The Truth About What a Buyer Really Wants When Purchasing a Business

Imagine you are going to take out a loan out from a bank and all your personal assets are going to be used as collateral and you will be putting a large sum of money down to buy a business.

Would you buy just any business or would you be particular about the business you bought?

Truth be known,buyers are particular and they are more particular today than ever before.

When reviewing a business, today’s buyers are looking for stable, solid, investment. They are quick to walk away if the information and numbers are not to their liking.

So what do buyer’s want?

This is not an easy answer. Buyer’s requirements change based on the market. Depending on the interest rates, availability of financing as well as the economic mood, the buyer may be more or less tolerant of risk.

Interestingly, often business owners think,”My business is a gold mine for the right buyer!”

Seller will often try to convince a buyer that with a little marketing you could make a fortune with this business.

The question of course that a buyer asks is: “Well, Mr. Business Owner, why haven’t you made that effort”?

Today’s buyers are not willing to pay the business’s potential. Business owners must take those steps themselves, which not only will increase their revenues and profits in the short-term, but will greatly improve the value of their business.

What buyers really want is reduced risk.

They want assurance that the business they buy will produce the cashflow they expect, not a projection.

So, here is a short list of what buyer’s look for:

  1. A well-run, stable business.
  2. Clean books and accurate tax returns.
  3. A well-marketed business.
  4. Loyal customers.
  5. High customer diversity.
  6. Contracts (if applicable).
  7. Reasonable seller financing.
  8. Structed business for growth.
  9. Unique businesses with sustainable models.

When a business owner considers selling their business, the 3-4 years before selling should be the best 3-4 years the company has ever had. Sadly, it is often the opposite. The owner waits until the market shifts or until they just can’t do it any more and the books like the business is dying. This is not the type of business that yields the highest selling price.

Before business owners considering selling their business, they should evaluate the opportunities for improvement and make those improvements so that a new buyer only sees a well-run business and is willing to offer a higher price.

For more information on how to sell your business, download the free report 7 Critical Points Every Business Owner Must Know Before Selling Their Business.

Forestry Investments – A Review of Timber Investments for Retail Investors

We all use timber on a daily basis, in our houses, our furniture, our floors and our roofing, and institutional investors, hedge funds and pension funds have been investing in timber as a long-term growth asset and inflation hedge for decades. However, as more investors discover the little-known fact that timber investments have generally outperformed stocks, bonds, and commodities over the long run, there are now many opportunities for the smaller investor to participate in this alternative asset class.

The demand for timber is growing in line with an ever-expanding population, as the human race multiplies in number we require more timber for construction, yet at the same time, fundamental limits to the supply of natural forests limit the amount of timber we can grow and harvest for our own use.

Deforestation has destroyed 1/5th of the world’s forests since 1950, and new global legislation is in place to protect the forests that remain as they play a vital role in carbon sequestration and the ecosystem.

This imbalance between supply and demand creates an outstanding opportunity for investors to acquire assets in short supply and profit from undeniable fundamental trends of population growth and resource scarcity.

Investment Performance

The vast majority of return on investment generated by timber is derived from the biological growth in size of the timber source, from seedling to sapling to fully fledged tree. On average, a single tree’s volume of wood will increase by between 2% and 8% every year depending on species, age and climate. On a very basic level, this gives the tree owner more timber to sell as time passes, and hence generates a greater return in the long-term.

Aside from this basic observation there is more to consider, as trees yield a greater sale price when they grow into bigger product classes. As an example, a small tree would only be suitable for paper products or biomass for fuel, where a larger tree can be harvested for sawn-timber which will fetch dramatically higher prices per tonne and can be used for products such as plywood or telephone poles.

A study by Professor John Caulfield of the University of Georgia found that biological growth counts for more than 60% of total financial returns, whilst increases in the price of timber, and capital appreciation of the land account for the remainder of returns generated from a timber plantation.

