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Business

3 Important Points for New Businesses Regarding International Money Transfer

When you are starting a new business and have suppliers and customers both at home and abroad, the odds are that you will need to make multiple international money transfers in short time frames. In fact, the odds are that as a new entrepreneur, you may have to order your supplies in bulk least you lose your local market due to a paucity of your products, even before you commence making inroads in the Australian market.

One of the most important things to do is to compare the various agents, agencies and financial institutions that specialise in such money transfers. In fact, this is why you should firstly research the leading global money transfer providers.

You should always rely on the mainstream: At least in the beginning

Of course there are many ‘ad hoc’ money transfer agents that rely on peer to peer networks to bypass the mainstream financial institutions to send money abroad. However, from a new business or an entrepreneurial start up point of view, it would make sound sense to stick to the tried and tested routes. The last thing you want is for your precious monetary resources to disappear in some sort of black hole, with irate suppliers refusing to extend you any credit, while you try and track your money or in any way figure out a way from this unfortunate impasse.

Don’t make banks your ‘default’ setting

Just because you are running a business, it is not necessary that you only opt for a well-known bank for all your international money transactions, per se. Yes, it is certainly true that it is more convenient to work with a bank, especially if you already maintain an account there and can use your online banking account to make transactions, but remember that such convenience comes attached with a hefty price tag and that is why you may not be interested in making such transactions multiple times, in a single month.

Moreover, it is also prudent to note that many banks have a minimum transfer requirement. This means that the amount that you want to send has to equate that that stipulated limit or the transaction will not be allowed. Many banks in Australia have a minimum 500-dollar threshold.

On the other hand, should you be a high-volume customer, they may give you some special discount, depending of course, on the volume of profit you generate for them. There are various online sites where you can compare rates in different currencies all over the world.

Economies of scale

As a rule, it will always be more cost effective when it comes to transferring money in bigger amounts than smaller ones. Larger amounts mean ‘economies of scale’. Therefore, you may well be able to take advantage of significantly larger discounts, should the same be offered to you. You may also consider bundling your online orders together and send the money en masse to avail such discounts.

Ultimately, it is up to you to do your research well before opting for any specific service provider.

Business

Why You Should Rent Equipment Rather Than Buy It

When you are running a business that uses a lot of expensive equipment, it can be hard to make the decision of whether you should purchase it or simply rent it out when you need it. In 2019, many businesses rent their equipment from other companies who specialise in this kind of service.

Here, we are going to look at some of the reasons why you should consider renting your equipment. Keep reading to find out more about this.

Save Money

Depending on the kind of equipment that you use for your business, it could cost you thousands to buy it for your own personal use. Then, multiply this by the number of pieces of equipment that you need and soon you’ll rack up a huge bill. If you rent your equipment from an equipment hire management business, you can save that money and put it into other places in your own business.

Lots Of Choice

The great thing about renting equipment these days is that you have a lot of choice. There are many businesses that offer this service which means that you don’t have to just go with the first company that you see. On top of this, these businesses use equipment hire management software like the package offered by Baseplan which is a fully integrated ERP solution to keep track of your orders and make invoicing easier. This is a great reason to try this service out.

Only Rent It When You Need It

Sometimes, you need a piece of equipment for a particular job, but you won’t end up using it again until sometime next year when a similar job comes along. This can be a big problem for companies who invest their cash into these pieces of equipment and then don’t end up getting their money’s worth. If you want to only have the equipment for when you need it, you should consider renting it from a business rather than buying it.

Save Space

Finally, you will find that you can save yourself some space in your warehouse or office space if you rent your equipment. You won’t have lots of equipment taking up space as it will only be there when it needs to be used. This is a great idea for those who don’t have a lot of space in the first place and want to keep the warehouse as tidy as possible. Consider renting and you will love the free space.

Final Verdict

It is clear that there are many reasons why renting equipment for your business is a much better option than buying it. You will not only save money in the short-term this way, but you’ll also save yourself some space in your warehouse. Make sure to consider this carefully and choose the best possible option for you. Have a look around at the local equipment hire management businesses and see if they are offering the equipment that you need for your next job.

 

Business

The Rarest Diamonds In The World

Cullinan Diamond IMG 9105

For over 60 years, De Beers has managed to convince jewellery lovers that diamonds mean love and should be treasured forever. In reality, it is coloured loose diamonds that are truly rare. Experts state that there is probably only one coloured diamond for every 100,000 D flawless stones, and it’s not necessarily flawless.

 diamond-colors

 

 

 

Colour equals price

Coloured diamonds are the most valuable in the world due to their exceptional rarity and beauty. If you’ve decided to invest in the coloured gems, be ready to pay unparalleled prices for red, green and blue diamonds. Purple, pink and violet diamonds are the following in rarity. Orange and olive diamonds belong to the next rarity – and price – level. These gems are followed by yellow, brown, grey, champagne, and black diamonds that are a bit more popular. 

Colour saturation and clarity

When it comes to coloured diamonds, clarity is a secondary factor, while the colour intensity is the dominant one.  Coloured diamonds are graded according to the saturation of colour and the hues presented in them. Depending on the colour saturation, the gems are graded Light, Fancy Light, Fancy, Fancy Dark, Fancy Intense and Fancy Vivid. The dominant colour is listed after the modifying colours.

Pink diamonds

Today, the Argyle mine is the world’s largest producer of unrivalled intense pink diamonds, providing about 95% of the entire pink diamond supply. The rarity of pink diamonds is “defined by Mother Nature” as only 40 carats of pink diamonds out of every 39.2 million carats of mined diamonds are estimated to be worthy of being presented for sale.

Once a year, pink diamonds are sold by special bids in the international VIP Pink Diamond Tender, organised by Argyle Diamonds.

