What's the Best Business to Own?

Every now and then I put on my thinking hat and do a bit of day dreaming. I would always start of by asking a question, no matter how ludicrous the question may be.

One such question I asked was "Whats the best business to own?" Or, "if a good business opportunity came across our desk one day, what kind of business would it be?"

The following dot point summary is what I came up with and the reasons why:-

1. Cash business

- don't want to have debtors

- don't want to chase customers for payment

- businesses go bankrupt because customers don't pay when they are supposed to, yet creditors demand payment immediately

- want to receive income in cash

- want the ability to pay creditors on terms (ie: 30, 60, 90 days)

- great on cashflow

2. A ready market & strong demand for your products or services

- Having a ready market and strong demand for products and services means you should have a Regular and Steady Income which require little or no marketing

- Theoretically you can "setup a shop and sit and let money come to you

- Running a business is hard enough, you don't want the added stress of continually worrying about getting customers to cover overhead costs, etc

- Any extra marketing that you do choose to do isn't driven by survival but for growth

- Making money should be simple and easy. There is a saying "when you want to climb a mountain, do it on a sunny day, not a rainy day".

3. Expandable

- This is the ability for a business owner to capitalise on the existing infrastructure of the current to generate additional income

- This could be through "spin off businesses" or "marketing innovation"

- This concept of expandability is based on a quote attributed to Albert Einstein "Insanity: doing the same thing over and over again and expecting different results".

- If a business owner inspires to achieve greater results from the business, he or she will need to do something different.

- Likewise, if a business wants to achieve a better result than other businesses in the same industry, they need to something that the industry as a whole isn't doing

- The marketing guru Dan Kennedy regularly talks about how a business can create simple marketing breakthroughs by "borrowing ideas from a different industry"

- The ultimate responsibility of a business owner is to control the marketing function

4. Not restricted by specialised skills & training

- Tongue in cheek "a business which even a monkey can do"

- When I reminise back in the days when I worked in McDonalds, I now appreciate the SYSTEM which they had developed. They had a perfect system whereby at the crux of it all you had a business owner who employs an 18 year old who manages a group 15 year olds who has no prior experience in making hamburgers!

- A business which you can only do if you have specialised training or 20 yrs worth of experience is a very difficult business to grow. It's very difficult to duplicate yourself. You just run out of hours in a day.

- If you want to expand you need to hire and train employees to run the business

5. Simple operations & systems

- A system for a business owner is ultimately the ability to employ staff to replace yourself

- World renowned business guru & author Michael Gerber coined the concept of "working on the business not in the business"

- A simple system is how you achieve this

6. Owners Profit

- Money is important

- Not only must the business be able to meet your current needs but there should be enough of it to reinvest in the business to expand and grow

7. Must be creating an asset

- To laymen, an asset is something which has a value and you can sell

- For many business owners, you build a business which you ultimately want to sell to someone for a profit

- The worst business to be in is one which doesn't have any goodwill, or that goodwill is inherently connected to the individual owner. Once the owner leaves, the customers or goodwill leaves to.

- Examples of common business assets are:-

Plant & Equipment

Licenses

A customer database

A prominent brand

Loyal customers who are attracted to your brand

A unique marketing system

Advertising mechanism

A Distribution channel

Regular and recurring revenue (ie: management fees, rental, subscriptions)

The list goes on and on

8. Utilise leverage to grow and succeed

- Leverage is the ability to achieve more with little or less effort

- A businesses which can be easily leveraged can be grown faster than one which can't

- Common forms of leverage are:-

Leverage money & cash flow

Leverage time

Leverage skills & resources

Leverage marketing

Leverage a system

9. Can EASILY obtain bank funding

Article Source: http://EzineArticles.com/7001151

Small Businesses Using Online Software to Manage Their Business

Businesses nowadays are very much different from what businesses have been some twenty to fifty years ago. The main reason behind this is the improvement of technology through time. Businesses have been surfing along the tide of improvement of the technology making the business more successful as time goes on. Business software has increased significantly through the years leading to further efficiency and integration. These benefits are only possible nowadays - these modern days - through the advancement of computers and calculating software.

In today's modern world, efficiency and rapidity of work is a must. They must be always paramount among other things that are the reason why, the period of office runners who are responsible to pass information from one desk to another are long gone. They have been taken over by much more efficient and quick business software that can also perform similar tasks.

Also, the period of stacks over stacks of papers filed in the desks is long gone and has been also replaced by business software that can file your works, documents and information in memory without having hassles in having and printing of paper files. This software can now transfer your files and information from one place to another in a much shorter time than snail mails can do.