This goes to show that it is an effective strategy to lease land on which to grow timber, as well as purchase outright as only 6% of profits are derived from capital appreciation in the value of the land. This also shows that fluctuations in the price per cubic metre or tonne of timber have limited influence on the overall performance of timber investments. The majority of return is generated from the growth in the size of the tree itself.

The standard benchmark for timber is The NCREIF Timberland Index, which increased 18.4% in 2007, versus a 5.5% rise for the S&P 500. In the long-term, the Timberland Index has outperformed all major asset classes including, large-cap stocks, International equities and corporate bonds.

Whilst small-cap equities have outperformed timber in the long-term, after factoring in risk (as reflected in the Sharpe Ratio), timber has exhibited the highest risk-adjusted returns of any major asset class. When compared to the S&P 500, timber has displayed a low risk characteristic. Since its 1987 inception, the NCREIF Timberland Index has fallen in only one year: – 5.25% in 2001, at the same time, the S&P 500 has fallen four times, including -22.10% in 2002.

One of the main reasons investors, especially large institutional investors, turn to timber, is the fact that the asset displays low to zero correlation with other assets, especially those linked to financial markets. It has been demonstrated over a long period of time that adding timber to a portfolio of investments has the effect of improving overall risk-adjusted returns. This low correlation reflects the fact that the primary driver of returns-biological growth-is unaffected by economic cycles.

Institutional Investor in Timber

In 2007, Jeremy Grantham, Chairman of Grantham Mayo and Van Otterloo, a Boston-based firm that oversees $60bn in assets, predicted the impending financial crisis, one of very few Investment Managers to do so.

At a conference in June 2007 Mr. Grantham announced that equities were overpriced to such an extent that the market was as risky as he has ever seen it. “The next few calendar years,” he warned, “look like a black hole as overpriced markets, dangerous leverage and a gigantic hedge-fund business collide with the house-building phase of the US presidential cycle, plus the contraction phase of a long interest cycle.” His prediction? He said he could see the Standard & Poor’s index falling 38% over the next two years.

He went on to say that Investors should allocate capital to timber investments as a stable and predictable asset with a low risk profile where returns are generated outside of any market. It is the only asset class in existence that has gone up in three out of the four major market collapses of the 20th century. It should be noted that Jeremy Grantham holds 20% of his personal investment portfolio in timber assets.

Institutional investors have recognised the benefits of timber investments for some time, Pension funds such as Calpers, led the way in the 1980s, however it was the big university endowment funds such as Harvard and Yale that saw the true potential and invested heavily in a move to diversify their portfolios globally. In 2009 the Harvard Endowment Fund invested $500m in forestry and carbon credits in New Zealand.

PKA, the DKK 114bn (€15.4 bn) Danish collective pension scheme for employees in the public social and health sectors, raised its forestry investments to about €335m by the end of 2007, raising its commitment to timber from 1.5 to 2% of total assets.

ABP, the €211bn Dutch pension fund made its first timber investment in 2007 with a $60m (€40m) allocation to the Global Solidarity Forest Fund (GSFF), which will develop three sustainable forestry projects in the Republic of Mozambique, in south-eastern Africa, and Angola.

Both the £1.5bn (€2.1bn) UK Environment Agency pension fund, the £31bn Universities superannuation Scheme and the £3.6bn London Pension Fund Authority are reviewing whether to inject money into forestry investments.

European Investment Bank (EIB), the € 26.3bn Ilmarinen Mutual Pension Insurance Company and seven medium-sized Finnish pension funds have all invested in timber via the Dasos Timberland Fund.

Massachusetts Pension Reserves Investment Management Board (Mass PRIM) decided to make a $500 million timber investment just three years after selling a $700 million section of its timber portfolio.

More recently there has been a spate of new timber investment by major asset managers, not least the $1 billion takeover of Canadian timber business TimberWest by two large asset management firms acting on behalf of institutional pension funds.

At the time of writing this report in December 2010, there looms the prospect of a second round of quantitative easing (QE2) by both the US Federal reserve and possibly the Bank of England too.

QE2 should help to shore up the US housing market. Construction accounts for roughly 70% of the total value of timber resources and as the US property market recovers, inflation will rise as houses increase in price once more.

