Upgrade Your Business With a Mobile-Friendly Website

We all know that times are a-changin’. That means many things for your business, and keeping it modern and up to date is absolutely critical for long-term success, especially when considering the harrowing fact that 90% of new businesses do not stay afloat. One of the most significant developments to take into account is how we actually view websites. A very significant shift took place recently, when mobile web usage overtook desktops for the first time and now nearly half of consumers will not revisit a website if it doesn’t load properly on their mobile devices.

Google has repeatedly warned website-owners of this change, and now even offers a test where you can see if your website is mobile-friendly. If you do not pass the Google test, implement the following tips to make your business website mobile-friendly, and therefore both accessible and relevant.

Responsive or Adaptive

Before stepping into the future of mobile-friendly design, first consider if you want a responsive or adaptive web design. The former is when your website “responds” to the device it is being viewed on, and then adjusts accordingly. The latter is when you create different website designs to accommodate different devices. While there are pros and cons to either option, most mobile-friendly websites incorporate responsive design. Make your choice.

Mobile-Friendly Templates

Regardless of how many interesting features your website may have, none of them are relevant if people cannot actually access them. It makes sense to start with the basics, which is your overall website template. No matter when you first launched your business site, there are so many designs available now that are created specifically to provide practical usability for mobile access, and the best part is, you never have to abandon desktop users, as the designs are meant to look great on any viewing platform! Upgrading your design template may even result in a fresher looking overall website too, which is always a plus!

Use High-Resolution Images

It’s not only the scale of a website that’s affected by the use of mobile devices - fortunately or perhaps unfortunately, so is picture quality. Just as you can now see a world of difference when watching television in HD, the same applies to photos on newer phone models. Considering the rise of high-definition screens, pictures you use on any professional website must be extremely high-resolution to avoid appearing pixelated or blurry, and therefore unprofessional, on mobile devices.

Never Settle

Never stop refining your website. There are so many add-ons and features being developed constantly, and by using and incorporating them, you can keep giving your website mini makeovers. Becoming mobile-friendly is the new standard. Keeping your website hip and modern is an ongoing process.

It doesn’t matter what your website is about - a restaurant, a bakery, a tailor shop or a business blog, if you want it to remain successful in this ever-changing world, you must adapt to stay relevant. With the constant increase of mobile users, make sure to follow the above steps in order to upgrade both your website and your business.

Photo by Rami Al-zayat on Unsplash,   Article by Jackie

Analyticals don’t rule (But they do ask questions)

ANALYTICALS: GOOD TO THE LAST OBJECTION 

 

Pivotal analyticals don't rule

 

Two questions.

Question #1: When was the last time you sat down and listed all the things that people suspect or misunderstand about your organization?

Question #2: Do you depend on statistics to make your case? Maybe you're keen to send out an annual appeal letter lavishly buttered with service stats? "Our dedicated staff of eight plus our 27 volunteers delivered 1,892 evening meals to 1,230 addresses in six counties, seven days a week, 52 weeks a year." The McDonald's approach: 22 trillion served.

If your answer to the first question is "never," and your answer to the second question is "certainly," then it's time you learned more about "the Analytical," one of the four personality types you'll encounter in every audience - in every brain, in fact, including your own.

[The other three personalities? The Amiable. The Bottom-Liner. The Expressive. More about these in upcoming newsletters. Let me just say this: speaking to all four personality types is ESSENTIAL to successful communications. But I digress.]

The Analytical is an information glutton who feasts on documentation and statistical evidence. Sounds good? Not really. Because the other thing you should know about the Analytical is this: he/she is bad at making decisions.

My point? I have two.

First: Don't waste too much time on Analyticals. Analyticals represent just 25% of your audience - and they're the 25% who can't make up their minds. (There is one important exception to this rule: answering objections. See below.)

Second: If you hope statistics will persuade people to give your organization money, prepare to be disappointed. Statistics are weak persuaders. They aim for the head, not the heart, and leave donors cold.

Focus on the other three personality types. They are 75% of your audience. They are just fine at making decisions. But - warning - they will NOT be moved by a wall of statistics. Statistics are unemotional (not good for the Amiable), abstract (not good for the Expressive), and too easily misinterpreted (not good for the Bottom-Liner).

But let's return to the Analytical and the issue of answering objections.

Here's how the Analytical part of your mind thinks.

