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A Home-Based Business Online
Practical home business ideas, strategies
and resources for the work-from-home
entrepreneur
April 23, 2001
Sent to 9,424 Subscribers
Editor: Elena Fawkner
Publisher: Fawkner Publishing
http://www.ahbbo.com
Contact By Email
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IN THIS ISSUE
1.
2.
3.
4.
5.
6.
7.
8.
9.
1.
Hello again and a warm welcome to all the new subscribers who
have joined us since the last issue!
This week's article is about an alternative to starting your own
business from grass roots. If you're looking to escape the
ratrace and want to work for yourself, have you thought of
buying your freedom by buying an already-established business?
Think it's too expensive? Not necessarily. In fact, the most
expensive option of all may be to start from scratch.
As always, thanks for reading and I hope you enjoy this week's
issue.
Remember, this ezine is for YOU! If you have comments or
suggestions for topics you would like to see addressed, or would
just like to share your experiences with other subscribers, I want
to hear from you! Please send comments, questions and stories
to Contact By Email .
Yes! You can make thousands of dollars on the internet. I'll teach
you my simple system. This is a home business you'll be proud
to own. It's fun and very rewarding. Free newsletter: "How to
Really Make Money on the Internet".
(15/16)
2.
Many people avoid preparing a formal business plan because
they are intimidated by the size of the task or they don't know
where to begin. While they may avoid preparing a business plan
for so long as they are the only ones who will be referring to it,
when the need arises to raise finance for their businesses,
suddenly the necessity for a properly prepared and researched
business plan can no longer be avoided. At this point, the
business owner may seek the services of a professional business
plan writer.
If you have a background in finance and/or management you may
have the potential to be an excellent business plan writer. There
is certainly no shortage of quality resources available on the
internet if this interests you, ranging from the nuts and bolts of
putting a business plan together to software to make business
plan generation a snap.
Useful resources:
=> Sites
About.com http://www.about.com (Type "business planning" in
the search box. An EXCELLENT resource.)
=> Software
Plan Ware - Business Planning Software
http://www.planware.org/saleplan.htm
=> Books
The Business Planning Guide: Creating a Plan for Success in
Your Own Business by David H. Bangs
The Complete Book of Business Plans: Simple Steps to Writing
a Powerful Business Plan by Joseph A. Covello Brian J. Hazelgren
Writing Business Plans That Get Results: A Step-by-Step Guide
by Michael O'Donnell
-----
There are many more ideas like this at the AHBBO Home
Business Ideas page at http://www.ahbbo.com/ideas.html
with more being added all the time.
50+$ to 150+$ per sale+OVERRIDES & BONUS'ES (MLM)
Some are making over 250K a year - IT'S UP TO YOU!!!!!
http://www.prepaidlegal.com/go/dlsimpson
NYSE-Symbol PPD a public company.
My Email mailto:dlsimpson@prepaidlegal.com
(3/4)
3.
© 2001 Elena Fawkner
If you're reading this article, it's probably because you're one
of millions of people who dream of breaking free of indentured
servitude to make it on your own in a business of your own.
When it comes to making the break from the paid workforce
to business ownership, you basically have two choices: to
start a new business from scratch (often in your basement
during the wee hours since you have to continue to work
full-time in your Just Over Broke J.O.B. to pay the bills until
your business gets off the ground) or to acquire an existing
business.
In this article, we look at the advantages, disadvantages,
traps (and how to avoid them) and issues to be borne in mind
when buying an existing business.
ADVANTAGES
There are many advantages of acquiring an existing business
rather than creating one from the ground up, including:
=> Less Risky
If the business has been around for a reasonable length of time,
it's survived the dreaded first cut - that alarmingly high proportion
of new business ventures that fail within their first couple of
years.
=> Proven Concept
One of the most nail-biting parts of starting a new business
is the worry that, while you THINK your idea will fly, you're
really not sure until it's time to leave the nest. Acquiring an
existing business should give you comfort that the idea behind
the business works.
=> Existing Customer Base
Without a doubt one of the most difficult, expensive and time-
consuming duties of a new business owner is cultivating a
customer base. When you acquire an existing business your
customer-base is ready-made and you can hit the ground
running.
=> Predicting Future Growth
An existing business has a track record. You can review
profit and loss reports, prior year tax returns and other financial
information to see how the business has developed over time.
This gives you an informed basis from which to predict the future
growth of the business.
=> Reduced Need for Working Capital
With an established business you have immediate cash flow
from the business's existing revenues. This means you only
need enough working capital to meet day to day requirements,
not a great wad of cash to see you through the first slow,
painful months until you start generating cash which is invariably
the case with a startup.
