Laying Your Business Foundation – Part One

The current economy is driving more people to start their own business and rightfully so. Business ownership signifies that you have taken the reins of your own destiny. The unfortunate aspect of this decision is that many people are not prepared for what it takes to be a business owner. You’ve read the articles through media blasts and other sound bits. Start your business in as little as three days. Earn more by working for yourself. Take control of your life by working for yourself. Spend more time with your family and friends. The list goes on and on and on. Although there is a great deal of truth to this but let’s be honest. Business ownership is not as glamorous as the media portray it to be. If you decide to take the plunge into business ownership I personally guarantee you the rewards far outweigh the temporary setbacks, delays and pitfalls. I’ve been a successful business owner since 1987 and believe me if I would have known about “how to” do anything in business Warren Buffet and I would be entrepreneurs co-mingling. I learned through “trial and error” which is very time-consuming and incredibly expensive. Thankfully, your business will not start out dysfunctional. Listen, learn and duplicate what is already established and functioning properly.

In this article I will show you “how to” Lay Your Business Foundation.

  1. Decide if you want to be in business. This will shave off 10 seconds of your precious time within a 24-hour window. This is very important because most people in business missed this point. They started doing something without thinking or planning and one day all the pieces did not fit into the puzzle. And those missing pieces goes back to the drawing board called decision. Our thoughts dictate the outcome. Think about it, did you start reading this article out of boredom your where you thinking about starting a business? I think the latter answer is correct or you will probably be somewhere else.
  2. What type of business? You know what enjoy doing so why not turn it into a profitable business. Now before you take the bull by the horns make sure this business is something other people need and want. Never assume what you like is something other people will pay their money for. Always see from the prospects lenses. If they like your product or service duplicate and legally protect it as quickly and accurately as possible. What you have done is taken a hobby, thought or idea turned into a profitable business.
  3. Location. Do you want a home-based business, store front or virtual business? See why I started off with question #1 and you thought I was being a smarty. These are the kind of decisions only you can answer. Although each of these businesses are somewhat similar each one functions differently. Here’s what I mean. Home-based businesses is operated from your personal dwelling; therefore, no overhead costs unless you build onto the existing structure. Let’s keep this simple! Either location will require some type of license to operate your business. a.) For home-based businesses check with your municipality for city or county business license requirements; b.) Store front locations will definitely be required to have a business license among other permits, etc. Again, check with your city or county municipality for requirements and; c.) Virtual business licenses can be tricky. Since you are not physically operating from a physical location or home-based a license is probably not required; however, whenever filing taxes you will either use your social security number or obtain an employer identification number (EIN). If you choose the later and use a company name then you must obtain the proper licenses and or permits to operate your virtual business. Note: An occupational license may or may not suffice to operate your business. Again, check with the municipality in your locale for business license and or permits.
  4. Financial Resources. Regardless of the size, location or dimension of your business, having MONEY is essential. I know you’ve heard that it doesn’t take money to start a business. Whomever or wherever you heard this is emphatically wrong. Look at it this way. Can you go into a store and make a purchase without funds? The answer is NO you cannot; regardless if you used a credit or debit card, cash and another acceptable method once it arrives at the financial institution it is converted into CASH. Make sure you, an accountant or someone you trust that is money savvy to look over your finances before you take the plunge. If the funds are not there WAIT until you can afford to go into business. Trust me I started my first business with $75 I borrowed from a bill I owed to a debtor. This made me very ill because I did not have enough cash to float me from one crisis to another. Note: Being strategic about starting a business is imperative to your life long plans. If you do not have enough cash I strongly advise that you wait until you do. Another option is to start with a small investment from the dollars you loosely spend on things that do not yield you a return on investment.
  5. Supplies and Equipment. Make not mistake you will need both. For a small home-based business your office supplies/equipment yearly average is about $2500+. Keep in mind costs vary according to the type and size of your business. Your supplies/equipment list can be placed on an excel spreadsheet or another suitable software that is comfortable for you. Here is an example of each heading: Description, Amount, Costs, Frequency, Vendor, etc. This will get you started then incorporate other headings as you grow.

How to Develop Solid Online Business Foundations to Maximise Profits Today and Tomorrow

Get Skilled Up! When you are learning about how to become successful at something new, whether it is making money online, windsurfing or anything else, you need to learn new skills. You can’t apply your skills in fishing to windsurfing but you could apply some skills learned through skateboarding. In the same way, when you are learning to make money online you can’t necessarily transfer your entire current skill set from your current job into your new online business but you could apply some of your existing web and computer skills to help you get a head start. With that in mind, we need to accept that we are going to need to take the time, with an open and enquiring mind, to learn some new skills and a new body of specialist knowledge.

Einstein said that the definition of insanity is to “do the same thing again and again and expect different results”. So it is when you are starting out. If you are going to be successful online you must not be hostile to the new ideas, techniques and concepts that you will be exposed to.

Are You Ready? Another old saying states that “When the student is ready, the teacher will arrive”. As a newbie you must be ready to seek and accept the wisdom of those that have been there and done it before you. With that said, bear in mind that there are many charlatans out there promoting poor opportunities who just want to take your money and give nothing in return. Choose your mentors and teachers carefully. Are you ready to leave your comfort zone? The comfort zone is where you can quite happily (or miserably) carry on doing what you have always done and get the same results (good or bad) that you always got. In order to develop as a business person and a human being (I hope that you are both) then you need to push yourself to achieve more than you have before. You need to be seeking out new ideas and opportunities and be willing to fail as you learn. Don’t be afraid to fail your way to success.

