Selasa, 03 Februari 2015

Windows 10 Installs Automatically On Windows 7 And Windows 8

Microsoft MSFT +2.14% is getting a lot right. Making Windows 10 free, unifying it across desktop and mobile, introducing Xbox streaming, Cortana integration and crazy holographic plans are all bullseyes which have revitalised the company under Satya Nadella. But now it has done one much simpler thing which is set to make Windows 10 the biggest success in Microsoft history.

For now Microsoft is keeping it quiet, but Build 9926 of the Windows 10 Technical Preview released last week can be downloaded and installed via Windows Update on Windows 7 and Windows 8. Yes, this is something so simple and sensible it beggars belief Microsoft hasn’t done it until now.

For now this method comes with a caveat: a small file is needed. Users go to Microsoft’s Technical Preview page and click the ‘Start upgrade now’ button. This downloads the file, you run it and afterwards you will be prompted to restart your PC. On first boot Windows Update will now show ‘Upgrade to Windows 10’ as an option. Say goodbye to burning DVDs, making USB boot drives and fiddling with bios boot order settings.

As expected Microsoft MSFT +2.14% has formally announced the new version of Windows. As no-one expected it will be called ‘Windows 10’ not Windows 9. Why? Because Microsoft claims it represents such a significant leap over Windows 8 that calling it Windows 9 would not do it justice.

I can hear your groans now, but in Microsoft’s defence Windows 10 has some major (and long awaited) improvements.

One OS To Rule Them All

Architecturally the biggest news is that Windows 10 is being designed to run across all device form factors. That means desktops, laptops, tablets, phablets and smartphones.

“Windows 10 will run on the broadest amount of devices. A tailored experience for each device,” said Terry Myerson, Microsoft Executive VP of Operating Systems. “There will be one way to write a universal application, one store, one way for apps to be discovered purchased and updated across all of these devices.”

Microsoft didn’t break down when we might see a Windows 10 smartphone and how that would impact/absorb Windows Phone (or even elaborate on the future for Windows Phone) but it does offer clear insight into Microsoft’s long term road map.

Update: Microsoft has now confirmed ‘Windows 10′ will also be the next major version of Windows Phone. What devices get the upgrade and how Microsoft will handle it remains to be seen.

The Start Menu Is Back

The cat has been out the bag for some time, but Microsoft has finally confirmed the Start Menu will return. The leaks were spot on and it will combine both aspects of the classic Windows 7 start menu with apps from the Metro/Modern UI. Searching within the Start Menu will now perform a web search as well.


Crucially its layout can be customised so apps can be removed or resized and the flexibility and personalisation potential of the Start Menu should win back fans disillusioned about its removal in Windows 8.

Better Touch/Keyboard And Mouse Integration

Microsoft has taken criticism seriously about the jarring nature of moving between touch and the keyboard and mouse elements of Windows 8.

Microsoft is calling the new approach ‘Continuum’ and it is an umbrella term for a better merger between to different input methods. Continuum will be able to automatically switch between modes by detecting on how users interact with their device. It also carries over to design aspects like the new Start Menu, windowed apps within the desktop and so forth.

“We’re trying to be thoughtful about a UI that goes across all devices,” explained Joe Belfiore, Corporate Vice President of the Operating Systems Group at Microsoft.

He admits Continuum remains a work in progress with refinements to things like the Charms Bar (yes it is still there) set to be an ongoing process through the life of the public beta and right up to release
Virtual Desktops

Another leaked feature Microsoft confirmed today was virtual desktops. Microsoft didn’t give the feature an official name at this stage, but it works much like the long used multiple desktops on Linux and Exposé on Mac OS X.

The view can be triggered with a new ‘task view’ button which both allows users to launch a new virtual desktop and jump between them. Interestingly the taskbar can be customised to look different/relevant to each desktop allowing a simple leap from work to home modes, for example.

Microsoft said all open programs in the virtual desktops will continue to run in the background, which makes for some interesting memory management challenges but also greatly increases the potential productivity of Windows as well as de-cluttering the desktop space.

Pricing / Availability

It has been much speculated that Windows 10 may be given away free to upgraders or involve a nominal fee, but Microsoft revealed no information about this in either the presentation or Q&A afterwards.

What we did learn is a technical preview of Windows 10 will be made available to users later this week (Microsoft is stressing it is only for advanced users and developers at this stage) and that an official release would not follow until ‘later in 2015’. This suggests the OS is not as far along as many expected and Microsoft is keen to develop it in conjunction with user feedback.
What Will Still Don’t Know: A Lot

Perhaps what is almost as interesting as what was revealed about Windows 10 is what Microsoft kept to itself.

In addition to no news on pricing, Microsoft also didn’t touch on performance (install size and minimum hardware requirements), Cortana integration (the voice assistant in Windows Phone 8.1), give a solid release time frame or go into any detail on how Windows 10 will handle scaling on high resolution screens – crucial given 4k monitors and super high resolution laptops are quickly gaining momentum.

On the flip side what we did see is a more open Microsoft. A company, perhaps shaken by the decidedly mixed reaction to Windows 8 (however fair or unfair), that is now keen to try and mix the best aspects of Windows 7 and Windows 8 into a more user friendly experience. This means releasing early builds, issuing rapid fire updates and developing in conjunction with ongoing user feedback.
Is choosing the ‘Windows 10’ moniker a step too far though? “It’s a name that resonated best with what we’ll deliver,” explained Myerson.

Many would argue the struggles of Windows Phone and Windows 8 have put Microsoft into a terminal decline, but tonight’s announcement – while thin on details – suggests there is still life in the old dog yet.


Obama Budget Proposal Tackles Small Business, Changes To IRS

The White House formally released The President’s Budget for Fiscal Year 2016 yesterday.

Calling it long is an understatement. My summary is in two parts. Today: small business, funding and IRS (yesterday’s version tackled: individuals, estates and international).

Small Business

The proposal wasn’t all about big business. There’s plenty for small business, too. First, the proposal would expand and permanently extend the expensing limit (good ol’ Section 179) for expensing qualifying depreciable property to $500,000 (indexed for inflation). The President’s proposal would also increase the limitations for deductible new business expenditures and consolidate the provisions for start-up and organizational expenditures. Under the proposal, up to $20,000 of combined new business expenditures could be immediately expensed (reduced by the amount by which the combined new business expenditures exceed $120,000).

10 Rules For Decoding College Financial Aid Award Letters

If you’re a high school student whose family income doesn’t qualify for the 1% club, there’s a very good chance that the most important day of your college application experience won’t be the day you turn in all of your applications or the day you get accepted to your first school. No, if you’re part of the 99%, the crucial day in this drawn out process will when you receive your last “student aid award” letter, allowing you finally to compare the true cost of attending the (hopefully) many schools that were smart enough to accept you.

According to student loan servicer Sallie Mae, nearly two-thirds of families (65%) used grants and scholarships to pay for college in 2013, up from 61% in 2012 and up from only half of families five years ago. What’s more, 49% of parents say they’re not regularly setting aside money to college savings, and 70% of those parents say the reason they’re not saving is because they simply can’t afford to. In other words: more and more families are counting on grants and scholarships (including tuition discounts from the school itself) to pay for college.

13 Habits of Exceptionally Likeable People

Too many people succumb to the mistaken belief that being likeable comes from natural, unteachable traits that belong only to a lucky few—the good looking, the fiercely social, and the incredibly talented. It’s easy to fall prey to this misconception. In reality, being likeable is under your control, and it’s a matter of emotional intelligence (EQ).

In a study conducted at UCLA, subjects rated over 500 adjectives based on their perceived significance to likeability. The top-rated adjectives had nothing to do with being gregarious, intelligent, or attractive (innate characteristics). Instead, the top adjectives were sincerity, transparency, and capacity for understanding (another person).

These adjectives, and others like them, describe people who are skilled in the social side of emotional intelligence. TalentSmart research data from more than a million people shows that people who possess these skills aren’t just highly likeable, they outperform those who don’t by a large margin.

We did some digging to uncover the key behaviors that emotionally intelligent people engage in that make them so likeable. Here are 13 of the best:

They Ask Questions

The biggest mistake people make when it comes to listening is they’re so focused on what they’re going to say next or how what the other person is saying is going to affect them that they fail to hear what’s being said. The words come through loud and clear, but the meaning is lost.

A simple way to avoid this is to ask a lot of questions. People like to know you’re listening, and something as simple as a clarification question shows that not only are you listening, you also care about what they’re saying. You’ll be surprised how much respect and appreciation you gain just by asking questions.


They Put Away Their Phones

Nothing will turn someone off to you like a mid-conversation text message or even a quick glance at your phone. When you commit to a conversation, focus all of your energy on the conversation. You will find that conversations are more enjoyable and effective when you immerse yourself in them.

They Are Genuine

Being genuine and honest is essential to being likeable. No one likes a fake. People gravitate toward those who are genuine because they know they can trust them. It is difficult to like someone when you don’t know who they really are and how they really feel.

Likeable people know who they are. They are confident enough to be comfortable in their own skin. By concentrating on what drives you and makes you happy as an individual, you become a much more interesting person than if you attempt to win people over by making choices that you think will make them like you.

BMW Update Kills Bug In 2.2 Million Cars That Left Doors Wide Open To Hackers

German car manufacturer BMW has issued a security patch over the air to its vehicles, after the emergence of a vulnerability that would have allowed hackers to open doors using just a mobile. BMW, Rolls-Royce and Mini vehicles were all affected as the problem was resident in the Connected Drive service, which allows drivers to control functions like doors and infotainment from their smartphones, according to German driver association ADAC.

