Consciously Getting Out Of Debt, Your 36 Page Field Guide on How To Get Out of Debt

CLICK HERE: ConsciouslyGettingOutOfDebtCanada

Over 36 Pages of the most comprehensive tips and guidelines for you to get out of debt and on your way with a special section on documenting loans and family loans.

We look forward to your feedback!

Happy Season to all of you Canadian’s looking for ways to finance your entrepreneurial venture, survive financially, and all who have come to the right resource to help.

Click Here To Download: Document Your Loan Canada

The lower your interest rate the faster you will get out of debt. If you have rung up large balances you will see your rates go up, that is because most credit card companies know lower rate cards will not give you another card based on the balance, late payments, etc.

Ask the credit card companies if you are able to better make the monthly rates, and when you get the lower rate, pay the credit card off. The credit card company isn’t going to care if you ask them, they are not concerned about your uniqueness, they are simply charging you and this is based on an innate profile within your credit rating. They make judgement calls based on this, and it will not affect you if you try to lower the rate. If they will not, transfer the credit card to a lower rate card. If you have multiple cards, ask them what they can do for you, and transfer it off of other cards. However, you will want to make sure that you try to get transfer fees waived and be weary of default interest rates if you are a day late in payments, this will put you in a worse position once you are consolidated into one card, with more money owing… you will be better off not consolidating but focusing on just paying that one off or finding another method of consolidation. Maybe a friends and family loan to help lower the bad debt in your life.

“Friends or family will try to help you out in a tough spot, if you or they are willing to get into a loan. Please think twice about asking them to do that. Are you really sure, are you really really sure, than at least make it professional, set-up an official promissory note and an official loan with payment schedule.” Garrett Sutton, ESQ Rich Dad’s Advisors for Rich Dad Poor Dad, The ABC’s of Getting Out Of Debt

You can also get them on a prepayment at your Bank so they never have to ask you for the funds, and they know what you can afford and that they will get paid back. Even if they would like the full payment back all in one payment, make the agreement and make sure you add the interest that you can afford to pay them and make sure you can pay them back. At least the document gives them confidence and puts it in writing so that you can’t personally forget about it, its the best thing you can do as a person and a friend.

Take a look at building a document, sign up for your membership with Kasu.ca for free guides on personal loans and a loan document generator you can use only after you create a profile here: Click Here

As mentioned in some of our other blogs, debt consolidation is a common tool people use to get out of debt. Often however since they are unsecured loans, you will likely find that you will be asked to use a home loan for debt consolidation. A home equity loan or line of credit with cash out to pay off the debt is a way the house is used to leverage debt, the worst is losing your home through foreclosure which is a serious risk. A credit card debt and typical debt of credit cards only has the maximum negative of the account being put into collections and or yourself being sued. Of course, the effects to your credit rating are your initial concern, however, the reality is that these unsecured debtors lent the money to you as a consumer at a high interest rate knowing that you would most likely be in more debt within 6 month to a year from when they gave it to you.

It is actually a mirage or misunderstanding by debtors that converting credit card debt into home equity loans is a good thing, because there may be other opportunities to leverage good debt and equity such as a home to make investments such as the purchase of other real estate or business expansion. Instead, the money goes to service bad debt, and increases the risk of the home owner into losing their home if they cannot pay the debts. Just because your credit card says your Bank name beside where it says Visa or MasterCard doesn’t mean that you have to get a secure line of credit against your house or renegotiate your mortgage. The percentage interest and calculation by the major credit card companies is a calculated risk that they take, so don’t feel pressured by your bank asking you to consolidate your debts.

It’s probably not a bad idea to look at debt counselling if you are in debt, but hold your ground when it comes to your home, its an asset of last resort that could be used for leveraging and increasing your wealth versus sinking it into servicing your debts.

If you can consolidate your home with friends and family at a leveraged interest rate and unsecured, you are in a much better position. If you have been thinking about borrowing funds from friends or family, we have a quick solutio for your loan documents. You can sign-up for a membership and profile free here by clicking create a profile and then you have access to choose the type of documents you want to create or get a guide for free: Click Here

Are you thinking of building a new business in the new year? Would you belive that an estimated 80% of the loans between friends and family are initiated over the holidays?

