Blogging is a fairly new social media platform that is fast becoming a popular form of marketing for many businesses. As a professional blogger myself, I believe that every business should participate in blogging. Just like every business should be following what people are saying about them via social networks and social media, every business should be blogging as well.

Many business owners believe that having a company blog or participating in social networking is a waste of time and provides no return on investment. Tell that to Dell, the computer company that attributed $3 million in sales due to Twitter.

So, why should your company have a blog? Here are a couple reasons:

You have more of a chance of being discovered in a search engine like Google. Unlike regular websites, blogs are on the search engines’ radars because blogs are updated more often. Search engines love fresh, relevant content.

Blogs enable your company to interact with your customers, plus you can build a community of loyal customers who appreciate your services and what you have to say. By providing value via tips, news or articles on topics related to your business, you establish a relationship with your customers. They will remember you the next time they need your product or service.

A good example of a business that provides value via their blog is this San Diego Cosmetic Dentist…

Dr. Timothy Collins and Dr. David Landau are dentists who own a practice called Complete Dental Health located in San Diego, California. Besides owning a regular static website that contains a host of information about their business, they also own a blog that offers dental health tips and advice, plus news about the dentistry field.

Let’s say that someone in San Diego was searching for a dentist, but this web-savvy person wanted to find a dentist with a blog. He/she does a Google blogsearch for “San Diego dentist”. Guess what blog shows up in the top results? That’s right – the Complete Dental Health’s blog shows up near the top of the list. So the potential customer reads the Complete Dental Health blog and likes the information. This potential customer then decides to call Complete Dental Health to set up an appointment.

Although this is a very simplistic example of what happens when you blog for business, maybe it will banish any of those thoughts that blogging is just a “trend” and isn’t worth exploring as a way to attract new customers.

Starting a home business is not tedious. In fact, there are many advantages in starting a home based business. You can enjoy the fun of working in a home atmosphere and can work at your convenient schedule. But running an own business requires lot of dedication and effort. You must know how to manage time for work and family. However, your hard work and effort would be rewarded well.

Before starting work at home business, consider the following:

1. Whether you would have the freedom to choose when and where to work?

2. Whether the home business would allow you continue your current job and work at home?

3. Would the business require publicity or gimmicks?

4. Would the home business require heavy investment?

5. Are there any risks in starting a home business?

6. Do you have complete training and support to improve the home business?

7. Do you have acquaintance with any successful home business owner who can help as a mentor to you?

If your answer is positive to most of the above questions, you can start work at home business. Another important consideration in starting a home business is to do what you are really passionate about. This is because of the fact that you can put greater effort without any difficulty because you really love it.

Starting a child day care center, candle making business, decorative gift baskets, wall paintings, fashion jewelery, photography, party rentals, catering business, office cleaning business and some other home business is really inexpensive and straight forward. However these businesses may be time consuming and require lot of effort. But once your business is up and running, you can get better rewards for your efforts.

If you have a pc at home with an internet connection, your home business opportunities are vast. You can start work at home internet business if you have adequate knowledge and excellent communication skill. You can start your own online dating site which can provide more profits from every member that joins you site.

However you would need some investment. The dating website can earn you handsome profits when members subscribe for premium membership and when existing members renew their membership. The main benefit of this business is that you need not have any previous experience for this.

You can start work at home business if you want to enjoy the fun and freedom of working at home. However take the time to get an organized plan for your business. This helps you speed up and improve your home business.

You can allot a room in your home for business purposes. Then arrange the essential things like a chair, computer, cabinet, phone etc. A comfortable chair is very important if you have to work for hours at the computer. Also consider filing the essential paper work in a cabinet. Keep it organized!

If you need to spend more time on your home business, then schedule your household routines accordingly. Time management is very important to start a home based business. You need to have the ability to prioritize your work so that you can achieve success.

Most of us would like to spend more time at home with family and earn extra money, a home party business may be the answer. There are many benefits in choosing a home party business. One benefit is low start up cost. Start up cost can range from $10 and up, pretty cheap when starting your own business. It is also a fast option, your business starts almost right away, most times you just pre-book your parties, buy your kit and your in business.. Another great benefit is the brochures / catalogs and sometimes even websites are done for you already. And don’t forget tax deductions.

