Build Your Business Credit Fast

 Learning how to start building or repairing credit for your business are imperative. Whether you are establishing a business or have an existing one, building a good credit rating is essential, as it helps to optimize your business operations.

In the initial stages of building business credit, more often than not, it is necessary to use your personal credit background to obtain funding to finance purchases and attain credit. However, the business credit profile should be separated from your personal one, as relying on one's own funding to finance the business leaves you personally liable.

The process to build up credit for your business must commence prior to starting operations. To start building credit immediately you must be looking on establishing the following:

Business as a Legal Entity

To separate your business credit score from your personal credit score it is necessary to establish your business as a separate entity. To qualify as a separate entity the business has to be structured as a corporation or a limited liability company (LLC).

Tax Identification Number

Acquiring a tax ID number (also known as an Employer Identification Number, or EIN) is the next step involved in building valuable credit for your business. Similar to the personal credit score which is associated with the individual's Social Security Number, the business credit reports are associated to a tax ID number. The federal tax identification number can be obtained from the Internal Revenue Service and there are a several ways to reach them:

• Call the IRS Business and Specialty Tax Hotline at 1-800-829-4933.
• Download IRS Form SS-4 from the Internal Revenue Service website
• Download IRS Form SS-4 from the Small Business Administration website and submit to IRS by mail or fax. Directions for the SS-4 forms are provided online.

Business Bank Account

Opening a business bank account allows you to separate business funds from personal funds. Furthermore, a business bank account can also serve as a bank reference when applying for business credit.

How To Start Building CreditWith A Business Credit Card

As a business credit card can be used as a revolving credit line, it is simplest way to build up credit history with on-time payments. Timely payments eventually improve your company's credit worthiness which facilitates your ability to acquire a business loan. Therefore, use a business credit card for payments whenever possible. Unlike personal credit cards, having multiple active business accounts can be positive, provided that they are in good standing. However, limit the number of business credit cards when beginning and as the company grows you can continue to acquire more.

Business Phone Number

Acquiring a business phone line is important as business credit reporting agencies use the phone number to index your business in their databases. In addition, the credit reporting agencies use the telephone number as proof that you are actually conducting business.

Business Listing

Be sure to supply the exact same business address and phone number to every credit agency and trade credit vendor. Ensure that the business address and phone number are also listed in both the 411 Directory (White Pages) and the Yellow Pages.

A D-U-N-S Number

The D-U-N-S Number is a 9-digit number issued by Dun and Bradstreet that most companies utilize it to verify the credit history of businesses. The United States government and many corporations require their suppliers and contractors to have a D-U-N-S Number. Keep in mind that having a D-U-N-S number is just the beginning. You will need to start building your company's credit profile by doing business with creditors and/or suppliers that report to Dun and Bradstreet.

How to Start Building Credit By Registering with Credit Reporting Agencies

Many of your company's lenders and suppliers report information to the business credit reporting agencies about your company, such as how your business pays its bills or loans. There are many business credit reporting agencies such as D&B, Experian Business, BusinessCreditUSA, FDInsight, and ClientChecker. The majority of suppliers, creditors, and lenders pull their reports from Dun and Bradstreet, Experian and, Equifax Business. Registering an account with these 3 business credit reporting agencies is a good start.

Registering enables your company to start building credit through their credit databases. The database can also be used by potential customers, suppliers and lenders to obtain fundamental information about your company. As it is not mandatory, it may be necessary to ask businesses that you work with to report your timely payments to these business reporting agencies. These submissions enhance your credit rating and verify your registration with the business credit reporting agencies.

Compliance

Before conducting business, it is necessary to obtain all registrations, permits and business licenses that are required in your jurisdiction.

In summary, once the above list has been completed, the process of building business credit profile can commence. Obtaining trade credit with vendors is a good place to start. To build up credit score, it is important to seek vendors and suppliers that are set-up to report your company's payment history to the credit reporting agencies. Naturally prompt payments for purchases are essential in leading to a good credit score. If the business has an existing loan, timely payment of the loan can also help you establish a better business credit score.

Business Start Up VS Buying a Business

Buying a business is another way to enter business ownership. There are many similarities between a start up and entering business ownership through acquisition. Like everything in life it has positive and negative sides. Availability of time, money and skills should determine the business you will buy.

Look for a business that you can manage

The type of business you consider should reflect what you already know. Owners who spend years building their business from the ground up are protective of their creation and like to know the qualifications of potential buyers. Usually they avoid dealing with people who do not have the money and skills to operate a business. As a buyer you should avoid having the supermarket shopper syndrome when looking for a business. You have to know what you are looking for. For example a restaurant, clothing retail store and manufacturing company require different set of skills and expertise to own and operate.

Decide how much to spend on a business

In the beginning of the business acquisition process any prudent buyer will ask the following two questions. How much money I have to buy a business? Do I have enough operating capital to run the business? There should be a clear understanding how much money is available for acquisition. In many occasions some financing maybe available from the business owner, banks or other sources. Yet, this is valid for bigger businesses with established history and proven profitability. There is not much available for smaller and losing money propositions. Sources of money have to be clearly identified ahead of time. Acquiring a business is significantly more capital intensive in a short term than a startup.

Decide on general business location

Decide on desirable physical area, neighborhood and location before starting to look for a business. Small business owners spend considerable amount of time in their business. You have to like the location. It is important to know how far you are willing to commute. Are you going to move to another part of town, city or state for a good business?

Have an acquisition time limit

Buying a business should not be open-ended process. Appropriate time frame should be within two years or sooner. Owners want to work with serious buyers. Having a time period within which you will purchase a business tells the seller that you are serious about buying a business.

Have a vision for the acquired business

Another very important aspect is to have a vision for the business you are buying. Every business is unique and reflects owner's dream and value system. By buying a business you are purchasing other person's dream. You have to have your own vision about the business as a new owner. Any, changes must be introduced with great care.

Benefits of buying a business

The major benefits of a buying an established business are reducing risk and immediate access to income. Also, you acquire with it a working operation, access to customers, suppliers and trained employees. In addition you buy into owners expertise. Usually, the seller will train for a limited period of time. However, she will not teach basic business skills. The buyer has to have the skills and knowledge to run a business prior to purchasing one. When a business comes on the market the seller in most cases will separate mentally from it. They do not want to go back and revisit it after the sale is completed.