One such asset is timber which has a proven history as an excellent hedge against rising prices.

The US housing market (construction accounts for roughly 70% of the total value of timber resources and QE2 should help to sure up the US housing market. As the US property market recovers, inflation will rise. As house increase in price once more.

Timber as an asset class presents unique characteristics. The performance of forestry assets is driven primarily by the natural growth rate of trees independently from the macro economy. As a tree matures its size and usefulness increases and subsequently so does the price. In a difficult economic climate timber companies have no need to discount their crops because if simply left to grow the value of the asset only increases.

This makes timber much less volatile in the long run and more resilient in difficult times compared to most other commodities as the investment is backed by the underlying real asset value of timber. Timber is recognised as an inflation hedge as trees grow in size, and therefore value each year. If inflation were 3% and your trees grow in size (value) by 5%, you have grown your wealth in real terms ahead of inflation.

As the rate of inflation increases, so to do timber prices, as well as the volume of timber you have to sell. This creates a double-buffer for investors and makes timber investment an ideal balancing tool to diversify portfolios.

There are a number of different opportunities for retails investors to participate in timber investment in various forms. In this section we will focus on direct investment within commercial timber plantations, although the reader should be aware that there are other, market-linked opportunities such as forestry funds and listed timber companies.

The basic premise of all of the investment offerings from various companies that we have researched remains relatively static, in that investors are usually invited to purchase either a lease on a plot of land within a commercial timber plantation, therefore owning cropping rights to any timber produced within their plot or woodlot. An alternative to this is where investors are offered direct ownership of a fixed number of trees.

The cost for plots varies from project to project between £5,000 (GBP) to £22,500 (GBP) depending on the size, location and species of timber being grown.

Sometimes, annual fees are required from the investor to service the costs of on-site management, and of course the occasional thinning that is always required within a commercial plantation.

With other projects, sufficient management fees for the period of time up to the first harvest are paid up-front by the vendor and held in escrow, fees for future harvests are deducted from the revenue of each preceding harvest, therefore creating an investment where no further cash input is required from the investor.

With some projects the land is leased by the forestry company and investors enjoy a sub-lease, with others the land is owned outright by the forestry business and investors have a direct lease and the land held in trust in favour of investors until their lease expires, this mitigates the risk of the forestry business ceasing to trade in the future and the investor left with a sub-lease with a business that no longer exists.

Emerging Technology Is Changing How You Can Do Business

I love technology, and we’re fortunate to be living at a time when most of us are experiencing the great evolution of technology. For instance, we have cars that are out on our streets driving themselves. We have incredible advances in medicine and have eradicated diseases. And, as the U.S. shifts from government to public and private partnerships, I’m sure that we’re going to see incredible achievements in the space industry as humanity seeks to create a society that will thrive beyond the boundaries of Earth. The success of the reusable rocket by SpaceXin 2017 is a step in the right direction. However, technology can also be straightforward and affect our daily lives and businesses.

Zoom Room

In my company, one of the technologies that have fundamentally shifted how my team, client and our vendors relate to each other and work is Zoom. Zoom is one of the top video and web conferencing platforms on the market.

I love the technology because my team is spread out across the U.S. and even in Europe. Every single week we’re getting online with prescheduled or unscheduled Zoom meetings in our conference room, which we now call the Zoom room. People can join us at a moment’s notice from anywhere they have internet access using their desktops, tablets or smartphones.

OWL Labs

After using Zoom for a couple of months, we went one further for one-touch conferencing, which is supported by OWL Lab 360 degree camera and microphone. What does that mean? It means that attending one of our video conferences is a much more dynamic experience.

Instead of seeing a flat look into the conference room, which is not only dull but can have people outside of the Zoom room miss subtle body language or even missed discussion points, the OWL Lab camera and microphone follows the speaker. That means that the moment someone begins to speak, the camera and microphone immediately rotate and focus on that individual, making the discussion much more animated and dynamic. If you want to see what we’re doing and how it works, take a look at the OWL Labs experience.

