General Business and Finance Blog » Business

Keys To Selling Your Business In A Recession

Wed, 08 Sep 2010 18:52:06 +0000

The conventional wisdom is that selling your business when in a recession is very difficult. The uncertainty associated with recessions make it very difficult for buyers to accurately value what a business is going to be worth. The worst thing for any type of business transaction or even the markets in general, is uncertainty. However, if buyers can come to terms what they do know, as well as feel comfortable with what they don’t know, there is still a good chance for success. Its only when buyers don’t know what they don’t know that things really become difficult. The key to selling your business when no one really knows where the economy is going to be headed is making sure that as many variables as possible are removed. It is really no different from what should be considered normal practice for anyone involved in the purchase or sale of a business, but buyers are significantly more cautious overall and they should be.

That being said, deals are still being done and businesses are still being bought and sold. The key is to recognize that the business climate has changed and that if someone really wants to sell their business, it’s definitely a buyers’ market. Flexibility and compromise are the words of the day, and the following 3 areas will likely involve the most discussion.

Price. This one is quite obvious. There are more sellers than there are buyers. With the baby boomers all getting close to retiring age, and potential business buyers all being a bit skittish, let alone that there are just less of them, the result is purely an increase in supply and a decrease in demand. A business that was valued at 4 times cash flow 3 years ago is probably closer to 3 times discretionary cash flow. That works out to a 25% decrease in the value of the business.

Vendor Take Back. In normal times, business sellers can expect to leave about 10% of the purchase on the table, to be paid over the next couple of years. Sellers should expect vendor financing closer to 20%, or maybe even 25%. There are obviously lots of factors that drive that number, but buyers are going to push hard for an increased VTB. The key reason being that it’s a reasonable bet that most businesses have just come through their best couple of years, and the next couple of years are going to be significantly worse. So a buyer makes their decision on the business that they’ll own, not the business that the seller owned. So, if things are going to be worse next year, they’ll push hard for increased vendor financing.

Security. Sellers can expect buyers to tie the vendor take back to the future performance of the company. That may not be particularly fair, but a common point that is often raised by sellers is that the business is very stable and basically runs itself. The counter by buyers then, is that they’ll tie the vendor take back to the performance of the company. In other words, the seller only receives the VTB if projections are met. If they aren’t met, the VTB is waived.

All three of these points are negotiating tools that buyers, and business sellers, can use to make sure that they are comfortable with the transaction. The key for sellers is marketing and ensuring that they cast their net wide to ensure that they attract the best possible deal for themselves. Sellers should consider posting the business at www.businesstradeboard.com.

Scott Larson has been involved in mergers and acquisitions for over 6 years. He runs a business listing site called Business Trade Board, located at www.businesstradeboard.com

Importance of Small Business Financing

Wed, 08 Sep 2010 13:10:12 +0000

The biggest reason that small businesses fail is a lack of adequate cash flow. When the economy is good and sales are high, this isn’t usually a problem. However, the economy is not always strong, and sales are not always high. During these down times, the cash flow can slow, and cash reserves begin to dwindle. Or you may be enjoying the good economic times, and decide that it is time to expand your business. When this happens, you need to make sure you have a plan for obtaining small business financing.
For well established businesses with a good credit record, finding small business financing is not usually a problem. If this describes your business, you probably already have a relationship with a bank. You should be able to talk to the loan manager at your bank, and it is just a matter of structuring the financing in a way that is acceptable. If you do not already have a relationship with a local bank, it is an easy thing to do. Most banks are more than willing to work with successful businesses.
However, not all businesses are well established, and not all businesses have a solid credit history. For those businesses, obtaining small business financing can be a bit more problematic. There are, however, lenders that are willing to work with business that have struggled financially. They specialize in lending money to businesses that might not qualify for financing with a bank.
For businesses that are already operating, many lenders only require the past several months credit card transaction records as proof that the business is generating income. The lender then “buys” a portion of your credit card sales as repayment for the loan. When you take out a loan, the agreed upon portion of credit card sales will go to the lender until the loan is repaid in its entirety.
Because there are so many lenders in the small business financing industry, it is important that you do your homework. Make sure you completely understand the terms of the loan before you sign any loan agreements. Read the agreement thoroughly, and if there are any parts you do not understand, ask for clarification. It is a good practice to have your attorney or CPA examine any documents. They are trained to read legal and financial documents, and they may be able to spot any problems before the agreement goes into effect. While it is important to keep your cash flow healthy, signing a bad loan agreement can hamper your business growth for years to come.
Taking out small business financing is a normal part of business. Do not look at the need to take out a loan as a sign of bad business or failure. It is a necessary part of doing business. Sometimes it is the difference between keeping your business running during a slow time, or closing your doors before you even have a good chance to succeed. When given that choice, a loan seems like a very good idea.

