Self-Employed Deals, Coupons, Tips

How To Earn Money From Online Videos

bidib — Tue, 18 Aug 2009 10:23:43 +0000

The rapid growth of broadband has made watching videos much easier and commonplace on the web. This resulted more number of internet users to go to video sharing site and watch favourite shows or that shared by other users.

A study conducted by Pew Internet and American Life Project called “Increased use of Video-sharing Sites” says that the percent of internet users who watch video sharing sites like YouTube is 48 percent. The Comscore’s research reveals that the percent of U.S. Internet audience who viewed online video is 77 percent of the total internet audience while the average figure stands at 273 minutes of video watching.

All these sound good news for entrepreneurs. The immense popularity of online videos, which provides ample opportunities to have a good laugh or be informed to the viewers, is now a good opportunity to create money. If you love to produce videos about your surroundings, this is a good option to make cash from your creations. Following are different ways to earn money from your videos:

1. Earn through ads in your videos
YouTube, the biggest video sharing website, has brought out a program called Youtube Partner Program http://www.youtube.com/partners to provide the creators of most popular and prolific videos earn from their creations. Alongside the videos, ads are also placed, and the revenue is shared between the content creators and YouTube. To be eligible for the program, you have to own the copyright of the video and there has to be a minimum of thousands of impressions generated for the video.

There are many other ad-related programs that you can access. These include:

• BrightCove – you insert ads in the videos. The program also provides syndication platform for producers of videos.

• BlipTV.com – this is a free video blogging, video sharing and podcasting service. Here, the video producers can earn from ads, post roll advertisements (ads that are shown after the finish of the video) in videos that are submitted. There are plans to introduce pre-poll and mid-roll ads in the program. The revenue is shared 50 / 50.

• Revver – the program provides both CPM and CPC and the revenue is shared 50-50 with the video content producer.

• Vuze – The video producers get 50% share of revenue generated through ads that are placed on the videos. Payment is made according to “qualified impressions” and not on clicks. By qualified impression, they mean a viewer within the country, where the ad is run.

2. Number of views payment
There is also the option to get paid on your videos reaching a certain number of views. Among the video sharing sites that have this style of payment include:

• Metacafe Producer Rewards program http://www.metacafe.com/producercentral/. The site can be accessed by creator of any original short video. The creator gets paid $5 for every 1,000 views, after reaching 20,000 views mark.

• Atom.com http://www.atom.com/creators/go_pro/. The payout varies in case of Pro Videos but could generate $8 for every 1,000 content plays in revenue share. The main focus of Atom.com is on the funny and witty videos. There are options for the video creators to get their works telecast in Comedy Central TV show.

3. Payment through downloads of videos
There are certain sites that provide you to sell your videos through download and include:
• Apple’s iTunes Music Store http://www.apple.com/itunes/contentproviders/
• You have to apply to the site and get approval as a content writer.

• Steamyohttp://www.streamyo.com/ - video producers can set the price of their videos in this site.

• Vuze - Vuze allows, in addition to ad based model, direct sale of their videos. The prices of the videos are decided by the video creators, who get 50% of the sale price.

• Behemoth http://www.behemoth.com/ - the site is meant for Christian family audiences. To distribute your videos through the site, you have to work with their licensed brokers, who review your content.

• Lulu.com – this is a self-publishing company that provides the video producers to earn through download or DVD on the storefront or their Marketplace. Video producers have the opportunity to set the price of their videos.

How To Earn Money From Online Videos - II

bidib — Sun, 16 Aug 2009 17:32:29 +0000

Videos have become a money-spinner to those who love to create them. If producing videos about your kids or surroundings is your passion, there are numerous options to build cash for your creations.

