Lutuye Salon

Lutuye Salon provides Franchise in Indonesia in Salon Industry. They already have many outlets in some cities in Indonesia. They offer some franchise package for their franchisee.

 

Why Choose Lutuye Salon
– Increased demand in haircare products
– The market grow very fast
– Hairstyle and model become popular

Franchise Investment
– Initial Investment : Rp. 1 Billion
– Franchise Fee : n/a
– Royalty Fee : 7% from gross profit / month
– Marketing Fee : 3% from gross profit / month

If you’re interested to open business in Salon Industry, you can contact them for more detailed information about the franchise opportunity, and become their partner.

The increase in TDL “Rocking” Business Carrefour

JAKARTA – PT Carrefour Indonesia claim to object to the government’s plan to raise electricity tariff (TDL) by 15 percent next year. This is because it influences the survival of the business.

“We as a retail associations oppose this plan. Raise TDL mean lower purchasing power due to power up, might be all the stuff up and hyperinflation. This is why we are asking the government to review the. Electricity itself is a major component in the retail sector,” said Head of Public Affairs Carrefour Satria Hamid.

According to Knight, with an increase of approximately 15 electric power next year, their operating costs will rise about 10 percent. This is because the burden of the cost of electricity occupies approximately 30 percent of operating costs. Even so, he would not raise the price of the product.

“The price of the product from the supplier, not us,” he added simply.

With the increase in operating expenses of approximately 10 percent, the Satria predict, particularly in the Carrefour retail business will reduce turnover.

“It may be eroded by approximately five percent,” he concluded.

The 10% Solution – Growing Profitable Credit Union Investment and Insurance Sales Programs

I have written frequently about the correlation between member participation in the credit union investment and insurance sales program and increased revenue. While that may seem intuitive the question remains, “why don’t more credit unions make the effort to increase member participation in this time of increased need for revenue?”

According to the recent Ken Kehrer and Callahan Credit Union Investment Program Benchmark Reports, the average member penetration is around 5% compared to 10% for banks. According to Ken Kehrer, one of the reasons for the discrepancy between banks and credit unions could be that banks have offered investment services for about four years longer than credit unions. So they have had a head start on developing household participation in their programs. Another useful benchmark for determining how much attention management should pay to their investment programs is profitability. Many CEOs state that it doesn’t make sense to throw more resources at the Program if it isn’t profitable. My response is, “well, then let’s make it more profitable.” Before we can do that we have to gauge the profitability of the program. Let’s look at two ways to gauge profitability.

Revenue Margin

This is one of the more universal ways to gauge profitability in the brokerage business. It takes into account gross revenue minus direct and allocated expenses before corporate overhead allocation and taxes as a percent of gross revenue. This is sometimes called contribution to overhead. Since allocations for the investment program vary so much throughout the industry this measurement has become somewhat standard versus comparing income. In the recent Kehrer report the average credit union Program contributed 19% of its gross revenue to the overhead of the credit union.

 

Brokerage is a volume business which is another reason credit unions need to increase participation to enjoy higher revenue margins. The more the credit union can spread fixed costs over a larger sales force and revenue base the more contribution it can make to the bottom line.

Profit Penetration

This is perhaps a better way to measure the profitability of the Program. According to the Kehrer report, the average credit union Program contributed $444 of pre-tax profit per million of share deposits.

What are the key drivers that will help grow the profitability of Investment ans Insurance Sales Programs? As I have discussed in my previous articles and White Papers there are two factors, credibility and awareness. Ken Kehrer has broken those factors down into four drivers that credit unions need to constantly address to achieve and surpass the 10% member participation threshold.

Key Drivers

Financial Advisor Coverage – this benchmark has been debated for many years. There is no one standard for every Program since geographic and socioeconomic factors of the credit union must be taken into account when determining how many advisors a Program needs to provide optimum service. The numbers range from $150 million in deposits to $350 million. The average credit union in the Kehrer study had one advisor for every $313 million in member deposits. Again, I would not recommend using that as the standard for your credit union. That figure tells me that there is room to increase coverage by adding more advisors and still increase revenue and profitability. Most advisors will resist splitting territories but the Program management has to constantly consider the question, “are our members being optimally served with the current coverage?”

Referrals– This is a good gauge for the effectiveness of the Program. If the branch teams are fully engaged in a robust referral Program then that is a sign that the Program is well integrated into the credit union; a key determinant of Program success. It is difficult to establish a benchmark for this since every Program seems to have a different definition of what counts as a referral. This has to be determined by such things as closing ratios of referrals submitted and cross-sell success i.e. is the credit union receiving referrals from the financial advisors?

