Healthcare Reform Everyone is talking

about it Read any paper watch any

news show The words healthcare reformlsquo always come up

But what does this mean to the medium business What can

you as a medium business owner expect from it

First I will focus on the positives First and foremost nobody

will be denied coverage due to a pre-existing condition every-

one can have health insurance On top of that if you have a

severe illness such a cancer you will not have a ceiling on

how much money your insurance company will spend each

year on your care for instance you will not have a $100000

cap which should help reduce medical bankruptcy Support-

ers claim that insurance rates should go down because there

will be more competition and efficiencies in the insurance mar-

ket In addition those of us currently insured will not have to

carry the burden of paying for the uninsured

So now the negatives Current estimates are that this reform

will cost our country nearly $100 billion a year Where does this money come from We

are told that money will be cut from areas where it is being wastefully spent however we

are not being told what areas those are and what exactly is considered ―wasteful spending

in government All Americans will be required to purchase health insurance If you do not

you will incur a 2 tax increase In addition if you make more than $500K a year you are

looking at a 1 tax increase as well It is possible that health insurance rates increase instead

of decrease While as I stated earlier efficiencies and competition increase so might the cost

of providing additional benefits

We are still awaiting the final specifics of the bill but needless to say itlsquos going to effect all of

us in different ways Large corporations like Caterpillar and John Deer say that this bill is

going to cost them billions each year We can only cross our fingers that that is not the case

for medium businesses

Letter From The Editor

Special Points of

Interest

Selling a Product that

isnlsquot a Product at All

Putting Value on your

Business

Workplace Cleanli-

ness

Inside this issue

April 2010 Volume I Issue V

Sales amp Marketing 2

Legal 3

Technology 4

Human Resources 6

How To 8

Member Spotlight 9

Comic Cornet 10

Page 2 Medium Business Alliance Volume I Issue V

In todaylsquos economy more than ever small to medium sized

companies are forming that offer services that are not tan-

gible items but actually expertise or knowledge Of

course it is still a product that you are marketing and sell-

ing but when that product is knowledge and expertise in

the form of consulting how do you market it The answer

is actually quite simple networking

I own a commercial real estate development and consulting

business that handles large scale multi million dollar pro-

jects Letlsquos face it anyone that may need expertise in that

area is not likely to go to the

yellow pages and start calling

people based on their add or do

a search on line and see who

pops up They are likely to start

asking around amongst business

associates friends and family

whom they know and trust for

names and recommendations

They want to be sure that they

hire someone with a proven

track record who comes with

strong personal recommenda-

tions So how do you find the

people or businesses that need your services The answer

is that you donlsquot Now that may seem crazy at first but

the real answer is that if you network properly they will

find you We live in a relationship driven world and busi-

ness will come through relationships

So how do you go about this to assure that your clients

will find you The starting point is coming up with a target

profile for your customer You need to identify the gen-

Sales amp Marketing Selling a Product that isnrsquot a Product at All By Jeff Pape

eral characteristics of your ideal client and then work from

that base Once you have a profile established you begin

to systematically go through all the contacts you and your

partners and employees have developed in your profes-

sional and personal lives to see where there is overlap with

your ideal client Those relationships are where you start

Imagine throwing a stone into a calm pond The initial

splash are those personal contacts that have significant

overlap with your target client A personal reference from

someone who knows you and your business will by far give

you the best opportunity to land work

So do you stop there and wait

for all that business to come

pouring in the door Not if you

want your business to be a suc-

cess Now you attack the next

waves the ripples that continue

to form around the initial splash

Now you look for professional

organizations trade groups so-

cial networking groups that

might have overlap with your

customer Once you identify

these groups do you send a

mass email to their membership list Absolutely not At

least not yet Networking is all about that personal con-

nection You do your research and find a person or small

group of people within that organization that has influence

amongst the members and you do everything you can to

get a personal audience with them Why do you do this

Because you want to introduce yourself in a one on one or

very small group setting so that you have the best chance

of building a personal relationship or connection That

ldquoImagine throwing a stone into a

calm pond The initial splash are

those personal contacts that have

significant overlap with your target

client A personal reference from

someone who knows you and your

business will by far give you the

best opportunity to land workrdquo

Page 3 Medium Business Alliance Volume I Issue V

Legal Oral Contracts Do they carry any weight By Karen T Hartline

Believe it or not the old-fashioned handshake began as a

means for two people to assure one another that neither

was carrying a weapon Over the years this simple gesture

has evolved into a contractual symbolmdashor a guaranteemdash

for an oral agreement But in an era of phone-book sized

contracts fine print and legal battles does time-honored

handshake deal still carry any weight

The answer is yesmdashas long as you can prove it in court Its

interesting to note that many powerful people have en-

gaged in handshake deals from Bill Clinton and Newt Gin-

grich to Bill Gates and Steve Jobs But more than likely

these handshake deals were followed by large contracts

that outlined key deal points and terms If you are the type

of person who prefers informal agreements sealed by a

handshake at the very least have a few people on hand to

witness you shake on it A handshake deal is always more

binding when there are witnesses to the agreement In

other words avoid agreeing to anything in a dark alley when no one else is looking

If you did go ahead and shake on an oral contract with no one to witness it you should probably get right to work on

your half of the bargain Because putting your words into immediate action is another way to validate your oral agree-

ment If you begin acting on your agreement with the other party acting in compliance you create additional evidence

that a deal was struck Of course the only problem with this strategy is that it requires the other party to immediately

begin work on their half of the agreement

then creates the personal reference or introduction

that you need to the rest of the membership Remem-

ber a personal recommendation gives you by far the

best chance to actually land that new client

Of course you still need to get the word out to as many

people as you can so there are certainly times and

situations where a mass email is very appropriate For

example once you have accomplished that initial meet-

ing with an influential person within a group A mass

email campaign is much more effective either coming

from a member of that group or at the very least in-

cluding a recommendation quote from a member of

that group as your lead in the email A web site is also

a critical marketing tool but in a slightly different way

than if you are selling a tangible item Your web site

needs to be very professional and needs to clearly con-

vey your companylsquos experience and services offered

Then you use it as a follow up tool once you have made the

personal contact From the initial meeting you can refer

your potential client to the web site to learn more details

about who you are what youlsquove done and what you can do

for them It can be a great tool to help you close the deal

My company is working in arguably one of the toughest are-

nas in the economy today commercial real estate It is an

industry where development has virtually halted there is

little to no capital available to fund deals and banks are fore-

closing on properties left and right So what has kept us

active in the most challenging economic times our industry

has ever seen Itlsquos simple networking and relationships So

remember that every interaction with a live person even

someone who is not in your business field could be the con-

nection to your next client so treat them accordingly

Jeff Pape is President of DampA Development and Consulting Inc a full service commercial real estate development and

