Archive for July, 2010

After several months of suffering numerous criticisms, the United Arab Emirates finally yields to political antagonism. Dubai Ports World has ordered the removal of the facilities from the five ports they have purchased from the United States. Dubai has announced their decision right after the meeting between the Republican representatives in both the House and Senate was concluded. In the private meeting held in the morning, the leaders told Bush that that transaction between the U.S and the United Arab Emirates was destined to fail.

Some business factions said that this mounting paranoia in the U.S Senate could possibly harm future trade investments. This defeat, some warned, may come back and haunt the U.S because it may damage the relationship between both countries. It should be noted that the UAE is an important ally nation of the United States in the Middle East. In an act to save the rapport between the two countries, UAEs Prime Minister Sheikh Mohammed bin Rashid al Maktoum has decided to hand the operations of the P and O Ports North America Inc. to the supervision of the U.S.

Just last February, DP World has announced that they will put their plan to take over the management of six US ports after numerous bombardment of criticisms by several parties. Concerns over the national security of the U.S were voiced out if ever the deal were to take place. It is a well-known fact that the Middle East is home to the terrorist group Al-Queda with some members coming from the United Arab Emirates. Critics who opposed the deal used this as the basis of their opposition, saying that handling the management of the ports to a nation with questionable association to terrorists would compromise national security.

England, along with some officials, defended the deal. They said that paranoia should not be allowed to rule the minds of the people. They added that this is exactly what the terrorists want to happen. Administration officials have repeatedly said that although the management of the ports is going to be handed to the DP World, the national security will still be under the U.S entities’ supervision such as the Coast Guard and the Customs of Border Protection.

However, this assurance didnt stop the House to vote in opposition to the deal, and quite overwhelmingly. After reviewing the transaction under the agreed time of 45 days, the House vote resulted in a 62-2 vote against UAEs management of the U.S ports.

According to White House officials, the decision came about after the meeting of the Congress and DP World. It has also been said that the senior officials of the administration had no direct involvement in the meeting. Several upper bodies of both governments discussed the issue and worked out a result, which was for the United Arab Emirates-based company to back out. After several weeks of controversy and heated discussions, the conclusion came surprisingly swift. It is still unknown how the company would formalize its departure but DP world would not suffer any substantial economic loss.

You would like to increase your income by selling other peoples` products but you just don`t have the money to stock inventory.

On the other hand, perhaps you have lots of your own product and would like to increase your sales, but you don`t have a lot of money for advertising.

The solution to both problems may lie in drop shipping.

1. Sell Products You Don`t Own

You would like to sell a variety of products but you don`t have very much money. Don`t worry! Your customers will supply you with the necessary capital. You don`t have to stock inventory. You can drop ship orders.

For example, you receive a credit card order for a product retailing for one hundred pounds plus five pounds shipping. You now turn around and fax (or e-mail or phone) your order to your dropship supplier. You pay the fifty pound wholesale product cost plus five pounds shipping using your own credit card.

Your dropship supplier now ships the order to your customer. With no investment in inventory, your gross profit equals fifty pounds.

2. Sell Products You Do Own

Would you like more sales of your own products? Consider drop shipping your products for other dealers.

As an example, you may have a product that sells for one hundred pounds plus shipping. Every time you sell that product yourself, you will have a sale of one hundred pounds. However, how many one hundred pound sales can you make personally?

Now consider the situation where you offer your dealers a wholesale price of fifty pounds. You could have hundreds or thousands of persons selling for you.

It is true that each product sale now only brings you only fifty pounds in sales. However, these are sales that you wouldn`t otherwise have. What would it cost you to obtain these sales through traditional advertising channels? Would your advertising even bring you the desired results?

Keep in mind that with this drop shipping arrangement, you pay only for results. When a dealer retails your product for one hundred pounds, he is really receiving a fifty pound profit for selling your product; you could view it as a sales commission. You receive only fifty pounds per product sale but sell way more than without drop shipping. You ship directly to the customer for your dealer.

So, whether you sell other peoples` products or your own, drop shipping can increase your sales, preserve capital, and maximize business profits.

Through the years we have watched Donald Trump Rise and Fall, only to rise again. A man that truly understandings the ups and downs of business. It is believed that a good business man must be humbled a few time before greatness. This is the only way a good leader can be developed. A business person must know what they have to lose.