Product Mix – What is the mix of products that the Program is selling to its members? Credit unions typically sell less fixed annuities, individual securities and managed money products than their bank counterparts. According to the Kehrer study the difference in fixed annuity sales can be attributed to the fact that credit unions are still struggling to embrace Platform Programs where licensed employees are trained to sell fixed annuities and mutual funds. The Platform reps tend to focus on selling fixed annuities. Financial Advisors have also been somewhat slow to the game of managed money. Historically bank and credit union advisors have been more transaction focused. This is a result of a lack of training and a lack of hiring advisors who are knowledgeable about managed money products. This is changing as members become more concerned with commissions and fees.

Sales Assistants – The proper use of sales assistants can make the Program run more efficiently and profitably. Unfortunately there has been no universal benchmark to determine when a Program needs to add an advisor. Much depends on the individual advisor’s organizational skills. I have managed programs where as soon as an advisor reaches $200,000 in GDC they request an assistant while I have had advisors doing over $500,000 in GDC without the benefit of an assistant. As with most situations there is a happy medium. According to the Kehrer study credit unions have been more generous than their bank counterparts on average using one sales assistant for every 2.6 advisors while banks have an assistant cover an average of 3.6 advisors. Again, there are differences in advisor organizational skills but Program managers should be looking to spread the cost of an assistant over as many advisors as makes sense. The process can also be used as a training opportunity. If the assistant is supporting 2 advisors then those advisors should be doing in excess of $500,000 each or you are not getting your money’s worth. Perhaps spending time to develop organizational skills may be a better investment.

What Next?

Increasing awareness of the Program and establishing credibility will move the investment and insurance sales program closer to and beyond the hallowed 10% member penetration benchmark. CEOs tend to focus on the revenue number and then decide whether or not there is merit in throwing more support behind the Program. I contend more attention needs to be placed on the revenue margin and profitability potential of the Program. Sometimes this can be achieved by simply determining what meaningful revenue does the credit union need from the Program? Once that is determined then the executive team should engagee outside expertise to help determine if that goal is achievable and how. Once there is agreement of the viability of the Program then it needs to receive a seat at the management table, become a core product and receive all the support that any other core product receives. Then and only then will the Program become a significant contributor to the institution’s non- deposit income.

What percentage of your members are taking advantage of this important member service? Is it 10% or more? If not, then why not? Your members deserve to know.

Financial Management and Budgeting in Business

Importance of Financial Management

Finance is a key functional area of business management. This area is commonly referred to as Financial Management. The term defines the achievement of key financial objectives by making investment and financial decisions. Essentially, it is the management of all the processes associated with the efficient acquisition and deployment of both short and long-term financial resources. Financial Management assists an organisation’s management to reach its financial objectives such as the creation of wealth, solvency, liquidity, growth and return on investment achieved through a process of financial planning, control and decision-making.

Financial Control

Financial control consists of different strategies to manage finances necessary to achieve the primary purpose of every business; which is to earn profit. Budgets are the traditional financial control method and provide a measuring basis which performance can be assessed. By engaging in a yearly budgeting process a business can make plans and forecasts for the year ahead. Control action should be taken when actual performance appears not to be matching the outline of the budget. Therefore by monthly monitoring of expenses, controlling methods can be put into place when expenses becoming higher than figures stated in budget (such as spending cut backs or extra working hours). And by determining the reasons why figures do not match the yearly budget plan, a business can therefore make necessary plans for this not to occur in the future. Monthly monitoring of expenses is another example of a financial control. Such data includes cash balance, total wages costs and hours worked key sources of income, unusual or above budget expenditures.

 

Three Main Financial Statements

The 3 main financial statements necessary to analysis and improve on finance viability:

1) Balance sheet – ‘A statement of financial position that shows the assets of a business and the claims on those assets’

2) Income Statement – ‘A financial statement (also known as profit and loss account) that measures and reports the profit (or loss) the business has generated during a period.’

3) The cash flow statement – ‘A statement that shows the sources and uses of cash for a period’

By analysing these three financial statements on a regular basis a business can proactively forecast problems or opportunities before they arise. The 3 main financial statements are also considered as financial controls as these statements are used to understand and interpret the financial conditions of a business as a means of management and control. The statements enable a business to set guidelines and policies that enable growth and business success. An annual Profit and Loss statement is considered the most important financial statement and UK businesses are legally required to lodge a Profit & Loss Account with Companies House. In regards to cash flow, cash inflows are payments for products or services and interest on savings and investments. Cash outflows are a combination of many things including purchasing stock, daily operating expenses, fixed assets and government taxes. A business is also required to produce a balance sheet annually for reporting purposes. It provides a report of assets or liabilities.