Benefits of Online Software

Here are some things that online software can contribute to small business to make things easier to the business and the owner:

1. Online software has increased the integration and efficiency of the small business

2. Online software offers great rapidity and efficiency to the speed of which the tasks are done.

3. Online software leads to faster transfer of information from one desk/department to another.

4. Online software also offers full integrations of the internal systems.

5. Online software also offers good communication that can result to a better business.

6. Online software can help run the business smoother and give a better service to its customers.

7. Online software and business software can help managers study all their departments simultaneously, checking ledgers and payrolls whilst keeping tracks of the employees bills and expenses in materials.

8. Online software can help improve client relationships especially to those who want to be treated individually. They can check the likes and dislikes of each client, check and save their information and know their demands in just a matter of one click. Today, clients are of greater important that is why they do their best to maintain their clients and make them feel that they are valued and appreciated.

9. Online software and business software can now also have internet access that can make tasks be done easier, transfer files faster and connect with clients no matter how great the distance may be.

10. Online and business software can secure your businesses in a safe place leaving you feel relieved about the security of your business.

Business before the Computers and Excel

Have you been wondering how business manage over the years before the super computers started to sprout out including the much widely used and preferred excel? Have you been wondering how they can transfer files and communicate to their clients locally and internationally? Have you been wondering how they file all their paper works, files and tasks and do them accordingly and without delay?

If you are taking that it's too slow like and may take years, (yeah may be I'm exaggerating, let's make it days or weeks), well, your correct. You're absolutely correct. At that time, information is transferred from one place to another through mail that is why it may take weeks before you can receive it. You need to pass the information as early as you can before it is needed so that you can do work and submit paper works without delay.

Before computers, the machines that businesses used mostly are the typewriters and the calculators. Even the calculators at that time are not that advance as what the calculators today can do. Everything that needs to be done is done manually, done by hand. Each computations and written outputs are done by hand with pen and paper. All are hand-written like sales receipts. The spreadsheet, done today in excel, are once done on paper. The accounting records are once kept on ledger books. They once have these elaborate filing systems that keeps the records and inventories they have achieved.

Even before the era of typewriters, all business letters have to be hand-written. Those days are so slow and hard that every staff and employees should be meticulous in each and every task they are working. Everything that should be done requires more effort. Papers records are laboriously and meticulously files and creates. They are less accurate and less effective than what computer system's today can offer.

The online tools for business

Different online tools have been spreading nowadays like SaaS. SaaS or the Software as a Service is a kind of software distribution model where applications are presented by a vendor or a service provider. This software offers many benefits to online businesses by being user-friendly software giving easier administration, having automatic updates on the latest feature of the software; the software is also compatible to any users, has easier collaboration and is globally accessible.

Not only is SaaS is the only software used for business. There are also other online tools and sites such as goDaddy that offers fast and secure email contacts, advanced 4th-grade generation hosting, helps entrepreneurs to do business in the web and many more.

There is also where employees can get up to 25GB for email storage, can, make instant messages and chat with their clients, secures your data and is highly reliable and is easier to operate.

Aside from those two, there are also sites that would be of great help to your business like the dropbox, plumsale, mailchip, etc. They give you benefits in their own ways. You just have to explore and see what fits for your business.

Under The Hood Checkup For Starting A New Business

Business Check Ups When Starting A Business

A good business check for beginning a new business should begin with a business plan. A business plan is simply a written map on how you will go about starting and running your business. If it is not an online business you'll need to choose a location and ascertain if the businesses comply with zoning and licensing laws. You'll need to apply for local and state permits or licenses if required.

The second step is financing your business startup. You'll need startup capital, loans, or venture capital to get started.

Enterprise Structures

You'll need to determine the legal structure of your company. You're choice of ownership choices range from sole proprietor, partnership, limited liability company (LLC), S corporation or corporation, to a non-profit.

A partnership is easy to organize and can have greater financial strength by combining managerial skills and having another set of fresh judgments for running the business which can be valuable.

A Limited Liability Company (LLC ) may be treated as a sole proprietorship or a partnership or even a corporation. The advantages are that the owners have a limited personal liability for debts incurred by the actions of the LLC and enjoy the flexibility and benefits of flow through taxation.

An S Corporations is a small business corporation whose shareholders elect ot have corporate income taxed like a partnership. Whereas a corporation is treated as a legal entity. The stockholders have a limited liability and transfer of ownership is easy. It is easier to expand and raise capital and very adaptable to both small and large businesses. The life of the corporation is perpetual. The big disadvantage is that it is taxed twice and is more expensive and difficult to organize.

