If you read all the doom and gloom accounts about our economy it is enough to make you want to gab your security blanket, stick your thumb in your mouth and take a long nap and try to just forget about it! So how bad are things right now and what should we do about it to protect our assets?  First off are we really on shaky ground?  What is really going on?  Historians say that all nations go through cycles. In terms of cycles we as a nation seem to have been fat, dumb and happy for a long time.  We have experienced unprecedented prosperity.  But you can’t run trade deficits forever.  Personally you can’t spend more than you earn forever and not even the US Government can run deficits indefinitely and get away with it.  Where are we in our cycle?  Once you get past prosperity then comes apathy.  After apathy comes bondage.  Could that be financial bondage for us? So what should we do in view of the current uncertainty?  We need principals to live by.  If we spend less than we make personally and require our government to do the same, then we will be on solid ground.  If we don’t expect the government to do too much then that is good.  But this is most important: it says in the Bible that blessed is the nation whose God is the LORD.  There is a definite link between our trusting God and honoring Him as a nation and being blessed because of it.  If we trust and honor Him then we won’t have anything to fear.  But if not then we won’t continue to enjoy the prosperity which He has given us.   God says, “If My people who are called by name will humble themselves and pray and seek My face and turn from their wicked ways, then I will hear from heaven, will forgive their sin and will heal their land.” Let’s hope and pray that we don’t have to experience a total economic meltdown before we get our priorities right and put God first and trust Him alone!  To discover how your can protect your business and personal assets contact Mr. Scott Singletary, Vice PresidentBB&T at 678-762-5667.

As our economy still trends toward uneasiness it is time to continue to stay the course while putting good and wise practical business applications to work. Refreshing yourself daily with these words will assist you in riding out these current economic times.

Stay the Course. When times get rough we are apt to sell a good stock and invest in another which does not have the same economic potential. Often the desire to “do something” needs to be tempered with wise and judicious counsel. In tough economic times and now more than ever it is critical to stay the course not letting ourselves in getting caught up in short term financial decisions. While looking ahead we can hope for an anticipate better times and all decisions should be processed with a filter of what condition our economy is presently in.

Investing. Now is a grand time to invest in the stock market. Many portfolios are down over 10% just this past month alone making stocks a much better value than they were just thirty days ago. For those businesses who have excess cash flow being generated it is a great time to look to invest heavily in the market as gas prices and gloom and doom forecasters scare the market even further down. Accordingly today is one of the best opportunities you will have to get bargain sales prices on blue chip stocks and good mututal funds.

Good things happen. Good things happen to those who make the best of the way things turn out. With a down market there are many things going on creating opportunities in the marketplace which otherwise would not have existed. Although many will buy in psychologically in the gloomy forecasters prognosis, today is a great time to buckle down while focusing on what works and plan for a solid return to a good economy. Most forecasters beleive we are in a extended trough which is primarily being fed by fuel prices and the housing bust. Although these sectors are important the rest of the U.S. economy remains strong. Though workers and businesses alike will need to worker harder, smarter, and longer this is a great time to re-focus and re-direct on what works making your financial future all the brighter.

Stay tuned.

We are hearing it daily:  We are in tough economic times.  Gas prices are rising faster than our Atlanta summer temperatures, the housing market slowdown is affecting many ancillary industries, and recession is on the horizon or even here.  The business owners I talk to are asking how this affects the potential sale of their business, and what they should do about it. Some of the questions, all interrelated, are:

 Are there buyers out there?

There might be more buyers now than in good economic times.  As corporations downsize, laid off workers and managers look to escape the corporate world by owning their own business.    There are also industry or strategic buyers seeking opportunity by buying distressed companies. 

Will I get the price I want?

That depends.  Value is influenced less by the industry than by your specific operation.  It is influenced less by the national economy than by the state economy, which is less important than the local economy.  If you have a good operation even in a challenged industry, you will get a good price.  However, if your Financial Statements have been hurt by the current economy, you must analyze and decide if it is worth hanging in there for a turnaround which may be years away.  Determine a current market price based on trailing twelve months of performance versus the valuation on your projections for the future.  Is the difference enough to warrant waiting?  

 How long will it take to sell?

If you are in one of the distressed industries, and aren’t willing to accept a lowball offer, it may take longer to find a buyer who has the confidence to make a move. If you have an attractive business regardless of industry, you will find a buyer

What can I do to make my business more attractive to buyers?

