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Living in the Philippines – Best "Passive" Businesses to Start

Living in the Philippines – Best "Passive" Businesses to Start

For those OFW’s and foreigners wishing to start a business, but not wishing to involve themselves with the stress of a business involving day-to-day operations, employees, landlords, inventory, and so forth, there are several available opportunities for foreigners living in the Philippines. Buy fixer upper properties, improve them, then rent or sell them.

1. Buy Fixer Upper Properties, Improve Them, Then Rent or Sell Them. This is a great business for those of you who have experience in your home country in buying, fixing up and renting or selling properties. Over the past 10 years, a lot of people got involved in this kind of business in their homeland.

With the overall economic problems in the world the past couple of years, the Philippines has not been immune, and there are a lot of properties in a state of disrepair, as well as lot of distressed and foreclosed properties.

2. Build An Apartelle. An Apartelle is an apartment building where all but one of the units are rented out long term, and you are left to operate on a nightly or weekly basis, like a hotel – hence the combined name of apartelle. These are common in the Philippines.

This business will require a heavier capital investment, yet with the right property and by focusing in the more rural areas or smaller cities, you can construct a small 4 unit apartment building for Peso 3,000,000 – not counting cost of the land.

You would want to rent out 3 units on a long term rental basis, and keep one for short term rentals – for the many traveling salesmen that frequent the countryside. They like booking into such short term apartelle units rather than the much more expensive hotels in the area.

3. Condotels. I have not given this business my “thumbs up” in all instances. Condotels have been heavily touted and promoted the past several years and there have been many, many new condominiums built in Manila, and now even in Cebu and starting in Davao.

The problem is that although the developers offer great down payment terms (usually around 30% down financed over 3 years) and in some cases carry back the mortgage and finance for perhaps 10 years, the interest rates are incredibly high, and the split of rentals with the management team runs around 50%/50%. There is also always a nominal monthly maintenance fee.

What looks like “cheap” entry point and cash flow out each month, in many cases simply becomes a bet on long term property appreciation – finding someone willing to pay you more for it than you paid for it.

This is because with all the inventory on hand, there is a surplus of condos which have been into hotel type rental pools, but not enough visitors to rent them all.

Consequently, what an investor thought would be a good positive cash cow, turns out to be a continuous negative cash flow – not what a new retiree to the Philippines is looking for to supplement his pension or annuity! This type investment will only drain you pension.

However, having written all this, I HAVE FOUND the past several month two exceptional condotel investments which DO meet my criteria of creating good ongoing rental income.

4. Farming. The likely cessation of the Agrarian Land Reform Program (CARP) will give the rural sector renewed confidence to invest in agricultural production capacity. CARP has held back investment in both production capacity as well as farm acquisition. An end to CARP will mean higher land prices since land will be valued for its higher income producing potential.

However, higher land prices are simply a “serendipity”, an added value, to the type of farming business I am writing about. I have found an extremely unique business opportunity, which will generate a great ROI (return on investment) and is completely passive. It has been structured by the developers (all foreigners) to be a one turnkey investment price. The price includes cost of the land, plus all

Clearing, planting, cultivation and harvesting for the first 5 years.

The business has been priced to fit the capital investment budget of the average foreigner retiree, and all landowners will be members of a cooperative which will share the farming equipment (tractors, equipment shed, and others). The farm will be “farmed” by the developer’s management team

The hottest trend now is in organic farming, and yet it is only in its infancy stage in the Philippines. There is one export product in particular which has caught my attention – the pili nut. The Philippines is the ONLY country with which produces and processes this nut in commercial quantity.

The current status of the pili is equivalent to that of the macadamia some 30 years ago. It has huge potential to develop into a major industry. They are in demand not only in Hong Kong and Taiwan but also in Singapore, Korea and Austria.

Source: Source by Will Irwin


Mobile Oil Change Businesses Are Very Hard to Succeed In

Mobile Oil Change Businesses Are Very Hard to Succeed In

There have been many people who have come and gone in the mobile oil change business. It always looks easy from the surface and is relatively inexpensive to start with minimum investment compared to most other businesses. But most mobile oil change operators rarely make it past the first year. In fact most do not make it past the first several months. One has to wonder why such a good idea ultimately ends in failure. Lets take a closer look.

First the profit generated from oil changes is not enough to sustain a healthy business. After you calculate the cost of goods from the total bill there is rarely is more than twenty five dollars net profit made from your typical oil change. And that figure does not include the gas used driving to the actual location. You have to be doing a lot of oil changes per day for you to make a decent profit to support your business and your personal expenses. Most quick lubes make even less due to their substantially higher overhead yet make up for it in large volume. Most successful fixed locations are doing 60 oil changes on a bad day. A mobile oil change company, with most of the time one or perhaps two people working it, does not have that luxury. The most your typical mobile oil change van can do is ten oil changes per day and after that the operator is exhausted. And even if a person could consistently do ten oil changes per day he still has to generate those oil changes from somewhere. They do not magically appear. Do you have a plan how to do that? Most start out thinking corporate campuses will provide tons of business especially if its marketed by the companies there. In reality that rarely works as advertised and you will be lucky if you get 10 customers in one year from a huge corporate campus. The end conclusion is that the net per oil change is just too low to make a viable business from it without a massive amount of volume.

