Investment

All invest in gold

2012-01-20T14:00:00.000-08:00

Gold is a foundation asset within any long term savings orinvestment portfolio. For centuries, particularly during times of financialstress and the resulting 'flight to quality', investors have sought to protecttheir capital in assets that offer safer stores of value. A potent wealthpreserver, gold’s stability remains as compelling as ever for today’s investor.As one of the few financial assets that do not rely on an issuer's promise topay, gold offers refuge from widespread default risk. It offers investorsinsurance against extreme movements in the value of other asset classes. Goldis significantly less volatile than most commodities and many equity indices.It tends to behave more like a currency. Assets with low volatility will helpto reduce overall risk in your portfolio, adding a beneficial effect onexpected returns. The price of gold tracks the shifting balance of supply anddemand. Long lead times in gold mining mean production of gold is relativelyinelastic, regardless of increases in demand. That’s why the rally in the goldprice since 2001 has not engendered a meaningful increase in gold productionlevels. Demand for gold has shown sustained growth recently, due at least inpart to rising income levels in key markets. These supply and demand factorshave laid foundations for gold’s most positive outlook in over a quarter of acentury.

Jaka kuna za spas gospodarstva

2010-10-14T06:26:00.000-07:00

Guverner Hrvatske narodne banke Željko Rohatinski još je jednom pozvao Vladu na reforme kojim bi se konsolidirale javne financije. U suprotnom, kaže Rohatinski, trebati će nam novi stand-by aranžman s MMF-om. Guverner HNB-a tvrdi kako se tečaj kune mora održati 'Vladine projekcije pada BDP-a nisu točne. Oni kažu kako će on iznositi 1,6 % a vjerojatnije je da će to iznositi 2%. Točnim brojkama će se problemu u fiskalnoj sferi dodatno zaoštriti', rekao je Rohatinski za slovenski mjesečnik Bančni vestnik dodavši kako će deficit javnog sektora ove godini biti veći od šest posto BDP-a. Takve brojke vodile su pokušaju smanjivanja određenih prava građana, a sve je posljedica odgađanja nužnih reformi. Rohatinski se u ovom razgovoru dotaknuo i tečaja kune kojeg mnogi smatraju previsokim. 'Najnovija analiza MMF-a procjenjuje da bi nominalna deprecijacija tečaja kune od 10% inicijalno predstavljala neto troškovni udar na nefinancijski sektor ekonomije od 7% BDP-a, čemu treba dodati i značajne gubitke u bankovnom sektoru', riječi su Rohatinskog koji i MMF-ovom analizom potvrđuje svoj stav o ispravnosti tečaja kune. Guverner HNB-a već duže vrijeme tvrdi kako se kuna mora zadržati jakom za spas hrvatskog gospodarstva. Od tri MMF-ove metode analize stanja u Hrvatskoj, dvije pokazuju kako je kuna realno precijenjena između 5 i 11%. Međutim, Hrvatska je izložena visokom riziku zbog golemog inozemnog duga i činjenice kako je veliki broj kredita i depozita vezan za eure. 'Kada se tome doda činjenica da hrvatski javni dug dostiže razinu od oko 50 posto, onda kuna mora ostati na ovim razinama', kaže Rohatinski.

