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Is Car Leasing the Best Choice for Your Business?

Is Car Leasing the Best Choice for Your Business?
Maybe you are just starting your business and choosing a new car for it. Perhaps your company is so big that it needs multiple vehicles, requiring a fleet management company for your business. The same question arises – is it better to lease or to buy the cars you need? Both options have their benefits, but there are many things to consider before making a choice. These include tax implications, financial commitment, and also the question of ownership. Let us look at all of these elements that can be deciding factors when choosing between buying or leasing a car for your company’s needs. What is car leasing? Business car leasing is a form of a financial agreement between a business and a finance company where the business owner can essentially rent a vehicle for an extended period. This can be anywhere from one to five years, depending on the contract. When the lease term is complete, the lessee may either purchase the car or return it. Advantages of leasing a company car Lower costs and maintenance When choosing the option to lease, your monthly payments are typically lower than they would be if you were buying a car. For a relatively low initial fee, followed by regular monthly payments, you get all of the benefits of running a brand-new vehicle. This includes the full manufacturer’s warranty cover, which typically lasts for two to five years. Taxes Leasing can be an attractive option because many businesses can claim back part, or all, of the VAT. Exact figures depend on the VAT scheme that your company falls under but as a general rule, companies can claim back 50 percent of the VAT if a car is used for private and business purposes. Also, you don’t have to pay any up-front sales tax because you’re not purchasing the vehicle. Flexibility At the end of the lease, you usually get to choose between purchasing the vehicle outright, refinancing, or simply handing it back. Cons of car leasing Mileage limit When you lease a car, there will be a limit on how many miles you’ll be permitted to drive throughout the lease. If you were to exceed that limit, you would face fees that can be pretty hefty. Driving limitations Since you will have been the one to sign the lease agreement, only you would be permitted to drive that vehicle. While that doesn’t sound so bad, it may complicate business matters if you’re not around to operate the car. Ownership While the lease lasts, you do not own the vehicle. This means you won’t be able to sell it if the times get tough or do even smaller things like making modifications. Pros of buying a car Car as a business asset A vehicle that you buy becomes an asset. Because of that, you can decide to sell or trade it at any time. You are not tied into running the vehicle for a specific period as you are with leasing. Long-term investment Buying a car is a substantial investment. But, the longer you own the vehicle, the lower your long-term cost. Fewer limitations You can sell your vehicle anytime you want to or make modifications to the car. Also, you are not bound to a mileage limit. Downsides of buying a car for business Higher initial costs If you choose to buy a car for business, you’ll typically pay higher up-front costs because you’ll owe sales tax, title fees, etc. Also, our monthly loan payments will probably be higher than the lease payments. Deprecation Your car starts losing value as soon as it leaves the forecourt. A new car will have lost...
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4 Things You Need to Know Before Starting a Business