How to Find Your Small Business (or Idea)

Wed, 08 Sep 2010 01:13:53 +0000

If you have been thinking about starting an online business but just have not come up with the business idea that knocks your socks off then it is perhaps time that you consider brainstorming. Brainstorming your small business idea may very well set you on the path to financial freedom.Webster’s Dictionary defines brainstorming as a problem-solving technique that sparks a spontaneous generation of ideas. Brainstorming works through the power of association by offering ideas around a particular subject or problem.Brainstorming has these basic components:A. Generating as many solutions to a problem as possible B. Listing every idea presented without comment or evaluation C. Grouping and evaluating ideas to reach consensus D. Prioritizing ideas.Brainstorming your small business idea can help you choose a topic, develop an approach to a topic, or deepen your understanding of the topic’s potential. This is why brainstorming can be extremely beneficial. Brainstorming your small business idea helps you think outside-of-the-box! Remember that the purpose of brainstorming your small business idea is to generate ideas so avoid other idea-squashers. Do not evaluate or pass judgment on the ideas as you think of them. Brainstorming your small business idea can be an extremely effective way to generate lots of ideas on a specific issue and then determine which idea – or ideas – is the best solution. This can be particularly useful in providing creative solutions to problems that have defied traditional problem-solving methods as well as in such applications as new product development. However, brainstorming your small business idea requires a comfortable, non threatening environment to work effectively.Brainstorming your small business idea is very well suited to internet marketing because it can be very manageable to serve a niche, something that would have been more difficult prior to the internet revolution which began in the late 1990s. And small business creates 75% of all new jobs and anchors our communities. Small Business’ are the largest employers in America. When brainstorming your small business idea creativity is enhanced, because individuals are encouraged to bring up all ideas – even those that might appear outrageous. The Site Build-it (SBI) manger brainstorming tool is a very powerful tool for keyword research for your site concept. Problem solving in small business requires brainstorming of options and alternatives and problems are defined better as questions arise. Thinking challenges in the form of puzzles and other fun activities can get your creative juices flowing before brainstorming. And creativity can be enhanced if individuals are encouraged to bring up all ideas – even those that might appear outrageous. When brainstorming your small business idea listen to other ideas, and try to piggy back on them to other ideas. List at least 25 practical uses with explanations if necessary. List or describe (in a sentence or two each) at least ten consequences. List the attributes of the problem, object, or situation as you would in a standard attribute analysis. List at least six attributes and at least six alternatives for each. Listing each condition to be met or the part to be covered will assure that none are overlooked. List the concept(s) you chose to use, and describe how you’ll use them. Asking questions are one of the best tools for unlocking creativity. Questions are the best way to get brainstorming started. Brainstorming is a skill that comes with practice and is not a cult or a ritual so use it to your advantage and begin brainstorming your small business idea. And keep in mind that brainstorming isn’t coming up with an end finished idea, its about creating the ideas that spark the ideas. Brainstorming is creating a list of whatever comes to mind.Brainstorming your small business idea is most effective when you come up with many possible solutions to overcome one specific obstacle instead of thinking up many unrelated ideas. Brainstorming your small business idea is particularly effective when others provide different views, ideas, and solutions around one problem.

Business Financing Through Home Equity – Smart Move or Too Risky?

Tue, 07 Sep 2010 19:02:24 +0000

Are you willing to risk your home to finance your business? One way to infuse your business or startup business concern with cash is by tapping the equity in your home. Is it a smart move? The answer depends on a number of different factors.Financing a Business

One of the biggest stumbling blocks for a new business owner is acquiring financing for the early costs of establishing the business. Unless you have an established banking relationship or collateral to put down, few banks or lenders are willing to make a loan without a personal guarantee of some sort. It makes sense for a homeowner to turn to their largest asset as collateral. A home equity loan or line of credit is often the easiest way for a new business owner to acquire a sum of money that can be used to fund their business startup.The Case against Home Equity Business Financing

Financial experts almost unanimously warn against using your home as financing for a business. It’s a risky move. If your business fails, you could be putting your home in danger. Since most entrepreneurs begin a business with the intent of supporting their families, does it really make sense to put your family’s biggest asset at risk?