Second, many mobile oil change operators are not very good salesmen. They are usually very honest people and ones who are very passionate about what they do and you gotta love that but I have found that most owners of mobile oil changes are terrible at the sales end. They are usually the type who try to charge way less than the going market rate and think they can tell a few people about their “awesome service” and wait by the phone. That never works. You have to go out and get them. You have to do a copious amount of cold calling. You have to talk to a lot of fleet managers and sale yourself first and then your service. Most in the mobile oil change business do not fully understand this or never really apply themselves to this side of business. Its probably the most important part not just in the mobile oil change business but any business for that matter. I will go out on a limb and say that if you are a great salesmen you will do well running a mobile oil change business or franchise. If you know about cars but not sales then I recommend working for a new or used car dealer for 2-3 months and get the experience. It will be tough and gruesome but that is the quickest way to get good a pure hard core sales without a lot of the “fluff.” Then open your mobile oil change company.

Third, the weather cannot be understated in limiting what mobile oil change operators can do. There are few states that have decent weather throughout the year. Half the states get really cold several months out of the years and the other half get really hot throughout 3/4 of the year. Both are equally discouraging. A fixed location can turn on the air or turn on the heat. Their operators work in a controlled environment. You do not have that luxury. You may have several fleets planned for one day and it can be pouring down rain that day. Have you thought about changing oil in 0 degrees. Your hands will not be able to grip that oil filter or wretch its as hard as a rock or you cannot feel them. Or changing hot 150 degree motor oil in 100 degree humid weather on a vehicle where it’s oil filter is in the middle of a hot engine manifold and you have to burn yourself to get to it? Do you clean it off and skip it or burn yourself to get to it? That will happen.

Having mentioned these three major hurdles, and there are more, I will say that it is not impossible. I have made a success of it. But I wish that someone would have been straightforward with me before me and my partner spent over $80,000 getting into the mobile oil change business. We were sold on a lot of unreal hopes and dreams from Jet Set Life Technologies about great wealth using a flawed model involving oil extreme. They set us up with a nice van and their product is good but their whole system is flawed from the bottom to the top. We found a way to make it work but sadly 90% of the mobile oil change business operators do not. The success rate is very small. Understand whats really involved and if you think you can grind it out and not make any money for 2-3 years, go for it.

Source: Source by W Barras


Do You Know How To Deal With People Who Mock And Ridicule You?

Do You Know How To Deal With People Who Mock And Ridicule You?

FACT: The Entrepreneur Is Without “Honour” Among Those Who “Know” Him

One of the greatest realities you may have to face(there are exceptions, as is the case with everything in life), when you formally announce to the world that you have become an entrepreneur, is that you do NOT know many people you think you know, as well as you think you do.

Godfrey Heron([http://www.irieisleonline.com]) in his Entrepreneur’s Survival Checklist described this shocking experience quite accurately when he wrote that people you love – friends, relatives, your spouse – will openly doubt you and sometimes even “predict” your failure.

In their eyes, you are just the same person they have always known and grown up with. People close to us seem to find it easier to think of us in terms of our past failures and weakest moments – the growing up years, and all the mistakes we made while trying to discover ourselves. They often miss the tremendous changes that have taken place inside us following from those experiences, especially AFTER we left home and explored the outside world on our own.

“The reasonable man adapts himself to the world; the unreasonable man persists in trying to adapt the world to himself. Therefore, all progress depends on the unreasonable man.” — George Bernard Shaw

My personal experiences confirm this. People who know you always think if they cannot see in you the potential for success in what you say you want to do, then it has to mean you cannot possibly succeed in it. And they can be quite insistent in tying to make you realise this “fact” of theirs.

In the process of trying to get you to be “reasonable” and see the folly in trying to pursue what they consider the “impossible” goal you have set for yourself, some will resort to tactless attempts at humour, and in some cases, ridicule your ideas and efforts outright – especially when you begin to record failures(temporary defeats). Heron however assures that this does not mean they do not love you – it’s something that just happens. Again, I agree.

Regardless of whether or not they love you however, I am of the firm opionion(based on personal experiences and extensive reading) that the truth is that their actions do not produce positive benefits of love. Napoleon Hill wrote about the psychologically destructive effect this kind of behaviour has on the person on whom it is inflicted, concluding that it often results in many men and women giving up on themselves and subsequently going through life with serious inferiority complexes.

There Will Be Exceptions!

