Healthcare Reform. Everyone is talking about it. Read any paper, watch any news show. The words ‗healthcare reform‘ always come up. But what does this mean to the medium business? What can you, as a medium business owner, expect from it? First I will focus on the positives. First and foremost, nobody will be denied coverage due to a pre-existing condition; every- one can have health insurance. On top of that, if you have a severe illness, such a cancer, you will not have a ceiling on how much money your insurance company will spend each year on your care, for instance you will not have a $100,000 cap, which should help reduce medical bankruptcy. Support- ers claim that insurance rates should go down because there will be more competition and efficiencies in the insurance mar- ket. In addition, those of us currently insured will not have to carry the burden of paying for the uninsured. So, now the negatives. Current estimates are that this reform will cost our country nearly $100 billion a year. Where does this money come from? We are told that money will be cut from areas where it is being wastefully spent; however, we are not being told what areas those are, and what exactly is considered ―wasteful spending‖ in government? All Americans will be required to purchase health insurance. If you do not, you will incur a 2% tax increase. In addition, if you make more than $500K a year, you are looking at a 1% tax increase as well. It is possible that health insurance rates increase instead of decrease. While, as I stated earlier, efficiencies and competition increase so might the cost of providing additional benefits. We are still awaiting the final specifics of the bill but needless to say, it‘s going to effect all of us in different ways. Large corporations like Caterpillar and John Deer say that this bill is going to cost them billions each year. We can only cross our fingers that that is not the case for medium businesses. Letter From The Editor Special Points of Interest: Selling a Product that isn‘t a Product at All Putting Value on your Business Workplace Cleanli- ness Inside this issue: April 2010 Volume I, Issue V Sales & Marketing 2 Legal 3 Technology 4 Human Resources 6 How To 8 Member Spotlight 9 Comic Cornet 10
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Healthcare Reform Everyone is talking
about it Read any paper watch any
news show The words healthcare reformlsquo always come up
But what does this mean to the medium business What can
you as a medium business owner expect from it
First I will focus on the positives First and foremost nobody
will be denied coverage due to a pre-existing condition every-
one can have health insurance On top of that if you have a
severe illness such a cancer you will not have a ceiling on
how much money your insurance company will spend each
year on your care for instance you will not have a $100000
cap which should help reduce medical bankruptcy Support-
ers claim that insurance rates should go down because there
will be more competition and efficiencies in the insurance mar-
ket In addition those of us currently insured will not have to
carry the burden of paying for the uninsured
So now the negatives Current estimates are that this reform
will cost our country nearly $100 billion a year Where does this money come from We
are told that money will be cut from areas where it is being wastefully spent however we
are not being told what areas those are and what exactly is considered ―wasteful spending
in government All Americans will be required to purchase health insurance If you do not
you will incur a 2 tax increase In addition if you make more than $500K a year you are
looking at a 1 tax increase as well It is possible that health insurance rates increase instead
of decrease While as I stated earlier efficiencies and competition increase so might the cost
of providing additional benefits
We are still awaiting the final specifics of the bill but needless to say itlsquos going to effect all of
us in different ways Large corporations like Caterpillar and John Deer say that this bill is
going to cost them billions each year We can only cross our fingers that that is not the case
for medium businesses
Letter From The Editor
Special Points of
Interest
Selling a Product that
isnlsquot a Product at All
Putting Value on your
Business
Workplace Cleanli-
ness
Inside this issue
April 2010 Volume I Issue V
Sales amp Marketing 2
Legal 3
Technology 4
Human Resources 6
How To 8
Member Spotlight 9
Comic Cornet 10
Page 2 Medium Business Alliance Volume I Issue V
In todaylsquos economy more than ever small to medium sized
companies are forming that offer services that are not tan-
gible items but actually expertise or knowledge Of
course it is still a product that you are marketing and sell-
ing but when that product is knowledge and expertise in
the form of consulting how do you market it The answer
is actually quite simple networking
I own a commercial real estate development and consulting
business that handles large scale multi million dollar pro-
jects Letlsquos face it anyone that may need expertise in that
area is not likely to go to the
yellow pages and start calling
people based on their add or do
a search on line and see who
pops up They are likely to start
asking around amongst business
associates friends and family
whom they know and trust for
names and recommendations
They want to be sure that they
hire someone with a proven
track record who comes with
strong personal recommenda-
tions So how do you find the
people or businesses that need your services The answer
is that you donlsquot Now that may seem crazy at first but
the real answer is that if you network properly they will
find you We live in a relationship driven world and busi-
ness will come through relationships
So how do you go about this to assure that your clients
will find you The starting point is coming up with a target
profile for your customer You need to identify the gen-
Sales amp Marketing Selling a Product that isnrsquot a Product at All By Jeff Pape
eral characteristics of your ideal client and then work from
that base Once you have a profile established you begin
to systematically go through all the contacts you and your
partners and employees have developed in your profes-
sional and personal lives to see where there is overlap with
your ideal client Those relationships are where you start
Imagine throwing a stone into a calm pond The initial
splash are those personal contacts that have significant
overlap with your target client A personal reference from
someone who knows you and your business will by far give
you the best opportunity to land work
So do you stop there and wait
for all that business to come
pouring in the door Not if you
want your business to be a suc-
cess Now you attack the next
waves the ripples that continue
to form around the initial splash
Now you look for professional
organizations trade groups so-
cial networking groups that
might have overlap with your
customer Once you identify
these groups do you send a
mass email to their membership list Absolutely not At
least not yet Networking is all about that personal con-
nection You do your research and find a person or small
group of people within that organization that has influence
amongst the members and you do everything you can to
get a personal audience with them Why do you do this
Because you want to introduce yourself in a one on one or
very small group setting so that you have the best chance
of building a personal relationship or connection That
ldquoImagine throwing a stone into a
calm pond The initial splash are
those personal contacts that have
significant overlap with your target
client A personal reference from
someone who knows you and your
business will by far give you the
best opportunity to land workrdquo
Page 3 Medium Business Alliance Volume I Issue V
Legal Oral Contracts Do they carry any weight By Karen T Hartline
Believe it or not the old-fashioned handshake began as a
means for two people to assure one another that neither
was carrying a weapon Over the years this simple gesture
has evolved into a contractual symbolmdashor a guaranteemdash
for an oral agreement But in an era of phone-book sized
contracts fine print and legal battles does time-honored
handshake deal still carry any weight
The answer is yesmdashas long as you can prove it in court Its
interesting to note that many powerful people have en-
gaged in handshake deals from Bill Clinton and Newt Gin-
grich to Bill Gates and Steve Jobs But more than likely
these handshake deals were followed by large contracts
that outlined key deal points and terms If you are the type
of person who prefers informal agreements sealed by a
handshake at the very least have a few people on hand to
witness you shake on it A handshake deal is always more
binding when there are witnesses to the agreement In
other words avoid agreeing to anything in a dark alley when no one else is looking
If you did go ahead and shake on an oral contract with no one to witness it you should probably get right to work on
your half of the bargain Because putting your words into immediate action is another way to validate your oral agree-
ment If you begin acting on your agreement with the other party acting in compliance you create additional evidence
that a deal was struck Of course the only problem with this strategy is that it requires the other party to immediately
begin work on their half of the agreement
then creates the personal reference or introduction
that you need to the rest of the membership Remem-
ber a personal recommendation gives you by far the
best chance to actually land that new client
Of course you still need to get the word out to as many
people as you can so there are certainly times and
situations where a mass email is very appropriate For
example once you have accomplished that initial meet-
ing with an influential person within a group A mass
email campaign is much more effective either coming
from a member of that group or at the very least in-
cluding a recommendation quote from a member of
that group as your lead in the email A web site is also
a critical marketing tool but in a slightly different way
than if you are selling a tangible item Your web site
needs to be very professional and needs to clearly con-
vey your companylsquos experience and services offered
Then you use it as a follow up tool once you have made the
personal contact From the initial meeting you can refer
your potential client to the web site to learn more details
about who you are what youlsquove done and what you can do
for them It can be a great tool to help you close the deal
My company is working in arguably one of the toughest are-
nas in the economy today commercial real estate It is an
industry where development has virtually halted there is
little to no capital available to fund deals and banks are fore-
closing on properties left and right So what has kept us
active in the most challenging economic times our industry
has ever seen Itlsquos simple networking and relationships So
remember that every interaction with a live person even
someone who is not in your business field could be the con-
nection to your next client so treat them accordingly
Jeff Pape is President of DampA Development and Consulting Inc a full service commercial real estate development and
consulting company Jeff has worked in the commercial real estate industry for over 17 years and has written several arti-
cles that have been published in national trade publications You can learn more about DampA at their web site wwwdna-
developmentcom
Page 4 Volume I Issue V Medium Business Alliance
Technology and the Internet have
transformed business in ways that
very few people could have predicted
years ago Increasingly the internet is
being used as a cost effective solution
for many of the business operations
An internet business strategy is basi-
cally a plan that how you want to
manage your online presence for your
business
Adopting an integrated approach in
devising a successfully internet strat-
egy to benefit your business a well
planned web presence can increase
the market awareness and branding of
your business that brings you tangible
results
Just as you have a strategic plan to
grow your business you need to de-
velop an internet marketing plan that
Technology Integrated Approach to Internet Strategy for Business By Ajay Prasad
Failing witness testimony or any actions that verify your handshake deal you can always present supporting materials to
strengthen your claim For example any correspondence between two parties is admissible in court particularly if it is
sent certified mail Faxes emails letters memos and receipts all help establish your handshake deal If you are particularly
uncomfortable drawing up a contractmdashsay with a friendmdasha simple thank you letter immediately following a handshake is
always a good way to establish the terms of your agreement The recipient will not think of it as possible evidence but
simply as a polite gesture
Of course none of this is necessary if both parties are happy and everyone lives up to their word In a very simple deal
chances are slim that anyone is going to wind up having to prove anything in court But if there is a dispute that lands you
in court the burden is on you to produce evidence of the transaction
More often than not handshake deals fall apart over the details of the agreement Oral contracts are often useful for sim-
ple exchanges such as I will trade you my old air conditioner for your old refrigerator But for deals with a multitude of
finer points such as employment or lease agreements its always best to get your deal in writing For those of you who
still feel uncomfortable asking your buddy to sign a piece of paper remembermdashits not so much an issue of trust as it is of
clarity Perhaps Nixon said it best when he quipped trust everyone but cut the cards
Reprinted with permission from LegalZoomcom Inc For common legal matters please visit them at
wwwlegalzoomcom
integrates the most effective online
strategies for increasing website traf-
fic and converting visitors into buy-
ers
An internet strategy for any business
includes website planning develop-
ment marketing and management
Planning ensures that your content
targets the right type of customers
For that you have to customize your
web plan to fit your company rather
than following any well-written for-
mula Even so there are standard
components you have to follow
them such as market analysis strat-
egy any specific development plan
marketing and most importantly ex-
pense budget
1 Market research- It is a fundamen-
tal part of any business strategy This
If you are particularly uncomfortable drawing up a contractmdashsay with a friendmdash
a simple ldquothank yourdquo letter immediately following a handshake is always a good
way to establish the terms of your agreement
Page 5 Medium Business Alliance Volume I Issue V
normally includes a target market
analysis market research and a mar-
ket forecast
2 Website strategy- This includes
your mission and objective of starting
an internet business web develop-
ment and marketing strategy
3 Specific development plan- Any
web plan is measured by the result it
produces Therefore implementation
of your plan is more important than
brilliant ideas Start taking action on
the tasks that you have created during
the planning stage
4 Identify your organization goals
Every company has a set of tangible
and intangible goals and identifying
yours will help you better focus on it
and implement them in time
5 Online marketing- Getting the most
out of the online marketing channels
requires specialized techniques like
search engine optimization pay per
click marketing social media optimiza-
tion e-mail marketing and many more
to reach out to your customers
6 Expense budget- This includes de-
tails to track expenses month by
month and follow up with your plan vs
actual analysis
7 Returns (ROI) - Business is driven by
ROI and it is only natural that the
online marketing efforts need to lead
into a positive ROI determined by the
key performance indicators
8 Survey- Get feedback from website
visitors regarding what bought them to
you or how their experience has been
on your website
The Internet presents a wide range of
marketing and communication oppor-
tunities for every business Making
those opportunities a reality requires
careful planning thoughtful assessment
and directed focus
Web design is very important to
search engines Messy over-
complicated or bad code give the
search engine spiders a hard time
crawling your pages If the spiders
crawlers cant crawl your pages prop-
erly and retrieve all the data they need
the search engines cant rank them
properly
There are more effective methods of
attracting your customers to your
website than search engine listings
PPC is great for targeting potential
leads in every phase of the buying
cycle and it is measurable Studies
show that regular contact with cus-
tomers helps to maintain your rela-
tionship with them and generates
referral business
Many companies consider web ad-
vertising a viable technique to benefit
your online business The ability to
target has been one of the main
things that have attracted people to
the internet for advertising You can
target big to very small websites that
give real vertical information and at
the same time it is also interactive
The scope for business on the Inter-
net is fantastic-there is so much po-
tential there and all you have to do is
have an integrated strategy or plan
to make it happen
Ajay Prasad is founder of Global Marketing Resources LLC that runs a number of ecommerce websites under its um-
brella Ajays functional expertise includes website strategy marketing management business development consumer re-
search market analysis and strategic planning GMR Web Team is an Orange County Website Design company that aims
to develop an overall Internet strategy for your business
Web design is very
important to search
engineshellipIf the
spiderscrawlers cant
crawl your pages
properly and retrieve all
the data they need the
search engines cant
rank them properly
Page 6 Volume I Issue V Medium Business Alliance
Simply put asset based lending is a loan that is secured in exchange for the assets of the company like accounts receiv-
able inventory and other balance sheet asset items as collateral Also known as asset based financing itlsquos a straightfor-
ward concept which emphasized on matching the companylsquos assets to the borrowing needs Most of the traditional
bank loans are based on the balance sheet ratios and the cash flow predictions
The assets of the organization are the major factors on which the loan is dependent in asset based financing This leads
to greater borrowing capacity than the traditional banking approach The major advantage of such loans is the availabil-
ity of cash for the routine requirements of the company The collateral would generally be the accounts receivables
inventories machinery and equipment real estate and other tangible assets
Benefits of Asset Based Lending
Low Rate of Interest Compared to the unsecured loans the rate of interest of such asset based finance is much lower
This is because the lenderlsquos money is safe with the availability of the collateral item on non-repayment of the loan
Profit and Loss and Credit History One major benefit of the asset based financing is that the asset value is of relevance
to the financing company and not your credit history or the cash flow status
Quick Finance The financing organization lends the amount required quickly with least hassles Thus when there is an
urgent need for finance to capitalize on a great business opportunity it can be accessed with the help of the asset
pledged It is thus useful to meet the seasonal need rapid growth acquisitions etc
Commitment The asset-based loans have flexible repayments plans Short-term asset based loans get paid off quickly
from the account receivable and the inventory
Many companies provide customized lending depending upon the needs of the organizations Some companies also
have expertise in specific industries that is beneficial to understand the finance needs of the company
Financial Discipline The borrowing availability is dependent on the advance rates on the accounts receivables This
makes the borrowers collect the receivable amount in a more disciplined manner Moreover as only the completed
products are eligible for financing the company improves on efficiency in the production process
Few Financial Covenants The asset based loans require only a few covenants like debt service coverage and net worth
as they are based on the collaterals
In tough financial conditions the lender shows the willingness to give more time to the borrower as he has the collat-
eral to protect the loaned amount
Industry Expertise The financing companies have expertise in dealing with the retailers manufacturers distributors and
importers within industries dealing the automotive parts apparel consumer products food and beverages steel and
transportation Thus these companies extend help to nearly all businesses
The asset based lending is useful when you have a requirement for working capital and funds for new acquisitions and
major capital expenditures It also fills in for the funds required restructuring the business and to take care of other
finance needs
Financial The Benefits of Asset Based Lending
Accounts Receivable Financing can help your business grow and by solving cash flow problems The Internal Revenue
Service (IRS) has a guide on what defines an Account Receivable Financing Company To receive a quick quote visit the
website at wwwarfactorquotecom
Human Resources
Workplace Cleanliness Tips on Combating Germs in the Office By Peter Sheldon
Page 7 Medium Business Alliance Volume I Issue V
The winter may be coming to a close but that doesnlsquot
mean companies should stop paying attention to proper
workplace cleanliness With viruses like H1N1 still show-
ing up in public environments ndash plus $150 billion in lost
company productivity each year from illnesses such as
influenza and the common cold ndash there is a need to im-
prove infection prevention practices in the office or
workplace environment
Fortunately commercial cleaning has made great strides
and innovative health-based cleaning systems now address
the need for cleaner healthier facilities