4. Producing commissioned videos
Creating videos on requests made for certain types of videos are another means to earn money. There are many companies that ask for videos on predetermined topics. These include:
o Demand Media - its Demand Studios Filmmaker Program looks for videos of instructional types that they use for their different properties like ExpertVillage.com, eHow.com, Livestrong.com and a host of others. You look for the different assignments to find the one suitable for you. You then search for experts on that topic and create the video. The return could be anything in between $300 to $600 per assignment.

o Zadby – There are online requests to which you respond by creating videos on the topic. You then get paid on the views expressed. Commissioned videos include videos that showcase an item like handbag or promoting a new dog show for Animal Planet.

o CurrentTV.com – the site provides two types of options to the video creators. The first option is to submit a 7 minute video ”pod” on pre-announced topics like the hottest trends in the fashion world to voting trend outside the mainland. Payment is made per pod created and the Pod video is broadcast on television. The second option is to submit a video ad as asked for by the sponsor. You are paid if the video is telecast on the Current website or to some other television channel.

5. Create videos for others and earn money
A good number of companies exist that hire the service of video producers in your local area. Some names are provided below:

• TumHere.com http://www.turnhere.com/ - the site helps small local businesses in producing videos of professional nature with an average payment of $1,000 for every video created. You can join them as a freelance video producer and earn for creating videos for them.

• VideoAgency.tv http://www.videoagency.tv/ - This is an online marketplace for the production of videos, and caters to companies and individuals who are looking for professional video producers.

6. Get paid for featured videos
Break.com http://www.break.com pays for original videos if they are selected to be featured on their homepage. The first original video featured earns you $200 ($400, if they are given exclusive rights). The second and third videos that are featured on their homepage earn you $300 and $400 (on giving exclusive rights, the figures are $500 and $400). There are special contests like April Fools best prank videos that earn the winner $1,000.

7. Earn through royalty
iStockPhoto.com has the video section that helps video producers to earn as much as 40% of the royalties if their videos pass the rigid test. Another site, called CreateSpace.com sells videos on Amazon.com and there is the option to earn royalties on every sale made.

8. On-demand selling of videos
For the independent filmmaker and established video content producer, a number of sites exist for them to sell their films.

• FlickRocket.com http://www.flickrocket.com/ provides a direct online rental / VOD as well as download-to-own / burn service.

• EZTakes http://www.eztakes.com/store/info/sell.jsp - here you can sell your feature length videos as downloadable DVDs in this site. It is you who set the price and EZTakes gets a share of about 30-35 percent of the price. However, the site requires you to provide a catalog of at least 20 films.

• Jaman http://www.jaman.com – here, the movies are offered for rental, sell, for free or different combinations of these. The rental for movies starts at $1.99 and goes up to $4.99 for premium titles. The producers of videos get 30 percent of gross revenues that are paid quarterly.

• GreenCine http://www.greencine.com

The Ten Entrepreneurial Mistakes People Often Make

bidib — Sun, 02 Aug 2009 11:39:46 +0000

There are certain mistakes that are hard to avoid, especially when faced with the situation for the first time. Many of these mistakes are even harder to avoid even when you are a past master. Although, you do not expect a CEO to make these types of mistakes, they are the common ones to be seen around.

Following are given ten entrepreneurial blunders that you are likely to make:

1. Problem with one big customer

If you find that over 50 percent of your revenues originate from a single customer, it could be suggestive of a meltdown. It must be realized that it is easier and profitable in dealing with a small number of big customers, while you become quite vulnerable if a single customer becomes the main source of cash flow. You start providing silly concessions to keep up their business. Their special requirements necessitate you to make special investments. In the deal, you become busy servicing that particular customer and fail to generate additional customers as well as revenue streams. And, when for some reason, that particular customer leaves you, your business teeters on the rocks.

Hence, any such burgeoning account should be a reason for both celebration and a danger signal. To avert this kind of situation, always be on the search for new business. And diversify your sources of revenue.

2. Do not create products in a vacuum

You may have a brilliant idea on which you spent months, and even years to implement it. But when it finally materializes in the market, you find there are no takers of it. It is because you were in so much love of the idea that you never cared to find out if someone would be interested to put money on the idea.

Make a market research up front, instead of searching for a product. Put your idea to test. Talk to at least a dozen potential customers about your idea. Find out, if anyone is interested to buy your product. This should be done before you do anything else. If there are a good number of votes for “yes”, you should go ahead to build it. You would do well to sell the product at pre-release prices. Put fund in it in advance and if the response is not quite enough, go for your next idea.