As is always the case in life, there will be exceptions to the general situation I have described above. You may be lucky to have been born into a family of entrepreneurs, who have developed a culture of passing down entrepreneurial know-how from generation to generation. In that case, starting out in business, may not sound/look, to them, as “crazy” as wanting to take up employment in a corporate organisation for instance. In fact, NOT doing so probably would!

1. Learn To Quickly Identify And Deal With Two Common Groups :

But back to the situation under consideration in this article, in which people who know you mock and ridicule you for daring to take action to see your plans through. These people will often appear in different “groups”, and it would help if you learn to quickly determine who belongs where, so as to be able to decide HOW to handle him/her.

A. Those who do it to your face. Some people like they were born cynical. They always know what can go wrong or will not work. As soon as they learn you want to do something new, they immediately come after you. People like this never feel happy until they have confronted you – gleefully – with their list of “Why it won’t work” ideas. But at least they confront you, and let you know what they think and where they stand. You are able to quickly develop ways and means of avoiding them, so they do not wear you down with negativity.

To paraphrase Cynthia Kersey (from her book “UNSTOPPABLE 45 Powerful Stories Of Perseverance and Triumph from People Just Like You” ), allowing negative thoughts into your mind, will produce the same effect on your dreams as injecting poison to your bloodstream would have on you. That’s why I like this group better than the next group I wish to describe.

Note: People in the above group may not always stop at talking. Sometimes, from observing your rate of progress,(especially when they think you might just prove them wrong, making them lose face in front of those they tried to impress by punching holes in your ideas), they could employ direct attacks on your person/projects to stop you from succeeding. It has happened before, and you would be wise to take necessary precautions – such as giving out as little information as possible about what you’re doing until absolutely necessary.(Funny that I should be the one giving this kind of advice, since I tend not to apply it myself, and have suffered nee

B. Those who do it behind your back. Some people live lives of envy and deception. And so they never tell you what they think of you/your ideas to your face. They would rather tell others. When talking to you(and those they think favour you) they speak from both sides of the mouth. When they are with you, they are all sympathetic to your cause and courteous to a fault. They make a habit of calling you ever so often to ask how you’re getting on, and you find yourself telling your spouse and others how wonderful they are.

On occasion they would even contribute materially to your cause(e.g. by helping to raising capital etc). In this latter scenario, the saying “Not everyone that puts dirt on your head is your enemy, and not everyone that helps you remove dirt from your head is your friend” should be kept in mind. People being described here would do this, to gain your trust, and get closer to you. While with others, they play safe by sitting “quietly” on the fence where it concerns you, in a way they hope you will not notice. They stay close to you so just in case you succeed they can claim to have been part of it.

But they ALWAYS leave themselves enough room to wash their hands off you, if – as most others expect – you end up falling flat on your face. Either way, they never have your interest at heart, and are often in it for what they can get out of their relationship with you to make themselves look good in front of others.

Then one day you accidentally over hear them leading a series of hilarious jokes in which you are the main “object of ridicule”. That’s when you realise that all the time they spend with you is aimed at learning what your latest failures are, so they can return to tell others what they learnt using the privileged access they have to you. And it would hurt so much(I’ve been there before!). You owe yourself a duty to quickly discern these kind of people and avoid them.

2. What You Can Do To Deal With People Who Mock/Ridicule You

You may find one or more of the following ideas useful dealing effectively with those who mock and ridicule you, without your having to break anyone’s bones :-).

A. Have a “Guiding Philosophy” to help you stay focussed on your goals, and also nurture your self-belief. Read my article titled “Practical Guiding Philosophies For Entrepreneurial Success” for a detailed discussion on this subject.

B. Stay FAR Away From Them: Burt Dubin challenges each person pursuing a valued goal to demand nothing less than “integrity” from everyone s/he associates with. Not to do so, he explained, would be a recipe for failure. His advice for dealing with those who fall short? Simply do away with such persons. Break the relationship. Cut off the links. Stay away subsequently – for the sake of your dreams.

Here’s a true story to illustrate. In a separate article titled “Why You May Want To Rejoice When Others Mock You!“, I narrated the true story of Robert Goddard, the scientist who pioneered research into rocket science, leading to the launch of the space age. In it I described how Goddard, as a result of repeated mockery and ridicule of his published theories about how rockets could be built to fly into space, chose (with the backing of a financier) to continue his work in a more private location, away from the prying eyes of nosy locals, colleagues, and most especially – journalists.

Goddard went on to record significant breathroughs, that proved his theories were correct. Decades later, he would get credit for his work(though posthumously), in addition to an “editorial apology” rendered by a major newspaper that had rubbished his ideas nearly five decades earlier!

