Credit Management: How Did Your Books Look Last Year? This Year?

On January 2, 2013 ?By Scott Wolfe Jr

We?ve now turned the page into the year 2013. How well did your company?s credit management plans mitigate your risk and allow you to take on the necessary about of business?

Just one year ago many sat at their desks to review the prior year?s financial successes and failures, lamenting at any lost money and celebrating any small steps towards higher margins.?The same event is happening around the country this morning, as we look back at the 2012 calendar year and think about how to make our businesses better in the coming year.

Why Good Credit Management Is Essential In The Construction Industry

One of our nation?s oldest and largest industries ? the construction industry ? is particularly vulnerable to poor credit planning.

The chart on the left shows some debt-ratios separated by industry. Building material supply companies are running with a 48%+ debt ratio at any given time, which means nearly half of the company?s assets are provided via debt.

The trend of high debt continues across different segments of the construction industry. Homebuilders, for example, have a 50.7% debt ratio. ?Compare this to other industries (like the restaurant,?apparel?or e-commerce industries), and you can see that debt is a much bigger challenge for those in construction.

We addressed the debt ratio issue and how to control the excessive risk in a post from last year: ?High Debt Ratios In Building Supply Industry Means High Risk ? Can You Control The Risk?

What does this debt ratio issue mean in a nutshell? ?It means that material suppliers are always owed a lot of money. ?And who owes suppliers this money? ?Construction companies.

Failure rates of businesses after a 5 year period by industry sector, showing that after 5 years only 36.4% of construction businesses survive. Data compiled from the Census Bureau?s Business Dynamics Statistics by Scott Shane for Small Business Trends.

Unfortunately for the industry, construction companies fail more often than any other type of business in the United States. ?Take a look at the chart to the left here. ?As you can see, only 36.4% of construction businesses stay in business after a 5 year period. This exceeds every other industry sector.We spoke about this issue in another post from last year: Mechanics Lien Importance Highlighted By Contractor Failure Rates.

This is a?recipe?for disaster.

Building material suppliers extend credit more often than most other industries, and they are extending credit to companies that fail more often than most other industries. Managing and mitigating this credit risk is critically important.

What Bad Credit Decisions Mean To Your Business

How toxic is a bad credit decision to your business? ?I?m glad you asked.

In more bad news for the material supply and construction industry, it seems that these firms have extraordinarily slim profit margins.

The cost of bad debt in the construction industry. Since building material supply companies have an average 1.25% net profit margin, a tiny amount of bad debt ($12,500) sets the company far back in needed revenue to make up for the loss ($1m). Data from Bloomberg Businessweek Magazine.

Bloomberg Businessweek Magazine pegged the net profit margin for the Building Material and Supplies Dealers industry at just 1.25%. ?This is incredibly slim. ?The chart on the left here illustrates just how slim these margins are. ?If you think about it terms of real money, if a building material supplier writes off just $12,500 in bad debt for the 2012 calendar year, that means they will need $1,000,000 in revenue to make up for the loss.

In other words, if you?ve written off $12,500 from 2012, you may need $1,000,000 in revenue before you break even.

These numbers may help you realize that credit decisions, credit management and credit policies present a huge challenge. A single bad credit decision can easily amass an uncollectable account of $12,500. With such low margins, it?s almost impossible to make up the loss. ?What can you do?

How To Implement An Immaculate Credit Policy And Make More Money

Now you understand that the construction industry is vulnerable to debt and bad credit decisions. What now? How do you solve that problem and continue to do business without bleeding money? ?How do you stop the losses and actually increase the profit margin without the simple ?more revenue? solution?

The solution is buried in assembling great credit tools and great credit policies for your company. ?The solution is in credit management.

1. Review (or Create) Your Credit Policy.

The start of the new year is a great time for you to sit down and review (or create) your company?s credit policy. Your credit policy should take the following into account:

• Concrete methods to separate those who can and cannot get credit
• Concrete factors to guide the credit manager in determining who must give additional security (personal guaranty, joint checks, etc.)
• When and how lien rights will be used to secure accounts (see: Lien Policy)
• How long are your credit terms?
• What is done when a payment is not made?
• What is done when an account goes into default?

