Understanding The Communication Strategy

Posted on February 6, 2022February 22, 2022 by Jennifer Brazer

Above all, the concept of communication strategy needs to be defined. The communication strategy is simply how a company prepares and coordinates its communication. It is a question for a company manager to determine in advance what his lines of communication are and with his customers as his partners and employees.

Contrary to popular belief, corporate communication will not be limited to a flyer or an advertisement. Like a real person, a company has a personality and a way of communicating. This is the communication strategy that will help an entrepreneur to focus his messages. By faithfully following his communication plan, the entrepreneur will give his company a real personality, which can only be positive for its reputation and reputation.

Where is communication going?

An effective communication plan must necessarily be as complete as possible. The communication strategy will therefore encompass the different communication targets. In business, professional communication is not unidirectional, i.e., it is not only between the company and the customer. On the contrary, the communicator must think of all the targets to be reached by the company communication:

All entrepreneurs think of the customer for brand communication. Indeed, advertising and information for the customer allow a company to increase its turnover and make itself known. Therefore, part of the communication strategy will focus on the company’s target and how to present the products and services. In addition to advertising, an entrepreneur must also think about institutional communication and think about how he wants to present the company to his customers.

The partner

Because another part of the company communication will concern the partners (suppliers, shareholders), more involved than customers without belonging to the company, partners must also be informed and receive a consistent image of the company. Knowing how to exchange correctly with its partners will also allow development opportunities.

Employees

Finally, while the two previous targets represent external communication, a business leader must never neglect internal communication, just as crucial for the proper functioning of his business. This time, it is about thinking about how employees view the company and how they communicate with each other. Being able to circulate information between the different services and spread a uniform message regardless of who the interlocutor is part of the communication strategy.

Understanding the complexity of corporate communication helps to better prepare your communication strategy. You must never forget the different communication targets when designing your communication plan. The main challenge is to deliver a consistent message and circulate information internally and externally.

Having a thoughtful communication strategy will notably make it possible to effectively train all employees so that they become ambassadors of the company. But is this the only benefit of a communication plan?

How important is a good communication strategy?

Now that we have looked in more detail at corporate communication and the importance of its targets, we should note the benefits of an effective communication strategy. If you are still skeptical about the usefulness of a communication plan, this should interest you.

If the benefits of corporate communication are numerous, we can focus on the three main ones:

Create the desire to buy

The primary goal of business communication and marketing is obviously to increase sales. Controlled external communication will highlight the company’s products and services to the right target. Mastering one’s communication strategy means offering the right image to the right target and thus generating sales.

Establish a corporate culture

Less obvious for a beginner communicator, the communication plan will help define the image of the company and create a personality. Thinking about how to present the company, both internally and externally, will help convey the company’s values, its symbols, and history. If this may seem incidental, it is not so! The corporate culture will indeed allow the customer, the partners, and the employees to appropriate the latter and to feel closer. Thanks to your communication strategy, you will strengthen your brand image and differentiate yourself from the competition.

Optimize relationships

Finally, your communication plan will allow you to optimize all your professional relationships. Taking control of your communication does not miss any opportunity and being closer to its customers and its partners. Internally, communication helps to strengthen team spirit and ownership. Externally, communication will strengthen relationships with partners and contact customers more.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Traditional Budgeting Techniques Guide

Posted on February 6, 2022October 6, 2025 by Jennifer Brazer

Unlock Financial Clarity:
Explore Traditional Budgeting Techniques

Traditional budgeting techniques are time-tested financial management methods that provide structure and clarity by categorizing income and expenses through proven frameworks like incremental budgeting, zero-based budgeting, and percentage-based allocation systems. These foundational approaches have guided individuals and businesses toward financial stability for decades through their emphasis on systematic planning, regular monitoring, and disciplined resource allocation.

After two decades of helping businesses streamline their finances at Complete Controller, I’ve witnessed countless entrepreneurs struggle with complex budgeting software only to find success by returning to fundamental traditional methods. In fact, only 51% of American adults spend less than their income each month, according to the Federal Reserve’s 2024 Survey—a statistic that underscores why systematic budgeting remains crucial for financial health. This comprehensive guide explores the most effective traditional budgeting techniques, their practical applications, and how modern businesses can leverage these time-honored approaches for sustainable financial growth.

What are traditional budgeting techniques and how do they work?

Traditional budgeting techniques are systematic approaches to financial planning that use established frameworks to allocate income across expenses, savings, and financial goals
These methods emphasize incremental planning, percentage-based allocation, and systematic tracking to maintain financial discipline and clarity
The most effective traditional techniques include incremental budgeting, zero-based budgeting, the 50/30/20 rule, and envelope systems for expense management
They work by creating predictable frameworks that reduce decision fatigue while ensuring comprehensive coverage of financial obligations
Success depends on consistent implementation, regular review cycles, and adaptation to changing financial circumstances while maintaining core methodological principles

The Foundation of Traditional Budgeting Methods

Traditional budgeting methods emerged from decades of financial planning wisdom, rooted in the fundamental principle that every dollar should have a designated purpose. These approaches developed during an era when financial tracking required manual calculation and physical record-keeping, creating inherently disciplined systems that modern technology has enhanced rather than replaced. The core strength of traditional budgeting lies in its systematic approach to financial decision-making, removing emotional spending triggers through predetermined allocation frameworks.

