Business to business

Business to business

Have you ever wondered how big companies acquire computers and computer accessories for their employees? These companies never go shopping in most famous computer stores we know for the large order they have to make. Business to business marketing or what is famously known as B2B marketing is how these 500 fortune companies are able to meet their supply needs. This is where a company buys a product or a service from another company. It is structured in the same marketing principles as any other marketing concept but it has a slight different edge from other form of marketing. While in other marketing models the buyer considers not just the price but brand, reviews, status and so on, in B2B marketing, the buyer just consider the price and the potential profit they will make from the deal. The social media has become a powerful platform for business to business marketing. The interaction between companies that are willing to buy and other potential clients is robust on this platform. B2B marketers target large consumers. This include large companies with known tract records of posting huge profits, government agencies like hospitals or learning institutions and companies that resell products to consumers.

The success of B2B marketer will depend on:

• Branding and positioning of the product and services.

• Understanding the market.

• Proposing relevant solutions. Business to business marketing is a concept that companies are adopting in addition to their traditional marketing because of its huge returns.


Ways to avoid bankruptcy

Ways to avoid bankruptcy

When I was in college my close friend Robert used to jokingly tell that he was bankrupt on the 15th of every month. It was a joke but in real sense bankruptcy really hurts. It can really take you to a debt hole from which it is really difficult to come out. Hence it is better to avoid becoming bankruptcy. Some ways which can help are:

Sell some valuables – It is hard to part with things you are used to have in home. However some things are there which can fetch you cash and help you out of your current debt situation. the cash you will muster thus will help you climb out of the debt dump.

Get credit counseling – In the state of burdening debt you mind cannot think clearly. Seek out counseling from experts. They will suggest ways out of the current situation where you can avoid bankruptcy.

Help from Family – You will always get help from family. Family will always stand by you in trouble and help you. The first place to go when you are facing bankruptcy is family.

Talk to Creditors – Talk to the creditors and get your debt settled by paying a lump sum. The best way to avoid bankruptcy and also to get some relief on interest charged. The creditors will rather have some money from you than not having anything when you are declared bankrupt.

Break Even Point

Break Even Point

When you started doing business one of the things you would have considered is Break Even Point. You would want to know when you could take back the invested money in order to make more money. Break Even Point in Cost Accounting meaning a stage where you will reach a point of Zero. It means the point where you Total cost curve and Total Return curve meets. Total Cost is Total Fixed Cost and Total Variable Cost taken together.

The formula is  B.E.P = Fixed Cost/Contribution per unit. Contribution is (Revenue – Costs) per unit.

When you have requested a bank for a loan they would have asked for a forecast. In that forecast they would want to know when your business would break-even. A very common definition of Break-Even is: “The level of sales necessary to cover all variable and fixed expenses and neither make a profit or a loss”.But I believe the definition of Break Even Point (B.E.P should be “The level of sales necessary to cover all variable and fixed expenses plus an amount of Profit.  What is the use of reaching Break Even Point if you are not making profit? You are not running a charity. So please make sure to add a certain amount that is required. This amount will justify the time and effort that you have put in.

Binary Trading Signals – What you stand to gain?

A lot is being said about binary option signals. Ever wondered what are they and if they can really help you to earn some money? Read on –

Every trader wishes his transaction to reap maximum returns. However, turning this wish into reality requires thorough experience which many lack, thus, fostering the need to follow the footsteps of various successful traders. This is where Binary trading signals step in. Binary options signals are simply recommendation or alerts which track the probable price movements of the underlying asset so that the trader can use it make an informed decision and minimize his loss.


The various features of binary trading signals are:

  • It makes use of the algorithms designed to track assets and produce signals for them.
  • Binary option brokers provide the binary option trading signal to the customers usually for a monthly subscription fees.
  • The binary option signal provider uses either fundamental or technical analysis to study the price movement of the underlying asset, analyse the behavior of the asset and generate signal in accordance with the type of trade.
  • As the binary options market is yet to be as fast paced as the forex markets, it provides ample time to the trader to implement the signal, provided there are no technical glitches

While binary trading signal offers immense benefits, it demands a blind belief on the credibility of the broker. Thus, the trader should also have a basic knowledge about the nature of the underlying asset before implementing the signal. They must cultivate the habit of tracking relevant news and ascertain which piece of information would have an impact and so on.