Next you'll need to register with state and get tax ID number. Applying for federal and state ID numbers and other legalities are next on the list. That may possibly consist of registering a DBA (doing business as) if you use suffix's as "& CO" or "& Associates" or anything that denotes additional organization owners or if the name is different than that the S corporation, corporation or LLC, non-profit name.

If you are a corporation, LLC or any business activity for that matter, you'll need an EIN number. The EIN number is a federal tax identification number and is also known as the Employer Tax Id and Form SS-4.

Just as you need to register an EIN federal number, you'll also need to register with your state's revenue agency. This is because they want to tax you and register you for any licensing, permits and include you for income tax withholding as well as sales and any possible use tax permits.

You'll need to obtain workers' compensation, unemployment and disability insurance. This is especially mandatory if you will have others in your employ. The only possible exception is a solely owned and run internet market, stock trading from home and other work from home businesses.

If you sell products, you may be required to collect sales taxes and will need a Sales Tax Permit. Be sure to get familiar with state and local taxes and registration requirements.

Should you sell taxable items you'll want state sales tax ID numbers. In case you hire employees you'll need to have both federal employer tax identification quantity as well as a state employer tax identification in addition to your basic insurance protection.

Bookkeeping, Record Keeping Practices

Perhaps the most important aspect of a company is your bookkeeping and maintaining accurate records so you know where you stand. This is accomplished by keeping separate bank and checking accounts and check books. Keeping records, setting up accounting procedures so that you comply with making regular income tax payments is essential.

Never mingle personal with organizational expenses or you'll get in trouble with the IRS. Keep and maintain accessible records in case of an audit. The IRS has recruited new armies of agents who especially scrutinize excessive travel expenses as well as dining out expenses.

Keeping good organized records can help you save money. Most business owners do not want to spend time keeping records and would rather spend time running their business unless they are a professional bookkeeper. Keeping track of business expenses on a systematic basis is tax deductable. These are the common expenses in conduction your trade or business.

Good records will help you monitor your enterprise. It will help you track receipts if any questions arise from customers. Purchases, sales, payroll and supporting documents for any deductions on tax matters need to be kept. Your record keeping should clearly document income and expenses and you'll need to keep them as long as they are needed. Employment tax records need to be kept for at least four years.

The burden of proof is on you. You are presumed guilty before you begin. It is your responsibility to prove all bookkeeping entries, deductions and statements on your tax return. You have the burden to prove any expenses that you plan to deduct. Good record keeping avoids headaches at tax time. If you use your home office as a business you can deduct mortgage interest, insurance, utilities, repairs, depreciation or rent. Also you can deduct travel using public transportation, maintain your car, meals, lodging and other related expense. These must be ordinary expenses, provable and necessary.

A simple single entry bookkeeping is the simplest to keep. With this system you have a record of daily and monthly business income and expenses. It will show sufficient detail for tax purposes and the focus is on the business's profit and loss statement and not on its balance sheet.

After you set up the type of bookkeeping system you want, you'll next need to choose an accounting method. Is it going to be a cash method or accrual method? A cash method reports all income in the year you receive it. You'll deduct expenses only in the tax year in which you pay your taxes. With an accrual method you'll report income in the year you earn it regardless of when you receive the payment. As such you'll deduct expenses in the tax year you incur them regardless of when you actually pay those expenses. If you have the type of business where your inventory is for sale to customers, you'll generally use an accrual method for your sales.

Some business accounting statement can be helpful. An Income Statement is an overview of your company's revenues, costs and profitability. That and a Cash Flow Analysis will help you tell how well your business is doing. A Cash Flow Analysis gives a detailed monthly account on how money flows into and out of your business. Subtracting your monthly expenses from your receipts gives you a good gauge of the overall direction of your business direction.

When you start your business checking you can obtained them from your financial institutional banks as well as online. Ordering and reordering checks from bank is not the most economical way of doing business since banks markup their checks costs and it will cost you twice as much as if you ordered online. It is an unnecessary additional expense to any enterprise. Purchasing smart is a virtue and should be pursued in all matters big and small. Purchasing online is economical and quantity discounts and special deals are always available.

How to Sell a Business

How to sell a business? That simple question explodes with so many variables. Do you want to sell to family or a friend? Do you want to sell today or in a month or sometime 'soon' with no firm date on when 'soon' will start or finish. What about the question that relates to 'how to sell a business' and that is 'how much do you expect or want for your business?' Do you want all cash up front or are you willing to carry some of the finance? So that simple question, 'how to sell a business' all of a sudden comes with a few more complications. The answer to the question of 'how to sell a business' reminds me of that expression, 'it is like peeling an onion.'

