Incorporating Your Business Using Three Simple Steps

Incorporating Your Business Using Three Simple Steps

Incorporating Your Business Using Three Simple Steps Incorporating your business today is much easier than it was 10 or even 20 years ago. Here's three steps; securing your corporate name, filing the necessary documentation and paying the necessary filing fees. You can complete these steps yourself, use an incorporation service provider or have an attorney complete them for you. When incorporating, you must first ensure that your corporate name is available in the state in which you want to incorporate. Your corporate name must not be deceptively similar to a name that is already in use in that state. A name check must be performed in the state of incorporation. You must also prepare and file all the necessary documentation. the Articles of Incorporation, with the appropriate state agency in the state of incorporation. Additionally, you must pay all state filing fees, initial franchise taxes and any other initial fees. Each state charges a filing fee to form your corporation in that state. These state filing fees vary greatly by state. They range from under $100 to over $400. Do It Yourself. Use An Incorporation Service Provider Or Use An Attorney. If you decide to incorporate on your own, you need to be well versed in the laws of the state of incorporation. You will need to prepare and file your own documentation and undertake all communications with the necessary state agencies. If you use an incorporation service company, you submit the necessary information, and the company checks your name, prepares and files your documents and pays the initial state filing fees on your behalf. Incorporation service companies charge a nominal service fee on top of the state filing fees, and you can submit all the necessary information to them over the Internet. Attorneys will also undertake all of the necessary steps for you. If you use an attorney to incorporate, you can expect to pay their hourly fee on top of the state filing fees. How long this will take depends on the time the state requires to approve and return your completed Articles of Incorporation varies by state. On average, it takes 4-6 weeks to become incorporated. Most states will allow you to expedite the filing process for an additional charge. Expediting filings typically take about 1 week. Those charges also vary by state. After your corporation is formed, an organizational meeting of directors must be held. At this meeting bylaws are adopted, stock is issued and the incorporation process is completed. Minutes of the organizational meeting should be kept in a corporate record book. Incorporation is an important step in the life of a business, but unfortunately the true value of incorporating a business is often not seen until the business faces a negative situation such as a law suit or bankruptcy. A primary advantage of incorporation is the limited liability the corporate entity affords its shareholders "The Owners". Typically, shareholders are not liable for the debts and obligations of the corporation. Creditors will not come knocking at the door of a shareholder to pay debts of the corporation. In a partnership or sole proprietorship the owner's personal assets may be used to pay debts of the business. Other Advantages include ¡è A corporation's life is not dependent upon its members. A corporation possesses the feature of unlimited life. If an owner dies or wishes to sell their interest the corporation will continue to exist and do business. ¡è Retirement funds and qualified retirement plans "like 401k" may be set up more easily with a corporation. ¡è Ownership of a corporation is easily transferable. ¡è Capital can be raised more easily through the sale of stock. ¡è A corporation possesses centralized management. Corporations are not without disadvantages. The primary disadvantage to a corporation is double taxation. Profits of a corporation are taxed twice when the profits are distributed to shareholders as dividends. They are taxed first as income to the corporation, then as income to the shareholder. All reasonable business expenses such as salaries are deductions against corporate income and can minimize the double tax. Further, the double tax can be eliminated by making the S corporation election with the Internal Revenue Service. Other Disadvantages Include ¡è There is a certain level of complexity and expense of forming a corporation. ¡è Corporations have extensive record keeping requirements. ¡è Operating a corporation across state lines requires the corporation to qualify to do business in the other state. Both the Limited Liability Company "LLC" and "S" corporation also provide the limited liability to the owners/shareholders of the company, without the potential disadvantage of double taxation. While like corporations these two entities also have advantages and disadvantages, it is a good idea to learn about all three when deciding what form your business should take. About the author: Abe Cherian is the founder of Multiple Stream Media, a company that helps online businesses find new leads and more customers without spending a fortune. http://www.multiplestreammktg.com