Understanding incremental budgeting fundamentals

Incremental budgeting, often called the “traditional” budgeting method, builds upon previous financial periods by making systematic adjustments to existing budget categories. This approach uses historical spending data as the foundation, typically adding or subtracting percentage-based changes to account for inflation, income growth, or changing circumstances. The method’s strength lies in its predictability and ease of implementation, making it particularly valuable for individuals and businesses with stable financial patterns.

The incremental approach works by taking last year’s budget as the baseline and adjusting each category based on anticipated changes. For example, if grocery expenses averaged $500 monthly last year, an incremental budget might allocate $550 for the current year to account for inflation and family growth. This systematic approach reduces the complexity of starting from scratch while maintaining realistic expectations based on proven spending patterns.

Historical development of budget planning strategies

Traditional budgeting techniques developed through practical necessity during the mid-20th century when financial management required manual calculation and physical tracking systems. The incremental method gained popularity in corporate environments during the 1950s and 1960s, when businesses needed reliable forecasting methods without access to sophisticated analytical tools. These early systems emphasized simplicity and consistency, principles that remain valuable in today’s complex financial landscape.

The evolution of personal budget planning followed similar patterns, with families adopting systematic approaches to manage household finances during periods of economic uncertainty. The Great Depression era particularly influenced the development of conservative, methodical budgeting practices that prioritized essential expenses and systematic savings accumulation. These historical influences shaped the foundational principles that continue to guide effective traditional budgeting today.

Core Traditional Budgeting Strategies for Financial Success

The most effective traditional budgeting strategies center on proven allocation methods that have demonstrated consistent results across diverse financial situations. These approaches provide structured frameworks for managing income while maintaining flexibility for life’s inevitable changes and opportunities. Understanding each method’s strengths enables individuals and businesses to select approaches that align with their financial complexity, discipline level, and long-term objectives.

Zero-based budget implementation techniques

Zero-based budgeting represents one of the most disciplined traditional approaches, requiring every dollar of income to receive specific allocation before the budgeting period begins. This method ensures maximum efficiency by eliminating unassigned funds that might otherwise be spent impulsively or ineffectively. The zero-based approach starts fresh each budgeting cycle, examining every expense category to justify its inclusion and amount rather than relying on previous spending patterns.

Implementation begins with calculating total monthly income, then systematically assigning funds to essential expenses, savings goals, and discretionary spending until the remaining balance reaches zero. This process forces deliberate decision-making about financial priorities while preventing accidental overspending. The method particularly benefits individuals who prefer detailed control over their finances and those working to maximize limited income through strategic allocation.

The zero-based budget excels in variable income situations because it adapts to actual earnings rather than projected amounts. When income fluctuates, users can adjust category allocations while maintaining the core principle of complete dollar assignment. This flexibility makes zero-based budgeting valuable for entrepreneurs, commission-based workers, and anyone experiencing income variability while maintaining systematic financial management.

The 50/30/20 rule for personal budget planning

The 50/30/20 budget rule provides a simplified traditional framework that allocates income across three broad categories: 50% for necessities, 30% for wants, and 20% for savings and debt repayment. This percentage-based approach offers structure without requiring detailed expense tracking, making it accessible for budgeting beginners or those who prefer streamlined financial management. The method’s popularity stems from its balance between financial responsibility and lifestyle flexibility.

Necessities (50%): Housing, utilities, groceries, transportation, insurance, minimum debt payments
Wants (30%): Entertainment, dining out, hobbies, non-essential purchases
Savings & Debt (20%): Emergency funds, retirement contributions, accelerated debt elimination

The rule’s effectiveness lies in its automatic prioritization of financial health while acknowledging the importance of discretionary spending for life satisfaction. By allocating 20% to savings and debt repayment before addressing wants, individuals build financial resilience while maintaining spending flexibility. This approach particularly benefits those who struggle with saving discipline, as the percentage system makes savings contributions feel like fixed expenses rather than optional activities.

Cash flow forecasting through envelope systems

The envelope system, also known as cash stuffing, represents one of the most tactile traditional budgeting approaches, using physical cash allocation to control spending across predetermined categories. This method involves placing specific cash amounts into labeled envelopes for different expense categories, creating visual and physical boundaries that prevent overspending. The system’s power lies in its immediate feedback mechanism—when an envelope is empty, spending in that category must stop until the next budgeting period.

Modern envelope system implementation extends beyond physical cash to include digital envelope applications and multiple account systems that replicate the same principles. The core concept remains consistent: pre-allocate specific amounts for each spending category and maintain strict boundaries to prevent category overflow. This approach particularly benefits visual learners and those who struggle with credit card overspending, as the physical or digital barriers create clear spending limits.

Routine Budget Assessment and Optimization Strategies

Systematic budget assessment forms the cornerstone of effective traditional budgeting, transforming static allocation plans into dynamic financial management systems that evolve with changing circumstances. Regular assessment enables early identification of variance patterns, optimization opportunities, and adjustment needs before they become significant problems. The assessment process itself reinforces budgeting discipline while providing objective feedback about financial progress and system effectiveness.