Challenges to buying a business

Acquiring a business requires significant amount of cash to buy and operate the business. Need to learn the business quickly to get in sink with the established operation. Some employees, customers and vendors may not like you and decide to look for other opportunity. Historically this translates to a six-month drop in sales for the new owner.

Many buyers are looking for absentee owner situation. There is not such think as absentee ownership. Business is like a garden. It needs constant attention. Otherwise the weeds will take over or the plants will die because of lack of attention. The best gardens are tended with love and passion. Acquiring an established business offers quick jump into income producing ownership and saves years of hard work and uncertainty of startup.

Making Your Business Grow

One important part of making your business grow and make profits is marketing. Of course, you have to market your business, market your products, and get in touch with your target customers. Whether you have a small or a huge business, marketing is never absent as an essential component in making your business succeed.

If you have a small business or you are trying to venture into selling something online as a start, then learning a few business marketing tips will help you have a good start in making your business grow as well.

Here are a few of those business marketing tips that you might find useful in marketing your business offline and online.

1. Take advantage of newspapers of local circulation. Indeed, one of the popular ways to market your business, especially if it is still a small-scale one, is to take advantage of print media. Newspapers readily welcome advertisers, thus you can make use of it especially if your target customers are locals or your business is just small-scale.

2. Create your brochures, flyers, press releases. These are still effective today especially if you want to reach out to people just within your vicinity. This also helps attract customers already in the venue of your business and lead them to your shop. Even for those who are just 'looking around,' these advertising leaflets can help them know more about your products and your services.

3. Provide free information to potential customers. This is one of the effective ways to promote your business and encourage people to take a look and know more about your products. You can sponsor free classes and workshops every now and then and provide them with inputs and information that they will find valuable. If your shop is an arts and craft store, then you can provide good training and workshops on card-making or some other interests and hobbies that is related with your business.

4. Network. Create connections and networks with other businesses and networks, from home based business groups to other business people. Of course, connections and networks are good for your business. As all of you are looking for ways to promote your products, you can mutually benefit by promoting each others products, especially if your business complements.

5. Go online. Strive to make your business visible on the internet. These days when people are relying on the internet for information and even for shopping and finding answers to their questions, it is indeed wise to expand your marketing efforts to the online world. Going online also helps expand your business and your target market to a worldwide audience. If your product can be easily shipped anywhere in the world, then you might also find that going online is one of the best ways to expand and grow your business.

These are just five of the many business marketing tips that you can implement and do with your business. It is important that you also learn constantly and update your marketing techniques as well so you won't left behind my competitors, especially in online marketing where the pace is fast and you need to keep up as well.

Lawn Care Business Start Up

Getting Started

Starting a lawn care business is relatively easy, and provided that you already own your own equipment, inexpensive as well. There is a joy to lawn care that is hard for some people to appreciate. With the proper setup, if you start now, you will be way ahead of everyone else.

It is not as difficult as you might imagine starting your own professional business. You can start your business with little investment so it is not high risk and with good marketing this little investment can pay off very well.

Knowing how to use the tools, good customer relations and if you can't find a good mentor then there are excellent e-books and e-guides on starting and running your lawn care business. Compared to some other businesses you could invest in, your own business can be started with ease and your start up costs minimal.

If you have dreamed of starting your own business, then starting your own lawn care business may be just right for you. The fact that starting your own business means that you will be the boss and you will have all the time in the world to run it. Everyone starts out with their own experience of mowing their own lawn and that is all you need. You have to start somewhere and start slow and buy more equipment as your business grows.

Having A Good Plan

I think one reason why some do poorly in the lawn care business is because they don't plan, and aren't aware of what will be required of them as they move from the "start up" to becoming an organized business.

However, the one thing anyone should keep in mind when starting any kind of service is that it is a business, and starting a business takes planning. Planning is the straight line that takes us directly to a "target". Planning is the straight line that "takes the zig out of the zag".

The Lawn Care Industry is a huge business and if planned out right, it can keep you busy all-year-round. You can offer other services, like planting and fertilizing.

Instead of being overwhelmed, you'll have a clear game plan; you'll know exactly what to do first, second, third, etc.

Having a business plan and "working the plan" shortens the distance of where your company is right now, and where you intend to take it. Landscape Companies that do not plan, are known to be more stagnant than those that do. Business planning is important as you grow your lawn care service or landscape business depending on how large a business you become. Having a plan for your business is a must.

Conclusion

Lawn Care is becoming a very profitable business. I've known for years that this is one of the fastest ways to make real money with little to no investment - if you do it the smart way. So whether or not you make life-changing money with your very own profitable business is now completely up to you.

The key element here for a successful business is research. Simply having a guide to start and run your own business is not enough but it is a good beginning. Owning a lawn care business is a lot of work, but it is also very rewarding. If you have dreamed of starting your own business, then starting your own lawn care business may be just right for you.

Would you like to know the proven techniques to starting and running a money making lawn care business. Find out some of the things you need to know in order to start your own lawn care business. If you do it the right way, starting your own lawn care business can be a virtual cash cow. You will learn methods that take very little cash to start. You'll learn strategies that will help you become one of the tiny successful minority who "get it" and start making tons of money because you are "doing it" the right way.

A Simple Guide To The Different Types Of Business Taxes

If you have a business to open, be sure that you know you are going to pay for business taxes soon as part of the requirement of owning a business. Business duty is to be paid in order to give support to the nation's budget. All citizens have the duty to pay for taxes and not only the businessmen.

There are various taxes that are paid by business owners. The obligation is dependent on the kind of operation the business has and also its size. Another thing that can affect the kind of tax the business pays is the number of workers working in the company. Large business taxation has a different scheme than that of small business taxation.

There are 4 standards business fine that is stated in the law of taxation. These are the Excise fine, Self-Employment, Employment, and Income ones. Various guidelines govern the payment scheme of each type of tax for business. To know more on the four kinds of business taxation, read the information below.

The first kind of tax is called the Employment tax. Many businesses with a number of employees working in it are paying the employment fine. Business owners are often required to pay for the taxes of the employees such as the Federal income obligation, Social Security tribute and Medicare. However, this will depend largely on the kind of business you are running. Some do not apply to all of the business sectors.