ADAC vice president for technology, Thomas Burkhardt, said in a statement that it discovered the vulnerability last year, but didn’t want to warn the public until a fix had been issued by BMW. ADAC said it hadn’t seen any proof the flaw was exploited in the real world, though it had tested attacks successfully “on several vehicles”. More than 2.2 million vehicles were thought to have been affected. Vehicles with a production date later than 9 December 2014 won’t have to worry, however, whilst owners don’t have to do anything; the updates are automatic. They were due to go out to all cars by 31 January.

ADAC didn’t provide much detail on the attack, other than to say it would only take a few minutes for a hacker to execute. According to Reuters, researchers at the association created a fake cell network which it used to trick the BMW vehicles into taking commands from their mobiles. The video below (in German) from ADAC appears to show the attack in action.

BMW seems to have fixed the issue by ensuring interactions between BMW, the driver and the car are done over encrypted traffic, using the SSL standard, which typically guarantees the identity and the sender and receiver of data. Along with Tesla, BMW is one of the more forward-thinking car makers when it comes to digital security. It recently talked up its privacy stance to the FT, saying it refused to hand over car information to those asking for it.


A BMW spokesperson told Forbes over email it had detected the problem on its own. “BMW runs a process of continuous improvement with its products and it is through this testing that an issue was detected on the Connected Drive system subsequently highlighted by the ADAC. However, prior to this notification our systems have since been enhanced, tested and approved,” they said.

“Like all electronic and cyber attacks on a vehicle, whatever form they may take, BMW continuously assesses its level of car security and enhances the level of defence where possible. For obvious security reasons the details of such enhancements are something we will not discuss, suffice to say the issue has been fixed.”

Meanwhile, digital security within cars has become increasingly worrisome to researchers, who’ve pointed to weaknesses in connected vehicle components. In January, Forbes was told a Progressive Insurance dongle used in more than 2 million cars had almost no security mechanisms whatsoever to protect against malicious attacks.

10 Traits Of Great Business Leaders

Whether you’re a freelancer, small-business owner, or full-timer, to climb the ladder, you must know how to lead the pack. Are you destined to be the big boss or be bossed around? To find out, take a look at these 10 characteristics shared by great business leaders:

1. Persistence, Persistence, Persistence

In the 1890s, Henry Ford came up with the Ford Quadricycle, a vehicle made up of a frame mounted on four large bicycle wheels with an ethanol-powered engine. Needless to say, it wasn’t a success. Ford later founded the Ford Motor F +3.81% Company, invented the Model T, and became one of the wealthiest men in the world. Do you try, fail, and pick yourself back up again? Bingo!

2. Thick skin. Rhino-thick.

Walt Disney DIS +1.07%’s editor at the Kansas City Star told him that he had no good ideas and lacked imagination. He could have taken the harsh words to heart and given up the creativity ghost. Instead he went on to become the most successful animator of all time, winning 22 Academy Awards, creating characters like Mickey Mouse, and opening his own theme park. Today, Walt Disney is one of the world’s most ubiquitous household name brands, synonymous with creativity.

3. An Eye for Talent

It takes a village to make amazing things happen. That’s why great leaders surround themselves with other great minds. Steve Jobs was always on the hunt for talent in unique ways, like accepting invitations to lecture at universities so he could scout potential employees. Jobs personally interviewed over 5,000 applicants during his lifetime, managing all the hiring for his team.


4. Can’t Get No Satisfaction

What do Google, Yahoo, and Facebook have in common? All are billion dollar companies that started in dorm rooms. Great business leaders are never satisfied and continually strive to take their business to the next level. As Ingvar Kamprad, the founder of IKEA, said, “The most dangerous poison is the feeling of achievement. The antidote is to every evening think what can be done better tomorrow.”

5. Fearlessness

When Richard Branson was younger, his aunt bet him that he couldn’t learn to swim during their family vacation. After failing to master the skill during the trip, on the drive home, he asked his father to pull over the car. He jumped into a river, swam, and won the bet. Today, Branson, the founder of the Virgin Group, which is made up of over 400 companies, believes in a philosophy of taking risks and stepping out of your comfort zone. “You don’t learn to walk by following rules,” Branson said. “You learn by doing, and by falling over.”

6. Owning Your Mistakes

After Amazon deleted copies of unauthorized versions of Animal Farm and 1984 from users’ Kindles, there was an immediate negative backlash. Not only did Amazon cop to the mistake in an official press statement, CEO Jeff Bezos personally apologized, admitting that the company’s solution to the problem was “stupid, thoughtless, and painfully out of line with our principles.” He also offered, “deep apologies to our customers.”

7. Toughness

If you want to lead in the business world, you’re going to have to stand up for yourself. “When somebody challenges you, fight back. Be brutal, be tough,” advised Donald Trump. Michael Bloomberg agreed, saying at a commencement ceremony that, “In the business world, it’s dog-eat-dog,” and, “you occasionally have to throw some elbows.”

8. Winning Friends and Influencing People

But don’t take the tough act too far. People work better for managers they like. John D. Rockefeller said, “The ability to deal with people is as purchasable as a commodity as sugar or coffee and I will pay more for that ability than for any other thing under the sun.” Mark Cuban put things a little more simply: “People hate dealing with people who are jerks. It’s always easier to be nice than to be a jerk. Don’t be a jerk.”

9. Singular Vision

It all starts with an idea. Howard Schultz envisioned a single brand with coffeehouses across the globe. He turned that dream into a reality and founded Starbucks. “I think if you’re an entrepreneur, you’ve got to dream big, and then dream bigger,” he said. “It’s seeing what other people don’t see and pursuing that vision.”


10. Powerfully Passionate

Above all, a true leader is passionate about whatever venture he or she is undertaking. As Jobs said, “You have to be burning with an idea, or a problem, or a wrong that you want to right. If you’re not passionate enough from the start, you’ll never stick it out.” Oprah Winfrey also had some powerful words on the subject. “Passion is energy,” she said. “Feel the power that comes from doing whatever excites you.”

Let me know what traits you think make a great business leader @MichaKaufman.

Putin Vs. Obama: The World's Most Powerful People 2014

Power has been called many things. Pretty isn’t one of them.

No one would call Vladimir Putin a good guy. In 2014 he strong-armed his way into possession of Crimea and waged an ugly proxy war in neighboring Ukraine, during which an almost certainly Russian-supplied surface-to-air missile downed a civilian jetliner. But as the undisputed, unpredictable and unaccountable head of an energy-rich, nuclear-tipped state, no one would ever call him weak.

So who’s more powerful: the omnipotent head of a feisty former superpower or the handcuffed head of the most dominant country in the world? For the second year running, our votes went with the Russian president as the world’s most powerful person, followed by U.S. President Barack Obama and Chinese leader Xi Jinping.

Our annual ranking of the World’s 72 Most Powerful People (one for every 100 million people on the planet) is based on voting by a panel of FORBES editors, who consider things like financial resources, scope and use of power, and the number of people they impact.

This is not a lineup of the most influential or an anointing of the new establishment. It is an evaluation of hard power. We insist the people on our list wield the kind of power that shapes and bends the world, and moves people, markets, armies and minds. All of this, of course, is open to debate, and we welcome it. Join the conversation and leave your comments below.


No. 1: Vladimir Putin
President, Russia

We took some heat last year when we named the Russian President as the most powerful man in the world, but after a year when Putin annexed Crimea, staged a proxy war in the Ukraine and inked a deal to build a more than $70 billion gas pipeline with China (the planet's largest construction project) our choice simply seems prescient. Russia looks more and more like an energy-rich, nuclear-tipped rogue state with an undisputed, unpredictable and unaccountable head unconstrained by world opinion in pursuit of its goals.

Jumat, 02 Januari 2015

How Fall Out Boy Beat the Odds and Became Top 40 Survivors


Fall Out Boy's caravan of SUVs has been barreling down Interstate 95 in Florida for about two hours when Pete Wentz realizes he doesn't know where the band is headed. "Are we going to Tampa or Orlando?" Wentz asks his road manager. "Because if we're going to Orlando, I want to go to Harry Potter Land." The manager tells Wentz that Fall Out Boy are playing Tampa tonight and Orlando tomorrow, but with an acoustic radio show in the morning and an electric one at night, they have no time for an amusement park. This is news to Patrick Stump. "What acoustic show?" says the singer, from the back seat. "We didn't even practice that shit! We literally don't know how to play 'Centuries' acoustic."

Related Fall Out Boy
Fall Out Boy Pay Tribute to Chicago in 'Centuries' Video

Things are going really fast for Fall Out Boy right now: They are in the middle of a run of playing 15 radio-station festivals in just 20 days, stopping everywhere from Oakland to Duluth, Georgia. "Centuries," the band's new single, has climbed to Number 22 on the charts and racked up more than 30 million plays on Spotify. Fall Out Boy just finished their sixth album, American Beauty/American Psycho, due January 20th, and also have a song, "Immortals," on the soundtrack to the Disney animated movie Big Hero 6 (that one's climbing the charts too). Which means that, along with Maroon 5 and Imagine Dragons, they're one of the very few rock bands in the world capable of competing with the likes of Taylor Swift and Meghan Trainor in the Top 40.

Nobody could've predicted this kind of comeback, least of all the band members themselves. Fall Out Boy ruled the hearts of emo kids in the mid-2000s, scoring a half-dozen Top 40 hits in the process. But when they returned in 2012 after a three-year hiatus, poppy punk rock was dead as a mainstream sound, and dance was ascendant. "We thought that was the end of radio for us," says Stump, 30. "We thought we would go out, play some shows and, you know, whatever. This is a disco era, so to hear our songs on the radio is kinda surprising."

