December 15, 2015 / como / 0 Comments
Family businesses have a different set of circumstances, then regular businesses, which they should be aware of.
This article will attempt to address some of the strengths and weaknesses of a family business, so that you can help to improve your family business, by addressing the weaknesses and optimizing your strengths.
First I will start off by addressing the 3 main weaknesses that come with owning a family business.
1) Less Concern over profits – Family businesses sometimes have a tendency to focus on things that don’t necessarily bring their company the most profits. They will often try to lower the price of their product, and raise their products quality, which will usually hurt the companies profits per sale.
Family businesses tend to have much lower profit margins that publicly owned companies. Studies have shown that the family businesses tend to have half the profit margins of publicly owned companies. This is partially do to the fact that public companies feel required to show growth, in earnings were as private businesses usually don’t feel as much of an obligation for increasing revenue.
2) Non-Financial Goals – Small business owners have the ability to pursue their own goals. These desires and goals may not always be in the companies best interest. Publicly owned companies on the other hand feel pressure from the share holders, and thus will be much less likely to do things that aren’t intended to help the company.
3) Nepotism – Family businesses sometimes feel an obligation to promote and hire family members, solely because of their relationship. The business owner(s) will often overlook people that are better suited for the job, in order to hire family members who may or may not be the best choices. This can wipe out a companies profits, and cause problems within the company.
Next, I will mention the strengths that family businesses have over public companies.
1) Greater Sacrifices – In family businesses, the members of the family are more likely to work extra hours, and get paid less, because they know that they are helping there company, and they are working to help their family. They will often not take dividends unless the company has a surplus cash flow.
2) Company Loyalty – There is less turnover in family businesses, specifically with management, this makes it much easier to keep employees for long periods of time. In non family businesses the managers of a company will often go to a competitors company, in order to get an increase in salary, or they may even set up their own company. If a family member does decide to quit the family business, it is very unlikely that they will go to work for a competitor.
3) Greater Employee Interest – Employees for family businesses are interested in improving the companies profits where as the employees of larger public companies, will often just work the 40-hour workweek, and then go home. Taking their salary with them. Family business employees on the other hand will try very hard to make sure that their company is successful, often putting in extra hours.
4) More Teamwork – Members of family businesses don’t have to try to figure out the motives of their fellow employees, they know that whatever the other employees want will usually be in their and the companies best interest. This makes communication, and teamwork much easier.
For any business it is essential that the company recognizes its weaknesses and deals with them, and that they also recognize their strengths, and try to utilize them for the biggest advantage. If you are the owner of a family business, you should figure out what your companies strengths and weakness are, and what you should do about them, to try to benefit the company the most.
December 12, 2015 / como / 0 Comments
An affiliate marketing business has no limits. A company can always get bigger and an affiliate marketer can always make more money. Even running a business from your home will not limit you in any way whatsoever.
It is not an easy task to start an affiliate marketing business. The industry may have an unlimited profit potential but that does not mean that you can buy a computer and instantly start earning cash. Learning is the first step to becoming a successful affiliate marketer and the learning process must not be overlooked.
Where do you start?
1. Start by choosing a profitable niche. There are countless profitable niches out there so make sure to choose something that you are comfortable with and would enjoy working with. Be careful not to choose something with too much competition. Every aspect of the internet already has enough competition as it is and you do not want to create unnecessary competition for yourself.
Choosing a niche can prove to be a very difficult task. Start with a big topic and continue to narrow it done until you have a specific niche that you have reason to believe is profitable.
Make sure that your niche is not too broad or too small. For example, electronics is far too broad of a niche. Computer would be a good niche and Dell or Apple computers may be a better one. Choosing a specific model of a Dell computer that is customized to your personal liking is far too small of a niche.
2. Do not limit yourself and your potential earnings by using websites companies provide for you. Create your own website! If you have no idea how to create a website, then pay a professional to do it for you.
The only time it is a good idea to use a website that a company provides for you is during the time in which your website is being created. This will give you more practice in affiliate marketing and will bring you a small amount of income while you wait for your website to be finished.
Many websites can help you create a website if you have no idea how to do it and do not have the money to pay a professional. You will be able to create a respectable website using methods that can be found on the internet but when you have enough money, hiring a professional could be the key factor that separates you from other similar companies.
Find a reputable hosting website to use so you can maximize the benefits these companies provide for their customers. Top hosting companies are competitively priced with all hosting companies but they will provide features for your website that other companies cannot. You also want to use a large hosting company because they have the resources to give your website the fastest loading web pages possible.
3. Start to create an email list from the beginning. Keep in contact with potential customers and offer them discounts every so often. Do not constantly bother them by sending them emails advertising your service. Creating a healthy business relationship with your customers is very important.
If done correctly, your email list will become a valuable asset to your company. Not only will it be worth thousands of dollars but it will provide you with the comfort of knowing you always have options.
4. Make sure to branch out and explore your opportunities. One website in one niche is just going to limit your business and if that niche fails, your entire company will fail. Once you have comfortably established one niche on one site, continue to establish more. This is why affiliate marketing businesses have no limits. They can go as far as someone is willing to take them.
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December 8, 2015 / como / 0 Comments
Your business location should be tailor-made to fit with your company budget, spacing requirements and ease of operation. For some business owners, leasing affords a sense of freedom and relieves the financial burden of a down payment, yet may be too restrictive for some kinds of operations. The decision to buy a piece of commercial property offers its own set of risks and rewards, and should be considered carefully before entering into a mortgage contract.
Leasing Commercial Space
1. Cost Effective
Leasing a commercial space will usually require a one to two month move-in deposit, making the rental space a cost efficient way to do business. New business owners may be strapped for cash, and by leasing, rather than purchasing, your storefront or office is cost effective to set up shop with minimal funding.
2. Flexibility
Leasing a commercial space gives the entrepreneur plenty of room to grow, downsize or change locations. Although once you sign a lease, you are locked into a fixed amount of time to make the lease payments, the terms may be only a matter of months to be released and start over in another location.
3. Freedom
Setting up shop without the burden of a mortgage to pay allows a sense of financial freedom. Albeit, a purchased piece of commercial property could be leased or sold to another, there could be months before the owner receives any income from the property. A hefty mortgage may also interfere with business profits and may demand downsizing of personnel.
4. Maintenance
A leased office or shop has a landlord to lean on, taking away tedious responsibilities with the plumbing, electricity and security. In a leasing situation, any repairs or legal liabilities are left in the hands of the building management team.
5. Subletting
In some situations, you may sublet your leased office space to another. However, this must be cleared in writing from the management office, and careful attention given to their rules and regulations for renting out the space.
Buying Commercial Space
1. Secured Location
Buying a piece of commercial property adds assurance that the space is secured and cannot be given to someone else. In a leasing situation, when the lease expires, the renewal process may not have the same initial terms, thus proving unfavorable to renew. However, when you purchase, your prime location is secured.
2. Equity
As with a residential piece of property, a commercial owner may take out cash against the mortgage. In an emergency financial crisis, having a mortgage to borrow from lends a sense of security and provision of funds. Most commercial purchases will require 20 to 25 percent down on the purchase price, giving instant equity to the business owner.
3. Remodeling
When you have bought a property, it is your to do with as you wish. Remolding, expansion and reconfiguration are yours for the taking. The ownership allows the business structure to be molded around the enterprise for a perfect fit and usage of space.
4. Tax Deductions
The interest on a commercial loan is tax deductible, with allowances for deducting any depreciation.
5. Lease Your Excess Space
If you own the property, you may lease your excess space without any restrictions from a third party over your head.