Investment in joint Russian-Turkish projects to top $25 bln

2010-10-13T05:01:00.000-07:00

Moscow and Ankara signed deals on Wednesday which their leaders hope will bring over $25 billion in mutual investment. Russian President Dmitry Medvedev paid an official visit to Ankara on Wednesday to sign deals including on the construction of Turkey's first nuclear power plant and the Samsun-Ceyhan oil pipeline. "Overall investments...we plan to amass as a result of the signed deals in excess of $25 billion," Medvedev said, adding that deals will "provide new opportunities for both Turkey and Russia." "Above all [the signed deals] will benefit our energy security which has become increasingly important these days," Medvedev said. Russian Deputy Prime Minister Igor Sechin told journalists in Ankara that over $20 billion will be invested in the construction of Turkey's first nuclear power plant. An international consortium consisting of Russia's nuclear power equipment and service export monopoly Atomstroyexport, electricity export company Inter RAO UES and Turkish Park Teknik won a tender for the construction of Turkey's first nuclear power plant in June 2009."The nuclear energy deal opens a new page in cooperation between our states," President Medvedev said. The consortium proposed building four nuclear power units with a capacity of 1.2 GW each under a Russian project. The nuclear power plant was expected to be built near the Mediterranean port of Mersin in the Akkuyu area and put into operation in 2016-2019.The Russian deputy premier added that some $3 billion will be invested in the construction of the Samsun-Ceyhan pipeline, currently being built by the Turkish holding Calik Energy and Italy's ENI. Medvedev said the construction of the 700-km (435-mile) pipeline through Turkey with a capacity of 60-70 million tons of oil a year (1.2-1.4 million bbl/d), remained one of the top priorities for the two states. The pipeline will stretch from the Black Sea city of Samsum to the Mediterranean city of Ceyhan in the country's south. "The sides have agreed to actively develop it [the Samsun-Ceyhan project], including the possible construction of an oil refinery in Ceyhan," he said, adding that the two states may agree to jointly sell the refined oil in the future. The deals are in line with Turkey's plans to buy most of the oil and gas it needs from Russia. "As for the export of gas and oil to Turkey, Russia will cover 70% of Turkey's needs for these energy sources and now we are taking efforts to implement these undertakings," Turkish Prime Minister Recep Erdogan said during a joint press conference after his meeting with Medvedev. To oversee the largest joint projects, the two states have set up a top-level cooperation council, co-chaired by Medvedev and Erdogan. The two states also signed a bilateral visa-free travel deal, scrapping visas for tourists who enter Russia or Turkey for the period of 30 days or less. The deal is expected to come into force simultaneously with a readmission agreement. Turkey remains one of the most popular tourist destinations among Russian tourists, with almost 2.5 million Russian nationals visiting the country last year. ANKARA, May 12 (RIA Novosti)

Broj korisnika interneta u svijetu premašio milijardu

2009-04-17T02:43:00.000-07:00

Analitička kuća Comscore navodi da se njihova procjena temelji na korisnicima interneta starijim od 15 godina koji koriste svoja ili službena računala. Broj korisnika interneta u svijetu u prosincu prošle godine prmašio je milijardu, a najviše ih ima u Kini, objavila je u svojoj analizi američka analitička kuća Comscore. Probijanje granice od milijardu korisnika interneta u svijetu ova analitička kuća smatra važnim graničnikom u povijesti interneta. Istisnki broj korisnika interneta je još veći, jer Comscore navodi da se njihova procjena temelji na korisnicima interneta starijim od 15 godina i koji koriste svoja ili službena računala. U obzir nisu uzeti korisnici koji internet upotrebljavaju preko javnih računala, na primjer u knjižnicama ili internetskim kafićima, niti oni koji internet koriste preko mobitela ili dlanovnika. Comscore navodi da se 41 posto od spomenute milijarde korisnika nalazi u azijsko-pacifičkoj regiji. Slijedi Europa (28 posto), Sjeverna Amerika (18 posto), Latinska Amerika (7 posto) te Bliski istok i Afrika (5 posto). Po državama na prvom je mjestu Kina, u kojoj se internetom u prosincu služilo gotovo 180 milijuna ljudi. Slijede SAD (163 milijuna), Japan (60 milijuna), Njemačka i Velika Britanija (po 37 milijuna) te Francuska (34 milijuna). (Bankamagazin)

Croatia open for business

2009-02-11T06:31:00.000-08:00

Pod naslovom "Croatia open for business" navodi se kako je liberalizacija tržišta nekretnina, ponajprije što se tiče stranih državljana, odlična vijest za sve potencijalne investitore u hrvatske nekretnine. U članku se navodi kako je u Hrvatskoj ovih dana na snagu stupila odredba iz Sporazuma o stabilizaciji i pridruživanju između Hrvatske i Europske unije, prema kojoj se državljani Unije izjednačavaju s hrvatskim građanima u pravu na stjecanje nekretnina. No bitno je uočiti da po novoj odredbi stranci mogu u Hrvatskoj kupovati nekretnine samo ako njihova zemlja nudi isto hrvatskim državljanima, navodi portal. U tekstu stoji i kako se saborska oporba protivila prihvaćanju te odredbe, ustvrdivši da "vladajući konzervativci pripremaju teren za rasprodaju najvrjednije hrvatskog resursa – obale Jadrana".