A home party business involves direct selling. Direct selling is selling directly to the consumer by independent salespeople. Depending on the company you work with, selling can be done through parties, individual sale or both. Even though you are working with a company, you are an independent consultant, you are in business for yourself. You are your own boss, you set your hours and you can work part time or full time.

The potential to make money can be great. It is up to you. The more you sell, the more you make. You make money through commission on the products you sell. With some companies you get paid right away, when you sell a product. This happens when you buy the product at a discount and sell the product for full price, you keep the difference. The other way to get paid is after you place an order, you will receive a check. A lot of companies offer team building bonus. As an independent consultant, you can recruit others to join your team. As your recruits sell products, you can earn commission on the sales.

A venture financing can be structured using one or more of several types of securities ranging from straight debt-to-debt with equity features (e.g., convertible debt or debt with warrants) to common stock. Each type of security offers certain advantages and disadvantages to both the entrepreneur and the investor. The characteristcs of your situation and current market forces will impact the type and mix of security package that is right for you.

Types of Securities Senior debt: Which is usually for long-term financing for high-risk companies or special situations such as bridge financing. Bridge financing is designed as temporary financing in cases where the company has obtained a commitment for financing at a future date, which funds will be used to retire the debt. It is used in construction, acquisitions, anticipation of a public sale of securities, etc. Subordinated debt: Which is subordinated to financing from other financial institutions, and is usually convertible to common stock or accompanied by warrants to purchase common stock. Senior lenders consider subordinated debt as equity. This increases the amount of funds that can be borrowed, thus allowing greater leverage. Preferred stock: Which is usually convertible to common stock. The venture’s cash flow is helped because no fixed loan or interest payments need to be made unless the preferred stock is redeemable or dividends are mandatory. Preferred stock improves the company’s debt to equity ratio. The disadvantage is that dividends are not tax deductible. Common stock: Which is usually the most expensive in terms of the percent of ownership given to the venture capitalist. However, sale of common stock may be the only feasible alternative if cash flow and collateral limits the amount of debt the company can carry.

While each of these securities has unique characteristics, they can be grouped into two categories: debt or equity. In structuring a venture financing, the primary question is whether the financing should be in the form of debt or equity.

Disadvantages of Debt to a Company

From a company’s viewpoint, there are two potential disadvantages to debt.

An excessive amount of debt can strain a company’s credit standing, thereby reducing its flexibility in meeting future long-term financing requirements on a favorable basis. It can also negatively affect a company’s ability to obtain short-term credit. Of course, the form of debt the venture financing takes makes a difference. For example, subordinated debt will have less impact on borrowing capacity than senior debt. The venture capitalist has the option of calling his loan if the company is in default of the loan agreement. This remedy, which is not available to him under other financing agreements, puts him in a better position to influence the company’s affairs when it is in default. Advantages of Debt to a Venture Capitalist

From the venture capitalist’s viewpoint, there are three principal advantages to debt.

There is a greater likelihood that the venture capitalist will get his principal back and, at least, a small return. Many of the companies in the average venture capitalist’s portfolio are referred to as “the living dead.” Needless to say, their performance has turned out to be disappointing. In some cases, these companies are able to repay principal with interest but have limited appeal to potential acquirers or the public. As a result, a venture capitalist with an investment in such a company’s common stock may be unable to recover his investment within a reasonable period, if at all. As previously discussed, under certain circumstances the venture capitalist is in a better position to influence the company’s affairs. The venture capitalist has a senior claim. However, it should be emphasized that the meaningfulness of a senior claim depends on the marketability of a company’s assets and the amount of equity it has to cushion its creditors’ position. For example, in the case of a start-Lip situation with little or no equity, a senior claim means little or nothing. Percentage Ownership Needed

While the difference may not be great, depending on the particular circumstances of the company, a debt position involves less risk than an equity position for the venture capitalist. Accordingly, a company should not have to relinquish as much ownership when a financing is in the form of debt. However, this advantage must be weighed against the disadvantages of debt.