What People Are Saying

Our team loves the technology, and everyone is pleased to get on a conference call because it is the next best thing to having people actually in the same room. In addition, the technology is regularly used for screen shares, and productivity has increased exponentially.

However, as an entrepreneur and businessman, one of the best compliments we’ve received come from our clients and partners. Quite simply, they’ve been wowed, and we’re always getting new comments about how “forward thinking,” “ingenious” and “practical” we are in our use of technology.

I’m a big believer that you have to embrace all of the resources at your disposal and in the modern era, that includes technology. One of the best things you can do for yourself and your business is to embrace technology, even something as simple as the platforms you use for video conferencing.

Speech Recognition Technology and Medical Transcription Services

:An Overview:

Speech is now not confined solely to the human race, or even living beings on a broader perspective. It has extended to the World of Technology; specifically Computers and Software. Speech Recognition Technology [SRT], little known until recent times, is an area that has been constantly growing over the years. SRT has opened new windows of panoramic dimensions to human kind.

Speech Recognition Technology – Defined:

A technology wherein a machine or program identifies spoken words and phrases and converts them to readable format. In more simpler terms, voice/speech is converted to text format.

The Beginning:

Speech Recognition Technology, as we know it today, did not just bloom overnight. It is the work of over 30 years. The very first implementation of Speech Recognition was designed and displayed by IBM during the 1964 New York World’s Fair. It was called the IBM Shoebox; and typically sized too. This device only recognized spoken digits from 0 to 9. Over the years, Software companies have delved upon the benefits and the profits that can be reaped from developing SRT, and they have come a long way since. Now many noted companies have come up with different versions of this technology, offering various features.
While Speech Recognition has progressed vastly, the downside is that it has been a long and laborious road this far. It calls for training and updating of Software to work flawlessly; and it is currently far from perfect. There is so much more to go before it can be said that SRT is without any imperfections.

Speech Recognition Technology – In Health Care and Medical Transcription:

An area where this technology has caught on to a great extent is the Medical Transcription Industry. Speech Recognition is of two types: Front End and Back End.

  • Front End: As the doctor dictates into the machine, the words are automatically generated and displayed. This text can be edited directly, the report finalized, and signed by the doctor immediately. But there are few Front end users due to time constraints faced by doctors and practitioners.
  • Back End: Also called Delayed or Deferred Speech Recognition. The written draft is generated by the Software and sent to the Medical Transcriptionists for editing and proof reading. This is more convenient for doctors as it requires less time spent reading the proofs.
  • EMR: Speech Recognition can be applied in Electronic Medical Record systems of hospitals, clinics, etc. Searches, queries, and even filling up of forms can be made simpler and faster with voice rather than using the keyboard.


Speech Recognition Technology can be advantageous to both Medical Transcriptionists as well as doctors in a number of ways. A few advantages are:

  • There is not much typing involved as the first draft is generated by the software
  • Requires only editing of the machine-generated text
  • Faster turnaround of reports
  • Saves time in completion of reports
  • Stat reports can be completed and returned quicker than by using the conventional method of typing


Being a technology that has not entirely been perfected, SRT has a few drawbacks.

  • It cannot fully distinguish words spoken with heavy accents
  • Homophones (words which sound the same but may have different spellings and meanings) can cause spelling errors
  • Incorrect grammar is bound to occur in the generated texts
  • Punctuation rules are not likely to be followed at all times
  • Multiple speakers cannot be clearly differentiated
  • Background noise and disturbances may cause misspellings

Question of the Hour:

A niggling thought in the minds of many Medical Transcriptionists is whether Speech Recognition Technology poses a threat to their livelihood. This is a baseless fear, keeping in mind the drawbacks of SRT. No report will be complete until a human eye has scanned it. Machine-generated documents can only be 60%-70% error-free. It demands well-trained and professional Medical Transcriptionists to read through and edit the reports. A mistake, even a tiny one, can result in unpleasant situations for many. And one cannot rely on mere machines to do the job 100% without errors. In conclusion, Speech Recognition Technology is certainly one of a kind. While it has not yet reached the peak of perfection, it is still quite an aid to the healthcare industry, specifically Medical Transcription. And there is certainly no danger of software or machines or even technology entirely taking over man’s work; technology is just merely helping out!