You May Have A Successful Small Business Idea

You May Have A Successful Small Business Idea

You surely know that a small idea can lead to a great business success. The first movement is to think of an idea that would be suitable for the business market. After coming up with the idea, the next step is to put that idea into action. Of course, this is a very difficult step and having the idea is only the start of the journey. After that you will have to face many obstacles before being able to carry on with your business project. This is just the beginning of this process and there is a lot of questions you will have to answer before even start. Some of the main aspects you have to concentrate on when you have business ideas are the abilities and gifts you can pour into the business. It is very important for you to be identified with your business project. Those ideas should be based on activities and actions you take pleasure in doing. For example, if we suppose that you dislike working in the open, landscaping business would not suit you. On the other hand, if you like working with children, setting up baby-sitting or tutoring business would be an excellent idea. In this case, without any doubt you business will be more successful because you will have put your mind, effort and also your heart on it. Another vital step is to analyze the needs of a specific product or service in your region before setting up your business. Do people of your area need your product? Are there other business like the one you are planning to start? You should ask yourself whether or not you are the only one offering that service or product. If you are not, you will have to analyze the competence you will have to face. You have to think whether the service you are offering is one that customer would repeat, or if it is a one-time specialized service. Obviously, the former are more likely to succeed than the latter. There are other aspects you have to take into account. These aspects are described below: - One of them is that if the idea is unique, you will reign the market. But if there is much competition, it will be difficult to enter into the market. - A second point would be if you can offer quality from the very beginning, otherwise, you won't succeed. - Finally, you have to think about your capital to start your own business. There are many business ideas that require little investment and bring great profit. Some demand research, such as daycare service, and others need a large amount of money to begin the business. So take this recommendation into account before investing all your money in a small business idea. About the author: Business information at http://www.finerbusiness.comwith the all time expert, Sintilia Miecevole is now available. You'll have resources at your fingertips from franchises, finances, banking, brokers, the economy, accounting, degrees, grants, to businesses for sale. Be sure to visit Finer Business for the latest news on business.

What If A Franchise Was Run Like a Typical Home Based Business and Residual Income?

What If A Franchise Was Run Like a Typical Home Based Business and Residual Income?

Have you ever wondered how a Franchise would do if run like a typical home business? This might give you some idea. There is something that is long as I live I will never understand. Well I suppose actually there are several things, however right now this is business focused. That something is residual income. I just can’t for the life of me understand how someone can go through life and just continue to work at a job with no plan for residual income. I suppose many people just can’t comprehend that they can have money coming into them while they aren’t working. There are a number of ways to get residual income like writing a book, or a song. However, these are tough occupations to succeed at. One of the very best ways to have residual income is good home business in Network Marketing. Network marketing has been criticized, poked fun of, ridiculed and worse. But it’s here to stay and it’s popularity is growing. Often called the poor man’s franchise, with the right company, product and timing a person can actually do much better than a franchise without the expense and headaches that so often accompany a franchise. Think about this, what would you say is the best most successful stable franchise today? Several come to mind but no one can argue that McDonalds wouldn’t be at or near the top of most lists. So what kind of point am I making here. Simply this, many people argue that home businesses, especially in the area of network marketing don’t work. Well gee whiz if a McDonalds was run the same way the majority of people work their home business the McDonalds would all go out of business. Here is how the typical McDonalds would be run if run by the typical unsuccessful home businessperson. When it’s open – I stress the word open, (more on this) it would probably be open less than 1 hour a day. The workers would be sitting around pretending to be working, but accomplishing very little. And then suddenly at a whim the store would abruptly close, perhaps to open again in a few days or even a few weeks. No schedule or hours of operation would be posted when the store was going to be open. After reopening after an absence the workers would just be getting back in the groove of working again when a half hour later the store would close because no customers were coming in. It seemed not knowing when the store would be open was keeping them away – imagine that. Well after a month or so of no customers the store is closed with the owner muttering under his breath. “These franchise things just don’t work!” Then he starts telling all his friends, “I tried one of those franchise things once. They just don’t work!” This example is easy to see and yet we all wonder why a home business fails when conducted in this same manner. What is great about a home business versus a traditional business is you don’t have to start each day at 8:00, you have a lot of flexibility. However, you don’t have the flexibility not to work for days and weeks at a stretch and engage in poor work habits when you decide to work. Of course not all the blame can be put on the new home business person, there are some bad programs out there and timing can be bad with others. Of course wrong expectations can mislead many people into discouragement. What do we mean here. Well look at it this way. Very few people would argue that Microsoft would be a poor stock investment today. However, there are people that hype their particular company that has passed it's growth spurt, that you can get rich and retire with their company. This is the same as a dishonest stock broker pushing Microsoft from the angle of it getting ready to explode in value as they will have double digit growth each month for the next 5 years. Hey in the early 80’s Microsoft had this type of growth, just don't expect the growth to continue forever. The point is there are always new Microsoft’s in the Business and Home Business markets. It’s knowing how to find them that is key. They are out there, home businesses that are rock solid and will experience this type of explosive growth over the next 5 years. About the author: Nick A. James offers informative tips and information on nutrition, health and working from home. Get the Exclusive Free Report! -6 Steps to Simplify Your Life, Improve Your Health & Give You Dynamic Energy! His many years of Internet Marketing expertise puts him in unique position to help others starting a home business . For free newsletter, health blog , and cutting edge info contact him at: http://www.health-goji-juice.com

Yes, You CAN Succeed in At Home Work!

Yes, You CAN Succeed in At Home Work!

