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I Advice - How Merchant Accounts Can Save You Money
‘Cash is the king’ is an undebatable truth. The vital importance of cash to the growth and day-to-day management of modern small businesses is very much evident. Even though profit, turnover and market shares are indicators of success, there is no replacement for cash. If there is no cash in the bank to meet monthly bills, wage runs and loan payments then any business can succumb to the crunch. Cash flow is generally acknowledged as the only pressing concern of the small and medium sized business enterprises. Small businesses typically enter into factoring arrangements to solve cash flow problems.The lack of access to capital has prevented many small businesses from growing and capitalizing on the many opportunities that are available to them. Small companies do have to forgo large deals or opportunities because they do not have the necessary capital to obtain the resources to service the account. Inadequate capital
$4,500 x 13.5% (Initial or One Time Transactions) - $ 607.50
$4,500.00 (In total sales)
- 607.50 (Total fees)
= $3,892.50 (Net profit after all processing fees have been deducted)
Ok. Well Bill certainly had an excellent first month accepting credit cards with his new business venture. But let’s see how Bill would have made out if he would hav
Being a 23 year old entrepreneur, I am slightly biased when I make the statement that the best time in life to start a business is before your 25th birthday. That said, I still think I make a great case for starting a business sooner than later (please note, I understand that the statements I make don't apply to EVERYONE, however I feel they apply to the overwhelming majority of people).By starting a business when you are young, you avoid procrastinatingEver hear someone say "I'd love to start my own business someday but...."? Those are the people who ultimately won't start their own business. They are waiting for the "perfect" time to do it. The moment when all the planets align. It will never happen. You can always make up an excuse. When you are young, it's college loans that need to be paid back or a lack of experience. As you age, it becomes your marriage, kids, house, etc. There will always be a
For this experiment, we will use a fictional character named Bill. Bill owns and operates a great online resources for marketing tools and resources. Bills website is a membership based website, and therefore could potentially be approved for both third party processing and an internet merchant account. Bill starts off processing his business with a popular third party processor who offers him the following plan:
Start Up Fee - None
Monthly Fee - None
Transaction Fees - 13.5% (Initial or One Time), 15.0% (Recurring)
Bills sets up his business with this popular third party processor and charges $30 per month. He has built an extensive reciprocal link exchange directory, has purchased some PPC advertising on a few of the best search engines, and has reached a excellent spot in the content based search listings for the top 5 search engines. His customer base has grown from zero before accepting credit cards, to 150 members, is just one month. Bill can’t believe his success at internet marketing, and is planning on building even more web based resources and tools for his website, thus increasing the value and content. He is ecstatic at the initial results, so let’s take a look at Bills numbers:
$30 (Per Membership Sold) x 150 (Memberships Sold) = $4,500.00
$4,500 x 13.5% (Initial or One Time Transactions) - $ 607.50
$4,500.00 (In total sales)
- 607.50 (Total fees)
= $3,892.50 (Net profit after all processing fees have been deducted)
Ok. Well Bill certainly had an excellent first month accepting credit cards with his new business venture. But let’s see how Bill would have made out if he would have
A key reason for companies’ downhill slide is undoubtedly the quality of CEO. Most turnaround situations arise because of the CEO’s incompetence, ineptness, carelessness, ego and /or inexperience. It is simply too much to ask or expect the incumbent management to be objective in evaluating its past performance when the CEO is probably the same person whose mismanagement caused the company’s financial health to deteriorate in the first place. The problem is that some CEOs may lack training even though they may think they know it all.Sir John Harvey Jones said that the reason many companies always find themselves in trouble is almost always due to the problems right at the top. Sir John Harvey-Jones is one of Britain’s best-known and most respected business leaders. Besides being the Chairman of ICI he won the fame as the star of the BBC TV series ‘Troubleshooter.’ Harvard’s Professor Rosabeth Moss
Start Up Fee - None
Monthly Fee - None
Transaction Fees - 13.5% (Initial or One Time), 15.0% (Recurring)
Bills sets up his business with this popular third party processor and charges $30 per month. He has built an extensive reciprocal link exchange directory, has purchased some PPC advertising on a few of the best search engines, and has reached a excellent spot in the content based search listings for the top 5 search engines. His customer base has grown from zero before accepting credit cards, to 150 members, is just one month. Bill can’t believe his success at internet marketing, and is planning on building even more web based resources and tools for his website, thus increasing the value and content. He is ecstatic at the initial results, so let’s take a look at Bills numbers:
$30 (Per Membership Sold) x 150 (Memberships Sold) = $4,500.00