Judging a facilitylsquos level of cleanliness by appearance alone
is not an effective measure of clean A true health-
focused cleaning program offers a comprehensive system
that provides cleaning on the unseen or microbial level
To accomplish this health-based cleaning services utilize
advanced technology such as microfiber cleaning cloths
and flat mops hospital-grade disinfectants no-touchlsquo rest-
room cleaning and multi-filtration vacuums
The first step in any effective facility cleaning program
must be the use of proper disinfectant chemistry to kill
bacteria and viruses that can cause illness But what hap-
pens to those germs once they have been killed
With traditional cleaning methods very few of the dead
germ cells are actually removed Instead the standard
cleaning materials used by most custodial services simply
spread the germs around cross-contaminating other sur-
faces and leaving behind the dead cells that may serve as
cleaning cloths and mop pads that have tiny fibers that
make the fabric super absorbent in order to trap those
dead germs and remove them from the surface
Health-based cleaning services are also employing color-
coded systems for their cleaning cloths and flat mops to
further avoid cross-contamination For example instead
of using one cloth for both the bathroom and cafeteria
they use a different color cloth in each room ndash thereby
ensuring that soil and matter from one room will be con-
tained and germs from one area will not be spread to
another part of the building
Tips to Employ a True Health-Based Cleaning
Program
Several elements are crucial to ensuring a health-based
cleaning program is successful They include
Implementing a cleaning system that can be measured
to remove soils and germs through scientific
tools rather than judging by appearance alone
Using EPA-registered hospital-grade disinfectant
chemistry
Cleaning with multi-filtration high efficiency vacuum-
ing technology to improve indoor air quality HEPA vac-
uum systems are 9997 percent efficient at filtering dirt
dust and allergen particles 03 microns or larger
Using color-coded microfiber cleaning cloths that
reduce cross-contamination and are 99 percent more
effective at removing illness-causing germs and soil
ldquoThe first step in any effective facility
cleaning program must be the use of
proper disinfectant chemistry to kill
bacteria and viruses that can cause
illnessrdquo
Page 8 Volume I Issue V
Employing touch-free spray and vacuum system tech-
nologies In areas tolerant of wet cleaning processes this
technology provides the most complete disinfection and
soil removal of any cleaning application
Deploying no-dip flat-mopping systems that use only
clean solution for increased soil removal and reduced
cross-contamination
By simply having occupants ndash all workspaces pose a risk of
spreading infection Businesses who wish to maintain
Medium Business Alliance
spotless indoor environments while meeting the larger
goal of employee well-being should review the cleaning
methods used by their current facilities manager or clean-
ing services to be sure they include the benefits of health-
based cleaning innovations
Health-based cleaning programs provide cleaner healthier
environments ndash your employees will experience fewer
sick days you will have lower associated healthcare costs
and your business will benefit from better productivity
and higher employee morale
Peter J Sheldon Sr CBSE brings over 18 years of experience in the Building Services Contracting industry to his posi-
tion as Vice President of Operations of Coverall Health-Based Cleaning SystemSM Sheldon works closely with the
Coverall sales and operations teams to spearhead initiatives that further the Companylsquos strategic objectives and help the
Company develop the most efficient and innovative cleaning processes available Sheldon is among the elite group of build-
ing service professionals to qualify for the Certified Building Service Executive designation
How To Putting a Value on Your Business By Don DuLong
Starting a business was a very exciting time in my life The wonder of what was to come Could I build and grow a viable
business What would it be like to work for myself instead of someone else Well 15 years later with the help of nu-
merous people I have accomplished the goals I set for the company So what now Sure like other business we con-
stantly are developing new services and representing new products but what will I do with this business when I am ready
to retire Can I sell it Better yet what is it worth
Sure every business owner is trying to constantly improve the value of the business but what is the business really worth
Experts will tell you that putting a value on your business is not something you should do yourself You are emotionally
attached to the business and that can prevent you from taking on objective view You can determine a ballpark value by
applying one or more different methods of business valuation I combined several different methods in order to place a
value on my company
When I started to place a value on the business the first thing I looked at was the companylsquos financial statements Just by
subtracting the businesses liabilities from its assets the book value of the business can be determined Most balance sheets
will do this for you The information on the balance sheet needs to current in order to get an accurate book value This
valuation does not take in to consideration the non tangible assets of the business
The rule of thumb method is a good way to see what your business is worth based on the value of similar businesses in
your companylsquos specific industry This method will give you a value that reflects an average value for businesses that have
sold or have been evaluated by professional firms The only drawback I found when trying to value my business using this
method was the lack of information specific to my industry The industry we work in does not have a high sell rate and
has a limited number of businesses compared to other industries I still applied the information gathered in order to get
an idea of what other business have sold for
When doing the research to see what methods businesses were using to determine their valuation I found that quite a
few businesses are applying the earnings capitalization method This method determines a businesslsquos value by comparing
the initial investment to the risk associated to the rate of return on that investment The rate of return on my business
varied from year to year and applying this method allowed me to set a value that would allow a purchaser to have a simi-
lar rate of return on the business Something was still missing though
Page 9 Medium Business Alliance Volume I Issue V
Merchant Gateway LLC is an employee-owned company We are an Independent Sales Organization (ISO) and Merchant
Service Provider (MSP) that is registered with VISA amp MasterCard to provide Merchant Services We have leveraged the
global capabilities of RBS WorldPay which is the third largest payment processor in the World ndash with the local knowledge
of our Agents to serve your business needs
Our business model is simple ndash Help Independent Merchants
1 Save Merchants $$$$
Introduce ―Cost-Plus Interchange Pricing to Small amp Medium Businesses The ―Cost-Plus pricing model was once only reserved to the ―Wal-Marts and larger businesses with
great transactional volume This will help the independent business owner compete with franchises and
larger businesses allowing them to keep more of their profits
2 Partner amp Educate Business Owners about Credit Card Processing Help business owners understand the lasted PCI compliance issues and provide to them easy to under-
stand information concerning their account in addition to getting them the best Interchange category
rate
3 ―Rate Lock for Life Program Although no one can affect the VISA and MasterCard Interchange costs we will lock in our Processing
Fees for the life of your account
4 $500 Best Rate Guarantee Challenge Simply put ndash If we cannot beat your current rate we will pay you $500 We know your time is impor-
tant and you have our commitment that we will save you money
5 Merchant Gateway Agent Program Merchant Gateway is always looking for local talented and motivated individuals to become part of our
growing movement Share in the best agent program in the industry with lifetime residual payments and
a dedicated sales team to insure your success
To take the $500 Best Rate Guarantee Challenge please fax your latest merchant services statement to (727) 231-8384
or call Phil DeConti (727) 644-1338 to discuss or answer any questions you may have Or visit them online at
wwwmerchantgatewaycom or email Phil DeConti at pdecontimerchantgatewaycom
Member Spotlight
Merchant Gateway ndash Americas Payment Choice
The most difficult part of placing a value on my business was determining what the intangible assets were worth How do
I place a value on the brand name and customer base we have developed for over 15 years How do I place a value on
the experience of the employees of the business Yes I said employees Itlsquos extremely difficult to find experienced and
dedicated employees in our industry and I felt like they added value to the business This is where the emotional part of
being a business owner comes in to play I canlsquot tell you what the intangible value of your business is because every busi-
ness is different in its own unique way So good luck in determining the value of your business and I suggest you start
taking a look at this long before you decide to sell
Don DuLong is the owner of MWD Inc which services and repairs all medium and heavy duty trucks trailers and buses When it
comes to anything in truck and heavy equipment service MWD is respected for providing quality work at reasonable prices For infor-
mation on MWD Inc contact Don DuLong at 478-742-1500 or visit wwwmwdincnet
Comic Corner
New Member Listings
wwwmediumbusinessalliancecom
Contact us at Membershipmediumbusinessalliancecom
Are You a Professional
The following short quiz consists of 4 questions and will tell you whether you are qualified to be a professional
The questions are NOT that difficult
1 How do you put a giraffe into a refrigerator
The correct answer is Open the refrigerator put in the giraffe and close the door
This question tests whether you tend to do simple things in an overly complicated way
2 How do you put an elephant into a refrigerator
Open the refrigerator put in the elephant and close the refrigerator Wrong Answer
Correct Answer Open the refrigerator take out the giraffe put in the elephant and close the door
This tests your ability to think through the repercussions of your previous actions
3 The Lion King is hosting an animal conference All the animals attend except one Which animal does not attend
Correct Answer The Elephant The elephant is in the refrigerator
This tests your memory
OK even if you did not answer the first three questions correctly you still have one more chance to show your true
abilities
4 There is a river you must cross But it is inhabited by crocodiles How do you manage it
Correct Answer You swim across All the crocodiles are attending the Animal Meeting
This tests whether you learn quickly from your mistakes
According to Anderson Consulting Worldwide around 90 of the professionals they tested got all questions wrong
But many preschoolers got several correct answers Anderson Consulting says this conclusively disproves the theory
that most professionals have the brains of a four year old
THIS IS NOT INVESTMENT TAX OR LEGAL ADVICE Contact your financial advisor accountant or attorney
before making important decisions in any of these areas Medium Business Alliance LLC Copyright copy 2009 Medium
Business Alliance LLC All rights reserved This material may not be reproduced distributed transmitted cached or oth-
erwise used except with the prior written permission of Medium Business Alliance LLC
Medium Business Alliance Volume I Issue V Page 10
Page 2 Medium Business Alliance Volume I Issue V
In todaylsquos economy more than ever small to medium sized
companies are forming that offer services that are not tan-
gible items but actually expertise or knowledge Of
course it is still a product that you are marketing and sell-
ing but when that product is knowledge and expertise in
the form of consulting how do you market it The answer
is actually quite simple networking
I own a commercial real estate development and consulting
business that handles large scale multi million dollar pro-
jects Letlsquos face it anyone that may need expertise in that
area is not likely to go to the
yellow pages and start calling
people based on their add or do
a search on line and see who
pops up They are likely to start
asking around amongst business
associates friends and family
whom they know and trust for
names and recommendations
They want to be sure that they
hire someone with a proven
track record who comes with
strong personal recommenda-
tions So how do you find the
people or businesses that need your services The answer
is that you donlsquot Now that may seem crazy at first but
the real answer is that if you network properly they will
find you We live in a relationship driven world and busi-
ness will come through relationships
So how do you go about this to assure that your clients
will find you The starting point is coming up with a target
profile for your customer You need to identify the gen-
Sales amp Marketing Selling a Product that isnrsquot a Product at All By Jeff Pape
eral characteristics of your ideal client and then work from
that base Once you have a profile established you begin
to systematically go through all the contacts you and your
partners and employees have developed in your profes-
sional and personal lives to see where there is overlap with
your ideal client Those relationships are where you start
Imagine throwing a stone into a calm pond The initial
splash are those personal contacts that have significant
overlap with your target client A personal reference from
someone who knows you and your business will by far give
you the best opportunity to land work
So do you stop there and wait
for all that business to come
pouring in the door Not if you
want your business to be a suc-
cess Now you attack the next
waves the ripples that continue
to form around the initial splash
Now you look for professional
organizations trade groups so-
cial networking groups that
might have overlap with your
customer Once you identify
these groups do you send a
mass email to their membership list Absolutely not At
least not yet Networking is all about that personal con-
nection You do your research and find a person or small
group of people within that organization that has influence
amongst the members and you do everything you can to
get a personal audience with them Why do you do this
Because you want to introduce yourself in a one on one or
very small group setting so that you have the best chance
of building a personal relationship or connection That
ldquoImagine throwing a stone into a
calm pond The initial splash are
those personal contacts that have
significant overlap with your target
client A personal reference from
someone who knows you and your
business will by far give you the
best opportunity to land workrdquo
Page 3 Medium Business Alliance Volume I Issue V
Legal Oral Contracts Do they carry any weight By Karen T Hartline
Believe it or not the old-fashioned handshake began as a
means for two people to assure one another that neither
was carrying a weapon Over the years this simple gesture
has evolved into a contractual symbolmdashor a guaranteemdash
for an oral agreement But in an era of phone-book sized
contracts fine print and legal battles does time-honored
handshake deal still carry any weight
The answer is yesmdashas long as you can prove it in court Its
interesting to note that many powerful people have en-
gaged in handshake deals from Bill Clinton and Newt Gin-
grich to Bill Gates and Steve Jobs But more than likely
these handshake deals were followed by large contracts
that outlined key deal points and terms If you are the type
of person who prefers informal agreements sealed by a
handshake at the very least have a few people on hand to
witness you shake on it A handshake deal is always more
binding when there are witnesses to the agreement In
other words avoid agreeing to anything in a dark alley when no one else is looking
If you did go ahead and shake on an oral contract with no one to witness it you should probably get right to work on
your half of the bargain Because putting your words into immediate action is another way to validate your oral agree-
ment If you begin acting on your agreement with the other party acting in compliance you create additional evidence
that a deal was struck Of course the only problem with this strategy is that it requires the other party to immediately
begin work on their half of the agreement
then creates the personal reference or introduction
that you need to the rest of the membership Remem-
ber a personal recommendation gives you by far the
best chance to actually land that new client
Of course you still need to get the word out to as many
people as you can so there are certainly times and
situations where a mass email is very appropriate For
example once you have accomplished that initial meet-
ing with an influential person within a group A mass
email campaign is much more effective either coming
from a member of that group or at the very least in-
cluding a recommendation quote from a member of
that group as your lead in the email A web site is also
a critical marketing tool but in a slightly different way
than if you are selling a tangible item Your web site
needs to be very professional and needs to clearly con-
vey your companylsquos experience and services offered
Then you use it as a follow up tool once you have made the
personal contact From the initial meeting you can refer
your potential client to the web site to learn more details
about who you are what youlsquove done and what you can do
for them It can be a great tool to help you close the deal
My company is working in arguably one of the toughest are-
nas in the economy today commercial real estate It is an
industry where development has virtually halted there is
little to no capital available to fund deals and banks are fore-
closing on properties left and right So what has kept us
active in the most challenging economic times our industry
has ever seen Itlsquos simple networking and relationships So
remember that every interaction with a live person even
someone who is not in your business field could be the con-
nection to your next client so treat them accordingly
Jeff Pape is President of DampA Development and Consulting Inc a full service commercial real estate development and
consulting company Jeff has worked in the commercial real estate industry for over 17 years and has written several arti-
cles that have been published in national trade publications You can learn more about DampA at their web site wwwdna-
developmentcom
Page 4 Volume I Issue V Medium Business Alliance
Technology and the Internet have
transformed business in ways that
very few people could have predicted
years ago Increasingly the internet is
being used as a cost effective solution
for many of the business operations
An internet business strategy is basi-
cally a plan that how you want to
manage your online presence for your
business
Adopting an integrated approach in
devising a successfully internet strat-
egy to benefit your business a well
planned web presence can increase
the market awareness and branding of
your business that brings you tangible
results
Just as you have a strategic plan to
grow your business you need to de-
velop an internet marketing plan that
Technology Integrated Approach to Internet Strategy for Business By Ajay Prasad
Failing witness testimony or any actions that verify your handshake deal you can always present supporting materials to
strengthen your claim For example any correspondence between two parties is admissible in court particularly if it is
sent certified mail Faxes emails letters memos and receipts all help establish your handshake deal If you are particularly
uncomfortable drawing up a contractmdashsay with a friendmdasha simple thank you letter immediately following a handshake is
always a good way to establish the terms of your agreement The recipient will not think of it as possible evidence but
simply as a polite gesture
Of course none of this is necessary if both parties are happy and everyone lives up to their word In a very simple deal
chances are slim that anyone is going to wind up having to prove anything in court But if there is a dispute that lands you
in court the burden is on you to produce evidence of the transaction
More often than not handshake deals fall apart over the details of the agreement Oral contracts are often useful for sim-
ple exchanges such as I will trade you my old air conditioner for your old refrigerator But for deals with a multitude of
finer points such as employment or lease agreements its always best to get your deal in writing For those of you who
still feel uncomfortable asking your buddy to sign a piece of paper remembermdashits not so much an issue of trust as it is of
clarity Perhaps Nixon said it best when he quipped trust everyone but cut the cards
Reprinted with permission from LegalZoomcom Inc For common legal matters please visit them at
wwwlegalzoomcom
integrates the most effective online
strategies for increasing website traf-
fic and converting visitors into buy-
ers
An internet strategy for any business
includes website planning develop-
ment marketing and management
Planning ensures that your content
targets the right type of customers
For that you have to customize your
web plan to fit your company rather
than following any well-written for-
mula Even so there are standard
components you have to follow
them such as market analysis strat-
egy any specific development plan
marketing and most importantly ex-
pense budget
1 Market research- It is a fundamen-
tal part of any business strategy This
If you are particularly uncomfortable drawing up a contractmdashsay with a friendmdash
a simple ldquothank yourdquo letter immediately following a handshake is always a good
way to establish the terms of your agreement
