tag:blogger.com,1999:blog-68184566558401409932024-02-20T12:14:12.801-08:00Business InformationInformation about credit, loan, insurance, marketing,
development and management in businessMbah Dukun Bagonghttp://www.blogger.com/profile/11470816750279634237noreply@blogger.comBlogger14125tag:blogger.com,1999:blog-6818456655840140993.post-52736970150527162682012-06-29T10:57:00.001-07:002012-06-29T10:58:11.839-07:00Advantages and Disadvantages of Credit Cards<div style="text-align: justify;">The use of credit cards is expected to have many uses for the wearer, providing convenience and benefits to its owner, so having a credit card is beneficial. The case for the bank or financial institution credit card issuers and merchants, credit card should give him the advantage.</div><div style="text-align: justify;"></div><a name='more'></a><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><u><b>The advantages to be gained include:</b></u></div><div style="text-align: justify;"><b>1. For banks or financial institutions (credit center)</b></div><div style="text-align: justify;">a. The existence of fee (usually annual) charged to each card holder.</div><div style="text-align: justify;">b. The existence of the interest expense on customer cardholders who are late making a payment bills of the transaction that has been done.</div><div style="text-align: justify;">c. Administrative costs, the fees charged to customers that cardholders will withdraw cash at ATMs.</div><div style="text-align: justify;">d. Additional costs due to late payment penalties, other than interest.</div><div style="text-align: justify;"><b>2. For cardholder customer (consumer)</b></div><div style="text-align: justify;">a. Ease trade or shop using the card, so no need to carry cash to eliminate the risk of loss and theft.</div><div style="text-align: justify;">b. Ease to get cash at any time during 24 hours at various strategic places, making it easier to meet a sudden need for cash.</div><div style="text-align: justify;">c. For some communities, Credit card can give pride.</div><div style="text-align: justify;"><b>3. For merchants (merchants)</b></div><div style="text-align: justify;">a. Can increase sales turnover, due to the minimal extent possible transaction and cardholder waste because they do not need the cash, the owner of the card will make a deal as he pleases.</div><div style="text-align: justify;">b. As a form of service and convenience for its customers, so the transaction is expected to always do the same and repetitive.</div><div style="text-align: justify;"></div><div style="text-align: justify;"><br />
<u><b>Nevertheless the use of credit cards also contain some disadvantages. </b></u></div><div style="text-align: justify;">The disadvantage is the risk of a business, but if not done carefully, including:<br />
<b>1. For banks or financial institutions (credit center)</b><br />
In the event of congestion payments by customers who shop or take the cash, then it is difficult to be billed normally given approval unsecured card issuance precious objects as appropriate credit. Even a guarantee only with proof of income is enough to get the card.<br />
<b>2. For cardholder customer (consumer)</b><br />
Usually the card holders tend to be wasteful in the transaction, because they feel, do not cough up the cash, so sometimes the stuff that really does not (yet) need to be purchased as well. The existence of some merchants who charge an additional fee for each transaction. The existence of limit spending limits are sometimes too small for shopping, while the value of goods purchased.<br />
However, credit cards are a necessity, especially for urban communities where the efficiency and effectiveness of a primary. Advanced economy, technology and information must be balanced with the product can always go hand in hand. Credit cards have great potential to share in an effort to bridge the needs of human transactions in the world of globalization and information.</div>Mbah Dukun Bagonghttp://www.blogger.com/profile/11470816750279634237noreply@blogger.com1tag:blogger.com,1999:blog-6818456655840140993.post-1754678834169471142012-06-28T13:22:00.001-07:002012-06-28T13:22:54.157-07:00Ideal Business for Student<div style="text-align: justify;">Youth is a time of excitement. Included in this business. Spirit to start doing business mostly found in young children, especially those who were educated in college. Although many people to label students as children who are still dependent on parents, but can not be denied many of them are able to demonstrate expertise in entrepreneurship.</div><a name='more'></a><div style="text-align: justify;">Most of the others, although not yet produced tangible business and generate significant profits, already driven to pursue the entrepreneurial world but is still hampered by a number of factors. Among the most often heard is the lack of time could be allocated for business, fear of failure, lack of breadth of the network, the confusion with the interest and business fields to be tilled, and so forth.</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">About a factor of interest and confusion about lines of business will be worked, in fact this could be solved with open eyes and ears as possible. That is, students may be more sensitive in knowing what they want to diligently and do if they want to mean it in a open mind to everything around him. The more open, more likely to get a brilliant idea and profitable business.</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">So, if you are a student who is confused to start a business while undergoing college but do not know the business idea should be worked out, a collection of these business ideas could possibly shed some light. Happy reading.</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><b>A. Tutoring</b></div><div style="text-align: justify;">Except for people who are indifferent to the achievements and from lectures, there will always be students who seek help from others are more in control subjects which they find difficult to chart a steady grade. You can use this vulnerability as a profitable business opportunities. Establish a tutoring service that helps them this. You can do the coaching themselves or hire someone else or their fellow students who you think is competent in the field provided.</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">Do not limit yourself to just the academic aspect of learning. When running a business, you also need to expand to non-academic areas, such as providing guidance for those who want to have a driver's license, learning singing, basketball, playing guitar and so on. The important thing is you have extra patience in guiding.</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><b>2. Online business</b></div><div style="text-align: justify;">You can start an online business from the bedroom. You can create a website, blog or e-commerce stores that generate passive income even though you have to follow the lectures.</div><div style="text-align: justify;">If your site or blog you have got a place in the hearts of readers and much visited, try to offer space for advertising on the main page, or advertisements in various forms to large companies that have relevance to the content that you fit. Thus, the company can be recognized by the readers of your website / blog and you can enjoy the benefits.</div><div style="text-align: justify;">With the increasing number of people who can access the internet, business opportunity of this kind are also more wide open. If you are a student who likes to write or like the virtual world to interact and pour ideas, try this opportunity. The conditions required patience and self discipline which is hard to build it every day. Although easy to get started, success in online business (such as real-world business) requires time and effort. So do not expect to reap a profit in a short time with a little hard work.</div><div style="text-align: justify;"><b><br />
