Economic Advantages of Being in the Home Based Business Industry

Working from home cuts overhead expenses. Owning a home based business saves a lot of money because you don’t have to spend large amounts of money on rent, new office furniture or business attire. Just cutting these three expenses from your budget can save you well over a thousand dollars each month, dramatically increasing your residual income. It doesn’t matter if your office is in your bedroom or at your dining room table.

With today’s web conferencing technology you will rarely need to leave your home office for a business meeting.

Calling all retirees! Baby boomers are struggling with retirement decisions because of the economic downturn. Many people reaching retirement age had large sums of money in the stock markets. Since most of their investments are now worth only a percentage of what they were just months ago, a lot of baby boomers do not have the financial means to retire. An online business opportunity can be just what these near-retirees need. They can work from the comfort of their own home, have a flexible schedule to enjoy some of the benefits of retirement and be able to save their money, eventually achieving financial freedom and completely retiring.

These are just two of the several advantages to being in the home based business industry. Having a personal relationship with your customers, building alliances with other small businesses and even partnering with your competition are all other advantages to owning a home based business. Best of all, with a struggling economy, you are your own boss. If you have a tough month you do not have to worry about paying someone else or answering to a boss. You have the freedom to make the best business decisions for your company. The economy may be struggling but your business most certainly does not have to be.

Start Up Business Financing – Are You in Search of Finance For Your Business?

The initiative of starting up a business is something very good. But the simple notion of starting up a business is sometimes plagued with certain thoughts of indecision or thoughts of canceling the whole idea of starting up a business. What is known is that a lot of people are afraid to get into business because they are troubled of losing. This is because they might have previously experienced losses or might have seen others fail in business. It should be kept in mind that most of the failures often experienced in business are failures related to finances.

The fear of losing should be something inherent in every business owner and particularly to those just getting into business. This fear is also experienced by those already established in business. But in most cases, they are very worried about sources of finance for their businesses.

One of the main ideas at the back of this article is to identify the various sources of financing a business as well as identify the various tools to take the business through to a stage of profit maximization. How can you seek for the finance necessary to run your business?

Loans

Loans are one of the commonest forms of securing finance for the business. Loans are commonly obtained through commercial banks and these will normally be made available to those who can show some convincing form of credit worthiness. However, the conditions over which loans are given will vary from one lending institution to the other.

One of the best ways to approach these lending institutions is to come up with a business plan which can be appreciated by the lending institution and also establish that your proposal has the least form of risk that can be thought of. Keep in mind that banks will prefer to put their money where they realize that risks are minimal or insurable than where risks cannot be insured. You must also make sure that you are a legal entity and that you have the necessary collateral to secure the loan.

Angel Financing

This is a type of scheme in which you will normally come up with a business program and present it to an individual or group of individuals who are willing and able to provide the necessary capital for the running of the business. It is common to find such groups working in a network today. You will also have to know about the various networks and how they function ahead of seeking financing from it.

Angel financing is also sought for and will be provided to businesses with very high risks. This will also warrant these financiers to demand for high returns on their investments. In most cases, what they stand to gain will be twenty or thirty times above the value of what they put in. This is a very expensive form of financing but it is probable that it can be made available to young business owners with businesses that have a high probability to expand. If you cannot get the required financing from a lending institution, you may opt for this form of financing.

Financing From Venture Capitalists

Venture capitalists are investors who gather money with the aim of putting it in businesses that are still at their inceptions or businesses that are experiencing insurmountable financial hurdles. Such business may lack the capital or personnel to direct the business and they may also be involved in businesses that have high prospects of making huge profits. However, those who provide finance under this type of scheme will want to have a considerable measure of influence over the affairs of the business. Business owners should therefore be wise enough on the amount of influence which they will accord to these investors.

There are other sources from which finance can be provided to the business. The business may decide to sell some of it shares to the public. It can also opt to sell what it acquired in the form of assets.

Successful Apartment Ownership Requires Efficient and Quality Maintenance

Since a professional team is so important to your success as a real estate investor and, more specifically as an apartment owner, I would like to wrap up this article series on how to use these team members in a little more detail.

Just to recap, some of the essential team members that you’ll want to have in place include:

· Bird dogs
· A real estate agent or agents
· A commercial mortgage broker
· A banker (one or more)
· A title company or closing attorney
· A real estate attorney
· Private lenders
· An SEC attorney (if part of your business includes securing private funding)
· An asset protection attorney
· An accountant or CPA
· Property management companies
· Contractors

Contractors are the behind the scenes magicians that can really aid your overall cash flow in the long run as an apartment owner. Units that are in need of complete renovation or simply a few updates do nothing for you if they are unrentable. A good contractor (or collection of them) can minimize the time that units in need of some fixing stay vacant, thus optimizing your income from your properties.

Finding contractors who both do good work and do so in a timely manner can sometimes be challenging but remember that it is a tougher economy out there right now and people are looking for work. Make sure your contractors are necessarily bonded and insured and don’t be afraid to move on if someone does poor work or, worse yet, shows up late or not at all. It is your business and you have every right to expect quality and timely work.

I suggest having a variety of contractors at your disposal. You won’t need all of them all of the time (at least you hope not) but there is something to be said for specialization. Maybe you’re replacing carpet in your units as they turn over from one tenant to another. A professional carpet installer might be a perfect fit for getting a couple of units done at a time. You could make similar arguments for plumbing, electrical work, painting, etc.

Some contractors will claim they can do it all but you rarely need it all when managing apartment units. For assorted odd jobs, a good handyman is always a good bet and they can be great allies when tenants call with fix it items. It is both easy and practical to have budgetary limits set with your property management company so they can coordinate with contractors as needed for small jobs and avoid you getting bombarded with calls for ‘nickel and dime’ issues’.

Remember, this is a business and, as a business owner, it is both reasonable and advisable to delegate as much as you can so you can actually enjoy the fruits of your labor. As we conclude this more detailed article series on your professional team, remember that just about all highly successful business share a common mindset. Success is a state of mind that is shared by few but for which principles are more freely shared than you might think. Make the acquaintance of wealthy people and pattern your own business after what they have done. This is one of the most basic secrets of becoming wealthy beyond your wildest imagination. Now that you have heard what I have to say about building a team, the next step is to find the deals that will help you build the fortune that is out there for the taking!