Posts Tagged ‘starting an online business’
Options In Starting A Business
October 20th, 2009
There are three main aspects that you need to address in choosing the right business opportunity. You need to know what to avoid, know what you want in a business, and know your own qualifications. I covered the first two parts of this equation in my previous articles, How To Find The Right Home Based Business, and Red Flags and Mine Fields. This article will deal with the third – and possibly the most important – aspect of your decision making process.
Making the decision to start your own business is a very big step in the right direction for your financial future, especially in this economy. Congratulations, you have crossed a very big hurdle in your journey toward financial freedom. Now, let’s try to narrow the scope of your search.
“Decision is the spark that ignites action. Until a decision is made nothing happens.” (Wilfred A. Peterson)
I have run across many people who have said they aren’t good sales people or they don’t want to sell anything or something to that effect. I understand that the thought of selling can be intimidating. I have been in various forms of sales for years and I still don’t care for the concept of trying to convince someone to do something they don’t want to do…and that is what most people think of when they think of selling. Be that as it may, in order for any business to make money, some form of a good or a service must change hands, i. e. a sale must take place. It’s that simple.
Before you jump into one business after another, hoping to strike it rich, (like I did), stop and look at yourself. Take stock of your situation and evaluate your strengths and weaknesses in an open and honest manner. Obviously your focus in this business endeavor is to succeed so don’t choose something that requires skills that you have identified as your weak points. Doing so would hamper your chances for success.
I once worked for a very well known national company. This company has a phenomenal marketing presence which everyone recognizes. That alone got my foot in the door. The sales job I had with this company depended on my ability to cold call. That was one of the things I identified as a weakness when I 1000 took stock of myself. Although I loved the company and its products, if I would have stayed in that position relying on my ability to cold call, I would have starved. My point is simply that you should not choose a business at which you’re not well suited.
My assets are that I am a good communicator, very detail oriented, a good teacher, patient, and I very much want to help people. My weaknesses are that I am lousy at cold calling and I consider it a waste of time to try to convince someone that my product or service is good for them if they don’t think it is. It doesn’t sound like I would make a very good candidate for a typical sales job.
I was fortunate to find the perfect business for my skills. Yes, it is a sales position technically. (How else would I make money?) But it differs from the classic sales position that scares most people. I never cold call anyone. I only call people back once they have contacted me and asked for information. That eliminates one of my biggest weaknesses right there. I also know that I will be investing my time working with new customers so I don’t want to bring someone aboard whom I will have to drag to work every day. That eliminates me trying to convince anyone to do something about which they may be reluctant. There, now both of my weaknesses are out of the way.
What I have been shown in this business is to simply give people all of the information they will need to make a good decision for themselves. From there, it is up to them to determine if this is a good fit for them. That’s simple enough for me. I am a good communicator. When someone chooses to follow me into this business, I work with them to teach them every aspect of how to earn a six figure income. Once again, it plays to my strengths of teaching and helping people.
My whole point is that you can succeed in the process of finding the right business for yourself if you take a good, hard look at yourself first. Identify your strengths and weaknesses so when you see an opportunity, you will be able to evaluate in an objective manner if you would be well-suited to that business. By doing that, no matter how attractive an opportunity looks, you won’t be tempted to put yourself in a position to depend on your weaknesses to help you succeed. If you are lucky enough to find an opportunity like I did that plays to your strengths, while minimizing any reliance on your weaknesses, you’re home free!
By: Allen Buck
Planning A Successful Business Exit
October 15th, 2009
A business owner’s exit is a once-in-a-lifetime transformation. We’re not talking about selling a house or a car. This is a complex process that requires the technical expertise of a team of trusted advisors. The key to any successful business exit is planning. It must begin with personal reflection on the part of the owner regarding what he or she wants out of the business exit. Only then can the owner, along with his advisors, design an appropriate exit strategy. The five (5) planning steps outlined in this article are designed to help business owners define their personal goals, understand all the transfer options and work with an advisory team to execute a successful business exit plan.