Income ones also apply to business and its owners. Everybody pays the income obligation and so business firms are no exception to the rule. There is an equivalent percentage of tax that businesses pay and this percentage is deducted on the annual earnings of the company. All businesses are required to pay the income tribute to the government because it is stipulated in the law.

A company may pay for the income taxes of their personnel by subtracting a corresponding amount on the employees' wages. This payment is an obligation that citizens must fulfill. If individuals or businesses do not pay the corresponding fee, they can be filed with an evasion case.

The third kind that will be paid by businesses is the Excise tax. It is called in such manner because it is the type of tax that is excess and not included in the standard type of obligation a company pays. Excise taxes are for businesses providing special services or special goods. There are some fees on special goods and therefore, businesses are obliged to pay for it.

The last kind of duty is called the Self-Employment tax. Those business owners that do not have any employees and are the sole owner of their business pay for self-employment tax. Examples of this tax are social security tax and Medicare fine and paying it helps the business owner because they will receive retirement benefits in the future. Therefore even if the individual is not working under a company, they still get retirement benefits if they pay the taxes.

Starting Up a Small Business - Defining a Course of Action

A sure way to success in starting up a small business is to follow in the footsteps of those who have gone ahead. What this does is that it reduces your learning curve dramatically in achieving your business goals. In looking to start up your small business three crucial areas have to be considered. I am working on the assumption here that you already have an idea in mind that you would love to execute and turn into a business. These are:

1. You will need to write a business plan for your new business.

A business plan is a document that is useful in more ways than one. A lot of people make use of it just to raise funds for their new business and nothing else. This will be a mistake - it can be put to greater use in that it will help you see clearly the potentials within your business idea and to know how potentially viable it is. Of course, some people will rather outsource this work as it can be tedious and boring but doing this yourself gives you greater insight into your idea that you cannot get any other way.

Included in your business plan should be the results of market research which you need to carry out. By necessity, this should be your starting point. This aspect of your business plan should help you understand your entry point into the market place and help you put in place a plan for how you expect to survive and capture market share. Your unique selling point and your target market are some of the things you will find out as a result of your market research that will help you survive in your new venture.

2. Managing your money and making a profit.

Once your business is up and running, you need to manage your money effectively to stay in business. You need to know how much you will need for the day-to-day operation of your business, your break-even point for your particular business and of course the profit or loss position of your business at any given time. Your accountant should be able to point you in the right direction in managing your business finances.

These figures are crucial in your decision making as you run your business. You should also know how many units of your products and services you need to sell to enable you achieve these figures. At the initial stage, it is a good idea to re-invest a part or all of your profits back in the business on a continual basis so that you can grow your business gradually over time without putting it under too much financial strain.

3. Finding and keeping customers

In order to stay in business you need to find and retain customers or clients. The result of your market research should help you to effectively target your marketing efforts towards your ideal customer, to increase your chances of success. You have the option of employing offline or online marketing strategies or a mixture of both strategies to grow your business. The trend these days leans towards marketing your business online to increase your business exposure. The advantages of this are that the number of internet users is growing by the day and the limitation of your geographical location is practically lifted - as such the world is your oyster. To take advantage of this you need to have an online presence or a website from which to operate.

Your reasons for wanting to start up a small business are as important as the journey itself. This is because it helps you to define your business goals and keep you focussed when the going gets tough, which it will do sometimes. Always review your reasons for starting up in business to keep you motivated and to keep the fire burning.

You will increase your chances of success in starting up your small business by paying attention to the above point mentioned - writing your business plan, managing your money and your profits while you continually find and keep customers.

Learn the Differences Between Each Legal Business Entity Type

Your individual state will register your legal business entity, and it's important to understand that not all states recognize every business entity type. The descriptions below are meant to give you a basic understanding of the differences between entities, but you should check with your local government to see which type of business designation is right for your new venture.

Sole Proprietorships

Most small businesses choose the legal business entity of a "sole proprietorship", where one person is the only "owner" of the business. Legally, there is no difference between you and your business, and while this business entity type is preferred by some because of the ease in setting it up and registering it, there is a greater legal risk assumed by the owner of a sole proprietorship. For example, if someone sues your business for infringement or fraud, they will be suing you, and your personal assets will be on the line if the case is taken to court - a disadvantage to this kind of legal business entity. This type of situation is rare to be sure, but from a business standpoint, it has the potential to be a risky move.

An advantage of this entity is the fact that you're the only owner! You can make your own business decisions without having to consider the opinions of a board of directors, or other stakeholders. You receive 100% of the income from your business, and are free to file your profit on your individual tax return at the end of the year - a huge advantage to choosing this legal business entity type.

Partnerships

As the name implies, a partnership is an entity in which two or more people own a business together. Just like a sole proprietorship, there is no legal difference between the owners / members of a partnership and the business itself. As previously stated, choosing this legal business entity can have potentially negative consequences if someone were to file a suit against you or your business. An entity type of this sort carries an additional risk because of the added element of another person. For example, let's say your business partner did something illegal and the court has decided to penalize your business assets because of his or her mistake. Although you have done nothing wrong, the whole business may be at risk of going under because of the partnership liability. Again, although this is rare, it is important to consider when choosing this kind of legal business entity. Types of considerations like this can protect your investment in the long run.

Speaking of investment, an advantage to a partnership is the ability to raise more funds with the influence of more people. Instead of having to shoulder all of the capital upon startup yourself, a partnership can help business owners divide the cost of operational expenses. And of course, because you're sharing costs, you and your partner(s) will have to share profits as well. A benefit of this kind of legal business entity is the financial ease achieved by being able to file your profits under your individual tax return at the end of the year.

When starting a partnership, it is important to draw up a legal agreement detailing how costs and profits will be shared, what to do in the event of a partner wanting to leave the business, how to settle disputes about business strategy, etc.

Corporations

Unlike sole proprietorships and partnerships, where the owners are legally the same as their business, corporations offer business owners a unique legal and tax benefit in the sense that corporations are granted their own legal status. Therefore, this business entity type is considered as a separate legal business entity from you, your partners, and your shareholders. If your business were to be sued, it would not put you or your personal assets at any risk. So wait...who are shareholders? Whereas you're an owner / operator / member of your sole proprietorship or partnership, you become a shareholder in a corporation, because this type of business operates with stock, or partial ownership distributed amongst several people. As a shareholder, you "own" a part of the business, but you also have to routinely answer to a board of directors who steer the direction of the company.

