7 Crucial Things to Consider Before Starting an Online Business

After all, there is nothing worse than investing your time and hard earned dollars to find that six months down the road, your home business has gone nowhere and another Monday rolls around and back to work you go.

With that in mind, here is a list of what to look for when evaluating a home business.

1. Find a business that has a unique product and is in high demand. Does the world really need another vitamin distributor? Also, make sure that you separate the product from the business opportunity. Ask yourself, “would this product benefit me” or “would I want this” if it did not have a business opportunity attached to it.

2. A lucrative compensation plan – That means large upfront commissions and generous backend residuals. Let’s face it, when you got into the business you did so to make money. Up front commissions of $100 will not get it done and will not provide an incentive to others to join your team. Also, when people see you making money, they are going to want to do what you do. Eventually this will allow you to build a team of successful online marketers. Look for a company that pays generous back end residuals. You have worked hard to build your team and you deserve to be able to step back and enjoy the fruits of your success.

3. A “duplicatable” marketing system – you may have a great product, but if you have no way to market it, you are dead in the water before you get start. Having a marketing system that can be duplicated is KEY to your business success. Make sure you evaluate their marketing strategies. (Do you really want to be doing hotel meetings?) Right now there are 1.4 billion people with access to the internet. Does the company offer marketing strategies to take advantage of that?

4. Company management – There can be nothing worse than spending two years building your business and then watch the owners sail away to an island with the company profits. Find a business with a track record and high integrity. See the owners as your business partners.

5. Global expansion – Make sure the company has room to grow. To use the earlier example, do nutritional products really have room to grow? Look for products that have the least government red tape and are marketed globally.

6. Does your company give back? Yes, we understand that it’s about the money. But a company should have a sense of social responsibility and contribute to the betterment of our world.

7. Support and Training Network – Most companies fall short in this area. Can you get help with marketing? Do they provide training regarding their product line? How about an online forum? Will they challenge you to grow personally as well as financially?

Take these to heart and use as your personal guide when evaluating business opportunities.

Over 40 million people will be looking for a home based business in the next 2-5 years. (Forbes Magazine) Wouldn’t it make sense to position yourself and your business as a leader in this industry and help them take advantage of what Donald Trump and Robert Kiyosaki have called the new business model?

Preparing Your Business For Sale – How to Cash Out

Savvy business owners know that to run a successful company you need to be a great marketer, control your costs and deliver unbelievable customer service. However, when it comes time to sell your business, it’s important to plan a strategy that will leave you and your company in a great position. Creating and implementing an exit strategy for your business can provide you with a lot less stress and peace of mind knowing that when the time comes to sell, you’ll be ready.

The sale of your business should be a planned process to yield you the highest possible price for the company; not a knee-jerk sale based on uncontrollable circumstances like health problems, financial issues or an untimely death.

Developing a successful exit plan should begin well ahead of your targeted exit date (I recommend at least three years). Here are some things to consider as you get started:

Get your personal financial picture in order.
As a future seller, be sure that you have adequate protection with life insurance, disability insurance and even business interruption insurance to protect your company in the event that a disaster occurs.

I also suggest meeting with a certified financial planner. Often a seller’s largest asset is their business. If an owner is forced to sell after several months or years of minimal profitability, they won’t be able to sell for the maximum price and may not be able to exit with the cash they had anticipated. A planner may recommend building up cash reserves or acquiring real estate to balance out your portfolio.

Understand what buyers are buying.
Most business buyers are first and foremost buying cash flow or net profits. Demonstrate the financial strength of your business by supplying them with (at minimum) 3 years of profit and loss statements, 3 years of federal tax returns, equipment list, inventory list and a copy of the facilities lease.

Equally important is the building lease. When a business changes hands, an important element for a new buyer is to be able to secure a long-term lease. Lease negotiation can make or break a transaction so it is best to know the landlords intentions as soon as you make the decision to sell.

I also recommend systematizing your business by creating an operating manual for each area of your company. Standard operating procedures provide a buyer with an existing system for success and will allow you to easily transfer information to the new owner.

What’s it worth?
Now that you understand what a buyer wants, you need to determine what you as the seller want. Every seller must ask themselves, “How much cash do I want to receive at the closing?” or “What is my premium price?”

A key component to achieve the highest price is for the seller to offer to carry a promissory note, making the seller the banker for a certain portion of the purchase price. By offering to carry a note, the seller demonstrates to the buyer that he or she believes in the business and that they will remain financially invested in the success of the company after the sale.

When pricing the business for sale, the more reasonably the business is priced, the faster the business will sell. Be sure to enlist a certified business appraiser or an experienced business broker to provide you with an opinion of value. By adding the value back to the financial statement, a buyer will have a better idea of how much income he or she can expect to receive when they take over the company.

After receiving a valuation of your company, compare the current value of your business to your proposed exit date and premium price expectations. Is your premium price realistic? Is the time frame realistic to reach the necessary sales levels to achieve that price? In order to reach your goals, all elements must come together.

Getting your maximum price.
If you determine that you will not be able to achieve your desired price, you must begin to implement strategies for change as soon as possible. Start with a simple SWOT analysis looking at the strengths, weaknesses, opportunities and threats of your company. Necessary strategies might include creating a marketing plan to increase your sales or a cost containment strategy to reduce your expenses.

As a business owner, you deserve the highest possible price for your company. Plan your exit strategy with the same amount of thought and detail that you plan your customer service strategy or craft your marketing plan. After all, all business owners will exit their business whether they plan for it or not, and a good plan can be the difference between the “retirement” of your dreams or just a long vacation.

Home Based Business – Home Business Or Business That Survives Any Economy

Home business is one of the growing segments in today’s economy. The term home business, home based business has been searched well over 1,800,000,000 times on Google in the last thirty days. Why are people looking to start a home business or any business in this economy. The reason is simple. More and more people are realizing that they are better off working for themselves, being in control of their life than giving the control of their life to their boss and creating wealth and a financial stability around their families is possible only when they work for themselves. Home business is the best way to have quality and quantity life.

When you start searching for that extra income to support your family be clear as to if you just want a job or business? If you choose business do you want traditional business or a home business? The difference between a traditional business and home business are as follows.

Traditional business have a lot of start up cost say anywhere from $50,000 to well over a million. Whereas a home business could cost anywhere from $50 to $30,000. The time on return for investment in a traditional business is about five years whereas in home business it varies from couple of months to a year. Traditional business will require overhead, other additional expenses such rent, employees, marketing etc., whereas a home business requires just marketing expense which can vary from couple of hundred dollars to probably $1000 per month. If you are spending $1000 in marketing for your current home business you are spending way too much. You are basically buying yourself a job with traditional business where you loose your time freedom. One can never put a price on time with your family and kids. With a home based business yes you work from home but you have an added advantage of reducing your overhead, making money and spending time with your family on your terms. Personal development is a must if you are looking to start any business and be successful in it. Personal Development industry is economy proof as more businesses and people turn to it for bringing about success and positive change in a bad or a good economy.

So by far if you are looking to creating wealth and financial stability home business is the way to go and pay yourself what you are really worth rather than getting paid .001% of the profit your employer is making by having you as an employee. Why don’t you pay yourself what you are worth and build a wall of financial stability around your family.