A recent survey asked donors to guess how much charities spend on administration (salaries, fundraising, etc.). Donors were extremely pessimistic. They guessed that 60% of every dollar they gave went to administration. I was amazed: even though these donors were willing to give their hard-earned money, they remained more than a little cynical about the good intentions (or efficiency, anyway) of the charities they supported. Guilty until proven innocent, was the essence. Imagine what these donors might give, if they knew that the charity actually only spent 15% on administration and 85% on changing the world for the better?

Why were they so sceptical? Has everyone lost their faith in the basic honesty of others? Nope. (Well, actually they have, according to the research in a bestseller called BOWLING ALONE. But that's another discussion, best savoured with beer.)

Doubts and objections are just garden-variety human nature at work. You don't think our species became so grotesquely successful by being gullible, do you? Doubt played - and continues to play - a vital role in species survival.

Be prepared. Any communications - your newsletter, Web site, brochure, and certainly your fundraising appeals - will awaken the Analytical response in readers, especially in people who don't know you well.

And the Analytical part of your audience comes well-stocked with suspicions and doubts (read: misconceptions) about your organization.

How much of every dollar that is donated to a food bank actually ends up feeding the hungry? Is that self-satisfied community foundation really just a club for rich folks? Do all the fancy theories behind a charter school truly cause kids to learn better? Does that in-prison counselling service end up coddling criminals? Are zoos really just "animal prisons" by another name? You get the idea. Your only defence is to answer objections early and often.

HINT: One of the best ways I know to get doubting Analyticals on your side is with testimonial. The Jewish Rehabilitation Center for Aged of the North Shore (MA), a nursing home, fills the margins of its brochure with reassuring soundbites like, "We never considered anyplace else for our parents." The National Parks Conservation Association (DC), which raises some of its income through guided tours, runs in its catalogue signed notes from recent customers: "I probably learned more on this trip than any I've ever been on. The guides were exceptional, patient, even-tempered, knowledgeable and FUN."

Got testimonial? Use it.

 

Author:  Tom Ahern for  When You Need a Great Case for Support.  For capital campaigns of note. “Tom Ahern … is one of the country’s most sought-after creators of fund-raising messages.” Download his new eBook here

Create Your Own MBA Program

Pivotal university mba

 

Many small business owners are typically self-taught in the ways that make them successful. Most small business owners do not have an MBA, which actually is a good thing. Formal business education, specifically the typical MBA program, is geared more toward the large corporate environment and not the small business environment that agency owners operate in.

So, how would one design a two-year MBA program for the small business agency owner? The program is based on a trimester system and the students are required to read a book a month for two years. There will be six areas of study, with a bonus session to allow a concentration for the insurance industry. By the end of these two years, students will have the right information to operate a small business and be successful.

The key purpose of this program is to accelerate through the learning curve. Much of the information the students will learn has been around for a while and it works. Successful business owners do not re-invent the wheel. They take a proven idea and adapt it. This cuts out the time and expense of having to learn it on their own.

1. The first trimester focuses on understanding one self and others. What skills and knowledge are needed to be successful? All of these books are classics and three of them have been around for over 75 years. In order to be a great business owner, one needs to understand themself, as well as understand how best to relate to other people.

· 7 Habits of Highly Successful People by Steve Covey

· How to Win Friends and Influence People by Dale Carnegie

· Think and Grow Rich by Napoleon Hill

· The Richest Man In Babylon by George S. Classen

2. The second trimester is an introduction to business and the philosophy of business. Most small business owners got into their business because they were good at what they did. Michael Gerber created the mantra of "Work on the business and not in the business," so his book is a must read. The other books will round out one's understanding of what it means to be an entrepreneur and small business owner.

· The E-Myth Revisited by Michael Gerber

· Scaling Up: How a Few Companies Make It... and Why the Rest Don't by Verne Harnish

· Rework by Jason Fried

· The Personal MBA: Master the Art of businesss By Josh Kaufman

3. Sales and marketing is covered in the third trimester. The books in this session will go from the big picture of sales and marketing to the nitty-gritty details of how to do it. Sales people will like the books by Schley and Holmes and the marketing folks will hone in on the books by Heath and Gladwell.

· Made to Stick: Why Some Ideas Survive and Others Don't by Chip Heath and Dan Heath

· The Tipping Point: How Little Things Can Make a Big Difference by Malcolm Gladwell

· The Micro-Script Rules: It's not what people hear. It's what they repeat... by Bill Schley

· The Ultimate Sales Machine by Chet Holmes

4. Welcome to year two! The fourth trimester is all about management and leadership. Satisfied employees are critical to the success of a business. Some people are natural leaders while others can be great leaders with some training. The material and ideas in these books are practical and easy to learn.

