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Posts Tagged ‘recession’

Despite a strong fourth quarter of 2008 online personals sites like Match dot com and Yahoo Personals are now starting to feel the pinch of an prolonged Recession. Approximately one year ago online dating sites were touted as being in a Recession proof business, however times have changed and the large online dating sites are finally attempting to change with them. There are several reasons why these types of sites are now starting to feel the sting of this economic situation.

One of the reasons it took so long for these sites to catch on was the fact that most online dating sites were still earning revenue from members who signed up for extended memberships. When extended memberships ran out and members did not renew their online dating subscriptions, the revenue that the large matchmaking sites were generating began to drop.

This is a positive development for anyone who is currently debating whether to purchase an online dating membership. Internet personals sites are offering additional incentives than ever before, especially to first time members. Match.com is offering discounted subscriptions and new members can take advantage of Yahoo Personals free trial offer.

Even now as the economy seems to be coming out of the Recession, there are opportunities for savvy online consumers to shop smart and win whether it comes in the form of a free online dating site membership or some other fashion. Despite what some internet dating review sites said earlier in the year, even the romance business has not been immune by our most recent Recession. There are still opportunities for good deals and now is the time to take advantage of the ones you find. It is up to the consumer to take the bull by the horns and reap the benefits that this current economic situation has provided. There is no way to know how long these deals will last.

Many people who are interested in starting a home business assume that because the country is in a major recession right now, this is not the time; however, I ask you to consider the facts:

1. With most of the important decisions in life, e.g., getting married, having a child, starting a business – there is never a “right” time; there is only today.

2. If you want to be wealthy, you need to own your own business – 93% of the wealthy do.

3. In 2006, Fortune magazine called direct selling, including network marketing, “the best kept secret in the business world” with a 91% growth over the previous 10 years. It has a market of $30 billion in the United States and $100 billion worldwide. By 2012, that number will likely reach 6 billion.

4. Financial experts call network marketing a “recession proof” industry.

5. Warren Buffet called his purchase of a network marketing company the best investment he’d ever made.

6. Tom Peters, author of In Search of Excellence, called it the first truly revolutionary marketing shift in the past 50 years.

7. When you work from home, you don’t have to worry about the high costs of gas, parking or daycare for your children.

8. There are significant tax advantages from owning an online business.

9. Internet businesses are generally easy to start. Just bring some basic language skills and the ability to point, click and follow directions.

10. The internet puts you in control; no more hoping your boss will give you a raise or promotion, no more hoping you won’t be included in the next round of job cuts – plus, the upside is incredible! The upside potential is great.

Affiliate marketing programs are probably the best paths to start an online firm, and a lot of them also include coaching per the product that you will be promoting for them.

The problem with most online opportunities is that their coaching is narrow, and typically targeted only on teaching you regarding their product (s). Sadly, you’ll require more information than that.

One superb starting place for gathering all the rest of the knowledge about internet marketing that you’ll need is to join the Online Success for Beginners course.

Thousands and thousands of new businesses will start in the next year, despite the recession. Is this the right time for you to join them? Isn’t it time to leave the pressures of the 9-5 job behind you?

Carpe Diem! Take advantage of opportunities as they present themselves! This is the time to start a home business .

Risks to Your Retirement Income

Assuming you’re part of the Baby Boomer Generation, you’re likely evaluating stopping work – provided that you haven’t already started your retirement.  Even if you have previously left work, you’re probably wondering whether you’re financially able to afford to stay retired.

Recent financial crisis compounds the retirement question substantially by compounding some significant retirement oriented economic variables:

1. Life Expectancy Has Grown

Today, life expectancies are longer than their parents’ generation. For example, in 1970, a 60-year old Caucasian male would have had a life expectancy of an additional 16.2 years; but, by 2008, his life expectancy had climbed to 20 more years of life.

So how is the retiree going be able to afford retirement during those bonus 3.8 years? There are only a few likely solutions:

> Expedite current savings

> Work more years

> Live with with children or other family members

> Get by with a reduced standard of living

2. Rising Health Care Costs

Adequately funding one’s medical care coverage are some of the most difficult financial activities, largely because requirements are so person-specific, with needs varying greatly from one person to another. Long-term care needs are even harder to predict and arrange adequate funding.

