New entrepreneurs are usually hard-pressed for money to take care of the various needs of their fledgling venture. Hence, they have to try their best to save as much as possible and get the maximum benefit out of their existing funds. The following tips are designed to help startups to manage their funds in the best suitable and productive manner.
To find an economical office space is among the most costly expenditures a new entrepreneur has to face. Try to find a free office space to start with. You can convert a spare room in your home into a makeshift office, or if it is unavailable try to sound our some of your friends or relatives if they can provide you with a spare room on reasonable rents. If you have basic furniture, or the room is already furnished, then it is enough to save a substantial amount on furnishing the office. You office will probably require only basic amenities as a startup. Save the money on expensive furnishings for other pressing demands for other operational costs.
While on business tours, you can make use of your relatives or acquaintances accommodation for a day or two instead of putting up a hotel. This will enable you to save on food expenses depending on the hospitality of the people you are staying with. You can also try to cut down on the cost of travel by using train, or discount offers of airlines. Traveling on the afternoon flights is usually cheaper than flying at other times. You can also share a hotel room with another person whom you trust in case you are traveling alone. Otherwise, if you are accompanied by a colleague, it is always easy to share the accommodation.
The cost of the day-today operation of your office can soon get out of control if you are not careful to be systematic from the beginning. You have to save on the use of electricity, telephone bill and office stationery such as paper and records. Most of the office equipment can be procured on rent instead of buying outright. Air conditioners, computers and other equipments could be installed very cheaply in this manner. Used envelopes are very handy for doing rough works. For taking print outs you can use both sides of the paper. The paper needs to be of quality, but it doesnt mean that you have to use expensive paper. Using a lower toner will save paper space and toner as well. Be careful to switch off all the electric gadgets, including the computer, when not in use.
If you look around, it is possible to come across free writing equipments, diaries and writing pads from other companies and hotels given out as promotional materials. Arrange a deal with your stationery supplier for a discount for buying the items on a regular basis. Some of the office works, such as accounting and bookkeeping can be done on contract basis with an outsourcing provider. This will enable you to restrict the number of your office staff to the minimum.
When you are buying computers and related equipments, use a reliable company instead opting for top branded products to save on costs. Try free office software instead of buying the same thing at expensive rates. Also, maintain a close watch on your income and expenses so that yourcompanys future remains safe despite of market conditions.
About the Author
Anjitha is a financial adviser and well known for his finance related articles . You can find more financial articles written by the author by visiting the following link .high interest savings accounts
Friday, August 21, 2009
Thursday, August 20, 2009
Which Of The 8 Types Of Student Loans Is Right For You
Last year we struggled with the fact that we needed to fund our college students dreams without much money in the bank. When we turned to student loans we had no idea there were so many different types of student loans. Let us walk you through a quick recap of what you can expect from the 8 dissimilar types of student loans.
Types of Student Loans:
* Federal Stafford Loan (subsidized & unsubsidized)
* Federal PLUS Loan Parent...Loan for Undergraduate Students
* Federal Perkins Loans
* Bank Loans
* State Loans
* Other unsubsidized Loans (Stafford)
* Loans from other sources
* College Board Extra Credit Loans
We had no idea that you could even endeavour to get a federal loan without submitting an application to FAFSA. Once you submit your application to FAFSA you then must wait for your Student Aid Report (SAR). With SAR in your hand now you can go and find a student loan that meets your needs.
Another eye opening experience. To me the interest rates associated with student loans are highway robbery. As you will soon find out, these rates are high but most lenders are competitive with each other.
1. Federal Stafford Loan - Subsidized: (government pays interest until you graduate) most popular loans and available to both undergraduate and graduate students. It's really hard to beat these interest rates.
These rates are for subsidized loans to undergraduate students.
* 6.0% for the 2008-09 school year
* 5.6% for the 2009-10 school year
* 4.5% for the 2010-11 school year
* 3.4% for the 2011-12 school year
* returns back to 6.8% for the 2012-13 school year.
From this example it is best to borrow less money now and wait till 2011 to borrow heavy because of the interest rate decrease. And remember on January 1st of each year you must re-apply through FAFSA to received your student loan for the following year.
2. Unsubsidized Federal Stafford Loan - easy to get and student can pay interest as you go to keep the total loan amount down once they graduate.
***Types of Student Loans***
Students who are working while attending college, negotiate with your lender to make monthly payments and round up to the nearest tens. If your interest is 8 dollars a month pay 10 dollars which shouldn't be that hard. Any time you can pay on the principal the better.
3. Federal PLUS Loans for Parents - allows the parent to take out the entire cost of students college education. It is not dependent on "how much a parent makes" and it does offer a nice tax break but this could change with a new president.
***Types of Student Loans***
You can negotiate repayment of your PLUS loan. Chose from graduation date repayments or start 60-90 days after the loan money.
4. Federal Perkins Loans - students who are having financial difficulties should look into the Perkins Loan. The problem with these loans are they are limited, however you will receive a competitive loan interest rate.
***Types of Student Loans***
Federal Perkins Loans are reported to your credit bureau. Do it right and you will have an excellent credit rating. Default or be late on payments and it will spell trouble. Be very careful.
5. Bank Loans - if you are turned away by the federal government then turn towards a bank loan. These loans are usually a little higher and each bank has different regulations. I'd shop hard before signing on the dotted line. Some banks do offer Stafford Loans, but they are more strict on their policies.
***Types of Student Loans***
Banks might limit their loans to full time students and repayment options will be limited. However you might find some incentives on re-payments of your student loans.
6. State Student Loans - you will need to visit your local bank to pick up an application. Most states offer a guaranteed student loan but the banks will dole out your funds.
***Types of Student Loans***
These types of student loans are usually more expensive to borrow from when you compare them to federal loans.
7. Additional Unsubsidized Stafford Loan - These types of student loans are determined by the federal guidelines and are reserved for borrowers who fall into the "independent category.
8. Other types of student loans - look at all your options and discuss these with your financial aid advisors at school. Military dependents, corporations and businesses will offer student assistance. Don't be afraid to ask.
These types of student loans are usually more expensive to borrow from when you compare them to federal loans.
7. Additional Unsubsidized Stafford Loan - These types of student loans are determined by the federal guidelines and are reserved for borrowers who fall into the "independent category.
8. Other types of student loans - look at all your options and discuss these with your financial aid advisors at school. Military dependents, corporations and businesses will offer student assistance. Don't be afraid to ask.
Additional Bonus
There is one place that will pay your tuition fees if you can repay them within a year. Affiliated with around 2000 universities, Academic Management Services offer student assistance, but be ready for some expensive rates. These funds should only be used in dire emergencies, as well as securing a credit card for unexpected expenses.
I cannot stress this enough, PLEASE make sure and present your application to FAFSA early in January of each year. Once you receive your SAR then you can get down to business and be first in line to receive your student loan.
About the Author
Arthur Annenberg has always been a great champion of higher education, in the following article he futhers his attempt to bring all recources to bear for you to succeed in your quest. http://studentloanbanker.com
Wednesday, July 16, 2008
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