Federal Small Business Loans

Which is Better, Investing or Owning a Business?

Whether you are starting your own business from scratch, going into a business opportunity, or buying a business, you need to have certain characteristics, traits, skills, and goals in order to succeed.    So how do you know if you are ready to own a business? Basically, you need to ask yourself some hard questions and give yourself honest answers. If you don’t have the time and commitment to start a business, you need to look elsewhere for your income. You may be better served accepting a job with a company. There are those that need structure and a job is the place for them.  But, if you are inclined to owning your own business, then lets discuss some necessary items.   First, you need to have a plan. The plan can come from your own imagination, the franchisor, or the company offering the business opportunity. It doesn’t have to be something set in stone, and it doesn’t have to be fancy. It just needs to be a basic outline of what your business will be, what you will sell, how you will sell it, and what your operating costs will be. It is recommended that you include at least three months of operating expenses into your start up costs budget, which also needs to be determined in your plan.   The next item is paramount to your success. It is the infamous 4 letter word and that is work.

A Franchise

Buying a Business - The Best Or a Fixer Upper?

When buying a business, there are some key steps to follow that will enable the process to proceed more smoothly.Which Business to BuyStart with deciding what type of business that would best suit you. You are most likely to be successful at a business in which you can make good use of your skills and experience. In addition, you will want to select a business that you would be passionate about since you would be investing not only financial resources but a good deal of time.After deciding what industry you want to invest in, consider what size business to search for. Analyze your management skills as far as the number of employees, volume of sales, location, etc. Of course it will also be necessary to explore financing options as well as your own financial situation. This will enable you to see what you will be able to afford to pay for a business.The Search Take your time in this business buying step to ensure that you are researching all avenues so that you find the best overall fit. Consider enlisting a business broker to help you. Also, there are many resources on the Internet that can help you with this process.Investigate the BusinessOnce you find a business that you believe would be the best match, there are several items to consider. Be sure to do extensive research on the business and its history. Discover the true reason the business is for sale by speaking with people who are familiar with the company such as local realtors and other business owners in the area.Before meeting with the seller, do some reading and/or speak with a professional as to what is appropriate to say or not to say at this point in time. The seller will also be considering how the buyer comes across as a prospective owner of his/her business.When you meet with the owners, you will need to make sure you find out what is included in the asking price. Also, determine if the assets are clear of debt.Examine the financial statements of the business, preferably with the assistance of an accountant in order to determine the past performance and the stability. If you are not certain that you are getting a clear picture ask for the business records and have your own audit done.You may also wish to ask permission to sit in on the business for a few days. This way you can get a good feel for what it would be like to be the owner of this operation.Pricing and FinancingThe next business buying step will be to determine what the business is actually worth. Analyze the worth using several methods including book value, modified value and replacement value. Find out how the seller derived his/her price and compare to your calculations. Then make sure you can really afford the business. In addition to your own contributions, see what financing options are available including loans from banks and credit unions. Family/friends may also be willing to invest.AgreementsWhile investigating the business, you may have a contract attorney draw up a letter of intent (LOI). This is a document that is a formal understanding that you and the seller are in negotiations, not a binding contract. Therefore if you should find anything you dislike, you don't have to go any further in the process.Finally if all goes well, have your attorney draw up a final contract. The attorney will specify all the details of the deal. Then you will be ready for closing.After all these business buying steps are completed and everyone signs on the dotted line, you will be ready for the next big step of owning your new business. An Established Business

Buying a Business - The Best Or a Fixer Upper?

For many people who want to strike out on their own or just add another income source a home-based business is a great way to do it. A home-based business owner can get financial benefits, tax benefits, and better flexibility in their lives. Here are just some of the benefits that a business owner can get from having their business in the home.Benefits· Control earning potentialThe home-based business owner has the ability to decide how much they will make without having to depend on promotions or raises.· Write off part of mortgage & utilities on taxesYour office space is a business expense, and if the office happens to be in your home that is fine. Check with an accountant or tax agencies to know for sure what can be deducted and how.  · Write off health insurance on taxesNormally an employer would write these expenses off, if you are your own employer, why not do the same?· No commuting, no gas moneySave time and money. The perfect way to save the average American an hour a day and a bunch of cash that would normally go in your gas tank.· Make lunch at home, no fast food expensesSave your wallet from getting thinner, and your waistline from getting bigger.· Set your own hours, flexibility to change them.The boss usually sets hours; if you're the boss the hours can be different on certain days. Only want to work until 2 on Thursdays? No problem.· Close to family, great when you have sick children home from schoolTake care of children, run an errand in the middle of the day, or just be there when they get home. If work is at home, you're never too far from the action.· Ability to be involved in every aspect of businessDon't get burned out in one line of work. As the owner of a home-based business you can be involved in everything from marketing to choosing the letterhead.· Can run business full or part time and change over timeIf you want to start part time and move to full time after a year or two, go for it. No one else determines how the company grows but you. Anyone who tells you that anyone can get rich by sitting at home and not doing anything is lying. The company that I work for, Press-A-Print International, has been selling business opportunities for decades and every workshop they hold reminds people that they can make a good living running their own business, but they have to work. Running a home-based business is a great idea with many advantages, but do your homework. Attend one of our workshops and ask questions, decide how you would set it up and talk to people you know. There are a lot of benefits to be had from working at home for yourself. Franchises

Create Your Own Business From Home - Is It Possible To Quit Your Job And Reinvent Your Future?

There are many benefits to owning your own business. I would like to compare this to investing to help you decide which is better, investing or business ownership. While each has its benefits, both are certainly not for everyone. They have there difference and definitely have their similarities. Both represent a form a gaining financial independence. So which one is better?Owning your own business means you have no boss and more tax benefits. It also means how much money you make is up to you. If you work hard enough at anything then it will eventually be profitable. The big benefits include doing whatever your passion is and getting paid for it, deciding when and where you want to work, and being your own boss. This truly represents a freedom that almost everyone desires. The cons of owning your own business could be huge start up costs, working long hours to get the business on its feet, and dealing with big company competition. These are certainly not insurmountable obstacles but they must be considered. The other thing to consider is that many businesses are not even profitable for the first year or so. This is not to say that yours would not be and you hard work would not pay off eventually.Investing in a business is much like investing in the stock market. You are spending money on something right now that you hope will produce more money in the future. However, depending on the types of stocks you are investing in, you can avoid a lot of the cons that come with starting a business. For example, you can actually be very profitable in a short time with the right stocks, such as penny stocks. You can also start with a relatively small amount of money as you learn how to invest.You can keep you day job and use a portion of you income every month to invest in the stock market either through a traditional broker or online trading account. This is not to say that you cant start your own business and put money into investing. Its just that for many it would be too financially difficult to do both. Many businesses are definitely good investments but if that seems beyond your risk tolerance then give stock market investing a try. If you learn the ropes you can earn just as much if not more than if you would have started a business, except you wont have any business expenses except for the small trading fees. A Company

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buying a business