$4,500 x 13.5% (Initial or One Time Transactions) - $ 607.50
$4,500.00 (In total sales)
- 607.50 (Total fees)
= $3,892.50 (Net profit after all processing fees have been deducted)
Ok. Well Bill certainly had an excellent first month accepting credit cards with his new business venture. But let’s see how Bill would have made out if he would hav
Years ago, I had a conversation with a friend who was thinking of getting a job in sales. He asked me which I thought was better, Salary or Commission. This was my answer."Here's what a salary is: an agreement between you & your employer that they will pay you a certain sum per hour. Let's say $10 an hour. Your work will make your employer much more than $10 an hour, or you'll lose your job. So the agreement is; Your employer will pay you the FIRST $10 an hour that you earn for him. and he keeps the rest." Friend- What do you mean 'The rest'?" Me- "If you get paid $10 an hour, but you generate less than $10 an hour in profits to your employer, how long do you keep your job?" Friend- "Not long, I guess" Me- "Right, in fact most employers make a multiple of your salary off your results. They have to, if they want the business to grow" Friend "That almost seem
$30 (Per Membership Sold) x 150 (Memberships Sold) = $4,500.00
$4,500 x 13.5% (Initial or One Time Transactions) - $ 607.50
$4,500.00 (In total sales)
- 607.50 (Total fees)
= $3,892.50 (Net profit after all processing fees have been deducted)
Ok. Well Bill certainly had an excellent first month accepting credit cards with his new business venture. But let’s see how Bill would have made out if he would hav
Worldwide metal production is ascertained directly through ore deposits from mining, smelting, and refining. What are secondary metals? They are metals discarded through industrial and manufacturing operations or as commercial products that are now obsolete. The benefit that recycling provides is that we return these waste materials back into the general manufacturing so they can be used for the production of new metal products, thus saving costs and making things more efficient in general. The secondary metals industry is involved in all aspects of this process, from locating scrap, to getting it to a recycle facility and then re-using the material for new metal-based products.What's the rationale for determining if scrap metal is worth recovering? Its potential for profit. In terms of the basic factors that determine if a particular metal should be recycled, the following areas are looked at: How
$30 (Per Membership Sold) x 150 (Memberships Sold) = $4,500.00
$4,500 x 13.5% (Initial or One Time Transactions) - $ 607.50
$4,500.00 (In total sales)
- 607.50 (Total fees)
= $3,892.50 (Net profit after all processing fees have been deducted)
Ok. Well Bill certainly had an excellent first month accepting credit cards with his new business venture. But let’s see how Bill would have made out if he would hav
Many of us go into business with unbounded enthusiasm, fervent passion and great ideas only to have ‘people issues’ confront us sometime, somewhere down the track, assertions of unfair dismissal being one.These ‘people issues’ always seem to raise their ugly heads when we least need the accompanying grief. After all we are in business for lifestyle and enjoying the journey and this wasn’t part of the deal.Being regarded as the softer skill’s employee relations is usually placed on the back burner and considered a waste of effort and certainly not an investment and almost like well ‘throwing money down the dunny’.Thud!!! We are often bought back down to reality when we are required to roll up our sleeves and enter the fray of employee relations when something goes wrong and often when the issues have progressed to the critical and emotional stage where it is harder to resolve.In my day to day pr
$4,500 x 13.5% (Initial or One Time Transactions) - $ 607.50
$4,500.00 (In total sales)
- 607.50 (Total fees)
= $3,892.50 (Net profit after all processing fees have been deducted)
Ok. Well Bill certainly had an excellent first month accepting credit cards with his new business venture. But let’s see how Bill would have made out if he would have secured an internet merchant account for his new business:
Start Up Fee None
Monthly Fee $15.00
Discount Rate 2.35% (Initial, One Time or Recurring)
Per Trans Fee .30 cents
Gateway Mo. Fee $15.00
AVS Fees .10 cents
Now the first thing we see is that the merchant account company is showing us more fees. This may be disheartening at first sight, but we should really explore what these fees are, and how they affect our bottom line.
Start Up Fee: This remains the same. Bill paid zero to get setup with his new merchant account, just as he paid zero to get setup with the third party processing account.
Monthly Fee: The third party processor offered us no monthly fees, yet we must pay $15.00 with the merchant account company.
Discount Rate: The merchant account has labeled one of their fees as “discount rate.” These fees are the fees Bill will pay as a percentage of each transaction. They are similar to the main fee charged by the third party processor. This fee when charged by the merchant account company is substantially smaller than the high percentage charged by the third party processor. But we will wait till the end of this experiment to see who offers the better comprehensive deal.
Per Trans Fee: The merchant account company charges Bill .30 per transaction he processes through his merchant account. Of course, we have already established that Bill will pay no per transaction fees with the package he received from the thi
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