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The Truth About Home Based Businesses That You Need To Know About

Home based businesses are a trending concept that continues to grow despite almost every other business industry suffering depression and lack of growth. What gives? For starters, the setup cost for home based businesses are extensively less than that of starting your own business. Also, most home based businesses have a pre-set system or “vehicle” in which the business owner can leverage to market and promote their products/services quickly and effectively. Most home based businesses also have a training system upon which new businesses can learn the “ins and outs” of the business system to become well-versed in their new craft pursuit of entrepreneurship. There are also additional benefits of a home based business that I don’t have time to get in to right now but you can read it on your own time written by AllBusiness.com.

The advantages of owning a home based business has its caveats though, and that is what is really the truth about home based businesses. (NOTE: For the purposes of this post, when I refer to home based businesses, I am referring to the network marketing specialty of home based businesses) As far as the fundamental principle is concerned, it’s this:

THERE IS NO SUCH THING AS EASY HOME BASED BUSINESSES!

Does that deflate “your mountain top”? If so, then that means what you are really looking for is a scam or pyramid scheme, because only those are considered and flaunted as “EASY” because the people that purport it as a “home based business opportunity” are just looking to dupe people in to paying them some sort of initiation fee. Then, they claim to “pay” you by basically taking someone else’s initiation fee and giving it to you as “commission”.

It’s a pretty low-life scheme if you ask me, but if think you can do that to other people and still be able to look at yourself in the mirror without an ounce of shame, then go nuts. Just promise me you will NEVER come back to my site again. We don’t want those kind of people reading our material; we only want to help those that want to genuinely be in business.

Look, owning a home based business and operating it to succession is not the most complicated process in the world. Is it easy? NO! But it doesn’t involve you deriving crazy algorithms and trying to outsmart systems that are already in place for your home based businesses.

What it does entail is that you need to put time and effort in it, just like any other business you would start from scratch. Home based businesses for the most part are much harder to get off the ground compared to a traditional brick and mortar business. However, you have to grasp the true concept of home based businesses:you are essentially setting out to work your butt off for a few years to fine tune your system and fill it up to a degree upon which once you step away, your system runs itself.

Sounds like the same deal as opening a series of chain stores of franchises right? Well, because it is! Home based businesses like network marketing involve the same ideals and concepts as that of a franchise, but with MUCH LESS CAPITAL INVESTMENT! The average home based business startup cost is around ~$500 – $2000, while franchises start at $50,000 up to $1,000,000 (for a McDonald’s, if you can find one for sale). If you are curious what your startup costs are, you can search for “Home Business Startup Calculators” on Google.

We are going to go “X-Files” on this deal and lay it down like it is:

- requires time (effective network marketers in the beginning will spend at least 8-10 productive hours per week dedicated to their business. If you don’t know what quantifies as productive hours, get with your team leaders and find out

- requires effort (you have to treat it like your baby in the beginning, and the best way to do that is to generate driven goals for yourself)

- involve continued capital: you will need to plan to spend extra on top of your initial investment to get some marketing and promo materials and strategies out in the open, especially if you plan to utilize advanced internet marketing techniques. Trust me, it’s not as much as you think… it’s peanuts compared to what you need to consistently put in to a traditional business.

- provide a training system that YOU must be committed to learning from. They are there for a reason, so leverage them to learn how to build a successful business from them and IMPLEMENT!

- are HARD WORK in the beginning because you are not on a huge budget like other businesses. You can either spend a lot more money to set up funnels and systems, or do it organically with your own blood and sweat. The choice is yours, but either way, you have WORK THE NUMBERS.

Hopefully, you don’t feel depressed about what we discussed in this post. We don’t prefer to sugar-coat things… and this time is certainly no different. Remember, you are an entrepreneur in your home based business. What that means is that you have two choices: work with everyone and pull your hair out trying to drag people along on your back, or dispense the information as it is and find the quality people that WANT TO WORK WITH YOU.

Business Loans Reviews – Basic Tips on Getting a Business Loan

It is quite often that a starting entrepreneur gets denied with an application for a loan. While others may be successful with their loans, they may also find themselves dealing with strings attached to the arrangement. In getting an application, business owners must realize that investors and banks operate under standard principles when lending money for business. Below are the basic steps that you should consider in getting that much needed loan for starting your business.

Know the Reason for your Business Loan

This is especially important for any starting businessman. While most may think that this step already goes without saying, some borrowers tend to be confused on why they need the loan on the first place. Applicants should identify the intended purpose, whether it is for replenishing capital or for facility expansion and equipment upgrades.

Know the amount

Business owners need to be clear and very specific on both the reason for the loan and the reason for the amount specified on the application. Even existing business firms may not be able to fully address the questions on why and how much not until they start preparing their financial statements.