If you are looking at kick starting your business in 2010 than you should be asking your friends and family for a loan NOW!

It is actually statistically harder for you to ask for a loan from friends and family once the Year has already started or when its not a holiday, therefore we urge you to ask friends and family for loans over the Holiday seasson.

When you ask for a loan over the Holiday, it is called a Holiday Loan:

Generally speaking a Christmas loan or Holiday Loan is a short term loan with no collateral by friends and family to ensure that the Christmas vacation, shopping, and holiday season is enjoyed by you and your family. Holiday loans are the same, but primarily for traveling and or vacations during a Holiday Season. Such loans help those who are short on funds and short on cash flow or credit for Christmas shopping and celebration expenses.

Let’s face it, holidays are the time for family at the end of the year which is always a moment to reflect but more importantly look forward. During the Holidays we are thinking about and discussing new business, houses, wedding rings, car loans, studies, student loans, expenses, all of which take money, all of which we need to be prepared for, and who better to ask but the people who love and care for you the most. This is where Kasu comes in, you have done the hard part by choosing to ask someone for the loan, the easy part is buying our loan document… so what are you waiting for!

Draft your Personal Christmas or Holiday Loan TODAY by Click Here and signing-up FREE for a membership to create a profile, then choose the Holiday Loan generator in the Make A Loan section.

What Is It? A FULL Business Opportunity?
Asking the question, “What business am I really in?” and offering goods and services across the full scope of that generic category of business. This expands the range of activities considered to be legitimate by any company in a sector of the economy.

Soap companies are in the cleaning business; book publishers are in the information business; railroads are in the transportation business. Opportunities arise from considering the full range of business you are in. Soap companies can produce items other than soap that can clean, for example.

What Are Some Examples?
 
1. A community newspaper realised they were in the information business. They published a newsletter in addition to their ongoing news-paper.
2. A chartered accountant firm realised it was in the business of financial control. In addition to their regular accounting, they hired a financial controller who acts as the controller for several small companies on a fee for-service-basis. Their rent-a-controller business has been profi-table.
3. A neighbourhood food store recognised that it was in the convenience business. In addition to food, it provided other products and services which would be considered a convenience by consumers. They provided video rentals, delive¬ry service, easy parking, 24-hour service, hot snacks, and an array of other convenient items.
4. Barloworld’s man CEO Gavin Knight in Angola – one sector in which Barlow Equipment is heavily engaged there is power generation. At the top end it provides large, technologically so-phisticated generators to keep banks, factories, hospitals and mines in operation. The other end of the market comprises every business which has any hope of succeeding and just about every home-owner in the country for whom small generators are a daily necessity. It is a potentially lucrative slice of the power-genera¬ting market.
5. Ml Diamond Cutting Works, Msa Mayaba’s business has thrived over the past few years, evolving from a diamond trading operation to mining, cutting, polishing, jewellery and even security activities. It is now also a budding ex-porter, earning hard currency for the country.
6. Well over 11 000 would-be entrepreneurs have signed up as members of Unilever Network since it launched in January 2003, with top achievers earning over $6,000 per month. The network’s training partner provider is QED (Quality Executive Development). Unilever ob-viously asked the question “What business are we really in?” They are in the business of pro-viding business opportunities with their pro-ducts to other businesses and individuals. They have now ventured into network marketing with their products. In network marketing training is vital. Their Unilever Network Academy operates in Johannesburg, Durban, Pietermaritzburg and Cape Town.
7. A local retail outlet selling Harley Davidson acces¬sories was seeing a decline in sales due to the limited number of local customers. Recognising that Harley Davidson is international, the retailer expanded the business by promoting the products on the Internet and offering mail order sales.

How Would I Do It?
1. Ask yourself “What business am I really in?”
2. Look at the services and products you have, to identify which general categories of business they fit into.
3. Take the broad categories and identify other types of services or products in those categories that you could, but are not currently offering.

