is also important because you need to pay the government a certain amount of cash from your profit. Sometimes, the taxes you have to pay are already due even when you have not received the payment for your products in cash yet. So how can you reconcile this problem with the necessity of paying taxes? Well, this is exactly the reason why you need to manage and anticipate issues such as this one even at the beginning of the year so you can avoid being in debt to the government. However, if this scenario has already happened then the next best thing you can do is to ask your buyers to pay you in advance if possible.
Meanwhile, keeping track of your physical assets such as your inventory and equipment is likewise important for you to sustain effective and efficient business operations. You should note that it is sometimes required for you to conduct a physical inventory just to make sure that everything is in place. In addition, you should realize that all assets that have a value can be considered as a physical asset. For example, you might already know that the machinery you use for production is an essential asset for your company. But it is also important to remember that even the chair you are sitting on in the office is considered to be an asset therefore you need to include it in your list of assets and liabilities.
Keeping track of your assets will likewise enable you to keep an accurate record of the real status of your business. In the long run, proper asset management will enable your business to grow and expand without any problems because you know your real capacity to meet the needs of the marketplace. Even minor assets that you normally ignore should be recorded. Asset management should definitely be taken seriously as this is part of managing a successful business that is ready for the future.
Obviously, you need to manage your cash flow properly to sustain business operations, pay your workers, and buy raw materials. However, cash assets are probably the most difficult kind of asset to manage because you need to balance the lead time wherein your buyers would pay if they buy on credit, and the time it takes for you to buy the raw materials once again for production.
On the other hand, managing the cash assets is also important because you need to pay the government a certain amount of cash from your profit. Sometimes, the taxes you have to pay are already due even when you have not received the payment for your products in cash yet. So how can you reconcile this problem with the necessity of paying taxes? Well, this is exactly the reason why you need to manage and anticipate issues such as this one even at the beginning of the year so you can avoid being in debt to the government. However, if this scenario has already happened then the next best thing you can do is to ask your buyers to pay you in advance if possible.
Meanwhile, keeping track of your physical assets such as your inventory and equipment is likewise important for you to sustain effective and efficient business operations. You should note that it is sometimes required for you to conduct a physical inventory just to make sure that everything is in place. In addition, you should realize that all assets that have a value can be considered as a physical asset. For example, you might already know that the machinery you use for production is an essential asset for your company. But it is also important to remember that even the chair you are sitting on in the office is considered to be an asset therefore you need to include it in your list of assets and liabilities.
Keeping track of your assets will likewise enable you to keep an accurate record of the real status of your business. In the long run, proper asset management will enable your business to grow and expand without any problems because you know your real capacity to meet the needs of the marketplace. Even minor assets that you normally ignore should be recorded. Asset management should definitely be taken seriously as this is part of managing a successful business that is ready for the future.
Wednesday, March 30, 2011
Keywords Are King
There are a number of different methods people use to advertise their online businesses, but there is one thing that ties all of these tactics together. Every single method used by a business today is successful primarily because of keywords utilized. Keywords drive search on the internet and that is exactly why Keywords are King in the land of online marketing.
Importance
The importance of keywords has to do with search engines. How many times have you been interested in learning about a specific topic and then searched online in a search engine like Google, Yahoo or Bing? If you are like most people that have used the internet, the answer is quite often. While some people might exclusively search online encyclopedias and other products like that, many people will use search engines to scan the internet. This amounts to hundreds of millions of people conducting billions of searches each day.
As a website owner, you want keywords that you use on your website to be the keywords that people put into the search engines. If you do the keyword placement correctly, ultimately you will have search engine success. This is exactly why keywords are so important in the grand scheme of things.
Plan of Attack
Having a plan of attack for your keywords when you set up your website is always a good idea. The best way to formulate that plan of attack is to first think of keywords directly related to the website that you are building. For example, a website on Slim-Fast would greatly benefit from keywords like "weight loss", "diet" and "diet drink". Once you have a list of very obvious keywords, your goal is then to run those keywords through keyword tools and figure out what people have been searching for in relation to those words and compile a list of keywords in this way. Then, come up with synonyms and search for the synonyms. It is a good idea to have at least 100 keywords for a website before you formulate your plan of attack and going through this process will ensure that you probably end up with a lot more.
