Most Important Step to Starting, Running, Buying, or Selling a Business

You are looking to Start a Business. You are Running a Business. You are Buying a Business. You are Selling a Business. What is the most important step in any one of these ventures? And no the answer is not having unlimited deep pockets. To start, run, sell,or buy a business you need to understand that business. You need to understand not only the operational side of your company, you need to understand the financial side of your company. I am a business broker in Florida and I help people buy and sell businesses. (and current and former business owner) This last week I completed a very busy week of helping an out of town business buyer visit several different companies. Our intent of visiting these multiple companies was an effort to understand the businesses. To buy a business you have to understand the business. A small business owner truly needs to understand the financial health of their company.

Many, Many Many small business owners DO NOT understand the financial side of their business. Do you feel as an entrepreneur you need to understand the difference between a debit and credit or if you buy something if it should be a capital purchase or an operating expense. So many small business owners and entrepreneurs run their business using their gut as their guide, they can feel if their business is going good or bad. Other small business owners look at their checkbook- if there is money in that things are ok. On the other side you may have a very successful business, you buy several new truck and new equipment with cash every year, you have very little money in the checkbook and “feel” you have an unsuccessful business. You could be very wrong. And yes it is also very easy to hire a CPA and or accountant and send all the monthly records to them, count on them to sort through them and have them generate a report for you to maybe glance at and file away. Your CPA or accountant is a great place to start the learning process. The more you know, the more effective they can be to you. Your Balance sheet and your Income statement tell your companies story. You may feel your company is healthy, or improving, or getting better, or getting worse- your balances sheet or Income statement (Profit/Loss Statement) will tell you in a factual manner. You need money for your business- you go to a banker or financial institution to get money, do you think they will listen to you tell them about your business and loan you money based on that. they will use your company financials to make that business decision. A few years ago banks I had worked with strongly considered your balances sheet to make loan decision. Now-a- days both Balance Sheets and income Statement both are a strong part of that evaluation. Why is that?. Understanding the “whys” about your company is important to your business. In the preceding scenario a business may have a strong balance sheet due to significant assets like real estate owned or equipment owned by the company. But in current economic conditions the companies Income statement show that the business sales are down 25% and and shows losses for the last year- lending may not occur. The banks may not be all that excited about the fact that you own real estate through your company.

The business buyer I was working with flew in town for 3 days for him and I to visit businesses. Most of the small business owners we visited had good businesses. Without divulging any confidential information, they all showed cash flow in excess of $200,000 per year. They (the respective business owners) all said they didn’t really understand the financial side of the business, but “here our our records for your review”. (after confidentiality agreements were signed) They could speak for hours about their customers, employees, procedures and ideas. Questions regarding financial information were usually answered with 1 or 2 brief sentences.

The buyer I was working with was a very educated buyer, a President of a publicly held $40 Million company, and 30+ years of experience. He had looked through maybe 30 businesses to narrow down visits to less than a handful. He and I both knew that to buy a business, he had to understand the company. We spent hours discussing the financials of the businesses. You as an entrepreneur that is starting a business or running a business may someday want to sell your business. Understanding the true financial condition of your company is the 1st step to improving the financial condition of your business.

Buying a business is a very effective way to expand your customer base and Revenues. knowing how to read and understand the financial statements of others could be the difference of a business acquisition that is a success or a failure.

And when an educated buyer approaches you about buying your business, you provide the business buyer your Balance Sheet, your Income Statement, and your explanation and understanding of the true financial condition of your business may be the difference in someone buying your business at a good price or passing your business over to pursue other businesses to buy

What NOT to Do to Keep Your Home Based Business a Success

There is a saying in the Home Based Business world (or at least a saying among my Home Based Business friends), and that is, “The great thing about the Home Based Business Industry is that anyone can do it. The worst thing about the Home Based Business Industry…….. is that anyone can do it.

For the most part, starting a Home Based Business is fairly simple. Find a sponsor, sign up, and you are pretty much off and running. But the thing that most people don’t consider is what they shouldn’t be doing in regards to prospecting, training, and running your business in general.

Don’t feel like you have to talk to everyone you come in contact with and try to sell your opportunity.

Once people start a Home Based Business, they are incorrectly trained to go out, make a list of friends and family and call them constantly about joining the business. They are also taught to always be looking for an opportunity to bring up the business opportunity in conversations. Even if they are standing in line at the grocery store, find a way to start talking to the person behind you and look for a way to bring up the business. This outdated method is still taught today, and you will see tons of information telling you it’s an outdated method, but no one really explains why. Well don’t fret, I’m here to explain why.

The reason it doesn’t work is because people are so inundated with advertising and sales pitches today, that we shut people or advertisements down in the blink of an eye these days. It’s almost like it’s human instinct now. I mean think about it for a second. How often do you fast forward through commercials on TV now that we have the ability to do so? How fast did you sign up for the do-not-call list as soon as it came out? We as a society hate being sold to. Even if it is something we might need, the minute someone tries to “sell” us something we most likely shut down and block them out. When you drive do you even notice the billboards anymore, or are they just a part of the landscape that doesn’t even enter your mind?