· The One Minute Manager by Ken Blanchard and Spenser Johnson

· The Dilbert Principle by Scott Adams

· The 21 Irrefutable Laws of Leadership by John C. Maxwell

· Drive by Daniel Pink

5. The fifth trimester focuses on an area that business owners easily get or perpetually struggle with - economics and business financials. Even if it is a turn off for some small business owners, it is still important that the basics are understood. Accounting is a subject that does not translate well to books, so that subject will be covered using online videos. There are many free videos that will cover both the basics and the details of accounting.

· Basic Economics: A Common Sense Guide to the Economy and Economic Facts and Fallacies by Thomas Sowell

· Financial Intelligence A Manager's Guide to Knowing What the Numbers Really Mean by Karen Berman and Joe Knight

· Various online videos on accounting

6. Now that the business is running, what is next? A successful business is not static; it undergoes constant change and improvement. The sixth trimester introduces philosophy of change and techniques on how to re-think the business operations.

· Built to Last by Jim Collins and Jerry Porras

· Who Moved My Cheese by Spenser Johnson

· What Got You Here Won't Get You There by Marshall Goldsmith

· First, Break All the Rules by Marcus Buckingham and Curt W. Coffman

Congratulations! Reading these 23 books will provide information more valuable to the small business owner than taught in most MBA programs! Graduates of this program now have the skills and knowledge to be even better business owners. Some graduates might want to continue on to a concentration within their industry.

Formal education can be valuable. However, the stereotypical small business owner has neither the time nor patience to attend an MBA program. There is so much good information that all business owners can easily have a customized "MBA Program." So, crack open a book, turn on a kindle or plug in some ear buds, school is in session!

Bill Schoeffler is a business consultant and coach with 20 years of experience working with small business owners and individuals. Bill's unique background includes engineering, financial analysis, and inter-personal skills.

He can be reached at (707) 324-5531 or bill@chrysalis-financial.com. You can find out more at http://www.chrysalis-financial.com

 

Five Things No One Tells You About Entrepreneurship

Pivotal Five things no one tells you about entrepreneurship

The internet has made the idea of starting a business more accessible than ever before. And that is just what people are doing. However, the journey of entrepreneurship is not for the faint of heart. Having a marketable product is not enough. Being talented enough to market your services for hire does not mean you know how to run a business. After all, 90% of all start-ups fail within the first 5 years.

Here are some things to keep in mind when you start your business:

1. Entrepreneurship is lonely

If you are like most entrepreneurs, you don't have a lot of capital to hire a permanent staff in the beginning. That means, it will be you and your laptop for a while. No one to help you come up with ideas. No one to reassure that everything is alright when you have a bad day. No one to help you generate ideas. It's just you. Depressing. After all, we're human. We aren't designed to work alone. To counter the bad effects of loneliness, join entrepreneur groups, have some entrepreneurs in your close contacts that you can reach out to when you need a voice of affirmation and encouragement.

2. You don't know what you don't know

I am a scientist. I know how to make the product. Initially, I did not know anything about marketing and advertising. I had to learn. There are plenty of resources on the internet and in libraries to help you along the way. Establishing a relationship with a business mentor will help point you in the right direction on where to get started. It's important have some idea of what you need before you start spending money with paid services to do things for you. How else will you know if you're going to get what you paid for?

3. Your mindset determines your paycheck.

The owner's mindset makes and/or breaks the business. Devoting time, energy and money to your personal development is just as important as devoting those things to process improvement and building a team. Spend time meditating, reading and visit a therapist regularly. Your business depends on it.

4. You will have to hire a team.

Yes, sometimes you will be able to get the task done best BUT you will get more done with help. You are not good at everything. Assemble a team of experts and all you will have to worry about is maintaining your own ability. Your business will grow faster. Two brains are better than one.

5. Your journey is your journey. Patience is a virtue.

In the age of social media, it is easy to start comparing someone else's progress to your own. Do not beat yourself up. You journey is your journey. Do not rush it. Do not compare it to someone else's, especially based on social media posts. Those posts are a snapshot of the highlight reel. You really don't know what's going on behind the scenes.

Yes. Entrepreneurship is hard and not for the faint at heart but when done correctly the rewards outweigh the risks. Connect with other entrepreneurs so you feel part of a community. Build a relationship with a business mentor. Learn skills you don't already have. Your daily routine should include improving your mindset. Hire a team. And, most of all, be patient. Your time will come.