Lay A Strong Investment Foundation Through A Stock Market Investing Guide

Thanks to the opportunities that exist in the online environment more individuals are beginning to take advantage of the unique resources available with stock market investing. While this unique opportunity for securing your own financial future may be highly appealing, one of the greatest mistakes individuals make concerning this opportunity is found with simply investing money with conducting no research or market evaluation. In order to help improve your opportunity to benefit from this online environment it would be ideal to take advantage of a stock market investing guide.

The first step to take when pursuing any stock market investing opportunity is to find a high quality platform that you can rely upon and make trades with. There are many platforms available for consumers to take advantage of so it is important to weigh your options when considering these resources. When trying to identify the best platform for you it is important to not only compare the various rates you will be charged for making trades but to also assess the resources they provide you in relation to stock tracking and conducting market research.

Once you have been able to identify the best platform to support your stock investing goals, the next step in a high quality stock market investing guide is to identify potential stocks you may be interested in and beginning the research process. Research represents an invaluable tool that investors rely upon to identify market trends, as well as determine the value associated with making an investment in a particular stock. Stock values are constantly fluctuating so it is important to identify what is impacting these businesses and how a change can benefit your investment goals.

Step three of the stock market investing guide is to weigh the value of every stock you are considering to invest in. The value associated with the stock is dependent upon many different factors such as the opportunity to profit off of your investment. While one stock may provide you with an opportunity to make a small profit while another stock may provide you with the opportunity to make a larger profit, it is also important to weigh the risks that may affect whether the stock will succeed. Often the safer opportunity will provide you with a smaller profit but will give you results rather than the risky endeavor of an alternative.

The final step of your high quality stock market investing guide is to take advantage of the research you conducted and make an investment so you can begin to profit. Not all stock investments will be successful so it is important not to place all of your financial resources into a single stock.

Taking Advantage of Technology – Improving Your Business

Taking advantage of all of the technology that is currently available can really help your business. There are also times when this technology can help you to save money and make it more convenient for your home use as well. A good example of this is VoIP, or voice over Internet protocol. This is something that is being utilized more and more frequently, not only in business settings but also at home. As long as you have the equipment that is necessary to get up and running, you can begin using your Internet connection to place your phone calls which can really be very beneficial in a number of different ways.

Surprisingly enough, there is very little that is necessary in order for you to get started using VoIP technology. One of the things that may be necessary in some type of gateway and in some cases, we are going to have that available through our home Internet connection. Businesses or individuals that need to use this technology more specifically for their purposes or perhaps on a larger scale may need to look into some type of specific gateway which will suit their needs. For the home user, however, simply having an Internet connection that is high-bandwidth, such as cable or DSL will suit your needs. The other equipment that is necessary is usually just a headset and speakers, as well as a sound card in your computer.

A great benefit to using this type of technology is the fact that it is not only other computers that can be contacted, but you can use this service to contact people on any type of device. That would include cellular telephones, as well as land lines. You can also contact international numbers using this type of technology which obviously, can help you to save a significant amount of money over what you may be paying through your current phone service.

The quality of the phone call is going to be dependent upon a number of different issues. For example, the more bandwidth you have available, the more likely it is going to be that you can place a call with high call clarity. If you’re going to be doing any research online to learn about this type of issue, be sure that the research is up-to-date. Over the past several years, this technology has improved considerably and, although the call quality may have been poor several years ago, it is generally improved today.

One other thing that you will want to consider is the type of software that is necessary for you to use this technology. For businesses, licensing may be necessary for very specific software that will help to suit your needs. This would include allowing conference calls or perhaps recording the call for later use. For home users, they can usually download the software that is necessary to take advantage of this technology and to make calls, either locally or around the world using their home Internet connection.

