Time | Cashflow Blog

May

Using credit card? 7 points to note

Technically speaking, a credit card is an unsecured loan. This means that unlike a secured loan, which is advanced by a bank/financial institution against a security like property for instance, a credit card is offered without any security.

Not surprisingly, many of the negatives that get written about credit cards are related to expenses, hidden or otherwise, that the user did not know (or was not informed) at the time of opting for the card. To avoid distress at a later date, we have listed down some points that you must note while using the card:

1. Term and conditions

How many times have you read this before - read the terms and conditions carefully before signing up for anything. For every product you purchase or service you opt for, always read the terms and conditions and that includes credit cards. If you find anything in the terms and conditions of the credit card that was not conveyed to you or is contrary to what was conveyed to you, then seek a clarification from the bank. If you are not satisfied with the clarification, dump the card.

It’s important that you read up on the terms and conditions before you use the card and not after. Once you use the card, it is assumed that you have read the terms and conditions and have accepted the same.

2. Annual fees

It is common for banks to waive off the annual fees/membership fees in the first year (cards are usually issued for at least two years). The second year fees are usually charged. It is possible that you are promised that the second year’s fees will be waived off as well. The only way to find out is to check with the bank in the second year.

It is possible that the bank may waive off the fees based on your track record of making timely payments. If the bank does not waive off the fees in the second year, you can cancel the card. However, if you wish to cancel the card in the second year ensure you do so before using it, because using the card indicates that you have agreed to pay the fees/charges for the second year’s subscription.

3. Lifetime free cards

Offering ‘lifetime free credit cards’ is a relatively new trend in the credit card industry. While there was a time when most banks charged annual fees on their credit cards, the industry is graduating to a level where annual fees are being phased out. In effect, clients are being given lifetime free cards i.e. no annual fees are charged. However, its best to double-check with the bank what the executive has promised you about all annual fees being waived off.

4. Minimum payment

One detail you will find relatively well highlighted in your monthly account statement is the Minimum Payment Due. This is the minimum amount that you must pay for the purchases done in that month so as to not attract a penalty for default on payment of card dues.

We would recommend that you pay the entire sum to the extent possible. Buying on a credit card is okay till the time you pay your bills religiously. The moment you carry forward your payment to the next monthly cycle, you will have to pay interest on the unpaid amount along with taxes. In the final analysis this turns out to be very expensive.

5. Payment by EMI

On the same lines, whenever you make a large purchase (the amount varies across banks) you may get an offer from the bank to opt for the EMI (equated monthly installment) facility to make the payment. This facility does not come cheap and the interest on the EMI is prohibitive. Again to the extent possible, we recommend that you make the payment before the due date in one go and give the EMI facility a miss.

6. Borrowing cash is expensive

Credit cards can be used for making purchases on credit as also for borrowing cash. While making purchases on your credit card (so long as you pay on time) is okay, borrowing cash on your credit card is a very expensive affair. Avoid borrowing cash on your card; use the card to the extent possible for making purchases.

7. Insurance benefit

Many credit cards are known to offer an insurance cover. We recommend that you ignore this benefit and go for the core offering - credit card. If the card has features that suit you, then you can opt for it even if there is no insurance cover. On the other hand, if the card features are not to your liking then reject it regardless of the insurance cover.

In any case, on most occasions the insurance cover is usually linked with so many terms and conditions that it is very difficult to claim the same. It is altogether another thing that the insurance cover is unlikely to be sufficient for you.

Originally posted here:
Using credit card? 7 points to note

April

Good Workplace Design Improves Productivity

Comments(0)

If you are at work at the moment I would like you to have a look around. Go on, take a walk. Familiarity can blind us to the obvious so there is a good chance that you didn’t notice anything in particular. So why not take another look and imagine you are an employee.

What sort of things do you notice? How does that make you feel?

It’s no surprise that surveys report a direct link between the quality of the working environment and the effectiveness of the people who work in it. So is yours the sort of environment that would likely motivate and inspire your employees to work productively?

Take a walk around keeping these three fundamental principles of productive workplace design in mind and check how your premises rate.

Principle 1: the workspace should promote health and well-being

Daylight is invariably cited by employees as a crucial factor for a good working environment. It is widely accepted that one way of improving the health and morale of workers is by providing good internal lighting and access to natural daylight. Good lighting has even been linked to reductions in absenteeism. Don’t block off windows with equipment or make them inaccessible by building office spaces around them all. Use ceiling mounted lights with a luminosity level that achieves adequate illumination without glare or reflection to reduce eyestrain. Accent lights can be used to help create moods and highlight and define different areas of the office. Cleverly combining natural light and illumination can recreate that ‘feel good’ factor of a sunny day and spur employee productivity.