Page 5 Medium Business Alliance Volume I Issue V
normally includes a target market
analysis market research and a mar-
ket forecast
2 Website strategy- This includes
your mission and objective of starting
an internet business web develop-
ment and marketing strategy
3 Specific development plan- Any
web plan is measured by the result it
produces Therefore implementation
of your plan is more important than
brilliant ideas Start taking action on
the tasks that you have created during
the planning stage
4 Identify your organization goals
Every company has a set of tangible
and intangible goals and identifying
yours will help you better focus on it
and implement them in time
5 Online marketing- Getting the most
out of the online marketing channels
requires specialized techniques like
search engine optimization pay per
click marketing social media optimiza-
tion e-mail marketing and many more
to reach out to your customers
6 Expense budget- This includes de-
tails to track expenses month by
month and follow up with your plan vs
actual analysis
7 Returns (ROI) - Business is driven by
ROI and it is only natural that the
online marketing efforts need to lead
into a positive ROI determined by the
key performance indicators
8 Survey- Get feedback from website
visitors regarding what bought them to
you or how their experience has been
on your website
The Internet presents a wide range of
marketing and communication oppor-
tunities for every business Making
those opportunities a reality requires
careful planning thoughtful assessment
and directed focus
Web design is very important to
search engines Messy over-
complicated or bad code give the
search engine spiders a hard time
crawling your pages If the spiders
crawlers cant crawl your pages prop-
erly and retrieve all the data they need
the search engines cant rank them
properly
There are more effective methods of
attracting your customers to your
website than search engine listings
PPC is great for targeting potential
leads in every phase of the buying
cycle and it is measurable Studies
show that regular contact with cus-
tomers helps to maintain your rela-
tionship with them and generates
referral business
Many companies consider web ad-
vertising a viable technique to benefit
your online business The ability to
target has been one of the main
things that have attracted people to
the internet for advertising You can
target big to very small websites that
give real vertical information and at
the same time it is also interactive
The scope for business on the Inter-
net is fantastic-there is so much po-
tential there and all you have to do is
have an integrated strategy or plan
to make it happen
Ajay Prasad is founder of Global Marketing Resources LLC that runs a number of ecommerce websites under its um-
brella Ajays functional expertise includes website strategy marketing management business development consumer re-
search market analysis and strategic planning GMR Web Team is an Orange County Website Design company that aims
to develop an overall Internet strategy for your business
Web design is very
important to search
engineshellipIf the
spiderscrawlers cant
crawl your pages
properly and retrieve all
the data they need the
search engines cant
rank them properly
Page 6 Volume I Issue V Medium Business Alliance
Simply put asset based lending is a loan that is secured in exchange for the assets of the company like accounts receiv-
able inventory and other balance sheet asset items as collateral Also known as asset based financing itlsquos a straightfor-
ward concept which emphasized on matching the companylsquos assets to the borrowing needs Most of the traditional
bank loans are based on the balance sheet ratios and the cash flow predictions
The assets of the organization are the major factors on which the loan is dependent in asset based financing This leads
to greater borrowing capacity than the traditional banking approach The major advantage of such loans is the availabil-
ity of cash for the routine requirements of the company The collateral would generally be the accounts receivables
inventories machinery and equipment real estate and other tangible assets
Benefits of Asset Based Lending
Low Rate of Interest Compared to the unsecured loans the rate of interest of such asset based finance is much lower
This is because the lenderlsquos money is safe with the availability of the collateral item on non-repayment of the loan
Profit and Loss and Credit History One major benefit of the asset based financing is that the asset value is of relevance
to the financing company and not your credit history or the cash flow status
Quick Finance The financing organization lends the amount required quickly with least hassles Thus when there is an
urgent need for finance to capitalize on a great business opportunity it can be accessed with the help of the asset
pledged It is thus useful to meet the seasonal need rapid growth acquisitions etc
Commitment The asset-based loans have flexible repayments plans Short-term asset based loans get paid off quickly
from the account receivable and the inventory
Many companies provide customized lending depending upon the needs of the organizations Some companies also
have expertise in specific industries that is beneficial to understand the finance needs of the company
Financial Discipline The borrowing availability is dependent on the advance rates on the accounts receivables This
makes the borrowers collect the receivable amount in a more disciplined manner Moreover as only the completed
products are eligible for financing the company improves on efficiency in the production process
Few Financial Covenants The asset based loans require only a few covenants like debt service coverage and net worth
as they are based on the collaterals
In tough financial conditions the lender shows the willingness to give more time to the borrower as he has the collat-
eral to protect the loaned amount
Industry Expertise The financing companies have expertise in dealing with the retailers manufacturers distributors and
importers within industries dealing the automotive parts apparel consumer products food and beverages steel and
transportation Thus these companies extend help to nearly all businesses
The asset based lending is useful when you have a requirement for working capital and funds for new acquisitions and
major capital expenditures It also fills in for the funds required restructuring the business and to take care of other
finance needs
Financial The Benefits of Asset Based Lending
Accounts Receivable Financing can help your business grow and by solving cash flow problems The Internal Revenue
Service (IRS) has a guide on what defines an Account Receivable Financing Company To receive a quick quote visit the
website at wwwarfactorquotecom
Human Resources
Workplace Cleanliness Tips on Combating Germs in the Office By Peter Sheldon
Page 7 Medium Business Alliance Volume I Issue V
The winter may be coming to a close but that doesnlsquot
mean companies should stop paying attention to proper
workplace cleanliness With viruses like H1N1 still show-
ing up in public environments ndash plus $150 billion in lost
company productivity each year from illnesses such as
influenza and the common cold ndash there is a need to im-
prove infection prevention practices in the office or
workplace environment
Fortunately commercial cleaning has made great strides
and innovative health-based cleaning systems now address
the need for cleaner healthier facilities
Judging a facilitylsquos level of cleanliness by appearance alone
is not an effective measure of clean A true health-
focused cleaning program offers a comprehensive system
that provides cleaning on the unseen or microbial level
To accomplish this health-based cleaning services utilize
advanced technology such as microfiber cleaning cloths
and flat mops hospital-grade disinfectants no-touchlsquo rest-
room cleaning and multi-filtration vacuums
The first step in any effective facility cleaning program
must be the use of proper disinfectant chemistry to kill
bacteria and viruses that can cause illness But what hap-
pens to those germs once they have been killed
With traditional cleaning methods very few of the dead
germ cells are actually removed Instead the standard
cleaning materials used by most custodial services simply
spread the germs around cross-contaminating other sur-
faces and leaving behind the dead cells that may serve as
cleaning cloths and mop pads that have tiny fibers that
make the fabric super absorbent in order to trap those
dead germs and remove them from the surface
Health-based cleaning services are also employing color-
coded systems for their cleaning cloths and flat mops to
further avoid cross-contamination For example instead
of using one cloth for both the bathroom and cafeteria
they use a different color cloth in each room ndash thereby
ensuring that soil and matter from one room will be con-
tained and germs from one area will not be spread to
another part of the building
Tips to Employ a True Health-Based Cleaning
Program
Several elements are crucial to ensuring a health-based
cleaning program is successful They include
Implementing a cleaning system that can be measured
to remove soils and germs through scientific
tools rather than judging by appearance alone
Using EPA-registered hospital-grade disinfectant
chemistry
Cleaning with multi-filtration high efficiency vacuum-
ing technology to improve indoor air quality HEPA vac-
uum systems are 9997 percent efficient at filtering dirt
dust and allergen particles 03 microns or larger
Using color-coded microfiber cleaning cloths that
reduce cross-contamination and are 99 percent more
effective at removing illness-causing germs and soil
ldquoThe first step in any effective facility
cleaning program must be the use of
proper disinfectant chemistry to kill
bacteria and viruses that can cause
illnessrdquo
Page 8 Volume I Issue V
Employing touch-free spray and vacuum system tech-
nologies In areas tolerant of wet cleaning processes this
technology provides the most complete disinfection and
soil removal of any cleaning application
Deploying no-dip flat-mopping systems that use only
clean solution for increased soil removal and reduced
cross-contamination
By simply having occupants ndash all workspaces pose a risk of
spreading infection Businesses who wish to maintain
Medium Business Alliance
spotless indoor environments while meeting the larger
goal of employee well-being should review the cleaning
methods used by their current facilities manager or clean-
ing services to be sure they include the benefits of health-
based cleaning innovations
Health-based cleaning programs provide cleaner healthier
environments ndash your employees will experience fewer
sick days you will have lower associated healthcare costs
and your business will benefit from better productivity
and higher employee morale
Peter J Sheldon Sr CBSE brings over 18 years of experience in the Building Services Contracting industry to his posi-
tion as Vice President of Operations of Coverall Health-Based Cleaning SystemSM Sheldon works closely with the
Coverall sales and operations teams to spearhead initiatives that further the Companylsquos strategic objectives and help the
Company develop the most efficient and innovative cleaning processes available Sheldon is among the elite group of build-
ing service professionals to qualify for the Certified Building Service Executive designation
How To Putting a Value on Your Business By Don DuLong
Starting a business was a very exciting time in my life The wonder of what was to come Could I build and grow a viable
business What would it be like to work for myself instead of someone else Well 15 years later with the help of nu-
merous people I have accomplished the goals I set for the company So what now Sure like other business we con-
stantly are developing new services and representing new products but what will I do with this business when I am ready
to retire Can I sell it Better yet what is it worth
Sure every business owner is trying to constantly improve the value of the business but what is the business really worth
Experts will tell you that putting a value on your business is not something you should do yourself You are emotionally
attached to the business and that can prevent you from taking on objective view You can determine a ballpark value by
applying one or more different methods of business valuation I combined several different methods in order to place a
value on my company
When I started to place a value on the business the first thing I looked at was the companylsquos financial statements Just by
subtracting the businesses liabilities from its assets the book value of the business can be determined Most balance sheets
will do this for you The information on the balance sheet needs to current in order to get an accurate book value This
valuation does not take in to consideration the non tangible assets of the business
The rule of thumb method is a good way to see what your business is worth based on the value of similar businesses in
your companylsquos specific industry This method will give you a value that reflects an average value for businesses that have
sold or have been evaluated by professional firms The only drawback I found when trying to value my business using this
method was the lack of information specific to my industry The industry we work in does not have a high sell rate and
has a limited number of businesses compared to other industries I still applied the information gathered in order to get
an idea of what other business have sold for
When doing the research to see what methods businesses were using to determine their valuation I found that quite a
few businesses are applying the earnings capitalization method This method determines a businesslsquos value by comparing
the initial investment to the risk associated to the rate of return on that investment The rate of return on my business
varied from year to year and applying this method allowed me to set a value that would allow a purchaser to have a simi-
lar rate of return on the business Something was still missing though
Page 9 Medium Business Alliance Volume I Issue V
Merchant Gateway LLC is an employee-owned company We are an Independent Sales Organization (ISO) and Merchant
Service Provider (MSP) that is registered with VISA amp MasterCard to provide Merchant Services We have leveraged the
global capabilities of RBS WorldPay which is the third largest payment processor in the World ndash with the local knowledge
of our Agents to serve your business needs
Our business model is simple ndash Help Independent Merchants
1 Save Merchants $$$$
Introduce ―Cost-Plus Interchange Pricing to Small amp Medium Businesses The ―Cost-Plus pricing model was once only reserved to the ―Wal-Marts and larger businesses with
great transactional volume This will help the independent business owner compete with franchises and
larger businesses allowing them to keep more of their profits
2 Partner amp Educate Business Owners about Credit Card Processing Help business owners understand the lasted PCI compliance issues and provide to them easy to under-
stand information concerning their account in addition to getting them the best Interchange category
rate
3 ―Rate Lock for Life Program Although no one can affect the VISA and MasterCard Interchange costs we will lock in our Processing
Fees for the life of your account
4 $500 Best Rate Guarantee Challenge Simply put ndash If we cannot beat your current rate we will pay you $500 We know your time is impor-
tant and you have our commitment that we will save you money
5 Merchant Gateway Agent Program Merchant Gateway is always looking for local talented and motivated individuals to become part of our
growing movement Share in the best agent program in the industry with lifetime residual payments and
a dedicated sales team to insure your success
To take the $500 Best Rate Guarantee Challenge please fax your latest merchant services statement to (727) 231-8384
or call Phil DeConti (727) 644-1338 to discuss or answer any questions you may have Or visit them online at
wwwmerchantgatewaycom or email Phil DeConti at pdecontimerchantgatewaycom
Member Spotlight
Merchant Gateway ndash Americas Payment Choice
The most difficult part of placing a value on my business was determining what the intangible assets were worth How do
I place a value on the brand name and customer base we have developed for over 15 years How do I place a value on
the experience of the employees of the business Yes I said employees Itlsquos extremely difficult to find experienced and
dedicated employees in our industry and I felt like they added value to the business This is where the emotional part of
being a business owner comes in to play I canlsquot tell you what the intangible value of your business is because every busi-
ness is different in its own unique way So good luck in determining the value of your business and I suggest you start
taking a look at this long before you decide to sell
Don DuLong is the owner of MWD Inc which services and repairs all medium and heavy duty trucks trailers and buses When it
comes to anything in truck and heavy equipment service MWD is respected for providing quality work at reasonable prices For infor-
mation on MWD Inc contact Don DuLong at 478-742-1500 or visit wwwmwdincnet
Comic Corner
New Member Listings
wwwmediumbusinessalliancecom
Contact us at Membershipmediumbusinessalliancecom
Are You a Professional
The following short quiz consists of 4 questions and will tell you whether you are qualified to be a professional
The questions are NOT that difficult
1 How do you put a giraffe into a refrigerator
The correct answer is Open the refrigerator put in the giraffe and close the door
This question tests whether you tend to do simple things in an overly complicated way
2 How do you put an elephant into a refrigerator
Open the refrigerator put in the elephant and close the refrigerator Wrong Answer
Correct Answer Open the refrigerator take out the giraffe put in the elephant and close the door
This tests your ability to think through the repercussions of your previous actions
3 The Lion King is hosting an animal conference All the animals attend except one Which animal does not attend
Correct Answer The Elephant The elephant is in the refrigerator
This tests your memory
OK even if you did not answer the first three questions correctly you still have one more chance to show your true
abilities
4 There is a river you must cross But it is inhabited by crocodiles How do you manage it
Correct Answer You swim across All the crocodiles are attending the Animal Meeting
This tests whether you learn quickly from your mistakes
According to Anderson Consulting Worldwide around 90 of the professionals they tested got all questions wrong
But many preschoolers got several correct answers Anderson Consulting says this conclusively disproves the theory
that most professionals have the brains of a four year old
THIS IS NOT INVESTMENT TAX OR LEGAL ADVICE Contact your financial advisor accountant or attorney
before making important decisions in any of these areas Medium Business Alliance LLC Copyright copy 2009 Medium
Business Alliance LLC All rights reserved This material may not be reproduced distributed transmitted cached or oth-
erwise used except with the prior written permission of Medium Business Alliance LLC
Medium Business Alliance Volume I Issue V Page 10
Page 3 Medium Business Alliance Volume I Issue V
Legal Oral Contracts Do they carry any weight By Karen T Hartline
Believe it or not the old-fashioned handshake began as a
means for two people to assure one another that neither
was carrying a weapon Over the years this simple gesture
has evolved into a contractual symbolmdashor a guaranteemdash
for an oral agreement But in an era of phone-book sized
contracts fine print and legal battles does time-honored
handshake deal still carry any weight
The answer is yesmdashas long as you can prove it in court Its
interesting to note that many powerful people have en-
gaged in handshake deals from Bill Clinton and Newt Gin-
grich to Bill Gates and Steve Jobs But more than likely
these handshake deals were followed by large contracts
that outlined key deal points and terms If you are the type
of person who prefers informal agreements sealed by a
handshake at the very least have a few people on hand to
witness you shake on it A handshake deal is always more
binding when there are witnesses to the agreement In
other words avoid agreeing to anything in a dark alley when no one else is looking
If you did go ahead and shake on an oral contract with no one to witness it you should probably get right to work on
your half of the bargain Because putting your words into immediate action is another way to validate your oral agree-
ment If you begin acting on your agreement with the other party acting in compliance you create additional evidence
that a deal was struck Of course the only problem with this strategy is that it requires the other party to immediately
begin work on their half of the agreement
then creates the personal reference or introduction
that you need to the rest of the membership Remem-
ber a personal recommendation gives you by far the
best chance to actually land that new client
Of course you still need to get the word out to as many
people as you can so there are certainly times and
situations where a mass email is very appropriate For
example once you have accomplished that initial meet-
ing with an influential person within a group A mass
email campaign is much more effective either coming
from a member of that group or at the very least in-
cluding a recommendation quote from a member of
that group as your lead in the email A web site is also
a critical marketing tool but in a slightly different way
than if you are selling a tangible item Your web site
needs to be very professional and needs to clearly con-
vey your companylsquos experience and services offered
Then you use it as a follow up tool once you have made the
personal contact From the initial meeting you can refer
your potential client to the web site to learn more details
about who you are what youlsquove done and what you can do
for them It can be a great tool to help you close the deal
My company is working in arguably one of the toughest are-