Is doing at home work on the internet the right career path for you? Quitting your present job, putting all your eggs in the so-called web basket of a work from home job... these can be pretty scary moves. Of course, you don't have to quit your job to start doing at home work; it can be done part time, but then you have to be willing to give up some family/personal time (at least temporarily) to launch your business. Either way, there is risk and sacrifice involved in at home work. And, how can you be sure at home work is going to be worth it, or that you have what it takes to be an at home work entrepreneur? After all, launching yourself in at home work is NOT the right path for everyone. It takes the right combination of desire, organization, motivation, time, skill and creativity to be successful in work at home jobs. Just about anyone can be successful in starting a home business, but it is smart to take the time to do a little self-evaluation before you jump off that cliff. MY OWN AT HOME WORK STORY A little less than 5 years ago, I stood at the same crossroads you may be at right now. I was working in a job I once loved, but now hated, but which paid me an incredible salary that - as a single parent - I had become extremely dependent on. But I felt stifled, bored and restless. I dreamed of being my own boss ... Sound familiar? ASSESS YOUR APTITUDE FOR AT HOME WORK As discussed earlier, it is important to know if you have what it takes to make it in at home work. Your internet home business will require a certain amount of dedication and effort. Those "get rich quick" schemes you've heard so much about just aren't real. It takes hard work and motivation to reach success in work at home jobs. Don't let anyone tell you different. Evaluating yourself to see if you have the right qualities to succeed in a home business is the first step in helping you decide if you're going in the right direction when starting an at home work plan. FIGURING OUT WHICH TYPE OF BUSINESS TO START There are hundreds, perhaps thousands, of options when it comes to at home work. Which work from home job is right for you? The best place to start is to ask some questions: 1. What type of at home work business would best match my knowledge/skill set? 2. Do I want to sell a product or a service ... or some combination of both? (Look at your current occupation. Is there some common problem or gripe associated with it ... could you start some sort of home business to solve that problem? Or ... do you have a hobby or personal interest that could be turned into some sort of at home work?) 3. Do I want to sell someone else's product, or develop my own? (If there is some product or service that you believe in, perhaps you should explore selling it. There are many people today making a living in work at home jobs just by selling other people’s products. Spend a few weeks researching affiliate products, learning how to market them, and get up and running with an automatic system that works in the background. Then, let those affiliate programs earn slowly—or maybe fast!—growing income while you focus on the internet home business that’s your first choice, whatever that might be.) Serious discussion of affiliate marketing is beyond the scope of this article. However, you can find some great resources to help you learn more about affiliate programs and how to get started in them at www.homesweetbiz.com. Finding products you like—either offline or online—can also give you ideas for your own product or service. It is not necessary that your business idea be completely original. You can be successful by developing your own "unique selling point" that sets your product apart from all the others out there. 4. What kind of financial resources can I put into my at home work? (Can you afford to pay several thousand dollars to purchase a cookie-cutter or franchise type business? Probably not, but don't despair. Most internet home businesses can be started on a shoestring, or maybe a little more. But just keep in mind that what you can afford to invest will influence the type of business you choose to go into.) One of the best at home work product ideasI know of for an entrepreneur who wants to start a work from home job is ... Infoproducts! Everyone is an expert at something ... even you. Just think about it. What do you know a lot about? Is it the industry you've worked in for the past 15 years ... or that special hobby ... or that life-changing experience? Whatever your specialty is, you have valuable knowledge. Share your knowledge through an e-book. It isn't necessary for how-to books to be great literary works. What's most important is that they offer easy-to-follow information. These are just a few of the things you need to consider when planning to start a work at home business. About the author: Kathi MacNaughton is a successful home entrepreneur. For a comprehensive free tutorial on how to start your first online business, see www.HomeSweetBiz.com

Buying a Franchise

Buying a Franchise

is not for everyone. This guide will help you evaluate whether buying a franchise is right for you. It will help you understand your obligations as a franchise owner. Many people dream of owning and running their own business but are often let down by the reality of doing so. By purchasing a franchise, you often can sell goods and services that have instant name recognition and can obtain training and ongoing support to help you succeed. But be cautious. Like any investment, purchasing a franchise is not a guarantee of success. A franchise typically enables you, the investor or "franchisee," to operate a business. By paying a franchise fee, which may cost several thousand pounds, you are given a format or system developed by the company ("franchisor"), the right to use the franchisor's name for a limited time, and assistance. While buying a franchise may reduce your investment risk by enabling you to associate with an established company, it can be costly. You also may be required to relinquish significant control over your business, while taking on contractual obligations with the franchisor. Outlined below are some of the main points you need to consider before buying a franchise: - Franchise fee: Your initial franchise fee, which may be non-refundable, may cost several thousand to several hundred thousand pounds. - Royalty payments: You may have to pay the franchisor royalties based on a percentage of your weekly or monthly gross income. You often must pay royalties even if your outlet has not earned significant income during that time. In addition, royalties usually are paid for the right to use the franchisor's name. - Advertising fees: You may have to pay into an advertising fund. Some portion of the advertising fees may go for national advertising or to attract new franchise owners, but not necessarily to target your particular outlet. - Controls: To ensure uniformity, franchisors typically control how franchisees conduct business. These controls may significantly restrict your ability to exercise your own business judgment. - Terminations and Renewal: You can lose the right to your franchise if you breach the franchise contract. In addition, the franchise contract is for a limited time; there is no guarantee that you will be able to renew it. A franchisor can end your franchise agreement if, for example, you fail to pay royalties or abide by performance standards and sales restrictions. If your franchise is terminated, you may lose your investment. Franchise agreements typically run for 15 to 20 years. After that time, the franchisor may decline to renew your contract. Before investing in a particular franchise system, carefully consider how much money you have to invest, your abilities, and your goals.