Step 1: Define the Personal Goals of the Owner
Since personal goals intertwine so closely with the daily existence of a private business owner, it only makes sense to begin with the basic albeit crucial question, “What do I want to accomplish with my business exit?” The answer seems obvious–make the most money after taxes and fees. Often, however, it isn’t this simple. Owners have nourished and raised their businesses from infancy; they typically care a lot about who will take the reigns. Family members might also be involved in the business. Their fate will also be dependent upon what the business owner ultimately decides.
Aside from money, other motives for a business exit can include “transfers to family”, “transfers to employees”, “transfers to co-owners”, “partial transfers to gain some liquidity today but still run the company’s day-to-day business”, or “an initial public offering”. The decision often comes down to a question of liquidity. A substantial source of liquidity outside the business makes for a much easier choice.
However, more often than not an owner’s wealth is tied up in the business. The owner must therefore balance his financial and interpersonal goals in order to find the best possible exit strategy. Therefore, an assessment of the range of values for the business is the crucial next step.
Step 2: Understand that a Range of Values Exist for the Business
The value of a privately-held business depends largely upon who buys it. It’s not as simple a 1000 s watching the ticker tape for today’s stock price. The type of buyer can impact both the price placed on the shares (or assets) of the business and the tax consequences to the selling owner. Value (net transfer price) is therefore a “range concept”.
“Internal” transfers to employees, family, and co-owners provide fewer dollars up front, but allow for greater “control” of the business, “continued income”, and flexible timing and tax characterization of payments to the exiting business owner. By contrast, “External” transfers to other industry players, financial groups, or by initial public offering command more liquidity “up front” while the owner relinquishes more control over the Company and the timing and tax characterization of payments. A closer examination of the transfer options can help an exiting business owner determine the right balance of money and control over the future of the business.
Step 3: Examine the Options Available for the Transfer of Shares
There are seven (7) primary purchasers of privately-held business stock (or assets). Below are listed the Parties to the Transaction and Types of Transactions Available (samples; not a complete list)
Internal Parties:
Employees – Employee Stock Ownership Plan (ESOP)
Charity – Charitable Remainder Trust
Family - Gifting Program
Co-owners – Leveraged Buyout
External Parties:
Financial Groups – Recapitalization
Industry Buyers – Acquisition (at Synergy Value)
Initial Public Offerings – IPO (at Public Market Value)
Based on the primary goals defined in step one (1), an exiting business owner chooses the “party” to whom the business will be transferred. That designee, once chosen, will determine the limits or expansion of the Value. At the end of this phase, the process comes full circle as the Value (after taxes and fees) is matched against the owner’s goals. If the two meet as one, congratulations! A successful business exit strategy has been devised. Now it’s time to execute.
Step 4: Provide Full Financial Disclosure to the Buyer
This step isn’t going to be easy on the business owner. Assembling financial records and presenting them to a buyer/successor is a very time consuming, very personal survey of how the business is run. It can be huge psychological block for many exiting owners. Remember, any savvy buyer (or successor) to a business will need to understand the financial condition of the Company. When an owner fesses up to any “creative accounting” they may have employed over the years to help build wealth and reduce tax bills, the process goes smoother. Full disclosure is the best path to a seamless process. There is an old saying – “if the truth will kill a deal, then there is no deal”.
Not only that, but it may reward the owner in the end. Full disclosure is not about passing judgment, but instead affords the buyer (or successor) an opportunity to assess the business’s true profit potential. The astute exiting business owner will recognize this in advance. Why? Because most “creative accounting” practices depress the profitability of a business. Clear those away and the Buyer will recognize a higher earning power and in turn a higher Value for the Company.
Step 5: Assembling the Advisory Team – No One Should Go It Alone
Planning and executing a successful business exit strategy is a complex process that requires the technical expertise of a team of trusted advisors. It’s not the time to take short cuts or pinch pennies. Time and money should be invested in assembling the right team of advisors; a successful business exit is more than worth it. It should be viewed as an investment in success.
