Starting up a new business in the current economic climate is not an easy task and small business advice isn’t easily accessible to help the business grow to a successful and profitable empire that you can rely on.For every business owner, their business should be an asset, a way to plan for their future. Most business owners will rely on their business to fund their retirement in their old age, but without the right structures and knowledge in place, this is a very difficult goal to achieve.There are a number of companies dedicated to offering small business advice, giving businesses that second chance they need to succeed. As a new business owner you are so busy concentrating on getting your name recognized, that it’s easy to bypass some of the important factors that could help your business reach the successful level you are looking to achieve.The first mistake many business owners make is they go and spend a fortune of their startup costs on expensive equipment and machinery. In fact many of these items can be leased over a set period of time. Leasing comes with its own advantages. Besides not being the owner of the equipment, when the contract period ends, you are able to upgrade the equipment staying up to date with the latest technological trends.This is some of the small business advice you would be offered by a professional Rather than spending a large portion of your starting budget on computers, you would lease them and then upgrade them in a year, so you always have the latest equipment on hand to ensure your business runs smoothly.The next piece of small business advice you would probably be given is about small business administration loans. These are loans which are guaranteed by the government, which means that there is a higher chance of being accepted. The additional funding can be a blessing for a new business or a small company looking to expand.The advantage to these loans is that they have longer payment periods and they are easily accessible, even being awarded to those that have a poor credit history. This is all because the guarantor is the government, which ensures the loan will be repaid taking the risk away from the bank or lender.Other essential small business advice that every business owner should have is how to get out of debt with ease and relieve any debt the business may have. As long your company is in debt, it will never really make a profit, you need to find a way to repay that debt in the shortest space of time to get past the red and start enjoying the rewards of your success.One of the most important pieces of small business advice that many business owners could do with is offers in compromise. You have probably heard this term a lot lately, but are unsure on whether your business qualifies or how to go about applying.An offer in compromise enables small companies to reduce their taxes that are due. While there are strict qualifying criteria, the right professional will be able to give you the necessary information you need which can assist your business in retaining a small cash flow to continue operating.Lastly is the one topic that many company owners don’t really want to discuss, but it’s a reality and should be taken into consideration. That is bankruptcy. Before filing for bankruptcy and thinking there isn’t any other alternative, find a company that can offer you the information and support you need. In many cases there are other options available which won’t tarnish your own personal name.
Small Business Advice Every Business Owner Could Use
Women’s Home Based Businesses
Gone are the days when a woman, upon becoming a wife then a mother, is limited to tending the household chores, while her husband is the one working for the family. Women empowerment made it possible for the female populace to be treated as an equal to its male counterpart. In the establishment of businesses, women have as much initiatives as men, hence it is not surprising that women have set up their own home made businesses. Technology provides a great support for a business to be set up inside your home as the creation of a web-based venture can be done with ease.
For the single women out there, the advantage of operating a home based business enables them to generate income while at the same time, pursuing their other endeavors like higher studies. It may also serve as a supplement to their earnings in keeping their daytime jobs. The time devoted to maintaining a home based business is not too consuming as opposed to a regular, full time job that necessarily involves commuting time to and from the office.
For the married women, there are various advantages offered in setting up a home based business especially if they have small children to take care of. One of the benefits of operating a business at home is that the cost of daycare is eliminated particularly since daycare expenses are continuously on the rise. In addition, income coming from both the husband and the wife is a great help on the family budget. The other favorable aspect of simply having a home based business is the flexibility that comes with it, as there is not strict time to follow by the woman.
The most common businesses engaged in by women who work at home are those that require selling or auctioning off products. The reason for this is women are natural marketers and they know how to sell a good product if they see one. This does not mean, however, that women who are interested in starting their home based business should limit themselves to this option as there are endless opportunities out there.