consulting company Jeff has worked in the commercial real estate industry for over 17 years and has written several arti-

cles that have been published in national trade publications You can learn more about DampA at their web site wwwdna-

developmentcom

Page 2 Medium Business Alliance Volume I Issue V

In todaylsquos economy more than ever small to medium sized

companies are forming that offer services that are not tan-

gible items but actually expertise or knowledge Of

course it is still a product that you are marketing and sell-

ing but when that product is knowledge and expertise in

the form of consulting how do you market it The answer

is actually quite simple networking

I own a commercial real estate development and consulting

business that handles large scale multi million dollar pro-

jects Letlsquos face it anyone that may need expertise in that

area is not likely to go to the

yellow pages and start calling

people based on their add or do

a search on line and see who

pops up They are likely to start

asking around amongst business

associates friends and family

whom they know and trust for

names and recommendations

They want to be sure that they

hire someone with a proven

track record who comes with

strong personal recommenda-

tions So how do you find the

people or businesses that need your services The answer

is that you donlsquot Now that may seem crazy at first but

the real answer is that if you network properly they will

find you We live in a relationship driven world and busi-

ness will come through relationships

So how do you go about this to assure that your clients

will find you The starting point is coming up with a target

profile for your customer You need to identify the gen-

Sales amp Marketing Selling a Product that isnrsquot a Product at All By Jeff Pape

eral characteristics of your ideal client and then work from

that base Once you have a profile established you begin

to systematically go through all the contacts you and your

partners and employees have developed in your profes-

sional and personal lives to see where there is overlap with

your ideal client Those relationships are where you start

Imagine throwing a stone into a calm pond The initial

splash are those personal contacts that have significant

overlap with your target client A personal reference from

someone who knows you and your business will by far give

you the best opportunity to land work

So do you stop there and wait

for all that business to come

pouring in the door Not if you

want your business to be a suc-

cess Now you attack the next

waves the ripples that continue

to form around the initial splash

Now you look for professional

organizations trade groups so-

cial networking groups that

might have overlap with your

customer Once you identify

these groups do you send a

mass email to their membership list Absolutely not At

least not yet Networking is all about that personal con-

nection You do your research and find a person or small

group of people within that organization that has influence

amongst the members and you do everything you can to

get a personal audience with them Why do you do this

Because you want to introduce yourself in a one on one or

very small group setting so that you have the best chance

of building a personal relationship or connection That

ldquoImagine throwing a stone into a

calm pond The initial splash are

those personal contacts that have

significant overlap with your target

client A personal reference from

someone who knows you and your

business will by far give you the

best opportunity to land workrdquo

Page 3 Medium Business Alliance Volume I Issue V

Legal Oral Contracts Do they carry any weight By Karen T Hartline

Believe it or not the old-fashioned handshake began as a

means for two people to assure one another that neither

was carrying a weapon Over the years this simple gesture

has evolved into a contractual symbolmdashor a guaranteemdash

for an oral agreement But in an era of phone-book sized

contracts fine print and legal battles does time-honored

handshake deal still carry any weight

The answer is yesmdashas long as you can prove it in court Its

interesting to note that many powerful people have en-

gaged in handshake deals from Bill Clinton and Newt Gin-

grich to Bill Gates and Steve Jobs But more than likely

these handshake deals were followed by large contracts

that outlined key deal points and terms If you are the type

of person who prefers informal agreements sealed by a

handshake at the very least have a few people on hand to

witness you shake on it A handshake deal is always more

binding when there are witnesses to the agreement In

other words avoid agreeing to anything in a dark alley when no one else is looking

If you did go ahead and shake on an oral contract with no one to witness it you should probably get right to work on

your half of the bargain Because putting your words into immediate action is another way to validate your oral agree-

ment If you begin acting on your agreement with the other party acting in compliance you create additional evidence

that a deal was struck Of course the only problem with this strategy is that it requires the other party to immediately

begin work on their half of the agreement

then creates the personal reference or introduction

that you need to the rest of the membership Remem-

ber a personal recommendation gives you by far the

best chance to actually land that new client

Of course you still need to get the word out to as many

people as you can so there are certainly times and

situations where a mass email is very appropriate For

example once you have accomplished that initial meet-

ing with an influential person within a group A mass

email campaign is much more effective either coming

from a member of that group or at the very least in-

cluding a recommendation quote from a member of

that group as your lead in the email A web site is also

a critical marketing tool but in a slightly different way

than if you are selling a tangible item Your web site

needs to be very professional and needs to clearly con-

vey your companylsquos experience and services offered

Then you use it as a follow up tool once you have made the

personal contact From the initial meeting you can refer

your potential client to the web site to learn more details

about who you are what youlsquove done and what you can do

for them It can be a great tool to help you close the deal

My company is working in arguably one of the toughest are-

nas in the economy today commercial real estate It is an

industry where development has virtually halted there is

little to no capital available to fund deals and banks are fore-

closing on properties left and right So what has kept us

active in the most challenging economic times our industry

has ever seen Itlsquos simple networking and relationships So

remember that every interaction with a live person even

someone who is not in your business field could be the con-

nection to your next client so treat them accordingly

Jeff Pape is President of DampA Development and Consulting Inc a full service commercial real estate development and

consulting company Jeff has worked in the commercial real estate industry for over 17 years and has written several arti-

cles that have been published in national trade publications You can learn more about DampA at their web site wwwdna-

developmentcom

Page 3 Medium Business Alliance Volume I Issue V

Legal Oral Contracts Do they carry any weight By Karen T Hartline

Believe it or not the old-fashioned handshake began as a

means for two people to assure one another that neither

was carrying a weapon Over the years this simple gesture

has evolved into a contractual symbolmdashor a guaranteemdash

for an oral agreement But in an era of phone-book sized

contracts fine print and legal battles does time-honored

handshake deal still carry any weight

The answer is yesmdashas long as you can prove it in court Its

interesting to note that many powerful people have en-

gaged in handshake deals from Bill Clinton and Newt Gin-

grich to Bill Gates and Steve Jobs But more than likely

these handshake deals were followed by large contracts

that outlined key deal points and terms If you are the type

of person who prefers informal agreements sealed by a

handshake at the very least have a few people on hand to

witness you shake on it A handshake deal is always more

binding when there are witnesses to the agreement In

other words avoid agreeing to anything in a dark alley when no one else is looking