We must understand that business owners are independent “self-starters”. If they weren’t, their businesses wouldn’t be so successful and we wouldn’t be talking to them. But some of their strengths and characteristics can lead many business owners to attempt the 1000 “do-it-yourself” business exit strategy. This can create an unnecessary drain of time and money on both the business owner and their business.
A business owner’s exit is a once-in-a-lifetime transformation. It is an important milestone that is sure to provide any business owner with one of the most challenging yet satisfying sense of accomplishments.
So remember, planning is the key to any successful business exit because a proactive approach to an Exit Strategy is the only approach to a successful Exit Strategy. If you’ve come to the end of this discussion, you’re already ahead of the game.
By: John M. Leonetti
Start A Business With No Cash Investment
October 13th, 2009
So many people, at some point in their lives, think of starting a business themselves. Unfortunately that’s as far as they get, thinking about it. Perhaps fear of losing money rather than making it stops them or they may be unsure how how to get started with their business idea.
With a traditional business model there always are startup and running costs which can eat into your savings and add to the fear of failure. Thankfully, due to the internet, it is possible to start and run a business online without the necessity of a large capital investment.
When you start a business online, it really is possible to only have to pay for your computer and internet access. No further expenditure is necessary and the absence of startup capital is and incredible bonus. With no investment there is no fear of failure although with no financial commitment sometimes people do not work as hard as they could do.
There are many possible business models and activities to pursue on the internet and my own favorite is internet marketing.
Although internet marketing can be started with no investment it is possible to reinvest profits into your online business to help it grow and prosper more. Once your new business starts to generate an income it is good practice and cost effective to create a small budget to promote it more.
Internet marketing usually is based on affiliate business, promoting products that pay a commission. While the commissions may only be in the region of $20, the business model allows you to create multiple streams of income from different sources.
Over time, this multiple income sources begin to add up until the total daily commissions earned from different product sales can be considerable. Daily income levels of $500, $1000 or more are not uncommon.
As with all business, action is the secret ingredient. Great ideas are nothing without effort to manifest them. Now with the internet, it is possible to start a business online without startup money. It takes your dedication and effort and both of those don’t cost you anything.
One other facet to success in any business is of course, experience. The more experience you have th 1000 e more chance of success you have. Internet marketing is no different in that respect.
There obviously is a period of learning although often people start to become profitable quite quickly and the sheer joy of realizing you are starting to make money is a great boost and encourages you to try harder.
Often, not concentrating on one particular market for long enough is a reason for failure. Hopping from one business direction to another can result in frustration and a low profit potential. A clear focus on one market is the best way to not only make a profitable business but also gain the valuable experience for future campaigns.
By: Steve J Barker
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The Advantages And Disadvantages In Home Business
October 12th, 2009
With the devastating waves of recession ravaging the economies of the world and leaving millions jobless in their wake, the home has now evolved from being just where the family stays to being the place where business is. In the recent decades, many people have opted to depart from working in an office and serving under a boss to marketing their talents and skills from home, with no boss other than their own. 20% of all new small businesses are already being operated out of the home, and this percentage is expected to continuously grow over the coming decades.
Many people start home based-businesses as part-time ventures or source of extra income and eventually expand it into a full time business after the market for the business develops and grows. Most home-based businesses are founded by women and usually get other family members involved either from the start or after growth and expansion. This is so because operating a home-based business normally needs greater amounts of time, energy and money than most jobs.
There are almost as many kinds of home-based businesses as there are normal businesses. The variety of home-based businesses may range from service-oriented child care businesses to product-oriented craft outlets. Additional examples consist of farming, catering, specialty mail-order, home horticulture, and computer software consulting, woodworking and bed and breakfast establishments.
There are many things that can entice people to engaging a home-based business. They may include indulging in the personal satisfaction of making their own decisions, being their own boss, and expressing their own thoughts and ideas. People that establish home-based businesses may come from a wide variety of groups, like homemakers, single parents, youth, dislocated workers, hobbyists and people interested in earning more income.