If I was to answer the question, how to sell a business using the skills and techniques I have learned from being a business broker I would answer as follows.

The most important first step is to understand the motivation of the seller and specifically their timetable including when they want to start to sell their business. Selling a business is not a quick task that can be done in a week or two. It generally takes between 6 to 12 months to sell a business with the average sale time 8 months, if it sells. The most surprising piece of data is that only 25% of businesses actually sell, that is, to put it bluntly, 75% of businesses close down.

Once the motivation and timeline of the seller is clear the next most important step is to get the seller and the business ready for sale. Too many sellers approach the selling of their business very timidly with no clear direction and not embracing the process. Selling a business is not an easy journey as it touches a myriad of decisions that are part of owning and operating a business. This includes the main decision making areas around operations, finance, accounting as well as management and other sensitive areas of the business but also the raw emotions of the seller/owner including their fear of leaving the business, whether customers will continue to come, the employees will stay and if the legacy of the business will continue and more.

Once there is clarity on the above two steps, it is now time to drill down into the details of the business and understand specifically what is for sale. Too many sellers go to market to sell the business but do not have the necessary documents ready and just as importantly, fail to get a professional review to make sure what the documents say are up to date and accurate. There is an adage in the business brokering industry that 'time kills deals.' Buyers do not like surprises or matters outside their control. Initially they may have some patience but waiting too long creates a fear they are missing out on other opportunities or this is a sign that this isn't the right business for them and that they should move on and look at other opportunities. The window of time a buyer is prepared to look and buy a business is very small so even a slight delay can make the difference between buying and not buying the business.

When I am selling a business, at a minimum I get from the seller or put together myself the following set of documents. Each transaction is different so there may be other documents to organize but a basic set of documents includes the last 3 years Profit and Loss Statements, Tax Returns and Balance Sheets. It also includes a copy of the lease, a list of fixtures, furniture and equipment, and a Sellers Disclosure statement that explains to a buyer the conditions the business needs to successfully operate including regulatory requirements such as licenses, permits and other critical information they need to know or take to ensure the business will operate legally under a new owner.

Part of my approach is also to create two important documents. The first is a Blind Executive Summary of the business that is sent to an inquiring buyer so they get a high level overview of the business and decide if they wish to keep moving forward with their inquiry to buy the business. If the buyer wants more information, at that point they complete and sign a Non Disclosure Agreement and I then present a Confidential Business Review or Confidential Business Summary which has more in depth and commercially sensitive information about the business. With the above in place, after reviewing these documents and speaking with the seller they should be able to make an offer.

Once the offer is negotiated and accepted by both parties, the transaction moves into due diligence where the buyer is available to verify and validate the representations of the seller and get access to all the sensitive documents they need that I have on a secure password protected website.

This part of the transaction also requires keeping things moving forward with items such as obtaining a new lease or assigning the current lease. Additionally, if the buyer is organizing third party finance such as an SBA loan, the buyer also needs to stay on top of this process to prevent the deal collapsing.

The final step is to move into escrow so monies payable to the various parties in or connected to the transaction are handled and the legal title for the business and its assets correctly change hands.

Selling a business is not a sprint and at different times in the transaction can appear more like a marathon. Another piece that I have begun to accept as a truism is that most transactions die at least three times before they close. That is, at different points in the transaction the buyer gets cold feet or it's the sellers turn because things are not going the way each part expects. It is what it is.

Andrew is a 5-time business owner that helps entrepreneurs exit or enter business ownership. His services include helping owners sell and/or buyers purchase an existing business or consult on purchasing a franchise. He also provides certified machinery and equipment appraisals and business valuations.

How To Choose What Home Business To Start

There are a lot of people who are interested in starting a home business. You do not have to choose just one idea, as a matter of fact, it is better to have various streams of income.

Here at home business prospects, we are always looking for fresh ideas and ways to support your home business.

When making the decision to start a home business, it's quite possible that you are faced with two or more choices of possible home businesses to start. However, there are a few important factors you can think about before starting any home business.

4 Factors To Assist You When Making The Decision:

1. Your Passion.

What is your passion? Sometimes the thing that you love doing most could be the door to your destiny. What makes you look forward to a new day? If these are your reasons for starting and building your home business, chances are that you would persist doing the business even when the going gets tough. That's why it is important to work on something you love it makes you feel comfortable.

