Wednesday, March 30, 2011

How Do Apply Technique I Start a Business

The global economic meltdown has limited option for employees today. Today it is not uncommon to find hundreds or thousands of resumes landing on a hiring manager's desk. Overqualified people are applying for jobs well beneath their skill levels. Companies are downsizing staff and adding extra work on remaining staff. Let's consider first the main option :

 1.  Buy an existing business (typically brick and mortar)

2.  Start a new business (typically brick and mortar or home bases)
3.  Buy a franchise
4.  Start an online business

Buy an Existing Business 

Normally  a business has four things to sell  to the potential buyer: customer base, staff, process, and assets. For instance, the formula for that industry might be that sales will e 1x annual revenue.So, if the firm generates$500,000 of billings then the asking price is also $500,000. The price may go up or down based upon perceived qualitative factors. The owner may state that the employees are long time staff with the necessary credentials for the success of the firm. Or maybe the firm has multiple year contracts with clients that indicate long-term relationship.
Whatever the price is though, it is going to be expensive . Ii is going to require a lot of capital to get started and then there is the risk of losing existing customers if the owner leaves. There is a the risk of employees leaving especially if they are valuable to the brand of the firm. Employees may leave for a variety of reasons including perceived fear with the new organizational change. The buyer is going to have to perform a lot of due diligence and ask the right questions to obtain assurance that the business has a bery high probability of succeeding.

Start a New Business

Starting a new business provides a much different type of risk. The upfront capital is much lower but there are the costs associated with starting from scratch and figuring out all the steps to get established, branded, and building a customer base. During the buildup stage, your own salary is going to be low or even nonexistent as you reinvest in the business.Marketing is the key to growing the business and developing the brand and marketing can be very expensive especially if it's not an area that the entrepreneur has a lot of experience with. Without a doubt, having an established network in the business will be essential to get the business off the ground.
Buy a Franchise
Buying into a franchise is a good option for entrepreneurs who want to follow a proven brand and business model. A streamlined system is in place to follow step-by-step so that success is much higher than with starting a business with a new brand. The main drawback of course is that the entrepreneur is generally limited with creative options and there are heavy fees including royalty fees and start-up costs. Additionally, franchisers generally want to see franchisees having a minimum level of liquid assets, in other words a lot of cash. For the entrepreneur with limited funds this is a difficult option but this can be a good avenue to pursue.

Start an online Business
Fortunately we live in an age where starting a business does not have to be complicated or expensive. Online businesses offer the average person an opportunity to start a home based business on the side or even full-time with much lower levels of start-up capital. There are costs of course, which usually includes domain name registration, web hosting, marketing fees, and product costs. The main key to success is to follow an online mentor who has a turnkey system in place to maximize revenues and minimize expenses. The system should also have standard technological processes in place and training available in the form of webinars, forums, and videos. The biggest obstacle for new entrepreneurs is the area of marketing the business. Online marketing is pretty unique and there are literally dozens of marketing options online including free and fee-based expenses which can escalate if controls are not established.


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