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A Shift in Perspective on “Persuasion”

Nobody wants to be judged.

Nobody wants to be around those who make him/her feel “wrong.”

When you make people feel like crap, you may convince them to adopt your point-of-view (POV) temporarily. Buy your product, once. Join your program, once.

But you know full well that it’s not going to last.

When your POV is not in alignment with their values or beliefs, your recommended course of action is not going to resonate nor yield sustainable or meaningful results for them.

Most of us have bought products or programs because some sales copy made us feel inadequate, guilty or “wrong” and gave us the impression that we need to buy that whatever cantaloupe widget to fix the problem or even ourselves.

Yet more often than not we let the program/training/cantaloupe widget sit on our hard drive and couldn’t bring ourselves to implement, let alone get results.

It’s not that the strategies and tactics aren’t sound. It’s more likely that because the approach and worldview are different from our own, and the misalignment doesn’t inspire us to take action and create meaningful results.

It’s nobody’s fault. The fact that I’m different from you doesn’t make you or me wrong.

It takes a lot of awareness to be truly inclusive and open-minded. Not open-minded according to what “open-minded” people should look and sound like.

It doesn’t mean you’ve to be plain vanilla so you don’t offend anybody.

The first thing I tell my clients is to have a POV. If they aren’t willing to step up and put a stake in the ground, they’re fired.

One of my favorite exercises to get clients to draw the line in the sand so they can nail their unique positioning is to ask – what would I say or do, if I were to offend XYZ (who are most likely “authorities” that hold some “holier than thou” opinions.)

While having a POV, we also need to acknowledge that our unique POV is just one perspective.

We do what’s TRUE for ourselves, and we also allow others to do what’s true for them.

If your POV resonates with a community, they’re your people. They’ll be naturally drawn to you because you’re YOU.

It’s not fair for others to make you conform to their POV, and it’s not fair either to be “holier than thou” and make others feel bad when they don’t share your opinions – even if you’re an expert in your field.

We don’t have to make others wrong, or feel like crap, in order to convince them that they need to buy our stuff to make themselves “right.”

Strong-arming people into buying your products or services by making them feel judged, criticized or scrutinized can backfire.

If you’re clear about YOUR values, beliefs and convictions, and communicate them congruently, those who share the same perspectives will be drawn to you.

When your clients share your POV, they can use your products and services in the most effective way possible. They get results, and you get loyal clients who spread the word for you. Win-win.

Write from a place of compassion. Invite conversation.

Being a thought leader or an expert doesn’t mean you’ve to communicate your idea in a “my way or the highway” manner, putting yourself on the pedestal.

The fear of not being good enough, and/or the fear of being criticized drive us to become defensive and put up a wall that prevents us from creating resonance with our audience.

Instead of convincing those who have a different worldview that they need your stuff by using tactics that aren’t in alignment with YOU (which is a lot of work anyway,) why not speak to the inkling of those who shares your Truth… let them know that you’re there for them. Let them know that you share their POV. Let them know that they can be successful by sticking with what’s true for them.

When you can stop making others wrong for not having the same POV as you do, you also develop the awareness that will help you become discerning and selective (and “immune”) to all the trainings, programs, tools and resources that promise to solve all your “pain and sufferings.”

You develop the awareness that other’s “success formula” are not “absolute.” They may not be true for you. What work for the creators – their unique circumstances, personality and strengths – may not work for you.

You’re not wrong if you don’t follow what they say you should do. You’re not incompetent if you aren’t getting results “as advertised.”

You develop the confidence that will support you to find the most suitable and powerful expression for your talents, experiences and superpowers – an expression that most resonates with your community – and get off the marketing hamster wheel for good.

 

How International Standards Are Beneficial?

It is important to have some particular standards in our day-to-day life. They act as the backbone for our civilization, guarantee safety, and eminence of services and products. They also facilitate international employment and help in improving our living environment. Agreement to these standards helps customers to reassure that services, products, and organizations are safe, trustworthy and excellent for the environment.

These standards which are set are nothing but strategic tools and procedure, in order to help organisations deal with some of the largely demanding challenges in modern days of business. They guarantee that the business operations undertaken by few organisations are efficient and also help to increase their productivity. They help companies to access new markets.

