Personal Finance: 4 Reasons Our Students Should Learn it in School

When people don’t have a basic understanding of personal finance, the results can be devastating. The negative impacts aren’t just felt by the individual, but also by their family members and community. If students were learning personal finance in school, they wouldn’t find themselves in these terrible positions as adults. Still not convinced? Here are 4 reasons students must learn personal finance.

1. It is a Practical Life Skill

Not only is understanding personal finance a necessary life skill, it is a skill that kids need to learn as early as possible. By the time they are 16, many kids own cars, have jobs, and bank accounts. This means budgeting for gas and car insurance, reconciling bank statements, tracking expenses, and filling out tax forms. Once they are 18, students may be renting apartments and receiving credit card offers. There are students who will receive help and guidance from their parents on these matters, but unfortunately many will not. If these skills aren’t learned at home, they simply must be taught in the school.

2. Students Who Learn Young Are Less Likely to Develop Bad Habits

A large part of personal finance education is teaching young people to track their spending, to create and stick to a budget, and to spend money. Students also learn about credit, interest rates, and how to identify a good offer of credit and one that is predatory. These programs also teach students about investments. Ultimately, students who are well educated in personal finance know…

  • The importance of saving money for emergencies
  • How to budget so that they do not run out of money
  • The importance of investing for their retirement
  • How to determine whether or not an interest rate is fair
  • How to avoid predatory creditors such as buy here pay here retailers, pay day and title lenders, pawn shops, and high interest credit cards
  • How to set savings goals to pay for wanted items and experiences

How to resist temptation to borrow money or purchase things on credit that are not absolute necessities

3. Too Many Entities Prey on Students who Lack Financial Knowledge

It is a well known fact that finance companies target students with credit card offers. These marketing campaigns often began the moment the student turns 18. These companies use slick marketing tactics to appeal to young people. They promise students the ability to get what they want now and pay for it later, and they do so by depicting images of young people living the good life. Students are offered low introductory rates which often jump into the double digits after just a few short months. Students who do not understand how credit works can find themselves in thousands of dollars in debt by the time they graduate. Much of this can be avoided with just a bit of education.

4. Students Who Do Not Learn These Skills Are at Risk of Financial Abuse

Students who receive education in personal finance are more likely to remain in control of their own money, and they are more likely to recognize and put a stop to financial exploitation and abuse if it happens to them. This means they are less likely to fall victim to unscrupulous contractors, or duped by other con artists. Students who have this knowledge are also more likely to have their own bank accounts, and to establish a healthy credit rating. This financial independence makes it easier for them to leave abusive situations, and less likely to allow an abusive partner to control their finances.

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How to Work Out Sales Projections

In the context of business planning, it would be fair to say that producing financial projections is the most teeth-clenching, hair –tearing, sweat-inducing, sanity-defying task of them all. This is particularly true with regard to sales or revenue calculations. The business is judged by its sales, and your sales projections set the standard for profits and growth. I have been asked countless times ‘how do I predict the sales, how am I supposed to know what revenue I am going to make’? There is a fine distinction, but a very important one, between predicting sales and projecting sales. The first one allures to pure guesswork, of the gazing into a crystal ball variety. The second one, however, involves a much more scientific approach. Same difference, I hear you say – what does this mean in practical terms?

Well, the methodology involved in achieving sound sales projections usually involves some or all of the following elements:

Defining Operational Limitations

Simply put, if the business possesses only one piece of equipment capable of producing a maximum of 500 units in a week – that will define your maximum amount of weekly sales, no matter what. Similarly, you will have limitations in manpower – for example if you are a sole trader providing a service, you will only be able to put a fixed number of hours into the business, even if you assume that orders are flooding in continuously. Define all your limitations. They may involve working space size, stock turnover, transport capability or warehousing capacity. This will help you define your assumptions on which your financial projections, and in particular sales, will be based.

Defining the Market Limitations

If your target market is, for example, men in Ireland between ages of 18-24, then the maximum possible number of sales to this target group is your limitation, which has to be worked into your financial projections. Similarly, the geographical spread might be another limitation. If you are working on a local basis and your reach is a 30 mile radius, working out the maximum sales output within this area will help you define a realistic sales target, which again will help shape your financial projections. Also, undertake a thorough research of the competition. How are they doing? You can benchmark your projections against sales that are achieved by more mature players in the market, another important indication of whether your financial projections make sense in the real world.

Where does the growth come from?