John Johnson, the founder of Ebony Magazine reportedly fired any employee who said his goals could not be achieved. Bill Payne(in preparing for the Los Angeles Olympics) deliberately avoided contact with anyone who questioned the feasibility of projects he initiated. Most of the authors of the books from which these insights were gained, agree that associating with (or remaining accessible to) negative people can result in the slow but certain death of your dream.

C. Have Dignity In Your Difficulty/Adversity: Never let the difficulties or hardship you encounter defeat you psychologically. To ensure you achieve success, it is imperative that you hold on to your self-belief. No one is ever defeated until s/he has accepted defeat as a reality. This means even when a person has failed so many times, till s/he can no longer keep count, it would not be enough to make him/her feel like quitting.

Evidence of your self-belief would be your ability to hold your chin up, and walk with a straight back even when you have to meet/face those you know look down on you because of your current circumstances. Most people who allow their fears to keep them from venturing beyond their comfort zones to chase their dreams, will draw attention to your “suffering”(and conveniently overlook smaller successes you have already recorded) in a bid to justify themselves. Their resort to mockery and ridicule, can lead to the person on the receiving end of it developing an inferiority complex. You must NEVER let that happen to you!

Show that you have dignity in your adversity by speaking assertively/with confidence to ANYONE you meet, even when they laugh in your face – ESPECIALLY when they laugh in your face!! James Cook assured that a good sign that you are on the right track will often be when your ideas are doubted or scorned by those you share them with. You are unlikely to find people who think the way you do in the majority – at least not until you have proved yourself right.

D. Fight Back IF Necessary: In certain instances, some of these people will launch direct attacks on your person – particularly if they feel your rate of progress suggests you could succeed, and possibly make them lose face before those they have told you cannot succeed. For instance, they could deliberately begin to spread falsehood about you to others.

In my experience however, this would be a sign that you ARE doing well – hence their desperation to stop you. If that was not the case, if they were so sure that you were wrong, why would they bother to commit their effort and time to stopping you at this stage? If/when this does happen to you, weigh the options carefully, and if necessary do NOT hesitate to fight back – intelligently. An example of how you can fight back, may be to deliberately publicise their actions in a way that will make others criticise them openly(they seldom like that, and will often scurry into hiding and become silent!). Do a little creative thinking here, including exploring ways to inject what I like to call “wicked humour” 🙂 into your plan implementation. Some good ideas will come to you.

“Man who says it cannot be done, should not get in the way of man who wants to do it” – Chinese Proverb

E. Never Do Anything You Would Be Scared For Others To Discover. Use this self-check rule to decide. If you know what you are about to do is something you would be ashamed to tell ANYONE else about, then DO NOT do it. This is quite simple, yet we human beings can struggle with it sometimes. Maybe it’s because, as they say, “Stolen Water tastes sweeter”. That’s why people get caught in fraudulent deals or immoral acts(e.g. extra marital affairs) even though all their lives they’ve been told doing these things would be bad, and have seen/heard how many others destroyed themselves by failing to heed the many warnings!

Once you have a secret(s), your life changes forever. You will always worry about how to keep others from learning about it(them). Then one person does, and begins using it against you, and it can often get worse with time. A person who wants to ridicule you would gleefully reveal as many bad things s/he knows about you to others. What’s worse, you are unlikely to be able to really put up any decent resistance or defence. People who believe in you would be devastated. Those who consider you a role model would lose hope.

Please, do not have any dark secrets(or skeletons in your cupboards) – else you WILL become ripe for even more relentless attacks from people who want to mock and ridicule you. Then most of what is offered in this article will be completely useless to you.

“You will need to stand on an unshakeable pedestal of integrity to achieve authentic, lasting success in any area of endeavour” – Tayo K. Solagbade

3. Mockery, Ridicule And Rejection Sometimes Have Their Benefits – But…

I have read a number of accounts about the lives of some successful people who overcame great adversity and rejection to become successful in their chosen ventures. In a number of these cases, the persons concerned mentioned that the constant rejection, and mockery by others propelled them to work harder so as to prove wrong those who made fun of them. There is the story of an individual whose success came out of a drive to remove the stigma of having had acne as a kid.

One could argue that without the mockery and ridicule from onlookers, friends, relatives and associates, the entrepreneur may not have been driven hard enough to achieve his/her eventual success. Maybe this could have been true for some entrepreneurs, but overwhelming research evidence has shown very clearly that for the majority of human beings, the exact opposite will yield even better results.

An elaborate study of the literary accomplishment of some alumni of the University of Wisconsin, twenty years after they they had graduated provides proof that the assertion made in the above paragraph is true. Read Ted Engstrom’s account – in Chapter Twelve of Zig Ziglar’s book “Over The Top” – of the true story about two student groups who named themselves “Wranglers” and Stranglers” respectively.

Briefly, both were groups of young literary talents who regularly met to read/critique each other’s work. The Wranglers – were all women, and the Stranglers, men. But that was where the similarity ended.

