Buying a Business - The Traps and How to Avoid Them - Part 1
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.
If you have dreamed of owning your own business then you can succeed at it. It is possible for you to be your own boss, acquire more out of life, and feel more satisfied and fulfilled every single day. Often we pursue career opportunities only to realize that we aren't fully satisfied with what we are doing. We desire more out of life but are not quite sure what it is. And it can seem as if something is missing. If you feel like you are missing something in your life then it doesn't have to be that way. Being your own boss might seem intimidating but it shouldn't be. You can actually achieve that goal in a step-by-step fashion that provides you with an opportunity to grow and excel, and then coach and teach others to do the same. Being your own boss is an amazing feeling because it puts you in control of the income you generate. It also gives you the tools and strategies to create the life you desire and deserve.When you own your dream business that means you own a business that is built around your passion and purpose, a business that allows your gifts and talents to shine, and a business that makes a difference in the lives of others. And you can become your own boss for a very affordable investment.Now it is important to understand that becoming your own boss takes a lot of work and dedication. But it is extremely rewarding. If you are willing to put in the work and stay dedicated until you manifest your desired results, then you can be a very successful business owner. Many people dream of owning a business but are not sure how to bring that dream into reality. But that doesn't have to be your story. You can launch and operate the business of your dreams and have dedicated support along the way. It is your time to get off the fence about becoming a business owner and make it happen. An abundance of hidden possibilities are waiting for you.
Buy A Business With No Money Down?
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.
The Advantages of Owning a Home-Based Business
If you'd like to be "set for life" as the owner of a multi-million dollar business -- sitting back and collecting a six-figure salary while other people (who have several years of business experience) "run" everything for you -- then this article will show you how.Listen to this: I've bought over 200 businesses in the past 40 years. In the first 25 of those years, I got owner financing. I got bank financing. I had vendor financing. I did all sorts of things. But, what happened was, I didn't realize there was investor financing. I actually discovered this on complete accident because I needed financing to buy a business in Mexico.You see, nobody was going to finance anything in Mexico. Even today, they won't. So, I had to go back to the investors we had and talk to them. I didn't even realize they would do something like this. So I just sort of lucked into this. And now, for the last 25 years, we have never gone to the bank other than for a line of credit. We don't ask for owner financing. We pay 100% cash on the deal which means the seller gives us a better price than a small cash price. We don't have to qualify. We don't have to give our financial statements. We don't have to do anything. In fact, the average seller will tell you they don't care who you are or what you are if you give them all cash. So what happens is, if you bring an investor in, as opposed to all the other types of financing, it's a lot easier way to go.The other thing with an investor is most of them will ride with you for four or five years. In other words, if you show them what their share of the profits are going to be for four or five years, many of these investors do not ask you to pay a return every month or every quarter, which means you have all the cash available in the business for a four or five year period to expand it. It's really a fantastic way to go, but I want to tell you for the first 25 years, it never dawned on me because I didn't know how to find investors.But now, that's what I use almost exclusively. And I find it's not only cheaper (almost free), but it allows me to buy more businesses and have less work. Reason why is because investors will only put up money for businesses worth a million dollars or more, with an experienced management team already in place. Which means, if you show up, you're almost in the way. The management team you're paying doesn't want you there mucking things up. They would rather you be out playing golf or something. It's a great way -- the only way -- to do business. If you want to pull your hair out buying sandwich franchises and "mom and pop" donut shops, that's your choice. But I'm here to tell you from 40 years of experience buying businesses, it's actually faster, easier and cheaper to buy large, multi-million dollar businesses, where your only real "job" is to cash the checks.
Which is Better, Investing or Owning a Business?