Financial projections usually span over 3-5 years. Where does the growth come from? Again, if you are showing an increase in sales over time, make sure this involves sound principles. This may involve for example:

  • Introduction of a marketing campaign, resulting in higher sales
  • Introduction of an additional sales person, resulting in higher sales
  • Selling to new market segments or new markets
  • Introduction of additional product lines
  • Introduction of additional sales channels (e.g. online/offline)
  • Introduction of additional features (added value)
  • Introduction of bundled packages (added value)
  • Price increase based on e.g. greater brand recognition
  • Introduction of special lines (limited edition)

What else?

Be mindful of seasonality. If you have, for example, a tourist orientated business the bulk of the sales would be generated in the summer. Make sure your projections reflect any market trends that are specific to your product or service, include any rise and fall in demand that can be reasonably foreseen. Be mindful of technological advances and consider how they may impact and influence sales of your product or service, and ultimately – can introduction of new technologies increase your sales by increasing their appeal/adding value.

What if I have an online business?

In many ways, an online shop is very much like a physical shop. You need to be able to project how many people are likely to visit your shop, and out of those visitors, how many are likely to end up making a purchase. A good place to start is to utilise one of the many free web analytics tools ( http://www.inc.com/guides/12/2010/11-best-web-analytics-tools.html )available. Have a look at similar websites to yours and work with the numbers you extract from your research – such as the number of Unique Visitors and the bounce rate. You can use this research to work out your assumptions and limitations.

In summary, the answer to what makes a good realistic sales projections lies within the specifics of your business. Work out your limitations and what is realistic within your target market and the necessary ‘how to’ structure for your calculations will become apparent.

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Marrying Online and Offline Marketing Efforts for Success

As the world becomes increasingly dominated by the internet, more and more businesses are turning to online-only techniques to turn interested consumers into clients or customers. Newspapers and radio, the two main avenues for off-line advertising in the past, are dwindling and network TV is close on their heels.

But as the Internet continues to grow, evolve, and change, the effectiveness of both on-and-offline marketing campaigns are fluid. In fact, many current marketers may be surprised to learn that most effective approach is an integrated one, where online and off-line advertising work in tandem, converting more often than either one on its own.

An Integrated Approach

Did you know that graphic ads such as billboards and even business cards can be used to drive both organic and direct traffic to your website? According to Levy Online, a Vegas-based marketing agency, the increased recognition from billboards and television ads can provide a huge boost to branded Google searches, leading clients directly to your product or service. A prime example of this is local attorney Adam S. Kutner. Despite an incredibly saturated and competitive local market, Kutner has built online success by investing in offline ads.

Although these types of brand-building mediums differ greatly in reach and size, they share a common goal: getting eyes on your website. They should be eye-catching and give just enough information to entice people to look for more information. No one sees a billboard or picks up a business card and instantly signs a contract or makes a purchase. Consumers need time to feel comfortable with a company or professional individual before they open their wallets.

The vast majority of consumers have mobile devices with them most of the time, which provides the perfect opportunity for them to look for more information immediately. A billboard that prominently displays the website address will encourage the viewer to pick up their phone or tablet – hopefully not while driving – and get more information about what the company has to offer. A simple business card can contain a printed QR code that makes it even easier for them to find their way to your company’s site.

Radio and TV Still Potent Channels

Television shows, movies and music will never disappear as forms of entertainment for the general public (though the landscape may be shifting, with Netflix and Hulu carving out a substantial niche.) Buying ad time and put your name in front of millions of people at the same time. With a professionally crafted presentation, people should be inspired to take action based on its content. This will require a bit of an investment, both in high caliber video production and buying ad time.

The ads placed on TV or radio also need particular goals. While some companies may promote a particular product or service, most want to establish a long-term relationship with the customer or client. This allows them to sell multiple times to the same person. Using these spots to point people to the website or social media page online helps to build this type of trust and familiarity.

With so many options available to the modern marketer, integrating online and offline advertising makes sense. Not only do real-world ads, such as billboards and television commercials helps the general public recognize your company and develop a positive attitude toward it, but they can greatly increase the amount of traffic coming to your online sites. By formulating a cohesive goal, marketing techniques as divergent as a billboard and a scannable QR code can work together and lead to success.

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A taster of whats to come from Gary Brown at An Post’s #Growmybusiness 2015, Dublin & Cork

Tickets are selling fast book now: www.anpost.ie/growmybusiness

What Irish Businesses Can Learn From Michael Flatley

Every business, large or small, the length and breadth of the country, is looking to be different from its competitors in some way, shape or form. Every business wants to stand out from the crowd and be noticed, it wants to be the ‘purple cow in the field’, so to speak.

Businesses are looking to draw attention to themselves in order to attract customers. To do this, there is first a need for the business to develop a real point of difference, or as we marketers call it, a USP – unique selling point. The search for this elusive USP can be very daunting for many companies, particularly small businesses and SMEs, which tend to have limited marketing budgets and lesser resources.