3. Buying and selling used books and savings and loans</b></div><div style="text-align: justify;">Who does not need cheap books today? When the rising costs of education, level of students from elementary school through college are less able to continue unencumbered. Students are always in need of a textbook and you could give them textbooks are cheaper than new ones without compromising its function in supporting the learning process.</div><div style="text-align: justify;">You can buy used books that are still fit for use at low prices from the book collector or from house to house. Or you can also design a program that facilitates the exchange of books for learners who want to find books or lend them books that are no longer needed. You can sell the used books.</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><b>4. Preparing lecture notes</b></div><div style="text-align: justify;">You want to do business but do not want to miss the courses taught? It's easy, why not make a record of lectures that you can sell to friends who are lazy to record or summarize the material presented lecturers? You can set rates for each sheet of notes you have. Also offer discounts for those who have a subscription.</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><b>5. Newspapers / campus sites</b></div><div style="text-align: justify;">Perhaps you've found a few news sites or campuses that conventional campus newspaper. Well, your job is to create a blog or a site or campus media better understand the aspirations and desires of the campus community. You can invite some friends to set up a blog or a site that provides a wide range of information that is often forgotten and trivial but important in the daily activities of students. For example, a place convenient and cheap boarding houses, restaurants or caterers list of affordable but healthy and nutritious, or how effective medical treatment to the campus clinic or other health care that is rarely crossed our minds but it proved to be very useful when available on the Internet. Recent issues on campus or policies that should be disseminated rectorate can become a magnet for the reader to always visit the site. When it's crowded, you can develope into a profitable business by advertising, building a loyal community, launched a service or product, and so on.</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><b>6. Job</b></div><div style="text-align: justify;">This idea probably did not occur to you that are looking for a job. But it's a way to succeed is by helping others succeed. And how to get a job is to help your peers to get a job!</div><div style="text-align: justify;">We all know that students often have to deal with their financial situation so that inevitably have to look for work outside of their learning time in order to remain able to undergo study and pay for daily living. You can build a partnership with several companies and give them some of the candidates qualified student workers. Not only they are qualified for Scholar, you can also target people with high school diplomas or even elementary school, because this is precisely those who most need help.</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><b>7. Laundry</b></div><div style="text-align: justify;">Raise your hand if you are overwhelmed college should wash your own dirty clothes. Undergo intensive lectures and doing assignments and papers was time consuming and labor intensive. And plus job washing and ironing clothes, all of this endless stream. For students who live in boarding houses, is more practical to use a laundry service at affordable than having to buy laundry detergent, washing and ironing all her own clothes. Especially in exam season, this kind of business can reap much profit.</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><b><br />
8. Multi Level Marketing.</b></div><div style="text-align: justify;">Multi Level Marketing, or better known as MLM. In the campus where you will study many MLM agents are going to haunt you as a member of their prospects. Meet your criteria accordingly. Remember, not all good MLM. You must choose which one is profitable and in line with you. Do not just hear you say that prospect, but try reading the testimony of former members of the Internet. God willing the same guns would be sorry to join MLM.</div>Mbah Dukun Bagonghttp://www.blogger.com/profile/11470816750279634237noreply@blogger.com0tag:blogger.com,1999:blog-6818456655840140993.post-69072793520692564862011-10-19T10:19:00.000-07:002011-10-19T10:19:33.400-07:00Four Secrets for Property Business in Indonesia<div style="text-align: justify;"> You are still lay with the property, but are interested to try it, do not hesitate to start because in 2011 these emerging economies. Year 2014, business property would be "booming". Uniquely, the property business in Indonesia is different from other nations. Here, property prices did not go down or stable despite high inflation and interest rates rise. Investment property in Indonesia is high return, low risk. As an investment, this time the people who have more money than the property trust assets to financial assets like stocks and mutual funds.<a name='more'></a><br />
Well, the secret to investing in property there are four moments; the right time, right location, right developer, and intelligent financing. The right time means you buy a new product built on the site right, and buying when the product launch event. Usually when a property built, the price was getting rocketed.<br />
The exact location, that means you should pay attention to the number of people who go into these areas is greater than the people who came out. Also pay attention to good accessibility to downtown. Choose a location close to the center of business and strategic growth. Developer the right, that means you have to cleverly choose an experienced developer, who has a good reputation, and have good character.<br />
Then on the financing of an intelligent, you need to think about financing for cash or credit, financing is also thinking about the short term or long term, and pay attention to fixed or floating interest rate.<br />
For the best property investment in terms of Return on Investment, you can glance at the property rent house, shop or shophouse, office space, and apartments or condominiums.</div>Mbah Dukun Bagonghttp://www.blogger.com/profile/11470816750279634237noreply@blogger.com1tag:blogger.com,1999:blog-6818456655840140993.post-15239078094984689012011-08-23T07:21:00.001-07:002011-08-23T07:21:57.456-07:00PORTRAIT RETAIL BUSINESS IN INDONESIA:<div style="text-align: justify;">Retail business is selling goods at retail outlets in various types such as, markets, department stores, boutiques and others (including sales with delivery system service), which is generally to be used directly by the buyer in question.</div><a name='more'></a><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">Retail business in Indonesia can be divided into two major groups, namely Retail Traditional and Modern Retail. Modern retail is basically a development of traditional retail. These retail formats emerged and evolved over the development economy, technology, lifestyle and community that makes people demand more convenience in shopping.</div><div style="text-align: justify;">First modern retail presence in Indonesia as Sarinah Department Store was founded in 1962. In the 1970 s / d-1980s, the format continues to grow this business. Early 1990s represents a milestone entry of foreign retailers in Indonesia. It is characterized by Japan's largest retail operation 'Sogo' in Indonesia. Modern retail and grown so rapidly as the government, based on Presidential Decree no. 99 th, 1998, issued a retail business from the negative list for foreign investment. Before the Presidential Published 99 th 1998, the number of foreign retailers in Indonesia is very limited.</div><div style="text-align: justify;">Currently, the types of modern retail in Indonesia is very much include the Modern Market, Supermarket, Department Store, Boutique, Factory Outlets, Specialty Stores, Trade Centre, and Mall / Supermall / Plaza. Modern retail formats will continue to develop according economic development, technology, and people's lifestyles.</div><div style="text-align: justify;">Modern Market, one of the retail market are introduced in the 1970s, called as a retail format that has developed very well in 5 years last. How exactly stretching Modern Market in that time? Who are the major players are, and what are the challenges facing Modern Market in the future? This paper will discuss the development of Modern Markets and who the main players in this business. This paper will also discuss challenges.</div><div style="text-align: justify;">What are the future faced by Modern Market.</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><br />
</div>Mbah Dukun Bagonghttp://www.blogger.com/profile/11470816750279634237noreply@blogger.com7tag:blogger.com,1999:blog-6818456655840140993.post-66149005260620396282011-06-04T20:05:00.000-07:002011-06-04T20:06:06.765-07:00Bank of Indonesia (BI) guarantee the rise in the BI Rate Not Affect Property Loan Interest<div style="text-align: justify;">Bank Indonesia increased its benchmark interest guarantee or BI rate will not affect interest bank loans, including credit property. BI binding rules of transparency of the banking industry through loans or the prime lending interest rate.<br />
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With this rule, the central bank can monitor the composition of bank lending rates. Including monitoring and savings deposit interest rates. BI the authority to ask the bank collapse the specific cost components, for mortgage interest not rise.<br />
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Guarantee of BI is a true blessing for the property sector issuers. It's known, at 75 percent - 80 percent of total purchases of houses in Indonesia through Housing Loan (mortgage).<br />
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As is known, the central bank earlier this month has hoisted the benchmark interest rate by 25 basis points (0.25 percent) to 6.75 percent. This is the first increase since 18 last.<br />
