Chargeable Real Property Gain Tax (RPGT) – 5%

Property(s) that are disposed within/less than 5 (Five) years are subject to pay the RPGT of 5%. However, the chargeable amount can be calculated as follows:-

Example:

Cost of Purchase A property is RM150,000

Dispose of A property within 5 years time at price of RM200,000

Gain of profit of Property A is RM50,000

Minus Rebate RM10,000

Minus Legal Fees Assume is RM4,000

Minus Property Agent Commision RM6,000 (3%)

Minus Renovation RM7,000

Nett Profit will be RM50,000 – RM10,000 – RM4,000 – RM6,000 – RM7,000 is RM23,000

Therefore, the RPGT to government for Property A is RM23,000 x 5% = RM1,150

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How to make your car profitable

Cars are quite accomplished at spending your money for you, but they're not usually much good when it comes to generating cash. Buying the thing, road tax, insurance, an MOT and fuel aren't exactly kind to your bank account, but it's possible to recoup the costs and make a little extra on the side while you're at it.

We've scoured the web and found four novel ways of making your car rack up some notes for you. Some require more effort than others, but they're all worth a look if you could use a little extra at the end of the month.

Advertise
Seen those cars in town that are plastered with slogans? They're making money for their owners, so there's no reason you can't do the same. If you don't mind having your car covered with bright, self-adhesive stickers, then you could earn over £200 a month by turning your car into a moving billboard.

Autocarwraps.com will pay £200 a month if you agree to completely cover your car (aside from the windows, obviously) in advertising. Agree to have half of it covered and you'll get £150 a month. Comm-motion.com offers a similar service with up to £220 per month for covering the whole car.

If you're interested, it's worth checking with your insurance company to find out if your premiums are affected by this. Read the small print too, as you will be contracted to keep the adverts on the car for a certain amount of time.

Lease it
It's not particularly well known, but you can lease your car out to other drivers. Whipcar.com allows other motorists to rent your car while you're not using it. The site works by matching people with a car to those who need one for a certain amount of time. If you use your car in the week, but not at the weekend - or vice versa - then it's worth a look.

All drivers and cars are checked out by Whipcar before any transactions go ahead, so it's perfectly safe - you can even set your own rental price, but you'll need to be realistic if you want the business. The service is open to anyone with a car under eight years old with a valid MOT, road tax and insurance.

Car share
Strictly speaking, you won't make money by car sharing, but you can save a tidy sum. If you and one or more colleagues travel a similar route to work then you can effectively halve your fuel bills by splitting the cost.

If there's no-one in your neck of the woods that you can ask then check out Carshare.com. The site helps you to find budding journey pals in your area - its operators reckon that you could save up to £1,000 a year.

Be a courier
If you do big miles then it's worth dropping off packages for a profit while you're at it. That might sound a little dubious, but Stuff2send.com is a safe and legal site that allows you to register as a courier and start delivering for cash.

Membership is free and you can pick and choose what items you want to deliver and when via a bidding system not unlike eBay. If you win the bid, the job is yours.

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10 Ways Small Businesses Can Compete With the Big Boys

You may not be able to compete with the big boys head-on, but who says you can’t make big money? The key is to do things that they do not do. Here are some strategies your “little” business can survive and thrive against the big boys:

1. Provide exceptional customer service. Treat every customer as your best customer and you will be BETTER than the big guys. As a small business owner, you can concentrate on small details — every client is important, every suggestion is heard, every phone call is important. A larger company can afford to throw away clients if they complain. They may also not feel the pinch of losing three or four clients a week; since they figure that they will get them back next week — or so they think.

2. Pamper your existing customers. When the big boys and mass merchandisers come to town, now is the time to strengthen the loyalty of your existing customers. One way is to develop loyalty programs designed to increase overall satisfaction and customer loyalty. You can focus on rewarding customers who have repeat purchases, such as discounts for frequent purchases, special “loyal customer only” sales, or gifts to frequent buyers.