Search Engine Optimization
Part of your plan of attack has to revolve around getting those keywords into places on your website where they will attract the interest of the search engines, and the process of doing this is known as search engine optimization. Search engine optimization essentially means getting important keywords into the titles and sub-titles of the website pages that you have and also making sure that keywords are sprinkled throughout the text in appropriate percentages. All of this may sound like a simple concept, but it is difficult to master. So, if you are putting together a website learning the basics of search engine optimization is a very good idea.
Importance
The importance of keywords has to do with search engines. How many times have you been interested in learning about a specific topic and then searched online in a search engine like Google, Yahoo or Bing? If you are like most people that have used the internet, the answer is quite often. While some people might exclusively search online encyclopedias and other products like that, many people will use search engines to scan the internet. This amounts to hundreds of millions of people conducting billions of searches each day.
As a website owner, you want keywords that you use on your website to be the keywords that people put into the search engines. If you do the keyword placement correctly, ultimately you will have search engine success. This is exactly why keywords are so important in the grand scheme of things.
Plan of Attack
Having a plan of attack for your keywords when you set up your website is always a good idea. The best way to formulate that plan of attack is to first think of keywords directly related to the website that you are building. For example, a website on Slim-Fast would greatly benefit from keywords like "weight loss", "diet" and "diet drink". Once you have a list of very obvious keywords, your goal is then to run those keywords through keyword tools and figure out what people have been searching for in relation to those words and compile a list of keywords in this way. Then, come up with synonyms and search for the synonyms. It is a good idea to have at least 100 keywords for a website before you formulate your plan of attack and going through this process will ensure that you probably end up with a lot more.
Search Engine Optimization
Part of your plan of attack has to revolve around getting those keywords into places on your website where they will attract the interest of the search engines, and the process of doing this is known as search engine optimization. Search engine optimization essentially means getting important keywords into the titles and sub-titles of the website pages that you have and also making sure that keywords are sprinkled throughout the text in appropriate percentages. All of this may sound like a simple concept, but it is difficult to master. So, if you are putting together a website learning the basics of search engine optimization is a very good idea.
Tuesday, February 22, 2011
Why Businesses are Paying More Attention to Their Customers
If you have heard the saying “the customer is always right” you are among the hundreds of millions of people who have also heard this phrase. While this may or may not be the case, the customer does have a lot of say and influence in how a company or business performs and its current and potential success. Today, more and more business owners are paying more attention to what their customers say and feel.
Business owners know that their customers are the key to their success. If there are no customers there is no business. Keeping the customers happy keeps the customers returning for future business transactions, which is good for both the customer and business owner. Many business owners authorize customer surveys to be distributed either electronically through email or through the postal service.
Customer satisfaction surveys give the business owner a good idea of what the customer thinks about the services and products. These surveys allow the business owner to ask specific questions about the customer’s most recent experience, a particular product, and the freedom to provide any additional comments that he or she may want to share. This survey system is incredibly useful in keeping a business on target with what its client base is interested in and wants.
What a customer thinks of a particular product or service is vital information to a business. Knowing what the clientele is thinking allows a business owner to get the upper hand on competitors and to provide customers with what they want. The happier the customer is, the happier the business is, so to speak.
Businesses that actively seek out the opinions and thoughts of their customers usually attain loyalty from those customers and clients. Loyalty to a particular brand or business is essential to success. With this loyalty comes free marketing in the form of word of mouth advertising. In most cases, satisfied customers will tell their family and friends about a great new product or a great service provided by a particular business. During these discussions, the customer’s friends and family will consider the item or service then check it out for him or herself later. Word of mouth advertising gives the business more credibility than simple paid advertising.