On the other hand, your home is the biggest asset. Using it as collateral can be a very cost-effective way of financing a new beginning. Home equity loans often carry the lowest rates of interest of any other type of loan. Add to that the fact that many banks will require a personal guarantee for a business loan to a startup, and the effect is about the same. You’ll still be personally liable for paying the money back if your business fails.

The trick is to borrow smart. Before you decide to put your house on line to finance your business, do a bit of soul-searching and a lot of research. Here are some factors to consider before you decide to put your home up as collateral for a business loan.

1. Are you counting on the success of the business to pay back the loan?

Keep in mind that most business concerns do not turn a profit within the first year. Can you make payments on a home equity loan for a year without tapping business profits? If you can, then a home equity loan may be a good option for you. Even if the business fails, as long as you know you can make the payments on your loan, your home is safe.

2. Is a home equity line of credit an option?

A home equity loan makes sense if you need a chunk of money to purchase equipment and pay starting expenses. A home equity line of credit has a number of advantages over a closed-end loan under some conditions. While you may be paying slightly higher interest rates on a line of credit, one of the biggest advantages is the revolving feature. In other words, when you pay back money on a line of credit, it becomes available for you to borrow against again. A second advantage is that you’ll only be paying interest on what you actually owe. A home equity line of credit for business purposes is a good way to have cash in reserves for emergencies without having to pay interest on it until you use it.

3. Do you have an exit plan?

One of the biggest failings for most business owners is that they fail to plan for failure as well as success. We all hope that our businesses will be wildly successful, and it’s easy to make big plans based on that dream. But there’s a real danger in not planning what you’ll do in case of failure. At what point will you decide that enough is enough, and what steps will you take to get out with the least possible damage? Deciding when to call it quits can save you from disaster if the business doesn’t fly as high as you hoped.

4. Should you tell your lender that your loan is for business?

While home equity loans can generally be used for any purpose, including funding a new business, some loan experts recommend against volunteering the information to your lender. They may feel obligated to direct you to the commercial lending arm of their institution if that’s bank policy. If, on the other hand, you are asked directly, it’s best to be honest. Lying about your purpose for the loan could be construed as misrepresentation and open you to charges of fraud. Misrepresenting yourself could also negate the loan and call it due immediately.

The long and short of it is this: your home is probably your best source of funding for your business in the early stages. If you do decide to use a home equity loan to finance your business, be sure to think it through and safeguard your home before signing on the dotted line.

Are These Self-Limiting Beliefs Preventing You From Starting A Small Business?

Tue, 07 Sep 2010 06:37:40 +0000

Here are three common disabling beliefs which prevent people from starting small businesses because of the fear of failure.

Many think they are not well enough educated, come from a poor background which holds them back, or think they need loads of money to get started in a new small business venture.

Let me show you why I think these are not true.

Lack Of Education

Many believe you need a good education to make a lot of money or to start up successful small businesses.

Far from being held back by poor education, it may actually be an advantage. Just as blind people often have much better hearing, people who have less education often compensate in other ways.

They may communicate more effectively to a wider population, they often exhibit greater dexterity and ability working with a wide range of materials and have great ability to judge risk and reward.

A good education can even be shown to be a disadvantage to entrepreneurship.

It is normal for well-educated people to find it easy to get a job. This means they are making money for someone else, in exchange for a smaller proportion of money back. (If employers didn’t make more money from their workers than they paid them, then they couldn’t continue to employ them.)

Having had a good job for a while, to give it up on a small business enterprise usually means risking losing that job, and the money that comes in with it, which may be needed to start the new venture. This brings us to another myth-

Lack Of Capital

Many believe you can’t start a new moneymaking venture without a lot of money to get started. I don’t believe this!

The old saying “If you ain’t got nothing you ain’t got nothing to lose” really is true.

If you have a lot to lose by risking a new small business venture, you may be so cautious of failure that you fail to succeed.

So many seriously rich people started from flat broke or in many cases from serious debt, you have to conclude that a lot of capital is not necessary.

J. K Rowling is one of the richest individuals in the UK. While she was writing her first novel she had barely the price of a good meal to sustain her. She even had to type the book out twice (with a second hand typewriter!) to send a copy to the publishers because she couldn’t afford to have a photocopy done.

Living In A Poor Environment

Many believe you need to come from a rich background to become rich. Baloney!

People have worked their way up from living in tin shacks to owning hotel chains. It is just as easy to sell goods to people in the ghetto as it is in the richest street in town.

Indeed it is often much more profitable to sell cheaper goods than more expensive goods.