However, it is important to realize that not all freebies will work a free t-shirt may work for one business but customers of another business may not find it meaningful. You must choose a program that your clients would want and respond to positively.

3. Consider collaborating with similar businesses. Join with small rivals to form a ‘cluster’ that can act as one body to rival bigger competitors. Forming an alliance or partnership with other businesses, even your rivals, is one of the best way to level the playing field and compete with major players without being at a disadvantage because of their superior size. As an alliance, you can harness some of the buying power of mass merchandisers by teaming up with other businesses, even just for basic supplies. This will allow you to cut down your costs and get cheaper inventory. By teaming up with other small operators, you can compete with big rivals by sharing the cost of marketing, such as getting a stand in a major industry trade show something that you may not be able to afford on your own.

4. Use “loss leaders”. A “loss leader” is defined as a product on which you lose money-but through which you also generate sales of other products in your mix. The idea is to price selected items at cost (or even below) in order to entice customers to go to your store; and then hope that these customers will buy more once they are inside the store. Another approach would be to sell a product at a loss, bundled with another that is profitable, such as offering “two for the price of one.” The goal is to entice customers in with irresistible offers, that they will buy other things more profitable to your business.

5. Develop a niche and focus on it. Big Boys like Wal-Mart or Best Buy have a little of everything; while you can have a little of most things and everything of one or two types of products. This will establish your store as the place to go when buying those items. The way small businesses can compete is to carry extensive items in one or two product areas. Specialize or focus on a narrow, deep but profitable niche. You can win against the giants by looking for gaps in the market that are either neglected or poorly covered by big companies. For example, you can be the only florist in your area that has all the supplies necessary for elegant parties — and the staff that knows how to pull it together.

6. Take care of your employees. Pay attention to your employees and treat them right. Treating employees fairly is much more crucial for a small firm. Even with the rising unemployment, finding quality personnel is not fairly easy for a small business. If one decides to leave your business, there is no reserve or pool of talent. Even with a complete staff, you may find that numerous aspects of management or operations may fall into the lap of one person, which tends to make extreme time demands on that person.

7. Use technology to your advantage. Technology, now more advanced and affordable to small and large companies, provides the tools and power for small businesses to compete on an equal basis wit the big boys. It is the biggest improvement to level the field between the big and small boys. Voice mail, broadband Internet access and two-way radios, for examples, can increase efficiency by allowing small business owners to get more done in a timely and professional manner. Computers also allow for more efficient and professional customer invoicing, job pricing, and inventory tracking. If you are still not on the Web, better start now as a web site can provide you with an inexpensive, comprehensive, and professional advertising in front of your customers.

8. Present a very professional image. Small firms competing with big businesses will find that first impressions are vital. Image is crucial to winning the trust of potential customers and retaining the ones that you have. You must be professional, even if you are working from your kitchen table. Professionalism should be seen from every aspect of your business from the way you dress, answer the phone, or design your business cards. Plus, always give the impression that your business is thriving, well established and efficient. Many customers do not mind that they are dealing with small specialist firms; as long as the business has the credibility that they are looking for. Think big and chances are your customers will too.

9. Emphasize the uniqueness of your products. People are often attracted to the idea of getting something unique from a smaller, independently owned business, but are used to the larger selection a chain store can offer. In your marketing and advertising messages, highlight the originality of your stock as compared to the universal stock a chain store offers.

10. Give your store character. Most big retailers have the same look, often impersonal, in every city. Make your store stand out by giving it an inviting character. Make shopping in your place relaxing. Greet customers as they enter the door, and let them know that you and your staff are nearby if they need any help. Never let customers wander around the store not finding what they need and no one to help them.

When a big boy moves into town, don’t be afraid. You may not be able to fight big rivals on their own ground because you simply don’t have the resources; but you can often steal a march on them by being more agile, creative and committed.

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PIKOM PC Fair 2010 (II)

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