4 Things You Need to Know Before Starting a Business
Starting a Business: You’ve probably read countless articles about it and believe you’re finally ready to take that big step. A word of caution though: once you step into the entrepreneurial waters, you’ll quickly realize that nothing has really prepared you for it. There’s so much more to it than just a good idea. It takes a lot of research and planning to prepare for starting a business. In this article, we help you save that precious time by bringing you 4 things you need to know before starting a business. Understand the Laws and Regulations One of the most important things when starting a business is to familiarize yourself with the laws and regulations that affect you. What kind of business permit or license will you have to obtain? What are the legal requirements for starting your business? How much will you need to pay in taxes? Compliance with the law is essential because you don’t want a technicality holding you back once you embark on this journey. There is a lot to consider from filing tax returns and paying your staff to protecting your business with insurance. If you can’t figure out all of these things on your own, seek help from a reputable accounting firm. A professional can guide you through these laws and regulations and help you figure out if you’re ready to start a business. Additionally, a skilled accountant will be a great ally later on in helping you manage your finances and not over-paying on taxes, etc. Experts at Bankrate have created a resourceful guide that explores seven ways to manage financial stress. It includes tips such as prioritizing what you can control, earning extra money, paying essential bills, and more.Here is the link for the guide : 7 ways to manage financial stress during trying times Is There a Demand for Your Product? Before you spend all your money on developing a product, have you researched the market? Is there a demand for such a product or service? What about the competitors? This might be hard to hear but there is a chance your product isn’t so great or needed so your first step should be to find out whether there is a market for it. Countless new ideas and products are introduced every week, month, year. But how many businesses actually succeed in surviving the first few years? About 80% of businesses survive the first year while only half of all businesses make it to the fifth year. You’ll need all the information you can gather so that you can make small adjustments to your product/service accordingly. Thorough market research will provide answers to the above-mentioned questions and give you an insight into whether it’s worth spending more time on your idea or not. Research your competition carefully. But don’t get discouraged if you discover that there are many other businesses with similar ideas. This doesn’t mean that you can’t be in the same business too. If the market is thriving, surely there is a place for one more great product. Planning Your Business A comprehensive guide from MyMove – for parents to help provide their kids with a baseline of financial literacy so they have the information they need to make smart educated decisions. You can check it out below:Financial Literacy: Teaching Kids How To Buy A Home Don’t Spend More Than You Need When starting a new business, most people give up a lot to finance the idea. Many get into debt, spend too much too soon and showcasing poor money management skills. This matter also requires good research. You need to know what to spend on and what can...
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Common Hiring Mistakes to Avoid

Common Hiring Mistakes to Avoid
Common Hiring Mistakes to Avoid and Foster a Great Company Culture Mistakes made during the hiring process can cause several negative implications for a business. This is why you must get it right. After all, a single bad hire could have long-term effects on your business. Wendy Dessler, the author of this blog post  is a super-connector who helps businesses find their audience online through outreach, partnerships, and networking. She frequently writes about the latest advancements in HR, digital marketing, tech and focuses her efforts on developing customized blogger outreach plans. One of the first things you must understand is that recruitment is an investment in your business’s future. Not only do you need to find people who have the skills for the open position, but they also need to fit in with your company’s culture. HR payroll systems lets you find the right hires and avoid some of the most common mistakes. You can also keep reading to learn more about the mistakes that may occur and what you can do to prevent them. Posting Vague Job Descriptions If you post a job description that is too vague, you may mislead your candidates. When you do this, it’s as if you are inviting many people who don’t fit the brief to apply. You can avoid this situation by telling the whole truth in all parts of the job description. Be sure to create a detailed job description, a specific written policy, and the concise benefits you offer. When you are honest with job applications, you will begin to foster an environment of trust. Also, by posting the truth, you can avoid lawsuits for making promises that you can’t keep. Trying to Rush the Hiring Process You may feel pressure – especially from upper management – to fill a vacant position as quickly as possible. While this may be the case, it’s dangerous to make a decision too fast. You should avoid the temptation to do this. In some cases, a quick referral from existing employees could result in a good hire, but it may also limit the perspectives in the office. Remember, if you over-rely on inside referrals, it may result in stagnant growth. Avoid hiring the first person who comes along. Instead, remain patient. Sometimes it can take some time to get the right person for the job. Not Performing a Background Check When you believe you have found a perfect candidate for the open position that you need to fill quickly, you will be tempted to skip the background check. However, this is essential if you want to know how a person is going to perform in this position. Be sure to check references to see what past employers have to say. Also, confirm their education, work history, and certifications. Depending on the role, you may also need to conduct a credit check or a criminal background check. By doing this, it also assures you that your valuable company resources, such as credit relationships and finances are being put in good and safe hands. Neglecting Your Company Culture While it is necessary to find someone with the proper skills and aptitude, their resume doesn’t tell it all. You also need to find someone who is suitable for the company and figure out if they will fit in with your company culture. The best way to determine this is by sharing various parts of your company culture, which will help an applicant make the right decision regarding if they are a good fit. The way an employee interacts with clients, customers, and colleagues will impact how the company is run. If you want to ensure you find...
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How To Advance Your Business Career