Benefit for businesses

There are various benefits for businesses when they follow standards:

• They help to reduce cost, through various improved processes and systems.
• They enhance customer satisfaction by providing improved safety, processes and quality.
• They help organizations and companies to access various new markets by ensuring the compatibility of goods and services.
• They help to minimize the impact of a few products on the living environment.

Benefit for consumers

Other than organisations, these standards also have benefits which can be utilised by the consumers. There are more than 21000 standards which help consumers to improve their living standards.

When the goods and services match to such standards, consumers gain confidence that the products are reliable and safe. For instance, standards for toy safety, road safety are a selection of those standards that help in making this world a better place to live in. The standards maintained on water, air and soil quality and also on emissions of various gases and radiations contribute to the efforts to protect the environment and the wellbeing of the citizens.

For government bodies

Other than organizations and consumers, the standards also play an important role for the government. They act as global expertise and are a fundamental resource for the government while developing public policy. National governments make use of these standards to maintain public policy, which has various benefits such as:

• To get an expert opinion – By incorporating these standards into national policies, a government can have an advantage of the opinion of experts without having to call the service authority directly.

• They help in opening up worldwide trade – These standards are implemented by various governments, thus combining them in their national regulations ensuring requirement for imports and exports all over the world, facilitating the movement of products and services from one country to another.

Step to Gain Recognition Under Startup India Program

India has the third largest startup ecosystem after U.S. and Britain. India is the youngest startup nation with more than 72% of the population below 35 years of age. Prime Minister Narendra Modi has encouraged the youth of India to believe in their ideas through Startup India and Standup India initiative. He sees technology and innovation as a way to transform India.

The Startup India initiative aims to help people with creative ideas realize their potential and help them start their own business. A startup India Action plan is formed to help budding entrepreneurs concentrate on their core business. This flagship of Government of India aims at nurturing the Startups of India and driving sustainable economic growth.

The Startup India Plan got rationalized on 1st April 2016 and since then it has addressed more than 12,500 queries through social media, e-mails and telephones.

Blooming buds can easily avail benefits under the Startup India programme like relaxation in environmental and labour laws. Often Startups are too much stressed with regulatory formalities requiring compliance with environmental and labour laws. Many a times people are not aware of many rules and regulations, as a result they often end up being a victim of intrusive action by the regulatory bodies. The program will allow startups to self-certify their business through a mobile app, and avail 9 labour and environmental benefits. Also there will be no inspection on these startups for three years.

The question which arises here is how will startups gain recognition under this flagship.

There are certain criteria which a startup needs to do before gaining recognition.

The legal entity of a startup is either a Private Limited Company, Limited Liability Partnership or a Partnership.

The age of a startup is not more than five years.

The annual turnover of a startup must not exceed 25 crores.

The next step would be to gain a recommendation letter from any one of the following:

a. be supported by a recommendation (with regard to innovative nature of business), in a format specified by Department of Industry Policy and Promotion, from an incubator established in a post-graduate college in India; or

b. be supported by an incubator funded (to the project) from government of India as part of any specified scheme to promote innovation; or

c. be supported by a recommendation (with regard to innovative nature of business), in a format specified by Department of Industry Policy and Promotion, from an incubator recognized by government of India; or

d. be funded by an Incubation Fund/Angel Fund/Private Equity Fund/Accelerator/Angel Network duly registered with Security Exchange Board of India that endorses creative nature of the business; or

e. be funded by the Government of India as part of any specified scheme to promote innovation; or

f. a patent granted by the Indian Patent and Trademark Office in areas affiliated with the nature of business being promoted.

A startup will gain a recommendation letter only if it is working towards the innovation, deployment development of a product or service or it is adding value to the existing product or service.

Once the startup gets a recommendation letter, it gains recognition and becomes eligible for environmental and labour law benefits. To get benefits of tax exemption for three years and Indian Patent Rights, a startup needs to gain approval from Department of Industry Policy and Promotion and inter-ministerial board.

 

Building Confidence in Business

Do you sometimes feel like you just don’t have the bold confidence necessary to succeed in business? Maybe you need a boost in your business confidence, or maybe you are just getting started and need some extra confidence to take that first step. Here are some tips for building confidence in business.