No matter how the venture financing is structured, it must be priced so that it is attractive to the venture capitalist. There is no clear-cut answer as to how much ownership a company will have to relinquish to make a financing attractive. Broadly speaking, the greater the potential return perceived by the venture capitalist, the less ownership he will demand. In other words, if a company has a patented product which a venture capitalist thinks is revolutionary and highly marketable, he will undoubtedly settle for less ownership than he would in the case of 4 company with a relatively less attractive product. Thus, his ultimate position will be a business judgment based on his potential return.

Before you enter negotiations with the venture capitalist, you should determine what your company is worth and how much of your company you want to sell. The following procedure can be used to get a rough idea of how much ownership you will have to give up to make the financing attractive.

Estimate the risk associated with the venture financing. If the investment is very risky, the venture capitalist may be looking for a return as high as 15 times his investment over five years. Conversely, if a relatively low degree of risk is involved, the venture capitalist may be satisfied with doubling or tripling his investment over five years. Make a reasonable estimate of the price/earnings ratio applicable to comparable publicly held companies. The market value of the company can then be projected by multiplying forecasted annual earnings by the estimated price/earnings ratio for comparable companies. Divide the estimate of the total dollar return the venture capitalist wants by the projected market value of the company. This yields the percentage ownership the venture capitalist will need, as oil the future date, to realize his desired return. It is important to note that any equity financing required during the interim period must be considered in making these calculations.

Case Study

Suppose XYZ Company, Inc., a start-up, needs $500,000. The company’s product appears to have excellent potential. However, because the product is new and unproven, an investment in the company would be extremely risky. Accordingly, it is reasonable to estimate that a venture capitalist would want a potential return of at least ten times his total investment in five years. Management estimates that the company should be able to “go public” at 20 times earnings in five years. Projected after-tax earnings for the fifth year is $1,250,000. Additional long-term financing of $500,000 will be needed at the beginning of the third year.

Scenario I

In the calculations below it is assumed that the venture capitalist who provides the initial financing ($500,000) also provides the subsequent financing ($500,000), and that he wants a return equal to ten times both. However, it should be noted that if the company made satisfactory progress during the first two years, it would be reasonable to assume that the venture capitalist would be satisfied with a lower return on the subsequent financing since it would involve less risk.

Estimate of Total Dollar Return Required Total Investment $ 1,000,000 Estimate of Return Required X 10

$10,000,000

V. Projected Market Value in Fifth Year VI. VII. Projected Earnings $1,250,000 VIII. Estimate of P/E Ratio x 20

$25,000,000

Percentage Ow
nership Needed in Fifth Year Estimate of Total Dollar Return quired $10,000,000 Projected Market Value of Company in Fifth Year 25,000,000

40% Scenario II

In this set of calculations it is assumed that a second investor provides the subsequent financing ($500,000). The calculations show that the venture capitalist who provides the initial financing ($500,000) would need 20% ownership as of the fifth Year to realize the return he wants. However, since the ownership to be given up for the subsequent financing will reduce his ownership position, he will want more than 20% ownership initially. For example, if it is assumed that 15% ownership will have to be given up for the subsequent financing, the venture capitalist who provides the initial financing would need 23% ownership initially to end up with 20% ownership in the fifth year.

Assume the same facts as Case I, except a second investor provides the subsequent financing for 15% ownership.

Estimate of Total Dollar Return Required Total Investment $ 500,000 Estimate of Return Required X 10

$5,000,000

Projected Market Value in Fifth Year Projected Earnings $1,250,000 Estimate of P/E Ratio x 20

$25,000,000

Percentage Ownership Needed in Fifth Year Estimate of Total Dollar Return required $5,000,000 Projected Market Value of Company in Fifth Year 25,000,000

20%

Thus, it appears that the investment ($500,000) may be attractive to an interested venture capitalist if the principals of XYZ Company, Inc. are willing to give up approximately 23% ownership.