Any business owner that wants to ensure success for his or her company is wise to consider the thoughts of the customer-base. Listening to the customers’ thoughts, needs, wants, and ideas can help improve business dramatically and thus ensure customer loyalty. New customers help businesses grow, however returning loyal customers make all the difference. It is easy to get a customer for the first time, however it is much more difficult to get the customers to return if they are not satisfied.
Business owners know that their customers are the key to their success. If there are no customers there is no business. Keeping the customers happy keeps the customers returning for future business transactions, which is good for both the customer and business owner. Many business owners authorize customer surveys to be distributed either electronically through email or through the postal service.
Customer satisfaction surveys give the business owner a good idea of what the customer thinks about the services and products. These surveys allow the business owner to ask specific questions about the customer’s most recent experience, a particular product, and the freedom to provide any additional comments that he or she may want to share. This survey system is incredibly useful in keeping a business on target with what its client base is interested in and wants.
What a customer thinks of a particular product or service is vital information to a business. Knowing what the clientele is thinking allows a business owner to get the upper hand on competitors and to provide customers with what they want. The happier the customer is, the happier the business is, so to speak.
Businesses that actively seek out the opinions and thoughts of their customers usually attain loyalty from those customers and clients. Loyalty to a particular brand or business is essential to success. With this loyalty comes free marketing in the form of word of mouth advertising. In most cases, satisfied customers will tell their family and friends about a great new product or a great service provided by a particular business. During these discussions, the customer’s friends and family will consider the item or service then check it out for him or herself later. Word of mouth advertising gives the business more credibility than simple paid advertising.
Any business owner that wants to ensure success for his or her company is wise to consider the thoughts of the customer-base. Listening to the customers’ thoughts, needs, wants, and ideas can help improve business dramatically and thus ensure customer loyalty. New customers help businesses grow, however returning loyal customers make all the difference. It is easy to get a customer for the first time, however it is much more difficult to get the customers to return if they are not satisfied.
Saturday, January 15, 2011
Look for Seven Red Flags When Applying to a For-Profit College
Enrollment at for-profit schools—including trade schools and online universities—has skyrocketed in recent years. Unfortunately, not all schools offer a quality education and enrolling in a sub-par program can be a waste of time and money. When checking out for-profit schools, the Better Business Bureau recommends doing your research and looking for five red flags.
For-profit colleges enroll 1.8 million students—a number that has increased significantly in the last decade, according to the US Department of Education. While for-profit schools are becoming a more popular option for students, a recent investigation by the US Government Accountability Office (GAO) found that some are misleading students about the cost and quality of the education they will receive.
“If you’re looking to expand your horizons and get a better education, take the time to explore all of your options and do your research,” said Alison Southwick, BBB spokesperson. “Not all post secondary schools offer the same level of education and you can waste tens of thousands of dollars and years of your life if you sign up with an institution that doesn’t meet standards.”
When applying to a for-profit school, the BBB recommends looking out for the following red flags:
The recruiter uses high-pressure sales tactics.
If a sales rep is subjecting you to high pressure sales tactics—including bullying you or claiming you have to sign up immediately, just walk away. A reputable school will take the time to answer your questions, allow you to talk to a financial aid advisor and not push you into making a hasty decision.
The recruiter exaggerates potential income or guarantees a job.
Beware of any school that guarantees you will get a job after completing their program. Landing a job is never a sure thing, especially in this economy. If the representative tells you how much money you’ll make after completing their program, confirm it with a third party—don’t just take their word for it.
The prices are inflated when compared to other options.
A recent GAO investigation alleged price gouging at some for-profit schools. As an example, one school charged $14,000 for a certification in massage therapy while a similar certification at a local public college would have cost only $520. Before signing up with any for-profit school, do your research and compare costs against other for-profit schools and public colleges.
The school is not accredited.
Accreditation is extremely important, but not always easy to confirm. Ask the school’s representative about national and regional accreditation and then confirm with the accrediting organization. You can check with the US Department of Education at http://ope.ed.gov/accreditation/ to learn which post secondary schools are accredited by approved agencies. More information on the importance of accreditation is available through the Council for Higher Education Accreditation’s website.