Get Educated

One of the most important confidence-builders is knowing that you know what you know! You may have a lot of great business ideas but you don’t have the know-how to make it happen. Educate yourself about how to market your product or service – what is your competition? How can you reach your demographic? What kinds of advertising should you do?

You may need some nuts-and-bolts education, too – for example, how do you set up an effective website? You may need some practical knowledge to help you reach your goals.

There are many ways to educate yourself in business. You can hire a business coach to help you one-on-one. You can also download eBooks, sign up with boards and forums where business-savvy people congregate, and ask questions of successful people.

Get Focused

Getting educated is key to getting focused. You really can’t boldly march forward if you don’t know what direction you’re going in. Take some time to focus on your business. What, exactly, are you doing? What do you want to do? Who is your target market or demographic?

If you have diverse interests, this can be difficult – but it’s even more necessary, because diverse interests can be distracting if you don’t focus on one at a time. So once you get yourself educated about your market and what you want to do, you can launch a focused business (or focus an existing one).

Don’t Compare Yourself to Others

We all know that businessman or woman – the one who has written ten books, has a dozen jobs, and has a perfect house. You may not be that kind of person, and such a schedule and goals are just not realistic for you. It’s really not advantageous to compare yourself to others. Set your own realistic standards and compare your progress against those.

Believe in Your Success

A lot of people swear by the power of positive thinking. It is said that visualizing your goals can attract the very things you need to reach your goals. Even if you don’t get into the visualization bit, you can benefit from believing in your business and your own competence.

Once you get confident, you will be much more likely to attract clients, which in turn will boost your confidence. It’s a good cycle to get into.

Importance Of Appointed Date & Effective Date in Restructuring

Introduction:

In the case of merger and demerger, two dates are crucial, the “Appointed Date” and secondly the “Effective Date”. Corporate managers spend a lot of time to plan the exact timing of these dates. ‘Appointed Date’ is normally arranged to secure the interests & objects of the respective companies. And ‘Effective Date’ is finalized by High Court depends on upon filing of a final order of High Court with Registrar of Companies.

Importance of ‘Appointed Date’ & ‘Effective Date’:

Any scheme of compromise or arrangement should identify a date in the scheme itself as ‘Appointed Date’. This ‘appointed date’ is crucial for arriving at values of assets and liabilities appearing in the books of Accounts both for the purpose of the transfer to the Transferee company and also for arriving at the value of shares for the transferor and transferee company viz. exchange ratio. Generally, the first day of a month or the first day of a financial year is identified as the ‘appointed date’, though the Court has the discretion to decide any date as ‘transfer date’.

The ‘Effective Date’ on the other hand is the date on which the transferee company files the order of the High Court sanctioning the scheme with the Registrar of Companies for registration and when the order has so filed the amalgamation or arrangement becomes effective or having come into force from the ‘Appointed date’. The effective date is subsequent date and the company has no control over it.

Issues regarding ‘Appointed Date’ & ‘Effective Date’ and their effects on Various Aspects of Restructuring:

1. Identification of Assets & Liabilities of Transferor Company:
As per the requirements of Section 391 to 394 of the Companies Act, 1956 the Transferor company should identify and quantify the assets and liabilities which are sought to be transferred to the transferee company under merger or demerger. This identification & quantification of assets and liabilities should be done as on Appointed Date.

The details of such assets & liabilities may be annexed as a schedule to the scheme. This identification gives certainty to the scheme, as members of both the companies get a clear idea about what is going to be transferred?

2. Changes in the name/status of the company after Appointed Date:
There could be some changes in name, address or status of the company after the appointed date. Normally such changes do not affect the sanction of the scheme before High Court unless they adversely affect the rights & interests or obligations of the company and/or its members and creditors.

3. Accounting Treatment:
Normally the Transferee Company should, upon the Scheme coming into effect on effective date record the assets and liabilities of the Transferor Company vested in it pursuant to the Scheme, at the fair values thereof at the close of business of the day immediately preceding the Appointed Date.

4. Increase in share capital & Appointed Date:
The shares are allotted only after the scheme is sanctioned by the court and not before. Further, the increase of authorised share capital is always upon sanctioning of the scheme. Hence any objection to the scheme on the ground that on appointed date the share capital of the Transferee Company was not sufficient to give effect to the scheme cannot be sustained.