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Reza Nugraha Bhakti Securities analyst believes an increase in the BI rate by 0.25 per cent, if it was followed by emerging mortgage interest, will not significantly affect the property sector. But if the BI rate this year rose from 0.75 percent - 1 percent, could have a negative impact to the growth in the property sector.<br />
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Reza count, if the BI rate increase of 0.75 percent - 1 percent, mortgage rates has the potential to rise to around 11 percent - 12 percent. At present, he said, mortgage rates in the range 9.5 percent to 10 percent.<br />
<br />
If mortgage rates rise by 11 percent - 12 percent, then the sale of the property only grow as high as 7 percent - 10 percent so far this year. And if mortgage rates below 10 percent, Reza estimate, sales of properties throughout 2011 may increase to 10 percent - 15 percent.<br />
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Majapahit Securities analyst estimate Supriyadi if rates rise 100 basis points, then mortgage rates will reach 13 percent - 14 percent. "If the BI rate rose 100 basis points, the central bank could not manage, because the cost of funds banks will go up. If credit interest was not raised, bank profits will be eroded," said Supriyadi.<br />
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He predicts, property sales this year could grow 10 percent, taking into account rising mortgage rates. But if the mortgage does not rise, the growth of property sales could be 15 percent.<br />
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Expansion properties be sure, economic growth projection of about 6 percent - 6.5 percent this year likely to boost the property business. As the laws of economics, economic growth will encourage the purchasing power. "The increase in revenue push some people to buy homes to meet the primary needs," said Budhy Siallagan, eTrading Securities analyst.<br />
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Thus, issuers are aggressively expanding property has the potential to enjoy significant sales growth. Sure, developers do not want to lose the momentum of expansion at low interest rates.<br />
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PT Alam Sutera Tbk (ASRI), for example, developed a superblock area I Alam Sutera and build a new area in the Market Thursday, Tangerang. Other issuers, PT Bumi Serpong Damai Tbk (BSDE) expanding township BSD City phase 2. Then Podomoro Land PT Agung Tbk (APLN), which started adding properties to the outskirts of Jakarta area.<br />
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Diversification measures taken by the developers as well. For example, PT Lippo Tbk (LPKR) which continues to boost its health care division, namely the hospital.<br />
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Supreme Tbk (SMRA) also did not want to miss. SMRA will develop the shopping center this year. APLN also plans to build several new malls in Java and outside Java island.<br />
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Step diversification certainly will add to earnings issuer property. "LPKR, for example, will earn additional revenue from the hospital," said Supriyadi. Business malls, apartments, and hospitals, according to Reza, could compensate for retention growth in home sales this year if the BI rate rose sharply.</div>Mbah Dukun Bagonghttp://www.blogger.com/profile/11470816750279634237noreply@blogger.com4tag:blogger.com,1999:blog-6818456655840140993.post-80255827195579673312011-05-24T20:57:00.001-07:002011-05-24T20:58:49.202-07:00Principles of Islamic Finance<div style="text-align: justify;"><br />
Islamic finance refers to a system of finance based on Islamic law (commonly referred to as Sharia4). Islamic financial principles are premised on the general principle of providing for the welfare of the population by prohibiting practices considered unfair or exploitative. The most widely known characteristic of the Islamic financial system is the strict prohibition on giving or receiving any fixed, predetermined rate of return on financial transactions. This ban on interest, agreed upon by a majority of Islamic scholars, is derived from two fundamental Sharia precepts:<br />
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• Money has no intrinsic worth. <br />
Money is not an asset by itself and can increase in value only if it joins other resources to undertake productive activity. For this reason, money cannot be bought and sold as a commodity, and money not backed by assets cannot increase in value over time.<br />
• Fund providers must share the business risk.<br />
Providers of funds are not considered creditors (who are typically guaranteed a predetermined rate of return), but rather investors (who share the rewards as well as risks associated with their investment). Islamic finance, however, extends beyond the ban of interest-based transactions. Additional key financial principles include the following:<br />
• Material finality. <br />
All financial transactions must be linked, either directly or indirectly, to a real economic activity. In other words, transactions must be backed by assets, and investments may be made only in real, durable assets. This precludes the permissibility of financial speculation, and therefore, activities such as short selling are considered violations of Sharia.<br />
• Investment activity.<br />
Activities deemed inconsistent with Sharia, such as those relating to the<br />
consumption of alcohol or pork and those relating to gambling and the development of weapons of mass destruction, cannot be financed. In broader terms, Sharia prohibits the financing of any activity that is considered harmful to society as a whole. <br />
• No contractual exploitation. <br />
Contracts are required to be by mutual agreement and must stipulate exact terms and conditions. Additionally, all involved parties must have precise knowledge of the product or service that is being bought or sold. The jurisprudence used to engineer Sharia-based financial contracts is complex. Scholars must complete several years of training before becoming certified to issue financial rulings. The industry’s most prominent Islamic finance scholars are in general agreement on the basic set of financial precepts listed above. However, there is no centralized Sharia finance authority, and consequently, there can be conflicting views on the implementation of these principles in designing and extending Islamic financial products.</div><div style="text-align: justify;"></div><div style="text-align: justify;"></div><div style="text-align: justify;"></div><div style="text-align: justify;"><br />
refference</div><div style="text-align: justify;">http://www.cgap.org/gm/document-1.9.5029/FN49.pdf</div>Mbah Dukun Bagonghttp://www.blogger.com/profile/11470816750279634237noreply@blogger.com11tag:blogger.com,1999:blog-6818456655840140993.post-12894018620591692212011-05-07T00:18:00.000-07:002011-05-07T00:18:04.793-07:00THE EBRD AND THE SMALL MEDIUM-SIZED FINANCE SECTOR<div style="text-align: justify;"><br />
The EBRD provides lending partners with innovative products by responding to changing market conditions and client needs. The strong portfolio of micro and small enterprises (MSE) finance products helps the EBRD retain its position as one of the most successful MSE investors in the region. To maximize the leverage of its funding, the Bank also provides technical assistance which focuses in institution building and creating MSE lending expertise. </div><div style="text-align: justify;"></div><a name='more'></a><br />
<b>A. The Beginning </b><br />
In April 1999, the EBRD and the European Commission launched the SME Finance Facility for micro, small and medium-sized enterprises operating in the EU Accession countries of central and Eastern Europe. This includes Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovak Republic and Slovenia. <br />
The SME Finance Facility channels €846 million (€716 EBRD/€130 EU) to SMEs through loans to local banks, leasing companies and investments in private equity funds. <br />
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<b>Loans and leases </b><br />
Local banks and leasing companies focus on financing SMEs at the lower end of the size spectrum. The average loan/lease to a participating bank or leasing company is between €5 million and €15 million. The financing extended is normally for small enterprises with up to 100 employees (€30,000 to €100,000) and micro enterprises with less than 10 employees (up to € 30,000). <br />
Banks and leasing companies are selected on the basis of their financial strength, branch network, knowledge of their clients and, most importantly, their commitment to engage in sustained SME lending. <br />
The EU grant covers performance fees, which compensates the banks and leasing companies for start-up costs related to SME on lending. The grant also funds technical assistance aimed at: <br />
- Recruiting and training of bank staff in small loan appraisal, supervision and administration <br />