2. Incorporate Lien and Bond Claim Protections Into Your Credit Plans.

The lien and bond claim laws exist all around the country for the precise reason of helping a high risk industry (construction) deal with credit problems. ?If you?re not utilizing these laws you are simply ignoring the one thing out there to help your company deal with its credit challenges.

If you are not using the mechanics lien and bond claim laws to protect your accounts, you?re making a very very bad decision for your company. ?There are no and?s, if?s or but?s about this one.

The lien and bond claim laws exist all around the country for the precise reason of helping a high risk industry (construction) deal with credit problems. ?If you?re not utilizing these laws you are simply ignoring the one thing out there to help your company deal with its credit challenges.

3. Stick To Your Guns

All the planning and policy writing in the world is useless if you don?t execute. ?I can?t count how many supply companies I?ve consulted with over the years who have fantastic credit policies and procedures but simply don?t execute them. ?They make too many exceptions, they get lazy about lien compliance, etc. etc.

Commit yourself in 2013 to not only having a great credit and collections policy, but also to execute it.

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Tags: Accounts Receivable, Accounts Receivable Management, Bad Debt, Bloomberg Businessweek, Credit Management, Credit Planning, Credit Policy, Credit Risk, Debt Ratio, Featured, Lien Policy, Material Suppliers? / ? Leave a comment

About the Author: Scott Wolfe Jr

Self-proclaimed "Mechanics Lien and Preliminary Notice Guru," Scott is the founder of Zlien, a nationwide mechanics lien and preliminary notice filing service. He is also the founding author of Zlien's Lien Blog, authoring over 800 articles and writing over 300,000 words about mechanics lien laws since its inception in 2007. Scott is also the founder of Wolfe Law Group, a construction law firm that practices along the West Coast and in Louisiana. He lives in New Orleans, LA, where he was born and raised.

Source: http://www.zlien.com/blog/credit-management-2013/

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FSU Tech Connect: Computer Lab Classroom Management Tips

Computer Lab Classroom Management Tips

NetSupport School is a classroom management software tool available on the computers in the computer labs on the main campus. It can be used by instructors to control the computers and communicate with students in the lab. Here are some tips on how the tool can be used to improve productivity in the classroom.

1. When using NetSupport School it is best to set up as much of your class routine before your class comes in and starts using the computers. Take the time to set up the websites, documents, and applications prior to the students entering the class. This will allow your class to run more smoothly. Quick launch is a great tool to easily deploy websites and applications you your students with the click of a button.
2. Once all of your students have entered the classroom, lock or blank all of their computers so that their full attention is on the teacher. This allows you to explain any vital information without the distraction of any applications, documents, or social media websites.
3. At the start of class prompt your students to ?Sign-In?, using the Sign In tool under student register. This will allow you to address each student by who they are and not by the computer they are sitting at.
4. To avoid walking around the room to check if all students have turned off their computers at the end of class use the Power Off tool that is found under the Manage Icon in the top tool bar. This will allow you to shut down all computer from the main teaching station.

Sign up for one-on-one training on how to use NetSupport School through the TAC's Technical Education and Outreach team by clicking on the Book NOW! link available at http://www.ferris.edu/tactraining.

Written by Jennifer Warden

Source: http://fsutechblog.blogspot.com/2013/01/computer-lab-classroom-management-tips.html

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Top House Republican predicts final passage of "fiscal cliff" bill

During an oddly jokey statement at the White House as the fiscal deadline bore down Monday afternoon, President Obama said, "I'm going to be president for the next four years. I?hope." He was warning Republicans that, yes, they'd have to deal with him for a while. But it was, to be sure, a strange moment. Could he actually have been joking about assassination? About impeachment? The?apocalypse? Or has everyone just had enough of these negotiations??