Wentz, the band's 35-year-old bassist and lyricist, is delighted Fall Out Boy can still make hit singles. "We'd survive without radio," he says. "Batman can go out and fight without the fucking cape. But when he shows up, people want to see him wear the fucking cape. My mission statement has always been, 'I want to be the biggest.' Patrick's has always been, 'I want to be the best.' At some point, we realized they were two different versions of the same thing."

Fall Out Boy were in a bleak place after their 2008 LP, Folie à Deux, failed to generate a big hit. The paparazzi hounded Wentz and his new wife, Ashlee Simpson, and the group members were fighting with one another. "I literally spent my twenties as the most selfish person that I know," says Wentz. "I didn't have the capacity for understanding other people's time and empathy for what other people thought about things." After the final gig on their 2009 tour, Fall Out Boy went their separate ways, barely speaking to each other for several years.

The low point seemed to come in 2012, when Stump, who had gone solo with 2011's Soul Punk, posted a shockingly frank letter on his personal blog, in which he revealed he was too broke to continue a solo tour and was getting taunted by fans saying, "We liked you better when you were fat." "People genuinely thought it was a suicide note," he says. "Every part of me wishes I hadn't written that thing." The note inspired Wentz to reach out to Stump. The pair rekindled their friendship and, soon, their band as well.

Fall Out Boy didn't want to do a quickie nostalgia exercise. "We asked ourselves, 'What would we want if the Smiths or someone like that reunited?' " says Wentz. "We'd want a new album, new song, a tour right away and don't just go play state fairs." Instead of touring, the bandmates returned to the studio and found they still had monstrously hooky songs in them. Their comeback single, "My Songs Know What You Did in the Dark (Light Em Up)," hit Number 15 on the Hot 100 in 2013.

The band spent a year and a half on the road behind its next LP, Save Rock and Roll. While on tour, Fall Out Boy began fiddling with a track built around a live sample of the refrain from Suzanne Vega's "Tom's Diner." They fleshed it out into the anthemic "Centuries," and were so psyched with the results they rushed into the studio and squeezed out American Beauty/American Psycho in three weeks.

At heart, Stump and Wentz are still pop-culture geeks. They spend the four-hour trip to Tampa debating topics like the difference between Ridley Scott's Alien and James Cameron's Aliens. ("One is unsettling and leaves you uncomfortable, while the other is a giant popcorn movie," says Stump.) When I mention the 2007 video-game documentary The King of Kong: A Fistful of Quarters, Stump and Wentz spend several minutes trading lines from the film.

Soon, FOB arrive at the 97X Next Big Thing festival, where they're headlining a bill that features Young the Giant, Alt-J, New Politics and other groups that are, on average, a decade younger than they are. Fall Out Boy are shepherded into a meet-and-greet tent, where 50 fans, almost all teen girls, squeal with delight. "I hear from kids on social media that I inspired them to pick up a guitar," says guitarist Joe Trohman. "Hopefully what it does is pave the way for other bands to do the same."

When Fall Out Boy take the stage at 8:45, they're greeted with an eardrum-shattering roar from the young fans. The loudest cheers are reserved for the new songs, and security can barely keep up with the flood of crowd-surfing fans pouring over the barricades.

Fall Out Boy are dripping with sweat and buzzing when they come offstage after a final encore of "Saturday," from their 2003 debut, Take This to Your Grave. "That felt really good," says Wentz as he changes from his stage clothes into a tattered Metallica shirt. "It's crazy how young everyone was. Two circle pits broke out during a song that nobody knows from our first album. It occurred to me onstage that maybe we aren't on an island if there's so many kids like that out there. Maybe they're the movement now."

Right now, Fall Out Boy are booking a summer amphitheater tour. In the meantime, they remain an anomaly in the pop universe. "We aren't the last rock band," says Stump. "But we're the last rock band that doesn't think that pop is a four-letter word."

Stump, who just became a father, has been in Fall Out Boy since he was 17. The singer knows full well what haters think of his band – and doesn't care. "We've been saddled with several disparaging genre things," he says. " 'Oh, they're this fucking pop-punk band,' or 'They're this fucking emo band – these guys suck,' or 'They're this fucking stadium-rock band – these guys suck.' Nobody can decide why we suck – to me, that means we're doing the right thing."

Is It OK to Cheat Airlines if It Saves You Money?


Would you “scam” an airline’s ticketing policy if it saved $25? $70? $400?

A federal lawsuit is bringing public attention to “hidden city” ticketing, the technique of buying an airline ticket between two cities with a connection but ditching the rest of the trip. Say, for example, you want to fly from Boston to San Francisco but notice that a ticket from Boston to Seattle—with a connection in San Francisco—is cheaper. Once your flight lands in San Francisco, you prance out of the airport at your intended destination, pocketing the savings.

Airlines hate this maneuver—which has been around for decades—and argue that it violates the terms of the sale. Others contend that it’s no big deal. “I think it’s fair game,” says John DiScala, a travel expert who blogs as Johnny Jet. “I think it’s smart for the consumer.” Jay Sorensen, a consultant and former executive with Midwest Airlines, argues that airlines also violate the terms of sale with their customers “and then rely on the customer to write a letter to complain to get that violation addressed.” (In a phone call on Tuesday, Sorensen noted that his wife, who is also a former airline executive, vehemently disagreed.) “I think there are greater sins in life,” he says.

The world’s second-largest airline, United, along with online travel agency Orbitz Worldwide, aren't convinced. They've filed suit seeking an injunction to stop a New York programmer’s website, Skiplagged.com, from sending United ticket buyers to Orbitz.com to purchase such “hidden city” tickets. The ticketing technique “interferes with United’s ability to sell unused seats on the final leg(s) of connecting flights, resulting in the loss of revenue that United would have earned by selling the unused seats,” the company said in its lawsuit last month in U.S. District Court in Chicago. The companies also want at least $75,000 in damages and attorney fees. “This practice violates our fare rules, and we are taking action to stop it to help protect the vast majority of customers who buy legitimate tickets,” United spokeswoman Christen David said on Tuesday. The airline also says such passengers can cause delays as gate agents try to determine where a person expected on a flight may be. Passenger count also affects a flight’s total weight calculation, which can delay the plane’s departure.

The problem for the airline industry, of course, is that the public holds them in roughly the same esteem as cable-TV companies and tax collectors. We aren't inclined to be terribly sympathetic about protecting carriers’ pricing schemes or saying "no thanks" to a bargain. “Send them to hell, please,” wrote someone who donated $666 to Skiplagged founder Aktarer Zaman, who began raising money online in late November to fund his defense against the lawsuit. On Tuesday he boosted his target to $25,000 after quickly passing the prior $20,000 target given media attention on the lawsuit. “That's because I really don't know how much this lawsuit is going to ultimately cost, other than probably a lot,” Zaman wrote in a note thanking donors. “However, you have my word that how every cent is spent will be posted here. If there are any remaining funds, those will be completely donated to charity.” Zaman did not reply on Tuesday to an e-mail sent via his personal website.

Hidden city fares are found on almost every airline that operates with a hub-and-spoke system. These cheaper fares arise from the fact that nonstop flights typically command a premium, given that most people—especially business travelers—prefer to avoid connections when possible. That’s why American, for example, enjoys strong pricing from its Dallas-Fort Worth (DFW) hub on nonstop routes. Delta and United, meanwhile, have plenty of service on the same routes from DFW Airport, but they typically route passengers through one of their own hubs with a connecting flight. Writ large across the industry, that dynamic leads to “hidden city” fares that can amount to savings of hundreds of dollars.

“If [airlines] didn’t try to price flights to certain hubs so high, perhaps you wouldn’t have as many people trying to buy hidden city fares,” says Henry Harteveldt, a travel analyst with Atmosphere Research Group. Yet given strong customer demand, airlines would be foolish to “leave money on the table” if they can command top prices on some flights, he notes. “To a certain degree then, they encourage this type of behavior,” says Harteveldt, who doesn’t consider the practice ethical. “There’s no easy solution to this.”

One airline measure has been to void frequent-flyer miles if an airline determines that a person skipped a connecting flight. In some cases with repeat offenders, Harteveldt and Sorensen said, an airline may shut down the account or try to collect the fare difference on the flight a passenger actually used. American warns travel agents not to sell such tickets, likening the practice to “switching price tags to obtain a lower price on goods sold at department stores.”

DiScala, who travels more than 150,000 miles per year and was spending the holidays with his wife in Hawaii, says hidden city tickets have been an occasional financial temptation—but one he's avoided. “I didn’t want to lose my miles,” he says.

Predictions For 2015: There Will Be Blood

The photo above was published in April, 2013, when Google Ventures, Andreessen Horowitz and Kleiner Perkins announced the Glass Collective, which was going to invest in companies to develop apps for Google Glass, which they said was a "potentially transformative technology." Key word I suppose was potentially. Because now Google Glass is more or less dead, and good riddance to it, though it was entertaining when that woman claimed she was being persecuted for wearing Glass in a bar and then she went all Rosa Parks and the Glass dorks tried to make it a civil rights issue — that was fun. But overall: no. Glass sucked. Now it's done. This is a good thing.

I'm running the photo for three reasons. First, that fucking head! And yes, you know exactly which one I mean. Second, because those three dudes look pretty damn smug and pleased with themselves, don't they? Why, with their magic Dick Tracy glasses they can see all the way into the future, and the future is all about Google Glass! I think these guys should be forced to look at this photo of themselves every day for the rest of their lives, preferably on a pair of Google Glasses which they are also forced to wear.