The thinking seems to be that lots of money must be spent to achieve the stand out they so desire, yet this is not necessarily the case. It does, however, require a bit of thinking time. This thinking time should focus on ‘trying to do different things, rather than trying to do things differently’. Doing different things can be a game changer for small businesses, because it requires a genuine re-think and a change of mindset. This doesn’t have to cost money, instead it requires focus, a sense of purpose and, most importantly, a shift in attitude.

An attitude can’t be bought, but it can be generated, fostered, and put to use. You see, attitude is even more important than planning and strategising. So, begin by focusing on developing an attitude that encourages you to look at everything your business is doing and ask yourself, how can we be different, different in our approach to customers, different in our outlook? And can we embrace and foster a different attitude to our business? How can we be different to everyone else in our marketplace?

Very often, being different requires a bending of normal rules, or in some cases, a complete break with convention. However, in many cases, a very small change is all that’s required to give your business a distinct point of difference and to make it stand out. And here’s the good bit – it doesn’t always have to come at a cost. This is where Mr Flatley comes in.

Now, love him or loathe him, Michael Flatley is an extremely successful, multi talented individual. We’re all aware of his prowess as a dancer, but very few of us know that he’s also a very accomplished flautist and, in his younger days, he was a very talented and successful amateur boxer. So, take him on at your peril!

Being talented is obviously great, but it was his attitude that made Michael a global superstar, and a one man, dancing global brand. You see, Michael Flatley challenged the long established norms of traditional Irish dancing. He broke the rules and
became a hugely successful, mega rich superstar, and he did this by making one small change. He dared to be different from all of the other Irish dancers around him. How? Well, he simply unclamped his arms from his sides! Yes, imagine, he dared to raise his arms! And, simply by raising his arms, against all the old conventions of Irish dancing, Michael Flatley sprang into superstardom.

That one, beautifully simple act of raising his arms allowed him to jump higher, twist higher, kick higher, and it catapulted Irish dancing on to the global stage. So, you see, sometimes the smallest change and the slightest tweak in how you go about your business, can give you the edge and make you stand out from your competitors, without having to cost the earth.

So, dare to be different, especially if you’re a small business and don’t have lots of key decision makers to run your ideas by. Don’t be afraid, because if you make a change quickly, it can be reversed quickly. It is, of course, important to be nimble and flexible. That’s where small businesses have the advantage over bigger enterprises, because they can affect and implement changes and different practices relatively
quickly.

The Irish economy is full of small and dynamic businesses that are not just surviving, but thriving. They are thriving, because at the vanguard of their ethos, is an appetite for change, along with a strong desire to stand out and be different. If you dare to be different, and to be seen to be different, then you can’t help but stand out. And, if you stand out, you’ll be remarked on and you’ll be remembered. As a small business, you should be asking yourself, how can I make my business remarkable? How can I get prospects and customers alike to enthuse about something that we do that’s different?

Let me give you an example. A friend of mine was staying in a lovely little hotel in Kerry recently where he was bowled over by the service, the hospitality and, of course, the beautiful scenery. Now, all of the hotels and guesthouses in the immediate area share the same scenery. However, his hotel did something that, for him, was remarkable. Something that took a lot of thought on the part of the hotel, but was small and inexpensive. Having spent their first night in the hotel, he and his wife headed to their car the next morning, which was parked in the hotel car park. They were planning a drive around the scenic Ring of Kerry. When they got to the car, he noticed a small note on the windscreen that read – ‘We decided to give your windscreen a wash, so you can really enjoy the beautiful scenery.’ The note was duly signed by the hotel manager! Wonderful, small, and remarkable, because my friend hasn’t stopped talking about it, or the hotel, since he’s come back.

So, again, it doesn’t need to cost the earth to be different, or to be remarkable. It does require taking some time out with your partners and your staff and challenging each other to start being different in order to make your business stand out from the crowd. Being different sometimes requires you to challenge the norms, break the rules, and change how you go about your business. Sometimes a small change can make a huge impact. Just ask Michael Flatley!

Gary Brown is Executive Chairman of Target McConnells, one of Ireland’s largest
Advertising and Marketing Agencies.

Gary will be speaking at An Post’s #GrowMyBusiness events November 10th In Dublin and November 12th in Cork, Book your tickets now @ www.anpost.ie/growmybusiness

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5 Reasons Why Incubators are so Popular for SMBs

With the popularity of telecommuting and startup businesses, many people are finding that they no longer need a traditional brick and mortar office with all of the expenses that come with it. Instead, these people are turning to business incubators, a place where people can work with other people and receive the support services, work space, networking opportunities, training, and financial freedom they need to succeed.