Conclusion

It must be emphasized that the above procedure is highly subjective. And, you should remember that what really matters is how the venture capitalist views the relative attractiveness of a company. Typically, venture capitalists are satisfied with a minority interest. Although a venture capitalist may demand a majority interest, generally they are not interested in operating control. Some of them like to tie the amount of ownership they ultimately get to the performance of the company. For example, a venture capitalist who wants a majority interest initially may give the principals the opportunity to earn part of it back. Such an arrangement can be used to compromise on pricing when there is a significant disagreement between the principals and the venture capitalist.

To entrepreneurs unfamiliar with venture capital, it may appear that the venture capitalist is seeking an extraordinary high return on his investment. However, it is important to understand that, even under the best of circumstances, only a minority of the companies in which the venture capitalists invests will be successful. He is well aware of this, and must make a sufficient return of his successful investments to come out with an acceptable return overall.

all listening attentively about lenders on the radio, television, newspapers, and the Internet of promises to be “small business friendly”, “small business oriented”, wanting to be your “personal small business advisor” and a panoply of packages taking care of all your business needs. What small businesses really need is money, not personal hand caring services. So is there anyone out there really making small business loans? Yes. If you know where to look you can find one.

You can generally categorize banks into: 1) 10% that are actually making small business loans now and are serious about doing so, 2) 70% who will talk to you directly and indicate they are not making small business loans at this time because of the economy, and 3) 20% that slap you on the back, invite you in, and readily take your application. It is the latter group that gives us the most heartburn. It is not unusual after the initial review of your application papers for a bank represented to signal you have a good chance. Overjoyed, you begin to make plans, including executing contracts and receiving quotes for inventory, raw materials, or merchandise. Two months later, after the fourth loan committee review, you get a call that they have decided not to make the loan. The reason has little if anything to do with credit. It is typically something that was never been mentioned before and after reflection, it seems like an excuse not to make the loan in the first place.

Loan brokers such as myself are victims of the same misleading behavior. I cannot tell you how many banks have looked me in the eye and said: “Sure, we are making lots of loans. For unsecured loans of $75,000 to $150,000, we just need a credit score above 680, in business for over a year and a half, and decent financials. Real estate security is not required. We would love to entertain your applications.” Right.

What they really do is pour over the applications and pick 1 out of 100 that has the following fantasy credentials: a platinum credit score that Bill Gates would be proud of and which could support a small country, gushing positive cash flow, little competition, executed contracts stacked high on your desk, then a booming market niche. In other words, someone who doesn’t need the loan in the first place. You know the old adage: banks only give money to people who don’t need it.

It is simply psychology 101. Banks are filled up with loan officers and they have to show they are busy. If their boss walks into their office and sees nothing on their desk, they might be laid off. They have to show they are busy earning their salaries, which means receiving applications and going through the review process. It’s gotten so bad that the other day we had a client whose grandfather helped found the bank, whose father was best friends with the president, and who had received two successful loans before. Even he was turned down. Nor do they tell you the large SBA commercial loan department job layoffs of employees throughout the nation.

To prevent being too caught in this trap, look your banker in the eye and ask these questions:

1) “Tell me honestly. I don’t want to waste your time or mine. I know the credit crunch is quite depressing and there is really no secondary market. Are you actually entertaining small business loans at this time or should I wait.”

2) “How many small business loans have you personally made in the last 30 days?”

3) “What are the loan terms of the last three loans you made, including interest rate and monthly payments, for the amount of loan I am seeking?”

4) “How long will it take before I get a definitive answer?”

5) “Can you briefly describe to me the process I have to go through to get the final approval? Will you be the one making the final decision? What other people superior to you or committees will make that decision?”

But do not despair. There actually are real live prime lenders out there making small business loans. They just need to know where to look. In the next article I will discuss if such loans are available to startups.

There are many possibilities when searching for businesses for sale. If you are looking to own a business, you can either buy one that needs to be fixed up or one that is ready to go. When trying to find businesses for sale, it is very important to do your research. Know what you are buying. After all, it is a huge decision. One error can make the difference between a positive experience or a devastating loss.

First, it helps to choose businesses for sale that fit in with your wants and interests. After all, it is difficult to run a business that you know little about. Find something that leads you to learn more and get involved. It also helps if you understand every aspect of the business. Of course, once you have found businesses for sale that meet your needs, you can certainly hire new employees to help you.