5. Nature of Business:
From the Appointed Date and till the Effective Date transferor company should act as a trustee of a transferee company.

The Transferor Companies should carry on all their respective business and activities and should be deemed to have held or stood possessed of and should hold and stand possessed all the said Assets for and on account of and in trust for the Transferee Company.

All the profits or income accruing or arising to the Transferor Companies or expenditure or losses arising or incurred by the Transferor Companies should for all purposes be treated and accrued as the profits and income or expenditure or losses of the Transferee Company, as the case may be.

The Transferor Companies should carry on their respective business activities with reasonable diligence, business prudence and should not alienate, charge, mortgage, encumber or otherwise deal with the said assets or any part thereof except in the ordinary course of business or pursuant to any pre-existing obligation undertaken by the Transferor Companies prior to the Appointed Date except with prior written consent of the Transferee Company.

The Transferor Companies should not, without prior written consent of the Transferee Company, undertake any new business.

The Transferor Companies should not, without prior written consent of the Transferee Company, take any major policy decisions in respect of the management of the Company and for the business of the Company and should not change their present capital structure.

6. Employee Transfer:
Normally in any merger/amalgamation, all employees of the Transferor Company in service on the Effective Date could become employees of the Transferee Company on such date without any break or interruption in service and on terms and conditions not less favorable than those subsisting with reference to the Transferor Company as on the effective date. The main object of transfer of any undertaking under the scheme is to see the continuance of business, at that undertaking, under the control of Transferee Company. So the transferor company should arrange to maintain the cadre and number in service on the effective date who are willing to get transferred to the transferee company

7. Declaration of Dividend: Transferee Company
Dividend declared by the transferee company, after the Appointed Date, is payable to members of the transferor company also. And this does not violate the provisions of section 205 of Companies Act, 1956. While it is true that unless court sanctions the scheme, it would not become effective, but once the court accords its sanction, it would become effective from the Appointed Date. So the shareholders of Transferor Company become shareholders of Transferee Company from ‘Appointed Date’ itself. Hence they are entitled to any dividend declared by Transferee Company after ‘Appointed Date’.

Record Date:

As this is a sensitive issue to the shareholders, any ambiguity in this regard could be avoided by providing a clause in the Scheme stating that the transferor company’s shareholders should be entitled to such dividend, rights and other benefits as and from ‘Record Date’ to be fixed by the Board of transferee company upon scheme becoming effective as per the court sanction..

8. Dividend, Profit And Bonus/Rights Shares: Transferor Company
The Transferor Company should not without the prior written consent of the Transferee Company declare any dividend, whether interim or final, for the financial year ending on or after the Appointed Date and subsequent financial years.

The Transferor Company should not issue or allot any Bonus Shares or Right Bonus Shares out of it’s Authorised or unissued Share Capital on or after the Appointed Date.

Normally, the profits of the Transferor Company from the appointed date should belong to and be the profits of the Transferee Company and will be available to the Transferee Company for being disposed of in any manner as it thinks fit.

The Transferor Company should not, except with the written consent of the Board of Directors of the Transferee Company, alter its paid up capital structure by making a preferential allotment of shares or otherwise, once the Scheme is approved by the Board of Directors of the Transferee Company.

9. Tax Liability:
The basic principle behind deciding cut-off dates for direct or indirect tax liability can be explained as under,

For day to day activities, the liability shifts only upon effective date and for any other activity such as annual assessment etc., the cut-off date will be appointed date.

10. Indirect Tax Implications:
Indirect taxes are generally levied upon activities like services, manufacturing/production of goods, a sale of goods etc. After the ‘appointed date’; though these activities are concerned with ‘transferred undertaking’, their ultimate effect on financial position will normally be shown in the books of account of Transferee Company only after the effective date. So for an indirect taxes cut-off date is ‘Effective date’. Till effective date, Transferor Company is liable to pay the indirect taxes if any.