But the main reason I'm running the photo is to make an actual serious point, which is that nobody in this industry ever has any idea what is going to work. Nobody. Not even these big-brained masters of the universe who are entrusted with billions of dollars. These are smart guys. The one on the left founded Netscape. The one on the right was an early investor in Google. The one in the middle was in a boy band, I think. Anyway, they're experts. They spend their whole lives trying to spot trends and pick winners, and they are paid ungodly amounts of money because they are considered the best in the world.

And yet, back in 2013, less than two years ago, these three experts really believed Glass was going to be huge. They were very passionate about it. They got into huge arguments over it.

Clearly those guys did not have a clue. And if they can't predict the future, then I sure as hell can't either. Nevertheless, making predictions for the year ahead is a thing one is supposed to do when one writes a tech blog, so here are mine for 2015.

Dick Costolo gets booted from Twitter. This one is so obvious that it's almost not a prediction. The Orcs on Wall Street are beating the drums for his removal. (Also see here.) This started months ago, when BusinessWeek quoted one of Twitter's investors saying not-nice things about Costolo. The critics have a point. Costolo is about as effective as a CEO as he was at standup comedy, which is to say, not very. The problem is I'm not sure anyone can do better. Twitter is a money pit, a company that costs more to run than it can generate in revenues. Last quarter Twitter lost about $180 million on sales of about $360 million, meaning they are spending a dollar fifty to make a dollar. Is there some magician of a CEO who has some huge idea that will transform Twitter into a money-printing machine? Doubtful. But hey, bring in Ross Levinsohn and let him take a crack at it, and two years from now you Wall Street assholes can drive him out too and find someone else. It's what you do.

Jack Dorsey gets booted from Square. The real question is how Simple Jack has managed to hang on for all these years, not just at Square but in the tech industry in general. Have you read Nick Bilton's book about Twitter? Do you know there was a time when Jack Dorsey was consciously trying to dress and act like Steve Jobs? This would be embarrassing for a high school kid, but for a grown man? Then there was his fascination with Japanese culture, waxing on about wabi-sabi over a tea ceremony. Then he was going to run for mayor of New York. Then he was in Missouri, marching. Meanwhile Square has been around for five years and is losing enormous amounts of money. The deal with Starbucks was a disaster; Dorsey got mugged. Square changes business plans and strategies the way Taylor Swift changes boyfriends. Over the summer, Dorsey bought Caviar, and now Square is going to become a food delivery company. What the fuck?

Marissa Mayer leaves Yahoo. It's not her fault. Yahoo is Yahoo. It's never going to be Google or Facebook. But there is an unwritten rule that Yahoo must have a new CEO every six to 12 months, and Mayer has already been there for more than two years. According to hedge fund manager Eric Jackson, Yahoo may actually have negative value if you strip out the value of its Alibaba stake. Now the savages on Wall Street are calling for Marissa's head. You may have noticed that this is something that the savages on Wall Street like to do. Of course there is no messiah who is going to save Yahoo. But changing leaders maybe gives the stock a pop. Or maybe the guys on Wall Street just like to stir up shit because they're bored and they have money. Marissa can go spend time with her kids. Or run for political office.

Box gets acquired. Look, I love Aaron Levie, Box's precocious 14-year-old CEO. He's great on Twitter and he is a genuinely nice guy. But Box isn't working out. Like Twitter, it's a money pit. According to its recent SEC filing, for 2014 Box will take in $125 million in revenues and lose about $170 million. To be sure, that's better than in 2013, when Box lost two dollars for every dollar it generated in revenue. But come on. Box will be 10 years old this year. If you can't make money after 1o years, what does that tell you? And what is the plan? Is the idea that Box will keep "investing in the business" and then start making money in Year 15? Or Year 20? Or maybe profitability lies forever out there, beyond the horizon, and everyone says that's okay, like with Amazon? Apparently Box still intends to do an IPO. Maybe that will happen. Even so, Box will end up being acquired. It makes no sense as a standalone business.

Carly Fiorina will run for president and lose. It's not her fault. It's a compulsion. Carly doesn't really want to hold office; she just needs to run. Someone says Carly's real goal to get picked up as a vice presidential nominee. That might be overthinking it. Carly runs because Carly runs. Carly can't get enough of Carly, and she thinks that we can't get enough of Carly either. Don't tell her otherwise! Also, she's rich, so she can keep on doing this forever. Godspeed, Carly. I for one will vote for you, just to give you false hope.

Larry Page will step aside. Page will take a non-executive role and be replaced by that other guy who already runs most of Google but whose name you can't remember which is fine because that's the way he likes it.

Uber will have an earth-shattering IPO. The financials will be great, the growth will be staggering and everyone knows Uber and likes the service so mom-and-pop investors will be clamoring for shares. Home run. Nobody will care about all the bad behavior anymore because money talks and bullshit walks, as Goethe once wrote. Uber haters (and there are many) will go nuts, which will add to the fun. Airbnb and Dropbox will go public too, as Fred Wilson predicts, but Uber will be the sensational deal of the year.

Oculus Rift will suck and so will the Apple Watch. These I stole from Fred Wilson, but he's right. Nobody wants to sit around for hours with those big fucking goggles strapped to their head. Apple might sell a lot of watches to the faithful, and no doubt the bozos will line up outside stores again just because they love to stand outside in lines. Look at me! I'm so techie! Tim Cook will claim it's a huge victory. Apple will constrain supply to make it look like there is huge demand and they're selling them as fast as they can make them and they're way ahead of plan. But this is not iPhone Redux. The watch is a limited thing, and won't move the needle.

Andy Rubin announces a new product. I have no idea what it is, but he's up to something. Rubin left the Android team at Google to run the robotics program. Then he left last year to do some kind of skunk works. This is the guy who created Danger and sold it to Microsoft, then created Android and sold it to Google. Whatever he does next will be worth paying attention to.

Hackers do something serious. I mean something that makes Sony look like a prank. Something that really fucks people up. Something that will appear to be state-sponsored and we're left to guess about who is behind it. Maybe it's Putin getting back at us for wrecking the ruble. Or maybe it's carried out by Iran, or China. I hope this doesn't happen, but I fear it will. The future of warfare is computers fighting computers.

There will be blood. I can't predict exactly when the crash correction will happen. I thought it would have happened already, frankly. So maybe it happens this year, or maybe it's next year. But you know it's going to happen. For one thing, there were more IPOs in 2014 than in any year since 2000. Some will remember what happened back in 2000 right after all those companies had all those IPO. Surely it cannot be a good sign when a bunch of money-losing tech companies go racing into the public markets. For the past few years the VCs who claimed there was no tech bubble supported that assertion by pointing out that the crazy valuations were confined to privately held companies. Thus the public wasn't exposed to the risk. But now those companies are going public. Doesn't that mean the public is now exposed?

And now the stock market is hitting all-time highs, and Facebook is trading at 72 times earnings, and Twitter has a $20 billion market cap even though it is losing huge amounts of money, and Salesforce.com has a $37 billion market cap even though it doesn't have any earnings either, and back in September Marc Andreessen said something about how the market was going to turn and that some of these tech companies were burning money too fast and they were going to "vaporize" and ohmygod a fucking food delivery startup just raised $220 million at a valuation of $2 billion and Snapchat just raised money at a $20 billion valuation even though they have no revenues and the company is burning cash like crazy and now I'm starting to get that feeling where I know it's not an actual heart attack but I still think that maybe it is a heart attack and I should probably go to the emergency room just in case.

Wait! Don't freak out! Take deep breaths. Everything is going according to plan. Unless you're working for one of those money-losing startups, you'll be able to sit back and enjoy the show — the cries and lamentations, the gnashing of teeth, the paper fortunes wiped out overnight, the smug bratty tech pricks going back to work as baristas. It is going to be glorious.

District 9 director reveals concept images of the Alien movie he was secretly working on

The Alien series may have taken a sharp turn downhill after its second film, but District 9 director Neill Blomkamp is — at least somewhat — interested in stepping in to save it. Blomkamp posted over a half-dozen pieces of concept art to Instagram yesterday depicting an Alien movie that he was working on, without any studio's knowledge or approval. Blomkamp's film seems to take place after Aliens, but in a world where the series' third film was never made, allowing Ripley and Hicks to work together again. The film also would have gone inside the mysterious and manipulative Weyland Corporation and put Ripley in what looks like a semi-organic Xenomorph flight suit.

It doesn't sound like Blomkamp's vision will be leaving the page anytime soon, however. On Instagram, Blomkamp says that though he loves the concept, he doesn't think that he's going to be working on it any more. "Woulda rocked," Blomkamp writes. "Was a mental stroll into the world Ridley Scott created." An unverified Twitter account linked to Blomkamp elaborates, writing, "I just feel like I might do something else instead." The good news for anyone hoping to see this movie made is that Blomkamp isn't stopping because the studio made him — in fact, he doesn't even think the studio knew he was working on it. And as he tells one commenter on Instagram: "Fox never said no."

King Abdullah of Saudi Arabia Is Hospitalized With Pneumonia

King Abdullah of Saudi Arabia has pneumonia and needs temporary help from a breathing tube, the royal court said Friday.

The king, who is 90, has a history of medical problems, and his health is scrutinized for any hint of a leadership change in Saudi Arabia, an absolute monarchy and regional American ally that is one of the world’s most important oil producers.

In a statement quoted by news agencies, the royal court said the king was in stable condition at a military hospital. He was transferred there on Thursday after having been admitted to King Abdulaziz Medical City Hospital in Riyadh, the capital, on Wednesday for unspecified tests.

The statement said an examination “revealed pneumonia, which required the provisional insertion of a tube on Friday evening.”

It added that “that step was crowned with stability and success,” but it left unclear how long the king would remain hospitalized.

The new uncertainty about the king’s health came against a backdrop of deep Saudi influence on a number of major global issues.

