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Tips And Stories To Help You With Managing Money

Small Business Tips From Entrepreneur Kirk Taylor

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Serial entrepreneur Kirk Taylor
Kirk Taylor, Serial Entrepreneur

Entrepreneur Kirk Taylor has been successful at building many companies from scratch. As a serial entrepreneur  with experience stretching back 34 years ago, he is happy to share what he has learned to help  small business owners. Although success and building new companies is somewhat akin to riding a roller coaster. Ups and downs are bound to occur.

Working Hard

His first company project was launching and building  LimoLink, a website that catered to transportation needs for people all over the world who were seeking elegant rides.  A second company was built after that experience. It was successful enough to produce revenues of $20 million annually within a three year period of time.  The company was recognized as one of the fastest growing private companies by INC magazine. He was also awarded Entrepreneur of the year for small-midsize companies in Iowa.He reveled in sales tallying in the neighborhood of $20 million in three years.

He left the company in 2002 eager to move on to bigger and greener pastures and start on a new project.  “I’m not a CEO-type guy,” he says. “I like the starting-up phase.”  But he was wise enough to take what he’d learned in his first experiences with him, and creating new opportunities in other niches.

Seeking Opportunities

Catching on quick to an opportunity and moving double quick to get it functional is what real entrepreneurs do, Taylor says.

Kirk Taylor knew a good thing when he saw it.  “It” was the weekly ABC Shark Tank Show. Entrepreneurs who have what they are convinced is a good business idea have an opportunity to try to raise capital if their idea is appealing to the panel members.  Panel members are five recognized business geniuses who are millionaires, and billionaires ready to invest in new ideas. The panel members listen to the pitch, then offer (or don’t offer)  partnerships providing money and sometimes expertise to the entrepreneur.

Taylor assumed, rightly, that the show was going to attract a huge audience of people itching to get into business or to improve a business already established. He piggy-backed by creating a blog focused on Shark Tank’s entrepreneur interviews. Communication then opened up between Shark Tank producers and Kirk.

One of the people who has been very helpful to him is Barbara Corcoran, one of the Sharks who swims weekly in the ABC Tank.  On his blog, he interviews contestants of the show and publishes those interviews.  The blog has become very popular,” he says. “She has given me scoops regarding things that are likely to happen, but we have no direct conversation. It’s a trust relationship,” he says, “and I work hard at keeping that trust. I’m careful not to abuse it.”

Be Realistic

Over his years as a successful serial entrepreneur, Taylor has learned a thing or two (or a whole lot more) about the relative roles of idealism and realism . Without the dream, nothing happens, “But there has to be realism, too.” Most entrepreneurs, in his very educated opinion, are strong-willed people who learn to recognize that magic spot where idealism has to be set aside for the sake of facing up to the real business world.

Get Funded

The barrier that trips up many would-be businesses short of success is the money issue, he says. “Every entrepreneur has to raise capital.”  Trying to go solo on that challenge without any understanding of the  process has sunk many a newcomer to the competition. He suggests involving others who know the ropes and can find the most suitable investors to back your idea. Often the entrepreneur has friends with expertise. “Work them all.”

Small Business Mistakes

His own biggest mistakes in building companies, he admits, have been in turning too much control over to managers. When he associated himself with people who had been successful in big companies, the tendency then became to let them supplant him at the top of the decision-making pyramid. “That’s been a real disaster,” he says. It’s the entrepreneur’s life, financial well-being and ability to keep expanding that’s on the line — too much personal investment to turn it over to someone else without restraints, he has learned.

Goals

The most important goal, according to Kirk, is to get to a point in life where you and your company are completely debt free. In 2008, he turned to affiliate marketing, building yet another new source of income. “I like it,” he says. He sees “huge potential in sales with relatively low start up expenses.” He likes the independence it offers and the feeling of not being bound to others when decisions need to be made.

Should They Sell Their Home?

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Personal Finance and Home BuyingPeople get into all kinds of financial problems when they are unable to assess accurately what their incomes will allow them to buy. Examples of this are plentiful when you read forums dealing with saving money and personal finance.

In a recent forum thread, a young woman asked for advice about whether she and her husband should sell their home because they felt they were in over their heads. They have been in their new home for seven months and it dawned on them that they were having a hard time making ends meet.They explained their situation, including the current income and their living expenses

She stated that she and her husband were both gainfully employed with a combined income of $130K. She said that they had a decent income, but they felt “poor.” Their net income was $7K per month with $4,200 going towards their mortgage payment. Besides their mortgage payments, their debt was about $55K in both student loans and repayment of the loan money they borrowed to get into their home. They weren’t going into the hole every month, but they had no breathing room. They also have two very young children for whom they have to pay childcare while she works. Adding in their other expenses, the total expenses for the family is $6,770.00 per month, leaving very little room for savings or emergencies.

