A small business start up marks the beginning of the business which is categorized in small business. A small business can be corporation, partnership or a proprietor owned with a small amount of manpower and funding. In America, a small business start up comprises of less than 100 employees, whereas in UK it has less than 50 workers. In countries like Australia, a small business start up begins with 1-19 employees. A small business start up is identified by its small investment, small turnover and profit and less manpower.The smallest business start up can begin at home which are termed by the World Bank as Micro-businesses. They usually have manpower of less than 10 employees. Higher versions of small businesses can be general stores, lawyer practice, clinics, private agents, restaurants, free-lance writers and small-scale manufacturing industries.Advantage of a small business is that it requires less investment. The working hours of such a venture is also less and requires smaller work area. They have a closer relationship with their customers and clients. They are highly independent and flexible to the changing market. Disadvantage of such a small business start up is the high risk of bankruptcy. In absence of strong financial back-up, the business may go into heavy losses, resulting in legal action against the proprietor in case of loan taken.A small business start up should follow the below mentioned methods for grater success:Formulating a business plan:For any small business start up, a well defined plan is a must. The final objective of the business should be precise and clear. The requirements should be formulated and the money to be invested should be prudently calculated. Almost equal amount of money invested should be available for back up in case of heavy losses incurred. The amount of man power required and their required qualification and skills should be decided.Implementation of the Plan:The business plans made initially should be implemented and all objectives set should be achieved. Financially, loans should be taken if self financing is not possible. Most of the banks provide loans for businesses. It is easier to obtain loans for partnership ventures. After the principle amount is obtained, the hiring of man power is done. This is followed by purchasing of all commodities needed for the business to start. The small business start up can now function fully.Getting customers and Marketing:Getting the right customers is the key to success for all small business start ups. Doing a small research on the market trends and customer needs helps in changing the business strategy for higher profits. Marketing the product of business to the target customers is optional, depending on the type of product. Marketing for a small business start up can be restricted to pamphlets, news papers, and small hoardings.Expansion of business:Upon attainment of the set objectives, the small business can increase its investments, manpower and productivity. This can be achieved if the small businesses start up earned considerable profit. This can expand the boundaries of the business and reach to a larger group of customers to increase the profit margin.
What Are The Benefits From A Home Based Business?
Job security is a thing of the past, in this fast and furious world that we find ourselves in. Keeping up the pace at which we work is a challenge, and the pressure to succeed escalates daily. We feel out of control, working 50, 60 or more hours per week. Meeting deadlines, long hours, daily travel, which for some can be extensive, competition even angry bosses can all be ‘in a day’s work’! And that’s while you have a job. But for how long? Jobs aren’t easy to come by, and they are also not as easy to keep. Gone are the days when you had the same job until retirement. Now is the time to be looking for different directions and careers. Now is the time to take matters into your own hands, and work for yourself.Home based businesses are great. If you choose wisely, and have good management and leadership, you can have huge amounts of success, and working for yourself instead of a boss is very rewarding.Here are eight exciting benefits to owning a home based business.
Low overhead costs
No boss, no employees
You get back control of your life
You work when and where you want
You decide how much you earn, not your boss
Personal growth
More opportunity
Freedom
Even if you need to continue working at your current job, there is no reason why you can’t run a home business part-time, and the best part is, it can be earning a second income for you. Plenty of people started their home business as a part-time option, and have now resigned their jobs and work from home full-time, and enjoying enormous success. It’s very possible.So what do you look for in a home business:
Low set up costs
Strong company with integrity
Full training and support
Solid compensation plan
Residual income
Keep these five basic components in mind when looking for your business concept. They cover the most important factors you require when looking for a good business, and there are plenty to choose from. In fact, working from home is becoming the business model of the future. It’s an ideal source of income for anyone. That’s right. Anyone can run a home business, and with the right training and a desire to succeed, they will make a good income from it. If you choose a business with a compensation plan that includes residual income, the opportunities are even greater. Residual income is becoming more popular than superannuation.The 21st century is the age of technology, and we have the ability to profit from this great era in which we live and work. We should be making the most of every opportunity, and taking control of life, future, and financial situations. Making the decision to own a home based business is strong positive step toward a very successful future and lifestyle.
Hiring An Auction Company
Estimating your assets value:
Typically, one of the first questions a business owner will ask me is, “how much will the assets bring at an auction”. After taking the time to review the assets, the auctioneer should give the client a conservative estimate of the sale based upon his experience and the current market trends. It is important that the company give realistic expectations so the seller can make informed decisions based on their best interest.
Compensation and Expenses:
Is the company you are considering working for you or against you? The agreement you decide may determine this.
