IMPACT 2013 VENTURE SUMMIT | Basecamp Business

IMPACT 2013 VENTURE SUMMIT | Basecamp Business

*REGISTRATION IS NOW OPEN!

Hosted by Fox Rothschild LLP

October 22 & 23

The Ritz-Carlton, Philadelphia and the Crystal Tea Room

PACT’s annual venture conference, IMPACT 2013 Venture Summit Mid-Atlantic, is the most established venture conference in the northeast. For over 20 years, IMPACT has been showcasing the best and most promising investment opportunities in the Technology, Healthcare, and Early Stage sectors. IMPACT’s Featured Companies have raised more than a $1 billion in venture financing and are some of the region’s most recognizable names such as iPipeline, Protez Pharmaceuticals, and The Neat Company.

The Gala is on October 23rd at the Crystal Tea Room.

Build your credit wisely

Few Americans can afford to pay cash for everything they want or need — a car to get to work, a house to live in, or a college education to increase earning potential. For most people in our modern society, some form of credit has become a necessity. And the way in which a person's credit history is established often affects the interest rates that lenders are willing to offer and the likelihood that loan applications will be approved. So it's important to build credit wisely.
Following are three tips to help establish your credit worthiness in the eyes of potential lenders.

• Cash is still king. Just because a financial institution offers to extend credit, don't forget that it's often wiser to defer purchases until later. Pushy sales people may claim that you can "afford" the minimum monthly payments on a luxury automobile that costs more than a lakeside bungalow. But when your bills stretch the limits of every paycheck, you may be headed for financial disaster. Ironically, avoiding certain debts is often a prudent way to establish good credit.

• Take it slowly. Apply for one credit card, use it sparingly, and pay off the balance every month. That's the golden rule for bolstering your credit score. Opening multiple accounts over a short time may signal to lenders that you're overextended. When you take out a loan for a car, make sure you can meet the monthly payments even if your other expenses spike in a given month. In other words, establish some wiggle room in your budget. Don't assume that expenses will always remain at current levels. Emergencies happen. Plan for them so you don't end up missing a minimum payment on a loan or credit card bill.

• Beware of increased credit limits. As your credit score climbs, banks and other financial institutions will likely allow you to borrow more. Use caution. Remember that lenders have a vested interest in lending money to folks who pay on time. When you take out loans, they make money. Maybe you can borrow; that doesn't necessarily mean that you should borrow. Again, the choice to acquire debt in the form of loans or credit card purchases should be driven by a plan — not an impulse.

For more ideas about building strong credit, give us a call.

aconner@atconnercpa.com

Basic market research can be a valuable business tool

Whether you're developing a business from scratch or expanding your existing product line, it's vital to understand your market — your target customers, your competition, and the environment in which your company operates. A little basic market research can help you avoid costly mistakes, such as loading your warehouse with unmarketable products or spending your advertising budget on wrongly directed campaigns. Conversely, digging into the details of your market may uncover exciting new opportunities.
Say, for example, your firm manufactures solid oak furniture for an upscale clientele. You've been reading trade journals lately, and the next surefire product in your industry seems to be hand-crafted wooden toys. Should you start tooling up for this new product line — hiring skilled craftsmen, buying new machinery, and contacting new suppliers? Maybe. But conducting low-cost market research might save you thousands of dollars and loads of stress. You might find, for example, that your current customers really aren't interested in wooden toys. They want the latest electronic gadgets for their kids and grandkids. Or you might learn that customers in your current market are already buying wooden toys from a competitor at a lower price than you can offer. On the other hand, your market research might uncover a hidden demand for such items, and lead you to introduce the new product line in a test market.
If you're considering market research on a budget, here are two ideas that won't break the bank.

• Use publicly available information. This is known as secondary market research. It's a low-cost way of pulling together data that's readily available from public sources. Trade journals, government publications, surveys conducted by other companies — these can provide valuable insight into your market and target demographic. Many of these sources are available online. The downside of secondary research is that it may be unspecific, outdated, or biased. So proceed with caution.

• Conduct your own research. This might include interviews, online surveys, or focus groups. Start with current customers and if they show significant interest in your idea, expand the sample to other potential customers. Primary research is often more valuable than research from public sources because it tends to be more specific and current. But be sure to talk to real customers (not just your friends and colleagues), and try to avoid leading questions that will tend to bias the results.