Budgeting and Budgetary Control

A budget as a qualified statement, for a defined period of time, which may include planned revenues, expenses, assets, liabilities and cash flows. It is a short-term plan of working towards financial objectives. There are several styles of budgeting, these styles include –

* Fixed – does not allow for variations

* Flexible – Adjusts or flexes

* Continuous or rolling – continually amended

* Zero-based – needs assessed

* Incremental – uses previous budget with increment

Budgets are necessary to provide a basis for control, helping identify short-term problems and promote forward thinking. However, there is a need for budgets to be adaptable if they become unrealistic due to sudden changes in the business environment. This is known as ‘Flexing the Budget’ (which simply means revising the budget).

A variance report is required to indicate whether performance is below or above the budgeted level. It is the difference between the budgeted level of costs and revenue and the actual levels of costs and revenues also referred to as variance analysis. Budgets can also have a behavioural effect motivating the management team and staff to achieve better performance and help promote forward thinking.

Effective Business Planning

A business plan is made up of many elements but no business plan is complete without this financial information. For business planning to be effective, the budget and the three main financial statements (Profit & Loss, Balance Sheet and the cash flow statement) must be taken into consideration. A financial statement is the core of a business plan as they are used to identify various business strategies. Financial planning is interlinked with all elements of a business plan. Five key strategic plans interlinked with a budget (plan); 1) establishing mission and objectives, 2) undertaking a position analysis, 3) identifying and assess the strategy options, 4) selecting strategic options, 5) perform, review and control. By taking all of these elements into considering, a business can create an effective business plan containing financial data and projections.

HelloTrans

HelloTrans offers franchise / business opportunity in Indonesia in Travel / Ticketing Industry. HelloTrans now to franchising, offering the concept of ‘travel and leisure’ which has been successful nationally.

Hello Traveler name has been at the top in the industry Tours & Travel in Indonesia for several years. Operates as a ‘Travel Agent and Tour Operator’, Hello Traveler has created many products and services using the brand ‘Hellotrans.com’, which are sold through 16 branch offices and sales outlets nationwide. According to the standards in the travel industry, some of these products can be categorized as innovative products and services.

With all six divisions: Corporate, Retail, Consolidator, Leisure, Domestic and Outbound Corporate Incentive; together with subsidiary companies of his; “whole” so-called “outbound extension” of its parent company PT. Putri Rimba Marumba (also known as ‘Hello Traveler’, one of the most reputable tour companies in Indonesia).

Both the parent company is called: Hello Traveler covers all the portfolios that focus on business trips, and all of a portfolio of products and services by Hello Traveler, as well as other businesses under the Putri Rimba Marumba called “Hello Trans”.

Address : Jl. Sukun Raya 12 A, Semarang

Estimated Investment : Rp. 400 Million

Carrefour suggested selling local products in foreign countries

JAKARTA – Vice Minister of Commerce Krisnamurthi called Carrefour to sell cooking oil palm ECOPlanet be sold abroad.

“We hope the product is not sold in Carrefour in Indonesia, but outside Carrefour-abroad,” said Bayu.

Bayu said that there was no reason Carefour from other countries reject the product, because it violates the rules of the franchise where not refuse to sell the product elsewhere.

Head of Public Affairs Satria Hamid explains Carrefour, Carrefour commitment to work together and take advantage of the local Contain in Indonesia and Indonesian products such commitment.

“Maybe in the future will be sold on the Indian market, Malaysia, Thailand and China. But maybe we are to support of the raw materials that are certified where Carrefour’s commitment,”

Moving quickly

“Never put off until tomorrow what you can do today.”
(Benjamin Franklin)

Beginning of this book we have submitted a slogan that must run every prospective entrepreneur: Practice! Practice! Practice! This is something that the leaders in all areas of agreement.

Every great work – whether it run the company, sales of high-level, in science or government – requires a person who thinks to act. The chief executives who are looking for key people, demand answers to question: “Is he going to do the job?” “Is he going to finish?” “Is he the person who took the initiative?” “Can he deliver results, or is he just good at talking?”

All these questions have one goal: Finding out if the person is a person who likes to act?.

Great idea is not enough. Simple idea is implemented and developed, is one hundred percent better than a great idea that died were not followed up. No one came by just thinking about it.

Remember. Everything that we have in this world, from the satellite to the skyscrapers of up to baby food, just an idea implemented.