Medical expenses have grown at a rate greater than 5% (inflation adjusted) for the past 15 years – a rate that is greater than the growth in family income. Medicare costs will probably rise as well similarly.

3. Legislative Changes May Affect Retirement Income & Benefit Programs

It has been widely reported that the expenses associated with the major entitlement programs (e.g., Social Security, Medicare, and Medicaid) are growing faster than other sectors of the economy, and some experts question the long-term feasibility of these programs because of the cumulative effects of increased longevity, size of the Boomer population, and rising health care expenses in general.

Further, current questions concerning continued health insurance during retirement, and at what benefit levels, are wide-spread in today’s depressed economy – and these questions are given even more fuel by the reorganizations occurring, especially among the auto industry.

We are still witnessing a lot of conversation about a national health care system – but such conversations have been ongoing for decades, with few results to show for those efforts. Although President Obama will be leading such efforts this year, many people anticipate a lot of opposition from Congress.

Many expect that seniors over age 55 will be exempted from reductions in these social programs, but providing full coverage for them is a two-edged sword – doing so increases the likelihood of a new tax, which would likely add to retirement tax burdens.

4. Sometimes One’s Retirement Date is Dictated, and not Totally Up to the Individual

Per the 2004 Health and Retirement Survey (HRS), 37% are forced to retire due to bad health or economic downturns, etc.

5. 401Ks Became 201Ks

Did your retirement savings (including your 401k) take a major hit with the stock market meltdown in 2008? My investments were deeply affected. Many comedians now refer to 401Ks as 201Ks because of the drop in the stock market. For many people, their 401k was the bulk of their retirement savings, so this stock market meltdown substantially damaged their retirement plans.

Humpty Dumpty Was No Financial Planner

But, the news is not all bad. You can fix a broken “nest egg”.

You can work longer, semi-retire and take a part-time job, work from home, start your own business, etc.

If you’d like to start an online business, but are hesitant because you’re not an internet expert, one excellent place to start for gleaning all the understanding about internet marketing that you’ll need to be successful is to join the Online Success for Beginners course.

A study by Butrica, Smith and Steuerle (2006) indicated that working just one (1) extra year can enhance annual retirement income by 9%, while working a total of five (5) extra years can generate an extra 56% annual retirement income.

If you’d like to find out how to generate a second income, so that you can have a comfortable, financially secure retirement, check out Darren Salkeld’s new MaxPro Marketing System and get his FREE Report and FREE Audio describing the age-old secrets of creating wealth.

Recession Indirectly Affects Other Large Industries

As this nation remains in one of the most serious recessions in the past {forty years, there are many industries that are adversely affected, but go undiscussed~Many industries and local businesses are struggling indirectly because of this nation’s economic recession~The largest recession that U.S. residents and companies have seen in the past 5 decades continues to indirectly affect many industries}.  The main focus has been on the housing market, financing, stock market, and the banking business.  Many major U.S. owned businesses, that employ millions of Americans, are also being affected by the recent decrease in these huge industries.

On of the most affected areas of the U.S. is Phoenix, Arizona, which experts will agree has endured great losses in home values.  Loan applicants are quickly finding out that their home is valued at tens of thousands of dollars less than what it was just 24 months before.  Loss of equity has caused many homeowners to just walk away from their homes, in fact, bank repossessions are at their highest ever. 

For those people who are not affected by unemployment, housing market decline, and stock market woes – they quickly find out they are incorrect.  When most homeowners desire to make enhancements to their homes, they require the need for financing or some sort of financial assistance.  This home improvement loan generally comes from a local bank, credit union, or credit agency.  Swimming pool, landscape, and home improvement companies have not had the fortune of getting it’s prospecting buyers approved for these loan programs.

