How a Newbie Should Venture into Penny Stock Trading

The stock market is one such place which always shows stars to everyone and everyone wishes to have a teeny weenie piece of the star. Even if it means, placing their hard earned money at risk. So much is the addiction of stocks market that people invest time and again in the stocks market even after incurring losses. The hope is that one will earn back the losses that one has experienced.

To counter these, there are different kinds of investment options that one can venture into. One such investment is in small cap companies which offer penny stocks trading. However, it is not necessary that these small cap companies only offer penny stocks trading. But unlike any other trading it comes with its own set of advantages and disadvantages, its always best to have good knowledge of any trading before you end up burning your fingers in the stock exchange.

What is penny stock trading?

Penny stocks trading is the trading in those shares which have a value less than 1 dollar. At times the value of share can be higher but it would be less than $5. The shares which come in this denomination come under the purview of penny stock trading.

This trading has gained wide ranged acceptance off late due to fact that trading in these stocks can also be done online. Owing to the small amount of investment per share in these stocks, people are of the view that margin of loses is less. However, this is a misnomer. The shares which come under penny stocks have a very small trading volume resulting that the liquidity or cash gets used up pretty fast and thus you cannot count on your investment’s existence.

Investing in penny stock trading is like any other stock exchange investment with the same set of risks. But the only way one can learn the nittie gritties is by plunging into the stock exchange yourself and experiencing everything first hand. Also, today with the internet right next to us, we have access to first hand information and experiences through the exhaustive list of blogs and articles available online. Be it a small investment or huge one, especially for a newbie in the stock market, its always advisable one should not take on everything yourself. On the contrary, one should hire an experienced broker who can carry out everything in the very beginning for you. In the meantime one can take help from the articles online and by attending seminars as well as programs on the same. One must remember that anybody can do penny stock trading, what matters is how smartly you can do it and make money.

6 Tips to Increase Cash Flow Now

Cash flow is an on-going challenge for independent retailers, as it is for many small businesses. Sales growth remains modest at best, and credit remains largely unavailable to many independent retailers. That puts many squarely behind the eight ball.

Here are 6 tips that can help you drive more dollars to the bottom line:

1. Focus your marketing on your proven customers. These are the customers who have demonstrated already that they value what you do and the merchandise you sell. (What else can you offer them?) These are customers who have shared their email addresses with you. This is your List, and it’s one of the most valuable assets you have. Marketing to these customers is much less expensive (and more productive) than marketing more broadly using expensive traditional media, like newspapers and magazines.

2. Turn your inventory. Having more doesn’t mean you’ll sell more, especially when the extra inventory is in unnecessary depth of stock or in items at the fringes of assortments. Lean inventory, closely aligned to support prudent sales plans, promotes a greater sense of urgency with customers to buy now, when they first see it, rather than wait for when it might go on sale. Replenish more frequently, in smaller quantities, continually bringing in new, fresh, exciting merchandise.

3. Don’t compete with yourself. Most independent retailers should adopt a Better-Best or a Best-Only pricing structure. Offering too many options where customers can trade down to a less expensive item leaves money on the table and slows the turn on the higher priced offerings, thus lessening their perceived value. If consignment merchandise is part of your mix, make sure they complement rather than compete against your assortments.

4. Get paid for what you sell. Sales and promotions melt away cash flow, not to mention the fact that they lessen the perceived value of your offering and encourage customers to wait for the next sale. Getting paid also requires, however, that you fully mark up your merchandise in the first place. Markups tend to naturally erode as wholesale costs increase and retail prices don’t fully keep up, unless you actively manage your markups to keep them where you need them.

5. Make payroll a manageable expense. For most independent retailers, payroll is the largest cash outflow after merchandise payables. A payroll that is primarily made up of salaried and full time hourly employees may provide a level of stability but can be pretty inflexible and can create significant cash flow challenges, particularly during slower periods. A more balanced payroll, between salaried and full-time hourly employees and part-time employees, provides the flexibility to more closely align payroll dollars with when they are truly needed.