Starting Own Business: The Four Main Ways

Starting Own Business: The Four Main Ways

The idea of being your own boss and running your own business excites you. The reasons might be you want to make more money, have more free time, have more control over your life, work from home, spend more time with family, or simply get out of rat race. Whatever reason you have, all the goals mentioned above can be achieved by building your own business. But you have to be ready to face all the challenges ahead. "Yes, I want to build a business but how do I start?" you ask. If you're really interested in building a business, there are four main ways that you can start one. 1. BUILD YOUR OWN BUSINESS. This is the most common way of building a business. You have a business idea and you have defined who your target market is. You can either setup your business by yourself or with partners. If you choose this method, everything is built from scratch. From setting up the company to looking for suppliers, from hiring people to managing accounts. I would say this is the hardest way of building a business. But it's the best to gain knowledge in starting a business. Once successful, you feel extremely satisfied because your business is your 'baby'. For additional resources on building your own business, goto http://www.toolkit.cch.com/ 2. BUY AN EXISTING BUSINESS. The other way of building your business is to buy an existing business. Some businesses are for sale and you can find them in the newspaper, trade magazines, or the Internet. The advantage of buying an existing business is you skip the startup phase of the business. Once you buy over the business, the business is already running. Things you must not overlook if you buy an existing business include the reason why existing owner is selling the business and to make sure that the business you're going to buy is in good financial condition. To achieve this, you can hire a business consultant to conduct a due diligence on the business. This way can prevent you from buying a business with problems swept under the carpet. A site that deals with buying and selling of businesses is http://www.bizbuysell.com/ 3. BUY A FRANCHISE BUSINESS. The third way is to buy a franchise business from franchisor. A good example of franchised business is McDonald's. When you buy a franchise business, you're buying into a business that is proven to be working and making money. A good franchise business will normally give you training on how to effectively run the business. You do not need to worry about the setting up of your outlet or office, advertising and promotions, equipment and other stuff you require to run the business. Everything is outlined clearly by your franchisor in their operating procedures. A franchised business is very useful for people who do not want to take the risk of building business from scratch. But the investment cost for a franchised business is high. To find out if you're suitable to run a franchise business, visit http://www.bison1.com/ 4. NETWORK MARKETING. Network marketing is also called multi-level marketing or MLM. You can join an MLM company and be part of the business by investing between $100 - $200. The startup fee is extremely low compared to other businesses and the risk is low. You earn commission by selling products to your customers. Normally, products sold by MLM companies are of high quality and value for money. They are able to do this because they sell products directly to consumers and they save millions of dollars in advertising. The most powerful part of an MLM business lies in the people. You can recruit people under you. The people under you are called downlines. When your downlines make sales, you're also entitled to a commission. It's like having a sales team under you. This is a great form of leverage. Before joining an MLM company, you need to do your own research about the company, products or services, financial stability of the company, commission structure, and so forth. To read about a success story of an MLM millionaire before the age of 30, goto http://www.financiallyrich.com/mlmsuccess.asp To find out more about MLM, you can visit: http://www.mlmknowhow.com

