30 Oct 09 Joe Wonders, Should He Quit His Job Part – 2

Through this series, I am attempting to help Joe who wants to change is current job, but he is very much confused. He is not sure, if he is making a right decision or not. In the first part of the series we asked Joe some questions about his current job. In this part, we will ask questions about Joe’s financial condition and will also ask Joe to evaluate himself in terms of finance.

Analysis of Joe’s financial condition

Before Joe can jump out of his current job and take up a new venture, he needs to understand his present financial condition. If he is not very much sound financially then he should stick to his current job until his financial condition improves. To find out how healthy is his financial, Joe needs to ask the following questions:

How good is your credit rating? Joe needs to have a very healthy credit rating before he should quit his job. If his credit rating is not good then Joe should stay in his current job and build a strong credit score before he can think of quitting the job.
Can he sustain his life for six months without a regular income? No matter how starry-eyed Joe is, he will not be able to make any difference, if all he got is dream. He needs to think about his family and their life. He needs to put bread on the table, pay his bills, support his child, and have some savings for medical and other emergencies. And if Joe can do all these for six months then Joe is good to go. He should quit the job and chase his dream. Six month is a long time, if his dream is realistic and executable, he can start anew in this period.
Does he have sufficient savings to support his dream?
From where is he planning to get financial support to go all in?
Does he have medical and insurance policies in place? When is the premium due? What if he fails to make the premium? How much will it affect his and his family’s medical and insurance coverage?
What about his retirement plan? How will it get affected if he fails to make deposit to his retirement fund?
Is his wife earning? Can she support Joe’s family? And for how long can she do so?

Joe would not like to put his family life in jeopardy by making a reckless decision. Hence, these questions are worth considering before he could bid adieu to his current job.

Tags: Chase, Credit Rating, Credit Score, Emergencies, Finance Analysis, Insurance, Insurance Coverage, Insurance Policies, Job, Long Time, New Venture, Pay Bills, Retirement Plan, Right Decision, Six Months

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04 Sep 09 5 Ways to Make Your Business Sale like Crazy

Let’s face it: we are in the business because we want to make some money selling the product or services we believe is the best and most profitable for us. But, how do you know that the product or services you are going to offer is, indeed, the best? How can you be so confident that the product you are going to sell suits your selling style? And how do you know if it is right for you?

Answering these are not difficult, if you have done your homework right, but if you haven’t done your homework then this will deeply disturb you, and it will slim down your chances of making a killing. I would suggest you to find out the answers to following five questions, if you want to sale like crazy.

How is your product different from all other products available in the market?

Take your baton forward only if you have a concrete answer to this question. Do not create any artificial value. Are you for real? Ask this question over and over again, and try to answer this from different perspective.

Why should your wife try your product instead of using what is in the market for many years?

If you think, your wife will have to buy it because it is you who are selling then you may be right, but the wife of your friend or his friend or of your neighbor is not compelled by the same illogical pushing. Find out a real reason to make them buy from you.

Who all are competing with you?

Knowing your domain is always better. You should know who all are in the race to chase that single dollar, which has just come out of the customer’s wallet.

Why the hell are you in the market?

If your answer is to earn money then go straight out of the market without even dropping a pin, for we all are here for the same purpose, and we will not mind cutting your throat for our profit (cut-throat completion). To sustain in this market, you will have to think in terms of value for customers, employees and investors, not just in terms of earning money. Do not worry, money will follow.

Who on earth do you think you are?

Always remember, you are “Mr. Nobody.” It is the customer who makes you somebody, so why not define yourself as what your customers think of you? Know your place in market as well as in the minds of your customers, and take it as a ground to start from. Now, you are free to do whatever you do until and unless you cause serious disruption in the way your customer thinks about you. minute tweaking are alright.

Tags: Business Sale, Chase, Concrete Answer, Cut Throat, Cutting, Different Perspective, Domain, Earn Money, Earning Money, Face, Hell, Homework, Investors, Neighbor, Real Reason, Suits, Wallet

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11 Aug 09 7 Personal Finance Tips for Switching Job

There is a common belief that, if you stick in a company for long, you are crippling your chances of getting a rewarding career. You may get the promotion, but the raise that accompanies the promotion is never decent; hence, one should switch the job as soon as a better opportunity peeps round the corner. In this article, I am not contesting this assumption; all I am doing is telling you what all to consider when you think about changing your job.

Do not get tempted by the shine of a dollar

Higher salary is worth the chase but, not at the cost of quality of work. Do not run after higher salary alone; consider factors like quality of work, work environment, future prospect, career growth, and available opportunity to learn before hopping from one job to another.

A perfect shot requires a perfect timing

If you are expecting a raise in salary after the annual appraisal in March, then wait till you get the hike. This is wise because, the salary you will get after the hike will become a new bottom-line from which you can negotiate even higher salary in the new job.

Do not settle for suitable-for-all CTC (cost to company)

CTC is a misleading term, so, do not forget to ask about the salary breakup, and when you find yourself stuck in the situation where two companies are offering same CTC, go for the one which gives more cash in hand. Always remember, you can negotiate the salary breakup of CTC; why not exercise the option?

Respect the notice period

Notice period is not just one of those laws that mean nothing. Do not take notice period lightly. Companies do sue their employees and seek compensation, which usually is higher than what an employee is paid in a month, if someone leaves the job without serving notice.

Tax Issues

I know, tax is a dreaded word, but one still needs to think about it. Get all your tax deduction papers and other related documents from your previous employer before switching your job.

Insurance coverage

If you were given medical, travel, or any other insurance by your previous employer, make sure, you get it from the new company as well. This will save you a good some of money, which otherwise will go to pay yearly premium.

Employee stoke ownership plan

You should ask your company, if you can encash the stock that you were given as a reward for your continuous hard work or long stay. You should also negotiate stock options in the new company.

Tags: Assumption, Belief That, Bottom Line, Career Growth, Chase, Cost Of Quality, Finance Job, Future Prospect, Insurance Coverage, Misleading Term, New Job, Notice Period, Perfect Shot, Perfect Timing, Personal Finance Tips, Rewarding Career, Salary, Serving Notice, Tax Deduction, Work Environment