So if it doesn’t work why are you taught this way? Well, it’s a really simple answer. Because it’s the easiest thing to teach and it’s easy to teach it to others. Home Based Businesses leaders teach this to their marketers because, quite frankly, they don’t know how to teach any other way. They give you a script, tell you to make a list of people you know, and give you a shot in the arm with an enthusiastic “Go get’em partner!”, and they hope that the numbers will work in your favor (here is a little secret, that rarely turns out well for the new marketer). And, when they are not getting any results, they tell the new marketer to try harder. Yeah, that’s helpful, try harder, keep calling the people that won’t even pick up the phone anymore when they see your number on caller ID, there is a good plan.

They think it’s to difficult to teach new people a different way, a better way of marketing their opportunity. So they give you some watered down, out of date system that will leave you frustrated and broke. Well there is a better way, there is a more effective way, and I will talk more about that in the next section.

Do not sponsor everyone that wants to get involved!!!

Huh???

Yeah, you read that right. I mean you could sponsor everyone that wants to start a business. In fact if you love to be annoyed, bothered 24/7, frustrated, defeated and depressed, by all means have at it. Remember this line from earlier?

“The great thing about the Home Based Business Industry is that anyone can do it. The worst thing about the Home Based Business Industry…….. is that anyone can do it.

Let’s get down to brass tacks. Not everyone is meant to start, own and run a business. Plain and simple. Might not be a nice thing to say, but it is a true thing to say. A Home Based Business owner, or any business owner for that matter has to have a certain type of desire and mindset. Now I’m not saying they have to be smarter than the average bear, not the case at all, but they do have to have a specific mindset. They have to understand that there is work involved, and that growing a business takes time and energy, and it takes dedication. You can’t just expect to succeed by taking the easy route.

That being said, you as a Team Leader have the responsibility, I will even say an obligation, to yourself and to the person / people you sponsor, to make sure that they “get it”, and understand what it takes to become successful in this competitive industry. You have to make sure that they understand that, even though you are there to always help them and work as a team, that they will eventually have to work independently after they are trained. Now I’m not saying train them for 5 hours and send them out on their own, no no no, that is what the old school teachers do. I’m saying that you work together as a team, get the person trained, help them until they are comfortable, but this has to happen within reason. It shouldn’t take 5 years. I would say it should only take a month or two of regular training and close teamwork. Let me tell you something. There is nothing worse than a person that calls you 24 times a day with dumb questions, complaints, and whines constantly. This will drain you emotionally, physically and just destroy your morale. You will be miserable and in turn the person you sponsored will be miserable and broke too. Believe me, I went through it, and I promised myself that I would never go through that again. I would rather have three reps. on my team, that get the business model, have the attitude to succeed, and can work as a team as well as independently, and not be constantly dependent and need to have their hand held every step of the way, than to have 100 people that are just gonna drain me emotionally. IT”S JUST NOT WORTH IT!

So when talking to others and they show interest in becoming a business partner of yours, make sure they have the qualities it takes to run, own and grow a business. It’s not hard to figure out if they “get it” or not. Most people can figure out if a person has “it” or not. And if they don’t have the qualities, then just politely tell them that this might not be the best option for them and move on. It amazes me how many Home Based Business owners are so afraid to say no to people. If you are so worried about sponsoring people that you will sponsor a person who will make you miserable, I might suggest that you look into another type of work, because you will have a long painful road ahead of you.

Do not educate yourself constantly.

So we have discussed how many companies train you the easy, watered down, ineffective way. They teach a system that is easily duplicatable to everyone, but is hardly effective for anyone. Now, it’s not the companies fault mind you, they have to find the easiest way to get people started, but again for the person that “gets it” this will not be enough, because, well, you want to succeed, and the people that don’t “get it” won’t go past the basic training the company provides, and they will fail and quit because they won’t understand what we are about to discuss. But again, you won’t have to worry about people on your team quitting because, as we figured out earlier, you only sponsor people with the right qualifications, RIGHT?:)

You need to constantly add tools to your business tool box. There are some great programs out there to help you take you business to another level. It amazes me how new Home Based Business owners will invest in starting a new business and then not invest in their business education. Does a doctor graduate medical school and never educates themselves any further? Does a real estate agent consistently study the real estate market and it’s trends? Well the Home Based Business owner has to do the same thing. They need to plug in and study what the leaders of the industry are doing. They need to keep up on the trends and they need to invest in their education. I personally require my new business partners to purchase some of my favorite educational tools because I know it will help them in the long run, and if they don’t, they will not become a part of my team. I mean if you are not willing to invest in your education and training, how much success do you think you will have? Not much.

Be impatient.