If you did go ahead and shake on an oral contract with no one to witness it you should probably get right to work on

your half of the bargain Because putting your words into immediate action is another way to validate your oral agree-

ment If you begin acting on your agreement with the other party acting in compliance you create additional evidence

that a deal was struck Of course the only problem with this strategy is that it requires the other party to immediately

begin work on their half of the agreement

then creates the personal reference or introduction

that you need to the rest of the membership Remem-

ber a personal recommendation gives you by far the

best chance to actually land that new client

Of course you still need to get the word out to as many

people as you can so there are certainly times and

situations where a mass email is very appropriate For

example once you have accomplished that initial meet-

ing with an influential person within a group A mass

email campaign is much more effective either coming

from a member of that group or at the very least in-

cluding a recommendation quote from a member of

that group as your lead in the email A web site is also

a critical marketing tool but in a slightly different way

than if you are selling a tangible item Your web site

needs to be very professional and needs to clearly con-

vey your companylsquos experience and services offered

Then you use it as a follow up tool once you have made the

personal contact From the initial meeting you can refer

your potential client to the web site to learn more details

about who you are what youlsquove done and what you can do

for them It can be a great tool to help you close the deal

My company is working in arguably one of the toughest are-

nas in the economy today commercial real estate It is an

industry where development has virtually halted there is

little to no capital available to fund deals and banks are fore-

closing on properties left and right So what has kept us

active in the most challenging economic times our industry

has ever seen Itlsquos simple networking and relationships So

remember that every interaction with a live person even

someone who is not in your business field could be the con-

nection to your next client so treat them accordingly

Jeff Pape is President of DampA Development and Consulting Inc a full service commercial real estate development and

consulting company Jeff has worked in the commercial real estate industry for over 17 years and has written several arti-

cles that have been published in national trade publications You can learn more about DampA at their web site wwwdna-

developmentcom

Page 4 Volume I Issue V Medium Business Alliance

Technology and the Internet have

transformed business in ways that

very few people could have predicted

years ago Increasingly the internet is

being used as a cost effective solution

for many of the business operations

An internet business strategy is basi-

cally a plan that how you want to

manage your online presence for your

business

Adopting an integrated approach in

devising a successfully internet strat-

egy to benefit your business a well

planned web presence can increase

the market awareness and branding of

your business that brings you tangible

results

Just as you have a strategic plan to

grow your business you need to de-

velop an internet marketing plan that

Technology Integrated Approach to Internet Strategy for Business By Ajay Prasad

Failing witness testimony or any actions that verify your handshake deal you can always present supporting materials to

strengthen your claim For example any correspondence between two parties is admissible in court particularly if it is

sent certified mail Faxes emails letters memos and receipts all help establish your handshake deal If you are particularly

uncomfortable drawing up a contractmdashsay with a friendmdasha simple thank you letter immediately following a handshake is

always a good way to establish the terms of your agreement The recipient will not think of it as possible evidence but

simply as a polite gesture

Of course none of this is necessary if both parties are happy and everyone lives up to their word In a very simple deal

chances are slim that anyone is going to wind up having to prove anything in court But if there is a dispute that lands you

in court the burden is on you to produce evidence of the transaction

More often than not handshake deals fall apart over the details of the agreement Oral contracts are often useful for sim-

ple exchanges such as I will trade you my old air conditioner for your old refrigerator But for deals with a multitude of

finer points such as employment or lease agreements its always best to get your deal in writing For those of you who

still feel uncomfortable asking your buddy to sign a piece of paper remembermdashits not so much an issue of trust as it is of

clarity Perhaps Nixon said it best when he quipped trust everyone but cut the cards

Reprinted with permission from LegalZoomcom Inc For common legal matters please visit them at

wwwlegalzoomcom

integrates the most effective online

strategies for increasing website traf-

fic and converting visitors into buy-

ers

An internet strategy for any business

includes website planning develop-

ment marketing and management

Planning ensures that your content

targets the right type of customers

For that you have to customize your

web plan to fit your company rather

than following any well-written for-

mula Even so there are standard

components you have to follow

them such as market analysis strat-

egy any specific development plan

marketing and most importantly ex-

pense budget

1 Market research- It is a fundamen-

tal part of any business strategy This

If you are particularly uncomfortable drawing up a contractmdashsay with a friendmdash

a simple ldquothank yourdquo letter immediately following a handshake is always a good

