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Randy Elgin
10999 IH10W; Ste 175
San Antonio, TX 78230
(210) 232-2310
How to Survive the Recession ... Stronger Than Before
As bad as it is out there, it's important to recognize that this is a time of tremendous opportunity.
Get my free report, "How to Survive the Recession ...Stronger than Before" by replying to this email or by calling the number above.
Quick Quiz
Each month I’ll give you a new question.
Just reply to this email for the answer.
What actor is known for linking to other actors through chains of movies they've been in together?
Worth Reading
Selections from the best articles seen online this month.
6 Social Networking Faux Pas to Avoid
From Inc.com
It doesn't matter how charming you are in the real world. Here are 6 social networking mistakes you must avoid to save yourself and your business a lot of embarrassment.
Read more
Switch: Don't Solve Problems -Copy Success
From Fast Company
An exclusive book excerpt by Fast Company columnists Chip Heath and Dan Heath, best-selling authors of Made to Stick.
Read more
The Lesson From Two Lemonade Stands
From Seth Godin's Blog
The whole time that she's squeezing, she's also talking to you, sharing her insights (and yes, her joy) about the power of lemonade to change your day.
Read more
Have You Had These Seven Small Business Epiphanies Yet?
From Hello, My Name is Blog
Shortcuts are stressful, expensive and time intensive. Shortcuts cause stress, rarely succeed and often backfire. They never go unpunished. They are a refuge for slackers and a lazy man's panacea.
Read more
BOOK REVIEW
Outrageous Advertising,
by Bill Glazer
You're probably heard of the formula for a successful advertisement: AIDA - attention, interest, desire, action.
The thing is, however, without the first A - the attention - the rest of the formula is worthless. Without getting someone's attention, you're never going to arouse interest, let alone action.
That's where Bill Glazer excels. He's made a career - in his menswear store and later as a marketing consultant -creating ads that get attention.
They do that by cutting through the clutter - and they do that by being outrageous.
Now, some of the ads he shows (and there are many) in this book might make you uncomfortable. Many of them are, well, quite outrageous.
But the thing is, they work. They get attention - and they make sales.
The greatest value you'll get from this book is its examples - successful ads you can twist to suit your own needs. Try one as a dare - see how outrageous you can be!
Wisdom
Quotes by...Larry Page
"The ultimate search engine would basically understand everything in the world, and it would always give you the right thing. And we're a long, long ways from that."
"If you can run the company a bit more collaboratively, you get a better result, because you have more bandwidth and checking and balancing going on."
"We don't have as many managers as we should, but we would rather have too few than too many."
"Basically, our goal is to organize the world's information and to make it universally accessible and useful."
"The Star Trek computer doesn't seem that interesting. They ask it random questions, it thinks for a while. I think we can do better than that."
"We have a mantra: don't be evil, which is to do the best things we know how for our users, for our customers, for everyone. So I think if we were known for that, it would be a wonderful thing."
Larry Page is a co-founder of Google.
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REAL ESTATE
The Secret to Figuring Out Purchase Values Understanding and interpreting capitalization rates in commercial real estate are important for an investor who is trying to determine the purchase value of a building or business.
Investors have criteria they use to determine where to invest their real estate dollars. Having the tools to determine whether the investment meets those specific criteria is essential to successful real estate investing.
The capitalization rate is the relationship between the annual net operating income and purchase price, in a sales scenario. The rate is determined using a mathematical equation that estimates the value and rate of return on investment.
Financial institutions also use capitalization rates when determining the maximum mortgage value for a specific investment.
The value of a property is determined by dividing the net operating income by the rate at which you expect a return on your investment. For example, if a business has a net operating income of $25,000 and expects an annual return on investment of 10% of the value, then the business's value should not exceed $250,000. Based on this scenario, the initial investment value would be recouped in 10 years if no additional expenses were incurred during that period.
Real estate and mortgage professionals use a variety of formulas to calculate capitalization rates for specific investments. The example above is only one method that can be used to compare values to a specific investment criteria. You can tailor your search to meet your business needs by discussing your investment expectations with your real estate professional.
MARKETING
How Local Businesses Can Tap Into the Power of Google
 Many people search online to find and evaluate local businesses before patronizing them.
In fact, when seeking out services such as pest control, home maintenance and personal services, up to 80% of people use Google or another search engine to check out and compare competitors.
An important first step in getting local folks to pick up the phone or walk through your door is to claim and verify your business in the Google local business center at www.google.com/local/add.
Make sure your business listings are accurate and up-to-date with various data providers such as InfoUSA, Localize and Yellow Pages.
Also ensure that your business is properly categorized in Google Maps.
Search engine spiders crawl the Internet daily looking for keywords and word associations.
Be sure your site has relevant content and a high keyword density ratio.
Use local place-names (city, state, region), nicknames and words with local appeal in your key phrases.
References on other websites and e-zines help boost your Google appeal, as do both inbound and outbound links. Testimonials, customer reviews and other online mentions can enhance your Google ranking and attract the attention of would-be customers.