Lifestyle and Career Disruptions by Technology

We live in an era of unusual disruption of cultures, lives and businesses by technologies. As a little boy, I listened to folklore under the moonlight in my south eastern part of Nigerian village. The elders told the stories of justice, bravery, honor and humanity. There was no cellphone and there was no distraction. Life was under a predictable pattern especially in the evenings when boys and girls will wait in turns to play under the moonlight and receive moral education carefully orchestrated in the stories told by the elders. Every child belongs to the village and parents are nothing but stewards.

As we trekked miles to fetch water and firewood for the family cooking, we enjoyed the songs of the happy birds. We treasured the flowers and the gentle winds out of the thick rainforest of our stream. It was a life of great tranquility and we never had a homicide in the village. By norms and traditions, the fishes in our stream must not be fished. They were preserved and in most cases we played with them.

When it was time for school, we continued on that village tradition of brotherhood. The elders have mapped out lands in the village where people could go and plant fruits so that any villager when hungry could go there and eat. It was forbidden to sell anything from that land because it was designed to be a ‘strategic food reserve’. It worked; I planted an orange tree and my best friend gave the village a coconut tree.

But that was then. Many things have since changed, not just in my village, but around the world. Technology is disrupting all aspects of human existence and our lifestyles have changed. Industries are being demised and new ones are coming up with our lexicons constantly evolving to accommodate new tech-evolutions.

Food has been professionalized and mamas do not need to know how to cook. Technology and globalization have already changed family traditions.

As a boy, I heard of professional typists. These were specially trained pros who could churn out characters on typewriters at amazing speed. There are few of them today. There were shorthand experts; people that could write on special characters in order to capture statements as fast as they are spoken by their employers.

Many of these professions have since gone or are going. Technology is displacing their services. Computers make mastering of typing not a big deal since it does not cost anything to edit and delete when using word processors. Compare that with erasing and changing stencils in a typewriter, you will appreciate the level of innovation that has taken place. A single mistake in page could render the whole document useless; the typist has to start over, especially in quality documents where erasure is not permitted. So the trade was to get people that could type with zero error, and at fast speed.

For those that are shorthand experts, video recorders with translation capability make it unnecessary to be writing when a politician or anyone is talking. Just record and soon print out the transcripts. Those experts are also fading. It is rare to see a journalist job that requires mastering of shorthand as Isaac Pitman invented it.

Have you noticed that the city of London could police the whole city through video cameras when in the old dull days, policemen might have been used? Those traffic policemen we used to see across many African cities are disappearing as most of the cities install traffic light systems. Those jobs or careers are being displayed by technology.

What of language interpreters? I recall a meeting in Kenya where someone was giving a speech in French and the interpreters were interpreting in English, Arabic and Portuguese. It worked out so well. But that career will soon die. If Apple or any of the Smartphone makers develop a good language translator in their gizmos, we may not need the interpreters, at least, in some gatherings.

So, we have got a lot of challenges in career planning these days. Does it make sense to pursue this career considering how technology could change it in the future? How many ticket masters were displaced when airplane ticketing moved online? How can software affect journalism in the future? How is technology affecting parenting since technology is increasingly displacing our attention to our families? Those late night emails and constant trips to the Blackberries at 10pm are all disruptions.

Planning for careers is not just focusing on what happens today or maybe in two years time. You must have a feel of where technology is going and then anticipate and stay ahead in your career. A business model to open physical bookshops may not be a good idea since most people rarely care to know the bookshop around their neighborhood these days. The first point is order from ebay, Amazon or BN. The local bookstore is model already endangered. The same goes with building cinema halls. In the next ten years, we will have virtual cinema halls where movie releases will be done online without the need of going to that physical location.

The interesting thing about this technology disruption on careers is that it does not matter what your level of education is. It could be that your industry is booming but has moved out of your locality. That brings the degree to which your field is outsourced. The easier your job can be automated by technology, the higher is the risk of technology displacement.