·         Clean up the financial statements. Make sure you have 3 to 5 years of clean and accurate financial statements available.  If not clean and accurate, it will be discovered in the Due Diligence phase costing you much time and credibility.  In addition to your Income Tax Returns, have Income Statements (P & L) as well as Balance Sheets available.   Be able to identify the additional financial benefits to the owner hidden in these reports. ·         Physically improve the looks of facilities. Put new paint on the walls, decorate the public areas, make sure the equipment is clean and running well, and tidy up the office space.  If it appears you care about and attend to the details of the physical plant, buyers will believe you approach all aspects of your business with the same concern.  ·         Pay down debt, if you can.  Not only will it make your Balance Sheet more favorable, your Income Statement will improve by reducing the debt service.  For those industries where selling price is a multiple of Net Income, you will increase the sale price of your business proportionately.  ·         Document your business processes. Even if you may be planning to stay on after the sale for a transition period, potential buyers will be more comfortable if a business manual details exactly how your business is run. Take the time to document all the steps involved in your business cycle, including design, ordering, manufacturing, shipping, sales, disposal, billing, customer service, etc.·         Reduce the “you” in your business.  If you are your business, then your business is worth less without you.  If potential buyers believe that most of the business procured is based solely on your relationship with customers, they will anticipate losing business and discount their purchase offer accordingly.  Make the marketing and operational changes necessary to ensure your business can and does run without you.  ·         Prepare a business or marketing plan. Buyers will want to know what you are doing to maintain and grow your business.  Document your marketing strategies and identify your major customers.  Buyers are not, or at least should not be, satisfied with maintaining what you have built.  They want to grow your business.  Help them by pulling together information on industry and customer trends, and indicate how you would grow the business if you had the time, energy, and resources.   

As you may have realized, instituting all these steps are good moves to make even if you weren’t planning to sell.  But having made these adjustments, once you make the selling decision, you can move forward quickly.   And finally,

·         Gather pertinent business information. Buyers will want to know about such things as the number, skills and experience of your staff, the size and value of your facility, and the type of equipment and the amount of available inventory

·         Obtain an accurate and up-to-date valuation of the business.  To avoid selling your business at less than market value–or, conversely, pricing yourself out of market—obtain an accurate valuation of the business that is prepared by a professional who is familiar with the market place and valuation methodology. 

In my experience, there are always willing and able buyers for attractive, well run, and forward thinking businesses despite current economic conditions.  Making your business one of those is the secret to a profitable and quick sale. For more information, you can contact Hal Rogness of Walden Businesses, Inc. at 678-277-9951.

Soaring Gas Prices…The Triple Threat

Gas prices continue to soar as the national average for gas and diesel prices reach unprecedented levels. If the impact was not bad enough at the pump, the ”trickle down” effect on every item or good you purchase is facing undue price pressures as well. Although our dependence on foreign oil has continued to grow the dramatic upswing in prices is due predominantly to the rising prices of OPEC and other major suppliers raising their prices on barrels of crude oil. Many prognosticators believe that a gallon of gas might well approach the $5 dollar a gallon mark by year end with diesel fuel potentially surpassing $5.60 a gallon benchmark. Although this is affecting all consumers at the pump the most damaging impact in our economy is not at the pump but at the source where all goods and services are delivered.

All companies who transport their products are now paying higher fees for airfare, trucking, and rail  with no sector of the transportation industry going unscathed.  As the moving cost from suppliers to distributors and then from distributors to retailers increase, the corresponding costs have to be passed along each step of the way. A prudent investor should be able to expect inflation rates to be higher in 2008 than at any time in the last several years as the cost of services and products rise solely to maintain the already slipping margins most companies have been experiencing as a result of a general lessening of economic growth. Also, just as bad things seem to happen in threes so does our economy similarly suffer from first a downturn in the stock market, then a housing/debt crisis, followed shortly by heightening gas prices.

Much of the variations we have experienced in the stock market are part of the normal ups and downs which have occurred for decades and decades. However the housing and foreclosure debacle issues are at previously unheard of proportions as anxious financiers/banks/lending institutions extended credit under relaxed lending criteria. Many of the homes lost in the last months were done from over zealous lenders granting monies and credit to those who otherwise would not have been granted a loan. Also consumers were to blame as they rushed out to obtain loans which extended their credit to such a level that any hiccup in their income stream would dramatically impact their ability to meet their monthly obligations as they became due.

-A sound plan to fund Social Security & Medicaid. As the baby boomers age, this issue, if left unsatisfactorily addressed will ail all for many generations to come.