3. Be careful about providing equal partnerships

You must be cautious on having equal sharing of rights of the company with your partner. You are working as a salesman and looking for someone to look after your operations back at your office. Else, you are working as a technical man and looking for a person to find work for you. Or else, it could be that both you and your friend are planning to venture out for a company together. In each case, you may find it right to split the company into halves among both of you. Although, it seems right and fair at the start, but with the difference of personal and professional interests, the situation is sure to head for a disaster. Anyone of you can use their veto power to stall the growth and development of the company. This is because none of you has more votes to counter the situation. Equally worse, is the split of ownership equally among a large number of partners, more so among friends. Everyone has an equal voting right with own decisions. Getting a consensus or a unanimous decision becomes really a worrying factor as no one has the final say and any decision, however little, turns out to be debate, resulting in the bogging down of the plan quickly.

Make sure that someone is in charge. Be sure to make that person CEO while providing them with the largest stake of ownership, even if that means only a little more. If both you and your partner have equal power, then give a one percent share to an outside advisor to break the tie.

4. Keeping low price of products

A wrong notion among some entrepreneurs is that by keeping their products or services at low prices, they would make huge profits on the total volume of sale. You certainly do not like to work for low wages? Then, why do you like to sell at low prices? Always, remember that gross margin is better and pays for marketing and product developments. Low margins means low profits that leads to no future.

Set the prices as high as the market can bear. Although, you could sell more number of units and bring in greater dollar volume by keeping the price low (which may not be true always), you may not be in a better position in the end. Hence, it very important to do all the calculations before going in for low price strategy. Take into account all the extra stress that could come while running your business. If it is a service industry, low price is almost a no-no. How to decide the high limit of price? Keep raising your prices. When you find customers or clients have stopped buying, you have crossed your limit.

5. Keep check on your capital

Check out your business assumptions. Optimistic sales projections, unrealistically low expense forecast or short timeframes for product development are the norms. Weak competitors must not be forgotten. Again, there are many businesses that are simply under-capitalized. Even well-established companies often have cash reserves that are not enough to weather a downturn.

You must make a conservative estimate in all your projections. Make sure that you have the minimum capital required to make it through the complete sales cycle or till the next planned round of funding comes into effect. Or else, lower your expenses to complete the cycle.

6. Be focussed

This world is filled with many good ideas and your job is to select the ones that are in your focus areas and which provide high returns. Do not try to seize every possible business that comes your way. By spreading yourself thin causes below par performances.

If you concentrate your attention in a focus area, you can expect better than average results. You get profits more than that resulting from diversification. Make yourself in your niche for what you do best and complete the job exceedingly well.

7. Keep your overhead low

Make sure that your digs are humble while your furniture is cheap. The management team should earn most of their compensation when the profits come in copiously, not before. The best entrepreneurs always try to stretch their cash to use for key business building requirements like product developments, sales and marketing. See that you phone system brings in more sales and not become a fancy item. Make sure that all the necessary money is used to achieve its desired objectives. Before making any expenditure, make sure that the money really brings in sufficient returns. Otherwise it is an overhead.

8. Perfection is unattainable

Accept the fact that it is difficult to attain perfection and it is very costly too. The disease of perfection is often found among engineers who try to be absolutely perfect before releasing their products. The 80 / 20 rule says that if you try to finish the last 20 percent of the last 20 percent, the cost involved could be more than what you spent on the rest part of the project. Also, as you are trying to get the project right, the market is also changing right from under you. And to top it all, as you are busy perfecting, the customer is putting off purchasing the existing product, as they wait for the next new thing to arrive in the market.

Hence, your focus should be to create a market beating product within the time that is allotted for it. To go about it, set a deadline and build a product development plan that matches the deadline. Know where to put a stop on your development to make the delivery. As you reach your deadline, your time is up. Release your product in the market.