The Wranglers reviewed and gave feedback/criticism to each other using positive, encouraging and gentle language (attributes of emotionally intelligent people) for every member alike. In contrast, meetings between the Stranglers were characterised by harsh criticisms, literarily tearing each other’s work apart, and giving little or no encouragement for those who failed to meet the exacting standards set.

Twenty years later, the study showed a distinct trend. None of the Stranglers had recorded ANY noteworthy literary achievement, while the Wranglers had more than five accomplished writers in their ranks – some had even won national recognition – like Majorie Kinnan Rawlings, author of “The Yearling”.

The morale of the above is that, to help each other achieve our full potentials, the BEST way is to work in an atmosphere of positive cooperation and NOT negative competition. We need to build one other up in ways that will help individuals overcome their inadequacies and consolidate their strengths. Beating each other down, and creating feelings of self-doubt and fear does more damage than good. In competitive sports, we all know that many times the losing individual, if s/he continues hearing cheers of encouragement from the fans in the stands, could draw inspiration from THAT to turn the tables on the opponents even when the latter appears to have victory within his/her grasp.

Lastly, in the regard, I say this. You can kill a fly with a hammer – or use a swatter. The same result would be achieved, but the damage from using the swatter(if any!) would be much, much less. In essence I am saying that NO matter how much good these practices have done in terms of “motivating” some people to succeed in the past, so as to “spite” those who made fun of them, I believe mockery and ridicule are bad for the mind! In pursuing your coveted goal, learn to quickly identify those who love to mock and ridicule others, and STAY away from them. To do otherwise could mean the certain death of your dreams.

4. A Few Words Of Advice For Those Who Mock/Ridicule Others

Anyone reading this article can easily identify areas where s/he may have been guilty of the habits described. I will offer this piece of advice to you. If you want to help any member of your family – or a friend – get ahead in life in any chosen endeavour, start TODAY to see their good sides, and help them overcome, or better manage their not-so-good sides.

When you tell your brother (after he tells you his dream) that he’s too short to play in the school’s senior team, you are not doing anything that helps him. But when you challenge him to believe that he can do it, and go out of your way to help him achieve it, then you will ultimately help him develop a stronger spirit that could cause him to achieve just that or more.

We need to strive always to exert positive influences on others. We must stop putting others down. We must avoid laughing at others when they tell us what they hope to achieve. For any person to consciously decide to set a challenging goal or target in life for him/herself is indeed noble. So many others go through life without any goals at all, and live lives of “total anonymity”.

We need to learn to keep our skepticism/criticism in check around people who have differing ideas of their purpose in life from us. Not every child/person will be as strongly driven as others who have succeeded in the past. That does not mean that the “ideas” s/he has will not be as good or even better than any this world has so far seen. Too many ideas have been killed before the “owner” had a chance to even explore them further, just because one narrow minded and tactless “realist know-it-all” chose to ‘”advise” the person. We need to create a more suitable environment for entrepreneurial abilities and creativity to flourish in our societies.

5. Know This: Mockery and ridicule CANNOT stop an idea that will work!

“A global, twenty-four hour news network will never work.” – Network executives response to Ted Turner’s plans for CNN

The above quote provides a perfect ending for this article. Network executives, who would have been regarded as “experts” with the necessary professional competence, to accurately assess the potential benefits of Ted Turners’ ideas failed to see any future for it. But Turner(thankfully) did, and today virtually everyone who watches TV knows CNN is a World Leader in news coverage.

If those “expert network executives” could have been THAT badly wrong, does it not follow that what PEOPLE say need not bother or deter you – EVEN IF they mock and ridicule your idea? The answer is obvious.

Source: Source by Tayo Solagbade


At Home Business Ideas For the Handicapped Or Disabled

At Home Business Ideas For the Handicapped Or Disabled

The best home based business ideas begin with knowing your niche. If you are one of the many handicapped people who want to contribute, remember, you have certain skills, life experience, interests and values that others may not have, so finding your niche is going to be much easier.

Here are the 10 best home based (handicapped accessible) business ideas you may want to consider:

1. Bed & Breakfast- Especially for others with a handicap. If you live in a large home and love visitors, this is a ready-made, handicapped accessible business to help the disabled get out there and travel. A great work at home business.

2. Pet Sitting is a small business option for those who love caring for animals on a temporary basis. I know so many people who would like to go away for a weekend but have no one to leave their pets with who will love them as much as they do.

3. Jewelry Designer – Did you see the Oprah show about 10-year-old Shiloh Peppin who wants to grow up to be a jewelry designer? Her handicap of fused legs will not stop her from the career of her dreams, nor should it stop you.

4. Gift Basket Service – The entrepreneur can design them at home to specific niches and mail them to buyers or make them available in local specialty stores.