Business incubators provide a laundry list of benefits to anyone who joins one; however, they’re extremely beneficial to SMBs who simply don’t have the knowledge, tools, or resources to take their companies to the next level. Check out the five reasons why business incubators are so popular for SMBs.

Work Space

Sometimes your business doesn’t require a brick and mortar office, but working at home or from a coffee shop can become mundane after a while. Business incubators provide coworking space that people find beneficial. These provide a shared working environment that allows people to be surrounded by other individuals and receive all the perks of an office, such as a printer, Wi-Fi, phone, conference rooms, and much more.

Support Services

When SMBs use a business incubator, they can receive support services that would otherwise be unobtainable or too expensive. Instead, you can rely on the other individuals in the business incubator to provide the support services you need, or you and the others can share on the expense of marketing, business insurance, legal, or other services that may be required.

Networking Opportunities

Every successful businessperson knows that networking is essential. With a business incubator, there are so many networking possibilities, which is why they will just continue to grow. Individuals using business incubators have easy access to successful entrepreneurs, financial professionals, or others that can help them boost their business. Plus, many incubators also host events, which provides even more opportunity for networking.

Training

Receiving the right training is important to continue taking your business further. However, sometimes this training can be too expensive or unavailable if trying to secure it on your own. However, with a business incubator, you can have access to training. Sometimes the incubator will provide training for certain topics or programs, or you can feed off the training from the other people you’re working with. Either way, it’s a win-win situation.

Financial Freedom

One of the biggest benefits of a business incubator is that SMBs receive financial freedom. Instead of trying to find the money to spend on rent, and instead of spending money on training, networking, and support services, as well as employee salaries and other business expenses, they receive all of this with a business incubator. This can significantly reduce the amount of money your business will spend, allowing you to either reinvest it back into your business or use it for profits.

The other financial benefit of business incubators is the help in securing future loans. Many incubators have built relationships with people looking to invest in business, and this provides you with an easier way to get connected to those who can provide the financing you need to take your company to the next level.

If you’re a small or medium-sized business, try to find a local business incubator in your area, and use this tool to help your business thrive.

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Horizon 2020 Funding Secured by North South Projects Surpasses €19 million

The value of North South R&D activity secured in the Horizon 2020 programme to date is €19.36 million, which is a 62% increase compared to the same period in the Framework Programme 7 (FP7).

These encouraging figures were revealed at the recent InterTradeIreland ‘Collaborate to Innovate Conference’ which focused on ‘Delivering Competitive Proposals’.

Long term plan
To address the ambitious national targets set out by the respective governments on both sides of the border, InterTradeIreland has developed a Strategic Action Plan for Horizon 2020, which is supported by the all-island steering group for Horizon 2020 and includes representatives from government departments and support networks in both jurisdictions. This outlines a plan to achieve a competitive North South funding target of €175 million between 2014 and 2020, which opens up great opportunities for organisations on both sides of the border.

Belfast event highlights supports
More than 140 business and academic representatives attended the fifth annual all island InterTradeIreland ‘Collaborate to Innovate’ conference in Belfast and the Strategic Action Plan for Horizon 2020 was a key element of the event’s focus.

Both jurisdictions have placed a high priority on North South participation in Horizon 2020 and the InterTradeIreland’s conference highlighted the range of supports available for businesses and researchers alike who are considering creating North South partnerships to apply for Horizon 2020 funding.

Successful projects

InterTradeIreland has discovered the top performing areas for North South co-operation are in the area of ‘Marie Sklodowska Curie Actions’ followed by ICT, health and agri-food. These projects range greatly but are fundamentally designed to demonstrate a positive impact on EU societies and citizens. They include the creation of solutions to prevent online attacks from hackers and stem cell therapy to treat diabetic kidney disease.

Co-operation works
With a North South industry participation rate at 60%, which is three times the target participation rate as set by the European Commission, local companies are taking full advantage of the opportunity to work together and innovate on a cross-border basis. For example, the €4 million REMEDIATE project involves Carlow-based SME T.E. working with Queens University, Belfast while Northern Ireland’s Seagate Technology is partnering with University College, Cork and Dublin’s X-CELEPRINT on the €5.25 million TOP HIT project.

Importance of Horizon 2020
Horizon 2020 is the European Union’s largest ever investment in research and innovation with a budget of €79 billion available between 2014 and 2020. It is open to everyone and funds a wide range of activities from frontier research through to close-to-market innovation activities with around 20% of the total budget specifically allocated to opportunities for SMEs.

