Category Archives: Business Finance

Credit Unions and Traditional Banks

Understanding the institution that you entrust your personal or business money with is very crucial. Chandler credit union best establishment. They have really diversified how people bank today. People are slowly shunning down the traditional way of banking opting for Credit Unions. A Traditional bank is only involved in keeping your money for you, making you a customer whereas with a credit union you are a member.

Why Credit Unions?

It feels good to be part of a banking institution that you keep your money with, but it feels even greater when you know you are a member. Credit Unions let the members vote and are part of the board, the traditional banks are run by stakeholders and no one else has a say in how the bank is run.

A traditional bank will focus more on rendering commercial loans for big and credible investors. A credit Union, on the contrary, focuses on enhancing members’ savings and offering consumer loans.

The Three pluses of a Credit Union

1. Organized-A credit union is an organized institution which in most cases is local; this emphasizes on the members needs. This is not the case with a traditional bank; banks are open to all making it hard to focus on the average banker.

2. Non-profit-Through lower loan rates and higher saving rates, a credit union guarantees its members profits, unlike the traditional bank which earns profits that are then paid to the stakeholders.

3. Members volunteer-The traditional banks have paid board members to run the institution. With a credit union members volunteer to be part of the board. This really creates for diversity and growth of a banking institution since the different members can run for the election to be part of the board.

There are more advantages with Credit Unions. Look for one near you to understand more on why it is best compared to traditional banking.

Woman in home office using computer talking on telephone

Cost of Starting a New Business from Home

Many people have started successful businesses from a garage or a spare room in their home.

There are many things a person can do – e.g. music, writing, backyard mechanics, backyard computers, all sorts of tutoring, sewing, cleaning etc. One lady I met even started a whole modelling business with just a few clients.

The first thing you need to do is have a definite idea and formulate a Business Plan. This should be based on something that you know a lot about and are happy doing.

The next thing you need is a unique business name – preferably one that catches people’s attention and is easy to remember. Ideally the name should be registered with the appropriate Government Agency. Once I tried to register one of my business names, but the cost was several hundred dollars which I couldn’t afford – So I just typed up my own certificate with the copyright symbol and date. I also put a copy of this in a sealed, self addressed envelope with the postage date clearly viable. I was hoping that this would solve any possible Intellectual Property problems.

How to figure out your cost

You will need to work out your set up costs. These will be almost nil if you are doing something like tutoring – because the spare tuition room in your home is already there. Enterprises like backyard mechanics have bigger set up and operating expenses. Its best to speak with a certified CPA specialist.

 

How do you get clients and start to generate an income? Telling your neighbors and friends what you are doing costs nothing. The best advertising is word of mouth and many businesses rely just on referrals. Placing an ad on your local shopping center notice board or in a shop window also costs nothing. Ads in the local newspaper are relatively cheap – as are letter box drops.

Once you have a few clients and have established yourself as serious, then there are many government organisations that offer assistance and advice. You may even be able to apply for a grant or low interest loan.

Another good reason to start a home based business is that you can negative gear a lot of your costs and offset it against your income – costs like phone, transport, stationery and proportionate rent (which you pay anyway)

In my own position, as a person who was unemployed goes, I found that Social Security supported what I did as long as I was honest and kept then informed of how much money I was earning. If you have questions that were left unanswered feel free to email me here.