The important thing here is that their mortgage payment is 60% of their net monthly income. That is the main issue. The lender loaned money to them when they shouldn’t have. Somehow, we as consumers think that if a lending institution is willing to loan us the money we need, then why not do it? Even after December 2007 through June 2009, the worst recession in American history since The Great Depression, banks apparently are still loaning money to people when it is not in anyone’s best interest but the banks.

To get back to the savings forum thread, people advised the couple to cut back on spending and basically sell the house. The penny pinching that could be done by the couple is probably not worth the time or effort.

So how did this couple miss so many important economic lessons? First, somehow they felt “rich” because of their incomes. They really were erroneous in thinking that and should have gone to a good financial planner well before they started thinking about moving to their new home.
They should have been able to predict their monthly expenses prior to moving. Had they done that, they may have decided to do something different with their money. The big red flag that they missed was knowing that they had to borrow money for their down payment. That alone should have put the brakes on this home purchase.

What makes one rich is creating a strategic long term plan and then following through with it. Getting good financial advice about any purchase that will impact your for over four years is a good idea. Financial education is a life-long process and luckily we can learn from our own mistakes and benefit from the wisdom of others. What do you think this couple should have done?

20 Ways To Save Money This Summer

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Sometimes when the thermometer goes up, your living costs do likewise. A bit of careful planning and creative budgeting can keep costs under control while adding to your enjoyment of the season. Here are twenty ways to cut costs and make summer your favorite season of the year.

  1. Turn off the air-conditioning when it’s feasible, depending on where you live and how hot it gets. Keep tabs on weather reports and if there is any cooling forecast, make adjustments. Open windows to take advantage of cool air in the early morning and evening and use portable fans or ceiling fans to cool small areas. If you really need an air conditioner, the Department of Energy suggests an Energy Star model with fan and programmable thermostat. Mount air conditioning units in shaded windows and keep electrical appliances, including lamps, as far as possible from the unit.
  2. Cook outside. Stove tops and ovens create lots of heat that has nowhere to go. Barbeque cooking is particularly appealing to many families any way, and a huge variety of recipes is available online. Try something new!
  3. If your situation allows, dry laundry outside. Not only will you be spared the price of gas or electricity to do the job, you may find your laundry has a nice fresh air scent. Small drying racks are readily available and may be all you need if your family is small.
  4. Replace your air conditioning filters. A dirty filter can increase cooling costs by restricting airflow, causing longer run times and higher costs. Filters are not expensive, so change them frequently.
  5. Take advantage of summer-end sales to prepare for the next gardening and yard work season. Sales generally begin on landscape plants, bulbs and gardening tools just as the height of summer passes.
  6. Instead of investing in summer clothing that you’ll wear for a short time, hold a clothing exchange with family and/or friends. If you prefer new, the sales on sundresses, shorts, swimsuits and other summer wear usually begin in mid-season, giving you plenty of time to tog out in your new duds before autumn begins. Watch for sales on non-clothing items such as sunglasses and tote bags.
  7. Don’t think you have to leave town for entertainment. Visit the websites for local pools, hiking sites, sports venues (you might enjoy local youth sports as well as you would the majors.) The tendency is to overlook community theater and local sites such as zoos, aquariums, art galleries and other opportunities for family outings. If there is a university in your area, check to see if they offer special opportunities for children or youth. You can Google “free events,” adding your city, for a list of local entertainment opportunities. Many communities have home-town celebrations in the summer and you could spend weeks hitting fun-filled local events with very little overlap.
  8. If an out-of-town trip is on the summer agenda, check with the motel or hotel to see if they provide in-room refrigerators and microwaves service so you can cut down on the number of restaurant meals. Stock up on microwave meals, popcorn, etc., to pack for the trip.
  9. Take short showers to conserve on water and energy. Less than 10 minutes, ideally with a low-flow shower head, can save up to 20,000 gallons of water a year, according to the Environmental Protection Agency.
  10. If you enjoy expanding your education, summer is the time to do it. Many school districts, colleges and universities offer half-price courses during the summer season when many of their regular students take a break. You’ll likely find yourself with other lifetime students who are there to learn in earnest.
  11. Instead of laying out big bucks to keep the ice cream coming, consider treats from frozen fruits pureed and re-frozen in ice pop molds, plastic cups or in a bowl to dip out as needed. Throw in a bit of yogurt and increase the nutritional value. The same holds true of the expensive iced tea that you can stockpile at great cost. A simple recipe for “sun tea” calls for four large tea bags emptied into a pitcher or jar full of water. Let is stand outside for three hours. When you want to use it, dilute with water to taste, add a little lemon and sugar and voila! Refrigerate what’s left in clean soft-drink bottles . Ditto iced coffee, which you can make by freezing left-over coffee in trays then blending with liquid creamer and ice cubes.
  12. Plan a yard or garage sale. Many bargain-hunters take advantage of summer weekends to snarf up items of interest. De-cluttering your house is easier when the weather is warm. You may be able to interest neighbors, friends or family in a joint sale that is likely to attract more potential buyers.
  13. Head for a farmers’ market if such are available in your area, instead of the grocery store. Farm-fresh produce such as spinach, cucumbers, tomatoes, string beans and peppers make a super salad for a warm-day meal at a price much below what you’d pay at the store. And if the farm outlet offers flowers to give your house a summer pick-me-up, so much the better.
  14. The fireworks season is dead ahead, but you can save money and avoid products that are banned in many communities by celebrating with reusable rocket balloons (often selling for 79 for $20) or glow sticks that may spare little fingers from sparkler burns and cost, in general, just a dollar each. Most communities have fireworks displays that you can enjoy for free without the hazards of firing off your own.
  15. Have a “vacation” at home. Plan a themed party, such as a trip to Hawaii for instance, and involve all your family in making decorations and choosing music appropriate to the theme. Grill fish or chicken with pineapple and choose island side dishes. End the evening with a hula contest, with the winner walking off with the grass skirt. Make it a family challenge to see who can come up with the most fun theme for the next vacation.
  16. Make it a season for ordering checks online at Coolchecks.net Save up to 50% on your orders.
  17. To avoid costly first-run movies, plan on the matinee performances. Swap movies with friends and relatives. Many libraries allow you to reserve new DVDs, If you want to get into movies in a big way,and really enjoy the old-time productions, consider looking into a 16-mm film projector and old movie reels. They’re available on ebay.com
  18. Instead of heading for expensive swim sites, invest in a slip-n-slide plastic strip and use the garden hose to keep the kiddies entertained. Small pools can be as much fun for tots as more-threatening large pools. But even with small pools, be sure little ones are supervised.
  19. The refreshing but expensive iced tea and coffee drinks that you spend big bucks for are easy to replicate in your own kitchen. A simple recipe for “sun tea” calls for four large tea bags emptied into a pitcher or jar full of water. Let is stand outside for three hours. When you want to use it, dilute with water to taste, add a little lemon and sugar and voila! Refrigerate what’s left in clean soft-drink bottles. Ditto iced coffee, which you can make by freezing left-over coffee in trays then blending with liquid creamer and ice cubes.
  20. Walk instead of driving. With the cost of gasoline across the country heading up and down and mostly up, take advantage of warm weather to do as many errands as possible without driving. Whatever you can do in the early morning or evening will provide the most comfortable temperatures when you start off on foot.