Real Estate Auctions – The New Land Rush
On a sunny afternoon in Florida, an energetic crowd gathers on the lawn of a high end luxury estate. A loud and eager banter between an auctioneer, a group of bidders and bidder assistants fills the air. For several minutes the auctioneer asks for the next highest bid and the bidders respond. Suddenly the bidders grow silent. The high bidder holds his breath in anticipation of winning the auction. The auctioneer calls for one more bid. In a loud clear voice which rolls over the audience he says, “Fair warning, last chance” the auctioneer pauses, “SOLD!” And in less than 10 minutes another multimillion dollar estate has changed owners.
Successful real estate auctions like the one above are happening all over North America and the Caribbean. Recently real estate auctions have been on the rise, the increase in popularity is partly driven by growing inventories and fading buyer confidence. Properties that were selling in weeks using traditional methods are now languishing on the market unable to attract buyers even as seller’s lower prices. Many say the real estate boom is over but savvy buyers and sellers are profiting from real estate auctions.
Real Estate Auctions Work in Up or Down Markets.
Regardless of trends or market cycles, real estate auctions provide an open and transparent process for buyers and sellers. Properly conducted real estate auctions attract ready and willing buyers and motivate them to act now.
The auction method removes the “wait and see” attitude which serves to further depress real estate values. Buyers are always concerned about overpaying. Buyers gain confidence with their purchases at real estate auctions because they can see what others are willing to pay.
When market demand is high and inventories low, real estate auctions can deliver selling prices well above what a willing seller would have accepted in a negotiated private treaty sale. In good selling climates many property owners using traditional real estate methods; negotiating with one buyer at a time, leave thousands of dollars of equity on the table. During up markets real estate auctions are the best way to establish top market price.
Evaluating Your Real Estate for Auction
Not every property or seller for that matter makes a good candidate for auction. First of all sellers must be ready to sell now and for the current market value. Also a real estate auction will not fix problems caused by a downturn in market value of your property, if you owe more than a willing buyer will pay, be prepared to come to closing with your check book.
Properties that do well in real estate auctions have a high uniqueness factor. Ask your self, “What makes my property different from most others?” Maybe you own a resort property or high end luxury home, commercial properties and land do very well at auction. Real estate auctions thrive on uniqueness. If your property is like everyone else’s, the best thing you can do is offer the most competitive price.
Most importantly sellers must be reasonable about setting a minimum bid. A seller must look at the lowest, most current comps and price below that to generate the interest and urgency necessary for a successful real estate auction. Once the auction begins and qualified bidders start competing against one another you can watch the selling price increase.
Locate a Qualified Real Estate Auctioneer
Start by checking with the National Auctioneers Association, the best real estate auctioneers belong to this organization. These real estate auctioneers are well trained and adhere to a standard of practice and a code of ethics. Many attend the annual International Auctioneers Conference where the latest techniques and innovations in the real estate auction industry are presented.
Find out if the company you are interviewing is a full time real estate auction firm. Many real estate agents are getting auction licenses yet have no experience with the auction method of marketing. Conducting a successful real estate auction is nothing like (private treaty) traditional real estate sales. Go with a real estate auction pro.
You’re probably better of with an auction house that specializes in real estate auctions. There are many qualified auctioneers who have generations of experience selling personal property; furniture, dishes, lawn equipment and the occasional rare painting. Selling real estate at auction is a complex matter that should only be attempted by full time experienced real estate auction professionals.
Commissions and fees may vary, sellers must pay all marketing expenses up front and buyers typically pay 10% of the sales price to the auctioneer of which a share goes to participating real estate agents.
Types of Real Estate Auctions
Auctions are effective because they create a seller’s market. Professionally conducted real estate auctions create urgency, a reason to buy today and competition for the property. Terms and conditions of sale are established ahead of the auction. Real estate auctions will follow one of these three approaches:
Absolute Auction
The property is sold to the highest bidder regardless of price- using this process often returns the highest sale price.
Minimum Bid Auction
Seller agrees to sell at or above a published minimum bid price – this method is useful for internet auctions.
Seller Confirmation or Reserve Auction
With a reserve auction, the seller “reserves” the right to accept or decline any bids usually within 48 hours of the auction. Reserve auctions are used when there is a lien on the property from a lender or a court ordered sale with a minimum selling price.