9. Have clear return on investments

You must do the necessary analysis on your business sales and create case studies. You must be able to quantify the return that comes from buying your product or services. Know the additional business it generates for your customer. How much the customers save. Although, it may seem to be a hard proposition to quantify with many intangibles, you need it to justify the purchase for the customer to do the same. Be sure that sales are a sales dunk if you can provide your return on investment for your product.

10. Admit your mistakes

Not admitting your mistake is the biggest mistake you can do. You realize the truth after some time. Be wise to admit it quickly. Put right the situation. If not addressed, the mistake will keep on increasing which can sometime result in bankruptcy.

Suppose you lose your money in your venture. The good news is that your basis is zero. If from the present scenario, you find investing fresh money into the idea to be not right, leave pursuing it altogether and change course. Never put any good money after bad. Remember everybody makes mistakes. Catching them quickly will be the right action for you before the mistakes kill your company. To avoid making mistakes in future, try to ask questions beforehand.

How To Stretch Your Marketing Dollars

bidib — Mon, 27 Jul 2009 17:48:22 +0000

Small establishments, because of the lack of enough fund & resources, often remain incapable to take advantage of advertising through multiple media formats. Unlike big organizations, they do not have the capability of purchasing a full-page space for the public promotion of their products or services. Advertising in primetime television seems to be a luxury to them.

For every organization, it is hard to carry their brand value, unless advertising is done on a regular basis. But the fact is that advertising cost is rising with leaps and bounds. That is why, it is not possible even for the big companies to maintain their advertisement budget in relation with the growing cost. As a matter of fact, a large number of establishments are trying to use almost every visible hoarding, fences of buildings and even back of the cars as a mode of promoting their advertisements. People have nowadays become flooded with these types ads.

If this is the condition, then what is the solution for it? It is suggested that if a small organization does not have enough funds to promote their products or services, then they should stretch their marketing dollars through non-advertising approach. This approach requires less money in comparison to usual advertising. Moreover, it is more effective than formula advertising. One of the difficulties is that it is time consuming and requires creative thinking to grow. Some of the ideas/events that can be used are as follows:

Organizing competition: In today’s world, ‘competition’ is the catchword to attract people. It is where people love to try their luck. People try to materialize their dream by way of participating in competitions like “Who Wants to Be a Millionaire.” To popularise these events, such contests should be comprised of playfulness and amusements, so that it easily catches the interest of the media.

Offering free gifts: It is one of the effective modes of attracting customers. Customers are more reactive to free gifts than the usual priced items. It seems to be an added reward to them. Anything free of charge is always acceptable to customers. It is seen than customers do not mind to purchase costly items if that are attached with free gifts. For example, if a company offers free CDs or printers along with computers, then people become enthusiastic to purchase those computers.

Giveaways are regarded as another effective way to attract customers. Through this approach, samples of the products are given to customers, free of cost, to prove its effectiveness. By this method, consumers get the opportunity to test the product themselves. As a result, both reliability and interests grow among customers to purchase the product. This approach is specifically applied in service-oriented business. This approach can also be applied in ‘Retail businesses’.

Events Sponsoring: Hosting civic events can be another way of promoting the business. Events like celebrity appearance and charity shows can easily draw the customers’ attention towards the product or services of the company. It also helps the company to maintain a link with its existing customers. Community service ads can be an effective way to create the glory and goodwill of the company.

Exclusive Offerings: Providing a discounted service can help to retain the existing and potential customers of the company. Exclusive offering is viewed as one of the most beneficial modes of pulling in the customers.

Last but not the least, attracting new customers should be the mantra for the positive growth of the company. Attracting new customers should be the challenge, as it is regarded as the most difficult task in any marketing strategies. To attract new customers, company can introduce services like incentive pricing and extra advertising allowances. It is seen that even a lawyer offers his/her first consultation free of charge.

Strategies For Small Business During Recession

bidib — Sun, 19 Jul 2009 11:29:25 +0000

The present tough time with economic recession does not mean that there will be no ending of it. There are enough opportunities available irrespective of recession. It cannot be denied that people are still buying things, may be not the freewheeling style that we are used to seeing before. But the fact is that people are still spending. Products are still being produced and services delivered while businesses still operate. Even though, economy might have slowed down to a considerable extent, but it has not stopped altogether.