Sales Tax Deferral Scheme:

Where the transferor company which was enjoying a deferral scheme, transferred as a unit the whole business without obtaining prior permission from the prescribed authority, the transferee is not entitled to continuation of deferral. As such deferral schemes are created for specific areas or for specific industries with certain pre-conditions so it is necessary that prior approval from the concerned authority may be obtained. Further for a continuance of such deferral scheme the transferee company should fulfill all the requirements for such continuance.

1. Excise Duty:
On amalgamation, on effective date Transferee Company takes over the manufacturing activity of Transferor Company and therefore, the transferor company has to surrender its registration under Excise Rules. Further Transferee Company is required to apply and obtain fresh registration of the premises for carrying on manufacturing activity. On sanction of a scheme, any credit on inputs availed by the transferee company on or after Appointed Date, which may be either lying in stock or may be contained in the work in progress. On sanction of a scheme, such credit is also to be transferred to the transferee company. Such transfer of credit is allowed only if the stock of inputs or work in progress is also transferred along with the factory to the new site or new ownership. The basic condition is that the manufacturing unit remains intact and continues to manufacture the same goods with the very same inputs.

2. Liability for evasion of Excise Duty:
Normally the liability for penalties would remain the liability of those who committed the offense as a manufacturer and cannot be transferred in law to a successor. So any liability for evasion of Excise Duty after Appointed Date and till Effective Date should be discharged by the manufacturer under the control of Transferor Company.

3. Re- assessment and refilling of assessment:
During the intervening period from Appointed Date to Effective Date, both transferor & transferee company would have filed various declarations for prices and classifications, assessment of tax liabilities, claimed exemptions and so on as independent entities. These declarations may not remain so on scheme becoming effective. The Supreme Court in the case of Marshall Sons & Co. (India) Ltd. vs. ITO (1997 [223] ITR 809) has held that the date of amalgamation/transfer is the date specified in the scheme or the date specified by the Courts. Therefore, as soon as the formalities are completed, the transfer becomes effective and related back to the date of transfer specified by the parties/court. A logical corollary of this is that the activities of both the entities would be clubbed effective from that date and as a result, there may be a change in facts. Hence these earlier declarations would have to be re-determined.

Though it is not legally binding on the companies, the concerned departments should be informed about such proposed Arrangement or Amalgamation well in advance. In the event of omission of such notice of amalgamation, the department may allege the company for suppression of facts with an intention to evade duty and invoke extended period of five years for assessment.

4. Income Tax Issues:
Quite often on the basis of the ‘appointed date’ the rights and liabilities of the transferor and transferee are segregated. This date is the date on which the merger takes place for the purposes of the Income Tax Act. So while computing assessment of Income Tax cut-off date is ‘appointed date’. So till effective date ‘TDS’ is the responsibility of Transferor Company.

The decision in Union of India v. Ambalal Sarabhai (55 Comp. Cas. 623) clearly illustrates the significance of the ‘appointed date’ of the merger. In this case, the appointed date in the original scheme of amalgamation of two companies was July 1, 1981. Under the modified scheme the appointed date was shifted to April 1, 1980, which was also the first day of the accounting year of the transferor company. The IT department objected to the scheme on the ground that by shifting the date the transferee company was seeking to set-off, by circumventing the provisions of S.72A, the losses of the transferor company for the accounting year 1980-81 against the profits of the transferee company. The High Court, dismissing the objections of the Income Tax department, held that, “It is true that incidentally as a result of shifting the date, the transferee company will get the advantage of setting off the loss but that could hardly be considered good or sufficient ground for refusing to sanction the modified scheme. When the transferee company is taking over liabilities along with the assets of the transferor company there is nothing if the transferee company evolves a scheme so as to take as much advantage as possible as may be permissible according to law.”

So the companies should consider their objectives from the scheme and then decide the actual date on which the merger should take effect.

5. Stamp Duty Assessment:
As in other cases of conveyance, the duty is levied on the basis of true market value on the date of execution of the instrument. But in the cases of merger/amalgamation of listed company stamp duty is levied with reference to the market value of shares on appointed date. For unlisted companies, it may be either appointed date as mentioned in the scheme or date of an order of high court or date of registration of the order.

Though market value as on appointed date is to be referred for assessment of duty, the companies may rely on the Supreme Court’s judgment in Marshall case and may ask for the values as on date of valuation which may be much after appointed date. The companies may also argue and refer to the effective date to claim more depreciation especially in the market value of the immovable properties.