The degree or program seems too easy to obtain.
Diploma mills pose as online schools and often promise to give you a cheap and easy degree. Unfortunately, such diplomas aren’t worth the paper they’re printed on and won’t be recognized by the military, employers or other colleges. If the degree seems too easy to earn—this includes simply taking a test online or earning your degree based largely on life experience—it probably isn’t legitimate.
The school does not disclose information as required.
Some of the for-profit schools the GAO investigated "failed to provide clear information about the college's program duration, costs, or graduation rate despite federal regulations requiring them to do so." Don’t be afraid to ask plenty of questions when talking to recruiters and if you get the runaround instead of clear, concise answers, it’s a bad sign.
The recruiter encourages you to lie on financial aid forms.
The GAO report also found that some recruiters encouraged students to lie on their financial aid applications in order to get more money from the government to pay for tuition. If you get caught lying on your financial aid forms, not only will you have to pay the government back the money you borrowed, you could be fined and sent to prison.
For more advice on managing your personal finances and finding trustworthy businesses, visit The Better Business Bureau
For-profit colleges enroll 1.8 million students—a number that has increased significantly in the last decade, according to the US Department of Education. While for-profit schools are becoming a more popular option for students, a recent investigation by the US Government Accountability Office (GAO) found that some are misleading students about the cost and quality of the education they will receive.
“If you’re looking to expand your horizons and get a better education, take the time to explore all of your options and do your research,” said Alison Southwick, BBB spokesperson. “Not all post secondary schools offer the same level of education and you can waste tens of thousands of dollars and years of your life if you sign up with an institution that doesn’t meet standards.”
When applying to a for-profit school, the BBB recommends looking out for the following red flags:
The recruiter uses high-pressure sales tactics.
If a sales rep is subjecting you to high pressure sales tactics—including bullying you or claiming you have to sign up immediately, just walk away. A reputable school will take the time to answer your questions, allow you to talk to a financial aid advisor and not push you into making a hasty decision.
The recruiter exaggerates potential income or guarantees a job.
Beware of any school that guarantees you will get a job after completing their program. Landing a job is never a sure thing, especially in this economy. If the representative tells you how much money you’ll make after completing their program, confirm it with a third party—don’t just take their word for it.
The prices are inflated when compared to other options.
A recent GAO investigation alleged price gouging at some for-profit schools. As an example, one school charged $14,000 for a certification in massage therapy while a similar certification at a local public college would have cost only $520. Before signing up with any for-profit school, do your research and compare costs against other for-profit schools and public colleges.
The school is not accredited.
Accreditation is extremely important, but not always easy to confirm. Ask the school’s representative about national and regional accreditation and then confirm with the accrediting organization. You can check with the US Department of Education at http://ope.ed.gov/accreditation/ to learn which post secondary schools are accredited by approved agencies. More information on the importance of accreditation is available through the Council for Higher Education Accreditation’s website.
The degree or program seems too easy to obtain.
Diploma mills pose as online schools and often promise to give you a cheap and easy degree. Unfortunately, such diplomas aren’t worth the paper they’re printed on and won’t be recognized by the military, employers or other colleges. If the degree seems too easy to earn—this includes simply taking a test online or earning your degree based largely on life experience—it probably isn’t legitimate.
The school does not disclose information as required.
Some of the for-profit schools the GAO investigated "failed to provide clear information about the college's program duration, costs, or graduation rate despite federal regulations requiring them to do so." Don’t be afraid to ask plenty of questions when talking to recruiters and if you get the runaround instead of clear, concise answers, it’s a bad sign.
The recruiter encourages you to lie on financial aid forms.
The GAO report also found that some recruiters encouraged students to lie on their financial aid applications in order to get more money from the government to pay for tuition. If you get caught lying on your financial aid forms, not only will you have to pay the government back the money you borrowed, you could be fined and sent to prison.
For more advice on managing your personal finances and finding trustworthy businesses, visit The Better Business Bureau
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