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Start A Home-Based Business Today

Since we were young, we were taught not only to go to school but to do well in it so that we can find a good job when we grow old. We have been programmed to work outside the home and working in the comforts of our home was not really an option. However, these days, this notion is changing as more and more people are appreciating the multifarious benefits of working from home. In fact, having a home-based business can be pretty lucrative.

Working 8 hours a day for 5 days a week may be ideal for some individuals. After all, nothing is better than having security. The pay is regular and you get health insurance. But for some that have 8-hour jobs, this set-up can really take a toll on them after many years of being in the same line of work, especially if the job does not offer any promotions. Dead-end jobs can kill a person’s passion and creativity. Some may even claim that their daily jobs suck the life out of them. As a result, many salaried men dream about starting their very own businesses and becoming their own boss.

If you are prepared to make the decision of finally quitting your job and starting you own business, here are some things to help you.

Choosing a Home-Based Business

First of all, you have to decide on the kind of business that you will be putting up. How can you make the right decision? You have to know that the options are countless but it is very important for you to pick the one that suits you best. That means that you have to choose the type of business that you can personally handle. You need to have some background knowledge about it and some experience with it as well. Another very important factor to consider is interest and passion for this kind of trade. If you have a skill, then you can use that as a basis for starting your home-based business.

Preparing For Your Business

Starting your own business is never easy. There are many things that you have to accomplish in order to be fully prepared. Perhaps, the one of the most important detail to prepare is the capital. Needless to say, you need money in order to start your own business. But don’t worry because you can get a business loan from any bank. All you need to show them is feasible business plan, so will have to prepare for that too. The business plan is very important as this will serve as your ‘checklist’ for all things that you need as you go through your plans. Since you are starting a home-based business, make sure that you prepare a work station somewhere in your property where you can concentrate and not be disturbed. This work station is also where you keep safe all the tools for your trade.

Starting a home-based business is may be hard, but it is not impossible. With the right attitude and hard work, anybody can say goodbye to their daytime jobs and be their very own boss.

Common and Quick Business Valuation Methods

There are many ways to value the actual worth of a business. The Business Valuation Industry uses a wide array of methodologies. Business owners have their personal assumptions about what their businesses are worth. Here are 5 common and quick business evaluation methods you can use to determine the value of your business.

The Book Method

This method is based on the current market price of assets. For instance, when a buyer is looking into purchasing a company, he might consider the stock certificates. A buyer may not have full access until he has paid off some of the liabilities incurred by the company. But it is also possible for the buyer to possess everything outright. However, these issues are not cast in stone. They vary from one transaction to another. By using the book method, both the buyer and seller agree on a fair market price for the assets.

Rule of Thumb

ROT or Rule of Thumb is great for small and medium-sized enterprises. An evaluation is basically made by comparisons. It is a simplification method that is not accurate and should not be fully considered because it might not be correct. However, it gives a rough estimate of how much a business might actually be worth by comparing it to a similar business.

The Internet has made everything easy. It is possible to view businesses listed for sale and get an idea how much you own business is worth. But keep in mind that most businesses would not sell at the actual price that they quote in these listings.

PFA Price

This is a Plucked From Air approach where guesses rule about the pricing of a business. This is done without considering any of the formal valuation methods. The danger of using this method is that one can undervalue the actual cost of a business and sell it for cheap. Moreover, an owner might value his business at a price not exactly consistent with the marketplace thereby making it impossible to be sold or acquired by another person.

Net Cash Flow

The best means of knowing the worth of your business is to calculate the most recent annual and profit loss statement. This helps to determine the purchasing power of the business and gives a realistic picture of the cash flow that is being generated by the business. Once the figure has been determined, multiply it by number of business categories.

Keep in mind that these evaluation methods offer a cheap and quick idea of the value of a business. They can be used as a benchmark for selling a business. Though in the long run a business is always worth more than what someone wants to actually pay for it.

The Small Business Owners Guide to Outsourcing Effectively

If you are a small or medium sized business and you wish to stay competitive in the marketplace you need to be outsourcing some of your business activities. Outsourcing is when you contract another individual or company to perform some of your company’s business services.

The amount of time that you will spend on tasks such as scheduling travel plans and meetings, answering your phone and taking messages, creating a web design and bookkeeping on a daily basis can now be minimized significantly. The additional time that you will now have available to devote to bringing in business more than justifies the dispensing of these duties to outside contractors.

There are three tasks that all small or medium sized business should always outsource: the scheduling of business travel, bookkeeping and web page designs including a company’s social media and blog pages.

Travel Plans

The first task that a small or medium sized business should outsource is travel plans. This business function can be expertly performed at a very small cost by online virtual assistants who will not only find the best flights available but will provide a list of hotels, car rental agencies and restaurants according to your requests.

When you outsource your travel plans you are provided with a list of options by email that make the decision process a two to five minute endeavor instead of one that might take one to two hours at a minimum and much discussion between you and a human secretary.

Also, the cost of this service might be $5.00 as compared to how much more money your company would lose by having a business owner or human assistant perform the same task.

Bookkeeping

The second task that a business should outsource is bookkeeping. Unless your company is an accounting company there is no reason for a business owner to devote the large amount of time that is required to deal with itemizing the daily transactions of a business.

A business can easily go online and find bookkeepers within your area that can perform the bookkeeping functions that you need at competitive costs. Another bookkeeping outsourcing option is the use of computer software programs that are paired with a contracted bookkeeper who will perform your daily transactional functions and any other financial tasks needed to help a business owner keep track of their income and cost expenditures.

Web Work

The third task a company should outsource is the design of their internet web page, social media page and blog.

In today’s business world these three business components are essential to the visibility of a business. However, the creation and maintenance of a web page, a social media page such as Facebook and a blog will take many hours out of a business owner’s work day.

These activities can be outsourced to individuals who are experts in the use of each of these business marketing tools and they can and will create the required marketing pages in a faster, more effective and professional manner than the small business owner who will do everything but in the process becomes an expert at nothing.

Whether it is a college student or a freelance web page designer, there are an incredible number of individuals who can perform these tasks for a small or medium sized business at a minimal cost. A business owner who pays an outside contractor to create their company web page, a Facebook page and a blog will save the most valuable resource a business owner has, their time and also money.

Instead of a business owner taking time away from finding new clients to create these marketing components and learning how to do so in the process a business owner will be able to focus on generating new business that can help their revenues and improve their competitive business position in the marketplace.