Archive for

Thinking About Starting a Business?

I have been fortunate to be able to share this information with many people and that has allowed them to have a solid business that they can depend on for the rest of their lives.

5 Questions to ask yourself when thinking about starting a business

When we go on the Internet these days looking for a way to create some extra income we find so much information that we can become quite overwhelmed and most of the time this is when people make a decision or they stay on the fence so to say . I call this indecision and this is the killer of dreams because this is where most people stay their whole lives and nothing ever seems to change for them and they don’t know why

I could go on forever on this subject but that is not what I’m here for today. there are many things to consider when starting a business that most people don’t think about and I want to share just a few. You should ask yourself what it is you are looking for. Once you have defined this then you have a pretty good idea of what to look for. Ask yourself these 5 things.

- How much time can I devote to a business?

- How much am I willing to invest in my future?

- How much money do I want to earn?

- How soon do I want this amount?

- Am I really committed to making the necessary changes?

Now let me expand on these few simple sounding questions and soon you will see how it all comes together.

Let’s say for instance that you really want to start a lawn care business and make some real changes in your life and you decide that you can work 5 hours per week every week and you are willing to invest say $300.00 into your business with a goal of earning $5000.00 per month and you want to do this in about 60 days.

So you get yourself a mower and go around your neighborhood and pickup several jobs and start working your 5 hours per week and say it comes to $20.00 per hour at the end of your first month you have earned a total of about $400.00 And you see that there is no way you will reach your income goal this is when most people will give up and quit.

Now let’s say you are really committed to your goal and you take a different approach you devote as much time that is necessary and instead of buying just a lawn mower.

You purchase a commercial mower, edger’s, trimmers and all the necessary items needed to perform your job you also get yourself a handy trailer so you are not confined to one area and you get a truck to pull your trailer. Now you can begin to see with this scenario you will be able to reach your goal of $5,000.00 per month much faster , that is, if you do a good job and stay consistent.

So hopefully you can see how these few questions can help you make an educated decision. Now I’m not saying that you have to invest a lot into your business.

What you want to understand is that your commitment and expectations need to be in line with each other and all you have to do is make an adjustment. Either increase your commitment or lower your expectations. When these do not line up it causes most people to shut down and push their dream aside once again because they become all about problems instead of solutions.

It is possible to start a business on a budget and increase our investment as we grow and finding more time to work understanding that our goal has become long term and if we remain committed and consistent we will get there it will just take longer. I hope this will help you decide if owning a business is right for you.

Evaluate Tenants and Reduce Your Risk

We own an office building on Long Island that houses are own offices, as well as several tenants. We recently had a tenant close his doors after only a single year of occupancy. How do we avoid this in the future?

As a landlord, you will be investing thousands of dollars in securing a new tenant for your vacant space. The expenses will include the tenant workletter, legal representation and brokerage costs at a minimum. How do you minimize the risk of your investment?

While every lease is different, the methods for protecting your investment are similar in most transactions: Securing the upfront expenses, evaluating references, and inspecting the current premises of the proposed tenant.

An entire book could be written on the various forms of securing a lease; that is providing a monetary remedy for the landlord in the event of a default by the tenant. This can range from a typical two or three months security to a full-blown guarantee of lease payments. The important aspect however is that there is a high correlation between the risk of the investment and the security. In every case, this should include a review of financial statements. If you are not capable of reviewing statements to evaluate risk, it should be professionally done. A landlord simply needs to know that his risk is adequately covered.

Requesting references from your prospective tenant is somewhat limiting in that it is unlikely that a tenant will provide you with references that will issue a negative report. However, talking with references will give you a good sense of the tenant’s business and how they go about meeting their obligations. You certainly want a bank officer for starters. And, of course, you already have a good indication of problems if the prospective tenant either refuses to provide references or can only come up with a few names. And a list of references is worthless if you don’t pick up the phone and call them!

One of the most important, yet overlooked, means of evaluating tenants is a visit to their present operations. I could not even begin to list the questions and answers engendered by my site visits in thirty-three years of commercial real estate transactions. One visit will illustrate the present operations of the company and how they will fit into your vacant space; the number of employees and parking required; special requirements of the company; the condition of their present space and quality of maintenance (or lack thereof); the overall mood of the company (Busy and growing? Struggling and contracting?); and the philosophy of the company as reflected by their employees. The list is endless. If nothing else, your visit will raise questions that simply would not have occurred to you otherwise. Insist on a site visit, even if the tenant protests that their present space is not representative of the new lease.

Many landlords, especially those who have endured vacant space for any length of time, may be tempted to minimize or skip entirely some of these means of evaluating tenants. Don’t be one of them. If the prospective tenant is bad news, better to find out now rather than six months after you have invested thousands of dollars signing a lease, paying a broker and building out the space.

A Second Look at the MLM Business

Multilevel marketing or MLM Business, before it was made synonymous with pyramiding schemes, is a legitimate and can be a viable business plan. It is a strategy where one person who is selling a product builds a network of like-minded entrepreneurs (the “downline”) and gets commission from their sales as well as from his own personal sales.

MLM business was never a bad idea, per se, because it was flexible, accessible to almost anybody who can invest (and often times not that much investment is needed, nor a lot of academic background), and it cut down the prices for the consumers by a good margin.

Two-Way Street
The fastest way to get from point A to point B is a straight line; this is the idea upon which the MLM business is built upon, so when you buy directly from an MLM business entrepreneur and you get the product cheap, don’t immediately assume that you are losing out on quality. You’ve just been able to cut the expense of going through the middleman, lessening the overhead costs of keeping a shop front and advertising. This means two things that the MLM business is able to achieve – bring the price down for the consumer and make it accessible for the small manufacturers to bring their goods to the market at minimum cost.

Remember the Tupperware parties that moms used to have? Or the visit from the AVON lady? Those were some of the pioneers of the MLM business trend, and they certainly didn’t gyp anyone, did they?

Picking the Right One
Choosing which MLM business to invest in can be a tricky thing. On one hand, it is very tempting to want to make big money with a least amount of effort, and the pyramiding schemes that pretend to be legit MLMs are taking advantage of this. Make no mistake, a legitimate MLM business will take up a lot of your time and effort, and you will need a lot of help, often times from the “warm” market of your friends and family.

If the profit of the MLM business that you are looking at depend mostly on how much “downline” you can build and not concentrate on the sales that you yourself make, chances are it is a pyramiding scheme, and you are best served to stay away from it.