-Fiscal responsibility at all levels of government. Although deficit spending is essential at times, it can never be done at the expense of sound financial management. Prudence in spending at all levels of government rather than special interest are critical to our country’s future.

To help ensure that the United States of America continues to be the world leader in all aspects of world affairs we first need to take care of our home turf. To this end we need to ensure that only forward thinking leaders are elected to any government positions and those to whom are unable to fulfill this requirement are soon booted from office. Our elected leaders need to united today on a non-partisan basis uniting Democrats and Republicans alike to once and for all. We need to demand that our leaders start today passing legislation which will require:

-A more sensible approach to oil research and development domestically. Untested and untapped oil reserves in Alaska and off our coasts should be carefully evaluated and drilled to maximize our efforts in becoming more self sufficient.

-Alternative energy fuels such as bio-diesel, electric, hydro power, and solar efforts should be offered incentives to maximize research and development.

-Our nuclear energy efforts should be resumed while being sure to add sufficient stringent guidelines to alleviate any substantive environmental concerns.

-Required higher standards of mileage per gallon ratings of all types of passenger and trucking vehicles should be mandated requiring automotive manufactures to step up to the plate to do more.

Talk is cheap. Making critical decisions which will impact not only our economy is not for the faint of heart or ill prepared. Tough decisions will have to made at all levels if we are to avoid a burgeoning problem in our economy today and in the future. Write all of your elected officials being sure that they know where you stand on making America a better place for us all to live; your future and that of your children depend on it.

Finding an Atlanta CPA is not as difficult as some make it out to be nor is it as easy as some would like to think. When looking for a good CPA for your business you will want to be sure of the below factors before making your decision. How well you select your CPA will impact the financial health of your business, your employees, and even your long term financial security of your retirement. By utilization of these criteria you will be best armed to look at finding a CPA who is best apt to help guide your business to the Promised Land of financial success.

Seek to find a CPA who is not transaction oriented. Anyone can do what you ask or perhaps even file your returns for a few years while striving to keep your tax bill as low as legally possible. You will want to find a CPA whose ambition matches that of your own including your zeal and temperament and one who is a forward thinker. His practice and focus should be foward thinking and insightful, while consistently giving advice focusing on the future of your business and not solely an interpreter of its past. No CPA can change what has already transpired but a wise and sage CPA can help you and your business avoid pitfalls which will befall you otherwise. A CPA can help strengthen your management team, if used wisely and often, and can help guide you through many of business most thought provoking issues while offering counsel to both maximize your time and efforts.

Retain a CPA who has consistently outperformed his peers. You can discover this by seeking to know what civic and business organizations they belong to and what positions they have held. Learn about their civic callings, their involvement in community issues, and what they have done to make the world a better place. Do they frequently volunteer their time in both missions and work related activities? Although being a member and team player are important aspects to all of our lives, seek out a CPA who constantly excels in all areas of their lives. Check their grades in college.  Did they pass the CPA exam early?  Did they graduate with honors?  Did they earn awards while in college?  These early indicators will be a prelude to what their business success will approximate.Review their web site to learn substantive content about their past achievements, current involvements, and content. Is their web site material insightful in nature?  Does it provide subject matter which will enable you to manage your business and personal financial affairs better?  Does it clearly list their achievements, goals, and aspirations for you and your business?

Check references and look into what a CPA’s  present customers say.  The reputations they have with the business and civic community alike are critical components of finding and retaining an adviser who is suitable to your business. Be sure to ask for references indicating their standards of performance and whether they consistently outperform  client expectations in response and turnaround time as well as the processing and quality of their work. Inquire as to whether their CPA is readily available by Internet, phone, and for meeting face to face. This is perhaps the most widely voiced complaint about CPA’s and also one of the most critical. What good is the best CPA in the world if you can’t get find them to get your answers resolved.

Seeking out a good CPA will be one of the most important and critical decisions you will ever reach so be sure to find someone who is both technically competent, excels in their work, is accessible, and who’s style and character match that of your own.

There are a few issues which always need to be in the forefront of every business owners mind as they think about and plan for the future. Planning is hard enough as it is without being sensitive to variables which are prone to have a profound impact on your business. Keeping these items in your mind and viewfinder will help you constantly stay update on your whereabouts and how to get back on track to achieve your calls.