Monthly variance analysis provides immediate feedback about category performance, highlighting areas where actual spending consistently differs from planned amounts. However, advanced monitoring examines these variances for seasonal patterns, trending changes, and correlation with external factors like economic conditions or life changes. This analysis enables proactive adjustments that maintain budget accuracy while adapting to evolving circumstances.

Performance optimization requires balancing strict adherence to budget categories with practical flexibility for unexpected opportunities or challenges. Traditional methods provide the framework for this balance through regular review cycles that evaluate both individual category performance and overall financial progress. The goal is continuous improvement rather than perfection, recognizing that effective budgeting evolves with experience and changing life circumstances.

Final Thoughts

Traditional budgeting techniques remain powerful tools for achieving financial clarity and control in our increasingly complex economic landscape. Whether implementing incremental budgeting for stable income situations, zero-based approaches for maximum control, or the 50/30/20 rule for simplified management, these time-tested methods provide proven frameworks for financial success. The key lies in selecting methods that align with your specific circumstances while maintaining the discipline to implement them consistently.

As CEO of Complete Controller, I’ve seen firsthand how returning to these fundamental approaches transforms financial chaos into clarity. The statistics speak volumes—with research showing that half of small businesses skip formal budgeting entirely, those who embrace traditional methods gain significant competitive advantages. Your financial journey deserves the same systematic attention these methods provide.

Ready to transform your financial management with proven traditional budgeting techniques? Contact the experts at Complete Controller for personalized guidance on implementing these strategies in your business. Our team specializes in helping entrepreneurs break free from financial confusion and build sustainable systems for long-term success.

Frequently Asked Questions About Traditional Budgeting Techniques

What is the main difference between incremental and zero-based budgeting?

Incremental budgeting uses previous periods as baselines and makes adjustments for the new period, while zero-based budgeting starts from scratch each cycle, requiring justification for every expense. Incremental budgeting works best for stable situations, while zero-based offers more control and flexibility for changing circumstances.

How do I choose between the 50/30/20 rule and envelope budgeting?

The 50/30/20 rule works best for those seeking simplified percentage-based allocation with minimal tracking, while envelope budgeting suits people who need tangible spending limits and struggle with overspending. Consider your spending habits and how much detail you prefer in financial tracking.

Can traditional budgeting methods work for irregular income?

Yes, traditional methods like zero-based budgeting excel with irregular income because they adapt to actual earnings each period. The key is budgeting based on your lowest expected income month and treating extra earnings as bonus allocations for savings or debt reduction.

How often should I review and adjust my traditional budget?

Monthly reviews are ideal for tracking variances and making minor adjustments, with comprehensive quarterly assessments for major category changes. Annual reviews should evaluate overall budgeting method effectiveness and consider switching approaches if your financial situation has significantly changed.

What’s the biggest mistake people make with traditional budgeting?

The most common mistake is creating overly restrictive budgets that don’t account for real-life flexibility needs. Successful traditional budgeting balances discipline with practical allowances for unexpected expenses and occasional indulgences, preventing budget abandonment due to unrealistic expectations.

Sources

Fed Communities. (2024). “Economic Well-Being of US Households in 2024.” Federal Reserve.
FINRA Investor Education Foundation. (2015). “American Budgeting and Saving Behavior.” National Financial Capability Study.
Clutch.co. (2020). “How Small Businesses Budget.”
QuickBooks. (2023). “Small Business Budgeting Practices Analysis.” Intuit.
Chicago Booth Review. (2023). “Consumer Budgeting Insights and Behaviors.”
Complete Controller. (2023). “5 Money Management Tips to Help Avoid a Deficit.”
Complete Controller. (2023). “Small Business Bookkeeping: 9 Tips and Tricks.”
Complete Controller. (2023). “Importance of Reconciling Your Accounting Statements Regularly.”
Criterion Global. (2019). “From ‘Bloody’ Cuts to Strategic Gains: 3 Zero Based Budgeting Examples.”
Consumer Financial Protection Bureau. (2024). “How to Create a Budget Plan.”
Investopedia. (2024). “Zero-Based Budgeting.”
Investopedia. (2024). “The Right Way to Budgeting.”
Flesher, Tonka K. (1950). “Short History Of Budgeting.” The Woman CPA.
Branding Strategy Insider. (2019). “Kraft Heinz: A Case Of Brand Mismanagement And Value Destruction.”

Jennifer Brazer Founder/CEO

Jennifer is the author of From Cubicle to Cloud and Founder/CEO of Complete Controller, a pioneering financial services firm that helps entrepreneurs break free of traditional constraints and scale their businesses to new heights.

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Is Sole Proprietorship Better For Small Businesses?

Posted on February 5, 2022February 22, 2022 by Jennifer Brazer

The sole proprietorship is an unincorporated business owned and run by one person – with zero distinction between the owner and the business. The sole proprietor enjoys all the profits and is personally responsible for all business liabilities, losses, and debts. A sole proprietorship is one of the latest expensive business structures to start.