Grow Your B2B Small Business Without Marketing

Grow Your B2B Small Business Without Marketing

Summary: Want to grow your business-to-business small business without chasing after new clients? Expand with new value-added services that complement your existing offering. Find out how. If you have a business-to-business small business, some of your clients inevitably will go out of business, get bought out, undergo management shake-ups, or just get seduced by a new vendor. You have to grow your business just to stay in business. But how? • Undertake costly and time-consuming marketing and networking projects to get new clients to make up for the inevitable attrition. • Ask your existing clients to refer new clients. This is always a good idea, but it's not the fastest or most reliable way to get new business. You could wait months to see results. • Don't get new clients at all. Instead, expand your offerings to your existing clients. Choosing Your New B2B Small Business Offering: What to Look for Expanding your B2B offering might sound like a bit of a headache and that is a possibility. You have to select your expanded offering carefully. Here's what to look for: Complements existing offering In case you're tempted to branch out too far, keep these factors in mind: • Market. If your expanded offering complements your existing offering, your existing clients will provide a ready market. • Credibility. "Jack-of-all-trades, master-of-none:" it's a cliché, but people instinctively believe it. Which would you trust more: a shoemaker who also sells wristwatches or a shoemaker who also sells socks? • Skills. You will inevitably need new skills for your new offering. This includes the softer skills of selling and servicing the offering. The fewer skills you have to acquire, the smoother your rollout will be. Modest investment to start The only guaranteed way of minimizing your risk is to minimize your investment. Remember: investment doesn't just mean money, but also your time and energy. Choose an expanded offering that won't be all-consuming. Strong existing demand Face it: your small business already has its hands full with its existing business. You can't afford to break ground on something the world doesn't know about yet. Look for an unfulfilled demand on the part of your existing client base. Hypothetical Case Study: B2B Service Expansion Lisa is a virtual assistant who has expanded from data entry to helping her clients organize their internal records. But offshore companies are taking away record-keeping clients just as they did with data entry. Getting new record-keeping clients would be an uphill battle against offshoring. What does Lisa do? 1. Lisa gets into a few long telephone calls with her favorite clients. One client mentions his secretary is tired of handling payroll. Another says he is fed up with being put on hold with his current big-name payroll processing company. 2. Lisa researches payroll processing outsourcing. She finds it's a business where offshore companies have not made great inroads. Domestic businesses have not glutted the market, either. Traditionally, the technology needed to run a payroll process business was so expensive that only a few large firms could compete. The new software that allows any small business to offer payroll processing services has only been on the market a short time. Meanwhile, the cost of startup is only the cost of the software, plus a portion of her sales. Best of all, the only training she needs is to read up on a few payroll manuals, and do a test run with one or two of her most supportive clients. 3. Lisa gets a few of her clients on the phone and asks them point-blank if they would be interested in outsourcing their payroll processing to her. They sound interested. 4. Lisa finds a reputable payroll processing software company founded by someone with extensive experience in the field. She calls the company up and confirms that they have not sold a franchise in her area yet. 5. Within six months, Lisa has taken over the payroll processing of about one-fifth of her existing clients. Though she has lost two large clients to offshore virtual assistant services, her business income has grown by fifteen percent, since she has gotten more work without having to invest in marketing. Of course, Lisa's success took hard work. But she was able to maximize her effort by choosing an offering she could expand her business into easily. Payroll processing is one example of a value-added service that many B2B small businesses can transition into smoothly. But whatever new offering you go with, just make sure to choose your new offering carefully.