A business owner should carefully consider how the auction company is compensated. The most common commission structures include: straight commission, outright purchase of assets, guaranteed base with a split above to both auctioneer and seller, guaranteed base with anything above going to auctioneer or a flat fee structure.
In a straight commission structure, the company is paid an agreed upon percentage of the total sale.
In an outright purchase agreement, the auctioneer simply becomes your end buyer. The company purchases your assets and relocates them. While this can be an option in some unique situations, keep in mind that they will want to purchase your assets at a very reduced price to make a profit at a later date.
In a minimum base guarantee, the auction company guarantees the seller that the auction will generate a minimum amount of sales. Anything above that amount either goes to the auction company or split with the seller. While a seller might feel more comfortable doing an auction knowing that he is guaranteed a minimum amount for his sale, keep in mind that it is the best interest of the auction company to secure a minimum base price as low as possible in order reduce their financial liability to the seller and secure higher compensation for the sale.
In a flat fee structure, the auctioneer agrees to show up for the sale and call the auction. There is no incentive for the auctioneer to get the best prices for your assets. The auction company is compensated regardless of the outcome of your sale.
What is the best option for business owners? In my experience, an agreed upon straight commission structure. This puts the responsibility on the auction company to offer the best outcome for everyone involved. There is an incentive for the auction company to work hard for both parties, set up and run a professional sale, get the highest bid and sell every item on the inventory. Successful auctions translate to a higher bottom line for both the seller and the auction company.
Auction Expenses:
In most auction agreements the expenses to conduct an auction are passed to the seller. If the auction company pays for the expenses, it is simply absorbed in higher commission rates.
All expenses should be agreed upon in advance in a written contract. Typical expenses will include the costs of advertising, labor, legal fees, travel, equipment rentals, security, postage and printing. A reputable auction company will be able to estimate all expenses based upon their experience in previous auctions. An agreement should be actual costs charged as expenses, not an estimated amount.
Advertising is typically the highest cost in conducting an auction. The auction company needs to set up an advertising campaign that will promote the sale to its best advantage and not overspend to simply advertise the auction company.
Once the auction is complete, the auction company should provide a complete breakdown of all expenses to the seller, including copies of receipts within the auction summary report.
Buyer’s Premium:
What is a buyer’s premium? If you attend auctions regularly, you are very familiar with this term. The auction company charges a fee to the buyer when they buy an item at auction.
The buyer’s premium has been around since the 1980′s and is standard auction practice. It was first used by auction houses to help offset costs of running brick and mortar permanent auction facilities. Since then, it has spread to all aspects of the auction industry. It is prominent in online auctions and allows auction companies to cover added expenses incurred from online sales.
It is the responsibility of the auction company to provide clear disclosure of the buyer’s premium to both the buyers and the sellers. Those not familiar with auctions are often taken back by the buyer’s premium. They looked upon it as an under handed way for the auction company to make more money. Reputable auction companies will provide full disclosure within the auction contract, advertisement and bidder registration.
Typically, an auction company will charge online buyers a higher buyer’s premium percentage than those attending an auction in person. Extra fees are incurred with online bidding and are charged accordingly to online buyers. This provides the seller a level playing field for both online buyers and those attending the auction in person. Without the buyer’s premium, there is no way to do this.
Pre-Sales:
We’ve all been there. We’re looking forward to attending an auction only to find that some items were sold prior to the auction date.
As an auctioneer with over thirty-six years of experience, I can honestly state that pre-sales will hurt an auction. When a company decides to liquidate their assets, it is easy to sell off high-end pieces of equipment through online sources, equipment vendors or to other businesses. The seller receives instant cash and avoids paying a commission to an auction company.
Auctioneer’s find themselves appearing to acting in a self-serving capacity when potential clients say they are planning to sell off parts of their inventory prior to an auction. It’s hard not to consider the auctioneer’s commission when they warn you not to pre-sell anything. Yes, the auctioneer wants to earn a commission on those sales but it is more important that the auctioneer protect the sale from potential negative backlash that comes from pre-selling. The buying public knows when an auction has been “cherry picked” prior to the sale and it reflects in their bidding. It becomes a sale of “leftovers” and that impacts prices.
A buyer who purchases prior to the auction usually does not attend the sale. They already bought equipment at a good price with no competition. If they do attend the auction, they tend to let others know of their great pre-sale purchases which again, impacts prices and the overall excitement of the sale.
It is important to understand that auctions work best with a complete inventory. You want competition on your higher end equipment. The easy to sell items make it possible to gain respectable prices for hard to sell items.
When a business owner decides to liquidate their equipment assets, there is only one opportunity to do it right. Hiring a reputable auction company will assist you with a professional, orderly and timely liquidation.