The biggest is plunging oil prices, caused in part by Saudi insistence on maintaining current high production levels in an effort to drive out higher-cost producers elsewhere and gain more control over the global market.

Saudi officials, presumably acting under the king’s orders, have shown no inclination to curb production, despite complaints by others, including the country’s regional rival, Iran.

The king’s health difficulties also come as Saudi Arabia has exerted itself more forcefully in the conflicts in Syria and Iraq. Most notably, Saudi Arabia is actively participating in the American-led bombing campaign against extremists there.

Crown Prince Salman, 79, the king’s half brother and presumed successor, has increasingly acted as Abdullah’s representative, most recently standing in for him at a summit meeting of Persian Gulf countries in Qatar last month. Crown Prince Salman is also Saudi Arabia’s deputy prime minister and defense minister.

Another half brother of the king, Prince Muqrin, 69, is second in line to the throne.

Abdullah is the country’s sixth king, having assumed the throne in 2005.

A Hacker's Hit List of American Infrastructure

On Friday, December 19, the FBI officially named North Korea as the party responsible for a cyber attack and email theft against Sony Pictures. The Sony hack saw many studio executives’s sensitive and embarrassing emails leaked online. The hackers threatened to attack theaters on the opening day of the offending film, The Interview, and Sony pulled the plug on the movie, effectively censoring a major Hollywood studio. (Sony partially reversed course, allowing the movie to show in 331 independent theaters on Christmas Day, and to be streamed online.)

Technology journalists were quick to point out that, even though the cyber attack could be attributable to a nation state actor, it wasn’t particularly sophisticated. Ars Technica’s Sean Gallagher likened it to a “software pipe bomb.”

But according to cyber-security professionals, the Sony hack may be a prelude to a cyber attack on United States infrastructure that could occur in 2015, as a result of a very different, self-inflicted document dump from the Department of Homeland Security in July.

Here’s the background: On July 3, DHS, which plays “key role” in responding to cyber-attacks on the nation, replied to a Freedom of Information Act (FOIA) request on a malware attack on Google called “Operation Aurora.”  

Unfortunately, as Threatpost writer Dennis Fisher reports, DHS officials made a grave error in their response. DHS released more than 800 pages of documents related not to Operation Aurora but rather the Aurora Project, a 2007 research effort led by Idaho National Laboratory demonstrating how easy it was to hack elements in power and water systems.

Oops.

The Aurora Project exposed a vulnerability common to many electrical generators, water pumps and other pieces of infrastructure, wherein an attacker remotely opens and closes key circuit breakers, throwing the machine’s rotating parts out of synchronization causing parts of the system to break down.

In 2007, in an effort to cast light on the vulnerability that was common to many electrical components, researchers from Idaho National Lab staged an Aurora attack live on CNN. The video is below.

How widespread is the Aurora vulnerability? In this 2013 article for Power Magazine:

    The Aurora vulnerability affects much more than rotating equipment inside power plants. It affects nearly every electricity system worldwide and potentially any rotating equipment—whether it generates power or is essential to an industrial or commercial facility.

The article was written by Michael Swearingen, then manager for regulatory policy for Tri-County Electric Cooperative (now retired), Steven Brunasso, a technology operations manager for a municipal electric utility, Booz Allen Hamilton critical infrastructure specialist Dennis Huber, and Joe Weiss, a managing partner for Applied Control Solutions.

Weiss today is a Defense Department subcontractor working with the Navy’s Mission Assurance Division. His specific focus is fixing Aurora vulnerabilities. He calls DHS’s error “breathtaking.”

The vast majority of the 800 or so pages are of no consequence, says Weiss, but a small number contain information that could be extremely useful to someone looking to perpetrate an attack. “Three of their slides constitute a hit list of critical infrastructure. They tell you by name which [Pacific Gas and Electric] substations you could use to destroy parts of grid. They give the name of all the large pumping stations in California.”

The publicly available documents that DHS released do indeed contain the names and physical locations of specific Pacific Gas and Electric Substations that may be vulnerable to attack.

Defense One shared the documents with Jeffrey Carr, CEO of the cyber-security firm Taia Global and the author of Inside Cyber Warfare: Mapping the Cyber Underworld. “I’d agree…This release certainly didn’t help make our critical infrastructure any safer and for certain types of attackers, this information could save them some time in their pre-attack planning,” he said.

Perpetrating an Aurora attack is not easy, but it becomes much easier the more knowledge a would-be attacker has on the specific equipment they may want to target.

* * *

In a 2011 paper for the Protective Relay Engineers’ 64th Annual Conference, Mark Zeller, a service provider with Schweitzer Engineering Laborites lays out—broadly—the information an attacker would have to have to execute a successful Aurora attack. “The perpetrator must have knowledge of the local power system, know and understand the power system interconnections, initiate the attack under vulnerable system load and impedance conditions and select a breaker capable of opening and closing quickly enough to operate within the vulnerability window.”

“Assuming the attack is initiated via remote electronic access, the perpetrator needs to understand and violate the electronic media, find a communications link that is not encrypted or is unknown to the operator, ensure no access alarm is sent to the operators, know all passwords, or enter a system that has no authentication.”

That sounds like a lot of hurdles to jump over. But utilities commonly rely on publicly available equipment and common communication protocols (DNP, Modbus, IEC 60870-5-103,IEC 61850, Telnet, QUIC4/QUIN, and Cooper 2179) to handle links between different parts their systems. It makes equipment easier to run, maintain, repair and replace. But in that convenience lies vulnerability.

In their Power Magazine article, the authors point out that “compromising any of these protocols would allow the malicious party to control these systems outside utility operations.”

Defense One reached out to DHS to ask them if they saw any risk in the accidental document dump. A DHS official wrote back with this response: “As part of a recent Freedom of Information Act (FOIA) request related to Operation Aurora, the Department of Homeland Security (DHS) National Programs and Protection Directorate provided several previously released documents to the requestor. It appears that those documents may not have been specifically what the requestor was seeking; however, the documents were thoroughly reviewed for sensitive or classified information prior to their release to ensure that critical infrastructure security would not be compromised.”

Weiss calls the response “nonsense.”

The risk posed by DHS accidental document release may be large, as Weiss argues, or nonexistent, as DHS would have you believe. But even if it’s the latter, Aurora vulnerabilities remain a key concern.

Perry Pederson, who was the director of Control Systems Security Program at DHS in 2007 when the Aurora vulnerability was first exposed, said as much in a blog post in July after the vulnerability was discovered. He doesn’t lay blame at the feet of DHS. But his words echo those of Weiss in their urgency.

“Fast forward to 2014. What have we learned about the protection of critical cyber-physical assets? Based on various open source media reports in just the first half of 2014, we don’t seem to be learning how to defend at the same rate as others are learning to breach.”

* * *

In many ways the Aurora vulnerability is a much harder problem to defend against than the Sony hack, simply because there is no obvious incentive for any utility operator to take any of the relatively simple costs necessary to defend against it. And they are simple. Weiss says that a commonly available device installed on vulnerable equipment could effectively solve the problem, making it impossible to make the moving parts spin out of synchronization. There are two devices on the market iGR-933 rotating equipment isolation device (REID) and an SEL 751A, that purport to shield equipment from “out-of-phase” states.

To his knowledge, Weiss says, Pacific Gas and Electric has not installed any of them anywhere, even though the Defense Department will actually give them away to utility companies that want them, simply because DOD has an interest in making sure that bases don’t have to rely on backup power and water in the event of a blackout. “DOD bought several of the iGR-933, they bought them to give them away to utilities with critical substations,” Weiss said. “Even though DOD was trying to give them away, they couldn’t give them to any of the utilities because any facility they put them in would become a ‘critical facility’ and the facility would be open to NERC-CIP audits.”

Aurora is not a zero-day vulnerability, an attack that exploits an entirely new vector giving the victim “zero days” to figure out a patch. The problem is that there is no way to know that they are being implemented until someone, North Korea or someone else, chooses to exploit them.

Can North Korea pull of an Aurora vulnerability? Weiss says yes. “North Korea and Iran and are capable of doing things like this.”
More From Defense One

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Would such an attack constitute an act of cyber war? The answer is maybe. Speaking to reporters at the Pentagon on Friday, Pentagon Press Secretary Rear Adm. John Kirby said “I’m also not able to lay out in any specificity for you what would be or wouldn’t be an act of war in the cyber domain. It’s not like there’s a demarcation line that exists in some sort of fixed space on what is or isn’t. The cyber domain remains challenging, it remains very fluid. Part of the reason why it’s such a challenging domain for us is because there aren’t internationally accepted norms and protocols. And that’s something that we here in the Defense Department have been arguing for.”

Peter Singer, in conversation with Jason Koebler at Motherboard, says that the bar for actual military engagement against North Korea is a lot higher than hacking a major Hollywood movie studio.

“We didn’t go to war with North Korea when they murdered American soldiers in the 1970s with axes. We didn’t go to war with North Korea when they fired missiles over our allies. We didn’t go to war with North Korea when one of their ships torpedoed an alliance partner and killed some of their sailors. You’re going to tell me we’re now going to go to war because a Sony exec described Angelina Jolie as a diva? It’s not happening.”

Obama said Friday that there would be some sort of response to the hack, but declined to say what. “We have been working up a range of options. They will be presented to me. I will make a decision on those based on what I believe is proportional and appropriate to the nature of this crime,” he said.

Would infrastructure vandalism causing blackouts and water shutdowns constitute an act of war? The question may be moot. Before the United States can consider what sort of response is appropriate to cyber attacks, it must first be able to attribute them.