nas in the economy today commercial real estate It is an
industry where development has virtually halted there is
little to no capital available to fund deals and banks are fore-
closing on properties left and right So what has kept us
active in the most challenging economic times our industry
has ever seen Itlsquos simple networking and relationships So
remember that every interaction with a live person even
someone who is not in your business field could be the con-
nection to your next client so treat them accordingly
Jeff Pape is President of DampA Development and Consulting Inc a full service commercial real estate development and
consulting company Jeff has worked in the commercial real estate industry for over 17 years and has written several arti-
cles that have been published in national trade publications You can learn more about DampA at their web site wwwdna-
developmentcom
Page 4 Volume I Issue V Medium Business Alliance
Technology and the Internet have
transformed business in ways that
very few people could have predicted
years ago Increasingly the internet is
being used as a cost effective solution
for many of the business operations
An internet business strategy is basi-
cally a plan that how you want to
manage your online presence for your
business
Adopting an integrated approach in
devising a successfully internet strat-
egy to benefit your business a well
planned web presence can increase
the market awareness and branding of
your business that brings you tangible
results
Just as you have a strategic plan to
grow your business you need to de-
velop an internet marketing plan that
Technology Integrated Approach to Internet Strategy for Business By Ajay Prasad
Failing witness testimony or any actions that verify your handshake deal you can always present supporting materials to
strengthen your claim For example any correspondence between two parties is admissible in court particularly if it is
sent certified mail Faxes emails letters memos and receipts all help establish your handshake deal If you are particularly
uncomfortable drawing up a contractmdashsay with a friendmdasha simple thank you letter immediately following a handshake is
always a good way to establish the terms of your agreement The recipient will not think of it as possible evidence but
simply as a polite gesture
Of course none of this is necessary if both parties are happy and everyone lives up to their word In a very simple deal
chances are slim that anyone is going to wind up having to prove anything in court But if there is a dispute that lands you
in court the burden is on you to produce evidence of the transaction
More often than not handshake deals fall apart over the details of the agreement Oral contracts are often useful for sim-
ple exchanges such as I will trade you my old air conditioner for your old refrigerator But for deals with a multitude of
finer points such as employment or lease agreements its always best to get your deal in writing For those of you who
still feel uncomfortable asking your buddy to sign a piece of paper remembermdashits not so much an issue of trust as it is of
clarity Perhaps Nixon said it best when he quipped trust everyone but cut the cards
Reprinted with permission from LegalZoomcom Inc For common legal matters please visit them at
wwwlegalzoomcom
integrates the most effective online
strategies for increasing website traf-
fic and converting visitors into buy-
ers
An internet strategy for any business
includes website planning develop-
ment marketing and management
Planning ensures that your content
targets the right type of customers
For that you have to customize your
web plan to fit your company rather
than following any well-written for-
mula Even so there are standard
components you have to follow
them such as market analysis strat-
egy any specific development plan
marketing and most importantly ex-
pense budget
1 Market research- It is a fundamen-
tal part of any business strategy This
If you are particularly uncomfortable drawing up a contractmdashsay with a friendmdash
a simple ldquothank yourdquo letter immediately following a handshake is always a good
way to establish the terms of your agreement
Page 5 Medium Business Alliance Volume I Issue V
normally includes a target market
analysis market research and a mar-
ket forecast
2 Website strategy- This includes
your mission and objective of starting
an internet business web develop-
ment and marketing strategy
3 Specific development plan- Any
web plan is measured by the result it
produces Therefore implementation
of your plan is more important than
brilliant ideas Start taking action on
the tasks that you have created during
the planning stage
4 Identify your organization goals
Every company has a set of tangible
and intangible goals and identifying
yours will help you better focus on it
and implement them in time
5 Online marketing- Getting the most
out of the online marketing channels
requires specialized techniques like
search engine optimization pay per
click marketing social media optimiza-
tion e-mail marketing and many more
to reach out to your customers
6 Expense budget- This includes de-
tails to track expenses month by
month and follow up with your plan vs
actual analysis
7 Returns (ROI) - Business is driven by
ROI and it is only natural that the
online marketing efforts need to lead
into a positive ROI determined by the
key performance indicators
8 Survey- Get feedback from website
visitors regarding what bought them to
you or how their experience has been
on your website
The Internet presents a wide range of
marketing and communication oppor-
tunities for every business Making
those opportunities a reality requires
careful planning thoughtful assessment
and directed focus
Web design is very important to
search engines Messy over-
complicated or bad code give the
search engine spiders a hard time
crawling your pages If the spiders
crawlers cant crawl your pages prop-
erly and retrieve all the data they need
the search engines cant rank them
properly
There are more effective methods of
attracting your customers to your
website than search engine listings
PPC is great for targeting potential
leads in every phase of the buying
cycle and it is measurable Studies
show that regular contact with cus-
tomers helps to maintain your rela-
tionship with them and generates
referral business
Many companies consider web ad-
vertising a viable technique to benefit
your online business The ability to
target has been one of the main
things that have attracted people to
the internet for advertising You can
target big to very small websites that
give real vertical information and at
the same time it is also interactive
The scope for business on the Inter-
net is fantastic-there is so much po-
tential there and all you have to do is
have an integrated strategy or plan
to make it happen
Ajay Prasad is founder of Global Marketing Resources LLC that runs a number of ecommerce websites under its um-
brella Ajays functional expertise includes website strategy marketing management business development consumer re-
search market analysis and strategic planning GMR Web Team is an Orange County Website Design company that aims
to develop an overall Internet strategy for your business
Web design is very
important to search
engineshellipIf the
spiderscrawlers cant
crawl your pages
properly and retrieve all
the data they need the
search engines cant
rank them properly
Page 6 Volume I Issue V Medium Business Alliance
Simply put asset based lending is a loan that is secured in exchange for the assets of the company like accounts receiv-
able inventory and other balance sheet asset items as collateral Also known as asset based financing itlsquos a straightfor-
ward concept which emphasized on matching the companylsquos assets to the borrowing needs Most of the traditional
bank loans are based on the balance sheet ratios and the cash flow predictions
The assets of the organization are the major factors on which the loan is dependent in asset based financing This leads
to greater borrowing capacity than the traditional banking approach The major advantage of such loans is the availabil-
ity of cash for the routine requirements of the company The collateral would generally be the accounts receivables
inventories machinery and equipment real estate and other tangible assets
Benefits of Asset Based Lending
Low Rate of Interest Compared to the unsecured loans the rate of interest of such asset based finance is much lower
This is because the lenderlsquos money is safe with the availability of the collateral item on non-repayment of the loan
Profit and Loss and Credit History One major benefit of the asset based financing is that the asset value is of relevance
to the financing company and not your credit history or the cash flow status
Quick Finance The financing organization lends the amount required quickly with least hassles Thus when there is an
urgent need for finance to capitalize on a great business opportunity it can be accessed with the help of the asset
pledged It is thus useful to meet the seasonal need rapid growth acquisitions etc
Commitment The asset-based loans have flexible repayments plans Short-term asset based loans get paid off quickly
from the account receivable and the inventory
Many companies provide customized lending depending upon the needs of the organizations Some companies also
have expertise in specific industries that is beneficial to understand the finance needs of the company
Financial Discipline The borrowing availability is dependent on the advance rates on the accounts receivables This
makes the borrowers collect the receivable amount in a more disciplined manner Moreover as only the completed
products are eligible for financing the company improves on efficiency in the production process
Few Financial Covenants The asset based loans require only a few covenants like debt service coverage and net worth
as they are based on the collaterals
In tough financial conditions the lender shows the willingness to give more time to the borrower as he has the collat-
eral to protect the loaned amount
Industry Expertise The financing companies have expertise in dealing with the retailers manufacturers distributors and
importers within industries dealing the automotive parts apparel consumer products food and beverages steel and
transportation Thus these companies extend help to nearly all businesses
The asset based lending is useful when you have a requirement for working capital and funds for new acquisitions and
major capital expenditures It also fills in for the funds required restructuring the business and to take care of other
finance needs
Financial The Benefits of Asset Based Lending
Accounts Receivable Financing can help your business grow and by solving cash flow problems The Internal Revenue
Service (IRS) has a guide on what defines an Account Receivable Financing Company To receive a quick quote visit the
website at wwwarfactorquotecom
Human Resources
Workplace Cleanliness Tips on Combating Germs in the Office By Peter Sheldon
Page 7 Medium Business Alliance Volume I Issue V
The winter may be coming to a close but that doesnlsquot
mean companies should stop paying attention to proper
workplace cleanliness With viruses like H1N1 still show-
ing up in public environments ndash plus $150 billion in lost
company productivity each year from illnesses such as
influenza and the common cold ndash there is a need to im-
prove infection prevention practices in the office or
workplace environment
Fortunately commercial cleaning has made great strides
and innovative health-based cleaning systems now address
the need for cleaner healthier facilities
Judging a facilitylsquos level of cleanliness by appearance alone
is not an effective measure of clean A true health-
focused cleaning program offers a comprehensive system
that provides cleaning on the unseen or microbial level
To accomplish this health-based cleaning services utilize
advanced technology such as microfiber cleaning cloths
and flat mops hospital-grade disinfectants no-touchlsquo rest-
room cleaning and multi-filtration vacuums
The first step in any effective facility cleaning program
must be the use of proper disinfectant chemistry to kill
bacteria and viruses that can cause illness But what hap-
pens to those germs once they have been killed
With traditional cleaning methods very few of the dead
germ cells are actually removed Instead the standard
cleaning materials used by most custodial services simply
spread the germs around cross-contaminating other sur-
faces and leaving behind the dead cells that may serve as
cleaning cloths and mop pads that have tiny fibers that
make the fabric super absorbent in order to trap those
dead germs and remove them from the surface
Health-based cleaning services are also employing color-
coded systems for their cleaning cloths and flat mops to
further avoid cross-contamination For example instead
of using one cloth for both the bathroom and cafeteria
they use a different color cloth in each room ndash thereby
ensuring that soil and matter from one room will be con-
tained and germs from one area will not be spread to
another part of the building
Tips to Employ a True Health-Based Cleaning
Program
Several elements are crucial to ensuring a health-based
cleaning program is successful They include
Implementing a cleaning system that can be measured
to remove soils and germs through scientific
tools rather than judging by appearance alone
Using EPA-registered hospital-grade disinfectant
chemistry
Cleaning with multi-filtration high efficiency vacuum-
ing technology to improve indoor air quality HEPA vac-
uum systems are 9997 percent efficient at filtering dirt
dust and allergen particles 03 microns or larger
Using color-coded microfiber cleaning cloths that
reduce cross-contamination and are 99 percent more
effective at removing illness-causing germs and soil
ldquoThe first step in any effective facility
cleaning program must be the use of
proper disinfectant chemistry to kill
bacteria and viruses that can cause
illnessrdquo
Page 8 Volume I Issue V
Employing touch-free spray and vacuum system tech-
nologies In areas tolerant of wet cleaning processes this
technology provides the most complete disinfection and
soil removal of any cleaning application
Deploying no-dip flat-mopping systems that use only
clean solution for increased soil removal and reduced
cross-contamination
By simply having occupants ndash all workspaces pose a risk of
spreading infection Businesses who wish to maintain
Medium Business Alliance
spotless indoor environments while meeting the larger
goal of employee well-being should review the cleaning
methods used by their current facilities manager or clean-
ing services to be sure they include the benefits of health-
based cleaning innovations
Health-based cleaning programs provide cleaner healthier
environments ndash your employees will experience fewer
sick days you will have lower associated healthcare costs
and your business will benefit from better productivity
and higher employee morale
Peter J Sheldon Sr CBSE brings over 18 years of experience in the Building Services Contracting industry to his posi-
tion as Vice President of Operations of Coverall Health-Based Cleaning SystemSM Sheldon works closely with the
Coverall sales and operations teams to spearhead initiatives that further the Companylsquos strategic objectives and help the
Company develop the most efficient and innovative cleaning processes available Sheldon is among the elite group of build-
ing service professionals to qualify for the Certified Building Service Executive designation
How To Putting a Value on Your Business By Don DuLong
Starting a business was a very exciting time in my life The wonder of what was to come Could I build and grow a viable
business What would it be like to work for myself instead of someone else Well 15 years later with the help of nu-
merous people I have accomplished the goals I set for the company So what now Sure like other business we con-
stantly are developing new services and representing new products but what will I do with this business when I am ready
to retire Can I sell it Better yet what is it worth
Sure every business owner is trying to constantly improve the value of the business but what is the business really worth
Experts will tell you that putting a value on your business is not something you should do yourself You are emotionally
attached to the business and that can prevent you from taking on objective view You can determine a ballpark value by
applying one or more different methods of business valuation I combined several different methods in order to place a
value on my company
When I started to place a value on the business the first thing I looked at was the companylsquos financial statements Just by
subtracting the businesses liabilities from its assets the book value of the business can be determined Most balance sheets
will do this for you The information on the balance sheet needs to current in order to get an accurate book value This
valuation does not take in to consideration the non tangible assets of the business
The rule of thumb method is a good way to see what your business is worth based on the value of similar businesses in
your companylsquos specific industry This method will give you a value that reflects an average value for businesses that have
sold or have been evaluated by professional firms The only drawback I found when trying to value my business using this
method was the lack of information specific to my industry The industry we work in does not have a high sell rate and
has a limited number of businesses compared to other industries I still applied the information gathered in order to get
an idea of what other business have sold for
When doing the research to see what methods businesses were using to determine their valuation I found that quite a
few businesses are applying the earnings capitalization method This method determines a businesslsquos value by comparing
the initial investment to the risk associated to the rate of return on that investment The rate of return on my business
varied from year to year and applying this method allowed me to set a value that would allow a purchaser to have a simi-
lar rate of return on the business Something was still missing though
Page 9 Medium Business Alliance Volume I Issue V
Merchant Gateway LLC is an employee-owned company We are an Independent Sales Organization (ISO) and Merchant
Service Provider (MSP) that is registered with VISA amp MasterCard to provide Merchant Services We have leveraged the
global capabilities of RBS WorldPay which is the third largest payment processor in the World ndash with the local knowledge
of our Agents to serve your business needs
Our business model is simple ndash Help Independent Merchants
1 Save Merchants $$$$
Introduce ―Cost-Plus Interchange Pricing to Small amp Medium Businesses The ―Cost-Plus pricing model was once only reserved to the ―Wal-Marts and larger businesses with
great transactional volume This will help the independent business owner compete with franchises and
larger businesses allowing them to keep more of their profits
2 Partner amp Educate Business Owners about Credit Card Processing Help business owners understand the lasted PCI compliance issues and provide to them easy to under-
stand information concerning their account in addition to getting them the best Interchange category
rate
3 ―Rate Lock for Life Program Although no one can affect the VISA and MasterCard Interchange costs we will lock in our Processing
Fees for the life of your account
4 $500 Best Rate Guarantee Challenge Simply put ndash If we cannot beat your current rate we will pay you $500 We know your time is impor-
tant and you have our commitment that we will save you money
5 Merchant Gateway Agent Program Merchant Gateway is always looking for local talented and motivated individuals to become part of our
growing movement Share in the best agent program in the industry with lifetime residual payments and
a dedicated sales team to insure your success
To take the $500 Best Rate Guarantee Challenge please fax your latest merchant services statement to (727) 231-8384
or call Phil DeConti (727) 644-1338 to discuss or answer any questions you may have Or visit them online at
wwwmerchantgatewaycom or email Phil DeConti at pdecontimerchantgatewaycom
Member Spotlight
Merchant Gateway ndash Americas Payment Choice
The most difficult part of placing a value on my business was determining what the intangible assets were worth How do
I place a value on the brand name and customer base we have developed for over 15 years How do I place a value on
the experience of the employees of the business Yes I said employees Itlsquos extremely difficult to find experienced and
dedicated employees in our industry and I felt like they added value to the business This is where the emotional part of
being a business owner comes in to play I canlsquot tell you what the intangible value of your business is because every busi-
ness is different in its own unique way So good luck in determining the value of your business and I suggest you start
taking a look at this long before you decide to sell
Don DuLong is the owner of MWD Inc which services and repairs all medium and heavy duty trucks trailers and buses When it
comes to anything in truck and heavy equipment service MWD is respected for providing quality work at reasonable prices For infor-
mation on MWD Inc contact Don DuLong at 478-742-1500 or visit wwwmwdincnet
Comic Corner
New Member Listings
wwwmediumbusinessalliancecom
Contact us at Membershipmediumbusinessalliancecom
Are You a Professional
The following short quiz consists of 4 questions and will tell you whether you are qualified to be a professional
The questions are NOT that difficult
1 How do you put a giraffe into a refrigerator
The correct answer is Open the refrigerator put in the giraffe and close the door
This question tests whether you tend to do simple things in an overly complicated way
2 How do you put an elephant into a refrigerator
Open the refrigerator put in the elephant and close the refrigerator Wrong Answer
Correct Answer Open the refrigerator take out the giraffe put in the elephant and close the door
This tests your ability to think through the repercussions of your previous actions