Author:  Iyonna Woods

I am an entrepreneur who turned her passion of health and wellness and laboratory expertise into a profitable business. I take great pride in helping people live healthy lifestyles, physically and financially. Visit http://www.fancyfreellc.com to learn more about our products and services.

The Potential of Change

I have found that in life and in business that if you are unable to adapt to change quickly, things will become very frustrating and you will find yourself lagging behind and eventually, become stagnant and quit. I find myself often reminding people that change is the only constant; and it honestly is a constant that you can count on and oftentimes, you have absolutely no control over when change occurs. So, instead of feeling like a victim of change, let's become masters of it!

 

The Potential of Change - Are You Watching?

Very rarely will things change suddenly. Most of the time change will start as a gradual process that will begin to gain momentum and eventually, become the new constant until it changes again. You see this in sports, fashion, food, music, cultural norms and in business. There are so many people who hate change and for the most part, if you ask them why, they have very little concrete reasons why. Many people will tell you that it changed suddenly! But, if we are honest with ourselves, we saw it coming a long time ago but chose to ignore it hoping that something would prevent it from happening. Guess what? change still came!

Let's try this next time; let's become more observant, let's keep an eye out for any changes that might be occurring. Whether it is in your department, in your organizational structure, leadership, business model, marketing strategies or staff. Let's decide to get ahead of it so we are not "caught off guard". Change is not a bad thing all the time, it is simply change. Look for it, embrace it and then, do something about it instead of trying to fight it. Being observant to ongoing or shifts in your particular niche' or vertical can mean the difference in becoming an industry leader or a "Johnny come lately". Change can really work to your advantage if you have the proper perspective. You just have to change your perception of change.

The Potential of Change - Change How You See Things

"What if it's a bad thing Dave?" "We do not want to embrace bad things Dave!" And you are absolutely right. But let's focus on the type of changes that pertain to our businesses and how we can change our perception of those changes. There had been many times when I thought changes in things like marketing for instance; inbound market sounded like making "Root beer" flavored potato chips and I don't think that will last long! But the truth of the matter is that inbound marketing is one of the best ways to market if you truly want to scale your business and keep and expand your repeat, loyal customers.

Look, there are so many business owners that try everything that comes down the pike and have very little ROI to show for it; so now, when they see or hear about a "proven" marketing tool, they pass. If you read one of my older articles called "You Can't Stop Marketing", you'll see that you can't do that. Things HAVE CHANGED and we need to learn how to adapt as business owners. So many small business owners are resistant to change and wonder why the own their job (they spend 12 or more hours a day and make very little progress).

There are few successful business owners that truly invest in themselves. Rarely will a small business owner to go to a business workshop, spend thirty to forty-five minutes watching a webinar or become involved in their local Chamber of Commerce. These examples are just a few things that we can do that has the potential to pay huge dividends in our businesses but, they will require you to change. I think that many small business owners believe that if they change, it equates to being wrong and they cannot admit to being wrong! Wow! That is a lot of pressure and pride working there. There is not a perfect person on the face of the earth! We learn from our mistakes (hopefully) and make the needed adjustments. Failure should never be the end, it should never cause you to throw in the towel. Learning from our mistakes and making those needed adjustments can be the difference in achieving success.

The Potential of Change - Change What You Do

Ladies and gentlemen listen, being resistant, adapting, overcoming, taking advantage of and looking for the next big thing to use to your advantage before anyone else does, is all a part of how we perceive change.

I really want you to be the best business owner that you can possibly be and to do that will require you to learn how to use changes to your advantage. I need all of you to be as innovative as you can possibly be. Innovation is the key! We have gone from rooms filled with one computer to desktops, laptops, and even tablets. We have gone from using telegraphs to calling the telephone operator directly, to dialing direct, to cordless, to pagers, to massive mobile phones, to phones that fit in your purse or your pocket.

Innovation is a term that the business sector uses in place of change. Invention, Revolution, Modernization, Improvement, and Advance are synonyms of innovation and each word has an element of change in them. Let's not shrink from change out of fear but be the innovators that move things forward! Let's be the ones that are the front-runners, even how we interact with each other. You realize that competition does not equate enemy. The pie is so big and we can actually benefit from strategic (legal) collaboration from time to time. (That's for another article to come). So, can you change? Can you embrace change and become the master of it? Can you be the innovator that I know you can be? Can you change?