The companies should adopt the appropriate date which will give a more beneficial assessment of duty.

Conclusion:

The companies are free to decide any ‘Appointed Date’ for their schemes. As this ‘appointed date’ acts as a cut-off date for many aspects of merger/demerger, more emphasis should be given on this before finalizing any scheme. So any error in finalizing ‘Appointed Date’ may affect adversely to the interests of Company and its shareholders. At the same time judicious selection of ‘Appointed Date’ may create more value by minimizing Tax liability, resolving employee’s issues and bringing certainty towards the asset-liability structure of transferee company after the merger/demerger. It also helps to observe selective pick & drop option for any distribution of dividend or bonus shares to the shareholders. So from this, we may conclude that ‘Appointed Date’ if selected wisely may ensure successful M & A, at the same time any error in selecting appropriate ‘Appointed Date’ may ruin an otherwise sound merger deal.

Ask and You Will Get It

“I know you think you should be able to do everything yourself” I say to the group I spoke to yesterday. Somewhere along the path of our lives we have adopted some notion that if we have to ask for help it means we are weak, or incompetent or some other version of insufficient. In fact, when I inquire into this, it may be rooted for many of us in our young childhood when our parents were trying to have us get some independence. Obviously, that is what needed to happen when we were young and exactly what our parents should have been teaching it. However, as we as adults, are living out our lives and in particular, in our careers, this continuation of this thinking and acting habit can be the limiter of what is possible for us and our own success.

I can think back to my own upbringing as one of five children-I learned to cook a whole meal for my family by age 8, and I was fiercely independent. This served me well in so many ways and allowed me to be successful in school first, then as a young wife and mother and then as a divorced single parent. As someone who changed careers in mid-life, I owe part of that successful transition to my ability to achieve on my own. As an entrepreneur, and as a coach, what I have observed, and coached numerous people on, independence can also be detrimental to the fullest opportunity of success.

One of the most interesting and confounding dynamics in this situation is that when I ask people what experience really moved and touched their soul and made them feel fulfilled- almost without exception, they tell me some incident in which they helped someone else out. If you observe what happens in times of national or international crisis, you will see scores of people coming to aid other people. It feels good to help another person, for no reason, other than they need it and you can give that help. However, what is crazy is- we love helping others and yet don’t want to be helped or ask for help ourselves! Follow this for a minute- we feel good when we help, we won’t ask for or (often) allow others to help us-so there seems to be a bit of a conundrum! We have to allow ourselves to ask for support and in doing so, we allow people the opportunity of feeling good because they contributed to us. Pretty great, don’t you think!

The other important factor to consider is when we ask for support, we can achieve our dreams. You and I may be great at whatever we do, we might be brilliant and accomplished, and, at the same time, we are limited. Having others work with us, allows us to achieve more.

Here is the most important thing-it does not mean you are weak, or in any way insufficient because you ask for help. Consider it means you are committed. It means you are smart enough to utilize the resources around you in other people.

This is the best example of win-win that I know of. You want to achieve whatever it is you want and you face the reality that with support and the contribution of others, you can go farther. You ask for support. You give those that say yes and support you an opportunity to contribute and feel good about themselves for that. Seems like a pretty good deal!

Hiring An Auction Company

Estimating your assets value:

Typically, one of the first questions a business owner will ask me is, “how much will the assets bring at an auction”. After taking the time to review the assets, the auctioneer should give the client a conservative estimate of the sale based upon his experience and the current market trends. It is important that the company give realistic expectations so the seller can make informed decisions based on their best interest.

Compensation and Expenses:

Is the company you are considering working for you or against you? The agreement you decide may determine this.

A business owner should carefully consider how the auction company is compensated. The most common commission structures include: straight commission, outright purchase of assets, guaranteed base with a split above to both auctioneer and seller, guaranteed base with anything above going to auctioneer or a flat fee structure.

In a straight commission structure, the company is paid an agreed upon percentage of the total sale.

In an outright purchase agreement, the auctioneer simply becomes your end buyer. The company purchases your assets and relocates them. While this can be an option in some unique situations, keep in mind that they will want to purchase your assets at a very reduced price to make a profit at a later date.