way to establish the terms of your agreement

Page 5 Medium Business Alliance Volume I Issue V

normally includes a target market

analysis market research and a mar-

ket forecast

2 Website strategy- This includes

your mission and objective of starting

an internet business web develop-

ment and marketing strategy

3 Specific development plan- Any

web plan is measured by the result it

produces Therefore implementation

of your plan is more important than

brilliant ideas Start taking action on

the tasks that you have created during

the planning stage

4 Identify your organization goals

Every company has a set of tangible

and intangible goals and identifying

yours will help you better focus on it

and implement them in time

5 Online marketing- Getting the most

out of the online marketing channels

requires specialized techniques like

search engine optimization pay per

click marketing social media optimiza-

tion e-mail marketing and many more

to reach out to your customers

6 Expense budget- This includes de-

tails to track expenses month by

month and follow up with your plan vs

actual analysis

7 Returns (ROI) - Business is driven by

ROI and it is only natural that the

online marketing efforts need to lead

into a positive ROI determined by the

key performance indicators

8 Survey- Get feedback from website

visitors regarding what bought them to

you or how their experience has been

on your website

The Internet presents a wide range of

marketing and communication oppor-

tunities for every business Making

those opportunities a reality requires

careful planning thoughtful assessment

and directed focus

Web design is very important to

search engines Messy over-

complicated or bad code give the

search engine spiders a hard time

crawling your pages If the spiders

crawlers cant crawl your pages prop-

erly and retrieve all the data they need

the search engines cant rank them

properly

There are more effective methods of

attracting your customers to your

website than search engine listings

PPC is great for targeting potential

leads in every phase of the buying

cycle and it is measurable Studies

show that regular contact with cus-

tomers helps to maintain your rela-

tionship with them and generates

referral business

Many companies consider web ad-

vertising a viable technique to benefit

your online business The ability to

target has been one of the main

things that have attracted people to

the internet for advertising You can

target big to very small websites that

give real vertical information and at

the same time it is also interactive

The scope for business on the Inter-

net is fantastic-there is so much po-

tential there and all you have to do is

have an integrated strategy or plan

to make it happen

Ajay Prasad is founder of Global Marketing Resources LLC that runs a number of ecommerce websites under its um-

brella Ajays functional expertise includes website strategy marketing management business development consumer re-

search market analysis and strategic planning GMR Web Team is an Orange County Website Design company that aims

to develop an overall Internet strategy for your business

Web design is very

important to search

engineshellipIf the

spiderscrawlers cant

crawl your pages

properly and retrieve all

the data they need the

search engines cant

rank them properly

Page 6 Volume I Issue V Medium Business Alliance

Simply put asset based lending is a loan that is secured in exchange for the assets of the company like accounts receiv-

able inventory and other balance sheet asset items as collateral Also known as asset based financing itlsquos a straightfor-

ward concept which emphasized on matching the companylsquos assets to the borrowing needs Most of the traditional

bank loans are based on the balance sheet ratios and the cash flow predictions

The assets of the organization are the major factors on which the loan is dependent in asset based financing This leads

to greater borrowing capacity than the traditional banking approach The major advantage of such loans is the availabil-

ity of cash for the routine requirements of the company The collateral would generally be the accounts receivables

inventories machinery and equipment real estate and other tangible assets

Benefits of Asset Based Lending

Low Rate of Interest Compared to the unsecured loans the rate of interest of such asset based finance is much lower

This is because the lenderlsquos money is safe with the availability of the collateral item on non-repayment of the loan

Profit and Loss and Credit History One major benefit of the asset based financing is that the asset value is of relevance

to the financing company and not your credit history or the cash flow status

Quick Finance The financing organization lends the amount required quickly with least hassles Thus when there is an

urgent need for finance to capitalize on a great business opportunity it can be accessed with the help of the asset

pledged It is thus useful to meet the seasonal need rapid growth acquisitions etc

Commitment The asset-based loans have flexible repayments plans Short-term asset based loans get paid off quickly

from the account receivable and the inventory

Many companies provide customized lending depending upon the needs of the organizations Some companies also

have expertise in specific industries that is beneficial to understand the finance needs of the company

Financial Discipline The borrowing availability is dependent on the advance rates on the accounts receivables This

makes the borrowers collect the receivable amount in a more disciplined manner Moreover as only the completed

products are eligible for financing the company improves on efficiency in the production process

Few Financial Covenants The asset based loans require only a few covenants like debt service coverage and net worth

as they are based on the collaterals

In tough financial conditions the lender shows the willingness to give more time to the borrower as he has the collat-

eral to protect the loaned amount

Industry Expertise The financing companies have expertise in dealing with the retailers manufacturers distributors and

importers within industries dealing the automotive parts apparel consumer products food and beverages steel and

transportation Thus these companies extend help to nearly all businesses

The asset based lending is useful when you have a requirement for working capital and funds for new acquisitions and

major capital expenditures It also fills in for the funds required restructuring the business and to take care of other

finance needs

Financial The Benefits of Asset Based Lending

Accounts Receivable Financing can help your business grow and by solving cash flow problems The Internal Revenue

Service (IRS) has a guide on what defines an Account Receivable Financing Company To receive a quick quote visit the

website at wwwarfactorquotecom

Page 5 Medium Business Alliance Volume I Issue V

normally includes a target market

analysis market research and a mar-

ket forecast

2 Website strategy- This includes

your mission and objective of starting

an internet business web develop-

ment and marketing strategy

3 Specific development plan- Any

web plan is measured by the result it

produces Therefore implementation

of your plan is more important than

brilliant ideas Start taking action on

the tasks that you have created during

the planning stage

4 Identify your organization goals

Every company has a set of tangible

and intangible goals and identifying

yours will help you better focus on it

and implement them in time

5 Online marketing- Getting the most

out of the online marketing channels

requires specialized techniques like

search engine optimization pay per

click marketing social media optimiza-

tion e-mail marketing and many more

to reach out to your customers

6 Expense budget- This includes de-

tails to track expenses month by

month and follow up with your plan vs

actual analysis

7 Returns (ROI) - Business is driven by

ROI and it is only natural that the

online marketing efforts need to lead

into a positive ROI determined by the

key performance indicators

8 Survey- Get feedback from website

visitors regarding what bought them to

you or how their experience has been

on your website

The Internet presents a wide range of

marketing and communication oppor-

tunities for every business Making

those opportunities a reality requires

careful planning thoughtful assessment

and directed focus

Web design is very important to

search engines Messy over-

complicated or bad code give the

search engine spiders a hard time

crawling your pages If the spiders

crawlers cant crawl your pages prop-

erly and retrieve all the data they need

the search engines cant rank them

properly

There are more effective methods of

attracting your customers to your

website than search engine listings

PPC is great for targeting potential

leads in every phase of the buying

cycle and it is measurable Studies

show that regular contact with cus-

tomers helps to maintain your rela-

tionship with them and generates

referral business

Many companies consider web ad-

vertising a viable technique to benefit

your online business The ability to

target has been one of the main

things that have attracted people to

the internet for advertising You can

target big to very small websites that

give real vertical information and at

the same time it is also interactive

The scope for business on the Inter-

net is fantastic-there is so much po-

tential there and all you have to do is

have an integrated strategy or plan

to make it happen

Ajay Prasad is founder of Global Marketing Resources LLC that runs a number of ecommerce websites under its um-