Get Your FREE Online Reputation Management Report Today! For more information and to help turn your customers into raving fans for your business, go to http://woweenterprises.com/ We develop effective digital ads and campaigns specifically for local small businesses to get more brand awareness, foot traffic, and repeat sales, and we provide specialized software and services designed to drive qualified traffic to your website and turn your customers into raving fans for your business.

While you're there, be sure to get your FREE Online Reputation Management Report Today!

Steve Jobs on Customer Experience

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How to write an Elevator Pitch

“If you fail to plan, you plan to fail.” ~ Coachfucious

The first and foremost thing you need to do is be ready and ably to sell your product or service in a snapshot. In order to get the clients you are looking for you absolutely need to be prepared to meet with your clients wherever they are and whatever they do. What will set you apart from all the rest of the people in your business is the MANTRA that you will sing to enchant your clients and get them close to you.

This mantra identifies who you are, what you do and why your client will choose you over all the others on the market and is most commonly known as elevator speech.

Before we create one, we will go though the brainstorming process.

There are a couple of tough questions that can be answered before we roll up our sleeves and start creating our client magnet.

1. Who am I? In what capacity I want to serve you?

2. What business I am in? What results do my business promise to you as a client?

3. Who is my client? How does he look like?

4. What makes me different from the competition? Why should the client do business with me?

5. What are the benefits of my customer when buying my product / services?

Those questions, when systemized, don’t look as if they will come out of the page and bite you but when you think about it 90% of the time to come up with ideas is very difficult. Usually this uneasiness to decide on the right answers for you and your business springs from the fact that most of us consciously or not are employees in their business and being an owner of a business is just that – being employed by yourself to perform the job task- owner.

The way to go out of this trap where you end up employing yourself and go into the thinking hat that is only concerned with how to elevate your business the answers will start flowing to you.

Whenever you are ready with our own answers to the clarification questions, you can start writing your elevator speech. This speech you will be able to say wherever you go whatever you do and you will be able to sell your product or service in 30 seconds. And I will show example with my own elevator speech.

1. For whom are you offering your product / service? Who is your client?

Your sentence will start with “for” as in: “For unstoppably determined people”

2. What is it that your customer wants / needs and you are offering?

Your sentence will start with “who” as in: “Who want to live with passion and be financially independent”

3. What product or service you are offering?

Your sentence will start with “the” as in: “The Life & Money Coaching of Tsvetanka (Sue) Petrova”

4. What category does your product or service satisfy?

Your sentence will start with “is a” as in: “Is a walk through into the world of achieving your goals”

5. What is the benefit that your client will receive when buying your product / service?

Your sentence will start with “that” as in: “That is low cost and at the same time high in value because”

6. Who are your competitors and why you are better than them?

Your sentence will start with “unlike” as in: “Unlike others I walk the walk, and talk the talk.”

7. What is the single most important thing that sets you apart form the competition?

Your sentence will start with “our” as in: “Our coaching re-frames circumstances and life situations into possibilities and I help my clients turn those possibilities into opportunities.”

The most important step is as soon as you have your MANTRA ready, chant it as much as possible to as many people as possible and then just happily receive all the goodness the powerful mantra that you just created can bring into your business life.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Get your clients all over the world using THE 3 ESSENTIAL Ingredients to Success at http://www.aheartsdesires.com/        This article was originally published here

 

Marketing Alchemy: 3 Ways To Turn Marketing Expenses Into Profit Centers

 

Are you tired of writing checks for advertising and promotion expenses, month after month, and feeling like you have nothing to show for it? Learn 3 ways that you can turn your advertising and promotion activities into profitable assets, shift from marketing expenses to income, and begin to think of your marketing activities as a profit center instead.

1. Save the money you are now paying to advertisers.

Does the idea of writing checks to yourself each month rather than writing them to someone else for advertising expenses sound good to you? Here's how to make that happen.

When you run a typical ad, you have no idea who has seen it unless they come to your establishment, call you, or buy something from you. In order to make your marketing a profit center, you have to know who those people are and how to contact them.

Don't run another ad unless you can use it to capture the contact information of everyone who sees that ad and is interested in what you are offering. If you are advertising to get new customers, then be sure to make them an irresistible offer in exchange for their contact information. For example, a restaurant offers a two-for-one coupon that is delivered after the contact information is provided. What irresistible offer can you make to your prospective customers that they can't refuse?