Donald Trump is a amazing person. His true leadership shows in his approach to his employees. He does not judge them for their education, but by their performance and ability to lead. Not all great leaders can have degrees. Street smarts and business experience can crush a college educated person.

Here are a few items we would like to point out about Donald Trump:
- A person that knows success and tells us to brag about. Blow your own horn.
- Do not judge a person by their education, but always respect those who have one.
- Learn to make the deal, buy knowing what you want and how your going to get there.
- Surround yourself with great people.

Business Subjects That Donald Trump Would Be A Great Influence:
- Master of great real estate deals.
- Marketing, What your doing and what you have already done
- Leadership and People Skills, Respect those around you, yet everyone one knows who is in charge.

Donald Trump has proven to be a household name to us for his accomplishments. Many folks down play his forwardness and horn blowing ways, but he always seems to be on top. Mr. Trump is someone to watch, learn and understand.

A site has been provided for you to understand Donald Trump better, at http:www.searchtrump.com . A site devoted to Donald Trump and his leadership.

You can also email trump@nwcustomwebs.com with any of your questions.

For many, the American dream of owning a business is in queue right behind owning a home. I was a teenager when I owned my first business. Since then I have bought or started many businesses and helped others do the same. Here are some common mistakes I have witnessed or committed myself.

Paying too much

This results from the combination of all other mistakes. Many new business owners set themselves up for failure by paying too much, which results in higher loan payments, lower operating funds, and reduced borrowing capacity.

Letting your emotions rule

If you have always dreamed of owning a business, it is very easy to get caught up in the strong emotions invoked by seeing those dreams coming true. To counteract your emotions, take your time, do your homework, and enlist the help of objective advisors.

Paying for potential

You should only pay for the business as it stands at the date of purchase, not what it could be in the future. You will have to spend time, effort, and money to develop its potential. The seller chose not to invest these things, so he does not deserve to be paid for them.

Not evaluating yourself

Do you have what it takes to run this business? Try to match your strengths to the important duties you will be required to perform. Running a small business requires the owner to do many things. No one can be good at them all, so make provisions for those areas in which you are the weakest. Some tasks like payroll and bookkeeping can easily be contracted to outside vendors. Possibly your spouse, other family member, or a partner could do things that you cannot or do not want to do.

Not building a team of experts

At a bare minimum, you should enlist the aid of an attorney and a CPA. The attorney can prepare and review documents, help structure the deal, and make you aware of legal and liability issues. The CPA can provide a financial analysis of the business, and advise you about tax and accounting matters. You should consider adding a business valuation professional. His valuation report can be used to determine the reasonableness of the asking price, negotiate a lower price, and provide valuable information about the business, the industry, the competition, and the economic conditions.

Relying on bad information

You should verify all important information about the business. Your CPA can check financial information like receivables, payables, and inventory. Your attorney can review loan documents, leases, and contracts. Your business valuation professional can analyze the competition, the industry, and the economic conditions. Use independent appraisers to value real estate and equipment. Get a credit report on the business through your CPA or banker. You can do some of the investigating yourself to save money, but do not cut too many corners it may cost you in the long run.

Changing too much, too fast

Once you own the business, you will be tempted to start making wholesale changes from day one. You risk alienating long-time employees and customers. Unless the business is in bad financial condition and needs immediate action, its better to take some time to get to know the business, your employees, and your customers before making changes. This is a perfect time to solicit suggestions from employees and customers.

Buying a business because you like to do what the business does

One reason restaurants have a high failure rate is people buy or start them because they like to cook. Very few restaurant owners spend time cooking. Their time is spent managing staff, ordering supplies, doing paperwork, and handling daily crises. A small business owner must wear many hats including that of manager.

Not being interested in the businesss product or service

I made the mistake of thinking that because I am a CPA and smart that I could own and operate any business. I bought a business that sold high-performance auto parts to young men who drove jacked-up, four-wheel drive pickup trucks and went to the drag races every weekend. I did not do either and never understood why anyone would. I could not relate to my customers and went out of business in about a year.

Conclusion

Buying a business is a complicated, emotional process. By avoiding these costly mistakes, you can prevent turning your dream into a nightmare.