Zijdeman Files

The first stock marketing investing tip that you will generally be given is that it is wise to keep from spreading your money too thinly and to also realize the importance of diversifying your portfolio, though at the same time, not over-diversifying. The second tip that you should follow is to avoid paying commission fees when you buy stocks. It means that when investing your hard earned dollars on a stock in a certain company, you should at least expect that the company does not charge a commission, and most companies in fact do not charge a commission.

Another useful tip worth following is that it is best to buy stocks only from those companies that declare and pay out dividends. As already mentioned, it is a good idea to invest your money in a company that does not charge you commission, though at the same time it is also necessary to see whether it provides you with a second avenue to invest your money in by paying dividends on the monies that you invested in them. In a similar vein, you should also put your money in companies that pay dividends and then raise the dividend each year, as that would show that the company is rewarding its investors who have shown faith in them. And, of course, it also shows that the company is flourishing and doing the right things.

You should also look to dollar-cost averaging which means that you are buying the same stock but at different prices and over a number of years. In this way, you can be sure of not paying too much for that company’s stock, even if the prices of the stocks are at their very highest. And, you can also roll your dividend payments and turn them into buying more shares in the company until the time that you retire.

You should also focus on generating an income rather than on making a profit as that will reduce the burden on your shoulders since you won’t be trying to make a fast buck; rather, you will be adding to your income, and by focusing on how much money your shares are earning you and when the companies also raise their dividends year after year, you will be following the right and also safest path because you will actually profit from creating an income rather than trying to make profits in the fast lane.

Also, you should buy stocks with the intention of making an investment for the long term and not try and trade in and out of your stocks. In addition, there are times when even a lower stock price after you made your first purchase can be an advantage to you, and finally, you should have a savings plan which should add to your stocks every quarter so that you can reinvest your dividend payments into buying more shares on the dollar-cost averaging method.

Lenders and investors may see hundreds of business plans in a single day. Make your business plan stand out against the rest, and avoid these common mistakes.

1. Not proving that you have the management expertise to make it happen. The quality of your people will lend credibility to your ideas and even to your financial projections. If your management team is not as strong as it could be, join forces with a great board of advisors.
2. Not demonstrating where your revenue will come from - what customers pay you and why they pay you. Don’t be too aggressive in setting revenue projections or you will undermine your credibility.
3. Not proving that your business model and long term cost structure is good enough to make a real profit. How will your business make money - what is your margin structure, what are your costs?
4. Not being clear enough in your product description to allow the reader to quickly see the need and the niche for this product. It may seem obvious to you, but not so to the reader not educated in your business.
5. Not proving that the market opportunity is big enough to get interested in. How big is your market now and what will it look like in 5 years?
6. Not adequately acknowledging your competition. Investors know that if there is no perceived competition, there may be no market for what you are offering. The better you can describe your competition, the better you understand your market, and the more likely you will dominate it.
7. Not writing for the target audience. Although the core is the same, the plan should be written for the perspective of banks, equity investors, and others. Go as far as you can to tailor each plan to the audience’s specific interests to show you’ve done your homework and know to whom you are talking.
8. Starting with a boring, unenthusiastic executive summary. This is the first section to be read, and if it isn’t exciting the rest may never be seen. Make it fun and be enthusiastic. It should stand alone and generate interest for more. It deserves all the thought you would put into a professionally done promotional piece for your customers.
9. Poor presentation. If you have typos and grammatical errors in your business plan, the reader will assume the work you do in your business is sloppy too.
10. Saying too much. Keep the entire plan to a maximum of 30 pages, with an executive summary of 3 pages or less. If investors are interested, they will ask for any other information they need. Amateurs talk in the business plan about unimportant details because they don’t know what they should say and what they shouldn’t. Hire a professional editor to reduce the page count and help you emphasize your strengths.

When you’re dealing with credit cards, you’re playing with fire. Unfortunately, there are plenty of people out there who don’t realise that, and make all sorts of dangerous mistakes with their credit cards every day.

Paying Late.

If you don’t set up any kind of automatic payment, then it can be tempting to just put your credit card bill on a pile and get to it when you have time. Before you know it, a few weeks have gone by and you’re late. If you leave it to the deadline, you might find that the payment won’t get there quickly enough – it’s not a deadline for sending the money, it’s a deadline for them receiving it.

Paying late is a big mistake for an awful lot of reasons. You will almost certainly be charged a late payment fee, and your late payment will go on your credit report for everyone to see. You may also find that you lose any good rate you had, and your debt is automatically thrown onto the very worst rate the company offers.

To avoid late payment, you should always post your payment a long time before the due date (at least a week). If you’ve left it to the last minute, phone up and try to pay that way.

Being Taken in By Rewards.

It is never, ever worth getting a higher-interest card simply because it offers some kind of loyalty points, flight miles or whatever. Even if it offers a cash reward, it is unlikely to be more than you would pay in extra interest – after all, why would they give you free money? All ‘rewards’ do is pay you off with your own money to make you feel like you’re getting something for nothing. You’re not.

Collecting Cards.

Seeing some people opening their wallet or bag is a scary experience. It looks like they have about a hundred credit cards in there, some of which they haven’t used in years. They have trouble keeping track of all the different cards, balances and interest rates. Don’t be one of these people. You should limit yourself to a maximum of three cards at a time – any more starts to make you look over-committed in your credit report, and could get you turned down for a bigger loan.

Maxing Them Out.

Your limit is just that: a limit, not a minimum! Whatever you do, don’t get a card and immediately spend your whole limit. This looks very bad. It is better to spend about halfway regularly and pay it back. Wait for the company to increase your limit (which they quickly will), and then you’ll get that extra money without the stigma of having a maxed-out card.

Not Reading the Terms and Conditions.

Finally, as ever, don’t sign anything you haven’t read! I know it’s hard going and you’re busy and all, but if you can’t manage to read the terms and conditions then you shouldn’t get the card. Pay special attention to any future increases in rates, and what kind of fees you can be charged.