In a minimum base guarantee, the auction company guarantees the seller that the auction will generate a minimum amount of sales. Anything above that amount either goes to the auction company or split with the seller. While a seller might feel more comfortable doing an auction knowing that he is guaranteed a minimum amount for his sale, keep in mind that it is the best interest of the auction company to secure a minimum base price as low as possible in order reduce their financial liability to the seller and secure higher compensation for the sale.

In a flat fee structure, the auctioneer agrees to show up for the sale and call the auction. There is no incentive for the auctioneer to get the best prices for your assets. The auction company is compensated regardless of the outcome of your sale.

What is the best option for business owners? In my experience, an agreed upon straight commission structure. This puts the responsibility on the auction company to offer the best outcome for everyone involved. There is an incentive for the auction company to work hard for both parties, set up and run a professional sale, get the highest bid and sell every item on the inventory. Successful auctions translate to a higher bottom line for both the seller and the auction company.

Auction Expenses:

In most auction agreements the expenses to conduct an auction are passed to the seller. If the auction company pays for the expenses, it is simply absorbed in higher commission rates.

All expenses should be agreed upon in advance in a written contract. Typical expenses will include the costs of advertising, labor, legal fees, travel, equipment rentals, security, postage and printing. A reputable auction company will be able to estimate all expenses based upon their experience in previous auctions. An agreement should be actual costs charged as expenses, not an estimated amount.

Advertising is typically the highest cost in conducting an auction. The auction company needs to set up an advertising campaign that will promote the sale to its best advantage and not overspend to simply advertise the auction company.

Once the auction is complete, the auction company should provide a complete breakdown of all expenses to the seller, including copies of receipts within the auction summary report.

Buyer’s Premium:

What is a buyer’s premium? If you attend auctions regularly, you are very familiar with this term. The auction company charges a fee to the buyer when they buy an item at auction.

The buyer’s premium has been around since the 1980’s and is standard auction practice. It was first used by auction houses to help offset costs of running brick and mortar permanent auction facilities. Since then, it has spread to all aspects of the auction industry. It is prominent in online auctions and allows auction companies to cover added expenses incurred from online sales.

It is the responsibility of the auction company to provide clear disclosure of the buyer’s premium to both the buyers and the sellers. Those not familiar with auctions are often taken back by the buyer’s premium. They looked upon it as an under handed way for the auction company to make more money. Reputable auction companies will provide full disclosure within the auction contract, advertisement and bidder registration.

Typically, an auction company will charge online buyers a higher buyer’s premium percentage than those attending an auction in person. Extra fees are incurred with online bidding and are charged accordingly to online buyers. This provides the seller a level playing field for both online buyers and those attending the auction in person. Without the buyer’s premium, there is no way to do this.

Pre-Sales:

We’ve all been there. We’re looking forward to attending an auction only to find that some items were sold prior to the auction date.

As an auctioneer with over thirty-six years of experience, I can honestly state that pre-sales will hurt an auction. When a company decides to liquidate their assets, it is easy to sell off high-end pieces of equipment through online sources, equipment vendors or to other businesses. The seller receives instant cash and avoids paying a commission to an auction company.

Auctioneer’s find themselves appearing to acting in a self-serving capacity when potential clients say they are planning to sell off parts of their inventory prior to an auction. It’s hard not to consider the auctioneer’s commission when they warn you not to pre-sell anything. Yes, the auctioneer wants to earn a commission on those sales but it is more important that the auctioneer protect the sale from potential negative backlash that comes from pre-selling. The buying public knows when an auction has been “cherry picked” prior to the sale and it reflects in their bidding. It becomes a sale of “leftovers” and that impacts prices.

A buyer who purchases prior to the auction usually does not attend the sale. They already bought equipment at a good price with no competition. If they do attend the auction, they tend to let others know of their great pre-sale purchases which again, impacts prices and the overall excitement of the sale.

It is important to understand that auctions work best with a complete inventory. You want competition on your higher end equipment. The easy to sell items make it possible to gain respectable prices for hard to sell items.

When a business owner decides to liquidate their equipment assets, there is only one opportunity to do it right. Hiring a reputable auction company will assist you with a professional, orderly and timely liquidation.