The downside to the legal business entity of a corporation is that you have less individual freedom to make executive business decisions, and you are not in total ownership of your business. This business entity type is more difficult to begin and dissolve, and often must comply with a series of complex federal and state regulations and taxes. However, the obvious benefit to this type of legal business entity is that you have more individual legal protection with the separation of yourself from your business in the event of a lawsuit.

Limited Liability Company (LLC)

Finally, a Limited Liability Company (LLC) is a sort of combination of all of the above business structures. Like the "corporation" business entity type, an LLC offers a legal distinction between a person and their company, but like a sole proprietorship or partnership, it offers the owner or member (we're back to being called members now) control over business decisions, tax breaks, and offers no stock option. There is no limit to how many members an LLC may have, and it is also possible to just have one member. The obvious upside to this type of legal business entity is that it provides the best parts of both worlds, corporation and non-corporation, but the downside is that it is more difficult to file than a partnership (but is still less difficult than forming a corporation). To date, the federal government does not recognize an LLC as a classification when you file your federal taxes, so you must file either as a sole proprietorship, partnership, or corporation.

So What do I do Now?

As with any kind of legal decision, deciding which business entity type is right for your business is a big decision that requires a lot of thought. This is just an overview of the primary differences between each major legal business entity, so before making a decision, check with your lawyer or accountant to decide which is best for your financial and business interests. It seems complicated at first, but once you get registered with the state, you'll be on your way toward owning and operating your own business!

Business Development Strategies That Work

In the almost 30 years that I've worked as a CPA, I've had the opportunity to see businesses go on to achieve amazing results in the marketplace and for their community and for the owners. And I've seen many more businesses founder and fail.

One of the biggest challenges for small business is figuring out how to grow your business, especially in the beginning. The problem is that the desire to grow your business can turn into "grow at any cost" and that's a dangerous position. Growth can be deadly to your business if you don't first weigh the cost of that growth.

That cost can come in two forms:

The expense of the development strategy itself, and

The cost of ramping up your business with inventory and/or personnel to meet the demands of increased business.

In this article, we're going to look at the expense of the development strategy itself. It really is the second thing you should consider, though. Fast growth can cripple a small business if there isn't enough cash flow to fulfill on the sales. First determine how much growth your business really can stand.

Assuming that your business is able to handle new clients and/or sales, now let's take a look at the business development strategy itself. A good rule of thumb is that you should expect to receive 5 times gross income (in other words, sales) for the amount you spend for promotion, marketing and advertising. In other words, if you spend $10,000 in total to put a new business development strategy in place, you should expect to receive $50,000 in new sales.

If you're the typical small business starting, growing or even just surviving in a tough economic market with little or no credit, you also need business development strategies that don't eat up your cash flow. There are plenty of people happy to sell you tens of thousands of advertising space, but can your business afford that? And what if the campaign doesn't work? You've just used up some hard-won cash from your small business.

The best business development strategies are ones that take little or no cash flow.

Here are nine high impact, low-costs for your business:

Get noticed. Small business often start with an entrepreneurial urge to do something better than anyone else has done it before. That's working in the business. And to a certain extent, you need that. But, in today's world, it's highly unlikely that the world will beat a pathway to your door based on something great you've done that no one else knows about. Some ideas to get you started: Write articles, post a blog, build a social media platform or press releases. It's possible to get noticed in today's world for little money. The trick is to stand out above all the other noise. The best way to do that is to provide solid content. Each product and product line must stand on its own merit. There is no room for dogs in a bootstrapping company. Unless, of course, you have a pet grooming business.

Have a good accounting system in place so you can quickly make business management decisions. If something is working, then put more money into promoting that item. If something isn't, cut it quick.

Create a sales funnel. The sales process resembles a funnel. At the top end, the widest part, are the people who are just finding you, checking out their options, considering using your services or buying your product. If you can adapt your product or service to match the funnel, you can often pick up sales. For example, at the top, where the funnel is widest, you may want to offer an entry-level product or a special report at a reduced price. This may help you to capture some of those people who otherwise may not have gone past the looking point.

Can you create some kind of recurring business model, where you receive automatic monthly payments? This is a great way to generate steady cash for your business and is often easier to sell then one big product. For example, our tax firm has a monthly billing service. Clients get unlimited consulting during the year and the cost covers the preparation of their business and personal returns. The benefit to them is that they have a budget and know exactly what it's going to cost. The benefit for our firm is that we have steady cash flow. One of our clients sells equipment. They offer a monthly fee to provide ongoing maintenance. The benefit to the customer is that they have someone checking on the equipment. All costs of repair are covered as part of the ongoing monthly fee. So there are no big cost surprises down the road. Our client picked up extra revenue, a steady stream of cash flow and a happy client. Is there a way to create something like that for your business?

Create different service levels. Not all clients want the same thing. Can you create a premium service level that allows you to charge a higher rate for some of your current clients? What are the things that would make your service more valuable? Increased access to you personally? Front of the line option? Our firm has 3 levels of service available. Ironically, it's the most expensive option, with 'front of the line' service and unlimited consulting with partners in the firm that sells the most. Because of the nature, though, it's limited and so there is a waiting list. That helps sell the other levels of service.

As you create a product or a service, think about what other products or services could be offered to complement and augment it. What else do your clients or customers need? What other services can you give them to create additional streams of income for your business? For example, a chiropractic office may offer therapeutic massages, yoga classes or nutritional supplements. These services and products aren't chiropractic services but they are related to health and something that chiropractic patients might be interested in.

Form strategic relationships. When you focus on a niche, you often find that there are things you can't do, but are things that augment your service perfectly. By affiliating with other service providers, you can create a bigger, higher-value product that benefits everyone. A website designer/programmer builds websites for business owners. He finds that his clients also often need quality writers. If he refers services, he may make a referral fee. To be honest and ethical, that relationship and possible payment should be disclosed to the client as well.