- Improving information systems <br />
- Strengthening management capabilities such as marketing and SME client relationship management. <br />
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<b>Equity</b> <br />
The equity funds range between €12 and €20 million, and maximum financing per investee is restricted to €1 million for a minority stake. Independent fund managers responsible for raising private capital manage the funds. <br />
The EU contribution is structured to provide incentives to overcome the private sector's reticence about SME investment and to allow the Facility to attract competent fund managers. <br />
The funds use the full range of equity and quasi-equity instruments and normally hold minority positions (10 - 49%). They do, however, secure rights enabling them to exercise corporate governance over the SME portfolio. </div><div style="text-align: justify;"></div><div style="text-align: justify;"><br />
<b>B. Current Policy </b><br />
Strategic priorities <br />
Provide sustainable finance to micro and small businesses <br />
Support institution building in commercial banks and non-bank micro finance institutions <br />
Encourage competition within the financial sector catering to micro and small enterprises <br />
Regional focus and emphasis on previously underserved markets <br />
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<b>Products </b><br />
<b>Debt </b><br />
The Bank grants senior and subordinated debt to commercial banks and non-bank micro finance institutions for on lending to MSEs. Amounts range from €20 to €200,000. <br />
<b>Equity </b><br />
The Bank purchases ordinary or preference shares in microfinance banks and institutions, or existing commercial banks with a strategic focus on MSE finance. <br />
<b>Technical assistance </b><br />
Technical assistance focuses on institution building and creating MSE lending expertise. <br />
Such measures are important to ensure that EBRD's partners have the necessary capacity to enter the MSE finance market and to continue providing loans long after Bank assistance and investment have ceased. <br />
This assistance, which is generously supported by EBRD's donor programs, focuses on: <br />
- Staff training <br />
- Streamlining of processes and procedures <br />
- Implementation of best practice borrower analysis <br />
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Integration of MSE lending into the partner banks' mainstream operations <br />
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Non-bank micro finance institutions <br />
Non-bank micro finance institutions (MFIs) are a new and important delivery mechanism for the EBRD. The Bank provides leading regulated non-bank MFIs with senior debt for on-lending to micro borrowers. The Bank aims to support these financial intermediaries, particularly in their transformation to deposit-taking entities, and will consider future equity investments. <br />
MSE focused equity funds <br />
EBRD can invest in or alongside the increasing number of funds, which have been created to invest in financial institutions with a strategic commitment to the MSEs in the Bank’s countries of operation. </div><div style="text-align: justify;"><br />
<b>New initiatives </b><br />
a. Local currency financing <br />
The Bank is exploring ways to meet the high demand for microfinance in local currency by using standby credit lines and issuing securities, the proceeds of which would be provided to partner institutions for on-lending to MSEs. The Bank has already engaged in local currency financing through programs in Hungary, Kazakhstan and Russia. <br />
b. Micro leasing <br />
It can be difficult for MSE entrepreneurs to obtain asset finance. Products available from MFIs are often short-maturity and those available from leasing companies are often too expensive. Leasing can provide a solution to the problem of lack of collateral faced by smaller businesses in the production sector. The EBRD is looking at how to downscale existing leasing operations to amounts that could benefit MSE clients. Another approach is to help financial intermediaries develop this product. </div><div style="text-align: justify;"><br />
<b>Risk sharing and securitization </b><br />
The Bank is exploring risk-sharing products to share the risk of the MSE portfolios of its partners. It is also considering securitising loan portfolios. <br />
- Credit scoring <br />
Credit scoring mechanisms help partners enhance the profitability and sustainability of their lending programs. New initiatives in this domain would build on the experience gained by EBRD in Central and Eastern Europe.<br />
</div>Mbah Dukun Bagonghttp://www.blogger.com/profile/11470816750279634237noreply@blogger.com4tag:blogger.com,1999:blog-6818456655840140993.post-25787796511148268742011-04-26T19:12:00.000-07:002011-04-26T19:12:25.484-07:00Historic Overview of the UK Islamic Finance Market<div style="text-align: justify;"><b>The Early Years (1996-2001)</b><br />
The United Bank of Kuwait (now known as Ahli United) launched the first ever Islamic home finance product (Manzil) back in 1996, which was based on a Murabaha contract. Initially takeup of the Manzil product was slower than expected which was largely down to the unfamiliarity of the concepts amongst the British Muslim community. The bank was however assisted by the presence of a well known Islamic Finance scholar, Mufti Taqi Usmani, on their Shariah advisory board. To date Ahli United has sold nearly 1,000 such home finance plans. Ahli United was a lone provider in the Islamic home finance market in the early years and attracted a lot of criticism for being too expensive and restrictive.</div><a name='more'></a><br />
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The Due Diligence Period (2001-2003)</b><br />
By 2001 many of the major banking institutions began to recognise the commercial potential of the global Islamic Finance market and started developing products of their own. Owing to the inflexibility of the Murabaha product the Shariah scholars allowed banks the additional choice of the Ijara contract.<br />
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<b>Governmental Support (2003- )</b><br />
The purchase and resale required for Islamic home purchases resulted in double stamp duty which significantly increased the costs of Shariah compliant financing. Under pressure from the Bank of England, numerous Islamic organisations and financial institutions, the Government lifted the double stamp duty barrier in 2003. This historic decision paved the way for many institutions to develop commercially viable home purchase products, and cemented the UK’s leading role in the global Islamic Finance industry.<br />
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<b>The UK Islamic Finance Boom (2003- )</b><br />
HSBC’s decision to launch ‘HSBC Amanah’ heralded the entry of mainstream banks into the Islamic Finance arena. Soon afterwards NatWest launched Alif Baa Taa (ABT) commercial finance based on the Murabaha model along with the Bank of Ireland. Thereafter United National Bank, Arab Banking Corporation (Al-Buraq) and Lloyds TSB all established Shariah complaint product offerings.<br />
Shariah scholars then devised the concept of Diminishing Musharaka (DM) that enabled<br />
clients to buy back shares in a house from the bank at regular intervals, rather than at the end of the contract as was the case with Ijarah. The launch of DM represented the introduction of a product that could be favourably compared on cost and flexibility with conventional interest based loans. It is worth stressing DM was only achieved as a result of the experience gained from the earlier introduction of Murabaha and Ijarah.<br />
At around the same time a unique community collective known as Ansar Finance (Manchester) started offering Islamic home finance to its members. The key difference between Ansar and just about all the other Islamic home finance providers was that Ansar’s seed finance was from its members who were mainly from the Muslim community. This won Ansar many plaudits from the Muslim community.<br />
<br />
<b>High Street Islamic Bank and the Musharaka Fund Launched 2004 - 2006</b><br />
2004 witnessed the launch of the UK’s first stand alone bank completely based on Islamic principles - The Islamic Bank of Britain (IBB). The UK underscored its position as the first Western country to grant a licence to a fully-fledged Islamic bank. IBB initially started its product offerings with regular current and savings accounts but then rapidly moved into personal finance and is now contemplating a number of Shariah-compliant products. It has over 12 branches nationally and it is expected to grow rapidly.<br />
The second development worth noting came in 2005 when 1st Ethical Limited launched the ‘Musharaka Fund’. This fund invited investment from the UK Muslim community and then reinvested those funds as venture finance into UK Muslim businesses such as dental practices, optical practices etc. The launch of the fund was the first serious attempt to implement pure Musharaka and move away from the concession approach favoured by the conventional banks.<br />