The FBI was able to finger North Korea for the hack after looking at the malware in the same way a forensics team looks for signs of a perpetrator at the scene of the crime. “Technical analysis of the data deletion malware used in this attack revealed links to other malware that the FBI knows North Korean actors previously developed. For example, there were similarities in specific lines of code, encryption algorithms, data deletion methods, and compromised networks,” according to the FBI statement. (Attribution has emerged as a point of contention in technology circles, with many experts suggesting that an inside hack job was more likely.)

An Aurora vulnerability attack, conversely, leaves no fingerprints except perhaps a single IP address. Unlike the Sony hack, it doesn’t require specially written malware to be uploaded into a system—Malware that could indicate the identity of the attacker, or at least his or her affiliation. Exploiting an Aurora attack is simply a matter of gaining access, remotely, possibly because equipment is still running on factory-installed passwords, and then turning off and on a switch.

“You’re using the substations against whatever’s connected to them. Aurora uses the substations as the attack vector. This is the electric grid being the attack vector,” said Weiss, who calls it “a very, very insidious” attack.

The degree to which we are safe from that eventuality depends entirely on how well utility companies have put in place safeguards. We may know the answer to that question in 2015.

Selasa, 30 Desember 2014

Top Seven Mistakes Business Owners Make Filing Insurance Claims

Now that Hurricane Irene is done pummeling the Eastern Seaboard, affected business owners will move on to the next phase: trying to figure out if insurance will cover their losses.

In the chaos that follows a natural disaster, mistakes can be made that may delay insurance reimbursement, or mean your insurance won't pay at all. Long delays can be deadly for a business trying to bounce back and get the doors open again.

Here are the top seven mistakes business owners make in filing insurance claims:

1. Not contacting your insurer immediately. Many people make the mistake of cleaning up damage before an insurance representative visits the business. This creates confusion about how bad things really were, and you may find that labor you did or paid for is disallowed if it preceded an insurer's inspection. In a disaster situation, many insurers have a quick-response team that will come out to survey the situation.

2. Not documenting the damage. Often, repairs must begin immediately to prevent additional damage, or equipment must be moved to a new location. If so, be sure to photograph the original scene to document how it was before you started your cleanup effort. Also take photos of any repairs you make.

3. Not keeping damaged goods. If your business cleanup includes removal of items such as water-damaged merchandise, flooring or insulation, keep it all, even if it has to pile up in the parking lot. The damaged materials are all evidence of the impact of the disaster on your business.

4. Not appealing your insurer's lowball estimate. Your insurer will give you a damage estimate after surveying your business. If you think it's too low, you can appeal. Hire your own adjuster to do a second estimate. Usually, an impartial, third-party mediator will then be employed to make a final decision on the payment amount.

5. Not reading your policy. It's a common myth that if you have insurance for a building, you must have coverage for flooding, earthquakes and all other possible calamities. But often, it's not true. In earthquake-prone states, for instance, this coverage often must be obtained on a separate policy or rider, and flood insurance is only offered through the National Flood Insurance Program. Don't waste time submitting claims to your private insurance policy if it won't cover you for the disaster you've just suffered.

6. Counting on FEMA for quick help. If your business is in a federally declared disaster area, federal aid will be available. But you can ask survivors of Hurricane Katrina how maddeningly slow this aid moves. It might provide homeowners with temporary shelter and eventual money to rebuild. But for a business owner, your private insurance will be your best chance at receiving money fast enough to reopen before all your customers drift away.

7. Not preparing ahead of time. Obviously, the aftermath of a disaster goes more smoothly if you are ready to swing into action when trouble hits. Start with reviewing your policy to make sure you have adequate coverage. Then be prepared. Do you know where your insurance policy is kept? Is it handy, where you could grab it if you had to leave suddenly? Is an extra copy in a safe deposit box where it would be safe from flooding or fire? Do you have your insurance agent's number programmed into your phone? It'll prevent delays if you have your information handy.

7 Types of Insurance You Need to Protect Your Business

From the day an entrepreneur starts a business, he exposes himself to certain risks. Even before the first employee is hired, a business is at risk, making it important to have the right insurance in place. One lawsuit or catastrophic event could be enough to wipe out a small business before it even has a chance to get off the ground.

Fortunately, businesses have access to a wide range of insurance types to protect them against these dangers. Here are some insurance types that a business must have in place as soon as possible.
1. Professional liability insurance.

Professional liability insurance, also known as errors and omissions (E&O) insurance, covers a business against negligence claims due to harm that results from mistakes or failure to perform. There is no one-size-fits-all policy for professional liability insurance. Each industry has its own set of concerns that will be addressed in a customized policy written for a business.

Related: Do I Need Liability Insurance?
2. Property insurance.

Whether a business owns or leases its space, property insurance is a must. This insurance covers equipment, signage, inventory and furniture in the event of a fire, storm or theft. However, mass-destruction events like floods and earthquakes are generally not covered under standard property insurance policies. If your area is prone to these issues, check with your insurer to price a separate policy.
3. Workers’ compensation insurance.

Once the first employee has been hired, workers’ compensation insurance should be added to a business’s insurance policy. This will cover medical treatment, disability and death benefits in the event an employee is injured or dies as a result of his work with that business. Even if employees are performing seemingly low-risk work, slip-and-fall injuries or medical conditions such as carpal tunnel syndrome could result in a pricey claim.

Related: Does Your Home Business Need Insurance?
4. Home-based businesses.

Many professionals begin their small businesses in their own homes. Unfortunately, homeowner’s policies don’t cover home-based businesses in the way commercial property insurance does. If you’re operating your business out of your home, ask your insurer for additional insurance to cover your equipment and inventory in the event of a problem.
5. Product liability insurance.

If your business manufactures products for sale on the general market, product liability insurance is a must. Even a business that takes every measure possible to make sure its products are safe can find itself named in a lawsuit due to damages caused by one of its products. Product liability insurance works to protect a business in such a case, with coverage available to be tailored specifically to a specific type of product.
6. Vehicle insurance.

If company vehicles will be used, those vehicles should be fully insured to protect businesses against liability if an accident should occur. At the very least, businesses should insure against third-party injury, but comprehensive insurance will cover that vehicle in an accident, as well. If employees are using their own cars for business, their own personal insurance will cover them in the event of an accident. One major exception to this is if they are delivering goods or services for a fee. This includes delivery personnel.
7. Business interruption insurance.

If a disaster or catastrophic event does occur, a business’s operations will likely be interrupted. During this time, your business will suffer from lost income due to your staff’s inability to work in the office, manufacture products or make sales calls. This type of insurance is especially applicable to companies that require a physical location to do business, such as retail stores. Business interruption insurance compensates a business for its lost income during these events.

By having the right insurance in place, a business can avoid a major financial loss due to a lawsuit or catastrophic event. Check with your insurer to find out what forms of insurance are advised for your type of business and put those plans in place as soon as possible.

What Successful Businesses Have in Common

How does a small company become successful? Despite the bad news we so often hear about the number of small businesses closing or moving, the news really isn't all that bad: Thousands of small businesses startup every year, and a good percentage of those companies have learned what it really takes to survive the early startup years and become successful enterprises.

After working with dozens of small companies, I discovered that the successful ones share some common traits. Here, then, are the 14 qualities I've witnessed in many of the thriving small businesses I've worked with:

Company culture. Culture is defined as the "integrated pattern of human knowledge, belief and behavior that depends upon man's capacity for learning and transmitting knowledge to succeeding generations." For successful companies, culture is about attracting and hiring the people who would be most successful in that specific organization. And it's about driving the behavior that makes the company successful.

Customer service. Simply defined, customer service means taking care of your customers. Many companies integrate customer service into their business culture through training and the design (and frequent redesign) of relevant business processes. In most cases, the business plan dictates how they will provide quality customer service.

Attitude. As the owner of the company, you must have a positive attitude and accept 100 percent of the responsibility for the results of your business. When you accept responsibility, you can act to make the necessary changes to accomplish the desired results. Then, when success is achieved, you're generous in giving credit to others within the organization. Without exception, the most successful business owners understand that it's all about people: hiring and retaining the right people, eliminating ineffective people and providing the necessary resources for employees to master their tasks.

Business strategy. A complex strategy or business plan isn't necessary to achieve success. A simple one-page document will do, but it should be well thought out and well executed. A poorly crafted business plan that's well executed is far superior to the well-crafted business plan that sits on the shelf collecting dust. A good business plan defines and drives the activities and behaviors of the entire organization. Without it, the business becomes a ship without a rudder; it simply can't be steered and ends up going around in circles. A sound strategy should include a financial plan, marketing differentiators, and product strategy as well as a plan for employee retention.

Discipline. Discipline is all about executing the strategies and then staying the course. It's about staying focused on your core markets and measuring success as defined by your business strategy. It's not about overreacting to market changes and adjusting your core strategy to keep up.

Risk. Successful business owners aren't afraid to take calculated risks with clear outcomes in mind. Most owners who take risks do so because they recognize the need to change as the economic climates changes, and they understand it's disastrous not to embrace change. Successful business leaders understand that being in business is about managing and responding to change. Companies that succeed embrace change and respond to challenges presented by the market, the competition or changes in general business conditions.

Financial roadmap. An important attribute is the creation of a financial roadmap and budget--and then having the discipline to follow it. A financial plan reminds owners where and how to spend money, and it provides ways to measure progress or shortfalls. A sound financial plan is the cornerstone of a great business plan.

Business processes. Another frequently credited attribute of success is the streamlining of business processes. We call this "creating predictability." Unfortunately, this is probably the least understood task a small-business owner can take accomplish. Business processes are how things are done within a business. Every company has some processes; some are clearly defined, others are implicit. The intention here is to increase productivity and reduce costs while generating the same (or better) outcomes. Successful businesses understand the need to continuously improve their business processes: to become more efficient and productive, and to respond to market changes faster while providing better service to customers.