Think about it, just one person, owning a business all by himself, the legal requirements are as basic as it can get, and all the profit that the business offers. Similarly, if things go south, just that one person gets to take care of all the mess. But a sole proprietorship is a well-intentioned model for small business owners who don’t intend initially to derive large profits. In short, it is great if you are thinking about operating a small business.

Sole proprietorship and small businesses

Most people consider the sole proprietorship and its owner identical. A sole proprietorship can be defined as a small business when it comes to succeeding for small business health insurance. Still, if you have no workforce but yourself, your sole proprietorship will most likely not qualify for a group plan.

Sole proprietors can hire people, just like any other small business owner. According to the IRS, any time a sole proprietor employs someone other than an independent contractor.

Although being a sole proprietorship is the simplest form to structure any small business, you may be a little unsure of how being one affects the health insurance options. If a sole proprietorship has a few employees, it might qualify for group health insurance.

Let us take a look at the defining characteristics of a sole proprietorship:

No corporate entity exists
Ownership by one self-employed individual
The owner remains responsible for liabilities and business assets
The owner is an extension of its business

A good business practice

As the owner in a sole proprietorship, you get to make all the decisions and call all shots. You have no partners to consult with or some board of directors to discuss with either. You will also have personal liability protection. Just like that, there are multiple benefits of a sole proprietorship; let us discuss:

Complete ownership

Believe it or not, at some point, sharing business ownership can be very difficult, even if you think that you get along with your co-owner pretty well. When you are the only one managing and making all the decisions, you are not responsible for other people’s mistakes. It’s like a one-person show – you have the spotlight, and you get to do whatever you feel like.

You get to choose how many days your business will operate and which times to come in; plus, you are held responsible for your work by yourself and the clients. With complete ownership comes a complete hold of profits. You get to enjoy all the profit you make, and it is your decision where you use it.

A simple process to kickstart

Typically, a business owner’s job when forming a sole proprietorship is to register with the local office and obtain necessary licenses. A sole proprietorship does not need legal counsel to build a business, which helps reduce costs. As a sole proprietorship, you can file a business name but don’t have to do it. Business owners who operate a sole proprietorship can visit their local business and start working, which is simpler than any other business structure.

Most businesses are built because one person comes up with a great idea and takes the initiative right away. To start a sole proprietorship business in the United States is a huge advantage to the business owner because of the ease of starting one.

Simplistic ideas

You are already connected with your business when you are the only person dealing with all business matters, which is why you don’t have to file business taxes separate from your income taxes. The business income is your income, so a personal tax return and a tax form (Schedule C) allow one to report income and losses to the IRS using the SSN. In addition to all your business-related expenses, they are tax-deductible, including the cost of travel, goods, expenses, and more. The tax rates are lower for sole proprietors than corporations and partnerships.

All in all

Sole proprietorship allows people to open their businesses with complete ownership and responsibility for their success and failures. However, it’s essential to remember that starting and then operating a business can be equally stressful and hard as it is rewarding.

Even if you believe that sole proprietorship is the best option for you, surround yourself with positive energy and great support from other business owners; local business centers can also help you thrive in operating and growing the business.

Is It Possible To Take Out Online Insurance?

Posted on February 5, 2022February 22, 2022 by Jennifer Brazer

You can purchase accident coverage online pretty much as effectively as you can purchase whatever else. Like different internet businesses, vehicle protection shopping lets you rapidly analyze contributions and costs from numerous sellers. It makes it simple for you to determine highlights you need—and channel out those you needn’t bother with.

Looking for collision protection online beats different types of internet shopping in one essential manner: You can generally finish your buy and get inclusion immediately. In any case, there are a couple of ways purchasing vehicle protection online is more chaotic than normal e-shopping, so here are a couple of things to remember.

Except if you’ve figured out how to close out all business media, advertisements have likely made you mindful of, at any rate, a couple of vehicle insurance agencies that work in selling on the web. Numerous conventional auto guarantors are additionally direct businesses on the web. If you have a favored seller, you can begin with them or type “online collision protection” into your preferred web index. You’ll probably discover heaps of individual guarantors, in addition to a couple of destinations that let you analyze offers from different organizations.

While value cites help contrast organizations’ relative costs, remember that they are gauges and liable to change dependent on the last check of your driving history and, regularly, your FICO assessment. Getting the last statement expects you to enter extra close-to-home data into the online web structure, conceivably including your driver’s permit number or Social Security number. On the off chance that you were to blame for ongoing fender benders, or if your financial assessment is not exactly uncommon, your last statement could be fundamentally higher than the assessed one.

If your last value quote is significantly higher than the gauge, attempt an alternate backup plan, yet remember that whatever variables caused a superior bounce with one organization will probably cause similar climbs in the last statements from others. At any rate, consider getting the last statements from the organizations that gave you your three most reduced evaluations. It’s conceivable that your least last statement won’t be from the one with the most minimal gauge.

In an environment of maximum digitalization, where we hire all services through the internet, insurance could not be otherwise. However, it is not yet a very common operation since we tend to compare and go to the insurer to hire it. But why take out online insurance?

Why buy insurance online?