The National Bank of Serbia

2009-01-13T23:19:00.001-08:00

BELGRADE -- The National Bank of Serbia (NBS) on Tuesday sold EUR 11.9mn in the inter-banking foreign currency market. The move came in order to meet the increased demand for foreign currency, Tanjug reported. On Tuesday, the national currency (RSD) was 2.1 percent up against the euro, with the official exchange rate of RSD 92.1343 – some two dinars down on yesterday's value. On Monday, the NBS sold EUR 3mn on the inter-banking foreign currency market.
Turkish FM Ali Babacan said in Priština on Tuesday that Turkey would continue to lobby for Kosovo independence at the Organization of the Islamic Conference."Together with the other members of the international community, Turkey treated the Kosovo issue as a pressing matter from the very beginning, and it was one of the first countries that recognized its independence," Babacan said following his talks with Kosovo Prime minister Hashim Thaci.
"All that is a reflection of the relation between our two nations," he said. "We are pleased to see Kosovo become part of the international community," the Turkish foreign minister said, adding that the people in Kosovo were aware of the importance "their country had in contributing to the stability of the neighboring states and the region as a whole". He said that he had arrived on a "historic visit to Kosovo, with which Turkey has historical ties", and added that his country was interested in establishing political, economic and cultural cooperation with Kosovo. Babacan also addressed an extraordinary session of the assembly in Priština, to say that his country will continue to support Kosovo, and that it will "lift the visa regime for its citizens". "A number of Turks live in Kosovo, who have found their place in the government and the assembly, as well as in local governments," he said, and thanked the Kosovo Albanian authorities for enabling the Turks to integrate into the society. At the same time, a large number of Albanians live in Turkey, Babacan said, and added that they "influenced the issue of Kosovo to be treated with more interest".