There are many places to begin when looking for businesses for sale. However, the easiest way to see and compare many different businesses is to search online. On the shop front, you can search for specific businesses for sale until you find the one that meets your needs. Don’t rush into a sale. It may take a while to find the right fit for you.

You may be looking at businesses for sale because you are looking to buy them, fix them up, then resell them. If that is the case, then you will probably want to find businesses for sale that are inexpensive and probably failing. You’ll have to be prepared to lose money. Don’t spend money that you can’t afford to lose. It is also important to make sure you know exactly what went wrong in a business. Some things are fixable and some are not. Don’t get on board with something that is impossible to fix.

If you are looking to sell a business, it is also easier to sell online. You can reach a wider audience and improve your sale potential. On the shop front, it is very easy to put up your business. With specified categories, it is easier to search and find exactly what you are looking for. The fees are reasonable and can help you find the best sale possible.

When selling your business, don’t feel pressured to take the first offer if it isn’t what you need. Make sure you know the worth of your business. If you think it is worth more than it is, you may spend a lot of time trying to get more than is possible. If you don’t know how much it is worth, you can also end up selling your business for a lot less money than you could get for it. Make sure you put your business in the appropriate category, as this can maximize your sale potential. If you do not categorize correctly, you’ll miss potential buyers. Selling or buying a business is never easy, but with the shop front, you can make it as hassle-free as possible. You can make sure you buy or sell for the price you are looking for.

Selling or buying a business is not an easy task. You have to collect potential information all about that particular business. When you plan to sell a business, you will have to think from the customer’s point of view that what all I want to know about this business. Then you should be prepared to provide all sorts of information in a clear and professional manner. The kind of information will be the same for every business but it will depend upon the nature of the business but certain basic knowledge is always required. This information will include revenue, expenditures, key contracts, competitive advantages etc. If you want to buy a business, then it becomes more important to know even a minute detail about the business.

Many businesses are sold and bought on a daily basis. If you look for a business for in Australia, you can find the relevant information online. You can find a good database of business & franchise for sale in Australia on internet. Not only brief information but you can get the business profile, contact details and recent photographs of business location for each business advertised for sale in Australia. Most of these businesses are motels, coffee shops, , restaurants, wholesale businesses, import-export businesses gift-ware shops, manufacturing retail businesses, franchises for sale in Australia and many more.

If you are buying a franchise business, you should have answers of certain questions. These questions can be asked to franchisees and to yourself too.

- The business that is for sale in Australia, is it a good business or a product? If later you feel that this was not a good business to start with, you will be in trouble.

- Whether you have the financial strength to expand the business and reinvest in it. If you don’t have the financial means to grow the business, it will not be benefitted for you in the long run. Every business can not give you the profit as soon as you start it, you might have to invest initially. You may need to spend money to make money.

- Before buying a franchise business, analyze” do you carry those skills this franchise requires to operate the business on a daily basis?” If you do not possess these qualities, it will not be wise to buy a business for sale in Australia. Will buying this franchise business help you in achieving your goals? One should have a clear sense of what he/she does expect from this business, personally and financially both. Suppose you are looking for a new business for extra earning and you have no liabilities in terms of family. You plan to buy a business for sale in Australia, the risk that you take from it will be much lower than someone who has a lot of responsibilities and has no other source of income.

In buying a franchise business, you can get the most reliable information from the existing franchisees. You can know their relationship with the franchisor and what he expects from them. A thorough analysis will help you reach your business goals.

Maintaining a profitable home business is a big challenge. The idea of earning an income from the comforts of your own home is an attractive one. However many overlook the necessary discipline needed to run a profit generating home business.

The comfort and familiar settings of home make this type of business attractive but also presents obstacles. If you want to achieve success while working from home you’ll need to establish certain parameters. A distinction between leisure time activities and work related responsibilities will need to be identified.

Here are 5 tips you’ll need to apply in order for your home based business to achieve success:

Tip #1 – Establish Work Hours

When working from home you’ll immediately want to establish the time you’ll need to devote to your business and then adhere to this schedule. As easy as this may seem initially you’ll need to aware of the temptation of getting a late start and then finishing early. Remember that nothing gets done unless YOU do it. When you start to cheat on your work hours here you are really just cheating yourself by reducing your income due to a loss in productivity.

