Things That You Can Do to Save Energy

January 28th, 2012 by admin No comments »

Things That You Can Do to Save Energy PictureHere are four uncommon things that you can do to save energy.

1) Change time zones.

That is, when possible, travel when others are less likely to be on the road. You will save gas by avoiding delays. For example, avoid rush hour traffic by leaving an hour early. Then use this extra hour to read, plan your day, or add an little extra to your job. If your company permits flex time hours, then you could leave for home before rush hour starts.

Also, consider shopping early or late in the day. Besides encountering less traffic, you will find that there are fewer shoppers and shorter lines in the stores. That produces a time saving bonus by making your shopping more efficient.

2) Ride a bicycle.

But do this in your car. That is, pretend that you have to peddle in order to make your car move. Avoid quick starts, acceleration up hills, and driving into a stop. Instead, start gradually, take it easy going up hills, and coast to a red light – just as if you were the engine.

Of course, use common sense. For example, move with the traffic and do this when appropriate.

3) Shut it off.

Some people leave the engine running when they park. This is a terrible idea because: a) it wastes gas, b) it leaves your car exposed to theft, and c) if children are left in the car, they could cause an accident by putting the car in gear.

Similarly, turn off the engine any time that you have to wait for more than about half a minute, such as at a railroad crossing.

Note: most cars use about a gallon of gas an hour while in idle. If gas costs $4 a gallon, then 15 minutes of idle will cost you a dollar.

4) Stop leaks.

Most offices have dozens of small transformers that supply power to computers, network hubs, printers, modems, scanners, and other accessories. Transformers are also used to recharge batteries in cell phones, cameras, and iPods.

These transformers keep using electricity even when the device has been turned off or disconnected from it. It’s like having a faucet leak around the clock. Drop by drop it’s wasting energy (and money).

While each transformer uses only a small amount of electricity, six or eight of them are equivalent to a standard light bulb. Over time that adds up to a significant amount of electricity.

Put all of the transformers on a circuit strip. They turn off the strip at the end of the day. Or, unplug the transformer when it’s not being used.

Similarly, check your home for electrical leaks. Unplug coffee makers, toasters, and small ovens. Some of these have decorative lights or clocks – all things that we can live without.

A Business Name and Formed A Corporation

January 25th, 2012 by admin No comments »

Forming a Corporation PictureYou’ve come up with the best idea since sliced bread, figured out a business name and formed a corporation. There is, however, one small problem. You need money. Welcome to the world of investing.

Business Funds

Unless Bill Gates is your friend, money is going to be a problem for every new business. Even the might Google had to hunt for cash with one of the founders of Sun Microsystems finally kicking down a much needed $100,000. Whether you decide to pimp your business plan to anyone breathing or beg your step-mother for funds, here are some issues to consider.

Investors are looking for the best deal, to wit, the most stock possible in an entity. If you are asking them for cash, they have the leverage. Don’t be so desperate that you give away the farm. All to often, I speak with individuals who started a business on a whim and have become disillusioned because they have lost equity in the business.

Assume I start a corporation and need funds. My neighbor agrees to kick in $20,000 for 20% of the stock. Things go great, but four months later I need another $50,000 for inventory and cash flow. My aunt agrees to kick in $50,000 for another 20% of the stock. Yikes, I am not even through the first year and I have given up 40% of the equity!

What happens in year two when I need a $100,000? I give up more stock and suddenly own less than 50% of the business. Inevitably, this leads to feelings of resentment and bitterness. “It was my idea, but now these blood suckers are going to get most of the money and they aren’t even working on the business.” This sentiment is so common that it would be laughable if it weren’t so depressing.

As a general rule, you should only sell ownership in a business as an absolute last resort. Instead, try to get loans from investors, banks, home equity lines and even credit cards.

If you must sell stock to raise funds, be very careful when valuing the stock. You should place a value on each share as though the company was already a raging success, not just starting out. Further, make sure you sell only small allotments of stock such as three to five percent. If you owned IBM, how much of the ownership would you sell for $20,000?

In Closing

When starting a corporation, guard equity as though it is the Holy Grail. If you don’t, you risk becoming a disillusioned shareholder down the road.