3 The Lion King is hosting an animal conference All the animals attend except one Which animal does not attend
Correct Answer The Elephant The elephant is in the refrigerator
This tests your memory
OK even if you did not answer the first three questions correctly you still have one more chance to show your true
abilities
4 There is a river you must cross But it is inhabited by crocodiles How do you manage it
Correct Answer You swim across All the crocodiles are attending the Animal Meeting
This tests whether you learn quickly from your mistakes
According to Anderson Consulting Worldwide around 90 of the professionals they tested got all questions wrong
But many preschoolers got several correct answers Anderson Consulting says this conclusively disproves the theory
that most professionals have the brains of a four year old
THIS IS NOT INVESTMENT TAX OR LEGAL ADVICE Contact your financial advisor accountant or attorney
before making important decisions in any of these areas Medium Business Alliance LLC Copyright copy 2009 Medium
Business Alliance LLC All rights reserved This material may not be reproduced distributed transmitted cached or oth-
erwise used except with the prior written permission of Medium Business Alliance LLC
Medium Business Alliance Volume I Issue V Page 10
Page 4 Volume I Issue V Medium Business Alliance
Technology and the Internet have
transformed business in ways that
very few people could have predicted
years ago Increasingly the internet is
being used as a cost effective solution
for many of the business operations
An internet business strategy is basi-
cally a plan that how you want to
manage your online presence for your
business
Adopting an integrated approach in
devising a successfully internet strat-
egy to benefit your business a well
planned web presence can increase
the market awareness and branding of
your business that brings you tangible
results
Just as you have a strategic plan to
grow your business you need to de-
velop an internet marketing plan that
Technology Integrated Approach to Internet Strategy for Business By Ajay Prasad
Failing witness testimony or any actions that verify your handshake deal you can always present supporting materials to
strengthen your claim For example any correspondence between two parties is admissible in court particularly if it is
sent certified mail Faxes emails letters memos and receipts all help establish your handshake deal If you are particularly
uncomfortable drawing up a contractmdashsay with a friendmdasha simple thank you letter immediately following a handshake is
always a good way to establish the terms of your agreement The recipient will not think of it as possible evidence but
simply as a polite gesture
Of course none of this is necessary if both parties are happy and everyone lives up to their word In a very simple deal
chances are slim that anyone is going to wind up having to prove anything in court But if there is a dispute that lands you
in court the burden is on you to produce evidence of the transaction
More often than not handshake deals fall apart over the details of the agreement Oral contracts are often useful for sim-
ple exchanges such as I will trade you my old air conditioner for your old refrigerator But for deals with a multitude of
finer points such as employment or lease agreements its always best to get your deal in writing For those of you who
still feel uncomfortable asking your buddy to sign a piece of paper remembermdashits not so much an issue of trust as it is of
clarity Perhaps Nixon said it best when he quipped trust everyone but cut the cards
Reprinted with permission from LegalZoomcom Inc For common legal matters please visit them at
wwwlegalzoomcom
integrates the most effective online
strategies for increasing website traf-
fic and converting visitors into buy-
ers
An internet strategy for any business
includes website planning develop-
ment marketing and management
Planning ensures that your content
targets the right type of customers
For that you have to customize your
web plan to fit your company rather
than following any well-written for-
mula Even so there are standard
components you have to follow
them such as market analysis strat-
egy any specific development plan
marketing and most importantly ex-
pense budget
1 Market research- It is a fundamen-
tal part of any business strategy This
If you are particularly uncomfortable drawing up a contractmdashsay with a friendmdash
a simple ldquothank yourdquo letter immediately following a handshake is always a good
way to establish the terms of your agreement
Page 5 Medium Business Alliance Volume I Issue V
normally includes a target market
analysis market research and a mar-
ket forecast
2 Website strategy- This includes
your mission and objective of starting
an internet business web develop-
ment and marketing strategy
3 Specific development plan- Any
web plan is measured by the result it
produces Therefore implementation
of your plan is more important than
brilliant ideas Start taking action on
the tasks that you have created during
the planning stage
4 Identify your organization goals
Every company has a set of tangible
and intangible goals and identifying
yours will help you better focus on it
and implement them in time
5 Online marketing- Getting the most
out of the online marketing channels
requires specialized techniques like
search engine optimization pay per
click marketing social media optimiza-
tion e-mail marketing and many more
to reach out to your customers
6 Expense budget- This includes de-
tails to track expenses month by
month and follow up with your plan vs
actual analysis
7 Returns (ROI) - Business is driven by
ROI and it is only natural that the
online marketing efforts need to lead
into a positive ROI determined by the
key performance indicators
8 Survey- Get feedback from website
visitors regarding what bought them to
you or how their experience has been
on your website
The Internet presents a wide range of
marketing and communication oppor-
tunities for every business Making
those opportunities a reality requires
careful planning thoughtful assessment
and directed focus
Web design is very important to
search engines Messy over-
complicated or bad code give the
search engine spiders a hard time
crawling your pages If the spiders
crawlers cant crawl your pages prop-
erly and retrieve all the data they need
the search engines cant rank them
properly
There are more effective methods of
attracting your customers to your
website than search engine listings
PPC is great for targeting potential
leads in every phase of the buying
cycle and it is measurable Studies
show that regular contact with cus-
tomers helps to maintain your rela-
tionship with them and generates
referral business
Many companies consider web ad-
vertising a viable technique to benefit
your online business The ability to
target has been one of the main
things that have attracted people to
the internet for advertising You can
target big to very small websites that
give real vertical information and at
the same time it is also interactive
The scope for business on the Inter-
net is fantastic-there is so much po-
tential there and all you have to do is
have an integrated strategy or plan
to make it happen
Ajay Prasad is founder of Global Marketing Resources LLC that runs a number of ecommerce websites under its um-
brella Ajays functional expertise includes website strategy marketing management business development consumer re-
search market analysis and strategic planning GMR Web Team is an Orange County Website Design company that aims
to develop an overall Internet strategy for your business
Web design is very
important to search
engineshellipIf the
spiderscrawlers cant
crawl your pages
properly and retrieve all
the data they need the
search engines cant
rank them properly
Page 6 Volume I Issue V Medium Business Alliance
Simply put asset based lending is a loan that is secured in exchange for the assets of the company like accounts receiv-
able inventory and other balance sheet asset items as collateral Also known as asset based financing itlsquos a straightfor-
ward concept which emphasized on matching the companylsquos assets to the borrowing needs Most of the traditional
bank loans are based on the balance sheet ratios and the cash flow predictions
The assets of the organization are the major factors on which the loan is dependent in asset based financing This leads
to greater borrowing capacity than the traditional banking approach The major advantage of such loans is the availabil-
ity of cash for the routine requirements of the company The collateral would generally be the accounts receivables
inventories machinery and equipment real estate and other tangible assets
Benefits of Asset Based Lending
Low Rate of Interest Compared to the unsecured loans the rate of interest of such asset based finance is much lower
This is because the lenderlsquos money is safe with the availability of the collateral item on non-repayment of the loan
Profit and Loss and Credit History One major benefit of the asset based financing is that the asset value is of relevance
to the financing company and not your credit history or the cash flow status
Quick Finance The financing organization lends the amount required quickly with least hassles Thus when there is an
urgent need for finance to capitalize on a great business opportunity it can be accessed with the help of the asset
pledged It is thus useful to meet the seasonal need rapid growth acquisitions etc
Commitment The asset-based loans have flexible repayments plans Short-term asset based loans get paid off quickly
from the account receivable and the inventory
Many companies provide customized lending depending upon the needs of the organizations Some companies also
have expertise in specific industries that is beneficial to understand the finance needs of the company
Financial Discipline The borrowing availability is dependent on the advance rates on the accounts receivables This
makes the borrowers collect the receivable amount in a more disciplined manner Moreover as only the completed
products are eligible for financing the company improves on efficiency in the production process
Few Financial Covenants The asset based loans require only a few covenants like debt service coverage and net worth
as they are based on the collaterals
In tough financial conditions the lender shows the willingness to give more time to the borrower as he has the collat-
eral to protect the loaned amount
Industry Expertise The financing companies have expertise in dealing with the retailers manufacturers distributors and
importers within industries dealing the automotive parts apparel consumer products food and beverages steel and
transportation Thus these companies extend help to nearly all businesses
The asset based lending is useful when you have a requirement for working capital and funds for new acquisitions and
major capital expenditures It also fills in for the funds required restructuring the business and to take care of other
finance needs
Financial The Benefits of Asset Based Lending
Accounts Receivable Financing can help your business grow and by solving cash flow problems The Internal Revenue
Service (IRS) has a guide on what defines an Account Receivable Financing Company To receive a quick quote visit the
website at wwwarfactorquotecom
Human Resources
Workplace Cleanliness Tips on Combating Germs in the Office By Peter Sheldon
Page 7 Medium Business Alliance Volume I Issue V
The winter may be coming to a close but that doesnlsquot
mean companies should stop paying attention to proper
workplace cleanliness With viruses like H1N1 still show-
ing up in public environments ndash plus $150 billion in lost
company productivity each year from illnesses such as
influenza and the common cold ndash there is a need to im-
prove infection prevention practices in the office or
workplace environment
Fortunately commercial cleaning has made great strides
and innovative health-based cleaning systems now address
the need for cleaner healthier facilities
Judging a facilitylsquos level of cleanliness by appearance alone
is not an effective measure of clean A true health-
focused cleaning program offers a comprehensive system
that provides cleaning on the unseen or microbial level
To accomplish this health-based cleaning services utilize
advanced technology such as microfiber cleaning cloths
and flat mops hospital-grade disinfectants no-touchlsquo rest-
room cleaning and multi-filtration vacuums
The first step in any effective facility cleaning program
must be the use of proper disinfectant chemistry to kill
bacteria and viruses that can cause illness But what hap-
pens to those germs once they have been killed
With traditional cleaning methods very few of the dead
germ cells are actually removed Instead the standard
cleaning materials used by most custodial services simply
spread the germs around cross-contaminating other sur-
faces and leaving behind the dead cells that may serve as
cleaning cloths and mop pads that have tiny fibers that
make the fabric super absorbent in order to trap those
dead germs and remove them from the surface
Health-based cleaning services are also employing color-
coded systems for their cleaning cloths and flat mops to
further avoid cross-contamination For example instead
of using one cloth for both the bathroom and cafeteria
they use a different color cloth in each room ndash thereby
ensuring that soil and matter from one room will be con-
tained and germs from one area will not be spread to
another part of the building
Tips to Employ a True Health-Based Cleaning
Program
Several elements are crucial to ensuring a health-based
cleaning program is successful They include
Implementing a cleaning system that can be measured
to remove soils and germs through scientific
tools rather than judging by appearance alone
Using EPA-registered hospital-grade disinfectant
chemistry
Cleaning with multi-filtration high efficiency vacuum-
ing technology to improve indoor air quality HEPA vac-
uum systems are 9997 percent efficient at filtering dirt
dust and allergen particles 03 microns or larger
Using color-coded microfiber cleaning cloths that
reduce cross-contamination and are 99 percent more
effective at removing illness-causing germs and soil
ldquoThe first step in any effective facility
cleaning program must be the use of
proper disinfectant chemistry to kill
bacteria and viruses that can cause
illnessrdquo
Page 8 Volume I Issue V
Employing touch-free spray and vacuum system tech-
nologies In areas tolerant of wet cleaning processes this
technology provides the most complete disinfection and
soil removal of any cleaning application
Deploying no-dip flat-mopping systems that use only
clean solution for increased soil removal and reduced
cross-contamination
By simply having occupants ndash all workspaces pose a risk of
spreading infection Businesses who wish to maintain
Medium Business Alliance
spotless indoor environments while meeting the larger
goal of employee well-being should review the cleaning
methods used by their current facilities manager or clean-
ing services to be sure they include the benefits of health-
based cleaning innovations
Health-based cleaning programs provide cleaner healthier
environments ndash your employees will experience fewer
sick days you will have lower associated healthcare costs
and your business will benefit from better productivity
and higher employee morale
Peter J Sheldon Sr CBSE brings over 18 years of experience in the Building Services Contracting industry to his posi-
tion as Vice President of Operations of Coverall Health-Based Cleaning SystemSM Sheldon works closely with the
Coverall sales and operations teams to spearhead initiatives that further the Companylsquos strategic objectives and help the
Company develop the most efficient and innovative cleaning processes available Sheldon is among the elite group of build-
ing service professionals to qualify for the Certified Building Service Executive designation
How To Putting a Value on Your Business By Don DuLong
Starting a business was a very exciting time in my life The wonder of what was to come Could I build and grow a viable
business What would it be like to work for myself instead of someone else Well 15 years later with the help of nu-
merous people I have accomplished the goals I set for the company So what now Sure like other business we con-
stantly are developing new services and representing new products but what will I do with this business when I am ready
to retire Can I sell it Better yet what is it worth
Sure every business owner is trying to constantly improve the value of the business but what is the business really worth
Experts will tell you that putting a value on your business is not something you should do yourself You are emotionally
attached to the business and that can prevent you from taking on objective view You can determine a ballpark value by
applying one or more different methods of business valuation I combined several different methods in order to place a
value on my company
When I started to place a value on the business the first thing I looked at was the companylsquos financial statements Just by
subtracting the businesses liabilities from its assets the book value of the business can be determined Most balance sheets
will do this for you The information on the balance sheet needs to current in order to get an accurate book value This
valuation does not take in to consideration the non tangible assets of the business
The rule of thumb method is a good way to see what your business is worth based on the value of similar businesses in
your companylsquos specific industry This method will give you a value that reflects an average value for businesses that have
sold or have been evaluated by professional firms The only drawback I found when trying to value my business using this
method was the lack of information specific to my industry The industry we work in does not have a high sell rate and
has a limited number of businesses compared to other industries I still applied the information gathered in order to get
an idea of what other business have sold for
When doing the research to see what methods businesses were using to determine their valuation I found that quite a
few businesses are applying the earnings capitalization method This method determines a businesslsquos value by comparing
the initial investment to the risk associated to the rate of return on that investment The rate of return on my business
varied from year to year and applying this method allowed me to set a value that would allow a purchaser to have a simi-
lar rate of return on the business Something was still missing though
Page 9 Medium Business Alliance Volume I Issue V
Merchant Gateway LLC is an employee-owned company We are an Independent Sales Organization (ISO) and Merchant
Service Provider (MSP) that is registered with VISA amp MasterCard to provide Merchant Services We have leveraged the
global capabilities of RBS WorldPay which is the third largest payment processor in the World ndash with the local knowledge
of our Agents to serve your business needs
Our business model is simple ndash Help Independent Merchants
1 Save Merchants $$$$
Introduce ―Cost-Plus Interchange Pricing to Small amp Medium Businesses The ―Cost-Plus pricing model was once only reserved to the ―Wal-Marts and larger businesses with
great transactional volume This will help the independent business owner compete with franchises and
larger businesses allowing them to keep more of their profits
2 Partner amp Educate Business Owners about Credit Card Processing Help business owners understand the lasted PCI compliance issues and provide to them easy to under-
stand information concerning their account in addition to getting them the best Interchange category
rate
3 ―Rate Lock for Life Program Although no one can affect the VISA and MasterCard Interchange costs we will lock in our Processing
Fees for the life of your account
4 $500 Best Rate Guarantee Challenge Simply put ndash If we cannot beat your current rate we will pay you $500 We know your time is impor-
tant and you have our commitment that we will save you money
5 Merchant Gateway Agent Program Merchant Gateway is always looking for local talented and motivated individuals to become part of our
growing movement Share in the best agent program in the industry with lifetime residual payments and
a dedicated sales team to insure your success
To take the $500 Best Rate Guarantee Challenge please fax your latest merchant services statement to (727) 231-8384
or call Phil DeConti (727) 644-1338 to discuss or answer any questions you may have Or visit them online at
wwwmerchantgatewaycom or email Phil DeConti at pdecontimerchantgatewaycom
Member Spotlight
Merchant Gateway ndash Americas Payment Choice
The most difficult part of placing a value on my business was determining what the intangible assets were worth How do
I place a value on the brand name and customer base we have developed for over 15 years How do I place a value on
the experience of the employees of the business Yes I said employees Itlsquos extremely difficult to find experienced and
dedicated employees in our industry and I felt like they added value to the business This is where the emotional part of
being a business owner comes in to play I canlsquot tell you what the intangible value of your business is because every busi-
ness is different in its own unique way So good luck in determining the value of your business and I suggest you start
taking a look at this long before you decide to sell
Don DuLong is the owner of MWD Inc which services and repairs all medium and heavy duty trucks trailers and buses When it
comes to anything in truck and heavy equipment service MWD is respected for providing quality work at reasonable prices For infor-
mation on MWD Inc contact Don DuLong at 478-742-1500 or visit wwwmwdincnet
Comic Corner
New Member Listings
wwwmediumbusinessalliancecom
Contact us at Membershipmediumbusinessalliancecom
Are You a Professional
The following short quiz consists of 4 questions and will tell you whether you are qualified to be a professional
The questions are NOT that difficult
1 How do you put a giraffe into a refrigerator