Here’s a few examples-

· Burger vans have far higher profit margins than many top restaurants.
· Skateboards often have far higher profit margins than cars.
· A bicycle sales and repair shop would find far more customers in a poor environment than in a rich one.
· Trades and services (plumbers, electricians, decorators) will be more likely to succeed with the low costs of the poor environment and traveling to a better environment to provide those services.

Poor Education, No Capitol AND a Poor Environment!

A few examples of people who succeeded with their small businesses may help to prove my point.

With all three – poor education, no capitol and a poor environment, one guy in Africa has found great success. He lived on what most people reading this would consider to be a rubbish tip, but with very little education and no capitol at all, makes a great living for himself. With no more than a stout pair of ordinary scissors, he turns discarded empty drink cans into really stylish flowers. Selling them to locals and tourists, he makes a fine living.

Now I am not suggesting for a moment that this is a workable small business idea for you, but it does prove my point. If he can be so successful, by his terms, in Africa, then really it can’t be so hard for you can it?

Another example, which you are equally unlikely to repeat, is that of many ‘pop stars’. I won’t go into detail here because I prefer not to get sued, but if you look carefully at the early lives of, for example, Madonna, Eminem, Bob Dylan etc. you would find they have bettered themselves considerably with very few external resources.

Lastly, how about Nancy Engel. Starting from flat broke with very little education, she bought $30 worth of assorted spices. Mixing them together, she labeled them Italian Spice Mix and took them to a local flea market the next day. By the end of the day, she’d sold all her stock and pocketed $200. By repeating this simple formula, her small business is a great success.

What if you are fortunate enough to live in an outstanding environment, have received an excellent education and have access to seemingly limitless funds – would that ensure success? History is littered with examples of people in just this situation, who started business ventures which failed completely leaving them financially broke.

I believe you are just as likely to succeed, or fail, regardless of your environment, education or funds.

Small Businesses Idea, Plus Action

So enough of what you don’t need to succeed – what about what you do need? Almost every example shows that after an idea which the entrepreneur considered worth pursuing, action is required. It sounds obvious, but without action, all you have is an idea, and by themselves, ideas rarely make you successful!

By action I don’t mean simply telling everyone you know about your idea, I mean actually doing something to make your idea happen.

So now you see why I believe that it is quite normal for people to succeed without access to good education, good environment or good funding.

I believe you can change your life massively with no more than a few good small business ideas and a little action.

Small Business Finance: Highly Admired for Business Purposes

Mon, 06 Sep 2010 22:42:36 +0000

If you are planning to set a fresh business with the help of an external finance and al low cost, then considering the small business finance can provide you all that you are looking for. Small Business Finance, a well developed loan plan introduced after much speculation, is designed keeping in mind the necessities and disparities faced by the business entrepreneurs to provide financial aid. Business persons can approach loans with the lay out of the expenses that might come while setting a new business.

Making the application and approval process simple and straightforward, the process is formatted in a simple way. Entrepreneurs can access the finance in both secured and unsecured forms. Secured and unsecured will let the applicants to get the loan approved with or without pledging collateral respectively. Every category of persons, good, bad or even non status credit history can approve the loans under similar terms and conditions.

The small business finance let the applicants to purchase commercial estates, sites, latest machineries, equipments and making renovation. What is more flexible of small business finance is that applicants can make investments by buying shares and stocks of other advanced companies. Small business not only aids to establish a new business rather gives an opportunity to enlarge the current business horizons.

There are some precautions which when followed can make the approval process of small business finance more fast. Certain things should be taken care of, like presenting the lay out with rational details and spotting a rational interest rates, for making the deal more appropriate. The amount of small business loans depends entirely upon the equity of collateral placed and the investments furnished in the presentation.

Small business finance in the present scenario can be availed by sitting at home or office. This is made possible only when you fill the online application form with details accurately. So, you can watch your dreams shaping into reality with the support of small business finance.