6. Stop doing things the way you’ve always done them. Familiarity is comfortable, but it leads inevitably to diminishing returns. Customers thrive on newness; on new merchandise, presentations and experiences. Repetition breeds staleness, and that will drive customers elsewhere. The most successful independent retailers are always re-inventing themselves, testing new items, programs, presentations and concepts.

After all that we’ve been through, how much cash flow is enough? It’s not enough just to be cash flow positive. The challenge is to generate exceptional cash flow from the sales revenue you are generating, even as you work to grow revenues even further.

Copyright ?? 2012 Ted Hurlbut

Federal And State And Local Government Grants For Business

Starting a business was used to be a challenging job but today it is quite easy as one can get government grants for business and start one’s own venture without any difficulty. But the reality is that a majority of entrepreneurs borrow business start-up loans for starting new businesses. Though business loans are available at affordable interest rates but it doesn’t bring any relief to the borrower as he has to repay the loan amount. On the other hand, grant is free money that needs not to be repaid. Business grant is free money for entrepreneurs and they should know how to get this money.

The US federal government is determined to support the entrepreneurs who want to excel in business and generate employment for others. A great way to create employment opportunities for learned Americans is encouraging them to start their own ventures. There is no need to approach a bank for business start-up loan as free money is available in the form of government grants for business and the good thing is that the grants are available from US federal government and state and local governments. The portal, can help entrepreneurs locate business grants and also it would provide them grant applications.

There is no limit to the government grants for business one can get but should know how to write grant applications and apply for free money. Just having a business idea is not enough for getting the grants as you need to elaborate the idea and mentions its advantages for the society and also explain how you are going to generate employment for others. If you can discuss your business idea with government departments then you can get free money for starting your business. If you fail to convince the authorities then you should try again as there is no limit to how many times one can try to get grants.

A good number of entrepreneurs are taking advantage of the government grants for business and the credit for this development goes to the awareness spread by websites working to educate people about the free money available from government agencies. Entrepreneurs are taking interest in getting grants but they feel discouraged when their grant applications are rejected. It is possible that the first few applications of an entrepreneur get rejected due to technical reasons but this should encourage the entrepreneurs to apply for more grants.

What is IRS Form 1099-A?

IRS Form 1099-A is used to report Acquistion or Abandonment of Secured Property.

Form 1099-A has 3-pages of forms that are held together by a perforated edge. The first page is Copy A and that is sent to the IRS. Copy B is sent to the borrower and Copy C is retained by the lender. You can detach Copy A from the rest of the forms and print just the data on top of Copy A and print. If you are filing electronically, you are exempt from using the red-ink forms. Copy B and Copy C can be printed on plain paper with black ink. Both Copy B and C do not need to be in the same layout as the IRS form. The boxes can be moved around or arranged differently on the form; what is important is that all of the information is shown on the form and transmitted to the borrower.

The top part of the form shows the lender name, address, phone and TIN followed by the borrower name, address and TIN. The account number is also displayed.

Then there are 6 boxes of information. Box 3 is shaded and nothing is expected for that box. The other boxes are discussed below:

Box 1. Shows the date the lender’s acquired or had knowledge of abandonment.

Box 2. Shows the balance of principal outstanding.

Box 4. Shows the fair market value of the property.

Box 5 is checked if the borrower was personally liable for repayment of the debt.

Box 6. Shows the description of property.

In 2008, there were many fraudelent filings of the 1099 software-A and 1099-OID. We met with the IRS several times and the IRS we met with said that individuals should never file IRS Form 1099-A and instead only banks or financial institutions. We agreed that we would sell the 1099-A software to Banks or Financial Institutions that provide:

The name of the bank and/or financial institution.A valid FDIC number and/or ABA routing number of that bank and/or financial institution.

Furthermore, after ordering, we will only provide a passcode to register the software only to an employee from that bank that purchased the software. We will e-mail an employee of that bank or financial or call them and provide a passcode. These two conditions prevent us from selling the software to individuals, which is what the IRS wants.

Our 1099 software from makes it easy to import, print and/or efile 1099 information returns quickly and easily.