Key Questions:
• What additional products and services can I offer within that broad category of business?
• What other products or services could fall into the same category? Could I expand my operations to offer these additional items?
• What other products or services would fit with my business that existing customers would buy, or that would attract new customers?
• Is there a market for the additional product or services?

Kasu for example is in the business of helping entrepreneurs, friends, and family document loans, but this also leads to great opportunities for Crowdfunding projects and training of entrepreneurs or personal finances. These are good growth areas for our business in the future. However, the simple version of what we do is at www.kasu.ca, documenting your loans and helping you build crowd funding communities for a cause.

Before we look at the qualities and characteristics of Successful Entrepreneurs we are going to take a quick look at the different categories of businesses that you may own as a business owner.

These three categories are:
1. The Lifestyle Business
2. The Community or Generic Business
3. The High Growth Business

The Lifestyle Business
The lifestyle business is usually a small business built around one or two people and is often operated by people with an expertise that decided to create an income and lifestyle for themselves, rather than be employed by someone else. They like the freedom it gives them, they like being their own boss and the venture allows them the flexibility to live a certain lifestyle. Trades-people, Consultants, Beauty Therapists, Engineers, Advertising Experts, Independent Sales Agents who work by themselves or with a small support staff or strategic partners often fit in this category. With a lifestyle business the key person(s) are the business. They personally bring in most of the income. If they lose interest or for some other reason stop working the business, the business usually disappears. The business can usually be started on a small investment, their expertise is their main asset and the owners often work from their home or shared premises with low overheads. Rather than being seen as a business owner, they are more likely to be viewed as self employed individuals. The informal sector of business owners i Canada would most likely fit in this group, as well. (Buskers, crafts-people, etc.) Most lifestyle business owners are content with the lifestyle their businesses give them and are not trying to build a big business.

Click here for Advantages and Disadvantages

The Community / Generic Business
The Community or Generic Business usually has more employees than a lifestyle business. This type of business usually involves the renting or buying of physical offices or physical space, equipment, etc. A Community or Generic Business would be most local retail stores, restaurants, hotels, professional practices, local or regional focused manufacturers, wholesalers, distributors, builders or service type companies. These businesses eventually generate income without the founders or owners being involved 100% of their time. Over time the business develops value through its processes, local branding, proven income and profit and can be sold or passed on to family members. Energetic lifestyle business owners such as trades-people (electricians, carpenters, plumbers), professionals (accountants, lawyers, trainers, consultants) who decide to develop a larger business with more key people, processes and products earning revenue will often graduate to a Community or Generic Business. Local franchisees to regional, national and international franchise organisations would also fall into the Community or Generic Business category.

Click here for Advantages and Disadvantages

The High Growth Business
This would be those businesses that decide to expand and risk into several locations or new markets regionally, nationally or internationally. Business owners that decide to expand through franchising or owning several locations fit here. A manufacturer, distributor, wholesaler, service organisation, professional group, retailer, or any other company or group (could be co-operative crafts group) that decides to work the much bigger regional, national or international market through agents, distributors, affiliates, partners, direct marketing, tradeshows and e-commerce type marketing would usually be viewed as a High Growth Business. These are more complicated businesses to operate.  The risks and rewards are bigger and larger numbers of employees, suppliers and affiliated businesses and personnel earn income from the High Growth Business. Community or Generic Businesses often expand into becoming a High Growth Business. Ambitious entrepreneurial types and new ventures established by large High Growth Businesses will often go from the Concept Stage to the Take-off Stage straight into the Ambitious Stage of expand and risk in a very short time. This takes capital and expertise. Many High Growth Businesses often become public companies listed on the Stock Exchange or are bought by or merge with larger companies.

Click here for Advantages and Disadvantages

Where Do You Fit?
If you are starting a business venture it is important to decide which category of business ownership you wish to initially be in and where you eventually want to be. Many people wisely choose the lifestyle business and are happy with the rewards of that category of business. Others may want to establish a community business having more people work with them and establish a local brand worth re-sale value at a later date. Then there are those highly ambitious entrepreneur types that want to make the bigger sacrifice of time, energy, ability, money and reputation, to play in the big leagues for bigger stakes. There are advantages and disadvantages to each of these. To help you decide we’ve made a short list of the Advantages and Disadvantages of these three categories of Businesses. It will help you and your family see where you want to be or realistically can be.