Information technology. While technology is important, it doesn't have to be complex or costly to be effective. Effective technology is probably the most important enabler for change that a company can introduce.

Marketing. Effective marketing efforts perform different functions around unique selling environments. For example, business-to-consumer enterprises have completely different marketing needs than business-to-business companies. Having a good understanding of the pains your clients are experiencing and how your product and services stop that pain can help you understand just how to market to your customers--and that's critical to business success.

Sales. Every company's approach to sales is different. Some depend on building referral partnerships and strategic alliances, and this is the extent of their sales process. Others aggressively attack the market with direct-mail campaigns, cold calling and other forms of direct customer contact. The specific selling approach a company uses is usually defined by its marketing plan. Successful owners know that the concept of selling is a process that can be measured and improved, like all business processes. They talk about the importance of having a consistent, measurable and repeatable sales process, and they engage professional sales trainers (with flexibility to customize training to their selling environment) to help create consistency within their selling process.

Training. Because we live in a world of continuous change, it's more important than ever to implement a culture of continuous learning. For many successful owners, continual investment in training is a major contributor to success. For training to be successful, however, there must a direct link back to the business plan and an understanding of how training supports the successful implementation of the business strategy.

Team of advisors. Without exception, every successful business owner I've worked with has talked to about how having trusted advisors is necessary for success. They know they can't know everything and they searched out advisors they could trust. They usually preferred to pay for this advice because they were looking for someone who would challenge them, hold them accountable, ask them important questions and introduce them to others who could help them when necessary.

Work/life balance. Successful business owners understand that every person has just 1,440 minutes in any given day and how they spend this time directly impacts how effective they'll be in growing their businesses. Smart entrepreneurs successfully integrate their social lives into their business lives: The client who purchases a product today gets invited to the lakeside cabin the next weekend. Clients become friends, and co-workers become like family. These entrepreneurs build their lives around their business, and it's almost impossible to distinguish between their social lives and their business lives.

Will the Government Help You Start A New Business?



Will the government help you start a new business? The short answer is yes. There are numerous government-funded organizations out there that can help with many steps of starting or running a business. In particular, the Small Business Development Center (SBDC), SCORE and the Women's Business Center offer free counseling, training seminars and (sometimes) resources like computer labs with business software. (For related reading, see: 8 Tips For Starting Your Own Business.)

The long answer is that while this help is available, you have to seek it yourself. Also,while many organizations offer one-to-one counseling sessions, it's ultimately up to you to determine how you'll implement the advice in your business.

SCORE vs. SBDC vs. Women's Business Centers

There are three main organizations that provide help to entrepreneurs: the SBDC, SCORE and the Women's Business Center. Each of them is funded (in part) by the Small Business Administration (SBA) and has regional offices around the US where anyone can go in for training. They all provide free counseling and free or low-cost training seminars.

They differ, however, in how they procure teachers and mentors for their staff. For example, SBDCs hire full-time employees to train and counsel entrepreneurs, whereas SCORE has volunteers. They also differ in the topics they cover in training and counseling sessions. Generally, each organization has at least one office in almost every mid-to large-sized city. The offices usually work together by specializing in different areas of focus. You might walk into an SBDC looking for HR advice and instead get referred to a SCORE chapter or Women’s Business Center.

Here's a more detailed overview of what each organization offers:

Small Business Development Centers (SBDCs)

SBDCs constitute a wide network of almost 1,000 regional help centers, which you can find in every state. Small business owners can receive free counseling and attend low-cost training seminars. Some SBDCs also have resource centers that give you access to PCs with business software. According to the SBA, the topics of advice include:

    Business plan development

    Manufacturing assistance

    Financial packaging and lending assistance

    Exporting and importing support

    Procurement and contracting aid

    Market research help

    8(a) program support (a program that helps minority-owned businesses get government contracts)

SBDCs tend to focus more on developed businesses -- those which have been around for a few years and have 5 to 25 employees. But they can still provide help to entrepreneurs who are just starting out. SBDC advisors are trained, full-time employees, so they can provide advice on a wide variety of topics.

SCORE

Like SBDCs, SCORE has regional offices where entrepreneurs can receive free counseling and attend training seminars. However, unlike SBDC, SCORE also has a lot of resources available on the Web. For example, the Email A Mentor lets you connect with a volunteer business professional who can confidentially advise you on a variety of topics.

SCORE originally stood for Service Core of Retired Executives. The acronym has since been dropped because many volunteers today are not retired. But the model remains the same in that entrepreneurs can receive advice from professionals with “real world” business experience.

This has its benefits and drawbacks. On one hand, you can link up with a mentor who has dealt with the very same issues you’re facing. As Kenneth Yancey, CEO of SCORE, explained to Fit Small Business, “the matching process is driven by what the client wants, their industry, and the particular issues they are facing, etc.. If the business owner is a restaurant owner that wants to increase sales, we might match that person with a food industry professional that has marketing and sales experience.” On the other hand, if that same business owner wants HR advice, he or she will probably have to speak with another mentor. Because each volunteer has specialized knowledge, you’ll have to speak with several different mentors to get the full range of business advice.

Women’s Business Centers

Women’s Business Centers (WBCs) provide many of the same services that SBDCs do. The key difference, however, is that they tend to have more female staff and focus on issues which tend to hinder the success of female entrepreneurs. For example, women entrepreneurs tend not to seek outside capital at the same rate as their male counterparts. (See article: Female Entrepreneurs are Surpassing Their Male Counterparts.)

Despite their focus on helping female entrepreneurs, particularly those who are socially or economically disadvantaged, Women’s Business Centers can also help men. It’s not uncommon for men to seek advice from WBCs because their experts have specialized knowledge they cannot find elsewhere. (For related reading, see: Ten Characteristics Of Successful Entrepreneurs.)

SBA District Offices

Although the Small Business Administration provides funding to these 3 groups, they also have separate offices that provide help for entrepreneurs. Most notably, small business owners can go to the SBA district offices to apply for SBA-guaranteed loans. It must be noted that the SBA does not provide loans, but rather, if a loan from a bank is approved, they can back that loan. (See: Alternatives to Loans.)

The Bottom Line

Whether you’re starting a business or trying to improve an existing business, there are many different government-backed services out there that can give you a boost. Just be aware that, because of the diversity of businesses out there -- and thus, the wide range in types of experience and knowledge mentors have -- it may take a little time to find a match.

You can start here to find a Small Business Development Center, SCORE chapter, Women’s Business Center or SBA district office in your area.

About The Author - Jeremy Marsan is a staff writer for Fit Small Business, a “how to” publication for small business owners.

Disclaimer: The opinions expressed are those of the author and are subject to change at any time due to changes in market or economic conditions. The comments should not be construed as a recommendation of any individual holdings or market sectors. This material does not constitute any specific legal, tax or accounting advice. Please consult with qualified professionals for this type of advice.

Investopedia and Fit Small Business have or may have had an advertising relationship, either directly or indirectly. This post is not paid for or sponsored by Fit Small Business, and is separate from any advertising partnership that may exist between the companies. The views reflected within are solely those of Fit Small Business and their authors.

Start Your Own Small Business



Wouldn't it be great to be able to quit your job, be your own boss and earn a paycheck from the comfort of your own home? The good news is that with a little planning and some startup money, it is possible!

Let's delve a little deeper into how to start a small business from home and help you decide how much planning and money you'll need to be your own boss.

Creating the Concept
Before quitting their jobs, the potential entrepreneurs must first think of a concept, product or service to generate a steady income. And while that may sound easy, it's not. You should conceive a plan that puts your knowledge, experience and expertise to use but in a way that allows you to make the most amount of your money.

When first thinking of some business ideas, start with areas you already have a great deal of interest, equipment and materials for. This will help cut down on the startup costs for your company and also let you hit the ground running when you do hang out your shingle. Also, peruse the local paper and advertisements to see what other types of businesses are out there. Are there other similar businesses in your neighborhood or is there a business area that is lacking?

Doing something you like isn't the only consideration. You need to get an idea of the prospects for the potential business. Is it a business with a market? Can you make money at it? This will require some research into the marketplace as well as how other similar businesses have fared.

Developing a Work Space
Your home is where you live. This means that its primary function is to serve as a dwelling for you and your family - not as a warehouse or meeting place for your business and its clients. Make certain that if you are considering entering the manufacturing business (for example) that your garage or shed is large enough to handle your work - without forcing your family and your vehicles into stormy weather.

Similarly, if your work will be computer-based, make sure that you have the technology necessary to give your idea a fighting chance. In addition, make sure that you have a dedicated area that's cut off from the rest of the house and that can afford you some privacy. Remember, hearing a barking dog or a crying baby in the background when you are trying to work or meet with a client may not be ideal for you or your family.

Outsourcing Partners/Employees
While it would be great to be the sole owner of your company and have complete control of every aspect, sometimes a lack of funds or experience make it necessary to have a partner. In this case, consider someone that is bright, will represent the company well, and has some sort of expertise in the business you are developing, be it sales, marketing, book-keeping, or other financial matters.

Also, try to define the tasks that you and your partner(s) will be responsible for before opening up shop. That way, there will be fewer disagreements and the business will operate more smoothly. Also, make sure that all partners are legally cared for by the company, and that the proper forms are filed with the regulatory authorities - this may mean filing twice and paying for title changes if you need to find a new partner, but it will protect both of you in the long run.

Next, decide if you'll need employees - whether now or in the future. If so, put some thought into how you will get them and what you will pay them for their work. Also, think about how you'll do payroll, and whether people will want to work from your home, from their own homes or if you'll need to find another facility to house them.