Get expert advice

Those who are running a start-up business may benefit from the advice of experienced executives. If you are a small business owner, you may want to visit any local chapter of the SBDC or Small Business Development Center. This organization serves to assist any new and existing businesses. SCORE is another wonderful source for advice for any entrepreneur struggling with a loan application. This is a non-profit organization which mainly consists of volunteer retired business executives.

Know your credit history

Any owner of a starting business which is less than 3 years old will be subjected to a credit history evaluation by the bank or investor. It is often in this area where banks find a reason for denying a loan application. Therefore, it is important that you get your credit history in order. Check for any disputes and discrepancies.

Demonstrate credit worthiness

When a bank or investor evaluates your credit, there are generally four areas considered upon making the full assessment. The bank analyzes the business owner’s capacity to repay the loan. It is important for any applicant to specify how and when the loan will be paid back in full. The collateral is another crucial factor. This acts as a security for banks and investors. This can be any form of property owned by the applicant or business. Collateral can also come in the form of a guarantee that someone else will pay the loan in the event that the applicant cannot. The bank also considers the owner’s personal investment into the business. This is basically the capital and the banks will strictly evaluate the amount and overall quality of the capital that the business owner can provide. The personal qualities of the loan applicant are also considered during credit analysis. While this may seem subjective for most, banks place value on the overall character of the applicant. Everything from personal background, educational experience and professional experience in the chosen industry are evaluated when applying for a financial investment.

Know the economic conditions

The conditions that may affect an investor’s decision include the overall economic climate during the time of application. Undeniably, banks will view tight economic conditions as a challenge for any loan applicant to be able to pay back the investment. Furthermore, periods of recession also mean that banks will have a tougher time in funding every loan application that comes their way.

Review your borrowing options

It is best that you consider all the commercial banks available. While most are attracted to large national banks, regional institutions should warrant a priority spot in your prospective list. The chances of getting a loan are actually much higher when you got small commercial banks. Of course, there are other great options available. Business owners who are members of a local credit union can also consider meeting the loan officer in charge.

Make a solid business plan

A good business plan is one of your best weapons against loan application denial. Financial institutions will most certainly require a business plan along with the loan application. The business plan should be extensive and include relevant information on past and present financial statements. It should also include a clear market analysis for the business as well as your overall experience in that industry. The value of the assets to be used as collateral should also be distinctly indicated.

Being successful in your loan application requires transparency with all your relevant financial information. It requires a confident entrepreneur who has strategically planned out the business in all its key aspects.

The Top 5 Things You Need To Do To Start A Successful Business

So you’re geared up to start you own business. You have come up with the plan of all plans; so what’s next? Plan, Prepare AND Promote! Most people have great business ideas but let’s face it – everyone is not meant to be a successful business owners. Some people are meant to be employees. Now don’t get me wrong; there is nothing wrong with being an employee. You just need to know where you fit in the universe – the front office (as a business owner) or the back office (as a non-business owner).

If you are meant to be in the front office then I want to make sure that you set up your front office properly. So many people start-up a business to fail right from the start. Here are five things you need to start your business off successfully otherwise it is doomed for failure.

1. Run your business like a business. There really is not much to say to this. If you want to be a successful business owner you have to act like a successful business owner; dress like a successful business owner; and talk like a successful business owner.

2. Know what type of business you want to run. Before you do anything else, you need to know what type of business you are going to run. And by that I don’t mean the products and services your business will offer. I mean HOW are you going to operate – as a limited liability company (LLC) or as a corporation. Will you be the sole owner or will you have partners? These questions are important in helping to determine the necessary forms you need to file to establish your company as a business.

3. Register with the IRS. Once you have determined the type of business you want to operate you need to obtain a federal identification number with the IRS. If you have done step #2 already, you can properly answer the questions on the federal identification application. These questions help establish your year end and the type of tax forms that need to be filed annually.

4. Register with your state. The next step is to register your business with your local state office. Just like establishing your business with the IRS, this also will help you understand what state filings you need to maintain. In addition, in most if not all states, registering with the state allows you to ensure that you are the only business in that state operating under the name you chose for your business. You don’t want to be using a company name that already has a reputation, especially if it is not a good reputation.

5. Open a separate business bank account. One of the BIGGEST mistakes new business owners make is to not set up a separate business bank account. Co-mingling the company funds with your personal funds is a big NO NO! Yes it’s all your money, but not only will you be putting your personal assets at risk but you also will not be able to ascertain how much cash your business is really earning and spending. This is because in most cases, if the business owner is co-mingling their funds, they are also NOT maintaining good accounting records.