There’s nothing like physical pain to distract people from their work. Poor ergonomics is the root cause of most back pain, migraines, sore fingers, wrists and stiff necks. Ergonomic seating and adjustable work surfaces mean workers are more comfortable for longer periods and require fewer breaks. Properly set up computer workstations minimise discomfort and the likelihood of developing repetitive stress injuries.

Principle 2: the workplace should be a pleasant place to work in

Office decoration provides the backdrop to work activity. It can inspire or depress us. Drab colours are dispiriting. Office walls can be painted in schemes that make the environment cheerful and fresh. You can develop a colour scheme that reflects your brand and does a little promoting or you might select a scheme that reflects the spirit of your business. If you work in a traditionally conservative industry such as financial or legal services, you’re better off choosing a neutral colour. If your business employs more creative types such as designers or artists, then prefer more energising colours. Colour also has the ability to make a space appear larger or smaller and the occupant feel more or less claustrophobic.

Bare walls and an unrelieved vista of office equipment can make a workplace feel sterile and unlived-in. Photos, prints, or paintings on the walls and a few plants warm up your workspace and make it feel more comfortable and human. Maintain the same style of furniture throughout the office. Mismatched tables and chairs give the impression of having been thrown together and look rather cheap.

Physically, temperature can make or break our ability to concentrate and get on with a task. Decent temperature control and ventilation systems that keep employees comfortable also keep them productive.

Principle 3: workplace layout should support work activity

Office design can be used to enhance moods, speed up task completion and encourage interaction between employees. Employees become frustrated and annoyed when their office isn’t designed to support them in carrying out their job efficiently.

Efficient layout of workspaces allows for better and more efficient workflow. If someone has to get up from their seat to reach for a file or access information, more time and effort are expended. Multiply these tasks dozens if not hundreds of times a day and the time wasted not only distresses the employee, it really cuts into productive work time.

Tools and equipment should be close by to those who use them and employee’s workplaces located close to others in the same work group. To arrive at the most suitable arrangement you need to have analysed just how groups relate to and interact with one another and how work flows from one group to another.

While the Cube has become the symbol of modern office layout it has drawbacks for certain kinds of work where the task demands visual privacy and freedom from the distractions of nearby noise and conversation. If the office is open, there should be places for sensitive conversations. Match workspace arrangement to the needs of the person using it. For example, an architect may require a private office for client meetings, software engineers work best in an open group environment where they can share ideas and issues whereas salespeople might be happy with just a hot-desk on those occasions when they come into the office.

An employee’s workplace is responsible for 24 per cent of their job satisfaction level. Poor workplace design is directly linked to increases in stress level and lower performance among employees. Creating a professional, functional and comfortable space will keep your people happy and productive.

Read the original post:
Good Workplace Design Improves Productivity

January

Realising the true value of your business

Comments(0)

When small business owners approach me as they regularly do to discuss plans to sell their business it is because they usually have little idea on its worth and are hoping to get an idea from me. Or it is a reality check on their own hopes and dreams.

It’s clearly an advantage to have an objective idea of what it is worth. Back in law school we were taught that a fair value is what an able and willing buyer is willing to spend and an able and willing seller is willing to receive. There is a little bit more to it than that but that will do for today!

I guess the main difficulty with that theory is that it assumes perfect market equilibrium. That is to say it is assuming that both parties are no more desperate than the other. However my observation in business is that this assumption is rarely valid. Usually the vendor is more passionate about concluding the transaction than the purchaser. Or they certainly give this impression.

For that reason I often see the case where sellers discount their business value (much as they discount their goods and services) in order to complete the sale. It is as though the seller is determined to undervalue the efforts that have gone into building the business in the first place. On the other side of the coin there is occasionally the situation where a vendor has unreasonable expectations on what the business is worth. It is a fallacy to think that someone will purchase the business at a value calculated to reimburse an owner for the time and effort that has been put into the business if it does not have the profitability and cash flow generation to go with it. (more…)

Read the rest here:
Realising the true value of your business

July

Jul 11, Sample Sales Letter Template

Comments(0)

This combination sample sales letter and sales letter template enables you to create value-laden sales letters that get results, especially for Internet businesses.

Read the original here:
Jul 11, Sample Sales Letter Template

July

Jul 11, Greatest Sales Letters Ever Written

Comments(0)

Golden principles stay golden. The greatest sales letters ever written are STILL great. They can STILL turn your prospects into customers genuinely happy to buy your product or service.

Read the rest here:
Jul 11, Greatest Sales Letters Ever Written

« Previous Page — Next Page »

Cashflow Blog

Using credit card? 7 points to note

Good Workplace Design Improves Productivity

Realising the true value of your business

Jul 11, Sample Sales Letter Template

Jul 11, Greatest Sales Letters Ever Written

Search

Pages

Recent Posts

Tags

Blogroll