Revise, update or add to your site regularly. One way to do this is with a blog page that allows customers to interact with you.
Answering questions, dispensing professional advice and resolving problems position you vis-à-vis your competitors and are great conversion techniques.
Consider using coupons on your website to promote your products and services. They are good tools for conversion and a reliable way to track business generated by your Google listing.
FINANCE
Tips for Collecting on Your Accounts Receivable
 A receivables aging schedule reveals patterns of delinquency and shows where you need to focus your collection efforts.
The longer accounts receivable (AR) languish, the more likely funds are to become uncollectible.
Accounts receivable are sums due from customers from the time of sale until the receipt of payment.
The time period and the terms of every receivable should be specified clearly. Terms can be stated in various ways, such as:
- Net 30 days from invoice
- Net 15 days from shipment
- 1% 10 days, net 45 days from invoice
The first term calls for payment within 30 days of the invoice date. The second term indicates that payment should be made within 15 days of the shipment date. The third term offers an incentive for early payment; for example, a 1% discount off the invoice amount if payment is made within 10 days of the invoice date. From 10 to 45 days, the customer pays 100% of the invoice.
Receivables are a use of your funds. They are, in effect, loans to customers. While every business owner hopes and expects that customers will pay their debts promptly, the reality is that AR can sometimes linger on the books until they get old.
One simple method of assessing the quality of your receivables is to compare the actual collection period, known as days receivable, to the stated payment terms. The collection period and the terms should be about the same.
If the days receivable are significantly more than the sales terms, consider developing a receivables aging schedule to monitor who owes you money, when the debt was incurred and how long it has been unpaid.
Most receivables aging schedules are broken into 30-, 60- and 90-plus-day increments. Under each of these categories, total the amount due from each of your customers. This allows you to identify the problem customers and focus your collection efforts accordingly.
An aging schedule also enables you to manage your credit policies according to the standards of your particular industry. Many software programs provide aging receivables templates and/or formulas that are handy for small and mid-size enterprises.
It is important to stay on top of your receivables. The quicker you collect your AR, the better your cash flow.
Following are some tips for collecting AR:
- Be Prompt: If a payment was due in 30 days, follow up with the customer on day 31.
- Be Consistent: Send regular statements to customers who are behind in their payments.
- Offer Incentives: Consider offering a bonus or cash price discount for early payment.
- Be Specific: Spell out any late-payment fees and penalties prior to granting terms.
- Follow Up: Be aware of your customers' payments and debts. Send acknowledgments when accounts are paid.
- Be Realistic: In the final analysis, an AR aging schedule may indicate that it's time to sever your relationship with a customer or resort to some other type of collection method.
Picture credit.
REAL ESTATE
How Investors Can Deal With Contaminated Sites
Decades of industrialization and rapid growth have left soil and groundwater contaminated at thousands of sites across the U.S.
Cleanups are under way at many locations, and growing public concern over the health effects of a wide variety of contaminants has driven the federal government to create a more stringent environmental policy to deal with these issues.
Investors and business owners must therefore be aware of how to deal with the impacts that arise from environmental contamination.
Known contamination from a spill is most easily dealt with. For example, when a tanker truck rolls over or a storage tank valve fails, it can be quickly identified and reported to the local department of natural resources (DNR). Discovery through analysis is the most frequent way for historic or older contamination to be uncovered.
Field measurements are taken in order to analyze the extent of groundwater and soil contamination. This is the preliminary work needed to form a remediation plan. Regardless of the method used to determine the extent of the contamination, it needs to be reported to the local DNR immediately.
A qualified environmental professional should be chosen to formulate a plan of action to deal with specific site contaminants.
In recent years, the legal and financial consequences related to environmental problems have grown exponentially. Investors and business owners must realize there may be a need for legal representation as a result of liabilities from environmental hazards found in soil or water.
Clearly defining the issues will help in the selection of professionals required for the cleanup. Specialized environmental services may be required for soil, water and air testing and detailed design, construction services may be necessary, and laboratory and engineering expertise may also be required to remediate issues. Storage tank removal requires different expertise than does asbestos abatement.
The roles of various consultants need to be clearly defined, and firms need to be carefully selected. Select the firm that best meets your environmental and corporate needs, and then negotiate the fees.
Once an agreement is finalized, work can begin.
A team approach is essential to dealing with any environmental issue. The contractor may be called upon to do the physical removal of tanks or soil and make structural changes to the site to prevent future contamination.
The nature of the environmental impacts may require laboratory testing to determine the extent of cleanup required and the long-term impacts on the surrounding area.
The cost of correcting environmental issues is often prohibitive to investors considering the purchase of an industrial site. The burden of remediation will most often fall to the property owner.
Avoiding the problem is not an option due to the costly legal, financial and environmental ramifications that can result from contaminants.
By following a timely, measured approach, business owners can protect their investment and secure a future that generations to come will enjoy.
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