So when people discuss about career planning, it is very imperative that you understand how technology and not just wages could play out in the future. If you specialize in a special type of engine design and from all trends, it is evident that that engine is going to be obsolete and you refuse to adapt and be retrained, you could be in trouble. Ask the expert photographers that made fortune washing and developing films in dark rooms. Those that failed to move to digital photography are only in history books.

Our world has been made better by technology because it improves our productivity and standard of living. However, it also carries a major challenge; disrupting careers and moving many jobs to museums. It is very important you stay ahead and see how new technologies could disrupt and displace your job. Never wait, plan ahead and stay above technology innovation with new skills.

The Easiest Stock Investment Strategy – Invest in Dividend Paying Companies

The best stock investment strategies are the ones that have been proven over a period of time, the longer the better. Few investment strategies have withstood the test of time. Great investors throughout history have used different approaches to investing according to their temperament and goals. The goal of every investor is to make money and compound their way to financial freedom while protecting their capital, whether the investor has a long term or short term view.

The different approaches are Value investing, Growth Investing and Income Investing and or Dividend Reinvesting. Each of these approaches can be used by the long term or short term investor, whether he is a day trader, momentum trader, contrarian investor, turnaround situations, buy and hold investor. These approaches can be used singly or jointly. Remember, every investor wants value from his investment. Everybody wants a bargain. Bargains can be achieved by analyzing the fundamentals of the company or by technical analysis.

Why is investing in dividend paying companies is the strategy to invest in the stock market when compared to other strategies? It is because once you have completed your analysis and you have decided to invest in the company, all you have to do is monitor the fundamental of the company including the payment of dividends.

Analysis of dividend income investing, value investing or growth investing is basically the same. All styles take effort and time to complete. However, keeping of income dividend is the easiest as you do not have to monitor the share price movement on an daily basis. With income investing you only need to monitor the fundamentals and dividends on a monthly, quarterly, semi annually or yearly basis. This gives you time to enjoy life.

All of the strategies study the Balance Sheet, Income Statement, and Cash Flow Statement to calculate the ratios such asset growth, rate of liability reduction, sales growth, earnings per share growth, and return on equity. Once a suitable company is found, then the investor studies the strength of the management. Finally, the investor calculates the intrinsic value. Intrinsic value is the value of a company based on an underlying perception calculated from different ratios of the business. If the market price is lower than the market price, then the investor has found a bargain.

The difference of each strategy is minimal that is seems they are the same. However, it is important to realize that each strategy seeks a different end result. Dividend income investing primarily seeks income first, value second and growth third. Value investing seeks value first, income second and growth third. Growth investing seeks growth first, value second and income from dividend is not important for growth investors. In reality all are seeking value hoping to profit from their investment strategy.

For each investor the value is different. The best strategy is dividend income investing because while waiting to get capital gains from growth you can still earn passive income along the way. Better still you can reinvest divined income to compound your net worth without having to sell the investment. You can hold the investment forever or sell when you think the full value as been achieved. With growth investing to only way to achieve income is to sell the investment. Why would you want to sell an investment that has grown in value? Therefore, income investing is always better. Remember, you must find value in every investment, you cannot pay too much for an investment otherwise you will never get value. As Warren Buffet says “price is what you pay, value is what you get”. What can be a better value than getting immediate passive income from dividend income investing?

So, are you looking to be an active stock investor, yet do not want to monitor your investments the whole day. Do you want to invest solely for growth or do you want income which will lead you to financial freedom through compounding your income.

All of these stock investment strategies can be used to achieve success. Do you want to choose the easy or the hard way? I am quite for the easy method will be your choice and that choice is Income Investing. In the long term income investing and reinvesting the dividends will help you achieve financial freedom. Remember to choose the strategy which is suitable to your temperament. Also, remember, the easier system will always be the better choice. Learn and become the master of income investing through dividends paying companies. Remember, the aim of investing is financial freedom.

4 Technology Mistakes That Could Cost Your Small Business Money

Computer technology is at the core of today’s small business, but owners and managers are faced with the question: how do we keep up with the constant changes in the computer world? Will the computers we buy today be obsolete two years from now? And will using outdated computers and software slow my business down or expose it to dangerous exploits?