How To Advance Your Business Career
  Working in business is a promising career path because there are a lot of different directions you can go. The opportunities are endless if you continue to work hard and are dedicated to improving your skills over time. Be glad to know there are a few actions in particular that you can take if you want to quickly advance your business career. This way you can get on the right path to becoming a successful and productive employee with the potential to grow and learn over the years. It’s going to take time to get ahead because of all the competition, so be patient with yourself as you develop into the leader you know you can be. Further Your Education A good first step in the process of advancing your business career is to focus on furthering your education. For example, take advantage of your down time by studying for a Suffolk University Online MBA and earning your advanced degree. In this program, you’ll learn the skills and abilities you’ll need to solve complex problems at a global level and how to better analyze data. It’s a great way to polish up your resume and make sure you’re keeping up to speed with the ever changing landscape of the business world. Find A Mentor You may also find it useful to secure a mentor to help you advance your business career. You can bounce ideas off of this person about your performance and ask questions that will help you become a more desirable employee. Pinpoint someone who’s been in your shoes before and has been able to work their way up the corporate ladder. This way you can follow in their footsteps and also hopefully avoid any same mishaps or mistakes they made along the way. Set Goals & Track Your Progress You’ll get a lot further in your business career when you set goals for yourself and what it is you want to achieve in your profession. Not only write down your objectives, but then construct a timeline for how quickly you want to meet each goal. Monitor your progress as you go and don’t be afraid to make adjustments based on your results. For example, aim to go after a promotion at work or complete an online class in an area where you find you struggle the most. Having goals in place will help you to move forward in a promising direction instead of getting stuck in one place and lacking the motivation to advance in your career. Speak to Your Boss In addition, be open and honest with your boss about how you feel about your job and career. Let them know if you’re bored and how you feel they can help better support you and succeed. Discuss chances for you to showcase your skills and abilities in your performance reviews by setting goals together that you want to meet in the upcoming year. Talk about what they feel your strengths and weaknesses are so that you can apply this information while going after the next big promotion opportunity. Always be Networking It’s also in your best interests to always be networking and meeting new people inside and outside of work. Be proactive and use your network for support whenever you’re feeling lost or confused about how you should proceed. It’s possible someone you meet will have good career advice for you or know of a job opening that will be a better fit. Advance your business’ career by staying in touch with those you meet and helping each other out as you each work on getting ahead professionally. Take on More Responsibility at Work...
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How to avoid These 16 Cognitive Bias Traps

How to avoid These 16 Cognitive Bias Traps
“If there’s something you really want to believe, that’s what you should question the most.”  ― Penn Jillette To efficiently run a business, it’s necessary to think on your feet. You are required to make thousands of decisions and judgment calls daily. And while there is a wealth of information at our fingertips and communicating with colleagues or employees across the country takes only seconds, all this can lead to an information overload. In order to manage a business productively, we rely on mental shortcuts that allow us to get around this overflow of information. These mental tricks can also help us get around limits in memory, time, or a lack of information. These cognitive biases are necessary to help us make the sheer number of decisions necessary every day. However, cognitive biases can also lead you to make poor decisions and judgments regarding your business. Because they allow you to make decisions that don’t rely on logic, they can hold you back from doing your best work as a leader. That’s why it’s important to be aware of the common mental traps that you fall into as a manager of a small business. As your decisions can have a major impact on your bottom line, being more aware of your unconscious biases can help you find more success as a manager. For example, many people struggle with planning and scheduling projects. It is common for tasks to go out of scope or miss their deadlines. This is in part due to a cognitive bias called the “Planning Fallacy.” This bias causes you to underestimate the amount of time it will take to complete a task. However, once you are aware of this tendency, you can plan more time for your assignments than you think you will need and meet your deadlines. To help you in all your small business decisions, check out this infographic Fundera created on some of the more common biases and how to avoid...
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