2. The Product's Demand.

Focus on a niche where demand is well-built to guarantee the profitability of your home business. Find a market with products that sell well and pay well. Keep in mind that when the demand for the product is high, the better for your business.

3. The Product's Profitability.

Select a home business that is liable to earn a larger percentage of profits per sale. Whatever the home business you decide on, you can start by charging fair prices and quality products. With excellent customer service, your customers will remain loyal, then consider raising prices slightly, hence making profits. As a home business owner, the higher the traffic, the higher the profits and so the better for your business.

4. Compensation

There are a few questions that you must ask yourself:

i) what return do you look forward to from your home business

ii) How long will it take before you start earning

iii) Is it a long term or a short term investment

14 Lessons You Should Learn As A Home Business Owner

At times starting a home business can be challenging. Like any other business, it requires hard work to succeed.

Here are lessons that can help you to start your own home based business:

Believe and Dream big. There is magic in dreaming big. The most successful entrepreneurs dream big. Believe in yourself and in your home business idea. Dream of how your home business will not only transform your life, but change the world. Work it until it is done right.

Dream and Act. Dreaming is one thing and acting on that dream is another thing. Make sure that you are working every day to achieve your dream. If you dream and you do not act then that would most likely be a wasted dream.

Goals. You need to set clear goals for your business. Where do you see your business in a year or in three years - how do you plan to reach it?

Believe in what you are doing. Believe what your business can do, and how it can transform the lives of your target market. BELIEVE you can succeed and you WILL.

Failing is a staircase to success. No matter how hard you try to do what you think is best, mistakes will always come along. The good thing is that you learn from your mistakes and you can change your idea, or use a different approach altogether. Mistakes are simple steps in the journey to success. Success doesn't demand a price; every step forward pays a dividend.

To be a success you have to be informed. Every result you get is tied to the level of information you posses. Wonderful profiting is a result of quality information. Get informed through books, journals, web and many more.

Understand your customers. Customers are the backbone of your business. Treat them with respect. Your customers' opinions will help you in knowing what's working and what's not working in your business. Responding to their queries makes them feel important.

Get ready to take chances. Entrepreneurship comes along with many challenges. Do not be afraid to take chances. It feels good to realize that you've accomplished something that you never expected you could. Believe you can surpass and you will go beyond.

Networking. This is fundamental, especially when you are just getting started. You just never know who you'll meet and what impact they may have on your business. Involve yourself in Forums and social media sites.

Time. Be your own boss. Time is precious, discard the habit of procrastination. Make sure you accomplish the most important tasks of the day. Thus allowing you some free time to rest.

Accept critics. You can not give pleasure to everybody, so be prepared to receive criticisms. Accept criticisms and always keep an open mind. Use all feedback to your advantage.

Research your competitors. Research products that are similar to yours and then make every effort to make yours better.

Get ready to sacrifice. Entrepreneurship requires full commitment. Working on a home business may mean personal sacrifices on your part - e.g. less activities with friends, less sleep.

Avoid dream killers. You can probably have a mentor. Only focus on people who will encourage you and inspire you to go forward.

6 Ways To Shun Away From Home Business Scams

Job seekers need to be really careful when searching for home businesses. Don't allow yourself to get fooled by work at home scams... Be smart!!

NEVER pay for the opportunity to work! No genuine company charges employees a fee for a job. However, with home business opportunity sometimes you will be required to pay someone to coach you how to run your own home business. You may also need start-up costs to cover investments, materials, franchises, or other items.

Get rich quick. You will never find free rides in this life. Home business is just like any other business - it requires hard work, good products or services, and also time to make profit. If it sounds too good to be true, it is.

Do not show desperation. Even if you are in financial difficulties, act calmly and professionally, just like you would in a real world job search. Don't post messages on forums saying that you are desperate to find work from home. Desperation brings all of the scammers out of the woodwork, and you'll be flooded with false offers.

Practice patience. Be patient and be ready to spend a lot of time weeding through scams and junk listings to get to legit openings.

High-pressure tactics. Scammers love using pressure tactics to suck you in. If you're given a time-limited offer, more often than not there is always a reason. Do not be under pressure to do anything, so that you don't loose money to schemes that never materialize.

Your banking information is personal. If any company asks you to verify information in an email it is a scam. You should only accept online payments through systems like PayPal or Alertpay. This way your personal account information is not in the hands of an unfamiliar party. Incase of a phone call hang up and call the company directly so you know you are actually talking to a company representative.