Create a high-end and low-end solution. One of our new passions is talking about the bi-modal graph. Imagine a two-hump camel. One hump represents the people who want hands-on, concierge service. The other hump represents people who want the lowest-cost solution. The depression in the middle is what used to be our target market: people who wanted a little of both. Today, that market is largely gone.

Bill and collect in advance. It's much easier to collect money up front then it is afterwards. It might be a little harder with the first sale, because your customer doesn't have any experience with you, but after that, you've actually got to question why they don't pay you in advance. If you are willing to extend credit, make sure you bill at a premium. There is a cost to carrying debt, especially in a tight credit market like now.

Business development strategies that double as cash flow development strategies are vital for every business, but especially if you're going through your own business recession.

Great Home Business Ideas For You To Start Your Home Internet Business

While most people want to start a home internet business as a way of earning additional income, taking their traditional businesses to another level or having some employment, very few are courageous enough to venture into online business. Many times they fear due to lack of knowledge and skills to do online business and are skeptical about their success. They tend to think that online business is for internet experts, which is not true. This article brings out some facts and great home business ideas for you to start your own home internet business.

There are many great home business ideas on the internet but it takes time and patience to do some good research for those ideas. Each day the internet opens up new opportunities for us to make money by providing solutions to other people's problems. Take advantage of that to start your own home internet business.

Most of the great home online business ideas require you to be smart enough to make money online. You have to take action by acquiring knowledge and skills through self-help learning, trainings and support programs. Take action by spending some time to work on your business and at times some money to invest in your business. Before you start your home internet business, ask yourself the following questions:

1. Do I have the courage to start a home internet business? To succeed in online business, you have to be self-driven, hardworking, passionate about your business, persistent and able to take action.

2. Do I love reading? Most successful online marketers started their online businesses with scanty knowledge but through reading and learning from others, they became experts and are now earning good income. Like other newbies, you will have a lot of information to read before you become knowledgeable, skilled and conversant with doing online business.

3. Do I have the time? You have to allocate ample time everyday to work on your business. You need to create time. Remember 99% of the time is within your control.

4. Am I able to spend some little money? Although you can start a home internet business on a shoestring budget, you should bear in mind that business is all about investment. What are you investing in your online business for you to earn what you expect to get from it?

What do you need to start a home internet business?

The following are 10 great home business ideas on what is exactly needed for you to start your home internet business.

1. A computer and internet connection. It's obvious that you cannot do any online business without having a computer and access to the internet.

2. A website. You can only start a home internet business if you have a website. There are mainly 2 ways of having your own website set up:

I. Designing your own website. You can learn the HTML (the web designing language) to design your websites. Look for web designing e-books on the internet and teach yourself. Learning to design your own websites is a great home business idea I strongly recommend to you.

If you find it difficult to learn, like most people do, then hire a web designer to design it for you at a cost.

ii. Setting up a Blog. Setting up a blog is the easiest and cheapest way to start a home internet business. You do not have to know HTML and it can be set up in a very short time. What you need to do is to visit blogger.com or WordPress.org and create a beautiful site. If you still find it hard to set it up by yourself, you can instead have it set up FREE by other online service providers.

3. Domain Name. You need a domain name to do online business. When coming up with a domain name, first educate yourself and become familiar with Search Engine Optimization (SEO) so as to compose a good name for your site. Register your domain name with a reliable service provider at an average annual cost of $ 10.

4. Hosting Company. You need to host your website with a reliable hosting company. Hosting charges depend basically on the hosting period and the package you select. I recommend hosting your website over a long period of time preferably 3 years to save money. It's not advisable to use FREE WEB HOSTS.

5. A niche. A niche is a specific area of your expertise or professionalism that you intend to sell to your targeted customer group. You need to focus on a specific area of the market to build a successful business. People buy to satisfy their specific needs.

6. A product or service. You must have a product to sell to make money. There are 2 ways of going about this: coming up with your own product to sell or selling products of others. I recommend selling your own product along with affiliate products. Some of the top internet sellers include software, information, private sites and internet services. The success of your business will depend on how good your products are and how great your home business idea is.

7. Marketing. After setting up your website, you now have to market it. Market and market your site! You can only succeed by carrying out marketing campaigns to drive traffic to your website. There are free and paid online marketing methods. Some of the free and most effective methods include forum marketing, blogging, article marketing and social networking.

8. Automation. As already said, online business takes a lot of time but you can save your time by automating some of the tasks. Use auto responders to capture email addresses of visitors to your website who subscribe to your newsletter and to manage order processing, order confirmation, customer follow-ups, welcome messages and thank you messages.

9. Developing your reputation. Reputation determines your success. Portray yourself not only as a professional but also as a person with certain good values. Set ethical standards by which you conduct your business and be honest.

10. Organization. Being organized is a key to building a successful home internet business. Create a daily work schedule, a communication calendar and organize your work e.g. computer folders, email messages, etc...

Is Your Business Cash Flowing or Cash No Showing

Proper management of the cash flow in your business will determine the long-term success of your company. A business that is not cash flowing is considered a hobby, and we all know hobbies cost money. If you are a business owner and there is a cash flow issue, you will need to do a complete analysis of your business model from top - down.

Do you have a blueprint for success for your business? Got cash? Cash is King in Business. When cash is flowing in a business, it gives the business an opportunity for expansion, such hiring new team members to take the business to the next level, or maybe expanding the business to an international market. Many first - time business owners fail at properly managing cash flow, instead of reinvesting back into their business they take the cash and spend on it on personal use. I have seen this happen many of times with people who make that transition from being an employee to an entrepreneur. They're used to having a paycheck coming in on consistent basis that when their business starts to cash flow they eat the first fruits from the tree instead of planting the seeds to grow a bigger tree.

Cash flow management is essential for businesses that succeed. Cash flow is one of the key elements to taking your business to the next level. A business that does not cash flow can cause a great deal of stress to first time business owners. Now with some businesses it may take some time to start generating a cash flow, and this is okay. But you must determine how much time you are willing to invest in a business that is not cash flowing? Is your team willing to stick and stay? If you are interested in laying a foundation for a profitable business currently and into the future, you must inspect what you expect. Put it all in writing so you can have it before you. If you need help analyzing the number seek counsel from someone who has experience in running a successful business. The objective for your business is to track your income and expenses so that you put your business in a position to prosper. And you do want to prosper, correct?