How to Successfully Navigate Your Business through an Economic Downturn

2008-12-29T08:24:00.000-08:00

An economic downturn is a phase of the business cycle in which the economy as a whole is in decline.This phase basically marks the end of the period of growth in the business cycle. Economic downturns are characterized by decreased levels of consumer purchases (especially of durable goods) and, subsequently, reduced levels of production by businesses. While economic downturns are admittedly difficult, and are formidable obstacles to small businesses that are trying to survive and grow, an economic downturn can open up opportunities. A well-managed company can realize the opportunity to gain market share by taking customers away from their competitors. Resourceful entrepreneurs capture the available opportunities, from an economic downturn, by developing alternate methods of doing business that were never implemented during a prior growth period. The challenge of successfully navigating your business through an economic downturn lies in the realignment of your business with current economic realities. Specifically, you, as the business owner, need to renew a focus on your core clients/customers, reduce your operating expenses, conserve cash, and manage more proactively, rather than reactively, is paramount. Recommended Best Practice Activities: The Nuts and Bolts… The following list of recommended best practice activities is critical for your business' survival and for its growth during an economic downturn. The actual financial health of your particular business, at the outset of the economic downturn, will dictate the priority and urgency of the implementation of the following best practice activities. 1. Diligently monitor your cash flow: Forecast your cash flow monthly to ensure that expenses and planned expenditures are in line with accounts receivable. Include cash flow statements into your monthly financial reporting. Project cash requirements three-to- six months in advance. The key is to know how to monitor, protect, control, and put cash to work. 2. Carefully convert your inventories: Convert excess, obsolete, and slow-moving inventory items into cash. Consider returning excess and slow-moving items back to the suppliers. Close-out or inventory reduction sales work well to resize your inventory. Also, consider narrowing your product offerings. Well-timed order placement helps to reduce excess inventory levels and occasional material shortages. The key is to reduce the amount of your inventory without losing sales. 3. Timely collection of your accounts receivable: This asset should be converted to cash as quickly as possible. Offer prompt payment discounts to encourage timely payments. Make changes in the terms of sale for slow paying customers (i.e. changing net 30 day terms to COD). Invoicing is an important part of your cash flow management. The first rule of invoicing is to do it as soon as possible after products are shipped and/or after services are delivered. Place an emphasis on reducing billing errors. Most customers delay payments because an invoice had errors, and therefore, will not pay until they receive a corrected copy. Email or fax your invoices to save on mailing time. Post the payments that you have received and make deposits more frequently. The key is to develop an efficient collection system that generates timely payments and one that gives you advance warning of problems. 4. Re-focus your attention on your existing clients/customers: Make customer satisfaction your priority. A regular review of your customers' buying history and frequency of purchases can reveal some interesting facts about your customers' buying habits. Consider signing long-term contracts with your core clients/customers which will add to your security. Offer a discount for upfront cash payments. The key is to do what it takes to keep your current customers loyal. 5. Re-negotiate with your suppliers, lenders, and landlord: i) Suppliers: Always keep your negotiations on the level of need, saying that your company has reviewed its cost structure and has determined that it needs to lower supplier costs. . Tell the supplier that you value the relationship you have developed, but that you need to receive a cost reduction immediately. Ask your supplier for a lower material price, a longer payment cycle, and the elimination of finance charges. Also, see if you can buy material from them on a consignment basis. In return for their price concessions, be willing to agree to a long-term contract. Explore the idea of bartering as a form of payment. ii) Lenders: Everything in business finance is negotiable and your relationship with a bank is no exception. The first step to successful renegotiations is to convince your lenders that you can ultimately pay off the renegotiated loan. You must point out to your lenders why it would be in their best interest to agree to a new arrangement. Showing them your business plan and your action plan that includes your cost-savings initiatives, along with "the how" and "the when" of the implementation of your plan is the best way to achieve this goal. Explain to them that you will need their cooperation to insure that you can survive, as well as, grow your business during the economic downturn. Negotiated items include: the rate of interest, the required security to cover the loan, and the beginning date for repayment. A beginning date for repayment could be immediate, within several months or as long as a year. The key is to realize that your lender will work with you, but that frequent and continual communications with them is critical. iii) Landlord: Meet with your landlord. Explain your need to have them extend the term of your lease at a reduced cost. Make sure you have a clause in the lease agreement that entitles you to have the right to sublet any or all of the leased space. 6. Re-evaluate your staffing requirements: This is a very critical area. Salaries/wages are a major expense of doing business. Therefore, any reduction in the hours worked through work schedule changes, short-term layoffs or permanent layoffs has an immediate cost saving benefit. Most companies ramped up hiring new employees in the good times, only to find that they are currently overstaffed due to slow sales during the economic downturn. In terms of down-sizing your staff, be very careful not to reduce your staff to a level that forces you to skimp on customer service and quality. Consider the use of part-timers or the current trend of outsourcing certain functions to independent contractors. 7. Shop for better insurances rates: Get quotations from other insurance agents for comparable coverage to determine whether or not your present insurance carrier is competitive. Also, consider revising your coverage to reduce premium costs. The key is to have the right balance-to be adequately insured, but not under or over insured. 8. Re-evaluate your advertising: Contrary to the other cost-cutting initiatives, evaluate the possibility of increasing your advertising expenditures. This tactic realizes the advantage of the reduced "noise" and congestion (fewer advertisers) in the marketplace. The downturn period a great opportunity to increase brand awareness and create additional demand for your product/service offerings. 9. Seek the help of outside advisors: The use of an advisory board comprised of your CPA, attorney, and business consultant offers you objectivity and provides you with professional advice and guidance. Their collective experience in working with similar situations in past economic downturns is invaluable.
10. Review your other expenses: Target an across-the-board cost-cutting initiative of 10-15%. Attempt to eliminate unnecessary expenses. Tightening your belt in order to weather the downturn makes practical, financial sense. Proactively managing your business through an economic downturn is an enormous challenge and is critical for your survival. However, through well-planned initiatives, an economic downturn can create tremendous opportunity for your company to gain greater market share. In order to take advantage of this growth opportunity, you must act quickly to implement the above best business practices to continue realigning and resizing your company to the current economic conditions. Terry H. Hill