 

How To Benefit From Effective Capital Growth Management

It is very important in business to earn sufficient cash to fund your operations. However, doing this alone is not enough. It is not enough to simply be able to afford the bills, shoulder the basic costs, and pay your employees on time. It is not enough to simply get even.

If you want to drive your business to its full potential, then you will have to set your sights further. You have to aim for expansion and push for growth. Because when you are in business, staying still and unchanging can be hazardous to your survival. To make growth happen, you will need capital. You will also need to understand what it is and how you can make it work for your business.

If you are a small enterprise or just starting up, you will need to seek capital from the best source available to you. It may come from equity, loans, grants or additional sales or revenue. But for many small and medium-sized businesses, the proven approach to more effective capital growth management is to find the right business banking partner. An internationally recognised commercial bank can help you access financial solutions to implement effective actions to fuel growth in your business.

With this, you can gain the trust of new partners, explore new markets locally or overseas with more confidence, access cross-border funding and other financial services, improve cash flow by bridging the gap during payment settlement period, get expert help in assessing market risks, establish business relationships with the help of letters of credit and guarantees and inject cash into operational finances.

And by the time you get hold of growth capital, you can use it for a variety of projects or endeavours for the business. If you have a great idea, you may channel the funds toward project development which can then lead to new product or service launch.

If you are seeking to improve business efficiency and the quality of your products and services, you can invest in acquiring new assets, from new facilities and technology upgrades to additional equipment, new software or programs, and more. Growth capital may also be used for strengthening vital components of the business. If you’re gearing to reach out to more customers, you can use it to empower your sales and marketing strategy, or expand toward new territories while at the same time, you can also opt to capitalise on human resource. This is how you will benefit from effective capital growth management.

Healthy Employees Means Healthy Business

Is your employee’s health a liability for your company? Have that one person in the office who is always calling in sick? You can’t force employees to exercise or eat healthy, but you can certainly encourage healthier behaviors. By offering healthier snacking options and incentives for healthy decisions, you can not only boost the morale of your team, but also help to keep your business running smoothly.

Wellness programs are a growing trend in the work place. These programs offer many different benefits to the employees as well as workers themselves. High cholesterol, cardiovascular disease, obesity, high blood pressure and lack of exercise are just a few of the typical employee health risks. In fact, according to MediFit, 70-90% of health care spending is caused by preventable, modifiable health risks. By enforcing a wellness program in your office, you can help eliminate many of these risks, leading to a happier, more efficient and most importantly healthier work place!

Many jobs involve sitting at a desk for long periods of time, short, unhealthy lunches, and everyone catching that same bug that’s been going around. Just making a few simple changes such as starting a walking lunch group where before your break you all walk around the building for 5 minutes, or cutting back on the number of donuts in the break room can make significant changes. While there are many different ways to go about making your officer healthier, it’s best to test different options and slowly introduce healthier programs to see what works best in your company.

One great way to help promote healthier habits in your work space is to offer employees healthier options. Many offices have vending machines full of pop, chips, candy bars, and the like. When employees are crunched for time or forget to pack their lunch, they are likely to go straight for these unhealthy options. Many companies now-a-days are offering “healthy vending”. These machines are stocked with many natural, organic, even gluten free options that are better for employees but taste great. This simple change in machines can help ignite a spark in your employees to make healthier decisions and realize that healthy doesn’t have to be boring.

Not only are these healthier options going to be good for your employees, they also benefit the business as a whole. Sugary snacks and drinks may give employees that burst of energy they need, but often lead to a crash which makes them less productive than they were before. Consistently bad eating habits and lack of exercise can lead to many healthy issues and poor immune systems meaning employees take far more sick days and let’s face it, once one person gets sick, they all get sick. Natural foods full of protein and natural sugars are proven to boost energy and keep it going longer than sugary snacks making employees that much more productive. By promoting a healthier workspace, you are helping to eliminate some of these problems which means you’re not only improving the lives of your employees, but also the life of your business.

No matter what actions you take, even the simplest changes can be a great stepping stone to a healthier and happier work environment. From short walks to a vending overhaul, every little bit helps. So do some research and get on your way to a healthier workplace!