-Document your goals in writing. You are most apt to achieve your goals if they are clearly delineated and detailed. Absent a firm goal you constantly refocus on you are most apt to miss the mark of what you were shooting to obtain in the first place. Always remember “if you shoot at nothing, you are going to hit it every time”.

-Expect the unexpected as “life is what happens while you are busy making plans”.  Your plans should allow for inflation, anticipate variances, and other unknowns which are bound to impact your decisions and daily operations. For example, it is prudent to always live below your means as life and business issues will frequently void the best laid plans.

-Always keep in mind a reasonable rate of return not expecting great rates of returns on your investments to always be consistent. Maintain an healthy degree of risk while not being too aggressive or passive in your investment style and decisions. Don’t make speculative investments trying to “hit the home run” as it is often the turtle and not the rabbit which wins the race. Maintain a consistent strategy of investing whether it be an up or down market. Be realistic with your investment goals whether they be dollars invested, rates of return, or anticipated age of retirement while always allowing for a bit of wiggle room for those unexpected expenditures.

-Stay current with your financial adviser, CPA, attorney, and banker being sure to know when to have meetings with each to ensure you are on the right track to take advantage of law changes, trends in the marketplace, and may of the other general tools available to an adviser to help manage you and your financial affairs throughout the years. As a general rule, I would suggest meeting with each of these professionals at least once annually and more often if the environment/situations change dramatically.

These tidbits will greatly assist you in staying on your toes as you plan the future success of your business and for your retirement.

JOHN WOODEN:
“FAILURE TO PREPARE IS PREPARING TO FAIL. BE QUICK, BUT DON’T BE IN A HURRY. DON’T MISTAKE ACTIVITY FOR ACHIEVEMENT. THE PURPOSE OF DISCIPLINE ISN’T TO PUNISH BUT TO CORRECT. THINGS TURN OUT BEST FOR THOSE WHO MADE THE BEST OF THE WAY THINGS TURN OUT.”

Attorneys use them to serve their clients, physicians utilize them to provide sound medical care, and business’s throughout the world use them. A checklist can be operational in nature to remind your staff of what is expected on each and every engagement serving as a tool to ensure that all appropriate and necessary tasks are completed. Operational and management standards are both critical to determine as a company needs to ensure that its goals and standards are being achieved while also achieving the company motto on each and every service or product delivered. A company’s motto is the standard and credence by which all transactions and interactions with clients as well as other staff are to be achieved and maintained.

A company without  a checklist is similar to a ship without a rudder. Although it might be under full power and at full tilt, a ship with direction and an operational compass is bound to miss its target. Unable to accurately guide itself a ship is apt to become increasingly off target and unable to find its destination regardless of how much harder it plows ahead. So it is with a company who is seeking to serve the community in which it operates. Behind every continually successful company is one who knows what it is about, who also serves the community, and who has a continuing standard against which all efforts, work, and communications are maintained.

As well as the checklist we have listed on our website I recommend visiting www.askjim.biz There you can ask any questions you might have as well as to see the questions and answers which many others have posted. You will find these useful resources to get insight to many of your queries and get you well on your way to successfully managing your business.

We serve clients that are located in Atlanta GA, Gwinnett County, North Fulton County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Alpharetta, Johns Creek, Lawrenceville, Milton, Norcross, Snellville, Roswell, Buford, Cumming, Grayson, Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, and Beyond.

Economy, Not Election, Drives the Stock Market

 As we get closer to the upcoming presidential election, you may see or hear news stories about how the stock market behaves in an election year.  As a result, you might be tempted to start thinking about how to rearrange or even change your investment strategy around this time.  But before you make adjustments based on who might occupy the Oval Office, you may want to take a look at how the stock market has performed historically following election years.

Starting with the 1864 election and leading up to the first presidential election of this century in 2000, information in Yale Hirsch’s Stock Trader’s Almanac indicates the following:

· The stock market shows no pattern in post-election years. The post-election year from December to December has seen the market advance 17 times and decline 16 times.

· The market has not played favorites with political parties. If broken down by which party won the White House, a Republican victory produced a rising market in the calendar year following the election 10 times and a lower market 10 times.  Similarly, a Democrat win produced a higher market in the calendar year following the election seven times and a lower market six times.

If statistics interest you, you may find this curious: Hirsch’s Almanac also shows that in the 15 elections between 1900 and 2000, the market rose 13 times when the incumbent party reclaimed the presidency.  In the two years of decline, the market dropped only 0.5 percent and 2.3 percent, respectively.  When the incumbent lost the presidential election, the market declined six out of nine times.  However, only one of those declines was not considered relatively minor.