Time wasting activities you’ll want to ‘actively’ avoid during work hours are:

a) Friends visiting

b) Personal phone calls

c) Neighbors

d) Personal errands

e) Family disturbances unless they’re emergencies

Tip #2 – Clearly Define Your Work Space

Depending upon the type of work you’re doing you’ll need to set up an office or shop completely dedicated to your work. It would be best to isolate or partition the area from the normal living areas of the home. This will better enable you to maintain a ‘working frame of mind’ while also minimizing any instances of disruptions or disturbances.

A dedicated work space will also help you stay better organized.

Tip #3 – Avoid Any Type of Home Entertainment

Like most homes I’m sure yours is equipped with TV’s, stereos, and other such entertainment devices. Well when you’re working battle the temptation to take periodic breaks to view the tube or listening to some ‘relaxing’ music. These will just siphon your time away from work either increasing your workload later or perhaps keeping you from finishing a task at all.

Tip #4 – No Surfing

Many home based businesses entail the use of a computer. High technology like this enables a home business to be more efficient and productive. On the downside however with the ability to surf the internet right there at your fingertips lays the potential for lost time and productivity. Unless the need arises to do some work related research your computer should only be used to increase and not decrease your productiveness during your normal working hours.

Tip #5 – Your Email Can Wait

Again like we’ve mentioned about surfing (above) your only need to access this during work hours should be limited to work related issues. In fact it is recommended you establish a separate work related email address and develop the habit of checking your email just twice a day to better manage your time.

As you can see managing a profitable home business does require discipline on your part. The temptation of the surrounding comforts of home are the main attraction of any home based business. Although we need to recognize these attractions can easily turn into non-productive distractions if we are not careful. With the proper restraint however there is no reason the riches and rewards of a successful home based business can’t be yours!

Now the small business owner can get a line of credit with no hassle. Even in today’s economic climate with banks faltering and the stock market declining, smart banks and credit companies are still looking to invest in small business opportunities. Oftentimes, a line of credit can mean the difference between success and failure for a small business.

Lines of credit can be used to purchase inventory, pay utility bills, manage payroll, advertise, or to fund expansion projects. A line of credit can also allow a small business to weather downward trends in sales without having to make painful budget cuts and unpopular layoffs. A line of credit also allows a small business to avoid high interest loans from traditional banking institutions. Lines of credit are also much simpler to manage than typical loans or financial advancements, and securing a line of credit for your small business has never been easier.

While traditional banking institutions offer lines of credit for your small business, there are also other options. Conventional credit card companies are great resources a line of credit. They usually offer introductory low interest rates, flexible payment options, and are usually easier to secure than small business loans from a bank. The Internet is great tool to utilize when searching for an available line of credit for your small business. There are several web sites that offer searchable databases of credit offers. You can limit the search by any number of criteria, making each search specialized to your particular needs. These details can include credit limits, payment options, interest rates, and credit company options. Also, by applying online, many credit card companies offer different and better credit line terms for small businesses. These better terms can mean the difference between success and failure in a competitive business environment.

While credit card companies are a great and easy way to secure lines of credit for your small business, a bank can also be a good place to look for a line of credit. The terms may not be as good initially as a credit line issued from a credit card company (especially from an online application for credit), but banks a generally more trust worthy and the credit line terms are more predictable. When applying online for credit lines, there can be hidden terms or stipulations that are hidden in pages upon pages of small print. It is often difficult to realize all the terms and limitations of an online credit line. Interest rates are a good example. While introductory rates can seem excellent, once those introductory rates expire, the interest rate can skyrocket. This increased interest rate can cost your small business thousands of hard earned dollars, thus straining your business’ bottom line. Credit lines issued from banking institutions are more straightforward, and while their introductory interest rates are not generally as desirable as online credit institutions, the increased rate is generally much lower. When trying to secure a line of credit for your small business all aspects of the credit line are important. While credit lines can help your small business purchase inventory, pay employees, and weather downturns in sales, the wrong terms for your credit line can cost your small business thousands of dollars.