brella Ajays functional expertise includes website strategy marketing management business development consumer re-

search market analysis and strategic planning GMR Web Team is an Orange County Website Design company that aims

to develop an overall Internet strategy for your business

Web design is very

important to search

engineshellipIf the

spiderscrawlers cant

crawl your pages

properly and retrieve all

the data they need the

search engines cant

rank them properly

Page 6 Volume I Issue V Medium Business Alliance

Simply put asset based lending is a loan that is secured in exchange for the assets of the company like accounts receiv-

able inventory and other balance sheet asset items as collateral Also known as asset based financing itlsquos a straightfor-

ward concept which emphasized on matching the companylsquos assets to the borrowing needs Most of the traditional

bank loans are based on the balance sheet ratios and the cash flow predictions

The assets of the organization are the major factors on which the loan is dependent in asset based financing This leads

to greater borrowing capacity than the traditional banking approach The major advantage of such loans is the availabil-

ity of cash for the routine requirements of the company The collateral would generally be the accounts receivables

inventories machinery and equipment real estate and other tangible assets

Benefits of Asset Based Lending

Low Rate of Interest Compared to the unsecured loans the rate of interest of such asset based finance is much lower

This is because the lenderlsquos money is safe with the availability of the collateral item on non-repayment of the loan

Profit and Loss and Credit History One major benefit of the asset based financing is that the asset value is of relevance

to the financing company and not your credit history or the cash flow status

Quick Finance The financing organization lends the amount required quickly with least hassles Thus when there is an

urgent need for finance to capitalize on a great business opportunity it can be accessed with the help of the asset

pledged It is thus useful to meet the seasonal need rapid growth acquisitions etc

Commitment The asset-based loans have flexible repayments plans Short-term asset based loans get paid off quickly

from the account receivable and the inventory

Many companies provide customized lending depending upon the needs of the organizations Some companies also

have expertise in specific industries that is beneficial to understand the finance needs of the company

Financial Discipline The borrowing availability is dependent on the advance rates on the accounts receivables This

makes the borrowers collect the receivable amount in a more disciplined manner Moreover as only the completed

products are eligible for financing the company improves on efficiency in the production process

Few Financial Covenants The asset based loans require only a few covenants like debt service coverage and net worth

as they are based on the collaterals

In tough financial conditions the lender shows the willingness to give more time to the borrower as he has the collat-

eral to protect the loaned amount

Industry Expertise The financing companies have expertise in dealing with the retailers manufacturers distributors and

importers within industries dealing the automotive parts apparel consumer products food and beverages steel and

transportation Thus these companies extend help to nearly all businesses

The asset based lending is useful when you have a requirement for working capital and funds for new acquisitions and

major capital expenditures It also fills in for the funds required restructuring the business and to take care of other

finance needs

Financial The Benefits of Asset Based Lending

Accounts Receivable Financing can help your business grow and by solving cash flow problems The Internal Revenue

Service (IRS) has a guide on what defines an Account Receivable Financing Company To receive a quick quote visit the

website at wwwarfactorquotecom

Page 6 Volume I Issue V Medium Business Alliance

Simply put asset based lending is a loan that is secured in exchange for the assets of the company like accounts receiv-

able inventory and other balance sheet asset items as collateral Also known as asset based financing itlsquos a straightfor-

ward concept which emphasized on matching the companylsquos assets to the borrowing needs Most of the traditional

bank loans are based on the balance sheet ratios and the cash flow predictions

The assets of the organization are the major factors on which the loan is dependent in asset based financing This leads

to greater borrowing capacity than the traditional banking approach The major advantage of such loans is the availabil-

ity of cash for the routine requirements of the company The collateral would generally be the accounts receivables

inventories machinery and equipment real estate and other tangible assets

Benefits of Asset Based Lending

Low Rate of Interest Compared to the unsecured loans the rate of interest of such asset based finance is much lower

This is because the lenderlsquos money is safe with the availability of the collateral item on non-repayment of the loan

Profit and Loss and Credit History One major benefit of the asset based financing is that the asset value is of relevance

to the financing company and not your credit history or the cash flow status

Quick Finance The financing organization lends the amount required quickly with least hassles Thus when there is an

urgent need for finance to capitalize on a great business opportunity it can be accessed with the help of the asset

pledged It is thus useful to meet the seasonal need rapid growth acquisitions etc

Commitment The asset-based loans have flexible repayments plans Short-term asset based loans get paid off quickly

from the account receivable and the inventory

Many companies provide customized lending depending upon the needs of the organizations Some companies also

have expertise in specific industries that is beneficial to understand the finance needs of the company

Financial Discipline The borrowing availability is dependent on the advance rates on the accounts receivables This

makes the borrowers collect the receivable amount in a more disciplined manner Moreover as only the completed

products are eligible for financing the company improves on efficiency in the production process

Few Financial Covenants The asset based loans require only a few covenants like debt service coverage and net worth

as they are based on the collaterals

In tough financial conditions the lender shows the willingness to give more time to the borrower as he has the collat-

eral to protect the loaned amount

Industry Expertise The financing companies have expertise in dealing with the retailers manufacturers distributors and

importers within industries dealing the automotive parts apparel consumer products food and beverages steel and

transportation Thus these companies extend help to nearly all businesses

The asset based lending is useful when you have a requirement for working capital and funds for new acquisitions and

major capital expenditures It also fills in for the funds required restructuring the business and to take care of other

finance needs

Financial The Benefits of Asset Based Lending

Accounts Receivable Financing can help your business grow and by solving cash flow problems The Internal Revenue