Research in Europe indicates that only a small portion of small to medium size businesses create the majority of jobs. It is the dynamic companies and ambitious entrepreneurs that are the biggest generators of jobs. Obviously it is the High Growth Businesses that have the biggest single impact on job creation. Collectively the self-employed individuals in a country like South Africa also have a major impact on the economy because all of these people have a job working for themselves. The Community and Generic Businesses are also major contributors collectively to local, regional and national economies. The ambitious ones often grow into High Growth Businesses. The majority of the ideas, tools, “how to’s” and processes in this program can be used by business owners and entrepreneurs and their staff in all three categories of business ownership. You just have to adapt them and use a bit of innovation and creativity.

Complete the Three Types Of Business Ownership Excercise now FREE: ThreeTypesofBusinessOwnershipExercise

This post has been published by Ryan Anthony Gibson

The High Growth Business
This would be those businesses that decide to expand and risk into several locations or new markets regionally, nationally or internationally. Business owners that decide to expand through franchising or owning several locations fit here. A manufacturer, distributor, wholesaler, service organisation, professional group, retailer, or any other company or group (could be co-operative crafts group) that decides to work the much bigger regional, national or international market through agents, distributors, affiliates, partners, direct marketing, tradeshows and e-commerce type marketing would usually be viewed as a High Growth Business. These are more complicated businesses to operate.  The risks and rewards are bigger and larger numbers of employees, suppliers and affiliated businesses and personnel earn income from the High Growth Business. Community or Generic Businesses often expand into becoming a High Growth Business. Ambitious entrepreneurial types and new ventures established by large High Growth Businesses will often go from the Concept Stage to the Take-off Stage straight into the Ambitious Stage of expand and risk in a very short time. This takes capital and expertise. Many High Growth Businesses often become public companies listed on the Stock Exchange or are bought by or merge with larger companies.

Advantages:

•    The continual challenges of continual change, new markets and new opportunities creates ex-citement and energy in your life especially when you are succeeding. Some people live off those feelings.
•    In a High Growth Business once you’ve achiev-ed momentum it tends to multiply its success quickly.
•    The opportunity is much greater for wealth building through large income opportunities

• Wages, bonuses
• Profit share
• Listing – going public
• Mergers
• Selling to another company

•    Though strong cash flow, partnership, alliances, investors, financing and networks, you usually have the capital to expand and take advantage of the bigger opportunities.
•    Your decisions, research and actions are often backed by a professional team of marketers, financial experts, legal people, technical and HR people that increase your chances of success. You are not alone.
•    Because of your size and often your reputation you can attract, develop and keep top perform-ing people that can make the company successful.
•    If you are successful you end up with lots of media coverage and you become admired by the business community and public in general.
•    Large and powerful business, political and personal networks open up for you
•    Government, your industry and the community at large want you to succeed and will often help because of your contribution in the form of jobs and the success of the industry and economy in general.
•    High Growth Businesses usually have large amounts of money invested into its success by banks, investors, government, and suppliers to name a few. If problems appear they become part of the solution because they can’t afford for you to fail. “Owe a little, it’s your problem … owe a lot it, is everybody’s problem.”
•    It is a great opportunity to develop your leader-ship skills, business and entrepreneurial abili-ties at a phenomenal pace because of the size of the transactions, and the network of ex-perienced successful people you associate and do business with.
•    It is an opportunity to make a major impact and contribute to society and your industry and leave a legacy that will last far beyond your own working life.