5. Internet Store – If you are computer savvy, consider opening an internet based business that sells affiliate items. You receive a commission for every affiliate item you sell to others. See my website for more affiliate information.

6. Life Coaching – Who knows better than you what it’s like to survive and thrive with a handicap or challenge of any kind? So many people are waiting for your encouraging words.

7. Song Writer – For those with a love of music, why not write & sell your music for a living?

8. Recording Artist – If you have a beautiful voice, you can make a living from becoming a singer. Perhaps your niche is jingles – hey someone wrote & sang all those McDonalds jingles. Or maybe your niche is spiritual music, rock ‘n roll or weddings.

9. Screen Writer – Write what you know. Tell your story. Everyone’s already told you that your life is like a movie. Why not share your story with the rest of us?

10. Motivational Speaker – There is a great need for motivational speakers. You could speak at churches, community organizations, business meetings and even write and publish a book or EBook to motivate others.

If you were born challenged or experienced a life altering event and became handicapped or disabled later in life, and you want to work, you can and should.

Think seriously about starting a small business from home. These are just ten simple business ideas.

I know you can come up with more home based business ideas that are specific to your skills, values and interests. Here’s to your business success.

Source: Source by Kathi Calahan


How to Attract Venture Capital

How to Attract Venture Capital

Every year literally billions of dollars are put towards different projects by venture capital investors.

Have you ever wondered what makes some investment opportunities successful whilst others barely get off the ground?

Believe it or not is isn’t necessarily the business idea, produce or service.

Often the vital difference between companies that attract venture capital and those that don’t is preparation.

Here Are 9 Areas Your Business Plan Should Cover If You Want to Attract Venture Capital

1. Your Business Plan Itself. You would be amazed at how many business owners try to attract venture capital without having a business plan in place.

Ask yourself: If YOU were a potential investor, what effect would it have on you if the business owner seeking YOUR venture capital didn’t have a decent business plan in place?

NOTE: Make sure that your business plan has a professional presentation. You can get a complete corporate look and feel created for it at sites like elance.com or buy one ‘off the shelf’ at templatemonster.com

2. KPI’s (Key Performance Indicators For All Management and Staff. According to Harvard Business School a staggering 40% of business failure is due to poor hiring decisions. Investors like tio see a business that has its bases covered in this area.

Your business will function much better when each key department and player has specific job descriptions in place.

3. A Detailed Strategy For Lead Generation and Lead Conversion. You may well have an awesome product or service but what an potential investor wants to see is how you plan to market it.

4. Business Strategy. The stronger and more laid out your business strategy is the better your chances of attracting venture capital. This is one area where hiring the right business coach or consultant can be a great benefit.

5. Research. Venture capital investors are not interested in ‘We think so’ or ‘Our educated guess is…’ They want to see market research to back up your claims of a viable market.

6. Structure. I spoke with an accountant recently who told me he was facing a nightmare trying to get a company ready for investment that was a mash of about seven different trusts – each owning a different division of the core business. His exact words were that it was a ‘Structural nightmare from an investors perspective’ It always pays to get your business structured correctly.

7. The Offer Itself. So you want to attract venture capital… OK but what will the investor receive in return?

An equity share in your business? If so what percentage?

Are you looking for a passive investor or do you want someone who can provide any special skills?

8. Financial’s. Investors want to see up-to-date financial’s – profit/loss, balance sheet and cash flow statement. Note: This is where a business with financial control systems in place can gain a strong advantage over a competitor as they are working off recent financial and current MYOB files rather than figures that are 12 months old.

9. An Internet Marketing Plan. Being able to show a potential investor a detailed web marketing plan can go a long way towards attracting the venture capital you are seeking.

Some of the Points That Your Internet Marketing Plan Should Cover Are

1. Traffic Strategies. How you plan to get traffic to your website.

2. List Building. What will you do to build your online database?

3. Content? If you plan on creating an authority site (and you should) then you’ll need to give serious thought to content. Will your website feature Articles? Testimonials? Podcasts?

These eight points, when addressed can help give you a serious advantage in your quest to attract venture capital!

Source: Source by Paul Wetton


Entrepreneurial Approach to Resources

Entrepreneurial Approach to Resources

Howard Stevenson and his colleagues at Harvard Business School define entrepreneurship as "the process of creating or seizing an opportunity and pursuing it regardless of the resources currently controlled. " This approach, Stevenson maintains, has greatly contributed towards the success of entrepreneurs. He points out that entrepreneurs seek to use the minimum possible amount of all types of resources at every stage in their venture's growth. These resources include human resources, financial resources, assets and a business plan. Rather than own the resources entrepreneurs need, they seek to control them, according to Stevenson.

Studies indicate that entrepreneurs with such an approach towards business substantially reduce the risk in pursuing opportunities.

1. Capital: Since the amount of capital required will be smaller, it will mitigate risk by reducing the financial exposure and the dilution of the founder's equity.

