No Picture
Business Week

Small Home Business Ideas To Make Money Online

With the increase in the Internet and a global economy more and more people are looking to make money online. Since other employment avenues are becoming scarce and this is the only part of the economy that is growing – it has become a viable option to replace your job.
In this article we will share with you some tips on how to start you own small home business to make money online.
1. Think different but be the same
In the real world you would be looking to differentiate your product from other competitors. This is true for the Internet as well, and you will need to come up with a point of difference to make money online. However, offline businesses make money when they sell necessities, on the Internet you don’t necessarily need to focus on necessities to get results. In fact products that don’t do so well in the real world, end up making millions on the Internet.
This means to look at your products from a very detailed and deep point of view. For e.g. if you are looking to sell a physical product think in these lines organic pet food, or hamster cages etc. These products would probably not be very profitable as a local business. The Internet creates this a global business and allows you to serve every community that is looking to buy organic pet food.
2. A thousand words are better than a picture
This is one that most people get wrong. We think that a picture is better than a thousand words. On the internet search engines look for content ‘words’ – so it is better for your website to have a thousand words than have one picture there. Remember, content is king.
The more content you are able to create and distribute the better the chances. Think of this like going to a well. The more water it contains the more the people from the town will want to go to it. Or a more modern example – a video rental store, the more movies it has on catalog, the more people it will cater. So the more content you website has the more people will come to your website.
3. Make friends with your customers.
If you go to your local stores, to buy clothes or groceries the chances are that you will probably not know the owner, especially if you live in a city.
However, if the owner came unto you and introduced himself to you and directly offered his services to you, you would be thoroughly impressed with the customer service.
Think of doing online business as the same, you meet your customers every day – become friends with them and take care of them. The more you do this the more they will want to come back to you. And the easier it will be for you to make money online from you small home business ideas.…

No Picture
Business Plan

Common Cents When Financing Your Small Business

“The Best Advice is always free”

Starting a small business requires bucket loads of wisdom. Financial wisdom offered through various media is not always inherently beneficial to the reader and their business.

The foundations for financial excellence are elementary and logical; here is a new perspective on financial insight to starting your small business. Making use of purely scenario planning this illustrated scenario would be a recommendation for all businesses that you intend financing.

The average cost of setting up a franchise and small business in U.S.A. is currently in the $300,000.00 to $ 474 000.00 marks, a sizeable sum taking into consideration the prevailing economic climate and business confidence levels.

Loans or Finance

In order to stimulate the economy, banks are eager to finance new business as this has a long-term stimulus on the economy and contributes to job and wealth creation.

Most individuals do not have the entire capital amount available to finance their new venture and financing becomes the preferred and logical route to market.

Taking into consideration the average price of a new franchise $474 000.00, the average cash portion of financing that particular business would be $ 153 000.00 which includes the initial, cash joining or franchise fee.

This would equate to a financing portion of $321 000.00 or 68% of the initial set-up cost of the business.

From a personal and statistical point of view, the gearing or debt ratio is too high and the minimum recommended debt ratio should never exceed 50%.

Why is gearing so important?

It is nerve-wracking and soul-destroying to build a business for you only to allocate the major share of your income and profits to servicing a loan and the commensurate interest payments. The strain on the cash flow and reserve funds is too great, and the business rapidly becomes a financial risk to the entrepreneur and the banks concerned.

“The Free Advice”

Total Cost

When using the above figures as our reference and benchmark, if the inclusive cost of the business is $474 000.00.

It would be prudent to assume that if shares were offered at $1.00 per share then the business would have 474 000 shares on offer.

Share Distribution

Taking my advice of a 50% gearing or financing ratio, the business when financed by the entrepreneur would allocate to the entrepreneur, 50%(237 000 shares) of the shares currently on offer (The portion he/she has paid cash for)

The remaining 50% of shares on offer would be the right and technical ownership of the banks or financing institution.

The Thinking Motivating This Strategy

As the entrepreneur pays off the loan, their ownership or share-holding increases exponentially.

Goals are easy to set, time and financing permitting the entrepreneur sees his/her goal of 100% ownership as achievable and desirable.

When the bank is essentially a partner in your business the relationship changes, the entrepreneur can take the banks perspective into consideration as they are a valuable share-holder, the logic of having a “you” and “me” approach becomes a “we” approach to the business.

Any extra funds available will inherently go toward servicing the loan on the business.

The Ultimate Lesson

That our thinking and approach has changed, it is a recommendation that one ignore financing by financial institutions and approach friends, acquaintances, and family to finance your business using this share-holding approach. The entrepreneur develops a fiscal policy that is easy to equate and calculate, profit distribution is just as equitable, and the entrepreneur has a clearer indication of the status of the business free of financing and interest costs and charges.…