Some of the reasons that would lead us to say that it is an excellent option to take out insurance online are the following:

Comfort: you can access it anytime and anywhere without having to travel to the office. You have freedom of schedules since you do not depend on customer service hours.
Speed: in a very short time, you can have a list of the cheapest insurance thanks to the large number of comparators that are available today. That is, you save time by not having to leave home.
Easy to consult information: all insurers have updated their website with all the insurance information, conditions, and coverage.
Price of insurance: we can get a cheaper price online in many cases, as insurers eliminate costs of both the rental of the premises and personnel. You will save money because, normally, insurance prices are cheaper by hiring it through the web due to the offers they are launching.
New companies: when searching and comparing on the internet, we may find a few known insurers, but they offer us insurance that adapts to what we are looking for at a better price.

Also, when hiring insurance online, we have assisted in the form of chat on the websites of insurers. And above all, we eliminate the pressure of the agents, since online, we take out insurance based on what you need.

And once I have it, how do I manage my insurance online?

Once we have decided and we have contracted our insurance online, another question may arise, and now what? How do I manage my insurance? Most insurers are already prepared so that their clients can manage their insurance online and do not have to worry about the times when your insurer can assist you.

How to Choose The Best Property to Invest In?

Posted on February 5, 2022February 23, 2022 by Jennifer Brazer

To take full advantage of an investment in real estate, you need to know how to do it right. And that choice is crucial so that you benefit from the whole process. Some steps to the perfect choice include:

Assess your financial situation

Remember that investing in a particular property should not jeopardize your financial health. It means that it is not exactly advantageous to make debts to acquire a property, since that way, the investment already gets compromised when it should be a way to improve your financial situation. So start by making this assessment to find the real value that you can apply in this endeavor to get comfortable with the investment.

Study the market well

Even facing a troubled time, the real estate market generally presents some trends. Depending on where you buy your property, a commercial property may be far more profitable than a residential unit – or the other way around. Therefore, it is worth knowing the local market very well to understand which type of property pays the most, possibly generating better results shortly.

Do an objective analysis

Forget preferences and personal criteria when thinking about real estate investment! Unless the good is really for one’s use (which is hardly the case when one intends to invest), one must think in a very focused and objective manner. So, considering the market analysis, evaluate whether the real estate considered is the most recommended for such a situation. Getting carried away by emotion at this point will probably cause you to lose money and waste the opportunity to take advantage of better profitability in the future.

Prepare for investment

It’s not because you found the one that looks like a good business opportunity that you should cling to without thinking twice, okay? To make a good investment, you must, first of all, know. So you will need to understand very well both the real estate market and the context in which you are (or want to insert yourself) to know what works and what does not. Without this kind of preparation, you run the risk of investing now, and then you come across an option that would have been more advantageous if you knew exactly what to look for.

Define the investment objective

And speaking of what to look for, setting the investment objective is essential. Think about it: a property for seasonal rentals requires a more privileged location. In contrast, property for long-term rental should be more versatile, as well as a new property or with the possibility of reform and appreciation works best for resale. Exactly why, before allocating your resources, you must define the main objective of the investment, seeking from there a property with the right characteristics to fulfill such function in the desired way.

Property-related hiccups and difficulties can make untold pressure, stress, and anguish, which accomplish the contrary result to what effective contributing is about. To assist you with pushing ahead on your venture.

Capital development is a huge factor in property speculation, so consistently be watching out for regions that are growing as far as population, the economy, and neighborhood foundation. It is why CBDs and their encompasses are in such appeal as speculation areas.

It doesn’t mean you ought to put resources into your terrace; rather, it implies you ought to become acquainted with your potential venture area just as you most likely are aware of your home neighborhood. Become a specialist in investigating the region, from opening rates and socioeconomics to gathering spending and capital development rates.

Particularly for those whose income is tight, it’s critical to purchase where you won’t go into the red. While markets like Sydney have been extraordinary for capital development, they are costly to get tied up with and similarly as costly to hold. Make sure to watch out for rental yield patterns when settling on a speculation property.

Account-Based Marketing Explained Briefly

Posted on February 4, 2022March 7, 2023 by Jennifer Brazer

Account-Based Marketing (ABM) is the highly targeted approach of named potential corporate customers in the B2B marketing and sales approach. Here you can read what is behind it.

With Account-Based Marketing (ABM), the costs are significantly lower due to the targeted targeting, and the conversion rates are often five times as high as with traditional B2B marketing. Special B2B marketing automation tools can support this.

ABM automates both online and classic offline channels and is aimed at both marketing and sales managers.

Sales and Marketing work hand in hand

The target group of many B2B companies is so narrow that traditional marketing for these companies in the past hardly seemed to make sense. Marketing often only played a supporting role here. Account managers and business developers with a strong sales DNA have always kept a list of target companies, so-called named target accounts.

Results-oriented CMOs and CSOs work together on a central list – for example, in CRM. This is where Account-Based Marketing comes in. All marketing measures are tailored to these companies and perfectly individualized for each account.

Change of Direction

ABM is often referred to as flipping the sales funnel (flip the funnel). What is meant here is that, unlike traditional marketing, a broad target group of people is not addressed, and the proper accounts are only filtered out afterward. Instead, the approach to the ABM is already targeted to named accounts. The measures then ideally lead to contact with several decision-makers in the buying committee.