Small Business Idea Sure To Have Big Impact On Student’s Budgets

Mon, 06 Sep 2010 10:03:37 +0000

With many students looking for auxiliary income because of financial stress on family budgets, businesses are now looking to those students for help with advertising. Businesses know that students rule the social networks. They speak wordpress, facebook and twitter like they are a second language. Tapping into that type of resource has always been a strong objective of marketing firms and advertising agencys. But now one small home based business has jumped on board offering weekly cash payouts of 65% just for placing links, ads and chatting in those social networks. pagebuzz.com started a program allowing anyone to post ads and earn $75.00 for each customer anyone can refer to their “do it yourself website hosting”. The internet is the primary focus of the company so social networks, forums and blogs provide customer rich enviorments for advertising. By allowing the users of those websites to place ads for the pagebuzz.com website hosting service a new revenue stream is born. Any student, young adult or even grown ups with internet access can become their very own advertising company and earn as much as Wall Street executives. The allure of the pagebuzz.com program is that the payouts are every Friday, so there is no waiting for checks. It pays even faster than most jobs who hold at least 1 weeks pay. Get a sale on Wednesday and get paid on Friday. Getting paid has always been a problem that has plagued revenue sharing programs with most paying monthly with a 1 month delay. Meaning you earn money today and get paid in 2 months. Students have long tasted the revenue from blogs using programs like google adsense and affiliate programs. But with payouts of $0.02 on click thrus and 3-5% of $5.00 sales yeilding $0.15 per sale the profits are less than attractive to anyone without millions of visitors. Coupled with the long wait to be paid and frequent deductions most fail to produce a solid income for anyone. Now with companies willing to shift their marketing budgets to the backs of independents placing online ads, the skys have opened with opportunity. Anyone can make $1000.00 a week or more with just a few hours work. Not like all the scams on TV, but for real. CEO Bob Smith of pagebuzz.com claims that the initial cost of acquiring new clients is far less using this method despite the larger payouts. “If we hire an advertising company we would pay $75,000 before we ever run a single ad. If we pay that money directly to students and home based workers we get 1000 new customers guaranteed”. The great part about linking back to pagebuzz.com from a forum or a blog is that the ad or link will remain online indefinitly so posting one link could produce 10, 20, 30 or more sales in the next year or two. Making that few minutes of work it took to post the link potentially worth upwards of $2000.00. With those numbers it has not been hard to attract people to post links back to our website said Smith. While pagebuzz.com is a small home based company itself, the opportunity for earnings of independent ad placers is in the millions of dollars a year. Certainly enough to keep many struggling students floating in extra cash. Judging by the success of the pagebuzz.com program there will be many merchants lined up to follow suit. But like every good idea and legitimate offer, so shall the scammers come and try to take your money. If you decide to participate in one of these programs, keep one thing in mind. You are making money for them. If they charge you anything, it is a scam! Before you invest time promoting a company, do research, make sure they pay and their product is as good as you plan to say it is. While you can make a million dollars you can just as easily waste time or even get clipped for cash or false advertising. Deal only with reputable companies.

Are You In Business or Enslaved to Self-Employment?

Mon, 06 Sep 2010 08:40:33 +0000

Oddly, the ultimate goal of self-employment might be to work yourself out of a job.

Many people start businesses simply to create jobs for themselves. Self-employment offers many benefits, not the least of which is the opportunity to develop basic business trade skills, while getting paid for work you love to do. Self-employment is everything some owners want, while others use it as a stepping stone to build sustainable, stand-alone businesses.

What’s the difference between self-employment and being in business? Here are some signs that you are self-employed.

1. You are the business. When customers think of your business they think of you, and they usually count on you to be one delivering the goods.

2. You might be tied to a roller coaster, feast and famine schedule. You work long hours while contracts last and you’re unemployed when they end. You are at the beck and call of your customers and dare not turn down any jobs because you never know when they might stop coming in.

3. Your paycheque is tied to the amount of hours you personally spend serving customers. When you stop, the revenue stops; when you get tired the business stops.

4. You spend all or most of your time working in the business, with no energy left over to work on the business.

5. You likely don’t have financial systems in place, probably do your own bookkeeping, and treat your accountant to the occasional shoebox bulging with receipts. You fly by the seat of your pants for the entire year before finding out if you’ve earned a profit.

Here are a few indicators that a business owner is moving beyond self-employment and on to building a business.

1. The business is separate from the owner. Customers don’t necessarily expect the owner to be on the front line. The business takes on more of a team approach, involving people who share the owner’s vision, mission and values.

2. The team will necessitate human resource responsibilities, systems and processes. Jobs have written descriptions and are staffed by the right people, instead of the other way around. The owner’s job shifts from the front line to leading the team.

3. Although the owner will probably still work a considerable number of hours, his paycheque is not limited to the number of billable hours worked.

4. While the owner might still choose to work in the business, more time is invested in designing systems for efficiency and growth.

5. The business has proper accounting and financial controls, with regular monthly financial statements and methods for tracking the flow of all monies in and out of the business.