To meet these tough economic times, I have compiled a list of tips and lessons on what small businesses can do to survive.
How to develop winning strategies
1. Become a leader
2. Identify your business shortcomings and strengthen them
3. Bring everyone on board
4. Try to protect your margins
5. Make your salesperson to sell
6. Focus your attention on core business
7. Do not make yourself to be treated like a bank
8. Do not wait to cut extra costs
9. Select the marketing tactics that are effective for your business
10. If you need to lay off your people - act like a leader
11. The time of recession is not meant to stop your thinking process about your business. Keep it open
12. Invite the knowledgeable people you know: You at least build empathy and loyalty with them (customers, major investors, and the like)
13. Bring in the service of the organization to develop your strategy
14. Create strategic leadership within the organization that includes embedding capability within the organization.
How to sell to clients
Ask questions to other business owners to find how they are changing their business strategy in this time of recession. Find whether they are removing some of their products, extending their credit lines, offering pay-as-you-go or month-to-month programs, adding lower costing products, or do they provide special offers? Once you find out, build an ad proposal against that.
How to manage your financials
1. Have a complete monitoring of non-payroll spending
2. Establish enforceable budget
3. Stop non essential spending
4. Start managing your inventory
5. Ask your suppliers for advice
6. Negotiate concessions offered by suppliers
7. Instead of capital spending, look for other ways of spending
8. Find innovative ways to use your savings to fuel growth
9. Look to implement cost cutting tools like e-procurement
10. Make your process streamlined
How to foster customer loyalty
During economic slowdown, it is extremely important to allocate your budget dollars towards your present customers. When the economy is down, it is the loyal customers who are the number one buyers as the ROI is highest with them. The present time of uncertainly has led to an increase of cost consciousness among customers. Price sensitive consumers find lower prices, temporary incentives or discounts from competitors more attractive. This makes it important to try communicating with your best customers and reinforce the value proposition that you offer. These include tailored products, messages, offers and services. Make it a point to change the mindset from having the “lowest price provider” to “best value provider”.
How to succeed in retail business
1. Improve merchandise efficiencies. Identify slow moving items and liquidate them fast and invest these dollars into fast moving items
2. Use planned pricing method and sell your stock through schedule markdowns
3. Improve customer loyalty to improve chances of repeat sales. Provide service to your customers as never done before. Know them, what they are looking for as you utilize your technology
4. Improve the productivity of employees
5. Incorporate tighter system to prevent losses
6. Use retailing method to increase your sales. Expand your selling into multiple channels and bring in different ways of selling your products
7. Keep the right merchandise that your customers want in stock
8. Get back to your core products as you go with your retailer strengths. Outsource all your specialized needs to focus yourself on your core strengths.
9. You must adopt three ways to boost your sales – getting new customers, making your current customers to buy more often and making customers to increase the size of their average purchase
10. You must know how to make use of the system that you own today. Invest in technology that will come to your use in the long term, with the knowledge of its repaying itself.

The basic foundation for every successful retailer is to have “the right product at the right time and at the right location”.
How to develop marketing strategies
1. Do research on consumer
2. Give your focus on family values
3. Adjust the product portfolios
4. Adjust the pricing tactics
5. Give emphasis on core values
6. Maintain your marketing spending
7. Give support to your distributors
8. Stress market share
How to plan for economic recovery
Even when you are in the middle of a downturn, prepare yourself for the rebound. Start planning right now on how you would gain share and differentiate yourself from your equals. And in the meantime, make use of the slowdown to create relationships and differentiations that is even stronger with your customers.

Seven steps to survive the economic downturn

Peter — Sun, 08 Mar 2009 19:17:08 +0000

The present sluggish economy calls for fearless steps to survive in the crowded marketplace. Following are seven steps that I feel will keep you steady, in spite of any eventualities.

Step 1: Find The Real You
In the present time, it will do well to focus on your skills that you feel confident about. Put out the skills to practice to your customers and prospects. Hone your skills on something that comes to your help to the best possible use and become an expert on them. It may be that you own an ad agency on fashion, but it would do well at the present moment to build B2B websites. If you have a little skill on it, bring it to the best possible use.