=> Existing Suppliers
Just as an existing business comes with a ready-made customer
base, so too it comes with a ready-made supplier base and
history of dealings. These suppliers will be keen to retain your
business and so you will probably save a lot of time and expense
that you would otherwise have had to expend to sort through
competing supply terms. Existing suppliers are more likely to give
you a good deal off the bat.
=> Capital Raising
Obtaining finance will also be less difficult (note I didn't say
easier!) since you will be able to point to a track record.
DISADVANTAGES
The main disadvantage of an established business compared to
a start up is cost. At first blush, acquiring an existing business is
more costly than a startup. Over time, of course, it may turn out
that a startup is a much more costly venture, especially if that
startup venture fails.
ISSUES
Assuming that you decide an existing business may be for
you, what do you need to think about?
=> Deciding on the Type of Business That's Right for You
This is a very personal decision and will depend on your answers
to the following questions, among others:
* Why do you want a business as opposed to a job?
* What special skills and background do you bring to the table?
* What is the nature of your work and/or business experience?
* What are your hobbies and special interests?
* How much can you afford to invest as a downpayment?
* How much money do you need to generate to meet your living
expenses?
=> Finding the Business That's Right for You
Once you've decided on the type of business that you want to
acquire, it's time to start the hunt. The most efficient way is
to engage a business broker. Most vendors of businesses
list their businesses with brokers rather than attempting to find
buyers themselves. For this reason, you'll most likely find that
the business that's right for you is listed with a broker.
You could, of course, also directly approach the owner of a
business you're interested in buying to see whether there is any
interest in selling. Depending on whether you're in a buyer's or
a seller's market, you may put yourself at a negotiating
disadvantage by doing this. Only make such an approach in a
buyer's market.
=> Financing Your Business Acquisition
Probably the biggest hurdle you will face is getting finance for
your small business acquisition.
Here are your basic options:
* Vendor Terms
Sometimes a vendor will be willing to sell you the business on
terms. For example, a 10% downpayment followed by future
payments from the cashflow of the business. The vendor will
usually retain a lien over the assets of the business until the
purchase price is paid in full.
* Loans
There are various sources of loans. For small businesses, your
best bet is probably not the major financial institutions. Try instead
loans guaranteed by the U.S. Small Business Administration (or
the equivalent in your country if outside the U.S.) and community
banks.
* Third Party Loan Guarantees
If you're short on security, consider the possibility of a creditworthy
friend or relative acting as surety.
* Credit cards
Credit card financing should generally be treated as a last resort
but utilized judiciously, credit cards can be useful for cash flow
purposes so long as the outstanding balance is paid off each month.
Don't use them for asset purchases though.
* Family and Friends
Not a good idea for everyone, but consider asking family and friends
to invest in your business.
* Asset Sale/Leaseback
Another good way to raise cash is to sell an asset you have
acquired as part of the business to a friend or relative and have
them lease it back to you. You free up your capital and your
friend or family member has an asset-backed security.
* Redeemable Preferred Stock
A good option if your business is held by a corporation and
you are prepared to give up ownership equity in exchange for
capital. There are securities issues to be aware of here so be
sure to consult your lawyer.
=> Cashflow Considerations
Be sure the business generates enough cashflow to cover:
* operating expenses;
* your salary;
* financing costs; and
* a reasonable return on investment.
TRAPS FOR YOUNG PLAYERS
If your acquisition takes the form of acquiring the shares in a
corporation rather that a simple asset purchase, beware. In
these circumstances, the legal entity doesn't change, only the
shareholders do. This means that if the corporation has any
undisclosed debts, pending lawsuits and the like, these can
still be sheeted home to the corporation despite the change
in shareholding.
In addition to these traps for the unwary, beware also of
overstated earnings, poor employee relations, overvalued
inventory and uncollectible receivables.
AVOIDING THE TRAPS
Fortunately there is much you can do to flush out these
hidden traps before you commit yourself.
=> Get Professional Advice and Assistance
First and foremost, do NOT attempt to acquire a business without
the professional assistance of your lawyer and accountant.
=> Contractual Indemnities
Your lawyer will not doubt try to include provisions in the purchase
and sale agreement whereby the vendor indemnifies you for any
liabilities accruing prior to the dale of sale. The effectiveness of
the indemnity as a protective mechanism depends on the solvency
of the vendor.
=> Due Diligence
The best way to protect yourself is to educate yourself about
exactly what it is you're getting yourself into. Your lawyer will guide
you through the due diligence process which is nothing more
mysterious than asking the right questions and making sure you
get the right answers.
Here's a checklist of things that your lawyer will help you do
during the due diligence period:
* Find out why the seller wants to get out of the business.