Your 401(k) Investments And The IGVSI

Smack, right up alongside the head. Your 401(k) investment program deteriorated rapidly as the stock market and the economy weakened. Who would have thought that there was so much risk of loss in those mutual funds, and ETFs? Fortunately, the pain is most often temporary, but the timing of the recovery could alter some participant retirement schedules and benefits— not to mention the hefty confiscation level retirees can count on from Uncle Sam.

The popularity of self-directed 401(k) benefit plans is understandable. Employees typically get an instant profit from generous employer matching contributions, a variety of investment products to choose from, and portability between jobs. But the benefit to employers is far greater— an easy, low-cost, employee benefit plan with virtually no responsibility for the safety of the investments, and no lifetime commitment to benefit payments. In some instances though, employees are required to invest too large a portion of their account in company stock— a situation that has caused major problems in the past (Enron, for example).

401(k) plans have virtually replaced the private pension system, and in the process, have transferred total investment responsibility from trustee caliber professionals to hundreds of millions of investment amateurs. Employees get little professional guidance with regard to selecting an appropriate mix of investment vehicles from the glossies provided by 401(k) fund providers. Few Employee Benefit Department counselors have degrees (or hands-on experience) in economics, investing, or financial planning, and wind up using the “unbiased” counseling services of the funds’ salespersons. How convenient for them. Interestingly, most salespersons also have no hands-on investment experience either— go figure.

 

Similarly, the financial planning and accounting communities seem to have little concern about such basic investment tenets as QDI (quality, diversification, and income). If they did, there would never be instances where individual investors lose everything in their one fund, one stock, or one-property investment programs. QDI is the fire insurance policy of the investment plan, but few 401(k) participants hear about anything beyond: past market value performance numbers, future performance projections, and the like. They are not generally aware of the risks inherent in their investment programs.

This is where an understanding of investment grade value stock (IGVS) investing, the IGVSI and related market statistics becomes important to 401(k) participants, company benefit departments, accountants and other financial professionals. IGVS investing is just perfect for long-term, regular-deposit-commitment investment programs.

Somehow, we’ve got to get 401(k) investors to understand the framework of an investment/retirement program and, then, we have to get participants and/or their professional advisors to look inside the products being offered. As much as I hate the idea of one-size-fits-all investment products, they are generally accepted as the best way to deal with larger employer 401(k) programs— most employers don’t even know that more personalized approaches exist.

Only when some form of company, sector, or economy melt down occurs, does the head scratching (and the investigating) begin. 401(k) participants need to understand that they are not immune to the vagaries of market, economic, and interest rate cycles. Along with their employee benefit plan comes total responsibility for the long-term performance of the investment/retirement program. Are you in good hands?

Historically, IGV stocks fluctuate enough (both in general and by sector) to allow for mutual fund and ETF investors to select the less risky offerings from among the 401(k) product menu at the most advantageous times— but all individual investors need to learn how to identify the risks and to learn how to deal with them. Typically, 401(k) participants buy the higher priced, last-year-best-performing, and hot sector offerings while they sell or avoid the various products they feel have “under performed” the market.

Nowhere else in their lives do they adopt such a perverse strategy. And nowhere else in their thinking would they blindly accept the premise that any one number represents what is, or should be, going on in their personal investment portfolios. Risk minimization begins with quality, is enhanced through diversification, and is compounded with realized income.

The first two steps require research, greed control, and discipline. The income part just requires discipline, so it should be much easier to manage. If you cannot identify and understand the individual securities within an investment product, and assess the overall quality (economic viability and risk protection), don’t invest in it. If you have more than 5% of your portfolio in any one individual security, or 15% in any one sector (industrial, geographical, social, political, etc.), make some changes.

Since 401(k) plans are almost exclusively mutual fund shopping malls, it is difficult to assess the income or cash flow component of the risk minimization function. Product descriptions, or your benefits representative, should provide the answers. You can stay away from products that refuse to share the income with you, but the best way to benefit from a fund based benefit plan is to establish selling targets for the products you select. If your Blind Faith Fund Unit Value rises 10%, sell all or part of it and move the proceeds to another opportunity that is down 20%. Profit taking is the ultimate risk minimizer.

So long as we are in an environment where retirement plan income (and principal in the case of all private plans) is subject to income taxation, 401(k) participants would be wise to establish an after tax income portfolio invested in tax exempt securities— or to vote more selfishly.

Auto Financing Companies For Bad Credit Individuals – 5 Steps to Getting Funded

When one thinks of auto financing, one image that comes to mind is a world of wheeler-and-dealers who are always trying to get the better of the borrowers that come to them for a car loan. One reason for this slightly negative image is that there is no guarantee that you will get approved or that you will be offered a certain rate. Rather, it is up to each lender as to just what type of deal they will offer you on a car loan.