Exactly defined Goals

As in any other area, marketing also benefits from the possibilities of digitization. What is meant here is not simply online marketing but the automation and personalization of large parts of marketing – certainly also in offline channels.

The main Steps in ABM include

· The selection of the target accounts (Account Selection),

· The intelligent personalization of the address as well

· The control of suitable marketing measures.

Martech and ABM markets are still very Heterogeneous

The Martech branch (Marketing Technology) has brought a whole range of innovative companies through the market maturity of artificial intelligence. Especially in the United States, some players have established themselves that support marketing and sales managers with various ABM approach when approaching customers. However, full-service providers are expensive, and the start is overly complex.

Therefore, developing a phased strategy for account-based marketing is advisable. This includes carefully examining which features promise the greatest benefits during implementation and starting with them. The following features should be introduced one after the other, and the effects should be checked and optimized.

Warning: not all US providers are compatible with the General Data Protection Regulation (GDPR).

Use of machine learning for Account selection

Modern software providers for account-based marketing automatically collect many signals from freely available and commercial sources, which could be used as indicators of projects and purchase intentions at the target company. In addition to company data such as size in sales and employees, industry, or headquarters (Firmographics), data on the use of certain technologies can also be included in the target account (so-called Technographics), especially for providers from the IT industry.

The larger and better the amount of data available, the more targeted customers can be identified.

Artificial Intelligence (AI) and Machine Learning (ML) are used to evaluate many of these so-called intent signals. In addition to prioritization, other target accounts can be suggested by searching for statistical twins.

Individualization on a Large scale

The personalization is ideally based on data about the company, the role of the individual in the buying committee, and the status along the customer journey. For example, an IT service provider could convince the CIO with technical arguments and the buyer with commercial and data protection officers with the appropriate arguments.

A complimentary service could now be the right offer if the potential customer with service is still in a contractual relationship with a competitor.

On a few Accounts, but across all Channels

Online and offline channels can be controlled: The website is dynamically adapted to visitors. If it cannot be identified via a cookie, the IP address can provide information about the company.

Online advertisement is played IP-based, geo-based, or via retargeting.

Even individualized post mailings are experiencing a renaissance. Good ABM tools connect to the relevant CRMs and the social networks used in sales, such as LinkedIn. This means that the sales department can also access the information, contact the potential customer at the appropriate time, and make him the customer.

Everything You Need to Know About Private Annuity

Posted on February 4, 2022February 19, 2022 by Jennifer Brazer

What is a private annuity?

A private annuity is an estate planning strategy that involves the signing of an agreement between an annuitant, the entity who is the beneficiary of the annuity/pension, and an obligor, also known as the debtor. This agreement includes the transference of the annuitant’s property to the obligor, in return for which an obligor promises regular payments throughout the lifespan of the annuitant. The property transferred is removed from the obligor’s estate, but the payments received in exchange for the property are a part of the estate. The strategy of private annuity works perfectly in a scenario where a person possesses a low basis property.

The condition on which this agreement is signed is that none of the parties involved in annuity selling business, such as an employee of an insurance company. Also, if a person’s life expectancy is less than a year, they cannot be a part of a private annuity.

Benefits of the private annuity:

There are significant benefits of a private annuity, and that is why many people choose to make this a part of their estate plan.

(i) No gift tax:

Estate property is exchanged with a beneficiary in return for an unsecured promise of annual payments. It is termed as private because no commercial party is involved. This exchange of property, if carried out correctly, may be treated as a sale rather than a gift. No gift tax is imposed on this transaction if the sum of total annuities paid equals the property’s present value in the market.

(ii) Non-Income property provides income:

Another benefit of incorporating this strategy into an estate plan is that a non-income property is converted into an income-producing property.

(iii) Continuous source of income:

It also provides a continuous stream of income throughout the lifespan of an obligor. In addition to this, if a person does not live to the expected age, their family will get a significant number of payments.

Risks involved in a private annuity:

Even though this estate planning strategy boasts excellent benefits to the obligor and its family, it also involves some risks that cannot be ignored.

(i) Reverse mortality risk:

Unlike other estate planning strategies, a private annuity has a reverse mortality risk. If the obligor lives for more than the expected years, the payments of an annuity will surpass the property’s market value. As a result of this, it will cause the obligor’s family to overpay for the property that was transferred, increasing the taxable estate’s size.

To cope with this risk, a deferred private annuity must be considered. This leads to a delay in the annuity payments, thus, reducing the reverse mortality risk.

(ii) Annuitant unable to make annuity payments:

The chances of a transferee being unable to make the annuity payments are high. As this agreement is based upon unsecured obligation, there are many possibilities that this might happen. In such a case, the Internal Revenue Service will label this arrangement as a gift, imposing the gift tax on it.

Role of life expectancy:

The role of life expectancy in a private annuity cannot be neglected. It is on this factor the whole agreement depends upon. Even the value of the annuity payments depends upon life expectancy. If a person has a higher life expectancy, the annuity payments will be of a lower value. In comparison, a person with a lower life expectancy will be subjected to higher annuity payments. Also, if a person is extremely ill and the life expectancy is less than a year, they cannot opt for a private annuity! It is best to take legal advice before jumping right into the agreement, as there is much to understand!