<div style="text-align: justify;"><br />
<b>London – The Global Centre for Islamic Finance (2006- )</b><br />
During a landmark speech at a major international conference on Islamic Finance in June 2006, the Chancellor Gordon Brown declared his desire to see London become the international global centre for Islamic financial activity. He also fully pledged his support to any legislative changes required in ensuring a level playing for Islamic products. The FSA (Financial Services Authority) has also taken a keen interest in this area and dedicated specialist resource to help develop the requisite regulatory framework.<br />
</div>Mbah Dukun Bagonghttp://www.blogger.com/profile/11470816750279634237noreply@blogger.com3tag:blogger.com,1999:blog-6818456655840140993.post-19246276863163141112011-04-26T19:06:00.000-07:002011-04-26T19:06:30.919-07:00Key Features of Islamic Finance<!--[if gte mso 9]><xml> <w:WordDocument> <w:View>Normal</w:View> <w:Zoom>0</w:Zoom> <w:PunctuationKerning/> <w:ValidateAgainstSchemas/> <w:SaveIfXMLInvalid>false</w:SaveIfXMLInvalid> <w:IgnoreMixedContent>false</w:IgnoreMixedContent> <w:AlwaysShowPlaceholderText>false</w:AlwaysShowPlaceholderText> <w:Compatibility> <w:BreakWrappedTables/> <w:SnapToGridInCell/> <w:WrapTextWithPunct/> <w:UseAsianBreakRules/> <w:DontGrowAutofit/> </w:Compatibility> <w:BrowserLevel>MicrosoftInternetExplorer4</w:BrowserLevel> </w:WordDocument> </xml><![endif]--><!--[if gte mso 9]><xml> <w:LatentStyles DefLockedState="false" LatentStyleCount="156"> </w:LatentStyles> </xml><![endif]--><!--[if gte mso 10]> <style>
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<div class="MsoNormal" style="text-align: justify;"><span>Key Features of Islamic Finance</span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span>Islamic Finance seeks to regulate certain economic activities in order to achieve the following objectives;</span></div><div class="MsoNormal" style="text-align: justify;"><span>1. </span><span>Equitable Distribution of Wealth</span></div><div class="MsoNormal" style="text-align: justify;"><span>2. The Middle Path</span><span> </span></div><div class="MsoNormal" style="text-align: justify;"><span>3. Transparency in Transactions</span></div><div class="MsoNormal" style="text-align: justify;"><span> </span><span style="color: black;">4. Asset Backed Financing & the Nature of Money<a name='more'></a></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span>1. Equitable Distribution of Wealth</span></div><div class="MsoNormal" style="text-align: justify;"><span style="color: black;">An interest based economic system will always lead to wealth being concentrated in the hands of the few at the expense of the many. This is because lenders will always prefer to loan money to those with the most collateral, who in turn will use the money to generate further profits. Consequently the global interest based economic system ensures the vast majority of the world’s finance is commandeered by a tiny fraction of the overall population.</span></div><div class="MsoNormal" style="text-align: justify;"><span style="color: black;">Islamic Finance has prohibited the payment of interest when lending or borrowing capital. Capital must be put at some sort of risk in order to justify a return. In doing so banks, and crucially the underlying account holders, receive a share of profits and not just a fixed rate of interest.</span></div><div class="MsoNormal" style="text-align: justify;"><span style="color: black;">By engaging in risk and sharing in the bank’s profits, the underlying account holders are more likely to receive a far greater slice of wealth compared with the interest normally received on deposit accounts. This in turn would lead to a much fairer distribution of wealth in society.</span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span>2. The Middle Path</span></div><div class="MsoNormal" style="text-align: justify;"><span style="color: black;">Muslims are required to follow the ‘middle path’ in all matters. With regard to economics this can be defined as a path between unregulated markets on one side and excessive regulation on the other. While it is true that Islam rejects the Communist principle that private enterprise should not be permitted, it is equally fair to say that Islam also rejects unbridled Capitalism that permits individuals to disregard society’s net interests in pursuit of personal wealth.</span></div><div class="MsoNormal" style="text-align: justify;"><span style="color: black;">The accepted practice of government economic intervention in capitalist economies perhaps highlights the fact that certain economic activities - of harm to the collective interests of society - should be monitored and restricted. Islamic Finance is in full agreement with the ideas of regulating economic activity but seeks to define the boundaries through divine guidance.</span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span>3. Transparency in Transactions</span></div><div class="MsoNormal" style="text-align: justify;"><span style="color: black;">Islam stresses the need for transparency in transactions. A sale transaction, for example requires the existence, quantity and quality of the subject matter to be clearly stated in order for the sale to be considered valid. Islam also compels business transactions to be put in writing in order to eliminate ambiguity and reduce the potential for future disagreements.</span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="color: black;">4. Asset Backed Financing & the Nature of Money</span></div><div class="MsoNormal" style="text-align: justify;"><span style="color: black;">Shariah law stresses the importance of only trading in assets of ‘inherent value.’ Any asset with ‘inherent value’ can be bought or sold at a profit, for example a computer can be purchased for £800 and sold for £1000.</span></div><div class="MsoNormal" style="text-align: justify;"><span style="color: black;">It then follows that an asset without any inherent use or value cannot be traded, for example a new £20 note is worth exactly the same as a used £20 note. The note has no inherent use in its own right and simply serves as a determinant of value; hence it cannot be traded for profit. </span></div><div class="MsoNormal" style="text-align: justify;"><span style="color: black;">Trading in money often leads to detrimental consequences such as the boom and bust economic cycle and as such, loaning idle capital in exchange for a profitable return runs contrary to Islam’s desired approach.</span></div>Mbah Dukun Bagonghttp://www.blogger.com/profile/11470816750279634237noreply@blogger.com3tag:blogger.com,1999:blog-6818456655840140993.post-56746522023861016442011-04-26T18:55:00.001-07:002011-04-26T18:56:12.329-07:00Islamic Finance Industry<div style="text-align: justify;">The Islamic finance industry is here to stay. In the space of three decades it has transformed from a peripheral activity to a sizeable alternative financial management system. Compared to the conventional financial system, it is relatively young. Industry practitioners are constantly learning from the experience of the conventional system, but the learning curve remains steep.</div><a name='more'></a><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">There is a real potential for expansion in retail banking and consumer finance, especially in populous Muslim countries. Non-traditional markets are also expected to become increasingly important, as is the provision of Islamic financial products to non-Muslim customers. The challenge here is to achieve a suitable level of support from the governments and regulators in these markets towards the sector.</div><div style="text-align: justify;">The growth and diversification of Islamic finance, along with the geopolitical environment in which it operates, means that it would be unthinkable for the global Islamic finance industry “to go it alone”. Institutions such as the U.S. Treasury, the U.K. Treasury, the International Monetary Fund, the World Bank, and the Basel Committee of the Bank of International Settlements, are all engaging with the sector in an attempt to “demystify” it and to promote global and industry best practice through the introduction of universal prudential and supervision standards. In addition, with many global banking majors entering the market, there is a real impetus in the West to promote the orderly development of the sector.</div><div style="text-align: justify;">Muslim countries also want Islamic finance to be part of the global financial system, and are keen to adopt many of the more innovative practices and products as long as they comply with the principles of Fiqh Al-Muamalat (Islamic law relating to financial transactions). On these principles there can be no compromise, otherwise the very ethos and raison d’etre of faith-based Islamic financial management would be undermined.