Rome wasn’t built in a day and your Home Based Business won’t be either. It is not a “get rich overnight” thing, nothing is. People that tell you that are lying to you, plain and simple, and they do not have your best interest in mind. It takes time to build and grow a business, and you need to be ready to put the work in. How long does it take? Well there are so many factors it varies person to person, but on average I will say 1-2 years to really start making a substantial income. Is that to long for you? Well then you are not made for this business. Any professional knows that this is the general rule of thumb for any business in any industry. If you don’t have the patience to wait that long, you might want to just work for someone and and not start your own business. You also need to sustain yourself while you are building. As i mentioned earlier, if you are going to invest into starting a business you need to also invest in your education. Now I’m not talking about thousands of dollars in educational tools and trainings but there does have to be some money invested nonetheless, but the money that is invested into your education will pay you back 100 times the cost in the long run. You also need working capital for advertising, marketing and the general running of your business, again, no different that any other type of business, but remember these costs are significantly lower that most types of business, but they are things you need to be aware of if you want to own a successful Home Based Business.

Legitimate Work From Home Business or Home Business Opportunity Help And Advice

Legitimate work from home business or Home Business Opportunity Home businesses are one of fastest growing sectors of business today, with the recent recession people are looking for an alternative to finding work which can and is getting lower and lower paid.

The fact of the matter is that employers have to become more competitive as costs increase and clients want businesses to supply their goods or services for less. Therefore it is clear to see that employers who lost staff to the recession, are now re-employing but at lower rates, sometimes even at the minimum wage rate. This allows the employer to cut costs and become more competitive.

Let’s face it if you were an employer under pressure you would do so too, it’s basic supply and demand in that there are many hundreds of applicants for each job that comes onto the jobs market and it naturally follows that employers can and do find new employees for less.

This is where the work from home businesses have come to many people’s rescue. This short article is written in order to help all those people who are looking to start up their own work from home business. I am certain many people who are at threat of losing their jobs or have lost their jobs would prefer to earn a real income from home rather than go back to work for less money than they are used to earning, I mean “How Much Do You Value Your Time” why should you work for peanuts to line somebody else’s pocket?

One of my first work from home business mentor’s favourite saying is this, “it takes just as long to go broke as it does to get rich! So don’t get mad get wealthy!”

How To Get A Good Home Business Opportunity.

If you are going to start a home based business then trust me you are going to need a mentor, someone to set you targets, show you how to achieve your goals and be there for you when you need that home business coach and mentor.

Beware there are lots of make money online programmes out there but you must be careful, there are no secrets and there is no magic bullet, but there is a “Formula” a systematic approach that anyone can use to make money online in their own home based business opportunity, and it isn’t that difficult, you just need someone to show you how and to help and encourage you.

Warning if you see get rich overnight offers on the internet and they seem too good to be true 99 percent of the time they are. The importance of researching any home based business opportunity cannot be stressed strongly enough. Like most people I fell for many scams and get rich schemes that cost me dearly, I very nearly went broke, so here are a few pointers to help you decide.

1. If a home based business opportunity seems too good to be true it probably is.

2. If someone rings you from a call centre and promises to show you how to make money online and how to build websites (which is easier than you think and any way you don’t need to know how) they will usually ask for between $5,000 and $12,000 “Investment” tell them to get stuffed!

3. If a call centre member of staff on $10.00 per hour really knew how to make money online, don’t you think he or she would be doing it themselves?

4. Stay away from MLM’s and Matrixes unless you have hundreds of like minded acquaintances that will join you, trust me you will become avoided and very lonely.

5. Check out the business and who is behind it.

6. Have they succeeded online themselves?

7. Have they taught others to build a successful home business?

8. Does this work from home business have a track record of happy successful clients?

Please just use your common sense, analyze what’s on offer, you need training and coaching, help and encouragement once or twice a week from a coach who has already made it. You need a coaching program and a personal mentor who was once where you are now.

Now when I first found a real opportunity after two years of being taken for an idiot, I was able to make a reasonable amount of money within 90 days. I stuck with this for a while and then went onto something bigger, I only tell you this so as you don’t make the mistakes that I made, start with a low cost coaching program, and do not buy a home business study course, yes, many of them are superb, but until you learn the basic formula for a home based business you probably won’t understand a word of it.

One of the main benefits of these businesses is that they are “earn while you learn coaching programmes” and I only know of a handful that will get you from where you are now to where you need to be quite quickly, and at a price affordable to the average guy, working or not.

Now I want to share my own experience with you all regarding the ups and downs of home based business opportunities as I have seen several people quitting their home business just because they think that they lack the necessary skills and investment.

Well let me tell you now, that is simply not true, I have met online entrepreneurs, who (and I don’t mean to be offensive) if you met them you would think they are retarded, and I mean it, yet these people are very wealthy, surely if they can do it – you can too! Start with a low cost earn as you learn business, and very soon you will be a successful work from home business entrepreneur.

Word of warning Never start with an MLM or Matrix, they only make the guy’s that run them rich!

Success in any internet marketing business is built with knowing the formula, the systems and systematic approach to online marketing. The second step is learning, and please remember that your time and my time are limited resources. These are precious resources must be carefully used at all times.