You must realize that your business is an asset that will thrive when you analyze where your business is currently and then move into the mode of creating a cash flow projection, Savvy business owners know how to create and come within the constraints of a cash flow analysis based on a weekly, monthly, yearly and long-term (5 year, 10 year etc.) projections. This will help you to retain modes of doing your business that are lucrative. It will also empower you to take action in your business to create innovative solutions to needs for your products and services in the marketplace. When you have been in business for a few years a review of your company cash flow patterns will help you to evaluate any areas that need to be amplified so your business can go to the next level. For more knowledge in the area of taking the capital that your business gains seek the advice of leaders in your industry, business bankers, and business financial planners that have attained high levels of success and are willing to empower you to reach your goals.

Why Real Businesses Don't Join Networking Groups!

Real businesses don't network because networking is a significant investment of time and cannot deliver a reasonable return on that investment. It does not work for real businesses!

Organized networking is not part of a serious sales plan.

There are lots of networking organizations that promise an endless stream of prospects for business but, in fact, organized networking groups such as BNI or 4 Networking are filled with micro businesses and self-employed that cannot deliver significant opportunity for any growing business. These groups can play a role for the very small self-employed business. The problem is that ninety-nine percent of the membership of these organizations only employ the owner - there is no business opportunity! The result is a breakfast meeting filled with struggling businesses desperately looking for a prospect where few or none exist.

Why do real businesses not attend organized networking groups?

Established businesses develop relationships directly with a target business and do not depend on matchmakers or chance meetings at breakfasts or cocktail parties to develop a 'friendship' that will later develop into business. Doubt this? You will rarely, if ever, find an established business with more than a half a dozen employees at any organized networking event. An established business has a well-developed sales and marketing plan which provides the plans, resources and tools to sell effectively in the marketplace.

Established businesses do use networking but only with a focused and determined strategy connecting with similar businesses at industry events and business clubs. Even at business clubs such as the London Chamber or the IOD small and large businesses do not mix in the same circles. You can go to every networking event sponsored by the London Chamber and you will never meet the Patron members. The big fish and the small fish are swimming in different tanks!

How do you connect and do business with larger organizations that have the kind of budgets that will allow you to transform your business?

You need to prepare yourself and your business and professionally target larger companies. This means you need to develop the selling skills and strategy to effectively locate, connect and present. Then you need to sell and close the business. If you don't have these skills then invest and build the knowledge to play in the real game of business!

Does paid networking have a place in business? Sure, the typical high-street businesses 'butcher, baker, candle stick maker' can build solid local business and contacts. If that is your business model a networking group for the first year of business makes sense. I have gained real business from attending these groups but the pool of prospects is not of the quality to provide a reasonable stream of prospects for any but the smallest of enterprises.

Business Coaching for Business Improvement

Business coaching can actually bring the much-desired changes to your business. Coach is a word which is derived from "kocsi", a Hungarian name that means "carriage". Today, however, the word has a wider use and it basically means transportation of people from one point to the other where they desire to be.

Business coaching, therefore, can be defined as a process that can be applied so as to move a business from its current position to where the owner envisions it to be. What a business coach does is to offer guidance and assistance to the owner in view of business growth, helping in the clarification of the business vision and how exactly it can fit well with the personal goals. This is a very important step and should be a point of focus.

Business owners should be made to understand the importance of reaching their goals for the business and how it can affect them personally. The business owner is responsible for the determination of the passion and speed in which goals are met. When the business owner has a passion for reaching a goal, he will be more determined to make it work by all means.

Usually, a coach will get to know the business owner desires and this helps in the prioritization of the goals and strategies that need to be put in place. It is the work of the coach to meet you with the owner on a regular basis so as to ensure they remain on track to all commitments that they may have made.

Accountability is a critical component of business coaching. It is important to understand that a business coach isn't a consultant. This means that they don't work for the business. The main aim is to help you with focus and keep on reminding you the importance of reaching the set goals. They also work to motivate the business owner to actually keep the commitments. They are the sounding board and can even hold a mirror so as to reflect all the blind spots that you may have missed.

Most of the success stories that you may have heard attributed it to amazing business coaches. For business owners who seek to have more time, more money and better relationships and health, it becomes important to have a business coach. The reason why the most business fails is that people are not really taught about ways in which they can actually win at life. Coaching, therefore, bridges the gap and enlightens the business owners in ways that only a coach can achieve.

It is the dream of every business owner to have a winning team around them. Also, anyone in business desires to have great profits in an effortless and exponential way. A winning business allows you to have time and money freedom. If you feel that you need to rethink your commitments and focus on the goals you had initially set out for your business, then getting a great business coach can actually help you and your business to a great extent.

How to Write a Business Plan That Works

Key components in and organisation's success will depend on a great degree on how well you;

can gather and interpret information

adapt to change

manage staff and resources

promote your business

look after customers and more.

This is where forward planning can help you.

A colleague once told me that 'even a bad plan is better than no plan at all'. A bad plan at least shows that you have given some thought to the direction you want to go in.

A good plan takes time and effort, especially the first time you do one and many business owners or operators think they don't have the time, or don't see the value in it. But believe me... it is worth the time and effort!

It is an opportunity for you to build solid foundations for your business, based on known facts and these allow you to:

be very accurate in your plans and future projections.

avoid unforeseen pitfalls and crisis situations

spend your money and/or other resources in the most effective way

stay ahead of the market

make the most of every opportunity

be pro active and choose your own course rather than be reactive and follow everyone else

stop wasting time, effort and resources on inefficient processes and more

Good business planning involves:

looking at what you've done in the past few years

looking at where you are now

drawing conclusions from the above two points

based on that information determining your objective for the coming year/s

setting key strategies to help achieve the objective

Analysis of Past Performance

In this section of a business plan you look at the past year (or two) to take a good look at what worked and what didn't. Where you came from is every bit as important as where you are going. You need to look at:

What promotional activities did you run- for example did you have any discount deals, special offers etc?

What worked? What didn't?

Why did the activities work so well, not so well - find the reasons

Advertising campaigns

(again) What worked? What didn't?