Disadvantages:

•    The continual challenge of venturing into new territory and new opportunities can be very stressful if you always like to know exactly what is going to happen. Some people cannot live with the uncertainties.
•    If a company “runs of the rails” during a high growth period it has to be re-directed quickly, otherwise the momentum may take it quickly to a point of no return. Rapid growth is great if you are on track. If you are off track it can be destroyed quickly.
•    Especially during the growth and expansion periods there is a continual need for refinan-cing, raising capital through sales, investors, borrowing and bringing on strategic partners. This is stressful and tiring.
•    As the need for capital increases your position as a shareholder is often diluted. You run the risk of losing control, being replaced, bought out or pressured into a position or situation you don’t want to be in.
•    The company no longer exists just for you … you now need to fit into the business and answer to partners, board members and share-holders. It is no longer just “your baby”.
•    The business often requires lots of travel and time away from home in order to succeed or to correct errors created by others. It also requires the key people to put in long hours of work. Without this kind of commitment the business will not make it.
•    The actions or decisions by someone in another geographical location or division can negatively affect your cash flow and reputation.
•    You may have to change salary packages, in-centives and promises initially made to original partners, investors or employees because of new circumstances and new stages of busi-ness growth or decline.
•    Strong empowering leadership along with pro-per delegation of major responsibilities to other qualified people is needed in a successful High Growth Business. You may not have the skill to do this or just can’t or won’t let go of the reins.
•    Monthly overheads can extend far beyond what you personally can generate in income. This puts it beyond your control to pull the company out of tough unexpected cash flow “crunch” periods by yourself. In the early days of your business you probably could do that. Now you can’t. Can you live with that thought?

Due to the difficulty of bank based loans and the need for capital, cashflow, and investment you would likely go to friends and family for loans. We recommend you use www.kasu.ca in Canada.

There are three types of business ownership positions:

1.    The Lifestyle Business
2.    The Community or Generic Business
3.    The High Growth Business

This blog has been prepared by Ryan Anthony Gibson and the source is Bill Gibson’s Business Success Series by http://www.kbitraining.com

The Community or Generic Business usually has more employees than a lifestyle business. This type of business usually involves the renting or buying of physical offices or physical space, equipment, etc. A Community or Generic Business would be most local retail stores, restaurants, hotels, professional practices, local or regional focused manufacturers, wholesalers, distributors, builders or service type companies. These businesses eventually generate income without the founders or owners being involved 100% of their time. Over time the business develops value through its processes, local branding, proven income and profit and can be sold or passed on to family members. Energetic lifestyle business owners such as trades-people (electricians, carpenters, plumbers), professionals (accountants, lawyers, trainers, consultants) who decide to develop a larger business with more key people, processes and products earning revenue will often graduate to a Community or Generic Business. Local franchisees to regional, national and international franchise organisations would also fall into the Community or Generic Business category.

Advantages:

•    Adding of efficient staff such as a manager, controller, production manager, sales manager, allows you to also pursue other interests, hob¬bies and other investments. It frees up time for you.
•    With the right people and processes in place along with a history of financial success the business could be sold it you want to exit. You are building an asset.
•    You can eventually become an established name resulting in a certain amount of business coming in without pro-actively going after it.
•    You can be a “big player” in a small pond.
•    You can become well known within the com-munity or industry and become part of the key social and business circles, resulting in social and business status for you and your family.
•    Banking needs become easier to access over time.
•    You accumulate hard assets over time in the form of property, equipment and cash.
•    You earn above average income.
•    Other people, products and processes earn income for you. You don’t have to do it all by yourself.
•    You have a team of people to give you input and act as a “sounding board” and become “contributors” to finding opportunities and solv-ing problems.

Disadvantages:

•    A lack of ability or “know how” to put in good business processes and hire, train and develop good people could result in a poorly run business.
•    Believing your business is worth more than it is and the challenge of getting what you think the business is worth when you decide to exit. You may not be able to exit effectively.
•    Because you are established, apathy can set in, and you may not stay on top of changing cus¬tomer needs and what the competition are doing and end up in financial difficulties that may not be reversible.
•    You can get bored with going to the same place each day dealing with the same people.
•    The “fish bowl” effect! Living and working within one community you are watched closely and can easily become part of a negative rumour mill. You and your family can get tired of living up to an image.
•    A substantial investment may be required to start, buy or keep the business going. The debt load could be quite big and put you at risk.
•    The quality of your service, products and pro-cesses is in the hands of other people. They could fall short of your expectations as well as the customers and negatively effect your name.
•    There is always the risk of other people in your business making a mistake or intentionally hurt¬ing your financial position.