Service (IRS) has a guide on what defines an Account Receivable Financing Company To receive a quick quote visit the

website at wwwarfactorquotecom

Human Resources

Workplace Cleanliness Tips on Combating Germs in the Office By Peter Sheldon

Page 7 Medium Business Alliance Volume I Issue V

The winter may be coming to a close but that doesnlsquot

mean companies should stop paying attention to proper

workplace cleanliness With viruses like H1N1 still show-

ing up in public environments ndash plus $150 billion in lost

company productivity each year from illnesses such as

influenza and the common cold ndash there is a need to im-

prove infection prevention practices in the office or

workplace environment

Fortunately commercial cleaning has made great strides

and innovative health-based cleaning systems now address

the need for cleaner healthier facilities

Judging a facilitylsquos level of cleanliness by appearance alone

is not an effective measure of clean A true health-

focused cleaning program offers a comprehensive system

that provides cleaning on the unseen or microbial level

To accomplish this health-based cleaning services utilize

advanced technology such as microfiber cleaning cloths

and flat mops hospital-grade disinfectants no-touchlsquo rest-

room cleaning and multi-filtration vacuums

The first step in any effective facility cleaning program

must be the use of proper disinfectant chemistry to kill

bacteria and viruses that can cause illness But what hap-

pens to those germs once they have been killed

With traditional cleaning methods very few of the dead

germ cells are actually removed Instead the standard

cleaning materials used by most custodial services simply

spread the germs around cross-contaminating other sur-

faces and leaving behind the dead cells that may serve as

food for the next crop of germs

Health-based cleaning technology deploys microfiber

cleaning cloths and mop pads that have tiny fibers that

make the fabric super absorbent in order to trap those

dead germs and remove them from the surface

Health-based cleaning services are also employing color-

coded systems for their cleaning cloths and flat mops to

further avoid cross-contamination For example instead

of using one cloth for both the bathroom and cafeteria

they use a different color cloth in each room ndash thereby

ensuring that soil and matter from one room will be con-

tained and germs from one area will not be spread to

another part of the building

Tips to Employ a True Health-Based Cleaning

Program

Several elements are crucial to ensuring a health-based

cleaning program is successful They include

Implementing a cleaning system that can be measured

to remove soils and germs through scientific

tools rather than judging by appearance alone

Using EPA-registered hospital-grade disinfectant

chemistry

Cleaning with multi-filtration high efficiency vacuum-

ing technology to improve indoor air quality HEPA vac-

uum systems are 9997 percent efficient at filtering dirt

dust and allergen particles 03 microns or larger

Using color-coded microfiber cleaning cloths that

reduce cross-contamination and are 99 percent more

effective at removing illness-causing germs and soil

ldquoThe first step in any effective facility

cleaning program must be the use of

proper disinfectant chemistry to kill

bacteria and viruses that can cause

illnessrdquo

Page 8 Volume I Issue V

Employing touch-free spray and vacuum system tech-

nologies In areas tolerant of wet cleaning processes this

technology provides the most complete disinfection and

soil removal of any cleaning application

Deploying no-dip flat-mopping systems that use only

clean solution for increased soil removal and reduced

cross-contamination

By simply having occupants ndash all workspaces pose a risk of

spreading infection Businesses who wish to maintain

Medium Business Alliance

spotless indoor environments while meeting the larger

goal of employee well-being should review the cleaning

methods used by their current facilities manager or clean-

ing services to be sure they include the benefits of health-

based cleaning innovations

Health-based cleaning programs provide cleaner healthier

environments ndash your employees will experience fewer

sick days you will have lower associated healthcare costs

and your business will benefit from better productivity

and higher employee morale

Peter J Sheldon Sr CBSE brings over 18 years of experience in the Building Services Contracting industry to his posi-

tion as Vice President of Operations of Coverall Health-Based Cleaning SystemSM Sheldon works closely with the

Coverall sales and operations teams to spearhead initiatives that further the Companylsquos strategic objectives and help the

Company develop the most efficient and innovative cleaning processes available Sheldon is among the elite group of build-

ing service professionals to qualify for the Certified Building Service Executive designation

How To Putting a Value on Your Business By Don DuLong

Starting a business was a very exciting time in my life The wonder of what was to come Could I build and grow a viable

business What would it be like to work for myself instead of someone else Well 15 years later with the help of nu-

merous people I have accomplished the goals I set for the company So what now Sure like other business we con-

stantly are developing new services and representing new products but what will I do with this business when I am ready

to retire Can I sell it Better yet what is it worth

Sure every business owner is trying to constantly improve the value of the business but what is the business really worth

Experts will tell you that putting a value on your business is not something you should do yourself You are emotionally

attached to the business and that can prevent you from taking on objective view You can determine a ballpark value by

applying one or more different methods of business valuation I combined several different methods in order to place a

value on my company

When I started to place a value on the business the first thing I looked at was the companylsquos financial statements Just by

subtracting the businesses liabilities from its assets the book value of the business can be determined Most balance sheets

will do this for you The information on the balance sheet needs to current in order to get an accurate book value This

valuation does not take in to consideration the non tangible assets of the business

The rule of thumb method is a good way to see what your business is worth based on the value of similar businesses in

your companylsquos specific industry This method will give you a value that reflects an average value for businesses that have

sold or have been evaluated by professional firms The only drawback I found when trying to value my business using this

method was the lack of information specific to my industry The industry we work in does not have a high sell rate and

has a limited number of businesses compared to other industries I still applied the information gathered in order to get

an idea of what other business have sold for

When doing the research to see what methods businesses were using to determine their valuation I found that quite a

few businesses are applying the earnings capitalization method This method determines a businesslsquos value by comparing

the initial investment to the risk associated to the rate of return on that investment The rate of return on my business

varied from year to year and applying this method allowed me to set a value that would allow a purchaser to have a simi-

lar rate of return on the business Something was still missing though

Page 9 Medium Business Alliance Volume I Issue V

Merchant Gateway LLC is an employee-owned company We are an Independent Sales Organization (ISO) and Merchant