Why did the campaigns work so well, not so well - find the reasons

What mediums did you use? (ie Newspapers, magazines, radio. List the actual companies you used as you may have used a number of different ones.)

How much did you spend on them?

Which ones generated enquiries and which ones didn't?

Did you keep track of the enquiries, if so, what were the results?

Keeping statistics on where enquiries come from can help you to use your advertising budget in the most effective way. There's no point in spending a lot of money on advertising on television, for example, if most of your enquiries come from newspaper ads or word of mouth. Asking customers where they heard about you and keeping a record is the best way of determining advertising effectiveness.

Were there any noticeable or unusual increases or decreases in your business? If so, why did they happen?

Were the increases/decreases at any particular time of the year, or did they affect any particular product or service. If so why? Do a detailed analysis of product and service sales. How many of each individual product or service did you sell? Break these figures up by month (as shown in the graph above) as this will, again, show up regular high and low periods which will then allow you to forward plan. For example in high sales periods you know that you will have to order more stock and put on more staff whereas in low demand periods you order less. You can plan for these peaks and troughs in advance... because you have statistically shown that they are coming. An example of a detailed sales analysis is shown on page 15.

Did your competitors do anything that impacted on your business? If so, what was it?

How did it affect you?

Are they likely to do it again?

What did you (or could you) do about it?

Budgets - income and expenses. This is extremely important and we will look at this in detail later in the document. Over the years these statistics will build an extremely accurate picture of your expenditure habits and sales that will show trends. With this information you can anticipate what is going to happen and proactively avoid any pitfalls or take advantage of upcoming opportunities. You can forecast - with a fairly high degree of accuracy - how much you will earn and spend in the coming year. While you might have an accountant to look after the "book keeping" for you, it is essential that you know exactly where your money is being spent and what your income is made up of.

The answers to these and any other questions relevant to your particular industry and business will give you a solid base upon which to build your plans for the future. Knowing how you got to where you are now can show you where you went right... and where you went wrong and gives a clear

Conclusions

Looking at the above information - what conclusions can you draw? For example:

What will you do again next year and why?

What won't you do again next year and why?

What will you do differently and why?

Were there any lessons to be learned?

What were they?

Did you spend money on areas that were unsuccessful / unsuccessful?

How much?

Was this money well spent? Why / why not?

Which products sold well / not well?

Will you expand your product line?

Are there any products you should discontinue?

Overview of Current Situation

It is very important to have a firm grasp of your current business environment. This is where you look at what is happening around you right now. Things that are happening that could potentially have an impact on your business. This will:

give you a clear idea of any issues that might get in the way of your plans in the foreseeable future

give you the opportunity and the time to take proactive action on any of these issues. This is much better than having to "react" to a change or problem that you didn't anticipate.

It's like having a high powered torch in a tunnel as opposed to a match!

A good overview of your current situation will involve looking at:

the business environment in which you are operating

your strong and weak points

what your competitors are doing.

Business Environment Analysis

What exactly does "business environment" mean?

At its widest view point it can mean the sum total of a number of external and internal factors that affect you and the organisation you work for.

External factors could include such things as:

Political issues. The stability of the Government can have a dramatic affect on the country's or state's economy.

Legislative issues. New legislation can have an impact on your particular industry.

Economic Trends. Are people spending money? What are they spending it on and so forth.

Social Trends. What's in.. what's not? Safety & security issues as well as environmental protection issues etc are considered here.

Competitors. What is your competition doing and how does that affect your business?

Technology. This is an area that is constantly changing and can have quite an impact on the way business is done.

Also known as a PLESCT Analysis this is a thorough look at the world around you and the influences various issues may have upon your customers, suppliers and therefore your business. Doing this type of research means that you should not be caught unawares by new legislation, trends, changes or advancements. PLESCT stands for: Political, Legislative, Economic, Social, Competitor and Technology and looks at each of these sectors and how they may affect you positively - or negatively .

Doing a PLESCT Analysis

Some of the issues to consider when doing this analysis can include such things as:

Political issues. Here you should look at the general political stability of the country or state.

Is there an election due? People get nervous around election times and are cautious about spending / investing their money

Has there just been an election? In which case is the new government likely to make changes to the status quo - and if so, how will this affect you?

International economic and social environment - how stable is the situation?

and so on....

For example changes in government often have an impact on businesses dealing with health, education and employment as existing programs are often changed or discontinued after an election, or new programs are introduced. International economic crises often have a big impact on our own market as does the increasing threat of terrorism or conflict situations.

Legislative issues

Have any new legislations been passed / or amended that affect your industry?

If so, what will you have to do to comply with them? How will these changes affect:

staff?

resources?

policies and procedures?

costs?

Do you need to obtain any licenses or permits?

For example all staff working in the childcare industry, or dealing with under 18's, must have a Blue Card, while industries dealing with tobacco or alcohol have very strict licensing laws.

Economic issues and trends

What is the current economic climate?

Does the current international climate have an effect on us?

Are people spending more / less money?

What are they spending it on?

Are they likely to spend it on your product or service?

For example, the cost of living is currently rising faster than wages - things such as petrol prices and interest rates are increasing rapidly and people are thinking twice about spending their hard earned money.

Social issues and trends

People will often be influenced in their purchase decisions by "what's IN", or may wish to keep pace with friends

Environmental issues such as water saving, conserving energy and so on can have an impact on people's purchasing decisions and so need to be considered

Cultural issues also need to be considered - people from different countries and backgrounds have views and customs that may dictate how they make their purchasing decisions.

Competitor information - This is a very important part of your business environment analysis - you need to know as much as you can about your competitors. Questions you need to ask are:

Who are they?

Where are they located?

How big are they (compared to you)?

Do they have any affiliations?

What are their promotional activities?

How do they advertise?

What do they advertise?

How does their product range compare to yours?

How do their prices compare to yours?

How does their service compare to yours?

What impact do they have on your business?

The answers to these questions will give you an overview of how you compare to them and what you can do to improve, and therefore win extra business.

If practical, a product/price comparison grid is an excellent way of keeping an eye on how you are faring against them.

It's also a good idea to also do a SWOT Analysis on your main competitors (next section) - you need to be able to:

counter their strengths

take advantage of their weaknesses

take advantage of the same opportunities and

maximise their threats.

Technology -

Is there any new technology available that will have an impact on the way you do business?