The transition from self-employment to business doesn’t happen by accident. It is brought about when the owner consciously decides to invest in building the systems that form the backbone of the business. Once the infrastructure is in place the owner will be positioned to reduce her work hours, or possibly even sell the business and move on to other pursuits.

Transforming Your Business Is A Click Away

Sun, 05 Sep 2010 12:29:20 +0000

Advertise by developing rich content and great graphics. Experiment with developing audio and video streams with updated information about your company. The applications of all the new avenues of web media are astounding. Flash and animation has been around for a while. It is appearing on many more websites in newer and bolder ways.
However, the use of static images still emerges as one of the most used elements on a website. This is changing as the new internet advertising is saying it with commercials. Business strategy is always to reach the maximum potential customers with the most effective information. Everything can be more effectively showed digitally and in real time by using video. To give your company a web identity you have to have a great way to show it off. Today’s web viewers are coming to expect a more complex media presentation.
To become a strong brand you have to connect to an audience that expects the latest and best from the web. It is a new breed of viewers that you have to captivate with rich content. Even if you are on a marketing budget this is still the most cost effective way to engage the consumer. The landscaping of advertising has changed. Magazine, newspapers, and business trade shows are loosing their edge. The public now wants the show brought to them in an entertaining fashion. Time constrains and the cost of travel has seen many trade show booths drawing much fewer potential buyers. Static glossy magazine ads cost big bucks and are not getting the bang for the dollar.
Above all the messages on the internet will pull in people who are traveling the super highway of information if they can find it quickly. That is why you have to make sure that anyone looking for your product does not have to do a knock-out search to find what they need. Obviously, it is critical to your business that someone has the directions to your location. I recall that while doing a knock-out search for a company with a product I needed I stumbled upon a similar rendition of what I needed. Guess who got the sale?
The lesson is that when you transform your business with web technology you hire out the whole project. Basically what a business needs is a professional company that can create and market your identity. Success starts with going for quality advertising with quality assurance and a strategy for optimizing your site in a highly intuitive and effective way.
The greatest investment that a business can make is to work with a team that can fuel innovation and creativity that blast you off the launch pad in the shortest time. With all the new gismos that are available for websites this is not a go it alone project anymore.
The incentive of increased sales is why you need people who know how to raise awareness of your business
Going digital online is exciting and leaves the audience with a better picture of your company. The return is better than anything that you can expect from traditional media. Whether it is brand extension or mapping out a bigger empire by adding additional concepts you have the attention of an audience that has become draw to your presence on the web by the appeal of your website. Experience the rewards of enhancing the web uses experience when they tap into your company’s vision and quickly become captivated by your business model.

Recession Proof Business Opportunities, Top 3 Small Business Ideas

Sun, 05 Sep 2010 07:09:25 +0000

Have you noticed how much you hear the “R” word lately? There certainly isn’t a shortage of news reports on negative financial news out there. As the threat of an U.S. recession continues to grow, you need to ask yourself a question:
“Would you struggle through an economical recession or would you thrive in it?”
There are several products and services that do well in recessionary times. Even as people cut back on expenses and frivolous items, there will still be some products and services that will do well in recessionary times. In fact some will actually thrive in a recession.
- Online Businesses
Online businesses are simple and inexpensive to start up and can be very profitable if done right. It is estimated that U.S. online spending will increase 17% in 2008. This double digit growth is expected to continue for many years as consumers become increasingly comfortable purchasing online and enjoy the conveniences and cost savings of not driving to the mall. Almost every aspect of starting an online business can be outsourced and with almost no overhead, profits tend to be much higher then a high risk retail store.
- Credit and Debt Management
As more American’s lose their jobs to downsizing and lose their homes to foreclosures, credit ratings and debt levels are directly affected. Marketing these services is ideal but doing the actual credit repair or debt collections/negotiations can be rather difficult. By finding the right business model within these industries you can have a product in high demand.
- Healthcare
Despite a lagging economy, people will continue to need healthcare. As the baby boomer generation continues to age, so does the need for services in this industry. By finding a profitable niche in this industry you are assured to see increased demand over the next 30 years.
There are many opportunities for entrepreneurs during a recession and we have just touched upon what to look for. The secret to your success is “finding the right business model” to explore.
You could just as easily start a new business in any of the 3 above categories and be dragged down by a business that requires all of your time, doesn’t have the profit margins needed or has high start up costs & high risks.
Don’t make the mistake of starting a flawed business. Play particular attention to the type of business model you get into when looking at the above 3 industries.