Service Provider (MSP) that is registered with VISA amp MasterCard to provide Merchant Services We have leveraged the

global capabilities of RBS WorldPay which is the third largest payment processor in the World ndash with the local knowledge

of our Agents to serve your business needs

Our business model is simple ndash Help Independent Merchants

1 Save Merchants $$$$

Introduce ―Cost-Plus Interchange Pricing to Small amp Medium Businesses The ―Cost-Plus pricing model was once only reserved to the ―Wal-Marts and larger businesses with

great transactional volume This will help the independent business owner compete with franchises and

larger businesses allowing them to keep more of their profits

2 Partner amp Educate Business Owners about Credit Card Processing Help business owners understand the lasted PCI compliance issues and provide to them easy to under-

stand information concerning their account in addition to getting them the best Interchange category

rate

3 ―Rate Lock for Life Program Although no one can affect the VISA and MasterCard Interchange costs we will lock in our Processing

Fees for the life of your account

4 $500 Best Rate Guarantee Challenge Simply put ndash If we cannot beat your current rate we will pay you $500 We know your time is impor-

tant and you have our commitment that we will save you money

5 Merchant Gateway Agent Program Merchant Gateway is always looking for local talented and motivated individuals to become part of our

growing movement Share in the best agent program in the industry with lifetime residual payments and

a dedicated sales team to insure your success

To take the $500 Best Rate Guarantee Challenge please fax your latest merchant services statement to (727) 231-8384

or call Phil DeConti (727) 644-1338 to discuss or answer any questions you may have Or visit them online at

wwwmerchantgatewaycom or email Phil DeConti at pdecontimerchantgatewaycom

Member Spotlight

Merchant Gateway ndash Americas Payment Choice

The most difficult part of placing a value on my business was determining what the intangible assets were worth How do

I place a value on the brand name and customer base we have developed for over 15 years How do I place a value on

the experience of the employees of the business Yes I said employees Itlsquos extremely difficult to find experienced and

dedicated employees in our industry and I felt like they added value to the business This is where the emotional part of

being a business owner comes in to play I canlsquot tell you what the intangible value of your business is because every busi-

ness is different in its own unique way So good luck in determining the value of your business and I suggest you start

taking a look at this long before you decide to sell

Don DuLong is the owner of MWD Inc which services and repairs all medium and heavy duty trucks trailers and buses When it

comes to anything in truck and heavy equipment service MWD is respected for providing quality work at reasonable prices For infor-

mation on MWD Inc contact Don DuLong at 478-742-1500 or visit wwwmwdincnet

Page 8 Volume I Issue V

Employing touch-free spray and vacuum system tech-

nologies In areas tolerant of wet cleaning processes this

technology provides the most complete disinfection and

soil removal of any cleaning application

Deploying no-dip flat-mopping systems that use only

clean solution for increased soil removal and reduced

cross-contamination

By simply having occupants ndash all workspaces pose a risk of

spreading infection Businesses who wish to maintain

Medium Business Alliance

spotless indoor environments while meeting the larger

goal of employee well-being should review the cleaning

methods used by their current facilities manager or clean-

ing services to be sure they include the benefits of health-

based cleaning innovations

Health-based cleaning programs provide cleaner healthier

environments ndash your employees will experience fewer

sick days you will have lower associated healthcare costs

and your business will benefit from better productivity

and higher employee morale

Peter J Sheldon Sr CBSE brings over 18 years of experience in the Building Services Contracting industry to his posi-

tion as Vice President of Operations of Coverall Health-Based Cleaning SystemSM Sheldon works closely with the

Coverall sales and operations teams to spearhead initiatives that further the Companylsquos strategic objectives and help the

Company develop the most efficient and innovative cleaning processes available Sheldon is among the elite group of build-

ing service professionals to qualify for the Certified Building Service Executive designation

How To Putting a Value on Your Business By Don DuLong

Starting a business was a very exciting time in my life The wonder of what was to come Could I build and grow a viable

business What would it be like to work for myself instead of someone else Well 15 years later with the help of nu-

merous people I have accomplished the goals I set for the company So what now Sure like other business we con-

stantly are developing new services and representing new products but what will I do with this business when I am ready

to retire Can I sell it Better yet what is it worth

Sure every business owner is trying to constantly improve the value of the business but what is the business really worth

Experts will tell you that putting a value on your business is not something you should do yourself You are emotionally

attached to the business and that can prevent you from taking on objective view You can determine a ballpark value by

applying one or more different methods of business valuation I combined several different methods in order to place a

value on my company

When I started to place a value on the business the first thing I looked at was the companylsquos financial statements Just by

subtracting the businesses liabilities from its assets the book value of the business can be determined Most balance sheets

will do this for you The information on the balance sheet needs to current in order to get an accurate book value This

valuation does not take in to consideration the non tangible assets of the business

The rule of thumb method is a good way to see what your business is worth based on the value of similar businesses in

your companylsquos specific industry This method will give you a value that reflects an average value for businesses that have

sold or have been evaluated by professional firms The only drawback I found when trying to value my business using this

method was the lack of information specific to my industry The industry we work in does not have a high sell rate and

has a limited number of businesses compared to other industries I still applied the information gathered in order to get

an idea of what other business have sold for

When doing the research to see what methods businesses were using to determine their valuation I found that quite a

few businesses are applying the earnings capitalization method This method determines a businesslsquos value by comparing

the initial investment to the risk associated to the rate of return on that investment The rate of return on my business

varied from year to year and applying this method allowed me to set a value that would allow a purchaser to have a simi-

lar rate of return on the business Something was still missing though

Page 9 Medium Business Alliance Volume I Issue V

Merchant Gateway LLC is an employee-owned company We are an Independent Sales Organization (ISO) and Merchant

Service Provider (MSP) that is registered with VISA amp MasterCard to provide Merchant Services We have leveraged the

global capabilities of RBS WorldPay which is the third largest payment processor in the World ndash with the local knowledge

of our Agents to serve your business needs

Our business model is simple ndash Help Independent Merchants

1 Save Merchants $$$$

Introduce ―Cost-Plus Interchange Pricing to Small amp Medium Businesses The ―Cost-Plus pricing model was once only reserved to the ―Wal-Marts and larger businesses with

great transactional volume This will help the independent business owner compete with franchises and

larger businesses allowing them to keep more of their profits

2 Partner amp Educate Business Owners about Credit Card Processing Help business owners understand the lasted PCI compliance issues and provide to them easy to under-

stand information concerning their account in addition to getting them the best Interchange category

rate

3 ―Rate Lock for Life Program Although no one can affect the VISA and MasterCard Interchange costs we will lock in our Processing