The pool and spa industry in Phoenix has been one of the largest industries hit, since financing a swimming pool was the obvious decision for over 65% of pool and spa customers.  If financial assistance is not obtained, swimming pool and construction companies end up losing the job, or selling a job that is much lower than anticipated.  Arizona pool companies have suffered tremendously with the decrease in the economy and lack of financing – sometimes even closing their companies, down-sizing, or diversifying into other markets.  By offering a wider range of construction services, such as pool remodels, landscaping, and hardscaping, Motivated pool and spa companies are generating extra revenue.  General contractors have completely gone into other fields, such as sales, marketing, or consulting.  In an attempt to produce extra money, many Arizona Landscape Companies are expanding into fields such as water features, paver patios, Phoenix fireplaces , and outdoor kitchens.

Unique Landscapes and Custom Pools, a pool and landscaping Phoenix contractor, figured out how to diversify it’s products and services many years ago.  As a Phoenix pool contractor, licensed general contractor, and landscaping contractor, Unique is able to offer their clients many different options when it comes to home improvement.  “By diversifying several years prior into swimming pools, landscaping and general contracting, our business has been able to keep our heads above water during these challenging times.  However, the major drawbacks have been the simple fact that these loan programs are simply not available to the average homeowner.”

“It’s difficult to think about all the money that was given to banks just a year ago for these types of loans, and now it’s difficult for our customers, who want to buy our products, to get this money” claims business owner Chris Griffin, of Unique Landscapes and Custom Pools in Mesa, AZ.  Maybe it’s time for the government to look a little further into some of the struggles of the smaller companies that are greatly affected by this struggling economy.  “I don’t see the light at the end of the tunnel yet, but I can tell it’s there….” claims Griffin, “Pool loans Phoenix are getting a little better”.

Many people believe that we may be through the worst of this current economic downturn, or perhaps they are just saying this in an attempt to restore some confidence back into the system. Over the last couple of weeks I have been asking my business contacts whether they have started to see any of those green shoots, the famous starting sign of a recovery. Here is what they said:

Out of all of the people that I asked or surveyed for want of a better word only fifteen percent stated that they had seen the first signs that things were starting to improve. I have to say that I had expected and had hoped for a much higher percentage than this. I personally do think that things are starting to slowly improve, with slow being the operative word. This recession has cut quite deep and any wound this deep can not heal overnight.

The most alarming statistic was that three fifths of the people surveyed stated that the situation had become even worse; this is obviously not a good sign.

I am by no means an expert in the field of the economy however I do have a number of business interests including ones where people are able to obtain cheap calls and also with a group of cost reduction consultants. My main expertise however is with helping people to overcome their stuttering speech impediments.

So when can we expect the recovery to really start in earnest? Well this answer is, of course, very difficult to answer and calling the bottom of the market can only ever be guess work. I will however give my opinion, for what it’s worth. I have my own opinions that 2009 will continue to be a struggle, that we will see improvements in 2010 and that 2011 may well be a much more fruitful year.

The above opinion is given due to what we already know, if there is a lot more bad news out there of which we have not yet been told of then this opinion will no doubt have to be reviewed.

When Will This Credit Crisis Ease?

They talk about the green shoots of recovery; well I have not seen any, have you? I personally think that it is a form of increase confidence trick; an attempt to make people believe that the worst of this current recession is over.

They, and when I say they I am talking about the Government and business leaders, are no doubt hoping that this new confidence (false as it undoubtedly is) will spur people on to start spending money again; to start buying houses etc. Until these so called “leaders” realise that this crisis will only start to ease when the banks and building societies start to lend money again, the better. I am already started to read reports about the ways in which these bankers have returned to their greedy bonus culture? The bigger question is why are the Government allowing them to make the same mistakes again when we, the taxpayer, are the major shareholder? What our great country needs is a strong hand at the top, a person who can be a “real leader”.

Now I am not some financial whizz kid who thinks he has all of the answers. I am in fact just an average working class guy from the UK who runs a web promotion company and who also has a partnership in a company that offers a professional DVD duplication service. I do however watch and listen in amazement at times when I see what some of the politicians and greedy bankers say – they really are not in the real world – they probably would have absolutely no idea as to the average cost of a pint of milk or loaf of broad – they are complete jokers and a waste of space.

I personally believe that this current credit crisis will last until the end of 2010, at least. I know that this seem rather negative but it is just my opinion on the situation. With a stronger leadership this would no doubt change but while the Labour cronies continue to bicker and squabble what chance have we got? Bring in Vince Cable I say as the new Labour leader!