How to Finance a Car in 5 Easy Steps?

Posted on February 4, 2022February 19, 2022 by Jennifer Brazer

Are you thinking about buying a new car but do not know how to finance it? Most people finance their vehicles. These are the six most common ways to do it. Which one is best for you?

Obtain a personal loan from a financial institution

It is the most common form of financing usually offered by banks, savings banks, and other credit institutions. To access these loans, you will have to show that you have good credit and can return the money within the agreed period.

The interests and the total costs can vary a lot between the different loan providers, making the purchase of the vehicle much more expensive. Keep in mind that the provider will pretend to secure the loan with one of your assets. By doing this, you may put your possessions at risk.

Pros: you can process it quickly and immediately dispose of the funds.
Cons: the risk and the interest rate can be high.

Obtain a loan from a friend or relative

Another option is to get a loan from a friend, relative, or acquaintance instead of a credit institution. In this case, it is essential to discuss the loan in detail and leave everything in writing to avoid future problems.

Pros: it is unnecessary to perform any solvency analysis, and you will have more flexibility. Depending on your relationship with the person who lends you the money, the interest rate may be lower or even non-existent.
Cons: You can put at risk a friendship or a family relationship.

Purchase in installments

This method of financing is based on purchasing by installments. It consists of signing a contract with the seller (local or international) by which you agree to buy a vehicle in a certain period. You can use the vehicle while paying fixed monthly fees until paying the full price.

You will be the registered driver and responsible for insurance and vehicle maintenance, but the seller will be the legal owner until the last payment is effective. Afterward, the car will be entirely owned by you.

Pros: sellers offer this alternative directly, and it is quite simple and quick to process. Payments are flexible, and the deposit is generally small.
Cons: You may end up paying more in the long term because the interest rate will generally be higher, which is also a drawback. Unlike flexible financing, you usually cannot change the car for another model once it is your property.

Flexible financing

The largest car brands offer the possibility of a flexible payment plan. It is an option like the purchase in installments with some differences. Unlike the previous method, when you complete all the payments, you can decide to keep the car or return it without any commitment or exchange it for another model of the same brand and pay the difference.

You could also negotiate a discount for the new model. This option is usually offered for specific models of the brand and not for all available cars.

Pros: You can change your mind at the end of the contract about which car you want to have. You have the confidence that offers you a great brand of vehicles recognized in the market.
Cons: Contract terms may be less flexible to negotiate than with an installment purchase.

Financial leasing

If you are considering renting a car through leasing or renting, you will have to make a monthly payment to the leasing entity to use the vehicle. The only requirement is that the mileage cannot exceed a specified limit. At the end of the contract, you will have to return the vehicle to the entity or buy it for its residual value (some dealers do not offer the purchase option).

Pros: you will not have to worry about the vehicle’s depreciation, and you can easily switch to another model.
Cons: the total costs of the operation can be high due to all the included services. A penalty may have to be paid in the case of exceeding the allowed mileage limit.

What Can You Get From Refinancing Your Mortgage?

Posted on February 3, 2022February 15, 2022 by Jennifer Brazer

The refinancing of the mortgage involves changing the mortgage contract, so it is possible to modify every one of the conditions of the same:

You can extend the capital of the mortgage loan

In this case, the refinancing is used to get more capital in exchange for mortgaging our property. Usually, it is an option destined to finance another type of operation different from the property’s original purchase. For example, to undertake a home reform, buy a new car, etc. Certainly, increasing the debt owed to the bank is not an ideal scenario, so we recommend you weigh all your options.

You can extend or reduce the repayment term

As a rule, the refinancing of mortgages usually takes place to extend the repayment period and thus reduce the monthly payment amount. However, if the circumstances are appropriate, nothing prevents reducing this period to finish paying the mortgage earlier than originally thought. However, the latter option can also take place through early amortization, either partial or total, which can be less expensive than refinancing in terms of fees.

You can get a lower interest rate

Suppose there is a mortgage available at a lower interest rate than the one we are currently paying. In that case, it is possible to refinance and formalize a more favorable contract in that sense. This is precisely one of the great incentives of the current mortgage market, characterized by much lower rates than in the pre-crisis real estate era.

You can modify any other condition of the mortgage

Mortgage contracts are usually characterized by the inclusion of multiple conditions, such as direct debit of payroll, contracting life and home insurance, making purchases with the card for an annual value of a certain amount, etc.

These types of conditions are known as mechanisms of connection with the bank because we are obliged to maintain a much closer relationship with the bank.

Thanks to the refinancing, the new mortgage contract could dispense with these conditions, which undoubtedly means greater freedom to do what we want with our economic resources and hire financial services wherever we want, instead of where our bank wants.

How can you refinance your mortgage most efficiently?

There are many mechanisms to proceed with the refinancing of your mortgage. Each of them has its advantages and disadvantages.

Refinancing through mortgage novation

In this case, we are proceeding to modify the mortgage contract terms with our bank.

As a rule, the main cost of this operation is the payment of the commission for mortgage novation, if that is how it has been recorded in the original contract.

The main advantage is that it is a relatively fast operation, at least, if we compare it with the other alternatives.