How to Successfully Navigate Your Business through an Economic Downturn

2008-12-18T03:54:00.000-08:00

Invest In Yourself – Your Career, Future Income Stream, Education And Training

2008-11-14T05:22:00.000-08:00

The advice often given to young couples starting off in life is “Not to buy what you cannot afford”. The same basic advice should be heeded by many. If you cannot afford it- then do not buy the item. But what of investing in your own future in terms of an investment in your personal education or training as well as investments in your own personal career. Is this not getting ahead in life? Is this not money well spent? Even if you have to borrow and go into debt is this not money well spent? If at the end of the day , year or decade you will be much further ahead in position , salary as well as benefits in addition to “job” and “personal” satisfaction is this not money, time and effort well spent and allocated. ? Indeed it is and can well be. In the case of your education a dollar borrowed now will result in better jobs- that you will most likely find more challenging and enjoyable , and have a lot more financial reward than a job on the status scale – say as a bus driver or a technician doing oil jobs at your local Wal-Mart. In the case of a vehicle or car loan it may be a godsend. If your vehicle is not reliable – then how can you show up on time, keep your job without an image and reputation of reliability? Not only do you want to keep your employment and income associated with the job but also the job references from your employment superiors for use with other employers for better positions and pay, or for promotion within your present organization. You may even run into a case of promotion within your present firm to another branch office or plant. Not having reliable transport may limit your promotion offerings and flexibility. In addition, if you take out a loan to purchase that vehicle, you may well have upscaled and upgraded your car or SUV, from the models that you most likely would have purchased. By doing so, and driving a higher grade auto model, you may well appear as a more established, senior, more experienced and established employee as well as individual. Fortunately or unfortunately in life most comes down to appearances and perceptions. There may be a much better and / or better paying job but its way across town, or in an area not served by the bus transit system. Or it may be the case that there is bus service - but if devours a good two to three hours a day of travel time. Good bye to your personal social life. You may have all the money in the world – the wealth of Bill Gates Himself and yet no time or energy to enjoy it. So much for all that pay of that new wonderful job.