Home Based Franchising

Home Based Franchising

Is Home Based Franchising for you? Do you desire Home Business Ownership but cringe at the thought of starting from scratch? Possibly a Home based Franchise is your answer. A Franchise is a business in which "... the franchisor, the owner and developer of the franchise system licenses [you] franchisees to use trademarks, service marks, logos, or advertising owned or developed by the franchisor." (International Franchising Association, Franchising basics). With some franchise programs, the business operates using the Franchisor's brand name only. Other programs are less restrictive and allow for the usage of both a trade name in addition to the franchisor's brand name. Common to all franchise programs, the franchisee[ you] is responsible to pay the franchisor, advertising fees, initial fees, service fees, and or royalty fees. You are responsible for payment whether your business is profitable or not. Additionally, many franchisor's provide educational programs to franchisees before the inception of the business. Often times, they've done demographic studies and other studies to ensure that you have greater odds of returning a profit. Major Franchise Types • Unit Franchising Is the most simple type of franchise in which the Franchisor grants the franchisee the right to operate a single operation at a specified location or within a particular territory. • Area Development Franchising In accordance with a "development schedule", the franchisee agrees to establish a predetermined number of "unit franchises" within a particular territory. • Subfranchising/Master franchizing Is quite similar to Area Development Franchising with the major difference being that the franchisor grants the subfranchisor the option of opening the unit franchises herself or selling the the franchises to third parties. (Common with International franchising) • Affiliate Franchising This type of set up is typically used by an owner of an established business who decides to join/affiliate with a franchised chain. This allows for the benefit of the franchises brand. This is common with many real estate. • NonTraditional This type of set up is customized between the franchisor and the franchisee. Franchises are not the same as Dealerships and distributorships A dealership or distributorship differs from a franchise in that there is no FEE involved. Dealers purchase products usually from the manufacturer at wholesale prices. Note however, that a dealership can become a Franchise IF a FEE is paid to the franchisor AND the distributor is dependent upon the franchisor's pay structure. Considerations when buying a franchise • There's a benefit to purchasing a franchise that is well known • Will the franchisor provide ongoing education and support? • Were demographic studies performed? • How many of the franchises have closed operation? Why? • Have you STUDIED the franchiser's Comprehensive Disclosure Statement? It's required by Law that prospective Franchisee's are provided Comprehensive Disclosure, a copy of the franchisor's Standard Franchise Agreement, Audited statements, a list of the names of all of the Franchisees, as well as a copy of all documents that require the franchisees' signing. By law, each of the above must be provided at least 2 weeks prior to purchase date. • I've heard the saying, "if you buy a McDonald's, be prepared to eat burger's for breakfast lunch and dinner." In other words, your business requires commitment. Additional Sources of information •Success Magazine •International Franchise Association www.franchise.org •Franchise Sales Press *Get this magazine since it is known for its focus on franchise opportunities. Further, they perform regular interviews with both franchisees as well as with franchisors. •SBA Small Business Association •Brokerage firms and analysts Since stock information on A public company is useful. •Franchise Lawyer •Federal Trade Commission Public Reference Branch •UFOC "Uniform Franchise Offering circular -- the material that is provided by law, by the franchisor to the qualified franchisee. This is likely the most telling of all information gathered. •Attorney General's Office •BBB located in the city of the Franchisor's headquarters. •Your Banker should have access to the Dunn and Bradstreet Report on the particular Franchisor. •Contact the franchisor's franchisee's listed in UFOC. *** Prepare a list of relevant questions prior to calling. Purchasing a franchise usually equates to a reduction in investment risks since the" system" and Franchise name is established, training and ongoing support is provided, market research has been conducted... Conversely… franchise ownership can be costly. Consequently, it is critical that you investigate the franchise thoroughly prior to purchasing. There is a continual rise in the number of franchises. Obviously, there's a HUGE market for this method of business ownership. When approached methodically and practically, Franchise ownership can be Very lucrative and much simpler than beginning a business from the ground up. Be wise and ensure that you conduct sufficient research prior to committment. If you’ll need financial backing, then you will need to create a business plan.

So You Wannabe A Small Business Owner?

So You Wannabe A Small Business Owner?