The correct answer is Open the refrigerator put in the giraffe and close the door
This question tests whether you tend to do simple things in an overly complicated way
2 How do you put an elephant into a refrigerator
Open the refrigerator put in the elephant and close the refrigerator Wrong Answer
Correct Answer Open the refrigerator take out the giraffe put in the elephant and close the door
This tests your ability to think through the repercussions of your previous actions
3 The Lion King is hosting an animal conference All the animals attend except one Which animal does not attend
Correct Answer The Elephant The elephant is in the refrigerator
This tests your memory
OK even if you did not answer the first three questions correctly you still have one more chance to show your true
abilities
4 There is a river you must cross But it is inhabited by crocodiles How do you manage it
Correct Answer You swim across All the crocodiles are attending the Animal Meeting
This tests whether you learn quickly from your mistakes
According to Anderson Consulting Worldwide around 90 of the professionals they tested got all questions wrong
But many preschoolers got several correct answers Anderson Consulting says this conclusively disproves the theory
that most professionals have the brains of a four year old
THIS IS NOT INVESTMENT TAX OR LEGAL ADVICE Contact your financial advisor accountant or attorney
before making important decisions in any of these areas Medium Business Alliance LLC Copyright copy 2009 Medium
Business Alliance LLC All rights reserved This material may not be reproduced distributed transmitted cached or oth-
erwise used except with the prior written permission of Medium Business Alliance LLC
Medium Business Alliance Volume I Issue V Page 10
Page 5 Medium Business Alliance Volume I Issue V
normally includes a target market
analysis market research and a mar-
ket forecast
2 Website strategy- This includes
your mission and objective of starting
an internet business web develop-
ment and marketing strategy
3 Specific development plan- Any
web plan is measured by the result it
produces Therefore implementation
of your plan is more important than
brilliant ideas Start taking action on
the tasks that you have created during
the planning stage
4 Identify your organization goals
Every company has a set of tangible
and intangible goals and identifying
yours will help you better focus on it
and implement them in time
5 Online marketing- Getting the most
out of the online marketing channels
requires specialized techniques like
search engine optimization pay per
click marketing social media optimiza-
tion e-mail marketing and many more
to reach out to your customers
6 Expense budget- This includes de-
tails to track expenses month by
month and follow up with your plan vs
actual analysis
7 Returns (ROI) - Business is driven by
ROI and it is only natural that the
online marketing efforts need to lead
into a positive ROI determined by the
key performance indicators
8 Survey- Get feedback from website
visitors regarding what bought them to
you or how their experience has been
on your website
The Internet presents a wide range of
marketing and communication oppor-
tunities for every business Making
those opportunities a reality requires
careful planning thoughtful assessment
and directed focus
Web design is very important to
search engines Messy over-
complicated or bad code give the
search engine spiders a hard time
crawling your pages If the spiders
crawlers cant crawl your pages prop-
erly and retrieve all the data they need
the search engines cant rank them
properly
There are more effective methods of
attracting your customers to your
website than search engine listings
PPC is great for targeting potential
leads in every phase of the buying
cycle and it is measurable Studies
show that regular contact with cus-
tomers helps to maintain your rela-
tionship with them and generates
referral business
Many companies consider web ad-
vertising a viable technique to benefit
your online business The ability to
target has been one of the main
things that have attracted people to
the internet for advertising You can
target big to very small websites that
give real vertical information and at
the same time it is also interactive
The scope for business on the Inter-
net is fantastic-there is so much po-
tential there and all you have to do is
have an integrated strategy or plan
to make it happen
Ajay Prasad is founder of Global Marketing Resources LLC that runs a number of ecommerce websites under its um-
brella Ajays functional expertise includes website strategy marketing management business development consumer re-
search market analysis and strategic planning GMR Web Team is an Orange County Website Design company that aims
to develop an overall Internet strategy for your business
Web design is very
important to search
engineshellipIf the
spiderscrawlers cant
crawl your pages
properly and retrieve all
the data they need the
search engines cant
rank them properly
Page 6 Volume I Issue V Medium Business Alliance
Simply put asset based lending is a loan that is secured in exchange for the assets of the company like accounts receiv-
able inventory and other balance sheet asset items as collateral Also known as asset based financing itlsquos a straightfor-
ward concept which emphasized on matching the companylsquos assets to the borrowing needs Most of the traditional
bank loans are based on the balance sheet ratios and the cash flow predictions
The assets of the organization are the major factors on which the loan is dependent in asset based financing This leads
to greater borrowing capacity than the traditional banking approach The major advantage of such loans is the availabil-
ity of cash for the routine requirements of the company The collateral would generally be the accounts receivables
inventories machinery and equipment real estate and other tangible assets
Benefits of Asset Based Lending
Low Rate of Interest Compared to the unsecured loans the rate of interest of such asset based finance is much lower
This is because the lenderlsquos money is safe with the availability of the collateral item on non-repayment of the loan
Profit and Loss and Credit History One major benefit of the asset based financing is that the asset value is of relevance
to the financing company and not your credit history or the cash flow status
Quick Finance The financing organization lends the amount required quickly with least hassles Thus when there is an
urgent need for finance to capitalize on a great business opportunity it can be accessed with the help of the asset
pledged It is thus useful to meet the seasonal need rapid growth acquisitions etc
Commitment The asset-based loans have flexible repayments plans Short-term asset based loans get paid off quickly
from the account receivable and the inventory
Many companies provide customized lending depending upon the needs of the organizations Some companies also
have expertise in specific industries that is beneficial to understand the finance needs of the company
Financial Discipline The borrowing availability is dependent on the advance rates on the accounts receivables This
makes the borrowers collect the receivable amount in a more disciplined manner Moreover as only the completed
products are eligible for financing the company improves on efficiency in the production process
Few Financial Covenants The asset based loans require only a few covenants like debt service coverage and net worth
as they are based on the collaterals
In tough financial conditions the lender shows the willingness to give more time to the borrower as he has the collat-
eral to protect the loaned amount
Industry Expertise The financing companies have expertise in dealing with the retailers manufacturers distributors and
importers within industries dealing the automotive parts apparel consumer products food and beverages steel and
transportation Thus these companies extend help to nearly all businesses
The asset based lending is useful when you have a requirement for working capital and funds for new acquisitions and
major capital expenditures It also fills in for the funds required restructuring the business and to take care of other
finance needs
Financial The Benefits of Asset Based Lending
Accounts Receivable Financing can help your business grow and by solving cash flow problems The Internal Revenue
Service (IRS) has a guide on what defines an Account Receivable Financing Company To receive a quick quote visit the
website at wwwarfactorquotecom
Human Resources
Workplace Cleanliness Tips on Combating Germs in the Office By Peter Sheldon
Page 7 Medium Business Alliance Volume I Issue V
The winter may be coming to a close but that doesnlsquot
mean companies should stop paying attention to proper
workplace cleanliness With viruses like H1N1 still show-
ing up in public environments ndash plus $150 billion in lost
company productivity each year from illnesses such as
influenza and the common cold ndash there is a need to im-
prove infection prevention practices in the office or
workplace environment
Fortunately commercial cleaning has made great strides
and innovative health-based cleaning systems now address
the need for cleaner healthier facilities
Judging a facilitylsquos level of cleanliness by appearance alone
is not an effective measure of clean A true health-
focused cleaning program offers a comprehensive system
that provides cleaning on the unseen or microbial level
To accomplish this health-based cleaning services utilize
advanced technology such as microfiber cleaning cloths
and flat mops hospital-grade disinfectants no-touchlsquo rest-
room cleaning and multi-filtration vacuums
The first step in any effective facility cleaning program
must be the use of proper disinfectant chemistry to kill
bacteria and viruses that can cause illness But what hap-
pens to those germs once they have been killed
With traditional cleaning methods very few of the dead
germ cells are actually removed Instead the standard
cleaning materials used by most custodial services simply
spread the germs around cross-contaminating other sur-
faces and leaving behind the dead cells that may serve as
cleaning cloths and mop pads that have tiny fibers that
make the fabric super absorbent in order to trap those
dead germs and remove them from the surface
Health-based cleaning services are also employing color-
coded systems for their cleaning cloths and flat mops to
further avoid cross-contamination For example instead
of using one cloth for both the bathroom and cafeteria
they use a different color cloth in each room ndash thereby
ensuring that soil and matter from one room will be con-
tained and germs from one area will not be spread to
another part of the building
Tips to Employ a True Health-Based Cleaning
Program
Several elements are crucial to ensuring a health-based
cleaning program is successful They include
Implementing a cleaning system that can be measured
to remove soils and germs through scientific
tools rather than judging by appearance alone
Using EPA-registered hospital-grade disinfectant
chemistry
Cleaning with multi-filtration high efficiency vacuum-
ing technology to improve indoor air quality HEPA vac-
uum systems are 9997 percent efficient at filtering dirt
dust and allergen particles 03 microns or larger
Using color-coded microfiber cleaning cloths that
reduce cross-contamination and are 99 percent more
effective at removing illness-causing germs and soil
ldquoThe first step in any effective facility
cleaning program must be the use of
proper disinfectant chemistry to kill
bacteria and viruses that can cause
illnessrdquo
Page 8 Volume I Issue V
Employing touch-free spray and vacuum system tech-
nologies In areas tolerant of wet cleaning processes this
technology provides the most complete disinfection and
soil removal of any cleaning application
Deploying no-dip flat-mopping systems that use only
clean solution for increased soil removal and reduced
cross-contamination
By simply having occupants ndash all workspaces pose a risk of
spreading infection Businesses who wish to maintain
Medium Business Alliance
spotless indoor environments while meeting the larger
goal of employee well-being should review the cleaning
methods used by their current facilities manager or clean-
ing services to be sure they include the benefits of health-
based cleaning innovations
Health-based cleaning programs provide cleaner healthier
environments ndash your employees will experience fewer
sick days you will have lower associated healthcare costs
and your business will benefit from better productivity
and higher employee morale
Peter J Sheldon Sr CBSE brings over 18 years of experience in the Building Services Contracting industry to his posi-
tion as Vice President of Operations of Coverall Health-Based Cleaning SystemSM Sheldon works closely with the
Coverall sales and operations teams to spearhead initiatives that further the Companylsquos strategic objectives and help the
Company develop the most efficient and innovative cleaning processes available Sheldon is among the elite group of build-
ing service professionals to qualify for the Certified Building Service Executive designation
How To Putting a Value on Your Business By Don DuLong
Starting a business was a very exciting time in my life The wonder of what was to come Could I build and grow a viable
business What would it be like to work for myself instead of someone else Well 15 years later with the help of nu-
merous people I have accomplished the goals I set for the company So what now Sure like other business we con-
stantly are developing new services and representing new products but what will I do with this business when I am ready
to retire Can I sell it Better yet what is it worth
Sure every business owner is trying to constantly improve the value of the business but what is the business really worth
Experts will tell you that putting a value on your business is not something you should do yourself You are emotionally
attached to the business and that can prevent you from taking on objective view You can determine a ballpark value by
applying one or more different methods of business valuation I combined several different methods in order to place a
value on my company
When I started to place a value on the business the first thing I looked at was the companylsquos financial statements Just by
subtracting the businesses liabilities from its assets the book value of the business can be determined Most balance sheets
will do this for you The information on the balance sheet needs to current in order to get an accurate book value This
valuation does not take in to consideration the non tangible assets of the business
The rule of thumb method is a good way to see what your business is worth based on the value of similar businesses in
your companylsquos specific industry This method will give you a value that reflects an average value for businesses that have
sold or have been evaluated by professional firms The only drawback I found when trying to value my business using this
method was the lack of information specific to my industry The industry we work in does not have a high sell rate and
has a limited number of businesses compared to other industries I still applied the information gathered in order to get
an idea of what other business have sold for
When doing the research to see what methods businesses were using to determine their valuation I found that quite a
few businesses are applying the earnings capitalization method This method determines a businesslsquos value by comparing
the initial investment to the risk associated to the rate of return on that investment The rate of return on my business
varied from year to year and applying this method allowed me to set a value that would allow a purchaser to have a simi-
lar rate of return on the business Something was still missing though
Page 9 Medium Business Alliance Volume I Issue V
Merchant Gateway LLC is an employee-owned company We are an Independent Sales Organization (ISO) and Merchant
Service Provider (MSP) that is registered with VISA amp MasterCard to provide Merchant Services We have leveraged the
global capabilities of RBS WorldPay which is the third largest payment processor in the World ndash with the local knowledge
of our Agents to serve your business needs
Our business model is simple ndash Help Independent Merchants
1 Save Merchants $$$$
Introduce ―Cost-Plus Interchange Pricing to Small amp Medium Businesses The ―Cost-Plus pricing model was once only reserved to the ―Wal-Marts and larger businesses with
great transactional volume This will help the independent business owner compete with franchises and
larger businesses allowing them to keep more of their profits
2 Partner amp Educate Business Owners about Credit Card Processing Help business owners understand the lasted PCI compliance issues and provide to them easy to under-
stand information concerning their account in addition to getting them the best Interchange category
rate
3 ―Rate Lock for Life Program Although no one can affect the VISA and MasterCard Interchange costs we will lock in our Processing
Fees for the life of your account
4 $500 Best Rate Guarantee Challenge Simply put ndash If we cannot beat your current rate we will pay you $500 We know your time is impor-
tant and you have our commitment that we will save you money
5 Merchant Gateway Agent Program Merchant Gateway is always looking for local talented and motivated individuals to become part of our
growing movement Share in the best agent program in the industry with lifetime residual payments and
a dedicated sales team to insure your success
To take the $500 Best Rate Guarantee Challenge please fax your latest merchant services statement to (727) 231-8384
or call Phil DeConti (727) 644-1338 to discuss or answer any questions you may have Or visit them online at
wwwmerchantgatewaycom or email Phil DeConti at pdecontimerchantgatewaycom
Member Spotlight
Merchant Gateway ndash Americas Payment Choice
The most difficult part of placing a value on my business was determining what the intangible assets were worth How do
I place a value on the brand name and customer base we have developed for over 15 years How do I place a value on
the experience of the employees of the business Yes I said employees Itlsquos extremely difficult to find experienced and
dedicated employees in our industry and I felt like they added value to the business This is where the emotional part of
being a business owner comes in to play I canlsquot tell you what the intangible value of your business is because every busi-
ness is different in its own unique way So good luck in determining the value of your business and I suggest you start
taking a look at this long before you decide to sell
Don DuLong is the owner of MWD Inc which services and repairs all medium and heavy duty trucks trailers and buses When it
comes to anything in truck and heavy equipment service MWD is respected for providing quality work at reasonable prices For infor-
mation on MWD Inc contact Don DuLong at 478-742-1500 or visit wwwmwdincnet
Comic Corner
New Member Listings
wwwmediumbusinessalliancecom
Contact us at Membershipmediumbusinessalliancecom
Are You a Professional
The following short quiz consists of 4 questions and will tell you whether you are qualified to be a professional
The questions are NOT that difficult
1 How do you put a giraffe into a refrigerator
The correct answer is Open the refrigerator put in the giraffe and close the door
This question tests whether you tend to do simple things in an overly complicated way
2 How do you put an elephant into a refrigerator
Open the refrigerator put in the elephant and close the refrigerator Wrong Answer
Correct Answer Open the refrigerator take out the giraffe put in the elephant and close the door
This tests your ability to think through the repercussions of your previous actions
3 The Lion King is hosting an animal conference All the animals attend except one Which animal does not attend
Correct Answer The Elephant The elephant is in the refrigerator
This tests your memory
OK even if you did not answer the first three questions correctly you still have one more chance to show your true
abilities
4 There is a river you must cross But it is inhabited by crocodiles How do you manage it
Correct Answer You swim across All the crocodiles are attending the Animal Meeting
This tests whether you learn quickly from your mistakes
According to Anderson Consulting Worldwide around 90 of the professionals they tested got all questions wrong
But many preschoolers got several correct answers Anderson Consulting says this conclusively disproves the theory
that most professionals have the brains of a four year old
THIS IS NOT INVESTMENT TAX OR LEGAL ADVICE Contact your financial advisor accountant or attorney
before making important decisions in any of these areas Medium Business Alliance LLC Copyright copy 2009 Medium
Business Alliance LLC All rights reserved This material may not be reproduced distributed transmitted cached or oth-
erwise used except with the prior written permission of Medium Business Alliance LLC
Medium Business Alliance Volume I Issue V Page 10
Page 6 Volume I Issue V Medium Business Alliance
Simply put asset based lending is a loan that is secured in exchange for the assets of the company like accounts receiv-
able inventory and other balance sheet asset items as collateral Also known as asset based financing itlsquos a straightfor-
ward concept which emphasized on matching the companylsquos assets to the borrowing needs Most of the traditional
bank loans are based on the balance sheet ratios and the cash flow predictions
The assets of the organization are the major factors on which the loan is dependent in asset based financing This leads
to greater borrowing capacity than the traditional banking approach The major advantage of such loans is the availabil-
ity of cash for the routine requirements of the company The collateral would generally be the accounts receivables
inventories machinery and equipment real estate and other tangible assets
Benefits of Asset Based Lending
Low Rate of Interest Compared to the unsecured loans the rate of interest of such asset based finance is much lower
This is because the lenderlsquos money is safe with the availability of the collateral item on non-repayment of the loan