Here are 4 common mistakes made by small business leaders when dealing with their company’s computer technology:

    1. Shortsighted Initial Purchases: Business capital is almost always at a premium and it can be tempting for a business owner or manager to try to save money by skimping on their initial investment in computer and network technology. The irony is good quality, name brand equipment will actually save money in the long run, performing better and lasting long after the bargain priced equipment needs replacing. This doesn’t mean you need to purchase the latest and greatest hardware, but investing in computers with adequate memory, storage space, and CPU power will pay off.
    2. Failing to keep technology maintenance organized: Backing up every workstation individually on a daily basis in an office full of computers is an incredibly labor intensive undertaking. Now imagine updating your anti-virus software, applying critical operating system security patches, etc. one by one, computer by computer. It makes sense and saves you money to keep all your critical data in one central location where it is less prone to damage or loss from human error and it makes just as much sense to perform your technology updates form a central location. Initial outlays for centralized servers and software will pay for themselves through greater productivity and security.
    3. Allowing unrestricted use of equipment: Just a few minutes a day of personal Internet surfing or email usage by employees can add up fast, and unauthorized web surfing can be a gateway for dangerous Trojans, viruses, and malware. Every company should have strict rules on use of equipment, and enforce them.
    4. Waiting for problems to arise: Failure to prevent computer problems is like waiting to run out of oil before you take your car to the shop. It is less costly to be proactive in monitoring your computer network than waiting for things to break. Proactive computer and network maintenance can bring prevent costly downtime and the frustration it brings to your staff and customers.

The takeaway from this list of computer technology mistakes is that it is often counterproductive to skimp on equipment and computer expertise. Whether you invest in personnel to determine your needs or bring in trained specialists, making the right technology decisions will save you money in the long run.

Technology Implementation in Business and Life and How Important It Is

Technology is the buzz word today. Almost everything we do, use, or consume is processed through some kind of technology. Computers and Internet has changed the face of modern society. Still there are people who are resistant to get themselves adapted, to latest technologies. They are so much involved into the affairs of their business, that they feel getting updated with technical stuff is not going to help them anyways. They feel it is a waste of time. I Am going to share a real life story to highlight, why it is so significant to cope with technology in the modern society.

My father has a trading business, which is doing good. However couple of years back all his accounting and office work was done 100% manually. He was comfortable with it as he was simply unaware of the magic of computers. He was also resistant to get systems and learn them, as he found to it be a waste of time and money.

When I stepped in, I realised that the work for which my father and other employee’s were investing their day and night, is actually not more than couple of hours work with the help of computers. I somehow convinced him to get me some IT stuff like laptops, printers, scanners and specially Internet in the office premises. He was reluctant but I had to hold on to my demands. When I got them a year passed by with no significant implementation of IT in the office. But I learnt lot about how things work in real life and in software applications.

Slowly but steadily I started to automate the office tasks. I automated accounting. After a lot of issues and reluctance from employees, things started to appear in perspective. Almost 80% of the accounting work was simply eliminated. There was no need to manually reconcile financial statements, no balance sheet preparation or different types reports. We dropped one of the employees as accounting became a piece of cake. We started saving hundreds of dollars right from the start. My father became so much relaxed which he never thought he would. He Could now work on more important things in life. Slowly he automated all other aspects such as attendance management, payroll etc. Couple of months later the profits were all time high and there was very less work to do in the Offtime. Now when he looks into the past, it seems unimaginable for him to work the way he used to. He is now a successful entrepreneur with good health. His working hours are 10 to 7 and takes off whenever he feels he needs one, which is very good considering he is a sole proprietor of the firm.

Implementing technology may seem a costly affair and will attract reluctance from the employees. However if successfully implemented technology can turn your firm around and bring out the true potential of your business.

From business to home, from daily life issues to entertainment, technology has a tremendous potential. However first one needs to invest time, to understand things and then use technology effectively for a better and more comfortable life.