2. Flexibility: Entrepreneurs are in a better position to commit and decommit quickly when they do not own a resource. The flexibility of business that earned can be very useful to a firm, since it enables them to respond faster and reach decisions quickly. In addition to this, the entrepreneurial approach to resources allows strategic experiences, which means that ideas can be tried and tested without committing to the ownership of all assets and resources in the business. For example, it is wise to raise capital primarily as the need arises, otherwise one may end up spending it too early on wrong decisions. Inflexibility also results from committing permanently to a certain technology, software or management system.

3. Low Sunk Cost: The cost of closing down a firm or a venture will also be lower if the ownership of resources is less. If the up-front capital commitment is huge, abandoning such a project will also be very costly.

4. Costs: Fixed costs will be lower, which will have a positive affect on breakeven. Of course in that case case variable cost may rise.

5. Reduced Risk: Apart from reducing risk in general, other risk events such as risk of obsolescence of resource are also lower. For example, biotechnology companies have used venture leasing as a way to supplement sources of equity financing.

One should not assume incorrectly that this approach means that a firm can not afford to buy resources. The fact is that not having ownership has its own advantages and options in the form of flexibility of business and reduced risk. However, at the same time these decisions are very complex, and considerations such as tax implications of leasing vs. buying and other existing laws and regulations have to be thought of thoroughly and carefully.

Source: Source by Shilpi Ganguly


The Global Economic Crisis’ Effects on Business

The Global Economic Crisis’ Effects on Business

The global recession prompted due to several causes is a ghastly piece of news for each and every business in every country throughout the world. The tendency adopted in this recession by companies in their pursuit to survive during the chaotic time would be to enter into reviewing the headcount, as well as freezing the budget along with numerous cost reducing measures.

Nonetheless, it is possible that the growth of the company will be stunted in case you continue with the practice or overreact to the whole situation. It is seen with recession hitting the economy many of the internationally based business were enforced to reorganize their operations. This was mainly done by ceasing the functioning of the facilities of production. Millions of working people were required to quit their jobs due to the ongoing crisis. The course of action adopted by the company should be to come in the forefront and re-invent the proceeding of your company and at the same time think of procedures for global recovery.

The crisis is faced by the business is of great magnitude. Businesses around the globe were hit so hard by the economic crisis that several businesses had to seek monetary assistance from the government in order to survive. Several industries were in jeopardy and the others were facing the threat of bankruptcy. Practically for many monetary institutions it was like floor has been swept off under their feet. And as a conclusion the power if acquiring things by the public became feeble. The consumers were once again were very conscious about the budget.

Almost all people were forced to make their decisions carefully when it came to buying something as everyone was clueless about when the recovery from recession will take place. The trends in the market place began to fluctuate along with the demand of various products. Almost every business was affected by this global economic crisis but the companies that were hard hit were the companies having large scale operation along with those who provide their services at high prices. The consumers are now turning to the businesses which render similar services at comparatively cheap prices.

Businesses that can survive this economic recession in a better way are basically small as well as medium scale industries. Nonetheless, it does not suggest that they are not hit by economic crisis. The difference primarily lies in the fact that small as well as medium scale enterprises have comparatively undersized operations and have the ability to maintain the operation with fewer revenues. Such business usually has streamline way of operation which minimizes the total effect of the global crisis for survival.

The time span required by the international economy to recover is long as the magnitude of the crisis is large. Nations will have to strive hard to restructure their economy. What is further in store for us is hazy and the lucid picture is still to emerge. However, it is hoped that businesses will retain their normal position once again.

Source: Source by K J Allen


Promotional Gift Ideas for Effective and Successful Business Promotion

Promotional Gift Ideas for Effective and Successful Business Promotion

The main purpose of every business is gaining more and more profits without spending a lot of money. But, for a successful business, effective sales and marketing strategies as well as perfect and well planned promotion or advertising is essential in a number of ways. And for this, a considerable amount of money is spend every year on advertising and promotion of products and services.

Promotional gift ideas are also a successful way of business promotion that without spending a good amount of money can lead your business to the way of success. In other words, presenting unique and business related gifts to existing customers, prospective clients, employees and business partners is considered as an effective marketing tool to promote your business and making people aware to your aim. When it comes to promotional gift ideas, then the marker places are flourished with an assortment of products and ideas to gift all those related to your business.

Right from coffee plunger to iPhone cases, leather CD cases, airline toilet bag, keyring and pen sets, vantage binoculars, traveller kit, candle sets, beautiful wallet, folding umbrella, cooler /warmer, digital clock, mugs, flasks, book set, to any thing else that can suit your business promotional gift ideas. Depending on your choice and ideas, you can select any kind of promotional product and also customise them according your requirements. In other words, these promotional and corporate gifts have enough space to imprint with your company name, logo, message and website address.