Doing Your Research
Some books on forming a small business suggest that after hatching an idea, an entrepreneur should just "go for it." However, this bold approach could land you in some shaky territory.

Instead, a good first move is to start asking family and friends what they think about your small business idea. Consider asking them specific questions such as:

    Would you purchase this particular product and/or service?
    What do you think its worth?
    What is the best way to market the idea?
    Is this something that you think is a fad, or do you feel it could be a viable business for the long term?
    Is there anything you can think of to improve this idea?
    What other businesses in this field have you heard of or do you currently use for this product/service?

If you're married and/or have kids, you should also be asking your family how they feel about you quitting your job and working from home. This will affect them on a psychological and financial level. If any of their answers are negative, you should spend some time discussing their concerns and decide whether your goal is worth continuing against their wishes.

After obtaining all of this feedback, go back to the drawing board and see if the idea can be improved upon so that your product or service can be differentiated from the competition. Remember, you want to hit the ground running and turn as many heads as possible when first starting off!

Finding Funding
Once you have an idea and the approval of your family, you need to decide how you are going to finance it. Most businesses will need at least a little startup income. This investment will hopefully help you break even after a year, but keep in mind that even successful businesses can remain in deficit for the first few years. Because of this, you will want to tap into a few different sources of funding. Some of these include:

    A small-business loan
    Savings
    Money generated from other investments
    Family/friends who will act as investors
    Personal loan from the bank
    Home equity loan
    Credit cards (as a last resort)

Source capital that won't hamper your longer-term security. In other words, try to avoid racking up costly credit card debt that could cost 20% or more in yearly interest fees. Also, try to avoid borrowing against your 401(k) or other similar plans as this may adversely affect your retirement.

Finally, one of the best things you can do before you take the entrepreneurial leap is to build up an emergency fund to fall back on if your company doesn't break even for a few months. Three months of living expenses is a minimum goal for a new business owner, but even more will help take the stress off of you and let you spend your energy on your company.

Covering Your Bases
All business owners should think about what would happen to the enterprise and the revenue streams being generated if health or other issues were to prevent them from being involved in the business. In other words, if the entrepreneur were to become disabled, who would takeover? Could the business survive?

Consider these issues beforehand and determine whether disability income insurance makes sense, or if a partner could fill the void caused by your absence.

Foreseeing the Future
It's great to own a business, but ultimately the entrepreneur will probably want to retire or move on to other challenges. With that in mind, you should create a business plan that discusses how you will transfer, sell or close your company. If your business depends on your unique knowledge and contacts, it may not be able to be assumed by another party.

Conclusion
There are few things more satisfying and rewarding than launching and owning your own home-based business, but before diving in, be sure to do your homework. Making a business work is not an easy task, but proper planning will help to increase its chances of success.

Steps To Creating A Stellar Business Plan

A business plan serves two purposes:

    It provides a road map for your business.
    It helps you obtain outside financing.

If you're going into business for yourself, you must have a business plan - period. Numerous studies have shown that one of the major reasons new businesses fail is poor planning. (Many people want to start a business, but not everyone has what it takes to succeed. Learn more in Are You An Entrepreneur?)

The good news is that developing a business plan is not as hard as it seems. In order to develop a solid business plan, you need to have a thorough understanding of the business you're entering. Next, you need to determine how you'll use the plan and who your target audience is. Finally, you should create a complete a business plan that is comprehensive and concisely written. We'll explore each of these steps in detail.

Step 1: Know Your Business
In order to prepare a business plan, you must know the business you are entering inside and out. This means lots of research. Research comes in two forms: reading everything you can about the industry and talking to those who are already in it. Learn everything you can about your business and industry.

Step 2: Determine Your Purposes for the Plan
A business plan serves to crystallize your business vision and guide you in fulfilling that vision; it is also frequently used to entice potential investors.

If you are self-financing your business, you design the plan mostly for your benefit, but if you're seeking outside investors, you'll need to target them. As such, before you create your plan, determine whether you will solicit outside investors.

Step 3: Determine Your Audience
If you plan to recruit investors, you need to build a plan to suit them. Outside investors, who range from friends and family members to banks and venture capitalists, will invest through either loaning you the money, buying shares in your company or some combination of the two. Determine their level of sophistication and what they are looking for in a potential business investment. Remember that regardless of their level of sophistication, they are all looking for four things:

    Trust in you - You build trust by demonstrating ethics and integrity, so your business plan should demonstrate those qualities. (Read Eight Ethics Guidelines For Brokers for more on gaining a reputation for integrity.)
    Understanding of the business - It is your job to clearly articulate your mission statement, your product offerings and how you will make money. Your may have to tailor your plan to suit your audience: less-sophisticated investors may be scared off by industry jargon, while investment professionals will probably expect it. (Read Getting To Know Business Models for further reading on how businesses make their money.)
    Financial confidence - Clearly articulate the risks of investing in your business. Also, show investors how they can recoup their money - whether your venture succeeds or fails. (Learn how venture capitalists make their money in Cashing In On The Venture Capital Cycle.)
    A good return on investment - Over the period of 1928-2007, the geometric (exponential) return for stocks was 9.8%, while for 10-year Treasury bonds, it was 5%. Historical private-equity returns are more difficult to measure, but, in general, investors will expect a premium of anywhere from 2-5% over public-equity market returns. The return on equity for your new business must be in the private-equity range. (For related reading, see Keep Your Eyes On The ROE.)

Typically, investors will look to beat a certain internal rate of return. Your job is to make sure your projected returns are in line with those of similar industries. (For related reading, see An Inside Look At Internal Rate Of Return.)

Step 4: Create Your Business Plan
First, develop an outline of your business plan. Consider every aspect of your business and how it will affect your business plan. Remember, this business plan is a road map. It must guide you. It must also communicate to investors what you're doing and why they should invest with you.

The order in which your plan is presented should be something like the following:

    Mission Statement
    Executive Summary
    Product or Service Offerings
    Target Market
    Marketing Plan
    Industry and Competitive Analysis
    Pro-Forma Financials
    Resumes of the Company Principals
    Your Offering (what type of financing you're seeking)
    Appendix (any other pertinent information)

You'll probably also want to note any personal seed capital you're investing in the venture. Financiers want (and often require) entrepreneurs to put their own funds in the venture, and the greater the portion you invest relative to your net worth, the better.

Now let's review each section of the business plan in detail.

1. Mission Statement
The mission statement is a concise, one- to three-paragraph description of your business objectives, or your business's guiding principles. In this section, you should state your unique selling point, or what separates your company from all the others in the industry that are otherwise just like it.

2. Executive Summary
This is a one- to two-page summary of your business. Potential investors will read this to decide whether they want to look at the rest of your plan.

3. Product or Service Offering
Create a section describing your product or service offerings in detail, as well as how much you'll charge for what you're selling.

4. Target Market
Present your primary and secondary target markets, along with any research that demonstrates how your target market will benefit from and consequently purchase what you're offering.

5. Marketing Plan
Present your marketing plan, which should show in detail how you'll reach your target market. This part of the plan will include advertising and promotional strategies. (Read Advertising, Crocodiles And Moats to learn more about the importance of good advertising.)

6. Industry and Competitive Analysis
Include a complete and thorough industry and competitive analysis that includes all stakeholders in your business. Don't forget to include governmental and regulatory agencies. (Read Competitive Advantage Counts to learn the importance of being different from the pack.)

7. Financial Statements
These must be complete, accurate and thorough. Each number on your spreadsheets must mean something. Don't estimate payroll, for instance; determine what it will actually be. Your income statement must reconcile to your cash flow statement, which reconciles to your balance sheet. Your balance sheet must balance at the end of every period. You must have supporting schedules (e.g., depreciation and amortization schedules) to back up your projections. (To learn more about what investors will be looking for, see Reading The Balance Sheet and Breaking Down The Balance Sheet.)

If you are having trouble building your pro-forma financial models, which should project out for at least five years, seek outside help from a qualified professional. (Learn how to ensure that your business stays afloat in Six Steps To A Better Business Budget.)

Use realistic projections. In estimating the growth of your business, you will make certain assumptions, which should be based on thorough industry research combined with a strategy for how you'll compete. Also, analyze how quickly you'll achieve positive cash flow. Investors vary in their standards, but most like to see positive cash flow within the first year of operation, particularly if this if your first venture.

In order for your projections to be accurate, you must know your business. If you've built an accurate and realistic model, but still project negative cash flow for more than 12 months, rethink your business model. (For related reading, see The Essentials Of Cash Flow.)

8. Resumes of Company Principals
Include the bios and professional backgrounds of all significant employees of your business. You will want to emphasize how their backgrounds have prepared them to take on the challenge of running your new startup. Also, if an employee's business background is in a significantly different industry, you might want to emphasize how this can be an advantage instead of a detriment. (Read more in Evaluating The Board Of Directors.)

9. Your Offering
Present what level of investment you're seeking and for what purposes you will use the funds. If you're selling business units, state the individual price per unit.

Once you've put together all of this key information, make sure to present your plan professionally. It should be typed, margin aligned and neatly bound. Use color graphics and pictures where possible. Do not handwrite changes or corrections. The inside of your business plan should be near book or magazine quality.

After you've finished your plan, have a professional you trust, such as a Certified Public Accountant (CPA) or attorney, look it over. This person may catch details, errors or omissions you've made. They also will be able to give you a more objective opinion of the viability of your business.

Building Your Business Plan Is Just the First Step
Once you've completed your plan, you'll submit it to potential investors, who may ultimately commit to financing. Once you receive those commitments, you'll negotiate terms and then, finally, open your doors for business, which is where theory ends and the real work begins.