The sense of independence and personal satisfaction are two bonuses that may be derived from operating a home-based business which some even value more that the earnings. Such feat of putting up and operating a successful home-based business however, is but a simple task. Complete commitment to the business and its needs are necessary. Me 1000 eting these various business needs such as customers, suppliers, and employees may greatly limit your independence. Home-based businesses require a great deal of sacrifice, because it is often difficult to balance business and family needs.
Factors to Consider in Starting Your Own Home-Based Business
Many factors are to be considered before establishing a business in your home. Does making a business out of your home seem sensible? What effects will the business you have in mind have on your family? Is the demand for the product or service you are planning to offer sufficient? What price should you charge for your products or services? These are but just some of the many questions one has to answer before starting up a home-based business. And these questions can be answered through writing a sound business plan.
A business plan can be the best guide when putting up your own home-based business. It is a basic description of the goals and objectives of your planned business and how you intend to realize them. The business plan will allow you to answer all the questions you may encounter during the endeavor even before actually starting your business. Also keep in mind that priorities need to be set and you need to manage your time effectively so your business life and family life can be in equilibrium.
Managing a home-based business in many respects is similar to managing any other business. There is however, the need to explore certain circumstances that are special and unique to home-based businesses. The analysis of the impacts on the family as well as the rest of the advantages and disadvantages of operating a home-based business is a must in the decision process of whether or not to start a business in your home.
There are of course both advantages and disadvantages in starting a business in your home. And with the home being the haven of the family, most of these pros and cons will directly or indirectly impact the family. Even though having your own business inevitably involves the need for a great deal of your time, money and effort, it should never come at the expense of your family. There is no strict trade-off between a successful business and a good family environment. Balance is the key in keeping your family life and business life in harmony. Setting priorities is a must to effectively manage your time.
Pros of Operating a Home-based Business
1. Can start as a part-time business.
2. More flexible lifestyle and more integrated with the family.
3. Lower start-up and operating costs.
4. Cost-savings on child/adult care.
5. No commuting.
6. Flexible work hours.
7. Satisfaction of being own boss.
8. Increased tax benefits and write-offs.
9. Outlet for creative/unique talents.
10. Employment of family members by the business.
Cons of Operating a Home-based Business
1. Space may be cramped, limiting growth potential and family use.
2. Personal and family lifestyle patterns may be disturbed.
3. Business and family privacy may be disrupted.
4. Long work hours and time away from family.
5. Lack of fringe benefits.
6. Lack of informal social contacts or opportunities to network.
7. Stress due to inability to balance family and business needs.
8. Family members and friends may demand more of you when you’re home all day.
9. Business activities may cause problems with neighbors.
10. Discipline is required to establish steady, homework patterns.
Balancing Family and Business Needs
The secret to having harmony between a happy family life and successful business life is having the support of your family members. Given below are some tips to aid you in striking a balance between your family and business life.
1. Involve family members, where it makes sense, in developing the business plan, and communicate intentions to all family members.
2. Maintain a clear distinction between your bus 1000 iness life and family life.
3. Share home responsibilities with other members of the family.
4. Manage your time effectively by developing good time management skills.
5. Allow time for family vacations, and limit business hours to specific times of the day and week.
6. Start your business when your children are older or consider operating part-time when they are young.
The support of each family member is vital to the success of your home business. It is a necessity that every member of the family gets the chance to share his or her thoughts as well as feelings about starting a business in your home. All family members have the right to be kept informed of any plan or activity that will likely affect the family. Facilitate the development of trust and support within the family through open communication channels to catalyze the growth of your business.
Starting up and operating a home-based business can be a very exciting, fulfilling and rewarding experience. However, there are certain risks and careful planning coupled with good management skills are heavily required. One of the first steps to consider in starting your own home business is weighing the advantages and disadvantages, with focus on the effects on the family environment.
If you don’t want to take the risks and go through the difficulties of starting your own home-based business, you can join the revolutionary Al Roker Jr. endorsed affiliate program 4StepstoSuccess Action Plan and earn much and fast while learning how to put up your own internet home-based business.
By: darewin ocampo
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