Step 2: Make Use Of Your Differences
The present economic times calls for standing out for something instead of crouching under the economic turmoil. It is no use to keep on doing what you usually do as you cut back expenses and also see to it that you do not lose your business. However, standing up to something important is the right answer right now. Make use of your strengths to make the difference with your customers.

Step 3: Have Greater Social Network
Now is the time to strengthen your relationships to keep anchored in the economic downturn. Stay connected with your customers, reward them for their loyalty, lunch with them, and connect with them through different social networking sites. The present time calls for deepening your customer relationships to ensure the security and future of your company.

Step 4: Keep Your Core Values
One important point to remember at this juncture is to remain true to your core values. As you get with a prospect, try to be part of the new culture without losing your own culture with it. It can be a real deadly affair to get carried away with someone’s culture or demands and at the end find it difficult to find the real you. It would be better instead to look for what resonates within you and do not accept what you do not feel right. Otherwise, at the end of this recession, you may not identify yourself or your own company.

Step 5: Put Yourself On The Forefront
Put up what is different about your business to make your business make a difference and at the same time position itself perfectly. It is often good to go behind a good cause that puts you in the hero’s pedestal. You need to shake off your fear of pushing up the hill. Give others and see what you receive in return.

Step 6: Recast Yourself
Re-invent yourself with the changing times and with your customers. Conformity does not cast you differently. Updating your style, your advertising, your website and your thinking while holding onto your values are some of the easiest ways to the top. Stay true to who you are and then change your image to feel a new brand about yourself.

Step 7: ABC - Action, Belief and Courage
It is the fearless who overcomes the doubts about their values on the personal front as well as of their business during uncertainty by practicing the principle of ABC - action, belief and courage. Raise your hand now to make a difference in your business instead of wringing your hands. Belief can do wonders. Use your power to make others believe that you are indispensable and you will remain such.

Surviving In Economic Uncertainty

Peter — Thu, 12 Feb 2009 16:09:24 +0000

The present economic scenario has made everyone uncertain about the future of the marketplace. People are concerned about their job stability and 401Ks, given the economic state and the bailout plan of the government. Be it business owners, recent grads or entrepreneurs, there is a cloud of uncertainty looming over everyone about tomorrow. People like to know what lies ahead in the days to come.
As an entrepreneur, I can fully understand and appreciate the thought of revenue that concerns everyone. However, if few things are kept in mind, we can find ourselves better equipped and protected in these uncertain times.
The first thing to keep in mind for every entrepreneur or for that matter everyone is “not to panic”. It is found that in most of the times as we panic, we make a wrong decision. In this regard, one should find the importance of emotional intelligence, which in simple terms means separation of emotion from one’s decision making process. At the time of making decision, one must not panic and think about decisions as well as plan. One must know that it is a buyer’s market and there are different advantages available for everyone. One should make wise financial decisions as well as wise decisions about their career.
This brings us to the next important decision of keeping your “Resume updated”. There is every possibility of meeting someone who would come as a help for you. So, keeping your resume updated is a good way to remain prepared for these unthought-of opportunities that you may come across in your day-to-day life.
You also need to keep “researching for potential opportunities” that could come your way. This might be in the form of other job opportunities. For entrepreneurs like me, this means finding new client contacts for developing your business. You should not be content with what you have but keep on expanding your base as well as network while keeping your options open. As nothing could be taken as guaranteed, there has to be different options available to you. Mainly so, as presently 6 to 9 months are required to get a new job, that makes it important to make a constant search of the different opportunities that are available and understand them.
Due to economic downturn, a misconception exists that there are not enough availability of jobs and bleak job prospects. The growth in other areas is taken to be not happening at all. However, the ground reality is quite different. A lot many companies are stable and still posting record profits. It is these companies that one should consider to build their career by applying in multiple areas.
Another means of equipping oneself in these uncertain times is to “go to different network events”. However, the point to remember is not to be pushy. It is found that people in network event are really forceful or say such thing as if they are looking for a job. At any networking event, one must try to meet the right people and make these people to remember you. Make these people interested in talking to you. You should not ask for anything to anyone.
In such events, ask people about how you could come to any help to them. By talking to people one can learn about the businesses they do and also the happenings taking place around their fields of concern. This way, one can develop a synergy with these people and find ways to develop your interests.
The last but most important point to consider is to “believe in yourself”. You must remember that you have talents, gifts, skills and abilities. You must always remember about these qualities. After all, it is YOUR ATTITUDE which is your strongest asset.