The current recession is causing a definite shift in consumer behaviour. During the boom years of the past decade, we saw a huge number of small startup businesses trying to compete with the big boys. Lots of these companies are been over night success stories online. Then consumers were used to choice and less demanding of reliability in their brands, they wanted the cheapest items and they wanted them now. Things have changed however and hundreds of website companies are going under, the fall out of which is a growing lack of customer confidence. What this means is that people are going back to preferring known and recognisable brands, even if it means spending a little more.

Yet at the same time job insecurity and redundancy are causing more and more people to consider starting up their own business and becoming self-employed. With around 98,000 new business being created every three months, the competition isn’t getting any smaller. It can be a thankless route to success. When you take into account that around 80,000 new businesses failed during the same time period, kind of puts it into perspective doesn’t it!

For me, without a doubt many startups fail because they underestimate the importance of branding. When a customer hits your website, what does your logo say about your business. This is your window to the word, it says everything about you and what you stand for in the blink of an eye, it needs to be right. But it’s so often the case that startup owners put off paying professional logo design in the initial stages. It seams to be a matter of “Lets wait and see what happens, then we will design something”.  In the meantime they try and do it themselves, or get an amateur “designer” friend to design a logo. Many new companies unfortunately opt for cheap Vista Print Logos or free clip art to design their brand.

Brands shouldn’t underestimate the importance of their image. Businesses, big or small need to appear strong enough to survive this economic crisis.In the middle of a recession, most consumers are nervous about who to trust, so a brand needs to demonstrate that they are trustworthy and dependable. New websites need to appear to be much bigger than they actually are to survive. As I’ve touched on above, people nowadays are more and more attracted to bigger brands and bigger companies. And finally, a good image will make it more likely for customers you do have to refer you to their friends and family.

The bottom line is this. About 50% of all new start-ups are forced into bankruptcy within only a few years. Many experts say that one of the top causes of business failure online is bad marketing. A custom logo design helps you create the right image for this marketing to succeed. So do yourself a favour – start looking at some sample logos in your industry and see what the successful ones have in common.Find yourself a professional designer who can carve out a unique identity for your brand and ensure its success in such a stormy climate.

It’s one of the indicators of a ‘proper’ recession when the general public starts to rethink strongly held views on what they once ‘couldn’t live without’. A study by Pew Research Center of a wide sample of American households looked at what appliances were taking a hit in the credit crunch. They posed the question “which of these are a luxury you could live without and which are a necessity?” in relation to a list of everyday appliances and objects. The list ranged from cars to air conditioners to microwaves to cell phones.  There were a few surprising results that showed the impact that this recession is having on how we think about our most treasured possessions.The number of people who considered a microwave a luxury item went up by a fifth compared to the last survey. Having a home or portable air conditioner stopped becoming a luxury for 16 percent of people asked compared to a few years ago. Maybe the most surprising result was the fact that 12% less people considered a TV to be a necessity in the home.  It was technological gizmos such as cellphones, high speed internet connections and flat screen TVs that were the ones not to take a hit in the rankings, suggesting that these have become the new necessities of our time.

To be honest many of the results don’t surprise me all that much.You only have to ask around to friends and family to see that frugality is becoming key as we live in fear of rising prices, reduncancies and difficulties in obtaining credit. I suppose from now on it will be about spending the minumum necessary to get by. Having a ceiling fan instead of air conditioning during the hot summer we have coming ahead. Sticking with the bedroom furniture or fridge freezer you’ve been promising to replace for one more year. Using public transport, or walking or cycling instead of driving to cut petrol bills. In my opinion these kinds of things aren’t going to make a big difference to our overall quality of life. The scary thought lurking around the corner, however, is that this is only the beginning and will really start affecting our quality of life.  Maybe at that point people will start to think about all the billions we pay in taxes that gets spent on war, bank buyouts and corporate kickbacks, and start to demand some real change in our society.

It is simply crazy. Not only is the credit crunch tightening people’s budgets and purchasing power, but heating bills are taking an increasing chunk of available income.Those from lower income backgrounds, particularly old people, are the ones who are especially at risk in terms of health. During the big temperature freezes of the past winter, it was they who needed to keep warm the most. But it is exactly these people who are increasingly struggling to heat their homes.