Foreclosed Property A Good Buy? Check Closely Before You Jump

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Foreclosures and short sales have been an unhappy downside to the American housing market in recent years. For those looking for a bargain, the temptation to snatch up something at a greatly reduced price makes the time seem ripe. But there are some precautions people in that mode should note carefully.

On the plus side, many distressed properties are selling at 5 percent to 10 percent below today’s market value. That’s as much as 50 percent or more below the peak prices of five to six years ago. Coupled with the current low interest rates, that’s enough to attract buyers with enough assets to take the plunge. But experienced Realtors advise caution. There are some common pitfalls in these deals. Some bargain-hunters have found that their offers on even listed short-sales go unanswered.

Banks make loans. They don’t sell real estate and even though they’ve had several years of dealing with property on which they have foreclosed, they still aren’t good at it, many prospective buyers complain. Weeks, even months of frustration may be ahead for those bent on such a purchase.

For one thing, lending institutions are bogged down with the sheer numbers of properties they have had to reclaim and the backlog can be a frustrating factor for the would-be new owners. It could take up to a year to consummate a deal. You have to be lucky to hit one of the “waves” that occur when the institution has worked through a number of problem loans and is ready to market a batch of properties. These sellers also differ in their approaches to ridding themselves of foreclosed properties. Some are in a hurry to sell and put on a price gauged to get the property sold. Others may pad the price in anticipation of being asked to make concessions.

Before you write out your check, listen to some tips offered by Realtors to help you maneuver the winding path to foreclosed property ownership:

1. Don’t let the posted price be the only criterion on which to base a decision. Consider all the factors to avoid belated sticker shock.

2. If what you want is a condo, check with the homeowners’ association and be certain it has adequate reserves and is certified by the U.S. Federal Housing Administration. Without that certification, would-be buyers relying on FHA-insured loans, would not accept the purchase. Some other types of loans have the same guidelines. Your resale potential could take a real nosedive. Be aware that some condominium complexes charge very high home-owner fees, which should be factored into the long-term cost.