Blue and green diamonds

Only limited quantities of blue and green diamonds are supplied by the Argyle Diamond Mine. Fancy blue diamonds come in a broad range of shades, from light blue to sapphire blue. The Blue Heart, weighing 30.82 carats, is one of the world’s rarest diamonds, deep blue in colour. Fancy green diamonds are usually not very deep in colour which gets even lighter during the fashioning of the gems.

The rarest diamonds in the world

Based on colour, the rarest diamond in the world is known as The Ocean Dream Diamond. It weighs only 5.51 carats but the diamond’s colour is unique – blue-green. The rarest diamond in the world based on size is the 3106.75-carat Cullinan Diamond which was cut in nine large chunks, 96 small ones and 9.5 carats of unpolished pieces and used in various British Crown jewels.

Among the rarest diamonds in the world one can also mention the reddish-brown 248.9-carat Earth Star, the white 559-carat Centenary Diamond, the fancy yellow 124.5-carat Golden Eye Diamond, the fancy deep blue 115-carat Hope Diamond, and others. 

Business

Profit or loss: Why business insurance makes sense, whatever your outgoings

It doesn’t matter whether you’re a small business, a large corporate entity, or a simple sole trader, business insurance is a vital component to any successful venture and should not be overlooked, no matter the cost. Forking out for business insurance policies like public liability insurance and employers’ liability insurance may seem like something you can do without, but the truth is that when something really does go wrong and the claims are made, you’re going to regret not purchasing business insurance. Here are just a few reasons why business insurance is vital to your success.

What is business and Key Person insurance?

Business Insurance is one of the most important assets that any business can have. Not only does it protect your workforce against any financial loss in the event of injury or negligence, but it also protects you against any third-party claims that are made against you in the event of an accident or damage. Although employers’ liability insurance is a legal requirement in the UK, public liability insurance remains an optional overhead. Despite the costs involved if something does go wrong, many people opt for a short-term cost-saving rather than looking at the bigger picture and the huge financial costs that could arise when forking out to pay for someone’s compensation package or medical fees.

Key Man Insurance (also know as Key Person Insurance) is also very important to have if you manage either a small or big business.

According to statistics, only 28% of UK business’s established in the last two years have any kind of business protection in place. Yet 46% would cease trading immediately if a key person died. Key Man Insurance is a policy taken out by a business to insure their most valuable employee’s (key people). The policy is designed to protect the company from the financial impacts of losing their key people through death or illness. The business owns the policy and is the beneficiary of any payout.

Policies can be taken out as a life only insurance or with critical illness included. The benefit is a tax-free lump sum which is paid to the company in the event of a claim. The cover is taken out over a term, normally a 5 year or 10 year guaranteed premium depending on how long you think it’s needed.

How can it improve your business?

Insurance can improve your business in more ways than one. The first is financially; business insurance provides that much-needed fall back just in case something does go wrong. Let’s say one of your employees is injured at work, or there’s an accident on a construction site – who’s going to pay for the damages and compensation? Paying out for these costs without valid business insurance could mean financial ruin for your business. Secondly, possessing valid business insurance is a great way of securing better contracts for your business, painting you as a responsible corporation and a professional workforce in the eyes of the hiring contractor.

Why does it make sense?

Although business insurance does come at a cost, we need to weigh these costs up with the amount of loss that could come your way if something does go wrong. You may be thinking that you’ve never experienced an accident in the 30 years you’ve been working in your trade. Getting Professional Indemnity Insurance always makes sense for your business since it can protect you incase things go wrong. The thing is that nobody plans for an accident – and an accident can happen at any time. If you’re considering the profits and losses of purchasing business insurance, then it’s important to weigh up the long-term costs and repercussions of not making this short-term purchase. You’re looking at expensive court fees and medical bills, potentially the solvency of your business, and the risk of bankruptcy across your personal finances

Business insurance is vital for any business looking to operate safely and responsibly in their chosen trade. Although it comes at a small, short-term cost, this temporary negative can certainly outweigh the enormous long-term financial troubles that could arise without valid public liability insurance.

Business

The Future of Business

As businesses struggle to cope with an ever changing world it can be hard to predict what the future holds. In any three month period there are normally dozens of political, economic, social and technological changes which can affect the way we do business. 

In March this year Yahoo produced an interesting article (full article click here) where leading journalists from The Telegraph and social media experts were asked to predict where SMEs would be in the next ten years. An almost impossible task you may think but the results were fascinating. Before they started to think ahead they took the time to look back over the last ten years and realised that SME’s in the UK had dealt with some unprecedented challenges including: Eurozone crisis, birth and explosion of Social Media, growth of online shopping, change of government and VAT rates, collapse of the high street banking industry, natural disasters affecting trade and the optimism of London 2012 Olympics.

In the next ten years businesses will certainly face similar challenges and as legislation increases regarding data protection, online shopping continues to grow and managing personal debt becomes an essential problem to tackle it’s bound to affect trade. Perhaps one of the biggest challenges is the growth of interactive media solutions in the home, touch screen technology and digital devices evolving at home and in the palm of your hand will increase pressure on businesses to perform. 

The evolution of Twitter, Facebook and instant messaging has made consumers more demanding and impatient than ever before. Businesses must monitor these new channels of communication carefully and decide on their approach to ensure they can preserve their reputations, deliver excellent customer service and offer choice and depth of products to satisfy consumer demand. As the world becomes more advanced the ability to source products globally will increase, this in turn will put pressure on UK businesses to ensure they can keep up on a worldwide stage.

So what can we conclude from these predictions? It seems clear that the business that manage to survive turmoil have several qualities in common; excellent fiscal management, ability to embrace new technology, wisdom to only adopt change when there’s a clear financial or strategic advantage to their business, insight to predict future trends and adapt their business to ensure they survive.