How To Choose The Right Mentor For You. It should be obvious by now but you may not realise that with such a lot to be learned when you enter any money-making opportunity you have to make sure that you find a great way to learn it quickly and effectively. There are many people out there offering an overnight success scheme but I would recommend that you steer clear of these alleged opportunities which are more likely to be scams than genuine opportunities. If it sounds too good to be true then it probably is. Find an individual or a company that you can trust, who has been there and done it if you want to increase your personal chances of success.

Take A Helping Hand. Almost everyone who is successful online today had to have a helping hand from someone in the very beginning. Every mentor has a mentor. Nobody just instinctively knew the best ways to make money online when they came into the world. These things have been learned and developed over time by many people before you so don’t miss out on the chance to learn the lessons of the past and implement them to ensure your future success. The internet is still relatively young and there are still an incredible number of opportunities out there on the web for people to make money.

In this article you learned about the essential attitudes that you must develop in order to be successful online and how to select a good mentor and training programme.

Build a Sound Business Foundation

Sometimes people will start an internet business that has no business background at all. This is a big reason for the high failure rate of new internet entrepreneurships. If you do not have an education in business, then you would be very wise indeed to speak with those who are well versed in business.

An internet business of any kind is a BUSINESS. It must be run like a business and it must be build upon sound business practices. The only ‘dumb’ questions are those that are never asked. You need information and the best way there is to get the information that you need is to simply ask questions of those who have the answers.

There are courses available both out in the brick and mortar world as well as on the internet about how to set up and run a successful business. You can’t abide by the rules if you don’t know what the rules are. Do your homework before you launch your business.

You need to lay a rock solid foundation so that your new business doesn’t become one of the casualties that are caused by poor planning or even no planning. You need a business plan. You need a business model and it needs to be one that you can understand and follow. Jumping in and hoping for the best isn’t a plan. That will only insure that your new internet business will not still be in existence four months from now.

Take your time, choose the right business, and people to work with wisely!

I had to learn this the hard way but you don’t have to.

Thanks
Lenny

Franchise Opportunities Vs Business Opportunities: Pros and Cons

Congratulations!

So you’ve decided to be your own boss rather than work for someone else the rest of your life. Good for you! Many decisions will crop up before you make that first deposit or paste that first dollar bill on the wall next to your cash register. Choosing what sort of business you wish to operate is tops on the list – retail versus wholesale and service-related versus product-oriented – as well as the specific industry you plan to enter or the type of work you hope to do. But selecting between two major categories of self-employment is awfully high on that list – buying a business opportunity as opposed to a franchise opportunity.

What is a Franchise?

Many U.S. companies, especially those in the retail sector, provide goods and services through franchisees. If it’s a national brand, chances are good the owner of that particular establishment has purchased the right to operate it from the parent company. Fast-food restaurants are one major category, but the concept extends to everything from car repair shops and daycare centers to mobile veterinary clinics and home cleaning services. By paying an up-front fee, plus perhaps a percentage of your monthly gross revenue for ongoing licensure, you have the opportunity to become an independent operator with the full backing of a major corporation.

What is a Business Opportunity?

A business opportunity is far less structured than its franchise equivalent. You are given basic information about an industry and how to operate within it, but you’re under no obligation to promote a particular brand or to do business in a particular or controlled manner.

Franchise Opportunity Benefits

By purchasing a franchise, you gain immediate name recognition and credibility. No one questions the fact that Dairy Queen is a great place to buy soft-serve ice cream treats. Because the parent company is invested in making your business a success – they can’t collect that monthly payment or use you as a reference for new franchisees if you’re out of business – they provide both initial and ongoing training, regional or national ad campaigns, and well-tested business methods that are guaranteed to work. If the business requires a storefront, the company will usually help you find a good spot with lots of traffic, and perhaps even offer some sort of financing arrangement. Does the business require specific supplies or inventory? You will probably be offered significant discounts, since buying in bulk across the enterprise usually leads to lower prices for all.

The Downside to Franchise Opportunities

A legitimate franchisor will not allow you to buy into their system unless you pass a rigorous review process, which usually includes a careful analysis of your finances, your business experience, and your willingness to accept all their rules and regulations without question. Most franchise fees can run into the tens of thousands of dollars, plus you will have to spend additional money for equipment, supplies, and a location from which to operate – unless you are involved in a mobile business (which still probably requires a dedicated vehicle or two) or one you work from home. Some of your earnings every month will go toward a license fee, payable to the home office, and you may also be required to share some marketing expenses.

Business Opportunity Benefits

You will generally spend less money to acquire a business opportunity than you would a franchise opportunity. By definition alone, there is no upfront franchise fee, plus you usually keep all of your revenue rather than paying ongoing franchise or royalty fees. You are free to choose any business name you like, and even branch out into other areas as you see a need in the community. For example, if you purchased a hamburger fast-food franchise, you could only serve the items on the “approved” list. By buying a business opportunity, if you liked pies – well, you could sell whatever kind of pie you wished. You are also able to operate pretty much anywhere without fear of stepping on someone else’s toes. Franchises can have some very strict territorial guidelines.

The Downside to Business Opportunities

The acquisition of a business opportunity rarely gives you the option to use trademarks, brand names, or other elements readily identifiable to the buying public. The freedom you have to do things your own way also means your chances of success rest entirely in your ability to run a business. There is no home office support, no massive buying power for equipment, inventory or supplies, and no other business owners to consult when you’re faced with an issue that needs to be resolved. In a very real sense, you are on your own.

The Bottom Line

In many respects, deciding between a franchise and a business opportunity comes down to two main factors – how much money you have to spend, and what kind of a personality you possess. Rule-followers can become great franchisees, while people who like to go off in their own direction – maybe not so much. Be sure to weigh all the factors before you decide which is best for you.