Profit and Loss and Credit History One major benefit of the asset based financing is that the asset value is of relevance
to the financing company and not your credit history or the cash flow status
Quick Finance The financing organization lends the amount required quickly with least hassles Thus when there is an
urgent need for finance to capitalize on a great business opportunity it can be accessed with the help of the asset
pledged It is thus useful to meet the seasonal need rapid growth acquisitions etc
Commitment The asset-based loans have flexible repayments plans Short-term asset based loans get paid off quickly
from the account receivable and the inventory
Many companies provide customized lending depending upon the needs of the organizations Some companies also
have expertise in specific industries that is beneficial to understand the finance needs of the company
Financial Discipline The borrowing availability is dependent on the advance rates on the accounts receivables This
makes the borrowers collect the receivable amount in a more disciplined manner Moreover as only the completed
products are eligible for financing the company improves on efficiency in the production process
Few Financial Covenants The asset based loans require only a few covenants like debt service coverage and net worth
as they are based on the collaterals
In tough financial conditions the lender shows the willingness to give more time to the borrower as he has the collat-
eral to protect the loaned amount
Industry Expertise The financing companies have expertise in dealing with the retailers manufacturers distributors and
importers within industries dealing the automotive parts apparel consumer products food and beverages steel and
transportation Thus these companies extend help to nearly all businesses
The asset based lending is useful when you have a requirement for working capital and funds for new acquisitions and
major capital expenditures It also fills in for the funds required restructuring the business and to take care of other
finance needs
Financial The Benefits of Asset Based Lending
Accounts Receivable Financing can help your business grow and by solving cash flow problems The Internal Revenue
Service (IRS) has a guide on what defines an Account Receivable Financing Company To receive a quick quote visit the
website at wwwarfactorquotecom
Human Resources
Workplace Cleanliness Tips on Combating Germs in the Office By Peter Sheldon
Page 7 Medium Business Alliance Volume I Issue V
The winter may be coming to a close but that doesnlsquot
mean companies should stop paying attention to proper
workplace cleanliness With viruses like H1N1 still show-
ing up in public environments ndash plus $150 billion in lost
company productivity each year from illnesses such as
influenza and the common cold ndash there is a need to im-
prove infection prevention practices in the office or
workplace environment
Fortunately commercial cleaning has made great strides
and innovative health-based cleaning systems now address
the need for cleaner healthier facilities
Judging a facilitylsquos level of cleanliness by appearance alone
is not an effective measure of clean A true health-
focused cleaning program offers a comprehensive system
that provides cleaning on the unseen or microbial level
To accomplish this health-based cleaning services utilize
advanced technology such as microfiber cleaning cloths
and flat mops hospital-grade disinfectants no-touchlsquo rest-
room cleaning and multi-filtration vacuums
The first step in any effective facility cleaning program
must be the use of proper disinfectant chemistry to kill
bacteria and viruses that can cause illness But what hap-
pens to those germs once they have been killed
With traditional cleaning methods very few of the dead
germ cells are actually removed Instead the standard
cleaning materials used by most custodial services simply
spread the germs around cross-contaminating other sur-
faces and leaving behind the dead cells that may serve as
cleaning cloths and mop pads that have tiny fibers that
make the fabric super absorbent in order to trap those
dead germs and remove them from the surface
Health-based cleaning services are also employing color-
coded systems for their cleaning cloths and flat mops to
further avoid cross-contamination For example instead
of using one cloth for both the bathroom and cafeteria
they use a different color cloth in each room ndash thereby
ensuring that soil and matter from one room will be con-
tained and germs from one area will not be spread to
another part of the building
Tips to Employ a True Health-Based Cleaning
Program
Several elements are crucial to ensuring a health-based
cleaning program is successful They include
Implementing a cleaning system that can be measured
to remove soils and germs through scientific
tools rather than judging by appearance alone
Using EPA-registered hospital-grade disinfectant
chemistry
Cleaning with multi-filtration high efficiency vacuum-
ing technology to improve indoor air quality HEPA vac-
uum systems are 9997 percent efficient at filtering dirt
dust and allergen particles 03 microns or larger
Using color-coded microfiber cleaning cloths that
reduce cross-contamination and are 99 percent more
effective at removing illness-causing germs and soil
ldquoThe first step in any effective facility
cleaning program must be the use of
proper disinfectant chemistry to kill
bacteria and viruses that can cause
illnessrdquo
Page 8 Volume I Issue V
Employing touch-free spray and vacuum system tech-
nologies In areas tolerant of wet cleaning processes this
technology provides the most complete disinfection and
soil removal of any cleaning application
Deploying no-dip flat-mopping systems that use only
clean solution for increased soil removal and reduced
cross-contamination
By simply having occupants ndash all workspaces pose a risk of
spreading infection Businesses who wish to maintain
Medium Business Alliance
spotless indoor environments while meeting the larger
goal of employee well-being should review the cleaning
methods used by their current facilities manager or clean-
ing services to be sure they include the benefits of health-
based cleaning innovations
Health-based cleaning programs provide cleaner healthier
environments ndash your employees will experience fewer
sick days you will have lower associated healthcare costs
and your business will benefit from better productivity
and higher employee morale
Peter J Sheldon Sr CBSE brings over 18 years of experience in the Building Services Contracting industry to his posi-
tion as Vice President of Operations of Coverall Health-Based Cleaning SystemSM Sheldon works closely with the
Coverall sales and operations teams to spearhead initiatives that further the Companylsquos strategic objectives and help the
Company develop the most efficient and innovative cleaning processes available Sheldon is among the elite group of build-
ing service professionals to qualify for the Certified Building Service Executive designation
How To Putting a Value on Your Business By Don DuLong
Starting a business was a very exciting time in my life The wonder of what was to come Could I build and grow a viable
business What would it be like to work for myself instead of someone else Well 15 years later with the help of nu-
merous people I have accomplished the goals I set for the company So what now Sure like other business we con-
stantly are developing new services and representing new products but what will I do with this business when I am ready
to retire Can I sell it Better yet what is it worth
Sure every business owner is trying to constantly improve the value of the business but what is the business really worth
Experts will tell you that putting a value on your business is not something you should do yourself You are emotionally
attached to the business and that can prevent you from taking on objective view You can determine a ballpark value by
applying one or more different methods of business valuation I combined several different methods in order to place a
value on my company
When I started to place a value on the business the first thing I looked at was the companylsquos financial statements Just by
subtracting the businesses liabilities from its assets the book value of the business can be determined Most balance sheets
will do this for you The information on the balance sheet needs to current in order to get an accurate book value This
valuation does not take in to consideration the non tangible assets of the business
The rule of thumb method is a good way to see what your business is worth based on the value of similar businesses in
your companylsquos specific industry This method will give you a value that reflects an average value for businesses that have
sold or have been evaluated by professional firms The only drawback I found when trying to value my business using this
method was the lack of information specific to my industry The industry we work in does not have a high sell rate and
has a limited number of businesses compared to other industries I still applied the information gathered in order to get
an idea of what other business have sold for
When doing the research to see what methods businesses were using to determine their valuation I found that quite a
few businesses are applying the earnings capitalization method This method determines a businesslsquos value by comparing
the initial investment to the risk associated to the rate of return on that investment The rate of return on my business
varied from year to year and applying this method allowed me to set a value that would allow a purchaser to have a simi-
lar rate of return on the business Something was still missing though
Page 9 Medium Business Alliance Volume I Issue V
Merchant Gateway LLC is an employee-owned company We are an Independent Sales Organization (ISO) and Merchant
Service Provider (MSP) that is registered with VISA amp MasterCard to provide Merchant Services We have leveraged the
global capabilities of RBS WorldPay which is the third largest payment processor in the World ndash with the local knowledge
of our Agents to serve your business needs
Our business model is simple ndash Help Independent Merchants
1 Save Merchants $$$$
Introduce ―Cost-Plus Interchange Pricing to Small amp Medium Businesses The ―Cost-Plus pricing model was once only reserved to the ―Wal-Marts and larger businesses with
great transactional volume This will help the independent business owner compete with franchises and
larger businesses allowing them to keep more of their profits
2 Partner amp Educate Business Owners about Credit Card Processing Help business owners understand the lasted PCI compliance issues and provide to them easy to under-
stand information concerning their account in addition to getting them the best Interchange category
rate
3 ―Rate Lock for Life Program Although no one can affect the VISA and MasterCard Interchange costs we will lock in our Processing
Fees for the life of your account
4 $500 Best Rate Guarantee Challenge Simply put ndash If we cannot beat your current rate we will pay you $500 We know your time is impor-
tant and you have our commitment that we will save you money
5 Merchant Gateway Agent Program Merchant Gateway is always looking for local talented and motivated individuals to become part of our
growing movement Share in the best agent program in the industry with lifetime residual payments and
a dedicated sales team to insure your success
To take the $500 Best Rate Guarantee Challenge please fax your latest merchant services statement to (727) 231-8384
or call Phil DeConti (727) 644-1338 to discuss or answer any questions you may have Or visit them online at
wwwmerchantgatewaycom or email Phil DeConti at pdecontimerchantgatewaycom
Member Spotlight
Merchant Gateway ndash Americas Payment Choice
The most difficult part of placing a value on my business was determining what the intangible assets were worth How do
I place a value on the brand name and customer base we have developed for over 15 years How do I place a value on
the experience of the employees of the business Yes I said employees Itlsquos extremely difficult to find experienced and
dedicated employees in our industry and I felt like they added value to the business This is where the emotional part of
being a business owner comes in to play I canlsquot tell you what the intangible value of your business is because every busi-
ness is different in its own unique way So good luck in determining the value of your business and I suggest you start
taking a look at this long before you decide to sell
Don DuLong is the owner of MWD Inc which services and repairs all medium and heavy duty trucks trailers and buses When it
comes to anything in truck and heavy equipment service MWD is respected for providing quality work at reasonable prices For infor-
mation on MWD Inc contact Don DuLong at 478-742-1500 or visit wwwmwdincnet
Comic Corner
New Member Listings
wwwmediumbusinessalliancecom
Contact us at Membershipmediumbusinessalliancecom
Are You a Professional
The following short quiz consists of 4 questions and will tell you whether you are qualified to be a professional
The questions are NOT that difficult
1 How do you put a giraffe into a refrigerator
The correct answer is Open the refrigerator put in the giraffe and close the door
This question tests whether you tend to do simple things in an overly complicated way
2 How do you put an elephant into a refrigerator
Open the refrigerator put in the elephant and close the refrigerator Wrong Answer
Correct Answer Open the refrigerator take out the giraffe put in the elephant and close the door
This tests your ability to think through the repercussions of your previous actions
3 The Lion King is hosting an animal conference All the animals attend except one Which animal does not attend
Correct Answer The Elephant The elephant is in the refrigerator
This tests your memory
OK even if you did not answer the first three questions correctly you still have one more chance to show your true
abilities
4 There is a river you must cross But it is inhabited by crocodiles How do you manage it
Correct Answer You swim across All the crocodiles are attending the Animal Meeting
This tests whether you learn quickly from your mistakes
According to Anderson Consulting Worldwide around 90 of the professionals they tested got all questions wrong
But many preschoolers got several correct answers Anderson Consulting says this conclusively disproves the theory
that most professionals have the brains of a four year old
THIS IS NOT INVESTMENT TAX OR LEGAL ADVICE Contact your financial advisor accountant or attorney
before making important decisions in any of these areas Medium Business Alliance LLC Copyright copy 2009 Medium
Business Alliance LLC All rights reserved This material may not be reproduced distributed transmitted cached or oth-
erwise used except with the prior written permission of Medium Business Alliance LLC
Medium Business Alliance Volume I Issue V Page 10
Human Resources
Workplace Cleanliness Tips on Combating Germs in the Office By Peter Sheldon
Page 7 Medium Business Alliance Volume I Issue V
The winter may be coming to a close but that doesnlsquot
mean companies should stop paying attention to proper
workplace cleanliness With viruses like H1N1 still show-
ing up in public environments ndash plus $150 billion in lost
company productivity each year from illnesses such as
influenza and the common cold ndash there is a need to im-
prove infection prevention practices in the office or
workplace environment
Fortunately commercial cleaning has made great strides
and innovative health-based cleaning systems now address
the need for cleaner healthier facilities
Judging a facilitylsquos level of cleanliness by appearance alone
is not an effective measure of clean A true health-
focused cleaning program offers a comprehensive system
that provides cleaning on the unseen or microbial level
To accomplish this health-based cleaning services utilize
advanced technology such as microfiber cleaning cloths
and flat mops hospital-grade disinfectants no-touchlsquo rest-
room cleaning and multi-filtration vacuums
The first step in any effective facility cleaning program
must be the use of proper disinfectant chemistry to kill
bacteria and viruses that can cause illness But what hap-
pens to those germs once they have been killed
With traditional cleaning methods very few of the dead
germ cells are actually removed Instead the standard
cleaning materials used by most custodial services simply
spread the germs around cross-contaminating other sur-
faces and leaving behind the dead cells that may serve as
cleaning cloths and mop pads that have tiny fibers that
make the fabric super absorbent in order to trap those
dead germs and remove them from the surface
Health-based cleaning services are also employing color-
coded systems for their cleaning cloths and flat mops to
further avoid cross-contamination For example instead
of using one cloth for both the bathroom and cafeteria
they use a different color cloth in each room ndash thereby
ensuring that soil and matter from one room will be con-
tained and germs from one area will not be spread to
another part of the building
Tips to Employ a True Health-Based Cleaning
Program
Several elements are crucial to ensuring a health-based
cleaning program is successful They include
Implementing a cleaning system that can be measured
to remove soils and germs through scientific
tools rather than judging by appearance alone
Using EPA-registered hospital-grade disinfectant
chemistry
Cleaning with multi-filtration high efficiency vacuum-
ing technology to improve indoor air quality HEPA vac-
uum systems are 9997 percent efficient at filtering dirt
dust and allergen particles 03 microns or larger
Using color-coded microfiber cleaning cloths that
reduce cross-contamination and are 99 percent more
effective at removing illness-causing germs and soil
ldquoThe first step in any effective facility
cleaning program must be the use of
proper disinfectant chemistry to kill
bacteria and viruses that can cause
illnessrdquo
Page 8 Volume I Issue V
Employing touch-free spray and vacuum system tech-
nologies In areas tolerant of wet cleaning processes this
technology provides the most complete disinfection and
soil removal of any cleaning application
Deploying no-dip flat-mopping systems that use only
clean solution for increased soil removal and reduced
cross-contamination
By simply having occupants ndash all workspaces pose a risk of
spreading infection Businesses who wish to maintain
Medium Business Alliance
spotless indoor environments while meeting the larger
goal of employee well-being should review the cleaning
methods used by their current facilities manager or clean-
ing services to be sure they include the benefits of health-
based cleaning innovations
Health-based cleaning programs provide cleaner healthier
environments ndash your employees will experience fewer
sick days you will have lower associated healthcare costs
and your business will benefit from better productivity
and higher employee morale
Peter J Sheldon Sr CBSE brings over 18 years of experience in the Building Services Contracting industry to his posi-
tion as Vice President of Operations of Coverall Health-Based Cleaning SystemSM Sheldon works closely with the
Coverall sales and operations teams to spearhead initiatives that further the Companylsquos strategic objectives and help the
Company develop the most efficient and innovative cleaning processes available Sheldon is among the elite group of build-
ing service professionals to qualify for the Certified Building Service Executive designation
How To Putting a Value on Your Business By Don DuLong
Starting a business was a very exciting time in my life The wonder of what was to come Could I build and grow a viable
business What would it be like to work for myself instead of someone else Well 15 years later with the help of nu-
merous people I have accomplished the goals I set for the company So what now Sure like other business we con-
stantly are developing new services and representing new products but what will I do with this business when I am ready
to retire Can I sell it Better yet what is it worth
Sure every business owner is trying to constantly improve the value of the business but what is the business really worth
Experts will tell you that putting a value on your business is not something you should do yourself You are emotionally
attached to the business and that can prevent you from taking on objective view You can determine a ballpark value by
applying one or more different methods of business valuation I combined several different methods in order to place a
value on my company
When I started to place a value on the business the first thing I looked at was the companylsquos financial statements Just by
subtracting the businesses liabilities from its assets the book value of the business can be determined Most balance sheets
will do this for you The information on the balance sheet needs to current in order to get an accurate book value This
valuation does not take in to consideration the non tangible assets of the business
The rule of thumb method is a good way to see what your business is worth based on the value of similar businesses in
your companylsquos specific industry This method will give you a value that reflects an average value for businesses that have
sold or have been evaluated by professional firms The only drawback I found when trying to value my business using this
method was the lack of information specific to my industry The industry we work in does not have a high sell rate and
has a limited number of businesses compared to other industries I still applied the information gathered in order to get
an idea of what other business have sold for
When doing the research to see what methods businesses were using to determine their valuation I found that quite a
few businesses are applying the earnings capitalization method This method determines a businesslsquos value by comparing
the initial investment to the risk associated to the rate of return on that investment The rate of return on my business
varied from year to year and applying this method allowed me to set a value that would allow a purchaser to have a simi-