</div><div style="text-align: justify;">As such, regulators such as Dr. Zeti Akhtar Aziz, Governor of Bank Negara Malaysia, see much greater convergence of Islamic finance with the global financial system as a niche alternative financing sector.</div><div style="text-align: justify;">Muslim countries themselves, however, should seek to address their Islamic financial architecture. They need to establish which model they would prefer to follow – the dual banking model as in Malaysia where the Islamic system operates side-byside</div><div style="text-align: justify;">with the conventional system, cooperating but not interacting; or the Islamization of the banking system as in Iran, Pakistan and Sudan.</div><div style="text-align: justify;">The latter has to a large extent been discredited because of the fundamental anomalies that persist, especially in dealing with the correspondent banking relations of the Islamic banks. Sudan, Iran and Pakistan have all introduced exceptions to the rule allowing Islamic banks to engage in interest-based banking to accommodate these relationships out of necessity.</div><div style="text-align: justify;">Conversely, many GCC countries effectively follow a de facto dual banking model, which many bankers including those interviewed stress is the model to emulate.</div><div style="text-align: justify;">As Islamic finance continues its expansion and diversification into new markets and products, there is a real impetus to understand more clearly how it can fit into the global banking sector. As our interviewees indicate, there is a strong appetite for growth and diversification both among regional Islamic banks and global majors. At present, however, there remain a number of barriers to overcome, including human capital shortages, differences in Shariah interpretation, and a lack of consistency in financial reporting. While the prospects for growth and diversification look good, it appears there is still much work to be done to fulfil the core ambitions of the sect</div>Mbah Dukun Bagonghttp://www.blogger.com/profile/11470816750279634237noreply@blogger.com6tag:blogger.com,1999:blog-6818456655840140993.post-40822214866595719932011-04-26T18:52:00.000-07:002011-04-26T18:53:01.447-07:00Growth and Diversification in Islamic Finance<div style="text-align: justify;">The contemporary Islamic finance industry is now in its fourth decade and, during that period, has developed extremely rapidly. In the past few years, overall market growth has been estimated at between 15-20 percent annually1, although individual Islamic banks have reported even faster growth. In 2006, for example, Arcapita Bank in Bahrain reported year-on-year balance sheet growth nearer to 40 percent. Today, the sector has estimated assets under management of US$500bn2. <br />
<a name='more'></a><br />
Market dynamism has been felt in both the traditional Islamic finance centers and a number of other markets. According to Bank Negara Malaysia (the Malaysian central bank), the number of Islamic bank branches in Malaysia increased from 126 in 2004 to 766 in 2005. Elsewhere, new Islamic financial institutions (IFIs) are being established rapidly in the industry’s traditional markets in the Gulf Co-operation Council (GCC) countries. <br />
Islamic finance is also on the rise in new markets such as Syria, Lebanon, the U.K., Turkey and Canada. In the U.K., for instance, two new Islamic banking licence applications are currently being considered by the Financial Services Authority (FSA), following the authorization in the past three years of the Islamic Bank of Britain and the European Islamic Investment Bank. <br />
Further, the recently proposed changes to U.K. tax law should help to remove the tax disadvantage which U.K. Sukuk issuance would have previously suffered. U.K. Sukuk issuance is now looking like a valid financing option to be explored by businesses which want to be Shariah compliant as well as by other businesses which want to diversify their investor base or benefit from the ongoing infrastructure investments within the Middle east. More significantly these tax changes help to signify that Islamic finance can play an important role in western economies. The changes in the U.K. are very likely to be replicated in other countries thereby creating an enabling framework for the rapid global development of Islamic finance. <br />
The prospects for Islamic finance have also encouraged some conventional banks to embark on the process of converting to Islamic financial institutions. Two years ago, for example, the Kuwait Real Estate Bank (KREB) announced that it was converting into a full-fledged Islamic bank. In December 2006, the Central Bank of Kuwait approved KREB’s Islamic Banking license, complete with name change to Kuwait International Bank. “The future is very exciting,” says Sulaiman Al-Baqsami, assistant general manager of KREB. “If we could convince our traditional client base, we could solicit potential customers with other conventional banks.” <br />
In the past five years, perceptions of the Islamic finance industry have advanced considerably. Originally, says Richard Thomas, managing director of Global Securities House U.K. Limited (GSH), a wholly-owned subsidiary of Securities House Group of Kuwait, the global financial services companies saw Islamic finance as a market for liquidity management and cheap short-term funding. <br />
This perspective has changed. “They now see opportunities across the board from project finance to securities issuance,” he explains. “Five years ago, they saw a one-dimensional market; now they see it as a multi-dimensional market complete with opportunities in fund, asset and wealth management. The result has been that more international banks are setting up Islamic finance teams and one would be hard-pressed now to find banks not having the capabilities to intermediate the market.” <br />
The purpose of this report is to explore current and future development of Islamic finance and to examine ways in which the sector is predicted to diversify and grow in the years ahead. KPMG International commissioned the Economist Intelligence Unit (EIU) to undertake a series of interviews in February 2007 with leading figures from the industry. Both the EIU and KPMG International would like to thank all respondents for their participation.</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">Author by Howard Davies (chairman of the Financial Services Authority)</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">refference</div><div style="text-align: justify;">http://www.fsa.gov.uk/Pages/Library/Communication/Speeches/2002/sp103.shtml</div>Mbah Dukun Bagonghttp://www.blogger.com/profile/11470816750279634237noreply@blogger.com0tag:blogger.com,1999:blog-6818456655840140993.post-62008398667748034562011-03-05T12:23:00.000-08:002011-03-05T12:26:11.069-08:00Types of Insurance for Small Business<div style="text-align: justify;"><br />
</div><div style="text-align: justify;">Insurance cover may be arranged through either an insurance company, an agent of an insurance company, or an insurance broker.When starting or buying a business, assess your insurance needs and include accurate costings in your budgets and forecasts.<br />
<a name='more'></a><br />
As with buying any product or service, you should shop around and compare price, service, reputation, cover offered and other features of the policies available. Compare what is covered and what is excluded, and what needs to be done for the policy to remain valid, for example, locks on windows. Check on the pay out performance of the insurance companies under consideration.<br />
In evaluating policies, consider the excess on the policy. An excess is set by insurance companies to reduce the number of minor claims that may be made. This allows for a lower premium to be charged.<br />
You have a duty to let your insurer know all matters relevant to insuring your business. If you do not comply with your duty of disclosure, the payout in respect to a claim may be reduced, or the contract may be cancelled. Notify your insurer immediately of any change.<br />
Property should be adequately covered. If you under insure property and the policy contains an average clause, any settlement payout will be reduced by the percentage under insured. For example, if a fire causes $50,000 damage to a property worth $100,000 and insured for $50,000, the payout will be $25,000 as only half the risk was insured. Always obtain a cover note if there is a risk of trading without a policy being issued in time. Insurance is a complex area. Make sure that you understand all the terms and conditions of the insurance contract before you sign.</div><div style="text-align: justify;"><br />
Risk management strategy<br />
Businesses should establish a risk management strategy. This involves developing policies, procedures and practices to identify, analyse, assess, treat and monitor the risks inherent in operating the business. This should minimise costly and stressful problems and reduce insurance claims and premiums. Insurance should not be a substitute for proactive loss prevention.</div><div style="text-align: justify;"><br />
Insurance reviews<br />