Apart from this, you can also select them in your preferred colour and design. Moreover, unique and innovative promotional gift ideas are also suggested by professionals who have gained so much experience in the field of promotional products and gift ideas. They can easily aware you with the unique gifts that can boost the popularity of your products, business or services. Apart from this, these professionals also offer you an option of get your selected items and products customised according to your choice and desire. These professional also offer their services online.

Source: Source by Rakesh Kr. Jha


A Good Failure and Sam Walton’s Perseverance

A Good Failure and Sam Walton’s Perseverance

Today it seems that everyone and his grandmother has a theory (and a blog) about how to become a successful entrepreneur. So how can you filter through all of this info? Why not trade in the theories for a dose of reality by examining the example of one entrepreneur who defied conventional wisdom?

Take one of the most successful entrepreneurs America has ever known: Sam Walton, founder of Walmart. He went from managing his first small variety store at age 26 to seeing his corporation become the largest in the United States. Forever changing the retail industry, the merchant extraordinaire saw and did things differently. In the wake of his success, he left a handful of important lessons for entrepreneurs everywhere.

Sam Walton’s Mistake

Walton’s rise to success was not devoid of obstacles. In fact, the merchant had his share of outright failures. Perhaps his lowest moment came in 1950. Let’s see what happened then.

Walton had purchased a Ben Franklin franchise store in Newport, Arkansas in 1946. By applying his own unique management techniques, Walton nearly tripled the store’s sales within a few short years. Walton’s magic drew attention. Amongst those who took notice was his landlord. When the store’s lease was up, the landlord refused to renew it!

Sam Walton wrote of the experience in his autobiography, Made in America:

… We hadn’t made any mistakes we couldn’t correct quickly, none so big that they threatened the business. Except, it turned out, for one little legal error we made right at the beginning. In all my excitement at becoming Sam Walton, merchant, I had neglected to include a clause in my lease which gave me an option to renew after the first five years.

He did offer to buy the franchise, fixtures, and inventory at a fair price; he wanted to give the store to his son.

Walton was forced to do the unthinkable: sell his precious store.

Sweet Failure

There is no way around it: Walton’s Newport failure was abysmal. While conventional wisdom says failure is a bad thing, Sam Walton saw things differently. Walton recognized failure was unavoidable. In the business start-up game, obstacles–even outright failures–are a necessary evil, and Walton knew he could not be deterred by them. In his autobiography, he explained how the Newport debacle provided him the opportunity to gain valuable knowledge: “The whole thing was probably a blessing. I had a chance for a brand-new start, and this time I knew what I was doing.”

Learning from Walton

Walton’s story gives struggling entrepreneurs several morsels of thought to chew on:

  • For entrepreneurs, failure is a given.
  • Entrepreneurs must never allow setbacks to deter them.
  • Obstacles are opportunities.

As you face the blizzard of information available to entrepreneurs, keep Walton’s far-from-conventional view of failure in mind. And try to remember, conventional wisdom is anything but the entrepreneur’s friend.

Source: Source by Aine Maull


The Benefits of Credit Checks For Small Businesses

The Benefits of Credit Checks For Small Businesses

You have to get paid for your services and products to stay afloat, but knowing which customers will be good payers and which ones will take you for a ride can be a tricky business. It may be worth while to learn how credit checks can help you.

Whether you are thinking about supplying a new customer or you are already selling them your products or services, getting credit information on them can cut down your risks of invoices going unpaid. A credit check is essential if you’re thinking of extending credit to a customer. If you can see past and present information on how firms pay their invoices you can make quicker decisions about doing business with them and put your mind at ease.

Simon Streat of Experian UK&I says: “Credit information plays a vital role in helping businesses to make smarter decisions when it comes to understanding the level of risk associated with potential new customers or suppliers.”

It won’t always be possible to get a credit check on a firm because the credit agencies have incomplete information and so don’t publish a report. Sometimes a credit check won’t be complete because suppliers haven’t reported a firm’s payment history to the credit agencies. That won’t necessarily mean that your potential customer will be a bad payer but it could be worth you talking to other customers or suppliers and doing your own check.

Don’t forget that, just as you want to check up on other firms, they may want to check up on you. Your credit report is an important reflection on your company – it is almost an extension of your brand and company image. How other businesses see your rating can have a direct bearing on whether they do business with you or not.

The better your rating, the easier it will be for you to get funding and investment. A good rating may allow you to negotiate lower interest rates with other companies. Make sure your credit history is accurate and up to date.

Monitor your own credit report regularly. Many agencies allow you to sign up to alerts when fraudulent activity on your accounts is suspected so you can react straight away.

Credit reports on other businesses and your own report are invaluable to your business. If you haven’t already, check your own report and start checking out other businesses you deal with, especially if you are giving them credit. You can find the main credit agencies online and their processes are easy to follow.

Source: Source by Amy Thomason