The Many Benefits Of Self-Employed 401 (k) Plan

Peter — Wed, 28 Jan 2009 11:18:05 +0000

The new rules of the Tax Relief Act of 2001 provide enough reason to cheer about for small business owners. It makes sense to open a Self-Employed 401 (k) Plan that not only provides tax breaks and savings for the future like most retirement plans do, but also provides the following additional benefits:
• The self-employed 401 (k) plans are easy to set up with no administrative hassle and are not expensive to maintain.
• You have the freedom to decide whether to make contribution and the amount of contribution.
• You get the benefit of tax-deferred contributions, going up to three times the amount available with other types of retirement plans.
• The loan option of 401 (k) can be used to get loan amount of up to $50,000 or one-half of the account balance in 401 (k). One can spend the loan amount for any purpose and no penalty is charged if the amount is repaid back on time.
• The facility to consolidate assets into Self-Employed 401 (k) from the traditional IRA or other retirement plans.
The 401 (k) can be opened by business of any type, and with no employees, and is known as Self-Employed 401 (k) or Solo 401(k). The business can be a newly started one or an old business and can be of sole proprietorship, partnership, LL.C or a corporation. The plan has to be set up within 31st December for availing tax deductions for that tax year.
A Solo 401 (k) plan can be established by a self-employed business owner with one-person administration. This type of plan helps self-employed businesses with no employees except spouse to start a structured retirement plan.
Self-employed 401(k) plan could be established by any sole proprietor, corporation, partnership or S Corporation. Anybody owning a business can make contribution into a Solo 401 (k) plan, the amount being 100% of total compensation or $42,000, whichever is less. There is the option whereby participants can defer a maximum compensation amount of $14,000 along with 25% of the total profit sharing amount into the plan.
Owners of Self-employed business which is 50 years or more old can also become eligible for 401 (k) plan by contributing an additional $4,000 every year through catch-up provision. Both Solo 401 (k) and Self-employed 401 (k) provide high contribution limits with practically no administration and no costly tests of discrimination. The rules for both Solo 401 (k) and Self-employed 401 (k) are quite relaxed.
If before starting your own business, you were having an IRA or some other 401(k) plan, there is the rollover option for these plans into a Solo 401(k). The plan provides one to decrease or completely stop their contributions at any time.
However, the eligibility requirements are quite strict for establishing self-employed 401(k). Most investment companies do not offer self-employed 401(K) Plan and those who do provide this type of plan offer limited investment options.
The rules are such that the moment a single employee is added to the business other than the spouse, you have to convert your Self-employed 401 (k) plan into the traditional or the simple 401I (k) plan.