Honest advice and practical suggestions for people who want to start a real world small business: Owning a real world small business can easily be your ticket out of the work a day world. You’ll still be working, but for yourself! This can, all at once, be gratifying, frightening, annoying and rewarding. The result of all your efforts depends more on you, then anything else. Even in the planning stages, it’s you that will have to make all the tough decisions and live with the consequences once your small business is up and running. If you’re an unyielding perfectionist, don’t quit your day job. Starting a business takes a lot more then just attention to detail, it requires flexibility, patience, self motivation and discipline. If that’s you, let’s move on to the next step. No matter where you live, buying, starting or planning a small business can be a big headache. Between the red tape created by tax laws and what seems like a never ending parade of forms and inspectors, the task can be daunting. And that’s just one small part of the process. Once you leap over all the financial and bureaucratic hurdles, there’s still that annoying little detail of actually being able to make a profit. Many small businesses fail because by the time the owner gets the shop or service up and running, they are already too financially, emotionally and physically exhausted to make it work. So what’s a future small business owner to do? If you’ve already got an idea and want to try and make it work, look for the path of least resistance to your goal. Start small. Many small businesses are unsuccessful because the owner fails to test market their idea on a smaller scale. I know someone who began a telemarketing business in his home. He started with a small contract to raise money for a charity, one phone and the local phone book. As the money began to trickle in, he dedicated a room in his house to the project, bought a couple of folding tables and chairs and added some additional phone lines and employees. All the while he did a lot of research on the telemarketing business, finding out what equipment was needed, desired and affordable. When it was time to expand again, he rented inexpensive storefront space in a strip mall that was down on it’s luck. As his company grew, he took over two more adjacent storefronts, computerized the whole operation and had a number of contracts going at the same time. If you can’t keep your overhead low, you will never show a reasonable profit. Nothing can knock the wind out of a person or family like the failure of a small business. That’s because many people try it the good old fashioned way. They max out their credit cards, take out another mortgage on the old homestead, borrow money from every friend or relative who ever owed them a favor and dump it all into what they are certain will be the next Starbucks. When things go bad from a starting point like that, there’s no place to go but down! Before you bet the farm on your dream, take a step back, examine your plan and consider the alternatives. Create a parachute for yourself. Don’t over borrow, keep a cash reserve to cover living expenses and personal bills for at least six months and pay off as many personal debts as possible before you start your business. If you’re already seriously in debt, it’s not a good time to start a business. A new business is unlikely to help you pay off large, existing debts. In many cases, it may temporary place you deeper in debt then you have ever been before. The type of small business you choose to open should be dictated by your present finances, not future situation or borrowing ability. You walk past that cute little store in the mall and say, “I could do that!” But while you’re looking at all the great stuff in the window, did you take the time to notice whether or not there were any customers in the store? If so, were they buying anything? If you’re planning to buy an established small business, make sure it’s not a lemon. And even if it’s not, jumping into an industry you have no first hand knowledge of can be a big mistake. It’s possible that the shop owner has a customer following, connections and supply sources that are unique to them. It may be a family operation. If it takes three or four experienced people working together to keep a store profitable, there is no way you will be able to step into those shoes without taking a gigantic risk. But what about Joe’s Burger Stand? I mean the guy seems to rake in the cash. And then there’s Betty’s Boutique. Her store always seems to be crowded. Aren’t these good bets? For Joe and Betty, they might be fine. But how much do you know about the burger or boutique business? If you have even the vaguest notion of trying your hand at an existing or brand new retail or food establishment, it’s going to cost you some money and that’s just the beginning! You’ll need the physical constitution of a horse, understanding friends or family and time to take the necessary management and food service certification courses at your local community college. A little knowledge may be dangerous, but none is deadly when it comes to the world of small business. It might surprise you to learn that the most successful small businesses started by first time owners are not retail stores or food shops. They are lawn and landscape services, movers, cleaning or maid services, onsite windshield replacement, painting, household repair and come to you or neighborhood minor auto repairs. All these businesses have low overheads, most are not expensive franchises and many require substantially less initial investments then retail establishments. They also tend to skirt many of the inspections and licenses needed by storefronts. The success of a service related business depends on how much competition there is, the skill level of those offering the service and how much people are willing to pay for it. To make a long story short, the best service related business to own is whatever service most people in your area want, need, can afford and can’t get. One of the big questions you need to ask yourself before investing in a new or established small business is, “How many headaches am I prepared to deal with?” Unless you are the luckiest person that ever lived, the odds are that you are going to be sued, robbed, vandalized, run afoul of an inspection or have a code violation at one time or another. If you not up to dealing with those sorts of hassles, then a storefront is not going to be the right choice for you. If a service type business doesn’t appeal to you either, there are still some interesting choices. If you can’t be the store, how about supplying it? Unique craft ideas and items are highly sought after. There are huge numbers of small consignment craft malls and stores springing up everywhere. Unique, one of a kind clothing products are also in demand. Decorated shirts, pants, dresses and bags move fast and fetch big bucks. Whatever the stores won’t buy, you can always try selling online. Tap into the market for used or bargain goods. Second hand or bargain furniture and clothing stores were the fastest growing and most successful storefront-style small businesses in 2002. Everyone needs furniture and clothes, but what happens when cash is tight and you can’t get credit? You go to second hand stores. Although it’s not something I would encourage given the neighborhood repercussions, I know of more then a few people that make a ton of extra money by having a garage sale twice a month. You can collect used clothing or buy discontinued and imperfect new clothing cheap by the box. Just adding a few studs or an appliqué to some used quality jeans or imperfect new items can make them worth ten or twenty times what you paid. Purchase used furniture at house or apartment sales, clean it up and resell for a nice profit. Buy discontinued furniture kits, put the stuff together and sell a five dollar set of book shelves for ten. Given the recent baby booms, quality new and used children’s clothing at cheap prices is always in demand and presents a good business opportunity. People are looking for bargains. If you can offer them new or used clothes for prices from a dollar to twenty five dollars, you’re likely to make some fast money. Almost any small business or service you start in the real world, can use the internet as a source of attracting customers. The biggest mistake that anyone with a service or business can make is to avoid having a website. Even if it’s just an online business card with contact information, that gives you access to many more people in your area who own computers, go online and are likely to look there before ever picking up a phone book. It’s also a time saver. If you offer a service like wedding, family or portrait photography, you can display some of your work on your website. This allows potential customers to take a look at your work, without taking up your time. If they like what they see, they’ll call or email. Posting your price list will eliminate having to deal with bargain hunters on the phone. You can visit my website at Bk Speaks for a list of places to get free websites and free site building help. Word of mouth is still the most powerful way of attracting customers. No matter what small business idea you plan to pursue, make sure that you are ready, willing and able to offer your customers a good deal and excellent service when they need it. People are so used to substandard service, that even when a barely competent person goes the extra mile for them, they sing that person’s praises to all their friends. Go the extra mile, charge prices that will bring them back, be totally honest and offer the kind of service you would like to receive. These are non-negotiable items when it comes to being a successful small business owner. Beware of ‘junk’ franchises. These are offerings made by companies that get rich from selling equipment to unwary people wanting a turnkey style, get rich quick small business. The worst of these are the used pay phone and cheap vending machine deals, but non-existent routes for food, prepaid phone cards and novelty items are also right up there. Companies run ads in Entrepreneurial magazines offering exclusive distributorships for rechargeable or prepaid phone cards, cheap candy, junk novelties or out of date CDs right in your own area. They claim to offer routes with established businesses ready to buy their products. That actually means they give you exclusive rights to try and sell their stuff to any small stores in your area that will buy. The vast majority will not, and don‘t be surprised if your ‘exclusive territory‘ is just a few business blocks wide! Meanwhile, your stuck with a contractual commitment to buy a certain number of items from the company each month as part of your franchise. Many of these companies will insist on a prepayment of three to six months worth of products before they will award you the franchise, with a need to buy more each month allowing for non-existent growth. If you want to invest in a small, turnkey style franchise like cleaning, resurfacing, weight loss schemes, vitamin products or most anything, try and link what you already do or the resources you already have to your future business. If you’re a Realtor, for example, a carpet or house cleaning business might be a natural extension of your profession. People selling or renting a home need it cleaned. If you’re a fixit person, you can offer your customers name brand tile or carpet cleaning. Franchise pavement or roof resurfacing and deck resealing is also a plus that can add to your income. Auto mechanics working for themselves can make some nice extra bucks by offering windshield repairs, tinting or auto painting. Most small franchises should be thought of as an extra income with a growth opportunity. Before you call that 800 number for franchise information or visit your local business broker, spend a lot of time looking in the yellow pages and visiting some small businesses in your area. If you see a lot of empty storefronts, that will tell you that normal retail doesn’t work well there. What services are most needed? How much are they charging and do they seem to be operating at a profit? If you are still a bit stumped or concerned, try a business consultant. That’s one of the services that I offer. A good business consultant is not going to charge you an arm and a leg, but they will point in directions you may not of thought of and may need to go to give you a better shot at success.