* Review operating information.
* Review all contracts to ensure there are no hidden liabilities.
* Get a list of all the assets being sold including fixtures and
equipment, patents, copyrights, trademarks etc. and make sure
they are free of all encumbrances.
* Get a schedule of all the debts of the business that you will
be assuming.
* Check the company's articles, bylaws and corporate minutes
to ensure the company is what the vendor says it is.
* Check to ensure the company is in good standing.
* Get a list of shareholders as well as any special rights, stock
transfer restrictions and pledges that may exist against the
assets of the business or the stock.
* Check all financial documents including bank statements,
audited financial reports, and bank and financing agreements
to ensure there are no undisclosed security interests.
* Physical inventory and inspection of all assets.
Acquiring an existing business is a major undertaking and one
which must be accompanied by competent, professional advice.
Assuming that you complete thorough due diligence so that
you understand EXACTLY what you're acquiring (liabilities as
well as assets), you may well find that despite the funds you
invest, it's the most cost-effective way to go!
------
** Reprinting of this article is welcome! **
This article may be freely reproduced provided that: (1) you
use the autoresponder copy which contains a resource box;
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4.
by Steve Manning
Since these segments began five weeks ago, a lot of things
have happened. Previous students who have ordered my
"How To Write A Book On Anything in 14 Days" success
program have done great things. One of my students is
scheduled to appear on the Oprah show in the next 60 to 90
days! Another has just got an endorsement for his book from
both Brian Tracy and Mark Victor Hanson (Chicken Soup for
the Soul)! My manual showed him how. A third has just got
a contract from a major publisher to publish her first novel.
Another is using his book as a 'credibility ticket' to establish
himself with future clients. He says his book is worth $100,000+
a year to him. Just another topic in the success system.
Each one of them was once exactly where you are right now.
Knowing that a book would be important to them, but really
not knowing how to write it, or write it quickly!
They took the information I provided in my writing success
program, "How to Write A Book On Anything in 14 Days or
Less... Guaranteed!" and made it happen.
Now I'm asking you to do the same. I'm asking you to finally
say yes to your dream of writing a book, and yes to the benefits
that come with that accomplishment. The notoriety, the celebrity,
the financial and social rewards, the recognition and the sense
of accomplishment. I'm asking you to order my writing success
program because I KNOW it will give you the results you've always
wanted. Besides, there's no risk to the program. You can always
get your money back.
Right now, before you do another thing, go to
and read the
Special Report. If, after you read the Special Report, you STILL
don't feel that this program will give you everything you wanted,
then I want you e-mail me at
mailto:steve@writeabooknow.com?[fawkner]subject=nope! and
tell me why. Maybe I can come up with a solution for you. Some
of my students have mentioned that the price, $297, is a bit steep
for them all in one go. I've got a very interesting solution I've
developed!
Next time I'll be talking to you about creating your own, unique,
technology! I look forward to hearing from you.
Cheers,
Steve
------
You can receive daily instalments of Steve's free Write-A-Book
tutorial by signing up at his website.
Click here to go to Steve's site:
------
Steve Manning is author of "How to Write A Book On Anything
In 14 Days Or Less ... Guaranteed! -- An Expert's Step-by-Step
Guide".
HOME-BASED TRAVEL BUSINESS
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in the New Online Travel Industry.
http://www.qksrv.net/click-763118-893018
(3/4)
5.
TIP #1: Windows 98 bogged down and running like a snail?
Try unloading some of the stuff that loads on startup!
USE THE SYSTEM CONFIGURATION UTILITY
Programs that load upon startup require system resources
(a special memory location). Multiple startups suck up precious
resources, and can cause Windows to creep. To check what's
happening, type 'msconfig' into the Run dialog box from the
Start Menu. (Don't type the quotes.) Then click the Startup
tab. Uncheck everything but 'Explorer' and 'Systray'. There's
a list of stuff and what it does at this web site:
http://www2.whidbey.net/djdenham/Printerdesktop.htm
TIP #2: Cycle through open programs with the keyboard.
If your fingers are already doing the walking, why grab the mouse
to view a new window? Just hold down the Alt key with your right
hand, and press the Tab key. Keep the Alt key down while
releasing the Tab key. You'll see a popup window with icons
representing your open programs. Release the Alt key to open
the window associated with the icon that's highlighted in the
popup window. It works like magic! Speaking of magic, have
you seen Keyboard Magic!? http://newbieclub.com/keyboard
------
Tips by Tom Glander and Joe Robson of The Newbie
Club. The best Newbie Site ever to hit the Web.
http://newbieclub.com/?start_here
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A Home-Based Business Online
Contact By Email
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