We constantly hear advertising campaigns by multinational oil companies as well as government departments talking about Green, Renewable Energy. It is meant to be the solution to the problems of our world. You can save money and save the world at the same time – its just perfect. Secure in this righteous ideal they invest in wind farms and win votes, all in the name of benefitting society as a whole.

But there’s something fishy about the way the “green energy” issue is used, exemplified by the recent proposal by UK energy secretary Ed Milliband. The “Renewable Heating Incentive” is a plan to build more wind turbines and solar panels to replace fossil fuel energy sources. But they’re not going to ask the energy companies to invest in these desperately needed energy sources. It is going to be the bill payer who has to pay for this! The government intends to introduce a levy for companies depending on how much energy from fossil fuels they provide. However the energy corporations intend to force their customers to pay this levy, by increasing our heating bills.

The price of gas incresed by nearly sixty percent in the past year, and electricty costs went up by over a quarter. This meant that millions had to think twice about switching on their portable heaters. In the midst of increasing poverty, the “go green” banner has been used as a solution for families to ease hardship by paying less for energy bills. However if this idea is brought in it will harm precisely those who are struggling. Ultimately what will happen is only the more well off households will realistically be able to afford making the required ecological energy improvements and switch to green energy. But if you can’t, and resort to using fan heaters or oil filled radiators to warm your house when the temperatures drop, you’ll be hit with higher energy bills. The same will be true even if you factor in the low interest loans scheme that is supposedly aimed at making it more affordable for people to go greener. It’s unlikely that a family that is already struggling to pay their gas and electic, not to mention interest on existing debts, will be willing to take on more debt, whetever the interest rate may be. If the introduction of university student loans have taught us anything, its that offering low interest loans only make these schemes more appealing to the middle classes.

Now tell me, does this seem fair to you? Surely it would be much better to force energy corporations to give up a small percentage of their enormous profits to pay for this scheme.They could then use this significant sum to subsidise green refubishment on lower income houses, so that they can benefit from reduced heating bills. I would be interested to hear your thoughts on this.

The deeper we get into this recession the more businesses and organizations are having to be clever with their finances to avoid going bust. Something that’s not often considered is holes in the way your business does its accounts which can lead to asset leakage. If you ensure that you have a grasp on what’s happening with your fixed assets, chances are you’ll be able to make significant savings and boost your profits for relatively little effort.

What is a fixed asset?

Let’s begin by defining what fixed assets are. Businesses have two kinds of assets. Tangible or fixed assets are things like equipment, machinery, computers, buildings or land. Basically things you can reach out and touch, and are worth something. The assets you can’t touch are called, unsurprisingly, intangible assets – such as trademarks or patents. It is tangible assets that I’m writing about in this piece.

What’s the point of worrying about my fixed assets?

You need to know about them, fundamentally, because its illegal not to – it needs to be part of your tax return. If you don’t know about them you could get in trouble. More to the point, the more you know about them, the more money you could save. That means knowing  where they are, how much they’re worth, and how much their value is depreciating. In a sense asset tracking is a way for a business faced with financial hardship to pull cost savings ‘out of thin air’.

How do you track these pesky assets?

Step One is simply auditing your fixed assets and recording them in an asset register. Given that this needs to be submitted with your taxes, chances are you’ve (hopefully!) already done this in some form. Most commonly this is recorded on a humble spreadsheet, but increasingly savvy organisations are using more sophisticated asset management software. Beyond simply auditing and recording items in your asset register, you need to be able to track each and every asset. By tracking I mean keeping a constant record of its location, movements, state of repair, value, etc.  Now when you’re a mom and pop business working out of your living room that’s a case of glancing round the room and scribbling on a Post-It note.However this task becomes more difficult when you’re talking about medium to large organizations. And this is where dedicated asset management software really comes into its own. It takes the brain-ache out of the process by bringing everything together – from accounting through tracking and maintance. And most importantly, if you go with a decent system it will tell you exactly where your business can save big bucks. For my money, as an investment, it’s a no-brainer.