Due to the difficulty of bank based loans and the need for capital, cashflow, and investment you would likely go to friends and family for loans. We recommend you use www.kasu.ca in Canada.

There are three types of business ownership positions:

1.    The Lifestyle Business
2.    The Community or Generic Business
3.    The High Growth Business

This blog has been prepared by Ryan Anthony Gibson and the source is Bill Gibson’s Business Success Series by http://www.kbitraining.com

Is your business ownership currently a Lifestyle Business?

Business Ownership: The Lifestyle Business
The lifestyle business is usually a small business built around one or two people and is often operated by people with an expertise that decided to create an income and lifestyle for themselves, rather than be employed by someone else. They like the freedom it gives them, they like being their own boss and the venture allows them the flexibility to live a certain lifestyle. Trades-people, Consultants, Beauty Therapists, Engineers, Advertising Experts, Independent Sales Agents who work by themselves or with a small support staff or strategic partners often fit in this category. With a lifestyle business the key person(s) are the business. They personally bring in most of the income. If they lose interest or for some other reason stop working the business, the business usually disappears. The business can usually be started on a small investment, their expertise is their main asset and the owners often work from their home or shared premises with low overheads. Rather than being seen as a business owner, they are more likely to be viewed as self employed individuals. The informal sector of business owners in Canada would most likely fit in this group, as well. (Buskers, crafts-people, etc.) Most lifestyle business owners are content with the lifestyle their businesses give them and are not trying to build a big business.

Advantages:

•    You are Self Employed and you have the free-dom to choose how much you want or need to work and who you want to have as clients.
•    Usually work at home or close to home. The family is included or seen a lot.
•    You do most of the work yourself and have con¬trol over the quality of work and client relation¬ships.
•    Minimal financial investment to get started.
•    You can build the business part time while still being employed.
•    Low financial overheads.
•    Very little need for debts and financial  obligations.
•    You can quickly hit the financial break-even mark.
•    Financial control and financial management is fairly simple.
•    Your expertise and skills are usually your main assets. It cannot be taken away from you.
•    You can dabble in a number of income gene-rating opportunities without risking the success of the business.
•    Easily change direction or adapt to new situa-tions or opportunities.
•    Very few people to lead or manage. Less people hassles.
•    You can quite easily shut the business down and do something else.

Disadvantages:

•    You often “over commit” and have minimal support and help in your area of expertise. The result can be many long hours of work.
•    Interference or distractions by family members because you work at home or close to home can negatively affect your productivity and energy.
•    Miss out on bigger opportunities because of lack of personal capacity or additional exper-tise.
•    No one to answer to, therefore causing a lack of self-discipline to continually implement best practices and habits.
•    Working alone can be lonely and you miss the input from co-workers and partners. When you are down and have to pick yourself up, very little emotional support.
•    You may lack the sales ability or delivery ability therefore minimising your success. It is difficult to be skilled in all areas.
•    Inconsistent cash flow. While you are providing your service, handling the project or creating your product, etc. you may not be selling and marketing. This causes the “feast or famine” situation.
•    If an unforeseen unfortunate situation (accident, sickness, family tragedy, family conflict) hap¬pens to you, your cash flow could suffer to the extent that it could close your business down and put you in a tough financial position.
•    It can be quite difficult to access bank support. (Due to the difficulty of bank based loans, you would likely go to friends and family for loans. We recommend you use http://www.kasu.ca in Canada. Contact them for a guide at info@kasu.ca on how to use personal loans to finance your business.)

There are three types of business ownership positions:

1.    The Lifestyle Business
2.    The Community or Generic Business
3.    The High Growth Business

This blog has been prepared by Ryan Anthony Gibson and the source is Bill Gibson’s Business Success Series by http://www.kbitraining.com