                                             contact: aconner@atconnercpa.com 

Pay attention to mortgage loan processing fees

If you're planning to apply for a home loan, be sure to scrutinize the processing charges. By law, these costs must be disclosed to consumers. You'll first see them in a Good Faith Estimate (GFE), a statement of estimated costs that's filled out when you first apply for a home loan. At the end of the process, when you're sitting in the escrow office for the actual closing, the form will appear again. It will then include actual costs for processing and closing the transaction.
The standard form that's used at closing is called the "HUD-1" (also known as the settlement or closing statement). A few years ago the GFE was incorporated into the HUD-1, so now it's easier to compare the estimated costs at the beginning of the process to the lender's actual charges at the back end.
Setting up a home loan typically runs thousands of dollars, and mortgage payments often represent a huge slice of the family budget. So it pays to shop around and take a hard look at the processing fees. Here are some of the charges you may encounter on the HUD-1 settlement statement:

• Loan origination fee. Generally expressed as a percentage of the loan amount, this fee covers the lender's cost to evaluate and prepare your loan. Percentages vary among financial institutions, so this is a good candidate for comparison shopping.

• Title search and insurance. This is a legitimate charge for searching property records to establish legal ownership and identify outstanding liens. Charges for this service also vary, so be sure to compare lenders.

• Application fee. Even if your loan is denied, you'll be charged this fee. It's intended to weed out folks who are just "kicking the tires." Watch out for the same fee being charged more than once. It may be called an "underwriting fee" on one part of the statement and a "processing fee" further down the page.

• Document preparation fee. This fee is charged for drawing up legal documents. Again, make sure you aren't charged twice for this service: once by the lender and again by the escrow agent.

• Appraisal fee. If your property was recently appraised, a lender may be persuaded to waive this charge.

• Inspection fee. This charge covers the lender's cost to have the property inspected. Your job? Make sure the home was actually inspected. If it wasn't, why should you pay for an inspection?

© MC 2013

contact: aconner@atconnercpa.com

Print Tip

Reducing everyday expenses is the other half of the money equation

As the old adage goes, "The more you make, the more you spend." Unfortunately, that saying seems to have become accepted wisdom for many American households. In fact, getting that long-awaited raise or moving across the country for a better-paying job may not solve your money worries. That's because household income makes up only one side of the budget ledger.
The other side consists of expenses, all those routine costs that eat away at your bank account. Over the long run, prudently reducing ongoing costs — when coupled with disciplined saving and investing — often leads to greater wealth accumulation than climbing the corporate ladder or snagging a larger paycheck. Here are a few suggestions for cutting back on routine household expenses.

• Learn to live without. How many cable television channels do you really need? If you're paying for premium service, but only watch a handful of shows, perhaps it's time to revise your service plan. Trips to the gourmet coffee shop may become an expensive habit as well. Consider brewing a pot at home once in a while. Buying books at the local bookseller may be convenient, but the library may offer your favorite author's books at no cost.

• Avoid late fees and interest. Whether it's a bill from the doctor or an automobile repair shop, get in the habit of paying on time. If you don't routinely pay off credit card balances every month, it may be time to cut up those cards and learn to pay with cash. True, you may not get the latest and greatest electronic gadget or kitchen appliance, but learning to control impulse buying is key to developing financial discipline and long-term wealth.

• Control hunger. Carry snacks and a bottle of water everywhere you go. When hunger strikes, down some trail mix and take a swig from the bottle. You'll be less tempted to turn aside to the drive-through lane at your local fast food restaurant. You may even lose some weight in the bargain. It's also a good idea to eat a meal before you shop for groceries.

• Shop around. Whether you're spending money on insurance premiums, auto maintenance, or building materials, it's wise to check several sources.

Striving to increase your income is a worthy goal. Just remember to take a hard look at the other side of the ledger.

aconner@atconnercpa.com

Participate in a day of "Fun for a Purpose" and a chance to win $50,000!

Please join us for a day of “Fun with a Purpose” at our 2nd Annual Golf Classic on Monday, September 9.  This Golf Classic will be held at The Golf Course at Glen Mills, located at 221 Glen Mills Road in Glen Mills, PA. and includes contests and prizes as follows:

 

     $50,000 SHOOTOUT                           

Participants are invited to compete in the 

Hole-In-One Contest to win $50,000

     LONGEST DRIVE

The winner will receive 2 tickets in the continental United States 

to one of the following:  NFL, NBA, NASCAR, MLB, NHL or a PGA event.

 

   CLOSEST TO THE PIN

The winner will receive 2 tickets in the continental United States 

to one of the following:  NFL, NBA, NASCAR, MLB, NHL or a PGA event.

   

                            PUTTING CHALLENGE

The winner will receive $25 gift certificate

 

There are 7 levels of sponsorship available and we are offering  non-golfers the  chance to participate in the 19^th Hole Barbeque & Awards  Ceremony,  Pinochle, Pokeno games and other fun activities.

You can register on line at www.rwsorrellgolfclassic.com

Looking forward to seeing you there!

R. W. Sorrell Scholarship Fund Golf Classic

R. W. Sorrell Scholarship Fund Golf Classic