Is it viable for you to adopt this new technology from a cost point of view?

Can you afford not to adopt this new technology from an efficiency point of view?

What impact does the internet and electronic means of communication have on your business?

Internal influences also need to be taken into considerations and could include:

The overall economic state of your business. Is it doing well or not?

Change of ownership or management of the business. This could have a big affect on the internal workings of the company and the company morale.

Change of direction for the business. Are you offering new services or products?

Updating or upgrading of the business. New premises, new equipment etc.

Down or Upsizing. Are you laying off staff or hiring more?

Looking at the PLESCT Analysis and your internal influences in detail will give you a firm understanding of what is going on around you, and will help you:

avoid unpleasant surprises that could be costly and damaging to your business

stay a step ahead of your competitors

help you take advantage of new opportunities quickly

minimise the impact of negative trends.....

SWOT Analysis

A SWOT analysis allows you to have a deep down, honest look at your organisation in terms of its strengths, weaknesses, opportunities and threats and to look at ways to make you stronger.

Strengths

What are your organisations strong points? For example:

Do you have a great location?

Is it easily accessible?

Is it a long established company?

Does it have an excellent reputation?

Does if offer anything unique?

Do you have a lot of repeat business?

Are your prices the best?

Are you a market leader?

and so on.

Weaknesses

What are your organisations weaknesses? For example:

Is it a newly established business and not yet well known

Is the infrastructure in the surrounding area poor making it difficult for customers to get to you?

Are there any problems with suppliers or staff?

and so on. A point to remember is that not all weaknesses are negative and could be viewed as opportunities for improvement.

Opportunities

What opportunities are there that you could take advantage of? For example:

New legislation opening new markets to you

New housing or business developments bringing new customers into your area

New technology that will make your production or processes more efficient

Introduction of new product or service lines that will increase revenue

and so on.

Threats

What things could stop you from achieving your goals? For example:

A new competitor in the marketplace

A change in legislation that will mean major changes to your business practices.

Re-zoning of your area or roadways changing and taking customers away from their current routes (where you are located)

and so on.

Conclusion:

When looking at your SWOT Analysis what areas need to be addressed?

Strengths - what can you do to capitalise or maximise on them?

Weaknesses - what can you do to minimise or negate their impact. Which of them can be turned around to become a strength?

Opportunities - what do you need to do to take advantage of these opportunities? How can you ensure you get your slice of this opportunity?

Threats - what can you do to avoid or minimise the impact of the threat?

The answers to these questions will form part of your business plan.

Essential Items to Get Your Business Started Right

For entrepreneurs, coming up with an idea or concept for a new business is easy. However, many fail to take the proper steps to ensure the success and longevity of their business. I have compiled a list of items that are essential to every new business venture. Yes, these items take additional time, and yes the items require some work, but it's an absolute guarantee that completing these steps BEFORE you begin your business venture will save you the same valuable time, work (and headache!) in the end. Please do NOT set up your new business without these!

1. Business Plan

A business plan functions as a roadmap for your new business. Business plans can be very detailed. Detailed business plans can include target dates to track a company's progress, financial projections for upcoming years, scheduled events, marketing plans, budgets, dissolution plans, and any other category of information that a business owner wants in their business plan. By the same token, business plans can be very general and may only contain key information that the business owner considers important.

Whether detailed or general, business plans should contain enough information to keep the entrepreneur on track to achieve the goals and stated purpose of the business. The goals and purpose of a business are vital to a business plan because it helps the owner stay focused when developing new products and services, when undertaking new ventures, and when describing the business to others. This leads to one of the most important reasons to have a business plan- financing!

Any bank that lends money to a business requires a business plan and a detailed business plan at that. The same is true for angel investors, lending institutions and private investors. These individuals and entities want to know what your business is about, what your business plans to sell, how your business plans to sell it, and how it will benefit them in the long run. If you're not able to invest the time into a business plan, then your business will probably have a hard time finding an individual or entity to invest in your business.

2. Qualified People

Many people start small businesses with the dreams of starting family empires. While there is absolutely nothing wrong with this, it's very important that the people you decide to align with your company- whether as a board member, officer, or employee- are qualified. If you plan to open a restaurant, this does not mean that everybody that is affiliated with your business should have restaurant experience... but it DOES mean that you should have people with business knowledge, some with experience in the food industry, and some people who are extremely well connected to give you an edge over your competition.

Many investors give strong consideration to a company based on the team of individuals that comprise a company's board of directors, executive team, and employees. When considering who will hold key positions within your company, consider the person's reputation (both in general and within the specific industry), the experience the person has to offer, and the person's connections within the community and the industry.

3. Agreements

It amazes me how many business owners start their businesses without having any type of agreement in place. A company should always have documents that establish Agreementsbetween officers, employees, vendors, and any other individual and entity that a company enters into a business relationship with. These agreements don't have to be extensive, but should explain the expectations and the means in which the relationship begins and ends. Each business should also have a document that establishes procedures for important matters concerning the business, such as who maintains financial control of the company, the succession of officers for the company, and the addition and removal of officers. These documents are particularly important during situations where an officer leaves a company.

No matter how simple the relationship is, agreements are vital to maintaining peace and order within a business. The agreements take the guessing game out of determining what each party understood with regards to a business relationship.

4. Licenses/ Registration-

Another behavior that I have noticed in many new businesses is the absence of the proper licenses and registrations. This is highly dangerous and the absence of these items puts both the business owner and the business into serious jeopardy.

Every business must be registered with the state in which it intends to do business. Depending on the type of business established, this step provides a crucial level of protection, also known as the "corporate veil," which separates the assets, debts, and liabilities of a business from its owners. Having the business registered with the state informs that state of the company's presence and also lends credibility to the business when customers research the company. If somebody decides to sue your company (God forbid!), you want them to sue your company, not you as an individual. The failure to have the proper registration means that the business actually DOESN'T exist, therefore your personal assets are in jeopardy.

Having the proper licensure for a business is critical, especially for new businesses. The costs associated with some licenses can be expensive, because some licenses are regulated by the federal government, the state of the business, and sometimes the county. However, the costs for not having the proper license can result in hefty monetary fines and may even be severe enough to create criminal charges for the company and its owner.