lar rate of return on the business Something was still missing though
Page 9 Medium Business Alliance Volume I Issue V
Merchant Gateway LLC is an employee-owned company We are an Independent Sales Organization (ISO) and Merchant
Service Provider (MSP) that is registered with VISA amp MasterCard to provide Merchant Services We have leveraged the
global capabilities of RBS WorldPay which is the third largest payment processor in the World ndash with the local knowledge
of our Agents to serve your business needs
Our business model is simple ndash Help Independent Merchants
1 Save Merchants $$$$
Introduce ―Cost-Plus Interchange Pricing to Small amp Medium Businesses The ―Cost-Plus pricing model was once only reserved to the ―Wal-Marts and larger businesses with
great transactional volume This will help the independent business owner compete with franchises and
larger businesses allowing them to keep more of their profits
2 Partner amp Educate Business Owners about Credit Card Processing Help business owners understand the lasted PCI compliance issues and provide to them easy to under-
stand information concerning their account in addition to getting them the best Interchange category
rate
3 ―Rate Lock for Life Program Although no one can affect the VISA and MasterCard Interchange costs we will lock in our Processing
Fees for the life of your account
4 $500 Best Rate Guarantee Challenge Simply put ndash If we cannot beat your current rate we will pay you $500 We know your time is impor-
tant and you have our commitment that we will save you money
5 Merchant Gateway Agent Program Merchant Gateway is always looking for local talented and motivated individuals to become part of our
growing movement Share in the best agent program in the industry with lifetime residual payments and
a dedicated sales team to insure your success
To take the $500 Best Rate Guarantee Challenge please fax your latest merchant services statement to (727) 231-8384
or call Phil DeConti (727) 644-1338 to discuss or answer any questions you may have Or visit them online at
wwwmerchantgatewaycom or email Phil DeConti at pdecontimerchantgatewaycom
Member Spotlight
Merchant Gateway ndash Americas Payment Choice
The most difficult part of placing a value on my business was determining what the intangible assets were worth How do
I place a value on the brand name and customer base we have developed for over 15 years How do I place a value on
the experience of the employees of the business Yes I said employees Itlsquos extremely difficult to find experienced and
dedicated employees in our industry and I felt like they added value to the business This is where the emotional part of
being a business owner comes in to play I canlsquot tell you what the intangible value of your business is because every busi-
ness is different in its own unique way So good luck in determining the value of your business and I suggest you start
taking a look at this long before you decide to sell
Don DuLong is the owner of MWD Inc which services and repairs all medium and heavy duty trucks trailers and buses When it
comes to anything in truck and heavy equipment service MWD is respected for providing quality work at reasonable prices For infor-
mation on MWD Inc contact Don DuLong at 478-742-1500 or visit wwwmwdincnet
Comic Corner
New Member Listings
wwwmediumbusinessalliancecom
Contact us at Membershipmediumbusinessalliancecom
Are You a Professional
The following short quiz consists of 4 questions and will tell you whether you are qualified to be a professional
The questions are NOT that difficult
1 How do you put a giraffe into a refrigerator
The correct answer is Open the refrigerator put in the giraffe and close the door
This question tests whether you tend to do simple things in an overly complicated way
2 How do you put an elephant into a refrigerator
Open the refrigerator put in the elephant and close the refrigerator Wrong Answer
Correct Answer Open the refrigerator take out the giraffe put in the elephant and close the door
This tests your ability to think through the repercussions of your previous actions
3 The Lion King is hosting an animal conference All the animals attend except one Which animal does not attend
Correct Answer The Elephant The elephant is in the refrigerator
This tests your memory
OK even if you did not answer the first three questions correctly you still have one more chance to show your true
abilities
4 There is a river you must cross But it is inhabited by crocodiles How do you manage it
Correct Answer You swim across All the crocodiles are attending the Animal Meeting
This tests whether you learn quickly from your mistakes
According to Anderson Consulting Worldwide around 90 of the professionals they tested got all questions wrong
But many preschoolers got several correct answers Anderson Consulting says this conclusively disproves the theory
that most professionals have the brains of a four year old
THIS IS NOT INVESTMENT TAX OR LEGAL ADVICE Contact your financial advisor accountant or attorney
before making important decisions in any of these areas Medium Business Alliance LLC Copyright copy 2009 Medium
Business Alliance LLC All rights reserved This material may not be reproduced distributed transmitted cached or oth-
erwise used except with the prior written permission of Medium Business Alliance LLC
Medium Business Alliance Volume I Issue V Page 10
Page 8 Volume I Issue V
Employing touch-free spray and vacuum system tech-
nologies In areas tolerant of wet cleaning processes this
technology provides the most complete disinfection and
soil removal of any cleaning application
Deploying no-dip flat-mopping systems that use only
clean solution for increased soil removal and reduced
cross-contamination
By simply having occupants ndash all workspaces pose a risk of
spreading infection Businesses who wish to maintain
Medium Business Alliance
spotless indoor environments while meeting the larger
goal of employee well-being should review the cleaning
methods used by their current facilities manager or clean-
ing services to be sure they include the benefits of health-
based cleaning innovations
Health-based cleaning programs provide cleaner healthier
environments ndash your employees will experience fewer
sick days you will have lower associated healthcare costs
and your business will benefit from better productivity
and higher employee morale
Peter J Sheldon Sr CBSE brings over 18 years of experience in the Building Services Contracting industry to his posi-
tion as Vice President of Operations of Coverall Health-Based Cleaning SystemSM Sheldon works closely with the
Coverall sales and operations teams to spearhead initiatives that further the Companylsquos strategic objectives and help the
Company develop the most efficient and innovative cleaning processes available Sheldon is among the elite group of build-
ing service professionals to qualify for the Certified Building Service Executive designation
How To Putting a Value on Your Business By Don DuLong
Starting a business was a very exciting time in my life The wonder of what was to come Could I build and grow a viable
business What would it be like to work for myself instead of someone else Well 15 years later with the help of nu-
merous people I have accomplished the goals I set for the company So what now Sure like other business we con-
stantly are developing new services and representing new products but what will I do with this business when I am ready
to retire Can I sell it Better yet what is it worth
Sure every business owner is trying to constantly improve the value of the business but what is the business really worth
Experts will tell you that putting a value on your business is not something you should do yourself You are emotionally
attached to the business and that can prevent you from taking on objective view You can determine a ballpark value by
applying one or more different methods of business valuation I combined several different methods in order to place a
value on my company
When I started to place a value on the business the first thing I looked at was the companylsquos financial statements Just by
subtracting the businesses liabilities from its assets the book value of the business can be determined Most balance sheets
will do this for you The information on the balance sheet needs to current in order to get an accurate book value This
valuation does not take in to consideration the non tangible assets of the business
The rule of thumb method is a good way to see what your business is worth based on the value of similar businesses in
your companylsquos specific industry This method will give you a value that reflects an average value for businesses that have
sold or have been evaluated by professional firms The only drawback I found when trying to value my business using this
method was the lack of information specific to my industry The industry we work in does not have a high sell rate and
has a limited number of businesses compared to other industries I still applied the information gathered in order to get
an idea of what other business have sold for
When doing the research to see what methods businesses were using to determine their valuation I found that quite a
few businesses are applying the earnings capitalization method This method determines a businesslsquos value by comparing
the initial investment to the risk associated to the rate of return on that investment The rate of return on my business
varied from year to year and applying this method allowed me to set a value that would allow a purchaser to have a simi-
lar rate of return on the business Something was still missing though
Page 9 Medium Business Alliance Volume I Issue V
Merchant Gateway LLC is an employee-owned company We are an Independent Sales Organization (ISO) and Merchant
Service Provider (MSP) that is registered with VISA amp MasterCard to provide Merchant Services We have leveraged the
global capabilities of RBS WorldPay which is the third largest payment processor in the World ndash with the local knowledge
of our Agents to serve your business needs
Our business model is simple ndash Help Independent Merchants
1 Save Merchants $$$$
Introduce ―Cost-Plus Interchange Pricing to Small amp Medium Businesses The ―Cost-Plus pricing model was once only reserved to the ―Wal-Marts and larger businesses with
great transactional volume This will help the independent business owner compete with franchises and
larger businesses allowing them to keep more of their profits
2 Partner amp Educate Business Owners about Credit Card Processing Help business owners understand the lasted PCI compliance issues and provide to them easy to under-
stand information concerning their account in addition to getting them the best Interchange category
rate
3 ―Rate Lock for Life Program Although no one can affect the VISA and MasterCard Interchange costs we will lock in our Processing
Fees for the life of your account
4 $500 Best Rate Guarantee Challenge Simply put ndash If we cannot beat your current rate we will pay you $500 We know your time is impor-
tant and you have our commitment that we will save you money
5 Merchant Gateway Agent Program Merchant Gateway is always looking for local talented and motivated individuals to become part of our
growing movement Share in the best agent program in the industry with lifetime residual payments and
a dedicated sales team to insure your success
To take the $500 Best Rate Guarantee Challenge please fax your latest merchant services statement to (727) 231-8384
or call Phil DeConti (727) 644-1338 to discuss or answer any questions you may have Or visit them online at
wwwmerchantgatewaycom or email Phil DeConti at pdecontimerchantgatewaycom
Member Spotlight
Merchant Gateway ndash Americas Payment Choice
The most difficult part of placing a value on my business was determining what the intangible assets were worth How do
I place a value on the brand name and customer base we have developed for over 15 years How do I place a value on
the experience of the employees of the business Yes I said employees Itlsquos extremely difficult to find experienced and
dedicated employees in our industry and I felt like they added value to the business This is where the emotional part of
being a business owner comes in to play I canlsquot tell you what the intangible value of your business is because every busi-
ness is different in its own unique way So good luck in determining the value of your business and I suggest you start
taking a look at this long before you decide to sell
Don DuLong is the owner of MWD Inc which services and repairs all medium and heavy duty trucks trailers and buses When it
comes to anything in truck and heavy equipment service MWD is respected for providing quality work at reasonable prices For infor-
mation on MWD Inc contact Don DuLong at 478-742-1500 or visit wwwmwdincnet
Comic Corner
New Member Listings
wwwmediumbusinessalliancecom
Contact us at Membershipmediumbusinessalliancecom
Are You a Professional
The following short quiz consists of 4 questions and will tell you whether you are qualified to be a professional
The questions are NOT that difficult
1 How do you put a giraffe into a refrigerator
The correct answer is Open the refrigerator put in the giraffe and close the door
This question tests whether you tend to do simple things in an overly complicated way
2 How do you put an elephant into a refrigerator
Open the refrigerator put in the elephant and close the refrigerator Wrong Answer
Correct Answer Open the refrigerator take out the giraffe put in the elephant and close the door
This tests your ability to think through the repercussions of your previous actions
3 The Lion King is hosting an animal conference All the animals attend except one Which animal does not attend
Correct Answer The Elephant The elephant is in the refrigerator
This tests your memory
OK even if you did not answer the first three questions correctly you still have one more chance to show your true
abilities
4 There is a river you must cross But it is inhabited by crocodiles How do you manage it
Correct Answer You swim across All the crocodiles are attending the Animal Meeting
This tests whether you learn quickly from your mistakes
According to Anderson Consulting Worldwide around 90 of the professionals they tested got all questions wrong
But many preschoolers got several correct answers Anderson Consulting says this conclusively disproves the theory
that most professionals have the brains of a four year old
THIS IS NOT INVESTMENT TAX OR LEGAL ADVICE Contact your financial advisor accountant or attorney
before making important decisions in any of these areas Medium Business Alliance LLC Copyright copy 2009 Medium
Business Alliance LLC All rights reserved This material may not be reproduced distributed transmitted cached or oth-
erwise used except with the prior written permission of Medium Business Alliance LLC
Medium Business Alliance Volume I Issue V Page 10
Page 9 Medium Business Alliance Volume I Issue V
Merchant Gateway LLC is an employee-owned company We are an Independent Sales Organization (ISO) and Merchant
Service Provider (MSP) that is registered with VISA amp MasterCard to provide Merchant Services We have leveraged the
global capabilities of RBS WorldPay which is the third largest payment processor in the World ndash with the local knowledge
of our Agents to serve your business needs
Our business model is simple ndash Help Independent Merchants
1 Save Merchants $$$$
Introduce ―Cost-Plus Interchange Pricing to Small amp Medium Businesses The ―Cost-Plus pricing model was once only reserved to the ―Wal-Marts and larger businesses with
great transactional volume This will help the independent business owner compete with franchises and
larger businesses allowing them to keep more of their profits
2 Partner amp Educate Business Owners about Credit Card Processing Help business owners understand the lasted PCI compliance issues and provide to them easy to under-
stand information concerning their account in addition to getting them the best Interchange category
rate
3 ―Rate Lock for Life Program Although no one can affect the VISA and MasterCard Interchange costs we will lock in our Processing
Fees for the life of your account
4 $500 Best Rate Guarantee Challenge Simply put ndash If we cannot beat your current rate we will pay you $500 We know your time is impor-
tant and you have our commitment that we will save you money
5 Merchant Gateway Agent Program Merchant Gateway is always looking for local talented and motivated individuals to become part of our
growing movement Share in the best agent program in the industry with lifetime residual payments and
a dedicated sales team to insure your success
To take the $500 Best Rate Guarantee Challenge please fax your latest merchant services statement to (727) 231-8384
or call Phil DeConti (727) 644-1338 to discuss or answer any questions you may have Or visit them online at
wwwmerchantgatewaycom or email Phil DeConti at pdecontimerchantgatewaycom
Member Spotlight
Merchant Gateway ndash Americas Payment Choice
The most difficult part of placing a value on my business was determining what the intangible assets were worth How do
I place a value on the brand name and customer base we have developed for over 15 years How do I place a value on
the experience of the employees of the business Yes I said employees Itlsquos extremely difficult to find experienced and
dedicated employees in our industry and I felt like they added value to the business This is where the emotional part of
being a business owner comes in to play I canlsquot tell you what the intangible value of your business is because every busi-
ness is different in its own unique way So good luck in determining the value of your business and I suggest you start
taking a look at this long before you decide to sell
Don DuLong is the owner of MWD Inc which services and repairs all medium and heavy duty trucks trailers and buses When it
comes to anything in truck and heavy equipment service MWD is respected for providing quality work at reasonable prices For infor-
mation on MWD Inc contact Don DuLong at 478-742-1500 or visit wwwmwdincnet
Comic Corner
New Member Listings
wwwmediumbusinessalliancecom
Contact us at Membershipmediumbusinessalliancecom
Are You a Professional
The following short quiz consists of 4 questions and will tell you whether you are qualified to be a professional
The questions are NOT that difficult
1 How do you put a giraffe into a refrigerator
The correct answer is Open the refrigerator put in the giraffe and close the door
This question tests whether you tend to do simple things in an overly complicated way
2 How do you put an elephant into a refrigerator
Open the refrigerator put in the elephant and close the refrigerator Wrong Answer
Correct Answer Open the refrigerator take out the giraffe put in the elephant and close the door
This tests your ability to think through the repercussions of your previous actions
3 The Lion King is hosting an animal conference All the animals attend except one Which animal does not attend
Correct Answer The Elephant The elephant is in the refrigerator
This tests your memory
OK even if you did not answer the first three questions correctly you still have one more chance to show your true
abilities
4 There is a river you must cross But it is inhabited by crocodiles How do you manage it
Correct Answer You swim across All the crocodiles are attending the Animal Meeting
This tests whether you learn quickly from your mistakes
According to Anderson Consulting Worldwide around 90 of the professionals they tested got all questions wrong
But many preschoolers got several correct answers Anderson Consulting says this conclusively disproves the theory
that most professionals have the brains of a four year old
THIS IS NOT INVESTMENT TAX OR LEGAL ADVICE Contact your financial advisor accountant or attorney
before making important decisions in any of these areas Medium Business Alliance LLC Copyright copy 2009 Medium
Business Alliance LLC All rights reserved This material may not be reproduced distributed transmitted cached or oth-
erwise used except with the prior written permission of Medium Business Alliance LLC
Medium Business Alliance Volume I Issue V Page 10
Comic Corner
New Member Listings
wwwmediumbusinessalliancecom
Contact us at Membershipmediumbusinessalliancecom
Are You a Professional
The following short quiz consists of 4 questions and will tell you whether you are qualified to be a professional
The questions are NOT that difficult
1 How do you put a giraffe into a refrigerator
The correct answer is Open the refrigerator put in the giraffe and close the door
This question tests whether you tend to do simple things in an overly complicated way
2 How do you put an elephant into a refrigerator
Open the refrigerator put in the elephant and close the refrigerator Wrong Answer
Correct Answer Open the refrigerator take out the giraffe put in the elephant and close the door
This tests your ability to think through the repercussions of your previous actions
3 The Lion King is hosting an animal conference All the animals attend except one Which animal does not attend
Correct Answer The Elephant The elephant is in the refrigerator
This tests your memory
OK even if you did not answer the first three questions correctly you still have one more chance to show your true
abilities
4 There is a river you must cross But it is inhabited by crocodiles How do you manage it
Correct Answer You swim across All the crocodiles are attending the Animal Meeting
This tests whether you learn quickly from your mistakes
According to Anderson Consulting Worldwide around 90 of the professionals they tested got all questions wrong
But many preschoolers got several correct answers Anderson Consulting says this conclusively disproves the theory
that most professionals have the brains of a four year old
THIS IS NOT INVESTMENT TAX OR LEGAL ADVICE Contact your financial advisor accountant or attorney
before making important decisions in any of these areas Medium Business Alliance LLC Copyright copy 2009 Medium
Business Alliance LLC All rights reserved This material may not be reproduced distributed transmitted cached or oth-
erwise used except with the prior written permission of Medium Business Alliance LLC