If you were to take a look behind closed doors within an auto dealer’s financing office or that of a bank’s loan manager, you may be surprised to learn that there is a method to their madness. In other words, they are not just taking your application, putting their hand into a hat full of different loan deals, and pulling one out for you.

Rather, there is a surprisingly predictable formula to the way a loan deal is prepared and offered to you when you visit an auto financing company. Obviously, your credit score plays a very big role in it. But, so do things like your employment history, your residential history, and even the way you present yourself in person.

If you have bad credit, you may have had some unpleasant experiences in dealing with auto financing companies. Namely, your car loan application may have been rejected on one or more occasions. Or, maybe you just were not able to qualify for a good loan.

No worries. Here are 5 steps to getting funded (at a reasonable rate) the next time you look for good auto financing companies:

1. Shop for a car in a reasonable price range:

Start by shopping for and choosing a car that is in a price range that makes sense, given your credit situation. You may be tempted to choose the very best car on the lot, but that would be a mistake. Someday soon, no doubt, that super-expensive car, SUV or truck will surely be yours. But, for now, it is time to be realistic about what you can reasonably afford. A smaller loan will mean much better chances of your loan getting funded.

2. Understand how bad credit auto financing companies think:

While 98% of car financing companies focus mainly on the borrower’s credit score as the basis for their lending decisions, about 2% of the companies out there actually look to do business with bad credit individuals. They have built a nice little business on catering to the credit-challenged. These companies look past your credit score and instead consider your situation as a whole when making a decision.

3. Run a credit check on yourself:

This may sound strange, but you will benefit greatly from doing running your own report. Find out your score with all 3 of the top 3 bureaus (since it will vary from one to the next). And, be sure to protest any errors you find on any one of your reports. They are obligated by law to fix them.

4. Take the time to build a healthy list of lenders:

In this case, “healthy” list means 5-7 lenders. Sound like a pain to do that much research? Just think: spending an extra 20-30 minutes doing your homework now could save you thousands in lower interest payments over the life of your loan.

5. Follow through with applying to five or more lenders:

Now, make sure you actually apply to all of the lenders on your final shortlist; be sure you apply to five, at minimum. You never know: the fifth one you talk to may be the one that offers you a 1-2% lower interest rate. That’s money in the bank for you.

Follow these 5 steps to finding the right auto finance company and getting funded.

Exploring Your Financial Regrets (And Right Choices) With A Financial Controller

We’ve all done something (or several somethings) in life we regret. Or we haven’t leaped on an opportunity fast enough, and, as a result, ended up regretting our inaction. In the world of finance, this is especially true, at least according to a new study released this summer by the National Foundation of Credit Counseling (NFCC). What do Americans regret the most? Fifty-three percent said they had regrets about habitual overspending.

Other common regrets included:

– Inadequately saving (18 percent)

 

– Insufficiently preparing for retirement (14 percent)

– Not having bought a house (10 percent)

– Buying a house (5 percent)

For businesses, financial regrets might take different forms, although overspending may also be near the top of the list. Whether you’re paying more than you have to for raw materials or inventory, not negotiating salaries well so that payroll is higher than it needs to be for the talent you’re hiring, or even just paying too much for your lease and other operating expenses, habitual overspending hurts your bottom line month after month.

Is Your Small Business Overspending?

A part-time CFO or outsourced financial controller can help you discover the places where overspending is hurting your business, and other areas (perhaps sales and marketing) where you need to invest more. Companies often don’t invest enough in advertising or sales during lean financial times, but that’s exactly the time you need to be setting your business apart from the pack with strong sales and marketing campaigns.

Avoiding Other Financial Regrets

Maybe your financial regrets are more complex – not applying for investment capital to take advantage of an opportunity in the marketplace, or even spending too much to launch the wrong product or service at the wrong time.

All of these mistakes – and more – can be avoided through careful financial analysis and financial forecasting. It all starts with accurate, up-to-date bookkeeping, and the presence of a trusted advisor who can help you see the stories behind the numbers.

And don’t worry. Your part-time CFO is not all doom-and-gloom, there to help you see and analyze past mistakes or help your company avoid future ones. He’ll point out what you’ve done right time and again, and show you exactly why it worked from a financial standpoint, so you can continue investing your time and money in the right places.

He’ll also help you avoid future financial regrets by spotting opportunities while there’s still time for you to act. He won’t make the decision for you; that’s still all up to you.

Don’t let your next financial regret be continuing to maintain your own books and floundering on your own with no financial guidance for your business.