As you can tell by the historical data, presidential elections typically do not have a major affect the stock market.  History has shown us that the relation between the outcome of the election and the stock market’s performance is truly a minor connection, at best.

After realizing the lack of a connection, you might be wondering if there is a factor that does correlate with the stock market’s performance.  The simple answer to this question is yes — the economic cycle.  If you look at the 11 post-election calendar years before 2000, you would see that there were six annual market gains and five annual market declines.  Once again, nothing in these figures would indicate a clear connection between the stock market and the elections.  However, if you compare the economy’s performance with the market’s performance, you just might find an interesting relationship that has developed over the years.

Over that same time period, in the five post-election years in which the economy entered a recession, the market declined in all five years.  In the six post-election years in which there was no recession, the market rose five times and declined only once.  Of course, no single economic indicator always correlates with the stock market’s performance.  But in the year after the election, the stock market’s performance is usually influenced more by the economy, rather than by the election the prior November.

By keeping in mind a long-term investment strategy that fits your objectives and lifestyle, and selecting quality investments to help achieve your financial goals, you can rest easier and tune out some of the buzz around this year’s presidential election.

 This article was provided by The Strong Gaddy Lilly Financial Team of A.G. Edwards a division of Wachovia Securities, LLC.  Member SIPC.  Please feel free to contact us at 770-532-6361, or visit us on the web at home.wachoviasecurities.com/v639.             Securities and Insurance Products:

A Tale of Two Investments

Investors often wonder whether growth stocks are preferable to value stocks, or vice versa. Although no one can forecast future performance, over the past 10 years, value stocks provided an 11% average annual return, and growth stocks provided a 5.44% average annual return.So what does this mean for the growth and value stocks in your portfolio? Is it time to ditch your growth stocks in favor of value stocks? Not necessarily. Investing fads come and go, but a diversified strategy involving growth, value, or a combination of the two can be a great addition to your investment portfolio.

Room for Growth

Growth companies are so named because they have the potential for future growth. These companies typically have both a strong history of growth and strong projected growth. Their stocks tend to be expensive relative to what they are earning and thus tend to have a high price-to-earnings ratio.Growth stocks typically do not offer dividends because many companies reinvest their profits. However, growth companies may be on the verge of a major breakthrough that could drive up their share prices dramatically. Growth stocks carry significant risk, which should factor into any purchasing decision.

Looking for Value

Value stocks are considered to be undervalued by the market and thus trading below their true value. Many of these companies are established firms with solid earnings. Investors buy value stocks hoping that the market will eventually realize the true value of these companies, elevating their share prices in the process. The return and principal value of stocks fluctuate with market conditions. Shares, when sold, may be worth more or less than their original cost. Diversification does not guarantee against loss; it is a method used to help manage investment risk.

The Reality

It is critical to maintain a fully diversified portfolio of both growth and value.  We recommend taking it many steps further – owning large, mid and small cap companies both domestically and internationally.  The three fundamentals that you need to ask yourself or your advisor: 1)     How do I know if I’m truly diversified?  Ask to see a Morningstar report of your holdings.

2)      How often are you rebalancing your positions, so you don’t get over-weighted in one asset class?

3)      How is your performance?  What are you measuring your performance against?  That is, if the S&P 500 returned 15% and you only got 10%, a review would definitely be in order.

  To request a complimentary consultation, contact Moore and Associates Wealth Management    www.moorewealthmgmt.com or call 770-587-0281

Recently, several corporations registered with the Corporations Division of the Office of the Secretary of State received a letter from Georgia Corporate Compliance, a private company offering to complete corporation meeting minutes on behalf of registered corporations. Although these forms contained a disclaimer stating that the company was not affiliated or endorsed by any government agency, many customers were understandably confused by the official looking documents.

The forms provided by Georgia Corporate Compliance are not required by the Office of the Secretary of State and will not affect your corporate filing positively or negatively. There is no need for a corporation to use Georgia Corporate Compliance or any other business offering similar services for any reason unless the corporation chooses to do so.  The Office of the Secretary of State does not require the use of any businesses offering services like those apparently offered by Georgia Corporate Compliance.

It is important to remember that any official statement or request from the Office of the Secretary of State will clearly indicate its origin by displaying the State Seal and the name of Secretary of State Karen Handel.  

If corporate customers have any other questions, please call the Georgia Secretary of States Corporations Division Call Center at 404-656-2817.