Source: http://news.yahoo.com/top-house-republican-predicts-final-passage-fiscal-cliff-014401382--business.html

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Syrian rebels attack air base in the north

In this Saturday, Dec. 29, 2012 photo, Free Syrian Army fighters fire at enemy positions during heavy clashes with government forces, in the Salaheddine district of Aleppo, Syria. Activists say Syrian rebels have captured an oil pumping station in the north central province of Raqqa about 160 km east of Aleppo after days of fighting. (AP Photo/Abdullah Al-Yasin)

In this Saturday, Dec. 29, 2012 photo, Free Syrian Army fighters fire at enemy positions during heavy clashes with government forces, in the Salaheddine district of Aleppo, Syria. Activists say Syrian rebels have captured an oil pumping station in the north central province of Raqqa about 160 km east of Aleppo after days of fighting. (AP Photo/Abdullah Al-Yasin)

BEIRUT (AP) ? A Syrian activist group says scores of rebels are attacking a sprawling air base in the northern province of Idlib.

The Britain-based Syrian Observatory for Human Rights says the assault on the Taftanaz base began early Wednesday.

Observatory director Rami Abdul-Rahman described the attack as one "of the most intense" on the airfield.

In the past few weeks, Syrian rebels have stepped up their attacks on airports around the neighboring Aleppo province, trying to chip away at the government's air power, which poses the biggest obstacle to the opposition fighters' advances.

Rebels have attacked the Taftanaz base in the past but have failed to capture the facility.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/cae69a7523db45408eeb2b3a98c0c9c5/Article_2013-01-02-Syria/id-e71f77505dbe4736a6afa2d63784a660

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RPG Knight of the Earthends (for Android)

Knight of the Earthends is the latest RPG from Kemco, which churns out decent-quality Android and iOS RPG games at a fearsome pace. This one falls in the middle of Kemco's quality lineup; it's more diverting than DarkGate, but nowhere near as good as Symphony of Eternity. Still, for classic RPG fans, it's worth a look.

Kemco's secret looks to be that it's building a lot of these games on the same engine. So, like in other Kemco games, your party is made up of 16-bit sprites who wander through a relatively open overworld and a series of towns and dungeons. The game is relatively linear, using cut-scenes to push you from each town-dungeon combo to the next. Each new town has better equipment to buy, of course, and dungeons are very easily mastered because of an extremely revealing mini-map mode. There are no in-app purchases, which I absolutely love.

Moving around maps is very easy thanks to a tap-to-move system which does away with virtual D-pads. In battles, you can go purely turn-based or auto-fight; if you choose auto-fight you won't get to use spells or special attacks, though.

Spend a Few Hours With Friends
The company's specialties, story and character, buoy you along through the relatively short 10-hour main plot. (After you complete the plot, some bonus dunegons appear to hack your way through.) Knight of the Earthends is easier than some other RPGs I've played recently; I didn't find any hitches or need to grind levels as long as I played my battles smartly.

The characters in this case are Reiya, a very businesslike knight; Raud, a cranky android, and Yuinika, a kind of elflike creature with a horn. Yuinika is both literally and figuratively horny, and keeps hitting on Reiya; the banter never gets R-rated, but it's probably PG-13. The three start out defeating demons, and end up embroiled in global politics. Naturally, along the way they become friends.?

The English-language translation is clunky at times. It never quite reaches "all your base are belong to us" levels, but you're very conscious that you're playing a translated game. Still, though, the characters have strong personalities.

The actual adventure also suffers a little bit from being too predictably structured: it's never a JRPG spoiler to tell you that our heroes are going to have to defeat two essentially concentric sets of four main dungeons each before killing the big boss and saving the world. That said, Kemco has offered more complex plots such as in Aeon Avenger, and I hope they do so again.

A Classy System
Knight of the Earthends' creativity comes in its level and class system. Each of the characters is essentially a different, fixed class. Reiya buys "skill books" which give her individual skills that can then be combined into custom, special combo attacks. Raud levels up by buying him parts and upgrades, which have various attacks and powers attached to them.?

Yuinika's skill is the most brilliant. The horn-girl levels up in "styles" acquired by killing batches of various kinds of monsters; Demon, Golem, Beast, Slime, and Mimic are five of the 14 styles Yuinika can pick up, and each style has different stats, spells and attacks.?