How will you come to know if a company is making profit or not?

First things first – How will you come to know if a company is making profit or not? Or before that – Why should we know if your business is making profit or not? Well friends one of the prime objectives of starting any business is to make profit. If you are not sure or if you don’t know whether you are making profit or not, I think you have defeated the purpose of starting that business. If your intention is not to make profit are you running a charity?


Anyway coming back to the topic, How will we come to know if the company is making profit or not? If company says we have got high-profile clients, does it necessarily mean that the company is making profit? If a company says we have got an outstanding brand, does it necessarily mean that the company is making profit? What if you find out that the company has got motivated employees? The walk in together, they walk out together. They take lunch breaks together. They eat together. They even kill themselves together. Well what I mean is they go out for smoke breaks together. Does it necessarily mean that the company is making profit? What if the company directors are millionaires? Does it tell, whether company is making profit or not? How about the company that operates in prime location? Does it necessarily mean that the company is making profit?

Friends, none of these can be used as a yard stick to know if a company is making profit or not. Only way or the most effective way to know that a company is making profit or not is by simply preparing basic financial statements and reading and understanding it.

Basic Financial Statements

There are three basic financial statements that will tell us whether a company is making profit or not. They are:

  1. Balance Sheet
  2. Profit & Loss Statement
  3. Cash-Flow Statement
  • These three statements will tell us whether a company is making money or not.
  • It will also tell us where and how a business is making money.
  • It is a legal requirement to prepare Profit & Loss Statement and Balance Sheet at least once every year.

Understanding Amortization Schedule


An Excel Amortization Schedule

The statement of repayment is the most important part, when you are going to take a loan. It tells you the amounts you are required to pay the bank on monthly basis. The repayment schedule is popularly known as Amortization schedule. It is numbers and calculations which confuses most of the people. But once you understand the Amortization schedule you can take charge of paying and nobody can fool around with you. Not even the bank people. MS-Excel can be used to make a schedule.

Today we are just going to start with understanding a few terms that are used in the schedule. They are technical but very easy to understand They are:

  • Principal: The total amount that you have borrowed from the bank. For example if you have applied for $ 30000 loan and the granted loan amount is $ 25000 then your principal is the $25000 you receive from the bank. It is not the application amount of $30000 but the loan amount actually received $25000.
  • Interest rate: A percentage of the Principal will be charged by the bank. This is the fees for using the bank’s money. It will be the part of your installment every month.
  • Term – The period for which the loan is granted is called the term. For example if you are getting you $25000 loan for 48 months then 48 months is the term of the loan.
  • Amortization –The table showing the monthly installments is called the Amortization schedule. It will have all the terms discussed above.

After understanding the terms you will be better equipped to handle the repayment of the loan. For more information you can visit ferratum UK.They have an amazing collection of blogs which will make you understand about various kinds of loans. Also there are amazing online calculators which you can use.

Understanding Mortgage

Types of Mortgage
Types of Mortgage

Mortgage a loan to buy homes does have many options. You should know the basics before deciding what kind of loan you want. Yes mortgage is also of different type. Take the one which suits you budget and situation.

  • Bridge Loan – It is a short-term loan, in which one property is used a s security to buy or renovate another property. It is a bridge to buy a second house. Hence the nomenclature.
  • Fixed rate loan – This is the most popular. The bank provides fixed rate of interest of up to 30 years on the loan. Suitable for young people who can pay a fixed amount over a ling period of time. It is a long-term loan.
  • Interest only – This is the type of loan product in which the borrower has to pay only interest for an initial number of years. Good for people who are young and will have more income in the future.
  • Variable rate loans – In this kind of loan the interest varies year by year. It is good to take when the economy is good. Generally you end up paying less than fixed rate loans.
  • Loan against property – Property generally appreciates at a great rate. If the value is more the valued amount at the time of taking the loan to buy the property, the bank can give you additional loan against the appreciated value.
  • Reverse mortgage – A product specially made for elderly. The original loan is generally almost fully paid up. The difference is paid by the bank to the owner against property.