3. Don’t rush into anything. Sometimes that great asking price can be a cover for significant problems with the property. If you lose what you saved on the bottom line through costly repairs, you haven’t benefited at all. Property that has been left to languish without any upkeep might be targeted by its political jurisdiction for fines for weeks, trash , unpaid utility bills, etc.. As the proud new owner, those are part of your deal. Some homeowners facing foreclosure feel free to walk off with anything that isn’t firmly attached.

The lower prices of housing in today’s market compared to what they were at the height may trip you up if you buy a short-sell home and then want to refinance. The lender may refuse because the property at today’s values is less than it was before. There also is the problem of multiple loans on a property. Second and third mortgages can muddy the waters pretty fast.

Banks that went along with the extra mortgages a few years ago are not nearly so eager now. All of the lenders who have a money interest in the property have to agree to a short sale. Best to become involved after all those items are settled.

Unless you are auction-savvy, don’t risk that route. Also be aware that you aren’t the only bargain-hunter in the market. Expect multi-offers situations and be prepared to dicker aggressively.

Some experts in the field are aware that there are bargains to be had, but unless you go into the short-sale/foreclosoure market with your eyes wide open, you may find that your “good buy” really meant good-bye to precious assets.

Arm Yourself Against Fake Check Scams

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Fake check scammers never rest. They actively look for ways to victimize people. And too many unsuspecting people fall for it, losing money to their multi-billion-dollar schemes. The only way to avoid becoming one of the victims is to learn to recognize and avoid such scams.

Fake checks look real, often real enough to fool bank personnel. Phony cashier’s checks or those designed to look like they are from real businesses often are actually “dummied up” copies of legitimate checks, created without the knowledge of the companies.

The National Consumers League Internet Fraud Watch offers these suggestions to help you in your effort to stay scam-free:

Beware of any transaction in which you are asked to pay by check with the guarantee that some of the money will be wired back to you. Chances are you’re walking into a scam.

There are many variations on the ploy. Someone may offer to buy something you have advertised for sale. They may offer to pay you to do work at home. They may hold out the promise of an “advance” on a sweepstakes you have purportedly won. They may offer to pay the first installment on promised millions that you’ll receive for allowing a party to transfer money from a foreign country to your bank “for safekeeping.” The pitches are many and they all sound feasible.

Scammers have methods of finding potential victims. They check newspaper and online advertisements for personal listings of items for sale. They look at online job sites to find people seeking employment. They place ads with phone numbers and/or email addresses so people can contact them. They may even send emails or faxes at random, expecting that some recipients will be gullible enough to swallow their bait. Claiming to be in a different country, a scammer may tell you that making a transaction internationally is too complicated. They promise that someone in the United States will send you a check. Don’t believe it.

Or they may try to involve a third party, saying this third person owes them money and they will have that individual pay you for what they have purchased. They dangle the promise that the check from this third person will exceed the sale price of the merchandise. They ask that you deposit this third party check, keep what is owed for the merchandise and wire the balance to them.

If you have agreed to work at home, the scammer may claim you’ll be processing checks from “clients.” They want you to deposit these checks and wire them the money after subtracting your pay. Another twist is for the scammer to “overpay” you “by mistake” and ask that you return the excess. Either way, you have lost. The sweepstakes and foreign money variations often include a request of money for taxes, customs charges, bonding fees or legal costs, which would seem feasible if the transaction were legitimate.

Under federal law, banks must make funds available to you shortly after deposit — one to five days in most instances — so you may be able to draw on fake checks very soon. But if it’s a fake check, the responsibility rests with you, just as if it were bona fide. You most likely will be informed that there is no substance behind the check you deposited and the amount will be subtracted from your balance. The process could take several weeks, but the result is inevitable. The financial institution relies on depositors to determine the risk of what they deposit. If a check is no good and the account does not contain enough to cover it, the institution my take money from your other accounts to make it good, or expect you to make up the difference.

It is not unheard of for law enforcement to bring charges against the victim because there is every appearance that they have defrauded the bank. This is the ultimate double-whammy.

The bottom line, according to the Consumer League’s guidelines, is that there is NEVER a legitimate reason for anyone with whom you are dealing to ask you to wire money back to them. If you are selling something or providing a service for someone you do not know, insist on a cashier’s check for the exact amount involved, preferably from a local bank or one that has a branch in your area.
Do not deposit a check if you believe it is fake. Report it to NCL’s Fraud Center, www.fraud.org. The information will be forwarded to the appropriate law enforcement agency.