The styles approach makes you want to "collect them all," hunting down different categories of monsters so you can find out what that mysterious level six spell is for each style. Since wandering monsters are invisible here until they attack you, that takes luck and patience. Not too much patience, though; as I said, this is a relatively short game.

Knight of the Earthends costs anywhere between $1 and $8 depending on what kind of a sale Kemco is running at the time. If you've already played through the deeper and better Symphony of Eternity and Final Fantasy III and you enjoy some frisky inter-character banter, this can be your next stop on the Google Play market.

For more Android App Reviews, see:
??? RPG Knight of the Earthends (for Android)
??? Google+ Mobile App (for iPhone)
??? Snapseed (for Android)
??? Asphalt 7: Heat (for Android)
??? WhatsApp Messenger (for Android)
?? more

Source: http://feedproxy.google.com/~r/ziffdavis/pcmag/~3/MizxEkkXZAc/0,2817,2413652,00.asp

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Build Muscle - 50 Ways to Get Super Fit This Year - Shape Magazine

Every pound of muscle you add can help burn an extra 45 calories per day. So if you beeline it for the weight room and pack on 10 pounds of lean muscle, then your body can continue to torch 450 calories daily well after you've left the gym, even if you?re chained to a desk for most of the day. At that rate, you can lose almost a pound of fat per week. Source: Tanya Zuckerbrot, R.D., author of the Miracle Carb Diet

RELATED: For even more advice, check out these training secrets from the super fit Alvin Ailey dancers.

Source: http://www.shape.com/fitness/workouts/50-ways-get-super-fit-year

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You Can Learn About Home Businesses On The Web | Turn Blind ...

Not everybody is cut out to own their own home-based business, but that doesn?t mean you should not give it a try. This is especially true these days, when at an insignificant cost you can set up any of a variety of home-based businesses with a computer. It just takes an affordable, high-speed Internet access, and the readiness to spend a bit of time doing the research. A computer-based business has a global reach with unlimited customers, whereas a conventional business is limited to local custom and has costly set-up expenses. Everyone in the world with internet access is a possible client.

Work At Home

There are a myriad of ways to get your toes wet if you are really considering a business on the web. To make a start you most definitely do not have to be an IT nerd, but being familiar with using a laptop or computer would be very helpful. Instead of technical skills, what is more important for success on the web is your level of knowledge concerning something you enjoy doing. Somebody who is a skilled writer could, for instance, have an online business that does copywritng. Content is often needed, so a writer could also work on an independent basis, picking up writing jobs from people who are no good at it. The trick, if you can actually provide a certain skill, like content in our writer?s example, is to find people who have a need for it and sell it to them. Put together a profile of your work, do a little bit of marketing, and, hey presto! you?ve got a business.

Online auction web sites are another avenue from which a large number of people are making good money. You might have many products already that can be sold online, or you can order items at wholesale and sell at retail. Online auction web sites, such as eBay, do the hard work of bringing the buyers to your offers. Your job is firstly to decide a price and list your merchandise, then wait for the sales. You are going to get payment if somebody makes a purchase, and then you fulfill your side of the deal by mailing the shopper their purchase.

Life is starting to be a lot easier in lots of ways through the advancements in technology. The advent of the laptop or computer has put ownership of a business within the reach of regular folks. The Internet has everything you need to build a business. It offers access to products you can sell as well as information that shows you how to do it. Instead of re-invent the wheel, find what you think is a good business model and follow its example in setting up your own web based business.

Rather than a fulltime business you might just be after another income stream, which the Internet caters for handsomely. Spend a while on your computer seeking information on starting a business online, and you?ll find a lot of it. You can only start making money once you get your business started, so don?t hold off in doing your research.

Source: http://emmanuelgaine.getchummywith.com/2012/12/31/you-can-learn-about-home-businesses-on-the-web/

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Source: http://limokeroti.wordpress.com/2013/01/01/you-can-learn-about-home-businesses-on-the-web-turn-blind-eye/

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