What If A Franchise Was Run Like a Typical Home Based Business and Residual Income?

What If A Franchise Was Run Like a Typical Home Based Business and Residual Income?

Have you ever wondered how a Franchise would do if run like a typical home business? This might give you some idea. There is something that is long as I live I will never understand. Well I suppose actually there are several things, however right now this is business focused. That something is residual income. I just can’t for the life of me understand how someone can go through life and just continue to work at a job with no plan for residual income. I suppose many people just can’t comprehend that they can have money coming into them while they aren’t working. There are a number of ways to get residual income like writing a book, or a song. However, these are tough occupations to succeed at. One of the very best ways to have residual income is good home business in Network Marketing. Network marketing has been criticized, poked fun of, ridiculed and worse. But it’s here to stay and it’s popularity is growing. Often called the poor man’s franchise, with the right company, product and timing a person can actually do much better than a franchise without the expense and headaches that so often accompany a franchise. Think about this, what would you say is the best most successful stable franchise today? Several come to mind but no one can argue that McDonalds wouldn’t be at or near the top of most lists. So what kind of point am I making here. Simply this, many people argue that home businesses, especially in the area of network marketing don’t work. Well gee whiz if a McDonalds was run the same way the majority of people work their home business the MCDonalds would all go out of business. Here is how the typical MCDonalds would be run if run by the typical unsuccessful home businessperson. When it’s open – I stress the word open, (more on this) it would probably be open less than 1 hour a day. The workers would be sitting around pretending to be working, but accomplishing very little. And then suddenly at a whim the store would abruptly close, perhaps to open again in a few days or even a few weeks. No schedule or hours of operation would be posted when the store was going to be open. After reopening after an absence the workers would just be getting back in the groove of working again when a half hour later the store would close because no customers were coming in. It seemed not knowing when the store would be open was keeping them away – imagine that. Well after a month or so of no customers the store is closed with the owner muttering under his breath. “These franchise things just don’t work!” Then he starts telling all his friends, “I tried one of those franchise things once. They just don’t work!” This example is easy to see and yet we all wonder why a home business fails when conducted in this same manner. What is great about a home business versus a traditional business is you don’t have to start each day at 8:00, you have a lot of flexibility. However, you don’t have the flexibility not to work for days and weeks at a stretch and engage in poor work habits when you decide to work. Of course not all the blame can be put on the new home business person, there are some bad programs out there and timing can be bad with others. Of course wrong expectations can mislead many people into discouragement. What do we mean here. Well look at it this way. Very few people would argue that Microsoft would be a poor stock investment today. However, there are people that hype their particular company that has passed it's growth spurt, that you can get rich and retire with their company. This is the same as a dishonest stock broker pushing Microsoft from the angle of it getting ready to explode in value as they will have double digit growth each month for the next 5 years. Hey in the early 80’s Microsoft had this type of growth, just don't expect the growth to continue forever. The point is there are always new Microsoft’s in the Business and Home Business markets. It’s knowing how to find them that is key. They are out there, home businesses that are rock solid and will experience this type of explosive growth over the next 5 years.