Fees for the life of your account

4 $500 Best Rate Guarantee Challenge Simply put ndash If we cannot beat your current rate we will pay you $500 We know your time is impor-

tant and you have our commitment that we will save you money

5 Merchant Gateway Agent Program Merchant Gateway is always looking for local talented and motivated individuals to become part of our

growing movement Share in the best agent program in the industry with lifetime residual payments and

a dedicated sales team to insure your success

To take the $500 Best Rate Guarantee Challenge please fax your latest merchant services statement to (727) 231-8384

or call Phil DeConti (727) 644-1338 to discuss or answer any questions you may have Or visit them online at

wwwmerchantgatewaycom or email Phil DeConti at pdecontimerchantgatewaycom

Member Spotlight

Merchant Gateway ndash Americas Payment Choice

The most difficult part of placing a value on my business was determining what the intangible assets were worth How do

I place a value on the brand name and customer base we have developed for over 15 years How do I place a value on

the experience of the employees of the business Yes I said employees Itlsquos extremely difficult to find experienced and

dedicated employees in our industry and I felt like they added value to the business This is where the emotional part of

being a business owner comes in to play I canlsquot tell you what the intangible value of your business is because every busi-

ness is different in its own unique way So good luck in determining the value of your business and I suggest you start

taking a look at this long before you decide to sell

Don DuLong is the owner of MWD Inc which services and repairs all medium and heavy duty trucks trailers and buses When it

comes to anything in truck and heavy equipment service MWD is respected for providing quality work at reasonable prices For infor-

mation on MWD Inc contact Don DuLong at 478-742-1500 or visit wwwmwdincnet

Page 9 Medium Business Alliance Volume I Issue V

Merchant Gateway LLC is an employee-owned company We are an Independent Sales Organization (ISO) and Merchant

Service Provider (MSP) that is registered with VISA amp MasterCard to provide Merchant Services We have leveraged the

global capabilities of RBS WorldPay which is the third largest payment processor in the World ndash with the local knowledge

of our Agents to serve your business needs

Our business model is simple ndash Help Independent Merchants

1 Save Merchants $$$$

Introduce ―Cost-Plus Interchange Pricing to Small amp Medium Businesses The ―Cost-Plus pricing model was once only reserved to the ―Wal-Marts and larger businesses with

great transactional volume This will help the independent business owner compete with franchises and

larger businesses allowing them to keep more of their profits

2 Partner amp Educate Business Owners about Credit Card Processing Help business owners understand the lasted PCI compliance issues and provide to them easy to under-

stand information concerning their account in addition to getting them the best Interchange category

rate

3 ―Rate Lock for Life Program Although no one can affect the VISA and MasterCard Interchange costs we will lock in our Processing

Fees for the life of your account

4 $500 Best Rate Guarantee Challenge Simply put ndash If we cannot beat your current rate we will pay you $500 We know your time is impor-

tant and you have our commitment that we will save you money

5 Merchant Gateway Agent Program Merchant Gateway is always looking for local talented and motivated individuals to become part of our

growing movement Share in the best agent program in the industry with lifetime residual payments and

a dedicated sales team to insure your success

To take the $500 Best Rate Guarantee Challenge please fax your latest merchant services statement to (727) 231-8384

or call Phil DeConti (727) 644-1338 to discuss or answer any questions you may have Or visit them online at

wwwmerchantgatewaycom or email Phil DeConti at pdecontimerchantgatewaycom

Member Spotlight

Merchant Gateway ndash Americas Payment Choice

The most difficult part of placing a value on my business was determining what the intangible assets were worth How do

I place a value on the brand name and customer base we have developed for over 15 years How do I place a value on

the experience of the employees of the business Yes I said employees Itlsquos extremely difficult to find experienced and

dedicated employees in our industry and I felt like they added value to the business This is where the emotional part of

being a business owner comes in to play I canlsquot tell you what the intangible value of your business is because every busi-

ness is different in its own unique way So good luck in determining the value of your business and I suggest you start

taking a look at this long before you decide to sell

Don DuLong is the owner of MWD Inc which services and repairs all medium and heavy duty trucks trailers and buses When it

comes to anything in truck and heavy equipment service MWD is respected for providing quality work at reasonable prices For infor-

mation on MWD Inc contact Don DuLong at 478-742-1500 or visit wwwmwdincnet

Comic Corner

New Member Listings

wwwmediumbusinessalliancecom

Contact us at Membershipmediumbusinessalliancecom

Are You a Professional

The following short quiz consists of 4 questions and will tell you whether you are qualified to be a professional

The questions are NOT that difficult

1 How do you put a giraffe into a refrigerator

The correct answer is Open the refrigerator put in the giraffe and close the door

This question tests whether you tend to do simple things in an overly complicated way

2 How do you put an elephant into a refrigerator

Open the refrigerator put in the elephant and close the refrigerator Wrong Answer

Correct Answer Open the refrigerator take out the giraffe put in the elephant and close the door

This tests your ability to think through the repercussions of your previous actions

3 The Lion King is hosting an animal conference All the animals attend except one Which animal does not attend

Correct Answer The Elephant The elephant is in the refrigerator

This tests your memory

OK even if you did not answer the first three questions correctly you still have one more chance to show your true

abilities

4 There is a river you must cross But it is inhabited by crocodiles How do you manage it

Correct Answer You swim across All the crocodiles are attending the Animal Meeting

This tests whether you learn quickly from your mistakes

According to Anderson Consulting Worldwide around 90 of the professionals they tested got all questions wrong

But many preschoolers got several correct answers Anderson Consulting says this conclusively disproves the theory

that most professionals have the brains of a four year old

THIS IS NOT INVESTMENT TAX OR LEGAL ADVICE Contact your financial advisor accountant or attorney

before making important decisions in any of these areas Medium Business Alliance LLC Copyright copy 2009 Medium

Business Alliance LLC All rights reserved This material may not be reproduced distributed transmitted cached or oth-

erwise used except with the prior written permission of Medium Business Alliance LLC

Medium Business Alliance Volume I Issue V Page 10