Insurances should be reviewed at least annually, before renewal, and when assets are acquired or disposed of, and when important changes occur in the business. <br />
<br />
<br />
• Export creditRunning a business is risky, and often involves putting your own finances at risk. Trying to work out what insurance you need when starting out or even afterwards is difficult. However, running a business with basic insurance is a smart way to manage the risks and reduce uncertainty.</div><div style="text-align: justify;"><br />
▌What to insure and for how much? If you’re starting out, working out what to insure against before you’ve even made a profit is hard. Will you insure for every possible risk, or just the most likely? Which are more likely in your business? How much cover do you need? If you over-insure you waste money, and if you under-insure and then make a claim, the insurance company can reduce what they will pay you. This information sheet lists the common risks you can insure for and suggests how to get the best deal.<br />
▌What is ‘under-insurance’? When you take out a policy for a certain amount of cover, and it’s less than the value of what’s being insured, the insurance company can (legally) reduce what it pays you for any claim, including small claims. Insurance companies use different ways to work out how much they’ll reduce a claim by if you’re under-insured. Check your policy for details.<br />
▌What insurance do I need by law? If you employ staff, by law your business needs WorkSafe Injury Insurance in case they’re injured. If you’re an employee of your own incorporated company, you’ll need WorkSafe Injury Insurance to cover yourself. If you’re a sole trader or in a partnership, you’re not eligible for WorkSafe Injury Insurance, so a wise move is to get sickness and accident insurance. Sole traders and partnerships should also consider income-protection insurance. Even though not legally required, operating without a public liability policy for the business is not recommended.</div><div style="text-align: justify;">You can tailor a policy to suit your business Insurance policies can be changed to suit your needs. If a policy doesn’t cover a particular risk in your business, you can ask to have a separate clause added to the policy. To save money and avoid buying policies you don’t need, consult with an insurance broker or get quotes from several insurance companies.<br />
▌Packaging several policies together is generally cheaper Try to buy your insurance from a company normally offering business insurance instead of one selling mainly domestic insurance. Combined types of insurance (small business ‘packs’) are available. Some examples of these are commercial, shop, retail, industrial, office, trades, and business vehicle insurance.<br />
▌Payments (premiums) can be paid in instalments Insurance companies often let you pay premiums in monthly instalments, but some will charge extra.<br />
<br />
<br />
Types of insurance<br />
There are many types of insurance to consider for your<br />
business, including:<br />
• Workers’ compensation<br />
• Public liability<br />
• Product liability/faulty workmanship<br />
• Professional indemnity<br />
• Directors and office bearers<br />
• Fidelity guarantee<br />
• Life insurance (including keyman, partnership and<br />
permanent disability)<br />
• Sickness and accident; trauma<br />
• Motor vehicle<br />
• Burglary and theft; money<br />
• Fire and perils; storm and tempest<br />
• Consequential loss<br />
• Machinery failure<br />
• Marine insurance<br />
• Business interruption<br />
<br />
<br />
references<br />
1. http://www.business.vic.gov.au/busvicwr/_assets/main/lib60208/sbv_infosheet_basic_business_insurance.pdf<br />
2. http://www.smallbusiness.wa.gov.au/assets/Small-Business-Briefs/small-business-brief-insurance.pdf</div>Mbah Dukun Bagonghttp://www.blogger.com/profile/11470816750279634237noreply@blogger.com5tag:blogger.com,1999:blog-6818456655840140993.post-1754801283835212272011-03-05T08:22:00.000-08:002011-03-05T08:28:08.684-08:00Business Plan Guidelines and 10 ways to ruin it<div style="text-align: justify;"><br />
</div><div style="text-align: justify;">Writing a Business Plan will probably take a lot of time. Up to 100 hours or more is not uncommon for a new business that requires a lot of research.</div><div style="text-align: justify;">A typical plan will have three sections. Section one is a written section describing Management and Marketing aspects of the business. Section Two includes financial projections. Section Three is supplemental information.</div><div style="text-align: justify;">A short (3-5 pages) Executive Summary is often added at the beginning of more complex business plans.</div><a name='more'></a><br />
<div style="text-align: justify;">• <b>Section One</b> should be thorough, but concise and to-the-point. Use headlines, graphs and "bullets" to improve readability. Length of this section is usually 10 - 20 pages.</div><div style="text-align: justify;">• <b>Section Two</b> describes in numbers the outcome of your business strategies and plans. Your financial projections should be based on facts and research, not “wild guesses.” Be prepared to justify your numbers.</div><div style="text-align: justify;">• <b>Section Three</b> contains supporting information to reinforce the first two sections. This section’s contents will vary with your type of business. Owners should be very involved in the planning process. Hiring someone to do it or delegating it to someone who is not a key member of the company will result in an inferior plan.</div><div style="text-align: justify;">No plan (or a poor plan) is a leading cause of business failure. You can improve your chances of success with a good Business Plan.</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><b>Ten Ways to Ruin Your Business Plan</b></div><div style="text-align: justify;">These errors in business plan preparation and presentation will undermine the credibility of the plan and hurt your chances to receive funding:</div><div style="text-align: justify;">1. Submitting a “rough copy,” (with coffee stains and typos) tells the reader that management doesn’t take the planning process seriously.</div><div style="text-align: justify;">2. Outdated historical financial information or unrealistic industry comparisons will leave doubts about the entrepreneur’s planning abilities.</div><div style="text-align: justify;">3. Unsubstantiated assumptions can hurt a business plan; the business owner must be prepared to explain the “why” of every point in the plan.</div><div style="text-align: justify;">4. Too much “blue sky” - a failure to consider prospective pitfalls - will lead the reader to conclude that the idea is not realistic.</div><div style="text-align: justify;">5. A lack of understanding of financial information. Even if someone else prepares the projections, the owner must be able to explain them.</div><div style="text-align: justify;">6. Lack of specific, detailed strategies. A plan that includes only general statements of strategy (“We will provide world class service and the lowest possible price.”) without important details will be dismissed as fluff. Especially important if the business plan is prepared for a lender:7 No indication that the owner has anything at stake. The lender expects the entrepreneur to have some equity capital invested in the business.</div><div style="text-align: justify;">7. Unwillingness to personally guarantee any loans. If the business owner isn’t willing to stand behind his or her company, then why should the bank?</div><div style="text-align: justify;">8. Starting the plan with unrealistic loan amounts or terms. Do your homework and propose a realistic structure.</div><div style="text-align: justify;">9. Too much focus on collateral. Even for a cash-secured loan, the banker is looking toward projected profits for repayment of the loan. Cash flow should be emphasized as the source of repayment.</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">OUTLINE OF SAMPLE BUSINESS PLAN<br />
I. Executive Summary<br />
[This is a short summary of the contents of the Business Plan, so it might be easier to write Section<br />
I after completing all the other sections.]<br />
A. Business Concept – what you are planning to do, the what of your business<br />
B. Current Profile<br />
C. Key Success factors<br />
D. Financial Needs, Sources and Projections<br />
II. Company Description<br />
A. Vision Statement, Mission and Values<br />
B. Primary, Secondary Objectives<br />
C. Location, Physical Facilities<br />
D. Organizational Structure<br />
III.Market Analysis<br />
A. Overview of Business Landscape (Local, National, International)<br />
B. Changes in Your Industry<br />
C. Market Segments<br />
D. Target Market, Target Customers<br />
E. Customer Characteristics<br />
1. Demographics (Age, Gender, Education, Familial Structure, etc.)<br />
2. Income and Spending Habits<br />
3. Geographical Location<br />
4. Current Behavior and Trends that Will Drive Future Behavior<br />
5. Other Unique Attributes<br />
IV. Competitive Analysis<br />
