Tuesday, September 29, 2009

The Seen and Unseen-The Problems when a Business is Down Temporarily

The Seen and Unseen-The Problems when a Business is down temporarily

Let's suppose for a moment, that a group of college friends decide to start up a small retail business. The Group plans every detail out: Financing, Equipment, Location, Market Analysis, Inventory, etc. They even purchase General and Professional Liability Insurance. They open the business! Grand Opening!!! YAAA!! They are making money! They are beginning to pay back all the money from the start costs of the business. A year or two goes by, they are still paying back the start up cost for the business, and BOOM!!! A Fire destroys EVERTHING! Are these guys covered? The General/Professional Liability policy covers this situation, right? WRONG! Now these guys have lost everything, and they must continue to pay back the investors for the start up costs, lost equipment, lost inventory, etc etc, etc.

What could be done to prevent this situation? Many Business Owners can purchase a Commercial Insurance Policy known as a BOP(Business Owner's Policy). The details of this policy may vary from company to company, but here are some problems that our Entrepreneurs face in this story:

  • Loss of Business Equipment-How is this equipment going to be replaced?
  • Loss of Business Income-How are the guys going to pay back the start up costs, overhead, etc
  • Lost inventory-Once the damage is fixed, they need to purchase inventory
  • Law Suit-If these business owners are the ones found negligent in this peril, how will the legal costs be covered?

The BOP addresses all of these issues. The coverage limits and amounts may vary from company to company, but the point is this: Always look at your Commercial insurance as part of your business plan. To many times Business owners attempt to start a business from a shoe string budget. Murphy's Law typically loves these types of situations! In the planning process of your new enterprise, talk to insurance professional about a BOP package for YOUR new or existing enterprise! If have questions, call me at 866-846-4901 or email at:rbjbizgroup@gmail.com

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Tuesday, September 22, 2009

Double Minded Man..Please Make a Choice!!!

I dislike people that cant make a decision. It is very very frustrating. If you have ever dealt with this type of individual, you can understand. In the investment world, you have to have a clear focus on your objective, and you must not be double minded in your wealth accumulation vehicle(s). Some folks like risks but dont like the downside effects. Others like more conservative investments, but inflation beats them up also. Here in lies the paradox! I have a video for people who are double minded! You can have the best of both worlds! There are vehicles that allow clients to have Stock Market like gains, with guarantees of NO LOSS OF PRINCIPLE! This video explains how it works! This video is from best selling author Douglas Andrew and his son. Call 866-846-4901 to see how this product can work for you!

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Friday, September 4, 2009

Thursday, September 3, 2009

Zero is my Hero!

No, I am not thinking about the old "School House Rock Video". Many folks have lost up to 50% of the value in their current 401k or other qualified plan. Where is the guarantee? What insurance or protection does one have when the market tumbles? Should we just buy more shares in case the market turns upward? What written guarantees are available if does NOT happen?
These questions should be asked at the time of the investment account inception. The problem is this: Folks are sold on the "what if". What if the market does 20%? The average investor can not time the market to earn 20%! The average investor during the 1900s earned about 2-5% when the market was booming? Why? Lack of knowledge in the science of Market timing. There are investors out there who are accumulating wealth and NOT losing money! They will get a 0% ROI on their money when the market goes down! They never lose their principle! That is more important than ROI! So ZERO IS A HERO in a down market! When the market goes up, they still can earn an Excellent ROI on their money! This video below explains it all.

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