How To Write A Successful Business Plan

2008-11-14T05:10:00.000-08:00

Whether you are planning to start a brand-new business, expand an existing company, or get financing for a business venture, you will need to write a business plan. A business plan not only lends your business a sense of credibility, but also helps you to cover all your bases, increasing your chances of success. Although writing a business plan can be a lengthy, intimidating project, it is not necessarily difficult. Here is an overview of how to write a successful business plan. What to Include in Your Business Plan Your business plan needs to demonstrate that you have thoroughly considered all aspects of running your business. To that end, the standard business plan has nine major sections, covering everything from your business’s mission statement to a detailed financial analysis. Executive Summary The first – and most important – section of your business plan is the executive summary. This section is so important that it should literally be the first thing the reader sees – even before the table of contents! However, it should also be written last, as you’ll have a better understanding of the overall message of your business plan after you’ve researched and written the other sections. One of the most important parts of the executive summary is the mission statement. The mission statement is only three or four sentences long, but it should pack the most punch out of everything else in your business plan: Those four sentences are responsible for not only defining your business, but also capturing the interest of your reader. The rest of your executive summary should fill in the important details that the mission statement glosses over. For instance, your executive summary should include a short history of the business, including founder profiles and start date; a current snapshot, listing locations, numbers of employees, and products or services offered; and a summary of future plans and goals. This section is a candidate for a bulleted format, which allows you to list main points in a manner that is easy to scan. Avoid using too much detail – remember, this section is a summary. A page or two is usually sufficient for an executive summary. Market Analysis The next section of your business plan focuses on market analysis. In order to show that your business has a reasonable chance for success, you will need to thoroughly research the industry and the market you intend to sell to. No bank or investor is going to back a doomed venture, so this section is sure to fall under especially close scrutiny if you are looking for financing. Your market analysis should describe your industry, including the size, growth rate, and trends that could affect the industry. This section should also describe your target market – that is, the type or group of customers that your company intends to serve. The description of your target market should include detail such as: • Distinguishing characteristics • The needs your company or product line will meet • What media and/or marketing methods you’ll use to reach them • What percentage of your target market you expect to be able to wrest away from your competitors In addition, your market analysis should include the results of any market tests you have done, and an analysis of the strengths and weaknesses of your competitors. Company Description After your market analysis, your business plan will need to include a description of your company. This section should describe: • The nature of your business • The needs of the market • How your business will meet these needs • Your target market, including specific individuals and/or organizations • The factors that set you apart from your competition and make you likely to succeed Although some of these things overlap with the previous section, they are still necessary parts of your company description. Each section of your business plan should have the ability to stand on its own if need be. In other words, the company description should thoroughly describe your company, even if certain aspects are covered in other sections. Organization and Management Once you have described the nature and purpose of your company, you will need to explain your staff setup. This section should include: • The division of labor – how company processes are divided among the staff • The management hierarchy • Profiles of the company’s owner(s), management personnel, and the Board of Directors • Employee incentives, such as salary, benefits packages, and bonuses This goal of this section is to demonstrate not only good organization within the company, but also the ability to create loyalty in your employees. Long-term employees minimize human resource costs and increase a business’s chances for success, so banks and investors will want to see that you have an effective system in place for maintaining your staff. Marketing and Sales Management The purpose of the marketing and sales section of your business plan is to outline your strategies for marketing your products or services. This section also plans for company growth by describing how the growth could take place. The section should describe your company’s: • Marketing methods • Distributions methods • Type of sales force • Sales activities • Growth strategies Product or Services Following the marketing section of your business plan, you will need a section focusing on the product or services your business offers. This is more than a simple description of your product or services, though. You will also need to include: • The specific benefits your product or service offers customers • The specific needs of the market, and how your product will meet them • The advantages your product has over your competitors • Any copyright, trade secret, or patent information pertaining to your product • Where any new products or services are in the research and development process • Current industry research that you could use in the development of products and services Funding Request Only once you have described your business from head to toe are you ready to detail your funding needs. This section should include everything a bank or investor needs in order to understand what type of funding you want: • How much money you need now • How much money you think you will need over the next five years • How the money you borrow will be used • How long you will need funding • What type of funding you want (i.e. loans, investors, etc.) • Any other terms you want the funding arrangement to include Financials The financials section in your business plan supports your request for outside funding. This section provides an analysis of your company’s prospective financial success. The section also details your company’s financial track record for the past three to five years, unless you are seeking financing for a startup business. The financials section should include: • Company income statements for prior years • Balance sheets for prior years • Cash flow statements for prior years • Forecasted company income statements • Forecasted balance sheets • Forecasted cash flow statements • Projections for the next five years – every month or quarter for the first year, with longer intervals for the remaining years • Collateral you can use to secure a loan The financials section is a great place to include visuals such as graphs, particularly if you predict a positive trend in your projected financials. A graph allows the reader to quickly take in this information, and may do a better job of encouraging a bank or investor to finance your business. However, be sure that the amount of financing you are requesting is in keeping with your projected financials – no matter how impressive your projections are, if you are asking for more money than is warranted, no bank or investor will give it to you. Appendices The appendix is the final section in your business plan. Essentially, this is where you put all of the information that doesn’t fit in the other eight sections, but that someone – particularly a bank or investor – might need to see. For instance, the market analysis section of your business plan may list the results of market studies you have done as part of your market research. Rather than listing the details of the studies in that section, where they will appear cumbersome and detract from the flow of your business plan, you can provide this information in an appendix. Other information that should be relegated to an appendix includes: • Credit histories for both you and your business • Letters of reference • References that have bearing on your company and your product or service, such as magazines or books on the topic • Company licenses and patents • Copies of contracts, leases, and other legal documents • Resumes of your top managers • Names of business consultants, such as your accountant and attorney Writing a Successful Business Plan Despite the quantity of information contained in your business plan, it should be laid out in a format that is easy to read. Just like with any piece of business writing, it is important to craft your business plan with your intended audience in mind – and the bankers, investors, and other busy professionals who will read your business plan almost certainly won’t have time to read a tedious document with long-winded paragraphs and large blocks of text. Business plans for startup companies and company expansions are typically between twenty to forty pages long, but formatting actually accounts for a lot of this length. A strong business plan uses bullet points throughout to break up long sections and highlight its main points. Visuals such as tables and charts are also used to quickly relay specific information, such as trends in sales and other financial information. These techniques ensure that the reader can skim the business plan quickly and efficiently. Think of your audience as only having fifteen minutes to spend on each business plan that comes across their desks. In that fifteen minutes, you not only have to relay your most important points, but also convince the reader that your business venture merits a financial investment. Your best bet is a well-researched business plan, with an organized, easy-to-read format and clear, confident prose. by: Jason Kay