The main drawback is that we are only negotiating with our bank, so we are at the mercy of what is willing to consent. Therefore, the offers that other banking entities may have do not come into play.

Refinancing through mortgage subrogation

Mortgage subrogation involves moving our mortgage to another bank, replacing one of the parties to the original contract bank with another.

This operation allows the change of almost all the conditions of the contract, except for the modification of the capital of the loan or the holders.

Refinancing through early cancellation

Finally, there is always the possibility of proceeding to cancel early the current mortgage, with the capital that we have obtained by hiring a new mortgage.

It is the option that offers greater freedom, given that the new mortgage contract may have different conditions to the old one. The goal is to have more favorable conditions. The biggest drawback of this alternative is that early cancellation costs are added to the new mortgage contract.

For this reason, we must ensure that the total interest we will pay for the new mortgage is smaller and compensates for the refinancing costs.

In conclusion, the refinancing of your mortgage should be an alternative to use if the benefits obtained more than offset the costs that we must assume.

Under no circumstances should we be driven by the impulse to refinance our mortgage blinded by the idea of paying a lower interest rate, or reduced monthly fees, without first checking the impact of the total costs of the entire operation.

If the result is favorable, then refinancing is a good idea. In the opposite case, we should continue to pay our current mortgage as before and look for other alternatives to improve our financial situation.

How to Buy a Car with Confidence?

Posted on February 3, 2022February 17, 2022 by Jennifer Brazer

People set financial goals such as buying a house, starting a business, or buying their dream car. They spend all their lives striving to achieve these goals.

Buying a car is a huge decision for an American with an average income, as a vehicle does not come cheap. An individual must cut down on a lot of expenses to save for the down payment and get a smart financing plan for the remaining balance.

As deciding on buying a car is challenging, it makes a person unsure whether it is right. This uncertainty makes it difficult for a person to make the tough choices involved in the process of purchasing a car.

Going through the process of buying a car, it is important to approach the dealers with confidence. This article covers the most effective tips to help buyers gain the kind of confidence the process requires.

Set a budget!

Having a budget set before approaching a dealer is the best thing to do. Not only does one needs to set a budget, but one must also strictly stick to it. A plan lists the amount one can pay as the down payment, the right financing plan, insurance cost, and the fuel economy. People in this stage can use auto loan calculating tools that are available all over the internet.

Set your requirements

Car dealers are very smart. They try to lure the customers into buying a car that increases their chance of getting a good commission. Therefore, before one plans to visit a dealer, having a clear picture of all the requirements will help. Being determined about what one needs gives them an edge over the dealer.

While listing down the car requirements, a smart choice is to go for a used car. It is incredibly beneficial in terms of the depreciating value. A used car has already passed its depreciating value, and its value will drop slower than that of a new car. Every year, a new car’s value depreciates at a rate of 19% of the original price. After four years, this value will be equal to half of what a buyer paid at the time the car was purchased.

An individual must have complete knowledge about the difference between the invoice price, and the Manufacturer Suggested Retail Price – MSRP. It hands over the control of the negotiation in the hands of the buyer.

When a buyer clearly understands what they want, lower will be the chances of a buyer getting brainwashed by a car dealer.

Negotiate and do not feel guilty

Negotiation is the right of every buyer. Many people, while buying, feel guilty about not paying a seller the amount they asked for. Often, sellers ask for an unjustified high price which is unfair to the buyers. It is essential to negotiate with a seller, especially with a car dealer, only after completing homework.

A car dealer will make the MSPR the rate of price negotiation and ask for a much higher price. When a buyer has enough knowledge about the invoice price, they can make that the basis of their negotiation. It will give a dealer an idea that a buyer has the knowledge and will quote a sensible price.

According to studies and reports, the most reasonable target price is 5% over the dealer price. A dealer will try to sell add-ons that a buyer does not need. As the convincing power of these car dealers is strong, a buyer will agree to what a dealer says. A buyer who has all the requirements listed down; will be able to negotiate with a stronger stance. It will save a buyer from paying for something they did not need.

Prearrange your finances

Disorganized finances lead to financial chaos in the lives of people. When a person has not prearranged finances, buying a car is complicated. Therefore, before a buyer goes to a dealer, they must opt for a prequalification loan from the bank. It is easier to get the best interest rates for people who shop around.

A major benefit of prearranging the finances helps keep this topic out of negotiating. Bringing the finances into a conversation with a car dealer will give leverage to the car dealer over a buyer. Arranging all the finances before the purchase is made helps buyers portray themselves as cash buyers. Buyers must not provide a seller with any leverage above them.

Do not be emotional

To have a determined mind and a strong heart is important for people in the middle of buying a car. It is not easy to get a vehicle with requirements set and a budget planned. It takes more time than usual for people to get a vehicle in such a situation. A buyer must be determined about sticking to the budget, or else they will end up paying more than planned, disrupting the financial situation. A buyer’s heart must be strong enough to walk away from a car they like if a dealer asks for a higher price. It is the best decision, and an individual will understand how beneficial it will be in the future!

These are the most effective ways to buy a car with confidence and without stress. By incorporating these tips in the purchase process, the balance of life will stay unaffected. Handling the car dealers is tough, but approaching them with confidence helps a buyer take control of the whole process.