You can even test different offers to learn which ones are most popular, and have a record of which people responded to which offer. Is that valuable information to have for your future marketing campaigns? Of course it is! You can just deliver more of what your customers have already told you they want. And as you build a list of those people who have raised their hands, the list you are building becomes an asset for your business.

With a list of prospective customers and how to contact them, you no longer need to run blind ads. You can send targeted offers directly to your list in an email, so there is no mailing cost.

Instead of putting a coupon in an envelope with lots of other offers and hoping that someone will respond, you will be able to send a coupon directly to your list. You can even suggest that they share it with their friends and co-workers who might be interested in what you have to offer. And watch those "advertising" dollars go right to your bottom line!

2. Send special offers to your list that they can't get anywhere else (and cash checks from other business owners that are providing the offers for them).

What's even better than saving marketing dollars? Earning marketing dollars! Imagine how excited your customers will be to get "secret, special deals" that no one else gets! Of course, they can pass those offers on to their friends too, but those friends have to give you their contact information to get the deals!

You can send the offers to your list in a monthly newsletter, an email, or several other options. All can be done at low cost or no cost -- but you won't pay a dime without getting a check from another business owner first to cover the cost.

Send offers for other local businesses (that don't compete with you, of course). Look for complimentary products, or even just products that have a similar target market that matches your customers. If your customers would be good customers for another business, that business can pay you an "advertising fee" to connect the offer to your list.

Partner with local museums or other non-profit arts organizations. Even if you don't earn cash for your mailing, you can likely take a tax deduction -- but check with your accountant so you will know what you have to do to earn the deduction. Just make sure you are getting a "special" deal for your list members.

If you have other business owners who are your customers, ask if they would be interested in having you do marketing for them.

Get in the habit of thinking of marketing as a profit center, and you will see many possibilities for profit.

3. Write a review for your customers that is included in your newsletter or an email, making a recommendation and including an offer.

Start with your customers who are business owners themselves and think about how you can promote their businesses with a review and a recommendation. Then approach the owners of those businesses and offer to provide a review and recommendation of their business (or product or service). In exchange, they will provide an irresistible offer (exclusive to your list, of course) which you will send for a small fee to cover your "expenses," along with your review and recommendation.

This is powerful in marketing terms. This is not just "a shot in the dark" advertising, hoping that someone will respond. Your list members know and trust you, and when you give them your point of view (review) and your recommendation that they do something (take advantage of the offer that is being made), the expectation is that a larger number of people will respond to the offer than if it was just another ad placement. However, the offer must be something that your list members will find irresistible and it should be exclusive, only available to your list.

Jan Sandhouse Hurst is the Authority Mentor and founder of AuthorityMarketingMastery.com. She shows companies how to create marketing strategies and tactics that propel them to excellent results at an accelerated pace, and is known for creative marketing strategies and tactics that position her clients in unique and memorable ways.

If you are not currently sending a monthly newsletter to your list, use her SimpleNewsletterFormula to create a fast path to more customers, connections and cash.

 

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Video: Similar Story Telling

three simple, yet very powerful ways to use similar story.

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Even if I have to stop work, my expenses don’t stop …

HMMM ... that's a point worth considering.

 

Like many self-employed people you have income protection insurance that covers you for up to a maximum 75% of pre-tax income.  This in itself is a sensible approach.

However, such a policy isn't designed to cover things which don't stop even if you do.

What things?

 

Leasing charges on capital purchases.

Bank charges.

Business phone bills.

Wages for employees not involved in generating income.

Rent on business premises.

 

This small listing is not at all exhaustive, but it shows the potential costs you will face if you can't work

To address this, life insurers have developed business expenses (BE) or business overheads insurance (BOI)).

 

How does it work?

It works pretty much the same as  your income protection does.  The same definition of disability applies and you still have an excess or waiting period - two or four weeks - but the full payment period is 12 months or 18 months is the full payment of the insurance used up within 12 months.

A further difference is in how much you can cover.  Income protection insurance is limited to 75% of pre-tax income.  By contrast you can cover up to 100% of your expenses with BE.  To conclude, let's take a small example.

Bill, the electrician has ongoing expenses of phone, lease of his van, accountant fees, wages for his receptionist and other costs totalling $7650 per month.  He can take out a BE policy and cover those thus allowing him to recover without the worry.

 

Author: Paul Herring.

Paul is Principal Financial Adviser at PCH Financial delivering advice on financially protecting your life, your income, your family and your savings.