Points To Consider For A Successful Business

Peter — Wed, 28 Jan 2009 10:58:33 +0000

I have often found people starting a business of their own with passion, putting in a lot of money, time and resources into it, but ultimately failing to see it succeed. What makes a new venture to succeed or fail in spite of all the effort and hard work? I have found the following 12 factors to be the reasons behind the success of any business venture.
First of all, one must have a clear vision for the short-term and long term of the business you are about to start. This will result in giving a sense of purpose and the much needed focus. This will also inspire other employees as well. They will respond to the need. You can now set the strategies as well as goals and specify a time frame to achieve it.
Secondly, hire outside assistants to help you in your venture, in spite of you being a solo entrepreneur. It is worth to hire quality assistance in this regard, even if that means a higher price for you. Make the hired people feel the importance of their work towards the development of the business.
The third important point is to remain focus on what the business stands for and spend your time, resources and energy on making your business a successful and profitable entity. Your focus should not waive for a single day.
The fourth important point is innovating new strategies for running your business. As your business has its unique features and problems, finding solutions for your business will be the best strategy for you. It may be that the product your business produces is the same as that of many others, but providing a unique selling proposition for your product will make it stand apart.
The fifth point is to keep a realistic expectation for your business. It is found that most of the small business fails within five years of its start. It may be that there may not be any sale for a month or in the first six months. It must be made clear that even with the best hope, the reality may be worse. So, be prepared for it.
The sixth consideration is to know the market well. This includes the climate of the market, trends of users, newer innovations in technology, and the economic scenario which are important indicators of how your business fairs. These considerations will help you to know in advance the potential threats as well as opportunities. You can then prepare yourself better for any eventualities.
The seventh important point to consider is to keep your expenses and spending low and in sync with the economic health of your business. Do not spend on incomes that may come in future. Spend on what really needs to be done and let go not-so-important ones.
The eighth consideration to remember is to bring in a business partner or investor into your business. This is one of the most important decisions that you could make for making your business a success. Look for a business partner with whom you have compatible mindset as well as entrepreneurial styles. And make your agreement with the business partner in writing.
The ninth point is to set a culture of success in the organization. Make the employees do things that are aimed at attaining the goals of the company. The tenth important need is reviewing and revising your business strategy for better performance.
The eleventh consideration is to keep going your learning process so that you get the necessary confidence and inspiration to fulfil your dream.
The twelfth and important need for you is to be open to changes that may be required for running your business.

Tips On Getting Good Rates For Self-Employed Health Insurance

Peter — Wed, 28 Jan 2009 10:51:07 +0000

It is often found that self-employed persons often err when it comes to purchasing their own health insurance plans that are rightly suited to their needs. I am a self-employed and also involved in working as a health insurance agent for the last twenty years. I would like to share some tips that I learnt over the years working as an agent. The tips provided are well-tested to give the best coverage options when it comes to purchasing health insurance within one’s budget.
Tip 1: Keep Your Health Insurance For Sometime
The best way to ensure your health insurance after leaving job is to continue the same coverage using the rights provided under COBRA of 1986. The COBRA rules make you to continue the coverage plan after leaving your job for a period of 18 months at group rates, provided there are 20 or more people working at the company that you left and you were not sacked for any negligence of duty or incompetence.

However, the cost of coverage for health insurance for a self-employed, which is the full cost, will be much higher compared to what you were paying as an employee.

Tip 2: Sign Up For The Least Expensive Plan
It will do well to go for the least expensive health insurance plan at the open enrolment period close to departure date, when it comes to sign up for yourself. This will help you to pay a lower cost premium for yourself under COBRA.

Tip 3: Don’t Waste Time
The law guarantees you health insurance access till a new policy is found by you within 63 days after the benefits of COBRA ends. If no health plan is found within this time, your application for health insurance may be rejected or else there could be exclusion of pre-existing condition in the new policy for a maximum period of one year.

Tip 4: Marry A Working Person
Marrying a working person has the advantage of joining the plan of the spouse. This way, the cost of paying premium to you will be less compared to most of the other options that includes COBRA.

Tip 5: Check-out Online And Other Sources
It will do well to go through online resources to know and compare health insurance plans offered in your area as well as the financial status of the insurance companies. Know the specific rules that apply to you, especially if you or someone in your family has any pre-existing condition.

Tip 6: Look For A Good Health Insurance Agent
If you are planning to buy self-employed health insurance, search for a reputable health insurance agent. You can interview different agents and find out about the price and coverage of the plans they offer before selecting one for you.

Tip 7: Pay More Now To Pay Less Later
A good way for lowering premiums for the health insurance in spite of good coverage for the self-employed is to look for a plan that has high deductible and at the same time go for tax-free HSA. The pre-tax money that you deposit in the HSA could be used to meet medical expenses which the health insurance does not reimburse.

Tip 8: Join Any Professional Employers Association
As you begin hiring employees, it will do well to join a professional employer association so that you get health insurance as well as other services through them. You find a group that is right for your needs.