Create Your Own Business From Home - Is It Possible To Quit Your Job And Reinvent Your Future?
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.
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.
Owning Your Own Business - The 10 Things You Must Know
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.
Buying a Business - Steps
Are you learning about Buying a Business? For most people, buying an existing business is a better option than starting one from scratch.Buying A Business is generally better than Starting a BusinessBuying an already operating business has an existing cash flow, established customer base, vendor relationships, trained employees, and an established business location.All of these critical factors are non existent with starting a business from scratch. It will take time and a lot of hard work just to get a new business of the ground. In addition you will be literally burning through cash the first year and it's safe to say you should have at least 6 months to a year of personal savings in the bank that can cover your family's expenses while your new business is developing.The choice is easy. Buy an existing business with a proven cash flow so you have immediate income.Financing a BusinessFinancing an existing business can be time consuming but it depends on the route you go. Most small business owners will carry owner financing on a percentage of the deal. So if the total deal price is $100,000, you may only need $20,000 - $40,000 as a down payment and the sellers may carry the balance. Most sellers will carry the loan for 5 years at 6% -7% interest. They may also allow you to finance the loan over 10 years but require a balloon payment in 5. You should always try and get the seller to carry a portion of the financing fist. It's the easiest method in getting a deal done. If the seller will not carry a large enough portion with your down payment then you can look at alternative financing.So how much do I need as a down payment? You should have 5% - 20% of the total purchase price as your down payment. For seller financed notes they may require up to 50% down but this will vary widely with each deal and sellers personal requirements.No Money Down loansIt is a common misconception with Small Business Loans (SBA) on how easy they are to get. First and foremost, there is no such thing as No Money Down Loans when it comes to buying a business. Even before the credit crisis they did not exist. You will need at minimum 10% of the total purchase price as a down payment to get bank financing. Most small business lenders will not loan on purchases under $100,000 - $150,000 and they have additional requirements.Personal Requirements in Financing:10% Liquid Assets as down payment (They will prefer 20%) At least 6 months experience working in a similar business or managing another business A good credit score 620 and above minimum and no recent bankruptcyBusiness Requirements in Financing:The business will need to provide at least 2 of the most recent tax returns and the current years updated Profit and Loss statement.The business will need to show it has sufficient provable cash flow after the loan debt service and the buyers personal financial requirements.If you do not meet all 3 of the personal requirements and the business does not meet it's requirements then you most likely will not receive an SBA loan and will probably be wasting your time. You should focus more of your time on either negotiating with the seller to carry the financing or find a different business.Other Financing Sources:There are a few other ways you can finance the business but it will require refinancing personal assets like real estate.What Type of Business Should I Buy?Look for a business that has some connection to types of work you've done in the past, classes you've taken, or perhaps skills you've developed through a hobby. It's almost always a mistake to buy a business you know little about, no matter how good it looks. Also, try to choose a business that you're excited by. It's easier to succeed in business when you enjoy the work you're doing. Where to Look when finding an Existing Business For SaleThe first place you should look is contact a local Business Broker. Business Brokers are professional Business Advisors, intermediary's that assist buyers and sellers in the sale of a Business and generally are paid fees by the seller. A broker will help you in everything from researching businesses for sale, negotiating the best price for the business, financing the business, incorporating your business, and much more.Although brokers are paid commission by the seller, their interest is in selling the business. Therefore a good broker will work with both the Buyer and Seller in negotiating the most favorable terms for both parties.Brokers are one of the best resources to use when Buying an Existing Business.How to find A Business Broker or Business for Sale:You can find a Business Broker by looking in your local yellow pages or online by using business for sale website like The Business Broker Journal. This site is mainly a marketplace for business brokers as a place to advertise their businesses for sale.
The Advantages of Owning a Home-Based Business