A. Primary Competitors and Nature of Competition<br />
B. Competitive Products/Services<br />
C. Key Competitive Strengths and Weaknesses<br />
D. Key Industry Threats [to Your Company]<br />
The Basics on How to Develop a Business Plan: NCCED – Page 3<br />
V. Products and Services<br />
A. Product/Service Description<br />
B. Pricing and Positioning<br />
C. Growth Possibilities<br />
VI. Strategy<br />
A. Key Competitive Capabilities<br />
1. Company strengths or market niches?<br />
2. What is unique about your product or services?<br />
3. Investors/Supporters/Members/Employees<br />
4. Technological Efficiencies<br />
B. Key Competitive Opportunities<br />
1. Products or services not currently available<br />
2. New or unmet needs of target customers<br />
3. New or emerging issues, trends or innovations<br />
4. Prospective B2B Networks, PublicPrivate<br />
Collaborations, etc.<br />
5. Technological Efficiencies<br />
C. Implementation Strategies<br />
1. Seasonal and/or Cyclical Considerations<br />
2. Program, Policy and/or Regulatory Considerations<br />
VII. Marketing and Projected Growth<br />
A. Company/Product/Service Branding<br />
B. Marketing and Sales Strategies<br />
C. Advertising<br />
D. Customer Promotions/Incentives<br />
E. OTHER Considerations<br />
VIII. Operations<br />
A. Organizational Structure<br />
B. Key Personnel<br />
C. Product/Service Delivery/Cycle<br />
D. Customer Service Plan/Membership Services<br />
E. Quality Assurance/Emergency Preparedness<br />
F. Facilities<br />
IX. Financials<br />
A. Assumptions and Comments<br />
B. Starting Balance Sheet<br />
C. Profit and Loss Projections<br />
D. Cash Flow Projections<br />
X. Appendix/Supporting Documentation<br />
A. Market Studies<br />
B. Resumes of Partners<br />
C. Signed Contracts<br />
D. Articles<br />
E. OTHER </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">references</div><div style="text-align: justify;">1. http://www.ncced.org/documents/BusinessPlanArticle.pdf</div><div style="text-align: justify;">2. http://www.va.gov/vetbiz/library/busplan.pdf</div><div style="text-align: justify;">3. http://www.unctad.org/en/docs/iteiia5_en.pdf </div><div style="text-align: justify;"><br />
</div>Mbah Dukun Bagonghttp://www.blogger.com/profile/11470816750279634237noreply@blogger.com3tag:blogger.com,1999:blog-6818456655840140993.post-59293832544136316962011-03-05T07:44:00.000-08:002011-03-05T07:58:46.550-08:00BUSINESS PLAN<div style="text-align: justify;"><i>Mbah Dukun Bagong Lee is a Shaman who study at medical faculty, now learning about business. before post this article, he read business article. now he share all about he has got.</i></div><div style="text-align: justify;"><i><br />
</i></div><div style="text-align: justify;">What is business plan?</div><div style="text-align: justify;">A business plan is a comprehensive, written description of the business of an enterprise. It is a detailed report on a company's products or services, production techniques, markets and clients, marketing strategy, human resources, organization, requirements in respect of infrastructure and supplies, financing requirements, and sources and uses of funds. The business plan describes the past and present status of a business, but its main<br />
purpose is to present the future of an enterprise. It is normally updated annually and looks ahead for a period of usually three to five years, depending on the type of business and the kind of entity.<a name='more'></a><br />
It is a crucial element in any application for funding, whether to a venture capital organization or any other investment or lending source. Therefore, it should be complete, sincere, factual, well structured and reader-friendly.</div><div style="text-align: justify;">Whether your company is organized as a sole proprietorship small business, corporation or nonprofit, a wellwritten business plan is considered your most important roadmap to success. The document may vary in length, but should be comprehensive and include a specific timeline: at least six months of detailed strategy, a year or two of general planning, and a vision about where the business is headed for the next five years.<br />
A business plan has to answer some critical questions about the new business venture.</div><div style="text-align: justify;"></div><br />
1. Is this a viable business idea?<br />
2. Is there a market for this product or service?<br />
3. What will it take to produce and deliver the product or service (materials, resources, personnel)<br />
4. Who will buy it, how much, how often and how will your potential customers find out about you?<br />
5. Who and where is your competition?<br />
6. Your cash flow projections should cover both the startup phase of your business and ongoing operations. How much will it take to open the doors?<br />
<div style="text-align: justify;">7. And, what will it take to cover direct costs, overhead and expenses, and still clear a ‘profit?’<br />
A startup business or organization begins to incur costs (licenses, fees, permits, leases, telephones, computers, etc) long before it starts to generate any income. Most likely, money will be going out faster than it is coming in. This negative cash flow will continue until your business or organization is generating enough revenue to equal the amount of money going out the door. This is the business’ cash breakeven point. You, the business owner, must have some way of financing the negative cash flow of your business until you reach that cash breakeven point. If you project that your business will have an accumulated negative cash flow of $50,000 before you reach your cash breakeven point, then you need to determine how you will get the $50,000 you’ll need before you start the business.<br />
Most banks and traditional lenders do not usually lend to startup businesses. However, if you’re starting a business in a growth industry and you’ve got a solid business plan that clearly shows how your business will make money, a bank loan might be possible. The lender is looking for a solid plan for the money – how much you’ll need, how you’ll use it, and how you’ll pay it back! Your personal credit history matters, and you’ll need some collateral to guarantee the loan. The loan is not a substitute for your own capital, though. You’ll need more at every stage of your business development.</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">The same holds true for nonprofit corporations. Your nonprofit may be seeking loans as well as grant monies to fund your operations, programs and services. For government agencies and foundations, your business plan must explain how your organization’s mission fits their program and funding goals, provide a clear plan for your organization’s operations and service delivery systems, and a sound financial structure that will leverage any loans or grant dollars you might receive and ensure the sustainability of the organization.<br />
A comprehensive business plan should help separate your business or organization from the thousands of others seeking financing and trying to enter the marketplace. There are online templates and products that can be useful in producing a professional looking business plan in the standardized format that serious financiers expect. The following are some critical elements for consideration as you develop a business plan.</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">Why Write a Business Plan?<br />
A Business Plan helps you evaluate the feasibility of a new business idea in an objective, critical, and unemotional way.<br />
• Marketing – Is there a market? How much can you sell?<br />
• Management – Does the management team have the skill?<br />
• Financial – Can the business make a profit?<br />
It provides an operating plan to assist you in running the business and improves your probability of success.<br />
• Identify opportunities and avoid mistakes<br />
• Develop production, administrative, and marketing plans<br />
• Create budgets and projections to show financial outcomes<br />
It communicates your idea to others, serves as a “selling tool,” and provides the basis for your financing proposal.<br />
• Determine the amount and type of financing needed<br />
• Forecast profitability and investor return on investment<br />
• Forecast cash flow, show liquidity and ability to repay debt<br />
Who will use the plan? If you won't use the plan to raise money, your plan will be internal and may be less formal. If you are presenting it to outsiders as a financing proposal, presentation quality and thorough financial analysis are very important.</div><div style="text-align: justify;"><br />
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</div><div style="text-align: justify;">references</div><div style="text-align: justify;">1. http://www.ncced.org/documents/BusinessPlanArticle.pdf</div><div style="text-align: justify;">2. http://www.va.gov/vetbiz/library/busplan.pdf<br />
3. http://www.unctad.org/en/docs/iteiia5_en.pdf </div>Mbah Dukun Bagonghttp://www.blogger.com/profile/11470816750279634237noreply@blogger.com7