Business Recipes for Success

LEASE OR PURCHASE

The options lease or purchase do not only come in the car acquisition for personal use.
In putting up a business, lease or purchase may be two alternatives by which equipment could be acquired depending on the avaialability for lease and the specification of
the unit required.

Equipment leases usually do not require down payments except for some refundable security deposit. Even if the equipment is purchased thru a loan, a down payment of
cash may be required by the seller.

The cost of lease is the lease paid on a regular basis while the cost of owning the equipment is the depreciation for the wear and tear and or spreading acquisition cost over a period where the equipment may be useful.

Example, a lease rebtal is 10,000 a month. This is the cost charged as expense. If the same equipment was purchased for $ 100,000 and estimated useful is 20 years, the depreciation cost of 5,000 may be charged monthly.

posted by cathy at 7:52 AM 0 comments

Promotion Objectives

My favorite Apprentice contestant was fired. She was the project manager
for the beauty saloon promotion.

Her idea was to reach customers on a personal basis rather than the fliers
distribution in the parking areas.

At the end of the contest, the other team emerged with more than $ 300 dollar
as income for the day.

Both ideas address the awareness stage of the target customers.The question is,
which is more effective in terms of numbers of these customers gaining the knowledge
about the beauty saloon. Awareness alone does not make sales.

Yes, the beauty saloon exists. So what?

The promotion should be able to inform the target customers what it can
offer that may be different from other existing saloons in the area.
Since it has still to prove its difference, the only thing it can
offer for attraction is special prices or discounted prices. Low pricing
may connote low quality service but special prices allow the customers
to take advantage of the offer.

The liking, the preference and the decision for repeat visits will be
determined by the trial. Practically,the service in the opening is a
promotion itself for building loyalty among the customers.

business,financial statements ,balance sheet ,statement

posted by cathy at 11:35 PM 0 comments