Encouragement from Horizon 2020 alumni
Attendees at the recent InterTradeIreland conference were also encouraged by keynote speaker, renowned European expert Sean Mc Carthy of Hyperion Ltd, who related his experience, guidance and advice in pulling together successful Horizon 2020 proposals.

More Information
More information about the choice of Horizon 2020 supports on offer from InterTrade Ireland can be accessed at www.intertradeireland.com/horizon2020

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Eight Munster Companies Celebrate Business Awards

Eight leading Munster based companies celebrated success at the Munster final of the Ulster Bank Business Achievers Awards, which took place on 22nd October at Clayton Silver Springs Hotel, Cork. The eight winners will now progress to the national final in December to compete with winners from Leinster, Connacht and Ulster.

A total of 676 companies entered the Awards – the highest number ever, reflecting an increase of 7.8% on last year’s awards, and 111 of these entrants were Munster businesses.

The Ulster Bank Business Achievers Awards provincial winners for Munster are as follows:

 

  1. Business Start Up – Dromquinna Manor
  2. Small Business – Cupprint
  3. Established SME – Buttimer Engineering
  4. Social Enterprise – Reagecon Diagnostics Limited
  5. Social Enterprise – Ring of Kerry Charity Cycle
  6. Food & Drink – E. Flahavan & Sons Ltd
  7. Agri Business – Wood Energy Solutions (WES)
  8. Women Led Business – JJ O’Toole Ltd

Speaking at the Munster awards, Pat Horgan, ‎Head of Specialised Relationship Management at Ulster Bank said: “The Ulster Bank Business Achievers Awards are a mainstay in the Irish Business calendar. As well as finance, we are determined to help create a better environment for doing business in Ireland. Our mission to be number one for customer service, trust and advocacy is proven here today in our support for each and every one of these excellent businesses. I’d like to congratulate each of our winners and wish them the best of luck at the national final in December.”

The 2015 Ulster Bank Business Achiever will receive a comprehensive prize package including a €50,000 publishing bursary with the Irish Independent, business mentoring from Enterprise Ireland, a full service communications workshop, as well as national and regional PR coverage.

For further information on the 2015 Ulster Bank Business Achievers Awards and the provincial winners, go to www.businessachieversaward.com. You can also follow all the action on Twitter using @ulsterbank_baa and #businessachievers.

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This post was originally published here - http://www.smallbusinesscan.com/eight-munster-companies-celebrate-business-awards-2/ on thinkbusiness

Eight Monster Companies Celebrate Business Awards

Eight leading Munster based companies celebrated success at the Munster final of the Ulster Bank Business Achievers Awards, which took place on 22nd October at Clayton Silver Springs Hotel, Cork. The eight winners will now progress to the national final in December to compete with winners from Leinster, Connacht and Ulster.

A total of 676 companies entered the Awards – the highest number ever, reflecting an increase of 7.8% on last year’s awards, and 111 of these entrants were Munster businesses.

The Ulster Bank Business Achievers Awards provincial winners for Munster are as follows:

 

  1. Business Start Up – Dromquinna Manor
  2. Small Business – Cupprint
  3. Established SME – Buttimer Engineering
  4. Social Enterprise – Reagecon Diagnostics Limited
  5. Social Enterprise – Ring of Kerry Charity Cycle
  6. Food & Drink – E. Flahavan & Sons Ltd
  7. Agri Business – Wood Energy Solutions (WES)
  8. Women Led Business – JJ O’Toole Ltd

Speaking at the Munster awards, Pat Horgan, ‎Head of Specialised Relationship Management at Ulster Bank said: “The Ulster Bank Business Achievers Awards are a mainstay in the Irish Business calendar. As well as finance, we are determined to help create a better environment for doing business in Ireland. Our mission to be number one for customer service, trust and advocacy is proven here today in our support for each and every one of these excellent businesses. I’d like to congratulate each of our winners and wish them the best of luck at the national final in December.”

The 2015 Ulster Bank Business Achiever will receive a comprehensive prize package including a €50,000 publishing bursary with the Irish Independent, business mentoring from Enterprise Ireland, a full service communications workshop, as well as national and regional PR coverage.

For further information on the 2015 Ulster Bank Business Achievers Awards and the provincial winners, go to www.businessachieversaward.com. You can also follow all the action on Twitter using @ulsterbank_baa and #businessachievers.

The post Eight Monster Companies Celebrate Business Awards appeared first on Small Business Can.

This post was originally published here - http://www.smallbusinesscan.com/eight-monster-companies-celebrate-business-awards/ on thinkbusiness